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All in the family: Hausman defends contracts to relatives
by Ahmad Safi
Wednesday, October 1, 2008

Dan Hausman’s signature has approved several county contracts since he was elected Buchanan County Eastern District commissioner in 2005. And with some 300 cousins, nephews and nieces in the St. Joseph area, some relatives have benefited from those contracts.

It is a fact that Mr. Hausman acknowledges: “I just have a large family.”

Mr. Hausman said criticism of his actions as commissioner are natural, given his engineering/business background.

“Almost everyone the county has dealt with, I’ve dealt with privately,” Mr. Hausman said. “I know I’ve stepped on some toes, but I’ve saved a lot of money for the county and we’re spending more efficiently.”

Questions surrounding some of Mr. Hausman’s decisions come as the Republican seeks re-election in November. Mr. Hausman calls the criticism politically motivated, but his opponent says he should have recused himself to be fair to contractors.

“I have a lot of family in this county, too,” said Rosie Gach Haertling, a Democrat challenging Mr. Hausman. “I wouldn’t want it shown that it was nepotism if any of my relatives received a county contract.”

County spending has come under scrutiny this year amid a tight budget, including the depletion of the road-and-bridge fund in August and the elimination of four highway positions.

The projects in question involve ties to Mr. Hausman’s son-in-law, three brothers, and four cousins.

TUSCANY VILLAGE

Scott Hausman, the commissioner’s brother, is an investment partner in Tuscany Village, a yet-undeveloped retail project near the Shoppes at North Village.

Three years ago, the city of St. Joseph approved about $21 million in incentives for the project in tax-increment financing. Mr. Hausman said his only involvement with Tuscany was county appointments to an advisory board for the TIF. “It’s city-issued, city-controlled,” he said.

However, his involvement goes further. Mr. Hausman argued in favor of the TIF with at least three councilmembers.

Former City Councilman Jerry Russell alleges Mr. Hausman tried to influence him to pass the TIF. He said Mr. Hausman literally pulled an agreement off the table to pave a section of Cook Road after learning Mr. Russell was planning to vote against the Tuscany TIF.

“I saw a conflict of interest for an elected official. Anything you have family and relatives do — you better stay arm’s length from,” Mr. Russell said. Mr. Hausman agrees the meeting took place. Tuscany, among other issues, was discussed, he said.

His opposition to the Cook Road pavement was based on location and traffic — not to lobby for the TIF, Mr. Hausman said.

“If there was lobbying going on neither of us must have been really good because he didn’t get the road and I didn’t get his vote,” he said.

Ms. Haertling said if the Buchanan County Ag Expo Center is constructed — a project Mr. Hausman has promoted since becoming commissioner — it would also benefit Tuscany Village since they would be geographically close. “That would be a perfect opportunity to sell his brother’s land,” she said.

MULTIPURPOSE BUILDING

In early 2006, county commissioners sought a company to build the Multipurpose Building in Downtown St. Joseph.

The county received three design proposals: Free Country Design and Construction for $722,000; Al J. Mueller Construction for $655,700, and Lehr Construction for $533,324.

Though it wasn’t the low bidder, all three commissioners agreed on Mueller Construction for the project. Mr. Hausman’s cousin, Larry Hausman, sits on its board of directors.

Kim Hartman, a 22-year veteran on the county’s purchasing desk, said, in her memory, this was the county’s first contract to Mueller. She said Larry Hausman was not part of the design proposal or subsequent meetings with the county.

Mr. Hausman said he chose not to recuse himself from Mueller discussions because his understanding of state ethics rules dictated conflict of interest guidelines apply only to immediate family — like a spouse and children.

“As far as dealing with cousins there are no restrictions,” Mr. Hausman said.

According to the Missouri Ethics Commission, an elected official violates the nepotism clause under state statute if they hire a cousin. If they violate the clause by awarding a government contract isn’t clearly defined.

And although Mueller bidded $122,376 higher than Lehr, Mr. Hausman said commissioners decided on Mueller because they submitted the most definitive architectural design. A News-Press review confirmed Mueller’s more comprehensive design proposal.

Mr. Hausman said Lehr was also given lower preference because of budget overruns when it constructed the Buchanan County Juvenile Detention Center in 2006.

During construction, Mueller had its own bid overrun. Commissioners approved an extra $12,143 in August. Even with the overrun, Mueller ended up completing the project at $2,000 below its original bid price.

