Item 6CItem 6C
19CITY OF
SOUTHLAKE
MEMORANDUM
October 27, 2015
TO: Shana K. Yelverton, City Manager
FROM: Stacey Black, Director of Human Resources
SUBJECT: Ordinance No. 635-C, 2nd Reading, Amending Chapter 2, Article VI,
Code of Ethics and Conduct of the Code of Ordinances
Action
Requested: Ordinance No. 635-C, 2nd Reading, Amending Chapter 2, Article VI,
Code of Ethics and Conduct of the Code of Ordinances of the City of
Southlake to comply with provisions of Chapter 176 of the Texas Local
Government Code as amended by HB 23.
Background
Information: The Code of Ethics and Conduct was originally adopted in 1995 by
Ordinance No. 635. The last revision to the Ordinance was approved in
October 2007. Since that time, changes have been made to State law
affecting certain provisions of the ordinance.
During the last legislative session, HB 23 was adopted into law
amending Chapter 176 of the Local Government Code. HB 23 impacts
the City's Code of Ethics in three primary areas:
1. Employee Disclosure Requirements.
HB 23 amends the definition of "Local Government Officer' to
make it apply to many more city employees. Previously, state
law only required certain individuals employed by the City
disclose a conflict of interest. This change expands the conflict
disclosure requirements to any employee who exercises
discretion in the planning, recommending, selecting or
contracting with a vendor.
Under the City's current Code of Ethics, all employees are
already required to disclose conflicts of interest using a City
created form. With the new law, the disclosure must now be
completed on the "Local Government Officer Conflicts
Disclosure Statement" created by the state. Staff also
recommends employees who do not have conflict of interest file
a written statement indicating such on a form created by the
Item 6C
Page 2
City. This would require that every employee file a written
statement.
2. Definition of "Gift".
HB 23 amends the definition of "gift" to remove the exemption of
lodging, transportation and entertainment accepted as a guest.
It also amends the gift disclosure threshold from $250 to $100
received within a twelve month period. Political contributions,
gifts from family members and food accepted as a guest are
excluded from disclosure requirements.
3. Definition of "Family Relationship".
HB 23 expands the definition of "Family Relationship" to include
relationships to the third degree by consanguinity (blood) or the
second degree by affinity (marriage).
The City's Code of Ethics and Conduct includes language that is
consistent with Chapter 176. This requires the City make changes to
Ordinance 635 to comply with HB 23. A draft of the revisions to
address the new law is attached.
The Ordinance passed on the first reading at the October 20, 2015 City
Council Meeting. There have been no changes since the first reading.
Financial
Considerations: N/A
Strategic Link: Strategic Focus Area: High Performance Management & Service
Delivery; City Value: Integrity
Citizen Input/
Board Review: N/A
Legal Review: Ordinance revisions required by the new laws have been drafted by
the City Attorney.
Alternatives: The ordinance revisions may be accepted as drafted or modified in
consultation with the City Attorney. Additionally, Council may wish to
review other provisions of the ordinance for amendment or identify
language additions.
Supporting
Documents: Amended Ordinance No. 635-C
Code of Ethics and Conducts Draft Policy Document
Staff
Recommendation: City Council approval of the 2nd Reading of Ordinance No. 635-C.
ORDINANCE NO. 635-C
AN ORDINANCE OF THE CITY OF SOUTHLAKE, TEXAS, AMENDING
CHAPTER 2, ARTICLE VI, CODE OF ETHICS AND CONDUCT OF THE
CODE OF ORDINANCES OF THE CITY OF SOUTHLAKE, TO AMEND
SECTION 2-265 DISCLOSURE OF INTEREST TO COMPLY WITH
CHAPTER 176 OF THE TEXAS LOCAL GOVERNMENT CODE;
PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF
ALL ORDINANCES; PROVIDING A SEVERABILITY CLAUSE;
PROVIDING FOR PUBLICATION AS REQUIRED BY LAW; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Southlake, Texas is a home rule city acting under its
charter adopted by the electorate pursuant to article XI, section 5 of the Texas
Constitution and chapter 9 of the Texas Local Government Code; and
WHEREAS, the City Council of the City of Southlake adopted a Code of Ethics
and Conduct applicable to the conduct of officers, employees and board members while
acting in their official capacities in representing the City of Southlake which is codified
as Chapter 2, Article VI of the Southlake City Code; and
WHEREAS, the City Council of the City of Southlake desires to amend Chapter
2, Article VI of the Southlake City Code to reflect changes in Chapter 176 of the Local
Government Code.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF SOUTHLAKE, TEXAS:
SECTION 1.
