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Minutes - Regular Meeting - 4/23/2001 Ethics Review Commission Meeting April 23, 2001 The Ethics Review Commission of the City of Round Rock, Texas met on Monday, April 23, 2001 at 6:00 p.m. in the Administration Conference Room in City Hall, 3rd Floor, 221 East Main Street, Round Rock, Texas. Roll Call: Those members present were Commissioners Sue Raye, Chairman, Marvin Denman, Vice-Chairman, Dennis Graffious, and Berry Sullivan. Commissioners Carol Chafin, Phil Scott and Ray Shannon were absent. Also present were Assistant City Manager/City Secretary Joanne Land and Special Counsel for the Ethics Review Commission Barney Knight. Citizens Communications: None Consider discussion concerning the resolution regarding civil service, which was recently approved by the City Council. Commissioner Raye read the resolution (Attachment "A"), which was approved by the City Council. She said that she asked that this item be placed on the agenda because two individuals asked the Ethics Review Commission to review the action of the City Council and asked if it was against the law for the Council to tell citizens how to vote on a proposition. The Commission briefly discussed the action of the Council. Commissioner Denman expressed his concern on the Council approving a resolution in support of initiatives. He added that possibly the Council could remain neutral as a body regarding these types of items. • ATTACHMENT "A" RESOLUTION NO. R-01-04-12-14A1 WHEREAS, on Saturday, May 5, 2001, the citizens of Round Rock will go to the polls to decide whether or not to adopt Chapter 143 of the Local Government Code (the "Civil Service Law" , ) and WHEREAS, the Civil Service Law was first adopted in 1947 in response to abuse under the "spoils system" under which police officers and fire fighters owed their jobs to local politicians, and WHEREAS, the City of Round Rock has never hired, promoted, or fired firefighters on the basis of their relationships with City Councilmembers, and WHEREAS, the City of Round Rock has a long, proud tradition of promoting and compensating all city employees on the basis of job performance and merit, and" WHEREAS, under the Civil Service Law, recruitment, selection, and promotion must be done on the basis of a written exam, with no consideration for outstanding job performance or merit and no provision for special consideration for female or minority applicants, and WHEREAS, under the Civil Service Law, the best, hardest working, firefighters make the same as the worst firefighter in the City, and WHEREAS, because the Civil Service Law prohibits rewarding outstanding employees on the basis of merit, it promotes mediocrity in the workplace, and WHEREAS, under the Civil Service Law, benefits such as sick leave and vacation exceed benefits available to other city employees, which raises issues of equity among fellow employees, and 0i\WPDOCS\RESOLUTI\R10412A1.WPD/sls WHEREAS, under the Civil Service Law, the City' s firefighters will no longer answer to the Fire Chief, the City Manager, or the City Council, but to professional arbitrators who do not have a personal stake in the community, and WHEREAS, if adopted, the administration of the Civil Service Law will cost the taxpayers of Round Rock hundreds of thousands of dollars each year with no added benefit, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the City Council opposes the adoption of the firefighters civil service law and urges the citizens of Round Rock to vote "Against" on the proposition in the upcoming election. The City Council hereby finds and declares that written notice of the date, hour, place and subject of .the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended, and the Act. RESOLVED this 12th day of April, 2001 . 1"ga Wpm ROB A. STLUKA, JR. , Mayor City of Round Rock, Texas ATTEST: N&A;�w City Secretay 0.906rIAJ6 mAer1uEz, *4ssy. 2 Ethics Review Commission Meeting April 23,2001 Mr. Knight informed the Commission that this was not in the purview of their duties or of the Ethics Ordinance. It was the consensus of the Commission that the action of the Council was not in the purview of the Commissions duties and found that is was not applicable to the Ethics Ordinance. Thus closing further discussion of this item. Consider discussion on all aspects of the Round Rock Ethics Ordinance and, if necessary, recommend amendments to the ordinance. The Commission reviewed each section of the Ethics Ordinance stopping to either discuss or ask for clarification of the paragraphs. It was the consensus of the Commission to make minor amendments to the Ethics Ordinance. These amendments are noted on pages 3, 4, 5, 7, 10, and 11 of the Ethics Ordinance. (Attachment "B") Other points that the Commission would like to see addressed are as follows: • Concerning Section F7 that the annual meeting of the Ethics Review Commission should occur between 60 to 90 days after the appointments are made. This would not be an amendment to the Ethics Ordinance but rather a directive to staff. • An individual commission member or designated liaison of the Commission may communicate with the Ethics Commission's General Counsel regarding the process and procedure to help direct the investigation of a complaint. 2 OAdA;Iv��� � , ATTACHMENT'"'B" 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. I � H 15. Source of Income: Abusiness 8� Any usness entity, employment, VV .investment, or activity which earned or produced income, including interest, dividends, royalties or rents, which has i� 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 0 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. C. Standards of Conduct 1. Gifts a. No --I-�Y cff 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 . Ong 71.0. a L4 9 2 . General Provisions a. No -J 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 or employee shall intentions ly or, : knowingly use one's official position or facilities, equipment, or supplies for the pecuniary gain or advantage of said official, employee, or othe s, or use -OWYtt��- t —mow vehicles, printing facilities postage facilities or long distance telephone service f r personal reasons, for pecuniary gain or advantage, or in any political campaign. ��C6� J��ry C. No -fi�l 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_pa_�-o r g�� j o e. No 1 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 y-�f or employee shall vote on or participate in any ecision making process on any matter concerning real prop rt or a business entity if the or employee as a substantial interest in the business entity or real property. wtrj� 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. �y�,t� g. None of the foregoing shall be construed to prohibit U aj _ r___,1 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. OA ` 01-LJ19 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 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 e . �, 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 employees 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. 