13-Deliberate and possibly act on ordinance adopting code of ethicsCITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date:
Originating Department:
Ptesented By:
Agenda Item No.:
04/26/2010
Council Date:
City Council
Mayor Freelen
13.
OS/10/2010
RECOMMENDED MOTION:
First reading - not an action item
POLICY ISSUE(S):
BACKGROUND:
On Apri122, 2010, City Council met for a special workshop to discuss a Code of Ethics and Conduct for
City Council, employees, boards, commissions, and committees. At that meeting, the City Council
reviewed and discussed several versions of ethics policies from municipalities in Texas and outside the
State. The consensus of the Council was to model the City of Paris Ordinance similar to the City of
South Lake, and directed staff to bring an Ordinance to their next regular meeting for review.
BOARD/COMMISSION RECOMMENDATION:
EXHIBITS:
Ordinance
ACTION:
BUDGET INFO:
❑ Financial Report ❑ Minute Order
Expense
$
❑ Department Report ❑ Resolution
Budgeted Amt.
$
❑ Presentation Z Ordinance
y'I'D Actual
$
❑ Public Hearing ❑ Other
Acct. Name
Acct. Number
FISCAL NOTES:
REVIEWED AND APPROVED BY:
Z Administration Z City Clerk ❑ Community Development ❑ EMS/IT ❑ Finance ❑ Fire
❑ Municipal Court M Legal ❑ Libtary ❑ Police ❑ Eng./Public Works ❑ Utilities
City of Paris lio Revised 2/04/08
J
DRAFT
attorney\ordwork\current\Code of Ethics Ord 2010
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
APPROVING AND ADOPTING A CODE OF ETHICS A1VD COIVDUCT FOR
CITY COUNCIL, EMPLOYEES, BOARDS, COMMISSIONS, AND COMMITTEES
BY AMENDING CHAPTER 2, ADMINISTRATION OF THE CODE OF
ORDIIVANCES OF THE CITY OF PARIS BY RENAMING ARTICLE IX, CODE
OF ETHICS AND CONDUCT FOR CITY COUNCIL, EMPLOYEES, BOARDS,
COMMISSIONS AND COMMITTEES, AND BY ADDING SECTIOIVS 2-300
THROUGH 2-308; MAKING OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; PROVIDING A REPEALER CLAUSE, A
SEVERABILITY CLAUSE, A SAVINGS CLAUSE; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, in order to assure the proper operation of democratic government
requires that public officials and employees be independent, impartial and responsible
only to the people of the city they serve; and
WHEREAS, governmental decisions and policy should be made in the proper
channels of the governmental structure and that no officer, or member of any board,
commission or committee should have any interest, financial or otherwise, direct or
indirect, or engage in any business, transaction or professional activity or incur any
obligation of any nature which is in conflict with the proper discharge of his or her duties
in the public interest; and,
WHEREAS, public office and public employment are positions of public trust
imposing the duty of a fiduciary upon all members and officeholders, who are not to use
their public position for personal gain, and that the public should have confidence in the
integrity of its government; and,
WHEREAS, to implement such a policy, the City Council deems it advisable to enact
this code of ethics and conduct for all officers, employees, and advisory board members,
whether elected or appointed, paid or unpaid, to serve not only as a guide for official
conduct of the City's public servants, but also as a basis for discipline for those who refuse
to abide by its terms.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS, THAT:
Section 1. The findings set out in the preamble to this ordinance are hereby in all
things approved.
1
119
Section 2. Article IX, of Chapter 2, Administration, of the Code of Ordinances of the
City of Paris, Texas, be, and the same is hereby amended to read in its entirety as follows:
"ARTICLE IX. CODE OF ETHICS A1VD COIVDUCT FOR CITY COUNCIL, EMPLOYEES,
BOARDS, COMMISSIONS AND COMMITTEES.
Sec.2-300. Definitions.
