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O-90-2469 - 4/26/1990ORDINANCE N0. _4g L jL0 AN ORDINANCE AMENDING CHAPTER 1, SECTION 9, CODE OF ORDINANCES, CITY OF ROUND ROCK, TEXAS; PROVIDING A POLICY STATEMENT; DEFINING CERTAIN TERMS; PROVIDING FOR STANDARDS OF CONDUCT; PROVIDING FOR DISCLOSURE OF INTEREST; PROVIDING FOR FINANCIAL DISCLOSURE; PROVIDING FOR AN ETHICS REVIEW COMMISSION; PROVIDING FOR DISPOSITION OF ALLEGED VIOLATIONS; PROVIDING FOR EFFECTIVE DATES; PROVIDING FOR A SAVINGS CLAUSE; AND REPEALING CONFLICTING ORDINANCES. BE IT ORDAINED BY THE CITY COUNCIL OF ROUND ROCK, TEXAS, THAT: I. Chapter 1, Section 9, Code of Ordinances, City of Round Rock, Texas is hereby amended to read as follows: Section 9: Standards of Conduct and Financial Disclosure For City Officials A. Policy It is the policy of the City that the proper operation of democratic government requires that city officials and employees be independent, impartial and responsible to the people; that governmental decisions and policy be made in proper channels of the governmental structure; that public office not be used for personal gain; and that the public have confidence in the integrity of its government. In recognition of these goals, a code of ethics for all city officials and employees is adopted. This code has four purposes: (1) to encourage high ethical standards in official conduct by city officials and employees; (2) to establish guidelines for ethical standards of conduct for all such officials and employees by setting forth those acts or actions that are incompatible with the best interests of the City; (3) to require disclosure by such officials, candidates, and employees of private financial or other interests in matters affecting the City; and (4) to serve as a basis for disciplining those who fail to abide by its terms. The provisions of this Section shall not apply to political contributions, loans, expenditures, reports or regulation of Political campaigns, or the conduct of candidates in such campaigns, except as expressly provided herein. B. Definitions 1. Appears Before: A person appears before the or commission when such person publically states address, signs a sheet provided at the podium for and addresses the Council or commission. City Council his name and that purpose, 2. Business Entity: Any corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self-employed individual, holding company, joint stock company, receivership, trust, or any legal entity organized for profit. 3. Business Dealings: Any activity involving the exchange of economic benefits. 4. Candidate: Every person who declares for or files for any office of the City to be filled by election. 5. City Official: The mayor, every member of the City Council, the city manager, the city attorney, the city secretary, the director of planning and community development, the director of public works, the director of finance, and persons acting in the capacity of the aforementioned officers or employees. 6. Compensation: Any economic benefit received in return for labor, services, property, or investment. 7. Economic Benefit: Any money, real or personal property, purchase, sale, lease, contract, option, credit, loan, discount, service, or other tangible or intangible thing of value, whether similar or dissimilar to those enumerated. 8. Employee: Any person employed by the City whether under civil service regulations or not, including those individuals on a part-time basis, but such term shall not be extended to apply to any independent contractor. 9. Family Member: The spouse and any dependent minor children of a city official or candidate. 10. Gift: A favor, hospitality, or economic benefit other than compensation but which does not include campaign contributions reported as required by state law, gifts received from a relative if given on account of kinship, or any value received by will, intestate succession, or as a distribution from an inter vivos or testamentary trust established by a spouse or ancestor. 11. Identification: For a natural person, the person's name, street address, city and state; for any entity other than a 2. C. natural person, the name, address, city and state of the entity's principal location or place of business, the type or nature of the entity, the date on which it came into existence, the state of incorporation, if any, the names of the partners or trustees, if any. 12. Income: Economic benefit received. 13. Intentionally: A person acts intentionally, or with intent, with respect to the nature of his conduct or to a result of his conduct when it is his conscious objective or desire to engage in the conduct or cause the result. 14. Knowingly: A person acts knowingly, or with knowledge, with respect to the nature of his conduct or to circumstances surrounding his conduct when he is aware of the nature of his conduct or that the circumstances exist. A person acts knowingly, or with knowledge, with respect to a result of his conduct when he is aware that his conduct is reasonably certain to cause the result. 15. Source of Income: Any business entity, employment, investment, or activity which earned or produced income, including interest, dividends, royalties or rents, which has been paid to or for the credit of a city official, candidate or family member or which would be taxable to said city official, candidate or family member under the United States Internal Revenue Code, as amended, even though not actually paid or credited. 