Chapter 2, Article VI, Section 2-261 "Definitions" of the Southlake City Code is
hereby amended to add the following definitions:
Family Relationship means a relationship between a person and another person
within the third degree by consanguinity or the second degree by affinity, as those terms
are defined by Subchapter B, Chapter 573, Government Code.
Page 1
Gift means a benefit offered by a person, including food, lodging, transportation,
and entertainment accepted as a quest. The term does not include a benefit offered on
account of kinship or a personal, professional, or business relationship independent of
the official status of the recipient.
Vendor means a person who enters or seeks to enter into a contract with the
City. The term includes an agent of a vendor. The term does not include a state
agency except for Texas Correctional Industries.
SECTION 2.
Chapter 2, Article VI, Section 2-265 of the Southlake City Code is hereby amended as
follows..
Sec. 2-265 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 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 (fie) 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 (fie) onrl in the ^-Aso of on
intoroct rlocnrihorJ in ci ihcontinn (b)(6)as preyided in ci 119%Gtinn (e) belew, 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 2 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;
Page 2
(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
Section 171.004, Texas Local Government Code).
(c) If a City Officer, Advisory Board member, or a City employee, or a family member a
City Officer, Advisory Board member, or a City employee, receives one or more
gifts that have an aggregate value of more than $100 in the twelve month period
preceding the date the City executes a contract with the vendor or considers
enterina into a contract with the vendor. the Citv Officer. Advisory Board member.
or the City employee must disclose such gift as provided in subsection (f), (g) or (h),
as applicable, but he shall be permitted to vote on and participate in the
consideration of such matter. This requirement shall not apply to gifts accepted by
the City Council member, the City Manager or City employee if the gift is a political
contribution as defined by Title 15, Election Code, or food accepted as a quest.
(sd) If any the following relationships exist between a vendor and a City Officer,
Advisory Board Member, or a City employee, the City Officer, Advisory Board
Manager or the City employee must disclose the relationship as provided in
subsection (f), (g) or (h) as applicable If tax fA_II9YViRg Telatie ;G„iip eXiciStS htQcv";tQtQ.rnr
anay nni inn;l member, the Git�y Manager nr a family member of a nni innil member nr
0
he hit y l ng�6inh AFthe y MaRager mi icst dicsnln
rterest ass prGvided--OR paragraphFEand 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
Page 3
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(c) If a City Officer, Advisory Board member, or a City employee, or a family member a
City Officer, Advisory Board member, or a City employee, receives one or more
gifts that have an aggregate value of more than $100 in the twelve month period
preceding the date the City executes a contract with the vendor or considers
enterina into a contract with the vendor. the Citv Officer. Advisory Board member.
or the City employee must disclose such gift as provided in subsection (f), (g) or (h),
as applicable, but he shall be permitted to vote on and participate in the
consideration of such matter. This requirement shall not apply to gifts accepted by
the City Council member, the City Manager or City employee if the gift is a political
contribution as defined by Title 15, Election Code, or food accepted as a quest.
(sd) If any the following relationships exist between a vendor and a City Officer,
Advisory Board Member, or a City employee, the City Officer, Advisory Board
Manager or the City employee must disclose the relationship as provided in
subsection (f), (g) or (h) as applicable If tax fA_II9YViRg Telatie ;G„iip eXiciStS htQcv";tQtQ.rnr
anay nni inn;l member, the Git�y Manager nr a family member of a nni innil member nr
0
he hit y l ng�6inh AFthe y MaRager mi icst dicsnln
rterest ass prGvided--OR paragraphFEand 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
Page 3
vote on or otherwise participate in the consideration of the matter_:. A relatieps- i*
droll evict if the member the Gity Manager, nr family member of the ^ni in^il
0 0
.m.e.m.uer nr Gitsy AAananeF PeGeiV--S-t-a-,Xable innnme ether than tinernrt�r^�vm�
that exneeds $2 500 from a nersen vVhe nnntrontcyVith �y er vVithyVhnm t }e
-,�rvrrr-c�Fscr�crrr�vrrv--vvrr�rcrcc�-vrrcrr y-c�r�vr�rr-avrrvrrr
ye MA-Rth peried peree thLLdtte tht-9 GA -1-1 A G MTen�her er Gitsy Mononer
benr-mes aveiare of the existing r)r potential ^r)ntrant
(1) The City enters into a contract with a vendor or is considering entering into a
contract with a vendor and the vendor has an employment or other business
relationship with the City Officer, Advisory Board Member or City employee, or
family member of the City Officer, Advisory Board Member or City employee, that
results in the City Officer, Advisory Board Member, or City employee, or their family
member, receiving taxable income, other than investment income, that exceeds
$2500 during the 12 -month period preceding the date the contract between the City
and the vendor is executed, or the date the City considers entering into a contract
with the vendor; or
(2) The City enters into a contract with a vendor, or is considering entering into
a contract with a vendor, and the vendor has a family relationship with the City
Officer, Advisory Board Member or City employee.