For the purposes of this code of ethics and conduct the following words
and phrases shall have the meanings ascribed to them by this section:
Advisory board shall mean a board, commission or committee of the city that
functions only in an advisory or study capacity.
Business entity shall mean a sole proprietorship, partnership, firm,
corporation, association, holding company, joint stock company,
receivership, trust, or any other entity recognized by law.
Employee shall mean any person employed by the city, including those
individuals on a part-time basis, but such term shall not be extended to apply
to any independent contractor.
Family member shall mean a person related to another person within the first
degree by consanguinity or affinity, as described by Subchapter B, Chapter
573, Government Code.
Knowingly. A person acts knowingly, or with knowledge, with respect to the
nature of his or her conduct or to circumstances surrounding his or her
conduct when he is aware of the nature of his or her conduct or that the
circumstances exist. A person acts knowing, or with knowledge, with respect
to a result of his or her conduct when he is aware that his or her conduct is
reasonably certain to cause the result.
Officer shall mean any member of the City Council, the Planning and Zoning
Commission, the Paris Economic Development Corporation, the Board of
Adjustment, the Building Standards Commission, the Paris Historical
Commission and any member of a board, commission or committee
established by ordinance, charter or state law that has final approval
authority over any application, permit, license or other city approvals;
provided, no member of an advisory board shall be deemed an officer of the
city.
Substantial interest.
(1) A person has a substantial interest in a business entity if:
2
12-0
a. The interest is ownership of ten percent (10%) or more
of the voting stock or shares of the business entity or
ownership of either ten percent (10%) or more or
$15,000.00 or more of the fair market value of the
business entity (see section 171.002, Texas Local
Government Code); or
b. Funds received by the person from the business entity
exceed ten percent (10%) of the person's gross income
for the previous year (see section 171.002, Texas Local
Government Code); or
c. The person holds a position of inember of the board of
directors or other governing board of the business entity;
or
d. The person serves as an elected officer of the business
entity; or
e. The person is an employee of the business entity; or
£ The person is a creditor, debtor or guarantor of the
business entity in the amount of $15,000.00 or more; or
g. Property of the person has been pledged to the business
entity or is subject to a lien in favor of the business entity
in the amount of $15,000.00 or more.
(2) A person does not have a substantial interest in a business
entity if:
a. The person holds a position as a member of the board of
directors or other governing board of a business entity;
and
b. The person has been designated by the city council to
serve on such board; and
c. The person receives no remuneration, either directly or
indirectly, for his or her service on such board; and
d. The primary nature of the business entity is either
charitable, nonprofit or governmental.
(3) A person has a substantial interest in real property if the
interest is an equitable or legal ownership interest with a fair
3
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market value of $2,500.00 or more (see section 171.002, Texas
Local Government Code).
(4) A person has a substantial interest under this chapter if the
person's family member has a substantial interest under this
chapter (see section 171.002, Texas Local Government Code).
State Law References: Degrees of relationship, V.T.C.A., Government Code ch. 573.
Sec. 2-301. Declaration of article policy.
It is hereby declared to be the policy of the city that the proper
operation of democratic government requires that public officials and
employees be independent, impartial and responsible only to the people of
the city; that governmental decisions and policy should be made in the
proper channels of the governmental structure; that no officer, employee or
member of any board, commission or committee should have any interest,
financial or otherwise, direct or indirect, or engage in any business,
transaction or professional activity or incur any obligation of any nature
which is in conflict with the proper discharge of his duties in the public
interest; that public office and public employment are positions of public
trust imposing the duty of a fiduciary upon all employees and officeholders,
who are not to use their public position for personal gain; and that the public
should have confidence in the integrity of its government. To implement such
a policy, the city council deems it advisable to enact this code of ethics and
conduct for all officers, employees and advisory board members, whether
elected or appointed, paid or unpaid, to serve not only as a guide for official
conduct of the city's public servants, but also as a basis for discipline for
those who refuse to abide by its terms. This code of ethics and conduct is
cumulative of other city ordinances, Civil Service rules, personnel policies,
City Charter provisions and state statutes defining and prohibiting conflict of
interest.
