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HomeMy WebLinkAboutORD 2010-25 - Ethics ORD Revisions 2010AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN,CERTAIN PROVISIONS OF 1 OF •i OF ORDINANCES RELATING TO "ETHICS" INCLUDING CHANGES FORMATTINGTO DEFINITIONS; STANDARDS OF CONDUCT; MAKING PROVIDING A CONFLICTS CLAUSE; PROVIDING A SEVERABILITY CLAUSE;PROVIDING AN EFFECTIVE DATE. WHEREAS, in 2004 the City Council of the City of Georgetown adopted an Ethics Ordinance, which was codified as Chapter 2.20 of the City Code of Ordinances; and WHEREAS, on July 8, 2008, the City Council directed that the members of the City's Ethics Commission work with staff and discuss with interested parties any revisions to the City's Ethics Ordinance; and WHEREAS, on July 28, 2009, the City Council adopted amendments to the Ethics Ordinance reflecting recommended revisions from the Ethics Commission, and WHEREAS, the Ethics Commission reviewed the Ethics Ordinance, as well as the By-laws of the Ethics Commission and the Hearing Procedures, at its meetings on April 7, 2010 and May 12, 2010 and recommended certain revisions to these documents; and WHEREAS, on July 13, 2010, the Ethics Commission presented its recommendations for amendments to the Ethics Ordinance, Bylaws, and Hearing Procedures to the City Council; and WHEREAS, the City Council adopted the suggested revisions to the Ethics Ordinance, Bylaws, and Hearing Procedures. 401r TAEREFORE,BE ORDAIrIED T THE CITY COUNCILOF OF •- • SECTION 1: Existing Chapter 2.20 of the Code of Ordinances of the City of Georgetown is hereby amended to provide as follows. Ethics Ordinance Revisions 20 10 { 0 -ar C•3 M LAI2M:z. nAi tri. A. It is the policy of the City that the proper operation of democratic government requires City Officials to be independent, impartial, and responsible; and that no City Official permit any interest, financial or otherwise, direct or indirect, or engagement in any business, transaction, or professional activity to conflict with the proper discharge of duties in the public interest; that governmental decisions and policies be made in the proper channels of the governmental structure; that public office not be used for illegal or improper personal gain; and that City Officials shall at all times strive to avoid even the appearance of impropriety or partisanship. The City Council shall be maintained as a nonpartisan body. B. This Chapter has four purposes: 1. to establish high ethical standards in official conduct by City Officials; 2. to establish guidelines for ethical standards of conduct for all City Officials; 3. to require disclosure by City Officials of private financial or other interests in matters affecting the City; and 4. to provide discipline for those who violate this Chapter. C. The City recognizes that City Officials are also members of society and, therefore, cannot and should not be without any personal and economic interest in the decisions and policies of government; that City Officials retain their rights as citizens to interests of a personal or economic nature and their rights to publicly express their views on matters of general public interest. It is not the intent of this Chapter to diminish the rights of City Officials as citizens of the community. D. The provisions of this Chapter do not apply to political contributions, loans, expenditures, reports, or regulation of political campaigns or to the conduct of candidates in campaigns. E. This Chapter defines two types of conflicts of interest and treats them differently. A "Substantial Financial Interest" follows Section 171.002 of the Texas Local Government Code, and the provisions Ethics Ordinance Revisions1 10 Page 2 of . : applicable to local Public Officials who have a "Substantial Financial Interest" are set forth in Chapter 171 of the Texas Local Government Code. This Chapter is intended to go beyond the requirements of Chapter 171 of the Texas Local Government Code by addressing "Substantial Economic Interests." An Substantial Economic Interest is more comprehensive than a "Substantial Financial Interest" and covers various kinds of economic benefits that might accrue to a City Official that are not included in the Texas statute. For the purposes of this Chapter the following definitions apply. A. Business Entity means a sole proprietorship, partnership, firm, corporation, holding company, joint-stock company, receivership, trust, or any other entity recognized by law. B. City Official means the Mayor, every member of the City Council, the City Manager, the City Secretary, the City Attorney, and all members of any commission, committee, or board appointed by the City Council. C. Confidential Information means any information that a City Official would be privy to because of the official's position but otherwise is not available to the public under the provisions of the Texas Public Information Act (Tex. Gov. Code ch. 552). D. Economic Benefit means any money, Property, contract rights, sale, lease, option, credit, loan, discount, service, or other tangible or intangible thing of value, whether similar or dissimilar to those enumerated. E. Family Member means the spouse of the City Official or any person related to the Official or Official's spouse in the First or Second Degree of Consanguinity or Affinity as specified by Exhibit "A". F. Gift means 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 G. Income means Economic Benefit received. Ethics Ordinance H. Property means real estate, personal items, equipment, goods, crops, livestock, or