16. Substantial Interest: A person has a substantial interest in real property or a business entity if he and/or a family member owns a ten percent (10%) or more interest in the aggregate of said real property or business entity. Standards of Conduct 1. Gifts a. No city official or employee shall intentionally or knowingly solicit or accept any contribution, gift, or economic benefit with actual or constructive knowledge that same is: (i) offered or given with intent to influence the judgment or discretion of such employee or official; or (ii) given in consideration of the favorable exercise of such employee or official's judgment or discretion in the past. 3. 2. General Provisions a. No city official or employee shall intentionally or knowingly disclose any confidential information gained by reason of said official or employee's position concerning the property, operations, policies or affairs of the City, or use such confidential information for the pecuniary gain of said official, employee, or others. b. No city official or employee shall intentionally or knowingly use one's official position or City owned facilities, equipment, or supplies for the pecuniary gain or advantage of said official, employee, or others, or use City owned vehicles, printing facilities, postage facilities or long distance telephone service for personal reasons, for pecuniary gain or advantage, or in any Political campaign. C. No city official shall intentionally or knowingly appear before the body of which the official is a member while representing himself, or any other person, group, association, interest, or business entity. d. No city official or employee shall intentionally or knowingly represent directly or indirectly any private person, group, or interest other than himself or a family member before any department, agency, commission or board of the City for pay or profit. e. No city official or employee shall vote on or participate in any decision making process if the official or employee has a direct financial interest in the outcome of the matter under consideration. No city official or employee shall vote on or participate in any decision making process on any matter concerning real property or a business entity if the official or employee has a substantial interest in the business entity or real property. f. No city official or employee shall intentionally or knowingly accept other employment or engage in outside activities incompatible with the full and proper discharge of official duties and responsibilities, or which would tend to impair independent judgment in the performance of said official duties. g. None of the foregoing shall be construed to prohibit a city official or employee from representing his interest in his owner -occupied homestead before the council, board, commission or any department except for the body of which the official is a member, or the department by which the employee is employed. 4. h. In any action or proceeding in the municipal court of the City which was instituted by a city official or employee in the course of official duties, no city official shall knowingly represent anyone other than himself or a family member. If a council member elects to have a trial in municipal court, the City Council, without the participation of the affected council member, shall appoint a special judge to preside over the trial. D. Disclosure of Interest 1. If any city official has a substantial interest in any real property or business entity involved in any decision pending before the body of which the official is a member, the official shall not vote or otherwise participate in the consideration of the matter. 2. If any employee has a substantial interest in any real property or business entity involved in any decision pending before the department by which the employee is employed, the employee shall not participate in the consideration of the matter. 3. In the case of a city official, the official shall publicly disclose, verbally or in writing, the nature and extent of such interest to the body on which the official serves prior to any discussion or determination of the matter to be considered or immediately upon discovery of the conflict of interest. The statement of disclosure shall be included in the official minutes of the body. 4. In the case of an employee, the employee shall disclose such information in writing to the employee's supervisor and to the city secretary prior to any consideration of the matter. The city secretary shall keep a file of employee statements of disclosure and said file shall be a public record of the City. E. Financial Disclosure 1. No later than April 30 of each year, each city official shall file a sworn financial disclosure statement with the city secretary reflecting the financial situation of the city official as of December 31 of the previous year. 2. A newly employed or appointed city official shall file a sworn financial disclosure statement with the city secretary within thirty (30) days from the date the position with the city is assumed. Said statement shall reflect the financial situation as of date of employment or appointment and for the previous twelve (12) months, provided, however, such city official shall not be required to include in such statement the 5. requirements of paragraphs 4.f., g., and h. of this Subsection E. 3. Each candidate shall file a statement with the city secretary filing for office, reflecting the candidate as of December 31 of election date. sworn financial disclosure within fifteen (15) days of financial situation of the the year previous to the 4. Each person required to file a financial disclosure statement shall do so on a form supplied by the City which shall include the following information: a. The person's name, residence address, business address, telephone number, name of all family members and all names under which the person or family member does business. b. Identification by street address, and legal description