COUNTY SHELVES

Mr. Hausman has two brothers and two cousins who own Hausman Metal Works and Roofing, a family-owned company that received a $2,300 county order in June for shelves for the new multipurpose building. Since the project cost was below $4,000, Mr. Turner said commissioners were not required to bid the project.

As presiding commissioner, Mr. Turner decided on his own to use Hausman Metal. “That was my decision. I did that,” he said.

Mr. Hausman said he only became aware the company was used after the work was completed.

MASSIVE TECHNOLOGY

UPGRADE

Despite a $1.6 million upgrade, complaints about computer problems in the county fester. Most have to do with “hiccups” to the upgrade, but occasionally get attributed to Mr. Hausman’s supposed family ties.

For years, the county’s technology infrastructure had been an issue. So Mr. Hausman, a self-confessed computer illiterate, called his son-in-law, a network engineer manager in Kansas City. “I said ‘Brian we’ve got this problem. Will you make a recommendation?’” he said.

The phone call led county commissioners to Olathe, Kan.-based Network Integration Services. His son-in-law has never had employment ties with the company, besides being familiar with their reputation, Mr. Hausman said.

The county bid the technology upgrade, and NIS won. Within two years, the upgrade was completed.

“There has been some frustration,” said Linda Easley, the county’s information technology director. “But we feel pretty comfortable where we’re at now.”

Ahmad Safi can be reached at ahmadsafi@npgco.com.

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Posted by JAFO on October 1, 2008 at 3:08 a.m. (Suggest removal)

well, well, well mr hausman, looks like you finally did it. you've managed to defame a long time and faithful public servant, while getting yourself and your back-stabbing friends rich, using county money. hey newspress, any rumor of a kickback? betcha dont have to dig too deep to find that one. mr hausman, i went to school with some of your clan, and guess what, they don't like you. i don't blame them. i don't like you either. rosie, you're on deck ma'am. go get'em, but be sure to get some tall wading boots before you get sworn in, in january.

Posted by MichaelH on October 1, 2008 at 6:51 a.m. (Suggest removal)

While I normally wouldn't like this story or others like it for face value, I happen to know some Hausmans.

Guess what? The Hausmans have been prominent business owners in this city for much longer than Mr. Hausman has sat on the commission. Turns out the family is in to so many things that it is inevitable, and logical they would eventually be performing work for the county or city.

So what, because this guy has a big family we have to punish everyone else in it? Absurd.

Why are they being targeted because they are successful? They are hardly the only name with old money in town. I don't see anything in the above article that isn't above-board. If he's got resources, why shouldn't we utilize them. Fairly. Which is apparently what is going on and people are whining.

Posted by gr8fan on October 1, 2008 at 8:34 a.m. (Suggest removal)

MichaelH,
I usually agree with you, but not on this one. There is a problem, especially within the story. I don't have hundreds of thousands to kick around, but evidently the city does. To give someone a project that is off the other bid by $122,000 is absurd using the excuse that the higher one had a better "architectural design". Did anyone think of going to the other company and ask for their architectural design? That would be just good business for that amount of money. I agree with JAFO in that the Hausmans are pushy bullies that use their money to buy out or run out the competition. Now they have someone on the inside to take it a step further. The story with councilman Russell sounds like this Hausman has learned well from the family practices.

Posted by gr8fan on October 1, 2008 at 8:40 a.m. (Suggest removal)

By the way, it doesn't always have to be nepotism to get smoked in this city. Try going to the "Planning and Zoning Commission" against a contractor in St. Joseph. Considering all of the bigger contractors deal with everyone on that committee (as most of the committee is comprised of construction related people), it is totally impossible to get a fair shake. Does anyone in St Joe have the sense to put impartial people on these groups? I guess not. The "good ole boy" system is alive and thriving in Joetown.

Posted by TFurguson on October 1, 2008 at 9:56 a.m. (Suggest removal)

Im just surprised it took this long to run a story on this.

Posted by wr49tm on October 1, 2008 at 10:14 a.m. (Suggest removal)

I'm not surprised it took them this long at all. I am surprised they didn't wait until the week of the election to run the story. The dirt always seems to surface close to election times.

Posted by HenryAllison on October 1, 2008 at 11:56 a.m. (Suggest removal)

I guess I’m stupid or blind, but I don’t see a smoking gun in this article.