an equitable right to income from real estate, personal items, equipment, goods, crops, or livestock. First and Second Degree of Consanguinity or Affinity is defined in Exhibit A, which is attached hereto and incorporated herein for all purposes. J. Source of Income means any business entity, employment, investment, or activity which earned or produced income, including salary, fees, interest, dividends, royalties, or rents, which has been paid to or for the credit of a City Official, or Family Member or which would be taxable to said City Official, or Family Member under the United States Internal Revenue Code, as amended, even though not actually paid or credited. K. Substantial Economic Interest may take several forms. It may be established by a legal or equitable interest in Property, which includes but is not limited to the interest of a stockholder, co-owner, or beneficiary. Substantial Economic Interest may also be established by a fiduciary obligation to Property, which includes, but is not limited to, the interest of a trustee or executor. Substantial Economic Interest may also be established by a contractual right in Property. A City Official and/or Family Member has a Substantial Economic Interest if the City Official and/or Family member has a legal or equitable interest, fiduciary obligation, or contractual right in Property that is more than minimal or insignificant and would be recognized by reasonable persons to have weight in deciding a case or an issue. Service by a City Official as an officer, director, advisor, or otherwise active participant in an educational, religious, charitable, fraternal, or civic organization does not create a Substantial Economic Interest in the Property of that organization. Ownership of an interest in a mutual or common investment fund that holds securities or other assets is not a Substantial Economic Interest in the securities or other assets unless the City Official participates in the management of the fund. A City Official does not have a Substantial Economic Interest in a matter if the economic impact on the City Official is indistinguishable from the impact on the public or on the particular group affected by the matter. L. Substantial Financial Interest means- Ethics Ordinance Page 4 of 17 Ord :0 (1) An interest is a Business Entity if: (a) a City Official or Family Member owns: (i) ten percent (10%) or more of voting stock or shares of the business entity; or (ii) $15,000 or more of the fair market value of the Business Entity; or (b) a City Official or Family Member receives funds from the Business Entity, customer or client that are ten percent (10%) or more of the person's gross income for the previous year (e.g. receives funds from an employer, customer, or client), Me (2) An interest in real Property, if a City Official or Family Member has a legal or equitable interest in the Property with a fair market value of $2,500 or more. . A. -i- ' • •4 1. No City Official may disclose any Confidential Information gained through the official's position concerning Property, operations, policies, or affairs of the City, for gain or advantage in a Substantial Economic Interest or a Substantial Financial Interest of the City Official or the persons identified in Section 2.20.030.C.2.b. of the Conflicts of Interest section of this Chapter. 2. No City Official may use the official's position or City -owned facilities, equipment, supplies, or resources of the City for gain in a Substantial Economic Interest or a Substantial Financial Interest of the City Official, for a political campaign of the Official, or for any of the persons identified in Section 2.20.030 C.2.b. of the Conflicts of Interest section of this Chapter. 3. Except as specifically authorized by City ordinance, no City Official may appear before the body of which the official is a member to represent the City Official or any person identified in Section 2.20.030.C.2.b. of the Conflicts of Interest section of this Chapter. The City Official may designate and be represented by a person of the official's choice in any such matter. B. Gifts 4. No City Official may act as surety for any person or Business Entity that has a contract with the City, or as a surety on any bond required by the City for a City Official. 5. These General Provisions do not prohibit a City Official from representing the City Official's interest in the City Official's owner -occupied homestead before any City body, except the body of which the official is a member. No City Official may solicit or accept any Gift that is offered or given with the intention of influencing the judgment or discretion of such official; or given in consideration of the favorable exercise of the official's judgment or discretion in the past. C. Conflict of Interest 1. Substantial Financial Interest No City Official may vote on or participate in any decision- making process on a matter if the official has a Substantial Financial Interest in the outcome of the matter under consideration. 