of all real property located within the city or its extraterritorial jurisdiction in which the person has a substantial interest. C. Identification of each business entity owning property or doing business within the City or its extraterritorial jurisdiction in which the person has a substantial interest. d. Identification of each person or business entity to whom the person or family member owed a debt of Ten Thousand Dollars ($10,000) or more during the reporting period, but not including debts owed to persons related within the second degree of consanguinity or affinity and excluding loans to a political campaign which were reported as required by law; if repaid during the reporting period the date of repayment shall be stated. e. Identification of each source of income amounting to ten percent (10%) or more of the person's or family member's gross annual income as defined by the United States Internal Revenue Code. f. Identification of the donor of each gift of more than one hundred fifty dollars ($150.00) in value received by the person or family member, including the value of the gift, where such donor has appeared before and requested action of the City Council during the reporting period. g. Identification of the donor of two or more gifts of an accumulated value of six hundred dollars ($600.00) or more received by the person or family member, where such 6. donor has appeared before and requested action of the City Council during the reporting period. h. Identification of all individuals or business entities that: ( i) he or a business entity in which he has a substantial interest has had business dealings involving one or more transactions of five hundred dollars ($500.00) or more each, for a total of twenty-five hundred dollars ($2,500) or more, and (ii) have appeared before and requested action of the City Council during the reporting period. Identification shall also be required of all individuals who have an ownership interest of twenty-five percent (25%) or more in a business entity as described in (i) above and who appears before and requests some action on the part of the City Council, even though the action does not concern such business entity. 5. The city secretary shall maintain all financial disclosure statements required to be filed herein as public records and shall retain them for a period of three (3) years after which the statements shall be returned to the person filing them or shall be destroyed. 6. A city official, member of a city board or commission, or employee shall immediately publicly identify, either verbally or in writing, all individuals or business entities that: a. he or a business entity in which he has a substantial interest has had business dealings involving one or more transactions of five hundred dollars ($500.00) or more each, for a total of twenty-five hundred dollars ($2,500) or more within the immediately preceding twelve (12) month period, and b. appear before and request some action of the City Council, board or commission of which such reporting person is an advisor or member. Such immediate identification shall also be required of all individuals who have an ownership interest of twenty-five percent (25%) or more in a business entity as described in a. above and who appear and requests some action on the part of the City Council, even though the action does not concern such business entity. Such identification shall be made prior to any decision or determination of the matter or immediately upon discovery of such business dealings. 7. 7. Within thirty (30) days of being appointed to the Planning and Zoning Commission and on each anniversary of that date, each member of such commission shall file with the city secretary a sworn statement identifying by street address and legal description all real property located within the City or its extraterritorial jurisdiction in which the member has a substantial interest. 8. Any person who appears before the City Council or commission who has had business dealings in the immediately preceeding twelve (12) month period involving one or more transactions of five hundred dollars ($500.00) or more each, for a total of twenty-five hundred dollars ($2,500.00) or more, with a councilmember, commissioner, or business entity in which a councilmember or commissioner has a substantial interest, shall disclose such business dealings at the time of the appearance. Any person who shall intentionally or knowingly fail to make the aforesaid disclosure shall be guilty of a misdemeanor and shall be fined in accordance with Chapter 1, Section 5.B of the City Code. F. Ethics Review Commission 1. An Ethics Review Commission ("Commission") is hereby established to be composed of seven (7) members, all of whom shall reside in the City. 2. Each Commission member shall be appointed by the City Council and shall occupy a position on the Commission, such positions being numbered 1 through 7. 3. The Commission members shall be appointed to two (2) year staggered terms. Positions 1, 3, 5, and 7 shall expire on May 1, 1991, with successive two (2) year terms and positions 2, 4, and 6 shall expire on May 1, 1992, with successive two (2) year terms. 4. All vacancies shall be filled for the unexpired term. A member shall hold office until his successor has been appointed by the City Council. 5. The Commission shall elect a Chairman and a Vice -Chairman to one (1) year terms. The Vice -Chairman shall act as chairman in the absence of the Chairman. 6. Four (4) or more members of the Commission shall constitute a quorum, but no action of the Commission shall be 8. of any force or effect unless it is adopted by the favorable vote of four (4) or more members. 