71c . oNb9 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. OjVV 6. oti, Qmy 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 request 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 . OAAUna,�n� 7 . a�� g 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. QZ(ZL 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 C M complaint, except at a meeting of the Commission. Co aA%4U 7. As soon as reasonably possible, but in no event more than Wit 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 CQ� ommission 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. ub-cu. If the Commission does not determine that there are &MMWOn reasonable grounds to believe that a violation of this came 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. n� 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. Ethics Review Commission Meeting April 23,2001 Mr, Knight will draft a proposed amendment to the Ethics Ordinance that reflects the recommendations of the Commission. Adjournment: There being no further business, the meeting adjourned at 9:00 p.m. Respectfully submitted, Christine Martinez Assistant City Secretary 3 Ethics Review Commission Meeting3� July 30, 2001 The Ethics Review Commission of the City of Round Rock, Texas met on Monday, July 30, 2001 at 7:00 p.m. in the City Council Chamber, City Hall, 221 East Main Street,Round Rock, Texas. Roll Call: Those members present were Vice-Chairman Marvin Denman, Commissioners David Adkins, Carol Chafin, Dennis Graffious,Philip Merrill, Phil Scott and Berry Sullivan. Also present were Assistant City Manager/City Secretary Joanne Land and Special Counsel for the Ethics Review Commission Barney Knight. Approval of Minutes: March 19, 2001 and April 23, 2001 The minutes of March 112001 were withdrawn at the request of staff. MOTION: Commissioner Graffious moved to approve the minutes of April 23, 2001 as submitted. Commissioner Adkins second the motion. VOTE:Ayes: Commissioner Adkins Commissioner Chafin Commissioner Graffious Commissioner Merrill Commissioner Scott Commissioner Sullivan Commissioner Denman Noes: None ACTION: The motion carried unanimously. Citizens Communications: None Election of Chairman: Vice-Chairman Denman opened the floor for nominations. Berry Sullivan and Marvin Denman were nominated. Ethics Review Commission Meeting July 30,2001 The results of a poll of the Commissioners are as follows: Commissioner Sullivan - 6 votes appointed Chairman Commissioner Denman - 1 vote Chairman Sullivan chaired the remainder of the meeting. 6. Consider discussion on all aspects of the Round Rock Ethics Ordinance. In response to Commissioner Adkins question, Mr. Knight responded as to why step relations are not mentioned the City and State Ethics Ordinance. The Commission discussed stepchildren and their grandparents, as it would pertain to the ordinance. Commissioner Denman noted that it is his understanding that City employees are directed not to make endorsements in city elections whether as an individual or part of a group. He asked if that should be addressed in the Ethics Ordinance or wherever appropriate. Mr. Knight responded that he was not aware of that restriction being noted in the Charter or Personal Policy. Staff will double-check both documents. 7. Consider review and action regarding the Round Rock Ethics ordinance amendment as recommended by the Ethics Review Commission. The Commission reviewed the draft ordinance amendment,which was provided by Mr. Knight. After their review and discussion the Commission made minor amendments to the draft ordinance amendment. The first amendment was in the definition of Substantial Interest. The amendment is as follows: "A e.45, effiei ' ^r employee `Mersa has a substantial interest in a business entity..." and "A e4y ee erso has a substantial interest in real property..." MOTION: Commissioner Denman moved to approve the amendment as noted. Commissioner Graffious second the motion. 2 Ethics Review Commission Meeting July 30,2001 VOTE: Ayes: Commissioner Adkins Commissioner Chafin Commissioner Denman Commissioner Graffious Commissioner Merrill Commissioner Scott Commissioner Sullivan Noes: None ACTION: The motion carried unanimously. The second amendment was to Section 2. Standards of Conduct, Subsection 1.903(2) General Provisions (c) the following sentence was added to the end of this paragraph. "Except as otherwise specifically authorized by ordinance." MOTION: Commissioner Adkins moved to approve the amendment as noted. Commissioner Denman second the motion. VOTE: Ayes: Commissioner Adkins Commissioner Chafin Commissioner Denman Commissioner Graffious Commissioner Merrill Commissioner Scott Commissioner Sullivan Noes: None ACTION: The motion carried unanimously. 3 Ethics Review Commission Meeting July 30,2001 The third amendment was added to Section 4. Financial Disclosure. Subsection 9.E. (6)(c) "...and who appear and request some action on the part of the City Council, cardand c�mtniss� even though the action does not concern such business entity." MOTION: Commissioner Denman moved to approve the amendment as noted. Commissioner Graffious second the motion. VOTE: Ayes: Commissioner Adkins Commissioner Chafin Commissioner Denman Commissioner Graffious Commissioner Merrill Commissioner Scott Commissioner Sullivan Noes: None ACTION: The motion carried unanimously. MOTION: Commissioner Denman moved to approve the draft Amended Ethics Ordinance as amended. Commissioner Adkins second the motion. VOTE: Ayes: Commissioner Adkins Commissioner Chafin Commissioner Denman Commissioner Graffious Commissioner Merrill Commissioner Scott Commissioner Sullivan Noes: None 4 Ethics Review Commission Meeting July 30,2001 ACTION: The motion carried unanimously. Adjournment: There being no further business,the meeting adjourned at 8:48 p.m. Respectfully submitted, Christine Martinez Assistant City Secretary 5