Sec. 2-302. Penalties for violation of article; voidable acts.
(a) Except where otherwise provided by state law, it is not the intent of
this article that violations of this article be subject to criminal penalties.
(b) Whenever the city council has determined that any officer, employee
or advisory board member has violated any provision of this article, such
officer, employee or advisory board member shall be subject to
admonishment, censure and/or other discipline. The City Council may
remove from office any officer or advisory board member (other than a City
Council member) from their position for violating any provision of this
Article. Any complaint or charge against a City employee for violating this
Article shall be referred to the City Manager for further investigation and/or
4
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discipline in accordance with the Ciry's Personnel Policies. "'^*";^T *h;°
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(c) The city council may exempt from the provisions of this article any
conduct found to constitute a violation by an officer, employee or advisory
board member if it finds that the enforcement of this article with respect to
such conduct is not in the public interest.
(d) In administering this Code of Ethics and Conduct, the City Council
shall examine all complaints received, but they may dismiss frivolous or
unsubstantiated complaints.
(e) Any contract or transaction which was the subject of an official act or
action of the city in which there is an interest prohibited by this article, or
which involved the violation of a provision of this article, shall be voidable at
the option of the ciry council.
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Sec. 2-303. Standards of conduct.
(a) No city officer, employee or advisory board member, or their spouses,
shall knowingly:
(1) Accept or solicit any gift, favor, service or thing of value from
any person, group or business entity, including a promise of
future employment, that might reasonably tend to influence
him in the discharge of his or her official duties or that the
officer, employee or advisory board member knows or should
know is being offered with the intent to influence the officer's
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or employee's official conduct. This prohibition shall not apply
to:
a. An occasional non-pecuniary gift, insignificant in value; or
b. An award publicly presented in recognition of public
service; or
c. Any gift which would have been offered or given to the
officer employee or advisory board member or his or her
spouse if he/she were not a city officer, employee or
advisory board member; or
d. Any travel and related expenses to attend ceremonial
functions, provided that such acceptance and attendance
have been approved by the city council prior to the
occurrence of the ceremonial function.
(2) Grant in the discharge of his or her official duties any improper
favor, service or thing of value to any person, group or
business entity;
(3) Knowingly disclose any confidential information gained by
reason of the position of the officer, employee or advisory
board member concerning property, operations, policies or
affairs of the city, or use such confidential information to
advance any personal interest, financial or otherwise, of such
officer, employee or advisory board member, or others. This
subsection shall not preclude disclosure of such confidential
information in connection with any investigation or
proceeding regarding whether there has been a violation of the
standards of conduct set forth in this code.
(4) Use one's position or office of employment or city facilities,
personnel, equipment or supplies to secure special privileges
or exemptions for himself or others or for the private gain of
the city officer, employee, advisory board member or his or her
spouse.
(5) Engage in any exchange, purchase or sale of property, goods or
services with the city, except:
a. Rendering services to the city as an officer, employee or
advisory board member;
b. Paying taxes, fines, utility service or filing fees;
6
19 11
c. Executing and performing any developer's agreement or
plat in compliance with laws and regulations applicable to
any person; provided, however, that if any city ordinance,
rule or regulation allows any discretion by the
appropriate officers or employees of the ciry in the
interpretation or enforcement of such ordinance, rule or
regulation, any such discretion shall be exercised in favor
of the city in connection with any such developer's
agreement or plat;
d. Advisory board members who are not otherwise officers
or employees of the city, may engage in any exchange,
purchase or sale of property, goods or services with the
city, or enter into a contract with the city, provided that
the board on which they are a member has no advisory
function or cognizance, direct or indirect, present or
prospective, with respect to the transaction in which such
advisory board member engages or proposes to engage.