Led) A city officer, employee or advisory board member shall disclose the existence of
any substantial interest in a business entity 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.
(fe) A Cit 4GsQouncil member,__-4)f—the eCity mManager or a City employee who
exercises discretion in the planning, recommending, selecting or contracting of a
vendor shall disclose a relationship as defined in subsections {by{6�JgLand (sd)
that exists between the City/ Council member, the Csity mManager, the City
employee, or family member of the eCouncil mMemberL-&r--cCity n}Manager or
City employee and vendor with a pGFGAA Ate a ..it., .,r
"WhAMr- the —6+tjF eRteFiRg O. R te a -r--n-,T ;z 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. nr by V060tinn Wnenny ethic dote tv i gAUhatgAtQW/nnnfli^t fnrmc
This disclosure shall be filed not later than 5:00 p.m. on the seventh business
Page 4
day after the date on which the City 4GCouncil member,_._ -GT --the Csity mManager,
or the City employee becomes aware of the existence of a relationship as
defined in subsections 3fgJ and (ed).
(gf) An advisory board member shall disclose a relationship as defined in subsections
{ �LLand (sd) that exists between the advisory board member, or family
member of the advisory board member with a PerGnn Whe entero into a reentrant
yVirttchr�e. nit�rr h WrhG'm tchr.e. nit�6nenrsTideFiRg enrteri�Tce a neintront vendor
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 eranpleycebecomes aware of the existence of a relationship as
defined in subsections 3JgJ and (sd).
(gh) An employee of the city who does not exercises discretion in the planning,
recommending, selecting or contracting of a vendor shall disclose a relationship
as defined in subsections {bX6}LqLand (sd) that exists between the employee, or
family member of the employee, with a Person whe enters into a nentront with the
nit y nr With whem the nit y is nensideriRg enteriRg int„ a reentrant vendor 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�L(Land (sd).
SECTION 3.
This ordinance shall be cumulative of all provisions of ordinances and of the
Code of Ordinances of the City of Southlake, Texas, as amended, except where the
provisions of this ordinance are in direct conflict with the provisions of such ordinances
and such Code, in which event the conflicting provisions of such ordinances and such
Code are hereby repealed.
SECTION 4.
Should any sentence, paragraph, subdivision, clause, phrase or section of this
ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall
not affect/ the validity of this ordinance as a whole, or any part or provision thereof other
Page 5
than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the
validity of the Code of Ordinances as a whole.
SECTION 5.
The City Secretary of the City of Southlake is hereby directed to publish this
ordinance to the extent required by law.
SECTION 6.
This Ordinance shall take effect immediately from and after its passage and
approval, and it is so ordained.
PASSED AND APPROVED ON FIRST READING this day of
2015.
Mayor
ATTEST:
City Secretary
PASSED AND APPROVED ON SECOND READING this day of
2015.
Mayor
ATTEST:
City Secretary
Page 6
EFFECTIVE:
APPROVED AS TO FORM AND LEGALITY:
City Attorney
Page 7
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CITY OF
SOUTHLAKE CITY OF SOUTHLAKE CODE OF ORDINANCES
ORDINANCE NO. 635
U9
CHAPTER 2, ARTICLE VI. - CODE OF ETHICS AND CONDUCT
Effective Date: March 21, 1995
Revision Dates: No. 635-A — June 6, 2006; No. 635-B — October 2, 2007; No. 635-C — November 3, 2015
Sec. 2-261. — 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.
Family Relationship means a relationship between a person and another person within the third
degree by consanguinity or the second degree by affinity, as those terms are defined by Subchapter B,
Chapter 573, Government Code.
Gift means a benefit offered by a person, including food, lodging, transportation, and
entertainment accepted as a guest. The term does not include a benefit offered on account of kinship
or a personal, professional, or business relationship independent of the official status of the recipient.