2. Substantial Economic Interest a. No City Official may vote on or participate in any decision-making process on a matter if the official has a Substantial Economic Interest in the outcome of the matter under consideration. b. To avoid the appearance and risk of impropriety, a City Official may not take any official action that the official knows is likely to affect the Substantial Economic Interests of: i. the City Official's Family Member (See Exhibit «A„ ii. a Business Entity for which the City Official serves as an officer or director or serves in any policy-making position; OrdinanceEthics Page 6 of 17 Ii 0 ► a person or Business Entity from whom, within the past twelve months, the City Official or the official's spouse, directly or indirectly, has solicited, received and not rejected, or accepted an offer of employment; or iv a person or Business Entity from whom, within the past twelve months, the City Official or the official's spouse, directly or indirectly, is engaged in negotiations pertaining to business opportunities. D. DISCLOSURE OF INTEREST AND RECUSAL 1. A City Official who has a Substantial Economic Interest in the outcome of the matter under consideration shall disclose that the official has a Substantial Economic Interest and shall recuse himself/herself from discussion of and voting on the matter. The City Official shall also promptly file an affidavit with the City Secretary disclosing the nature and extent of the conflict, and the affidavit shall be included in the official minutes of the body. 2. A City Official having a Substantial Financial Interest in the outcome of a matter under consideration shall disclose that the official has a Substantial Financial Interest and recuse himself/herself immediately from voting and from the discussion of the matter. The City Official shall also promptly file an affidavit with the City Secretary disclosing the nature and extent of the conflict, and the affidavit shall be included in the official minutes of the body. 2.20.040. ETHICS COMMISSION A. Creation of Ethics Commission 1. This ordinance creates an Ethics Commission that consists of eight (8) members, all of whom must reside within the corporate limits of the City. Each member of the City Council may nominate a citizen from his or her district to serve on the Commission, and the Mayor may nominate one citizen from the City at large. Nominations must be confirmed by a vote of the City Council. Ethics Ordinance Revisions ►0 10 r.• r - :i a. 0 2. A vote to reject a nominee requires a super -majority. Members of the Commission may not hold or be a candidate for any City elected or appointed office at the time of their service on the Commission. B. Terms of Service 1. Except as provided below, members of the Commission shall serve two-year terms. No member may serve more than two consecutive terms. 2. The terms of the initial Commission members shall begin on the day that is one day after the date that the City Council approves the appointment of the first eight (8) commission members. The terms of the initial eight Commission members shall be staggered by members drawing lots at the first Commission meeting such that four (4) members serve until March 1 of the calendar year that is one year following the calendar year that the Commission members were initially appointed, and four (4) members shall serve until March 1 of the calendar year that is two years following the calendar year that the Commission members were initially appointed. Thereafter, all terms shall be for two (2) years. 3. The second and subsequent appointments of members to the Commission shall be staggered and shall be for terms of two (2) years. C. Commission Vacancies 1. All vacancies shall be filled for unexpired terms. 2. Members hold office until their successors have been appointed and continue to hold office after a successor has been appointed for the limited purpose of disposing of all complaints unresolved during that member's term. 3. No member may participate in a decision regarding a complaint for which hearings have commenced prior to his or her appointment. D. Removal of Commission Members In addition to the City Council's powers of removal, members of the Commission may be removed by a majority vote of the City Council for cause. Ethics . ►.0 10 Page .. Ord* o40 io E. Officers 1. The Commission shall elect a Chairperson, Vice - chairperson, and Secretary at its annual meeting. 2. The Vice -chairperson shall conduct meetings in the absence of the Chairperson or in the event of a vacancy in that position. 3. The officers serve one-year terms. F. Quorum Five (5) or more members of the Commission constitute a quorum, but no action of the Commission shall be of any force or effect unless it is adopted by the favorable vote of five (5) or more members. G. Meetings 1. The Commission shall meet when necessary to carry out its responsibilities, but in any event the Commission shall hold an annual meeting during March to elect officers and review this Chapter. 2. The Chairperson or three members may call a meeting provided that reasonable notice is given to each member. Notice of all Commission meetings shall be posted pursuant to the Texas Open Meetings Act. 2.20.050. ROLE OF THE ETHICS COMMISSION A. The Ethics Commission has jurisdiction over ethics complaints involving City Officials. B. The Ethics Commission shall have the authority to review and investigate complaints filed in accordance with this Chapter and issue a written finding of the Commission's determination when appropriate. C. Service on the Ethics Commission does not preclude a member from filing a complaint with the Commission. The Commission member filing the complaint must recuse himself/herself from the Commission procedure. Ethics Ordinance Page 9 of 17 Oro( 0doloods D. The Ethics Commission makes recommendations to the City Council regarding revisions and changes to this Chapter. E. The Ethics Commission may seek any necessary assistance from the City Council and City Manager regarding financial support needed to