(6) Hold himself/herself out as representing the city in any
capacity other than that for which he was appointed, elected or
hired.
(7) Engage in or accept private employment or render a service
when such employment or service is incompatible with the
proper discharge of his or her official duties or would tend to
impair his or her independent judgment in the performance of
his or her official duties.
(8) Make or permit the unauthorized use of city owned vehicles,
equipment, materials or property.
(9) Grant any special consideration, treatment or advantage to any
citizen beyond that which is available to every other citizen.
(10) After termination of service or employment with the city,
appear before any board or commission of the city in relation
to any case, proceeding or application in which he or she
personally participated or which was under his or her active
consideration, during the period of his or her service or
employment.
(11) Transact any business in his or her official capacity with the
city with a business entity in which he/she has a substantial
interest.
7
1 7 P-1.
(12) Engage in any dishonest or criminal act or any other conduct
prejudicial to the government of the city or that reflects
discredit upon the government of the city.
(13) Knowingly perform or refuse to perform any act in order to
deliberately thwart the execution of city ordinances, rules or
regulations or the achievement of official ciry programs.
(b) No officer, advisory board member or city employee shall knowingly
represent, directly or indirectly, any person, group or business entity:
(1) Before the city council or any department, agency, board or
commission of the city;
(2) In any action or proceeding against the interests of the city or
in any litigation in which the city or any department, agency,
board or commission thereof is a party; or
(3) In any action or proceeding in the municipal courts of the city
which was instituted by a city officer or employee in the course
of his or her official duties, or a criminal proceeding in which
any city officer or employee is a material witness for the
prosecution.
(c) The restrictions in this section do not prohibit the following:
A city employee, officer or advisory board member (other than city
council), or his or her spouse, appearing before the city council or a
city department, agency, board or commission to represent himself
or herself in a matter affecting his or her property; provided,
however, that no such person, or his or her spouse, shall appear
before the board or commission of which he or she is a member; or
, ageney,
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(d) The restrictions in this section do not apply to business associates of
officers, employees or advisory board members, but only personally to the
officers, employees and advisory board members themselves.
Sec. 2-304. Disclosure of interest.
(a) If any city officer, employee or advisory board member has a
substantial interest in a business entity or real property involved in any
8
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decision pending before such officer, employee, or advisory board member,
or the body of which he or she is a member, such officer, employee, or
advisory board member shall disclose such interest as provided in
subsection (d) below and shall not, except as provided in subsection (b)
below, discuss the substance of the matter at any time with any other
member of the board of which he is a member or any other body which will
vote on or otherwise participate in the consideration of the matter.
(b) If any of the following interests or relationships are involved in any
decision pending before any city officer, employee, or advisory board
member, or the body of which he is a member, such officer, employee, or
advisory board member must disclose such interest or relationship as
provided in subsection (d) and, in the case of an interest described in
subsection (b)(6), as provided in subsection (e), subsection (0, or subsection
(g) below, but he shall be permitted to vote on and participate in the
consideration of such matter:
(1) A decision concerning a bank or other financial institution
from which the officer, employee, or advisory board member
has a home mortgage, automobile loan, or other installment
loan, if the loan is not currently in default, was originally for a
term of more than two years and cannot be accelerated except
for failure to make payments according to the terms thereof,
(2) A decision concerning a bank or other financial institution in
which the officer, employee, or advisory board member holds a
savings account, checking account or certificate of deposit and
which is fully insured by the U.S. government or an agency
thereof,
(3) A decision concerning a business entity with which the officer,
employee, or advisory board member has a retail or credit card
account;
(4) A decision concerning the approval of substitution of collateral
by a city depository bank;
(5) A decision concerning real property in which the officer,
employee or advisory board member has a substantial interest
if it is not reasonably foreseeable that such decision would
have a special economic effect on the value of the property,
distinguishable from the effect on the public (see § 171.004,
Texas Local Government Code).