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
Board of Adjustment, the Building Board of Appeals 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:
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Ordinance 635
Code of Ethics and Conduct
Page 2
a. The interest is ownership of 10 percent or more of the voting stock or shares of
the business entity or ownership of either 10 percent or more or $5,000.00 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 10 percent 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 member 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
f. The person is a creditor, debtor or guarantor of the business entity in the amount
of $5,000.00 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 $5,000.00 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 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 ordinance if the person's Family Member
has a substantial interest under this chapter (see Section 171.002, Texas Local
Government Code).
Vendor means a person who enters or seeks to enter into a contract with the City. The term
includes an agent of a vendor. The term does not include a state agency except for Texas Correctional
Industries.
Sec. 2-262. 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
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Ordinance 635
Code of Ethics and Conduct
Page 3
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 ordinances, city Charter provisions and state statutes defining and
prohibiting conflict of interest.
Sec. 2-263. — PENALTIES FOR VIOLATION OF ARTICLE; FORFEITED POSITION; EXEMPTIONS;
INJUNCTIONS.
(a) Except where otherwise provided by state law, it is not the intent of this code that violations
thereof 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 discipline, including forfeiture of his or her office or position. Nothing in this
ordinance shall be construed to prohibit such officer, employee or advisory board member from
being re-elected, reappointed or otherwise rehired to any position forfeited under the provisions
of this code.
(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) 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 City Council.
(e) At the discretion of the City Council, the city attorney shall have the power, where a violation of
the provisions of this article is threatened or has occurred, to bring a civil action or proceeding, at
law or in equity, for a judgment enjoining any violation of the provisions of this code or requiring
the relinquishment of any prohibited interest or the voiding of any such contract or transaction,
taking into account the interests of the city and any third persons who may be injured thereby.
Where the City Council determines that the public interest may best be served by not voiding a
contract or transaction entered into in violation of this code, such contract or transaction may be
enforced and an action or proceeding may be brought against any officer, employee or advisory
board member found in violation of provisions of this code for damages, not to exceed twice the
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Code of Ethics and Conduct
Page 4
damages suffered by the city or twice the profit or gain realized by the officer, employee or
advisory board member, whichever is greater.
Sec. 2-264—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 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 subparagraph 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;
C. Executing and performing any developer's agreement or plat in
compliance with laws and regulations applicable to any person; provided,
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Code of Ethics and Conduct
Page 5
however, that if any city ordinance, rule or regulation allows any discretion
by the appropriate officers or employees of the city 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.
(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 city
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
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Page 6
(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:
(1) 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
(2) A city employee or officer of an employee organization appearing before the City Council
or a city department, agency, board or commission to address employment matters.
(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. 2-265. - 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 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 ( ) 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 (de) a;d, OR the Ga:Cr'f�rnrtenat�cvcrri���r��h���r4�n
PFGVidedOR G61bsestiGR (e)G61sestien (f)nr ci ihcor4iGR(g) bele w, 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;
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(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 Section 171.004, Texas Local Government Code).
c) If a Citv Officer. Advisory Board member. or a Citv emolovee. or a familv member a Citv Officer
Advisory Board member, or a City employee, receives one or more gifts that have an aggregate
value of more than $100 in the twelve month period preceding the date the City executes a
contract with the vendor or considers entering into a contract with the vendor, the City Officer,
Advisory Board member, or the City employee must disclose such gift as provided in subsection
(f), (g) or (h), as applicable, but he shall be permitted to vote on and participate in the
consideration of such matter. This requirement shall not apply to gifts accepted by the Citv
Council member, the City Manager or City employee if the gift is a political contribution as
defined by Title 15, Election Code, or food accepted as a quest.
(d) If any the following relationships exist between a vendor and a City Officer, Advisory Board
Member, or a City employee, the City Officer, Advisory Board Manager or the City employee
must disclose the relationship as provided in subsection (f), (g) or (h) as applicable 1f thp
ci ih6eGtOGR (f) nr ci 1bGeGtinn (g) hole,., 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-_ ATel tiensh,;Tshllexist of the ^ity eff;eer�Tsery beard ,member, empleyee, er
,
honr.moc A,e,Aro 9f tho oXi GtiRg 9r 199te Rti;31 GGRU—an4
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Page 8
(1) The City enters into a contract with a vendor or is considering entering into a contract
with a vendor and the vendor has an employment or other business relationship with the
City Officer, Advisory Board Member or City employee, or family member of the City
Officer, Advisory Board Member or City employee, that results in the City Officer,
Advisory Board Member, or City employee, or their family member, receiving taxable
income, other than investment income, that exceeds $2500 during the 12 -month period
preceding the date the contract between the City and the vendor is executed, or the date
the City considers entering into a contract with the vendor: or
{4-)LZL The City enters into a contract with a vendor, or is considering entering into a contract
with a vendor, and the vendor has a family relationship with the City Officer, Advisory
Board Member or City employee.