The first paragraph is intentionally worded to suggest malfeasance but you have to know Dan Hausman didn’t sign off on anything by himself. His brother owns some property near the proposed Ag Expo Center. By my informal count, some 22 other people do too. Because Scott Hausman owns some nearby property the proposed site should be excluded? Please. All three commissioners agreed on the best proposal for the multipurpose building but because a Hausman cousin is a director of the winning bidder this is nepotism. I don’t think so. R.T. Turner buys some shelves from Hausman Metal. Big Dan’s son-in-law offers an unpaid opinion on technology providers who subsequently complete a successful competitive bid process. So what?

If this is the very worse an investigation into Dan Hausman’s affairs can turn up, I feel much better about my county commissioners. They may be foolish, but their behavior certainly doesn’t rise to the criminal.

Posted by devinbroncs123 on October 1, 2008 at 2 p.m. (Suggest removal)

At a small high school, 300 people is the Senior Class. He has 300 family members. Are all of them suppoesed to move elsewhere to pursue business? No... He didn't do anything wrong.

I quote from the story, "And although Mueller bidded $122,376 higher than Lehr, Mr. Hausman said commissioners decided on Mueller because they submitted the most definitive architectural design. A News-Press review confirmed Mueller’s more comprehensive design proposal."

I see it all the time in my line of work. People paying more for better work. It's like deciding on your brand of shoes, do you want to go with the Nike's or the Wal Mart brand. It all depends on the role that shoe is playing. That was obviously a huge job and it needed to be done right.

Posted by gr8fan on October 1, 2008 at 6:39 p.m. (Suggest removal)

Mr. Allison,
Just because the commisioners agree on something, doesnt make it correct. I'm sure you make concessions with people you work with, or possibly Mrs. Allison, just to make life easier. Your attitude is exactly why we have problems financially in America. $122,000 is a lot of money to most people in this town. It could pay good ole Vince's salary. Make up for health insurance for the transit group so they don't have to call an emergency meeting to give more money away to CBIZ. I'm sure you approve of $500 hammers in our government as well.

Posted by Laffhill on October 1, 2008 at 7:07 p.m. (Suggest removal)

Mr. Allison... the mere fact that that the commissioners are foolish is enough to get them out of office. Foolish in my opinion is maybe too filtered a word for the decisions and behaviour of these men. They were voted in to office under the assumption they would do what was best for this county. A large family does not make a county. Family ties or not, I am still ticked at running out of road and bridge money in July. My creditors won't buy "oops, I ran out of money in July, wait 'til January" Perhaps Mr. Hausman should have been looking at the budget and not standing at the corner of 169 and 29 dreaming.

Posted by JAFO on October 1, 2008 at 8:54 p.m. (Suggest removal)

i hear a train a coming its rollin round the bend its makin the same sound over and over again : out with hausman-out with hausman, out with hausman out with hausman.

Posted by HenryAllison on October 2, 2008 at 8:24 a.m. (Suggest removal)

If you feel betrayed because you think your Buchanan county commissioners [note to gr8fan: you realize we’re discussing Buchanan county, not the City of Saint Joseph, right? You mentioned the thousands of dollars the city has to kick around, the city manager’s salary and insurance coverage to The Ride, all city expenses. Buchanan County – City of Saint Joseph; not the same thing.] have acted foolishly with respect to their fiscal responsibilities then I understand. Government waste pisses me off too. That, however, isn’t the picture this article attempts to paint. This article attempts to make the case that Mr. Hausman has used his official position to provide undue influence to the financial betterment of his family. Using that standard, the article fails miserably. That was my point, but let’s talk about yours.

I think you have to expect a certain amount of foolish behavior from politicians. I think it is inherent in the nature of the personality that seeks higher office, or to put it less gently, folks that would beg us to allow them to lord over us are, for the most part, naturally asses, and make no mistake, our county commissioners are not professional managers; they are politicians pure and simple. Mr. Hausman doesn’t represent me so I can maintain a certain bemused detachment at his behavior but if he has maxed out your tolerance for foolishness then I urge you to vote him out, if you think you have a better choice. And, with respect to this particular election at least, the question whether you have a meaningful choice would be a subject reasonable people could debate.

Posted by longhours on October 7, 2008 at 10:48 a.m. (Suggest removal)

OK, seriously, has any of you looked at that building? It is a big metal barn, I cannot see where there could possibly have been any architechtural design at all.


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