(6) A relationship between a city officer, advisory board member
or employee and a person who has contracted with the city or
9
.127
is considering doing business with the ciry, if the city officer,
advisory board member, employee, or family member of the
ciry officer, advisory board member or employee has received
one or more gifts from a person who has contracted with the
city or with whom the city is considering entering into a
contract and the gift(s) have an aggregate value of more than
$250.00 in the 12-month period preceding the date the person
becomes aware of a contract with the city or that the city is
considering entering into a contract with the person. This
shall not apply to gifts given as a political contribution as
defined by the election code, gifts given by a family member of
the person accepting the gift, or gifts of food, lodging,
transportation or entertainment accepted as a guest.
(c) If the following relationship exists between any city officer, advisory
board member, employee or family member of a city officer, advisory board
member or employee, such officer, advisory board member or employee
must disclose such interest as provided in subsection (e), subsection (0, or
subsection (g) below and shall not, in accordance with subsection (a), discuss
the substance of the matter at any time with any other member of the board
of which he or she is a member or any other body which will vote on or
otherwise participate in the consideration of the matter. A relationship shall
exist if the ciry officer, advisory board member, employee, or family member
of the city officer, advisory board member or employee receives taxable
income, other than investment income, that exceeds $2,500.00 from a person
who contracts with the city or with whom the city is considering entering
into a contract if such income was received during the 12-month period
preceding the date the city officer, advisory board member or employee
becomes aware of the existing or potential contract.
(d) A city officer, employee or advisory board member shall disclose the
existence of any substantial interest in a business entiry or real property
involved in any decision pending before such officer, employee or advisory
board member, or the body of which he is a member. To comply with this
paragraph, a city officer or advisory board member shall, prior to any
discussion or determination of the matter, either file an affidavit of
disclosure as required by § 171.004 of the Texas Local Government Code or,
if not so required, shall publicly disclose in the official records of the body or
of the city secretary the nature of the interest. To comply with this
paragraph, a city employee shall notify his or her superior, and the director
of human resources in writing of the nature of any substantial interest he
may have in a business entity or real property which would be affected by an
exercise of discretionary authority by the city employee. The employee's
superior shall assign the matter to another employee.
10
I - c..
(e) A council member or the city manager shall disclose a relationship as
defined in subsections (b)(6) and (c) that exists between the council
member, the city manager or family member of the council member or city
manager with a person who enters into a contract the city or with whom the
city is considering entering into a contract by filing a conflicts disclosure
statement with the city secretary as required by § 176.003 of the Texas Local
Government Code. The disclosure statement form is available from the city
secretary or by visiting www.ethics.state.tx.us/whatsnew/conflict forms.
This disclosure shall be filed not later than 5:00 p.m. on the seventh business
day after the date on which the council member or the city manager becomes
aware of the existence of a relationship as defined in subsections (b)(6) and
(c).
(o An advisory board member shall disclose a relationship as defined in
subsections (b) (6) and (c) that exists between the advisory board member,
or family member of the advisory board member with a person who enters
into a contract with the city or with whom the city is considering entering
into a contract by filing a written statement with the city secretary on a form
promulgated by the city secretary for that purpose. This statement shall be
filed not later than 5:00 p.m. on the seventh business day after the date on
which the advisory board member or employee becomes aware of the
existence of a relationship as defined in subsections (b)(6) and (c).
(g) An employee of the city shall disclose a relationship as defined in
subsections (b)(6) and (c) that exists between the employee, or family
member of the employee, with a person who enters into a contract with the
ciry or with whom the city is considering entering into a contract by filing a
written statement with the director of human resources on a form
promulgated by the human resources department for that purpose. This
notification shall be provided not later than 5:00 p.m. on the seventh
business day after the date on which employee becomes aware of the
existence of a relationship as defined in subsections (b)(6) and (c).