7. The Commission shall meet at least once a year to review this Section and may make recommendations to the City Council for amendments hereto. 8. The Commission shall render advisory opinions on potential conflicts of interest or violation of this Section at the request of a city official, member of a City board or commission, or employee subject to the terms of this Section. Such advisory opinion shall be rendered within a reasonable time, but in no event later than thirty (30) days after a request therefore is received by the Commission. 9. It shall be a defense to an alleged violation of this Section that the person accused previously requested an advisory opinion of the Commission and acted on such opinion in good faith, unless material facts were omitted or misstated by the person requesting the opinion. Such advisory opinion shall also be binding on the Commission in any subsequent charges concerning the person requesting the opinion. 10. Independent legal counsel shall be utilized to advise the Commission and participate in hearings. The City Council shall annually designate and retain independent counsel who shall be a duly licensed attorney in the State of Texas. G. Disposition of Alleged Violations 1. A sworn complaint based on personal knowledge alleging a violation(s) of this Section shall specify the provision(s) of this Section alleged to have been violated, and shall name the city official, candidate, or employee being charged. 2. Upon the aforesaid sworn complaint of any person being filed with the city secretary's office or on its own initiative, the Commission shall consider possible violations of this Section by city officials, candidates, and employees. 3. A complaint alleging a violation of this Section must be filed with the city secretary within two (2) years from the commission of the action alleged as a violation, and not afterward. 4. Not later than three (3) working days after the city secretary receives a sworn complaint, the city secretary shall acknowledge the receipt of the complaint to the complainant, and provide a copy of the complaint to the city attorney, the independent counsel, the Commission and the person complained against. Not later than ten (10) working days after receipt of a complaint, the Commission shall notify in writing the person 9. who made the complaint and the person complained against of a date for a preliminary hearing. If the Commission does not hold a preliminary hearing within twenty (20) working days of receipt of the complaint, it shall notify the person who made the complaint of the reasons for the delay and shall subsequently give him the appropriate notification. 5. The Commission may consider possible violations of this Section on its own initiative. Within seven (7) days of the Commission's decision to consider a possible violation of this Section, the Commission shall draft a written complaint specifying the provision(s) of this Section alleged to have been violated and shall file a copy with the city secretary, and provide a copy to the city attorney, the independent counsel, and the person complained against. Not later than fifteen (15) days after the drafting of the complaint, the Commission shall notify in writing the person complained against of the date for the preliminary hearing. 6. After a complaint has been filed and during the pendency of a complaint before the Commission, a member of the Commission may not communicate directly or indirectly with any party or person about any issue of fact or law regarding the complaint, except at a meeting of the Commission. 7. As soon as reasonably possible, but in no event more than sixty (60) days after receiving a complaint, the Commission shall conduct a preliminary hearing. a. The issue at a preliminary hearing shall be the existence of reasonable grounds to believe that a violation of this Section has occurred. The person filing a complaint, or the independent counsel in cases considered upon the Commission's own initiative, shall state the alleged violation and shall describe in narrative form the testimony and other evidence which would be presented to prove the alleged violation as stated in the written complaint. Statements at a preliminary hearing shall be under oath, but there shall be no cross-examination or requests for persons or evidence issued for the hearing. Members of the Commission may question the complainant, the independent counsel for the Commission, or the city official or employee named in the complaint. b. The city official or employee named in the complaint shall have the opportunity to respond, but is not required to attend or make any statement. The official or employee may describe in narrative form the testimony and other evidence which would be presented to disprove the alleged violation. If the official or employee agrees that a 10. violation has occurred, he may so state and the Commission may consider the appropriate sanction . C. The complainant and the city official or employee named in the complaint shall have the right of representation by counsel. d. At the conclusion of the preliminary hearing, the Commission shall decide whether a final hearing should be held. If the Commission determines that there are reasonable grounds to believe that a violation of this Section has occurred, it shall schedule a final hearing. If the Commission does not determine that there are reasonable grounds to believe that a violation of this Section has occurred, the complaint shall be automatically dismissed. A decision to conduct a final hearing is not a finding that a violation has occurred. e. The Commission, at any time during the preliminary hearing, may also dismiss a complaint if the complaint does not allege conduct which would be a violation of this Section. Before a complaint is dismissed for failure to allege a violation, the complainant shall be permitted one opportunity, within ten (10) days of such preliminary hearing, to revise and resubmit the complaint. f. The complainant, the independent counsel, and the city official or employee named in the complaint may ask the Commission at a preliminary hearing to request certain persons and evidence for a final hearing, if one is scheduled. 