carry out the Commission's duties. F. If warranted, independent legal counsel, a C.P.A., or other professional advisors may be utilized to advise and assist the Commission and take part in hearings. A. The City Attorney serves as legal counsel to the Ethics Commission. When complaints are filed relating to the Mayor, City Council members, City Manager, City Attorney, or other City Official on a matter in which the City Attorney has served as Ethics Advisor, independent legal counsel may be utilized to advise the Commission and take part in its proceedings. B. The City Attorney serves as Ethics Advisor to City Officials. As Ethics Advisor, the City Attorney is available to respond confidentially to inquiries relating to the Ethics Ordinance (this Chapter) and may render advisory opinions on potential conflicts of interest or violation of this section at the request of a City Official. The advisory opinion in any subsequent charges concerning the matter may be used as a defense to an alleged violation of this section unless material facts were omitted or misstated by the person requesting the opinion. C. If a complainant alleges a violation by the City Attorney, the complaint must be filed with the City Secretary, with a copy to the Mayor and the City Manager. 2.20.070. COMPLAINT PROCESS A. Filing 1. Any person who believes that there has been a violation of this Chapter may file a sworn complaint. A complaint alleging a violation of this Chapter must meet the requirements of Section 2.20.070.A.2 and must be filed with the City Secretary. 2. Required Contents of a Complaint. An ethics complaint must be in writing and under oath and must set forth in simple, concise, and direct statements the following: OrdinanceEthics , 010 a. the name of the complainant, b. the street or mailing address and the telephone number of the complainant; C. the name of the person who allegedly committed the violation; d. the position or title of the person who allegedly committed the violation; e. the nature of the alleged violation, including, if possible, the specific rule or provision of this Chapter alleged to have been violated, f. a statement of the facts constituting the alleged violation and the dates on which or period of time in which the alleged violation occurred; and must contain the following: documents or other material available to the complainant relevant to the allegation; ii. a list of all documents or other material relevant to the allegation and available to the complainant, but that are not in the possession of the complainant, including the location of the documents; if known; and a list of all documents or other material relevant to the allegation, but unavailable to the complainant, including the location of the documents, if known. g. If the complaint is based on information and belief, the complaint shall state the source and basis of the information and belief. 3. The complaint must be accompanied by an affidavit stating that the information contained in the complaint is either true and correct or that the complainant has good reason to believe and does believe that the facts alleged constitute a violation of this Chapter. Ethics Ordinance Revisions1 :� oa 4. Upon request, the City Secretary shall provide information to persons about the requirements of a complaint and the process for filing a complaint. B. Confidentiality and Ex Parte Communications 1. No City Official may reveal information relating to the filing or processing of a complaint except as required for the performance of official duties. 2. All documents relating to a pending complaint are confidential, unless they are required to be disclosed under the Texas Public Information Act (Tex. Gov. Code Ch. 552). 3. After a complaint has been filed, and during the consideration of a complaint by 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. This provision does not prevent a member of the Commission to consult with the City Attorney regarding procedure and legal issues. C. Notification 1. A copy of a complaint which meets the requirements of this section shall be promptly forwarded by the City Secretary to the City Attorney, the Ethics Commission, and to the person charged in the complaint. 2. The person alleged in the complaint to have violated this Chapter shall be provided with a copy of the Ethics Ordinance (this Chapter) and informed that: a. within fourteen (14) days of receipt of the complaint, a sworn response must be filed with the City Secretary, b. failure to file a response does not preclude the City Attorney from processing the complaint; C. a copy of any response to a complaint must be provided by the City Secretary to the complainant, who may within seven (7) days respond by sworn writing filed with the City Secretary, who shall provide a copy of the sworn writing to the person charged in the Complaint. Copies of all responses shall also be Ethics Ordinance Revisions 2010 Page 12 of 17 provided by the City Secretary to the Ethics Commission. 3. City Officials have a duty to cooperate with the City Secretary, the City Attorney, and the Ethics Commission in any proceeding under this Chapter. . Preliminary2*20MOw HEARING PROCESS A. - • 1. As soon as reasonably possible, but in no event later than sixty (60) days after receiving a complaint, the Commission shall conduct a Preliminary Hearing. The purpose of the Preliminary Hearing is to determine whether there are reasonable grounds to believe that a violation of this Chapter has occurred. 