{G)LtL A city officer, employee or advisory board member shall disclose the existence of any substantial
interest in a business entity 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.
{d)ffLA ouncil member, the City Manager or a City employee shall disclose a relationship as
defined in subsections 44(3 and (ed) that exists between the City -GCouncil member, the City
Manager, the City employee, or family member of the City sCouncil member,. City Manager
City employee and vendor with a peFspr ,^,hr, or+org; it+„ A PAP
Fa G+ the Gi+„ „r With WhAm the
City is rnncideFinn on+orinn in+n a nnn+r;;l++ 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
nnnnni o+hire c+�+o +v i is/nih�+c noni/nnnflin+ fnrmc This disclosure shall be filed not later than
5:00p.m. on the seventh business day after the date on which the ouncil member the
City Manager or the City employee becomes aware of the existence of a relationship as defined
in subsections { 3Lcj and (sd).
X11, An advisory board member shall disclose a relationship as defined in subsections {}Lcj and
( ) that exists between the advisory board member, or family member of the advisory board
member with a persen-= Who —elte.Fsi^+�GA.tfavt With the--Gity GF=With.m. the G ty!is
Gl1r1SOGIeFiR 1 eRte FiRg ir+„ a r-,eRtr,,.+vendor 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
nr ;p!G e becomes aware of the existence of a relationship as defined in subsections
3Lcj and ( ).
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An employee of the city who does not have sh-all dic^I^&o a relationship as defined in
subsections {b463LcJ and (ed) that exists between the employee, or family member of the
employee, with a FeFGGR W;;Gente.Fs tez, GG,TtraGutV ,i+�eC+ty—G_.F VVthVVhenq the City
Gl1NC1l'i�Y1NI'Y eRte FiRg iRtG , reptraptvendor shall indicate such by filing a written statement with
the Director of Human Resources on a form promulgated by the Human Resources Department
for that purpose. This peti#ieatie.p sh;;ll he pFeyided Pet ate.r th7N 5:00 p.m. nN tlesevent#
Felati9Nchip ;c defoped- iN s b-seetieNc (b)(6) and (G
Sec. 2-266. — ENFORCEMENT.
(a) The City Council shall have the primary responsibility for the enforcement of this code. The City
Council may direct the city attorney to investigate any apparent violation of the code or it may
employ or appoint any qualified attorney to investigate any violation or series of violations of this
code by one or more persons. At the direction of the City Council, the city attorney shall have
the power to investigate any complaint, and to take any action on behalf of the city where such
action is appropriate.
(b) Any person who believes that a violation of any portion of the code has occurred may file a
complaint with the City Council who may then proceed as provided in paragraph A above.
However, nothing in this code shall be construed to prevent complainants from instituting direct
legal action through the appropriate judicial authority.
Sec. 2-267. - ADVISORY OPINIONS.
(a) Where any officer, employee or advisory board member has a doubt as to the applicability of
any provision of this code to a particular situation, or as to the definition of terms used herein, 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 or her interpretation of the facts at issue and of
the applicability of provisions of the code 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. 2-268. - DISTRIBUTION OF COPIES OF ARTICLE.
The city secretary shall cause a copy of this code of ethics and conduct to be distributed to every
officer, employee and advisory board member of the city within thirty (30) days after enactment of this
code. Each officer, employee and advisory board member thereafter elected, hired or appointed shall be
furnished a copy before entering upon the duties of his or her office or employment and shall sign a
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written statement acknowledging receipt of the copy. A copy of the ordinance shall be furnished to each
officer, employee and advisory board member each year.
Sec. 2-269 - EMPLOYEE BUSINESS CODE OF CONDUCT.
The Council hereby directs the City Manager to prepare and bring before the Council for
adoption by resolution, an Employee Business Code of Conduct to be included in the City Personnel
Manual which shall incorporate the provisions of this Code of Ethics and Conduct and proscribe conduct
in accordance with adopted Southlake Values.
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