Sec.2-305. Enforcement.
(a) The city council shall have the primary responsibility for the
enforcement of this Article as it relates to officers and members of city
boards, commissions, and committees. The City Manager shall have the
primary responsibility for the enforcement of this Article as it relates to
employees. The city council may direct the city attorney to investigate any
apparent violation of the code by an officer or member of city boards,
commissions, and committees or it may employ or appoint any qualified
attorney to investigate any violation or series of violations of this code by any
officer or member of city boards, commissions, and committees.
11
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(b) Any person who believes that a violation of by an officer or member of
city boards, commissions and committees of any portion of the code has
occurred may file a complaint with the city council who may then proceed as
provided in subsection (a) above. Any person who believes that an employee
has violated any portion of the code must follow procedures as identified in
the City's Personnel Policies and Procedures manual. However, nothing in
this code shall be construed to prevent complainants from instituting direct
legal action through the appropriate judicial authority.
Sec. 2-306. Advisory opinions.
(a) Where any officer, employee or advisory board member has a doubt
as to the applicability of any provision of this article to a particular situation,
or as to the definition of terms used in this article, he may apply to the city
attorney for an advisory opinion. The officer, employee or advisory board
member shall have the opportunity to present his interpretation of the facts
at issue and of the applicability of provisions of this article before such
advisory opinion is made.
(b) Until amended or revoked, any advisory opinion shall be binding on
the city, the city council, and the city attorney in any subsequent actions
concerning the public officer, employee or advisory board member who
sought the opinion and acted on it in good faith, unless material facts were
omitted or misstated in the request for the advisory opinion. Such opinion
shall not be binding in any action initiated by any private citizen.
Sec. 2-307. Distribution of copies of article.
Each officer, employee and advisory board member of the ciry, elected,
hired or appointed, shall be furnished a copy before entering upon the duties
of his office or employment and shall sign a written statement
acknowledging receipt of the copy. A copy of this article shall be furnished to
each officer, employee and advisory board member each year.
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Section 3. That all provisions of the ordinances of the City of Paris, Texas in
conflict with the provisions of this ordinance are hereby repealed, and all other provisions
12
139
of the ordinances of the City of Paris not in conflict with the provisions of this ordinance
shall remain in full force and effect.
Section 4. That the repeal of any ordinance or part of ordinances affected by the
enactment of this ordinance shall not be construed as abandoning any action now pending
under or by virtue of such ordinance or as discontinuing, abating, modifying, or altering
any penalty accruing or to accrue, or as affecting any rights of the municipality under any
section or provisions of any ordinance at the time of passage of this ordinance.
Section 5. That it is the intention of the City Council of the Ciry of Paris that this
ordinance, and every provision hereof, shall be considered severable, and the invalidity or
partial invalidity of any section, clause, or provisions of this ordinance shall not affect the
validity of any other portion of this ordinance.
Section 6. That by a supermajority vote of _ ayes and _ nays, the City Council
voted to suspend the rule requiring two readings before adoption of this ordinance.
Section 7. That this ordinance shall become effective from and after its passage of
the first reading and publication as required by law.
PASSED AND ADOPTED on first and final reading this 10th day of May, 2010.
Jesse James Freelen, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
13
1.1l
Section 7. Introduced and read on first reading on May 10, 2010, at a regular
meeting of the City Council of the City of Paris and read and passed on second reading on
May 24, 2010, at a regular meeting of the City Council of the City of Paris; the same being
two (2) separate regular meetings of the City Council of the City of Paris.
[or]
Section 7. That by a supermajority vote of _ ayes and _ nays, the City Council
voted to suspend the rule requiring two readings before adoption of this ordinance.
Section 8. That this ordinance shall become effective from and after its passage of
the second[first] reading and publication as required by law.
PASSED AND ADOPTED on second and final reading this 24th day of May, 2010.
14
.1.7) r-I
M.,