in Houston, Texas
Houston City Councilman Stephen Costello cleared in investigation; city inspector general finds no conflict in Costello Inc.'s contracts with city
Wednesday, Mar 23, 2011, 06:50PM CST
By Steve Miller
Houston City Hall

An investigation into Houston City Councilman Stephen Costello reported by Texas Watchdog regarding several active city contracts with his engineering firm, Costello Inc. has found no violations of city policy or state ethics laws.

The investigation found that Costello "has not engaged and is not engaging in a conflict of interest, as alleged," according to a one-page memo from the city attorney's office to the mayor. The investigation was launched after a citizen informed Mayor Annise Parker at a public forum last month that Costello Inc. had been awarded a $1.7 million contract to fix water lines in the Memorial Plaza, Shadywood and Regency Square areas of the city in October 2009, shortly before he was elected to the City Council. Parker referred the matter to the city's Office of the Inspector General.

The investigation found that while Costello's company had three open contracts with the city, Costello "is not personally involved in any of these contracts," they were entered into prior to his election to council, and Costello "has acknowledged that he must recuse himself from voting on any issues regarding the city contracts that his firm currently has with the city." Costello Inc. is also barred from soliciting new contracts with the city while Costello is on the council, the memo says.


Contact Steve Miller at 832-303-9420 or

Keep up with all the latest news from Texas Watchdog. Fan our page on Facebook, follow us on Twitter and Scribd, and fan us on YouTube. Join our network on, and put our RSS feeds in your newsreader. We're also on MySpaceDiggFriendFeed, NewsVine and tumblr.

Photo of Houston City Hall by flickr user eschipul, used via a Creative Commons license.

Wednesday, 04/06/2011 - 12:35PM

great another corrupt politician......let's line him up at the courthouse right behind Jerry Eversol, and waste more precious tax dollars on prosecution.

Tuesday, 10/04/2011 - 04:47PM

I think it is unfortunate, Bailey, that you posted a comment without actually reading the article first. However, I'm not sure how you could have missed the overwhelming large font of the title: "Houston City Councilman Stephen Costello cleared in investigation..."

It is obvious that a resident, not in favor of Prop. 1 (Renew Houston), is responsible for the unfounded accusation. The real tragedy is that our tax dollars were spent on this investigation.

Karen Townsend | 7 years 10 months
"Patrick F. Kennedy is a career foreign service officer" -
Peter Corbett ✈ | 7 years 10 months
I'm at McCarran International Airport (LAS) w/ @almacy
KERA Public Media | 7 years 10 months
TONIGHT at 7pm on KERA TV: Presidential Debate: Learn more at PBS NewsHour.
PBS MediaShift | 7 years 10 months
Tech Snafus Make Bill O'Reilly/Jon Stewart 'Rumble' More of a Stumble (@kegill | @pbsmediashift) #rumble2012
Will Sullivan | 7 years 10 months
Great addition, been burned too much by bad subs. "Google Play Announces Free Trials For In-App Subscription Services"
TxDOT | 7 years 10 months
I-35W/North Tarrant Express #constantcontact
© 2020 TEXAS WATCHDOG and USELABS. All Rights Reserved. Terms of Use and Privacy Statement