8. Final Hearing. a. The final hearing shall be held as expeditiously as Possible following the determination by the Commission that there are reasonable grounds to believe that a violation of this Section has occurred, but in no event shall it be held more than thirty (30) days after said determination. The Commission may grant two (2) Postponements, not to exceed fifteen (15) days each, upon the request of the city official or employee named in the complaint. b. The issue at a final hearing shall be whether a violation of this Section has occurred. The Commission shall make its determination based on clear and convincing evidence in the record. All witnesses shall make their statements under oath. If the Commission determines that a violation has occurred, it shall state its findings in writing, shall identify the particular provision(s) of this Section which have been violated, and within five (5) 11. 9. working days shall deliver a copy of the findings to the complainant, if any, the person named in the complaint and the city secretary. C. If a complaint proceeds to a final hearing, the Commission may request witnesses to attend and testify, administer oaths and affirmations, take evidence and request the production of books, papers, records, or other evidence needed for the performance of the Commission's duties or exercise of its powers, including its duties and powers of investigation. Sanctions. a. If the Commission determines that a violation of this Section has occurred, it shall proceed directly to determination of the appropriate sanction(s). A violation of this Section shall not be subject to criminal penalties under the City Code. The Commission may receive additional testimony or statements before considering sanctions, but is not required to do so. If the city official or city employee named in the complaint acted in reliance upon a written opinion of the city attorney, the Commission shall consider that fact. b. If the Commission determines that a violation has occurred, it may impose or recommend the following sanctions: (i) A letter of notification shall be the appropriate sanction when the violation is clearly unintentional, or when the official or employee's conduct complained of was made in reliance on a written opinion of the city attorney. A letter of notification shall advise the official or employee to whom it is directed of any steps to be taken to avoid future violations. The Commission may direct a letter of notification to any official or employee covered by this Section. (ii) A letter of admonition shall be the appropriate sanction in those cases in which the Commission finds that the violation is minor and/or may have been unintentional, but calls for a more substantial response than a letter of notification. The Commission may admonish any official or employee covered by this Section. (iii) A reprimand shall be the appropriate sanction when the Commission finds that a violation has been committed intentionally or through disregard of this Section. The Commission may reprimand any official 12. or employee covered by this Section. A reprimand directed to a city official or board or commission member shall also be sent to the City Council. A reprimand directed to an employee shall be sent to the city manager and included in said employees personnel file. A letter of reprimand directed to an elected city official shall be transmitted to the city secretary and published in the official newspaper of the City, and shall be sent to the City Council. (iv) A recommendation of removal from employment or a recommendation of suspension from employment, as well as a recommendation for length of suspension, shall be the appropriate sanction when the Commission finds that a serious or repeated violation(s) of this Section has been committed intentionally or through culpable disregard of this Section by city employees. A recommendation of suspension of city employees shall be directed from the Commission to the city manager. In such cases the final authority to carry out such recommendations to suspend from employment and the length of suspension shall be with the city manager. (v) A letter of censure shall be the appropriate sanction when the Commission finds that a serious or repeated violation(s) of this Section has been committed intentionally or through culpable disregard of this Section by an elected city official. A letter of censure directed to an elected city official shall be transmitted to the city secretary, published in the official newspaper of the City and shall be sent to the city council. II. A. The invalidity of any Section or provision of this ordinance shall not invalidate other Sections or provisions thereof. B. All ordinances, parts of ordinances, or resolutions in conflict herewith are expressly repealed. READ and APPROVED on first reading this day of 1990. 4&LL-11 13. READ and APPROVED and ADOPTED on second reading this og4'y of 1990. ! J MIKE ROBI SON, MAYOR City of Round Rock, Texas ATTEST: JO NE LAND, City Secretary 14. DATE: April 23, 1990 SUBJECT: City Council Meeting, April 26, 1990 ITEM: 8B. Consider an ordinance adopting an Ethics Ordinance. (Second Reading) STAFF RESOURCE PERSON: Bob Bennett STAFF RECOMMENDATION: There have been no changes to this ordinance since first reading.