2. The complainant and the City Official named in the complaint have the right of representation by counsel. 3. 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. 4. The person filing a complaint shall state the alleged violation and describe in narrative form the testimony and other evidence which are presented to prove the alleged violation as stated in the written complaint. 5. The City Official named in the complaint shall have the opportunity to respond but is not required to attend or make any statement. The official may describe in narrative form the testimony and other evidence presented to disprove the alleged violation. If the official agrees that a violation has occurred, the Commission may consider the appropriate sanction. 6. Only members of the Commission may question the complainant, the independent counsel for the Commission, or the City Official named in the complaint. 7. At the conclusion of the Preliminary Hearing one of the following actions shall be taken: Ethics Ordinance Revisionsi 10 Page of O; a. If the Commission does not determine that there are reasonable grounds to believe that a violation of this Chapter has occurred, the complaint shall be dismissed. b. If the Commission determines that there are reasonable grounds to believe that a violation of this Chapter has occurred, it shall schedule a final hearing. c B. Final Hearing If the City Official has agreed that a violation has occurred, the Commission the appropriate sanction. may proceed to determine 1. A 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 named in the complaint. 2. 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 powers of investigation. 3. The issue at a final hearing is whether a violation of this Chapter has occurred. The Commission shall make its determination based on the 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, identify the particular provision(s) of this Chapter which have been violated, and within five (5) working days deliver a copy of the findings to the complainant, the person named in the complaint, and the City Secretary. The City Secretary shall deliver a copy of the findings to the City Council. +•T�>�s�:Ii>!+'%�i'IQj[!7ilk &3,\LlIb>>I[!7 �iiCl7 - Ethics Ordinance Revisions 2010 `, f A. If the Commission determines that a violation of this Chapter has occurred, it shall consider appropriate sanctions. The Commission may receive additional testimony or statements before considering sanctions, but is not required to do so. B. If the Commission determines that a violation has occurred, it may impose the following sanctions. 1. A letter of notification is an appropriate sanction when the violation is clearly unintentional. The letter of notification shall advise the official of any steps to be taken to avoid future violations. 2. A letter of admonition is the appropriate sanction when the Commission finds the violation is minor. 3. A letter of reprimand is the appropriate sanction when the Commission finds a serious violation has been committed. 4. A letter of censure is the appropriate sanction when the Commission finds that a serious violation has occurred or more than one serious violation or repeated serious violations of this Chapter have been committed. C. Copies of all sanction letters issued by the Commission under this section shall be sent to the City Council. D. In addition, when the seriousness of the violation warrants, the Commission may recommend to the City Council the suspension or removal from office of any official serving in a Council -appointed position. E. Except with regard to violations of Chapter 171 of the Texas Local Government Code, a violation by any City Official as designated herein of one or more of the provisions of this Chapter shall not be deemed to be a Class C misdemeanor under the laws of the State of Texas. A. The City Secretary shall make available to each new City Official designated in this chapter, a copy of the text of this Chapter 2.20; Chapter 171 of the Texas Local Government Code pertaining to conflicts of interest; the Texas Open Meetings Act (Tex. Gov. Code ch. 551); and the Texas Public Information Act (Tex. Gov. Code ch. 552) (collectively referred to in this section as the "Ethics Statutes"). OrdinanceEthics B. The City Attorney shall conduct one or more annual seminars devoted to educating City Officials on the meaning and legal significance of the Ethics Statutes. C. Each City Official shall file with the City Secretary a signed affidavit in which the City Official acknowledges the existence of the Ethics Statutes. SECTION 3: All ordinances, parts of ordinances, or resolutions in conflict herewith are expressly repealed. SECTION 4: The invalidity of any section or provision of this ordinance shall not invalidate other sections or provisions thereof. SECTION 5: The Mayor is hereby authorized to sign this ordinance and the City Secretary to attest. This ordinance shall become effective and be in full force and effect in accordance with the provisions of the Charter of the City of Georgetown. READ and APPROVED on first reading this the cP '7 day of , 2010. READ, APPROVED and ADOPTED on second reading this the day of D�A 2010. CITY OF GEORGETOWN Ethics Ordinance Revisions 2010 ATTEST: ca Brettle, City Secretary APPROVED AS TO FORM: Mark Sokolow, City Attorney Ethics Ordinance Revisionsi 10 Page 17 of 17 Ord '`" 1 0 Note: Any person who is related to a City Official or the spouse of a City Official as specified by Exhibit "A" as in the First or Second Degree of Consanguinity or Affinity is a Family Member, for purposes of the Code.