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item 6Al,lry M auumIaKe, 1exab MEMORANDUM September 25, 2007 TO: Shana Yelverton, City Manager FROM: Kevin Hugman, Director of Human Resources SUBJECT: Ordinance No. 635 -13, 2 " Reading, Amending Chapter 2, Article VI, Code of Ethics and Conduct of the Southlake City Code to amend Section 2 -265 Disclosure of Interest to comply with Chapter 176 of the Texas Local Government Code. Action Requested: City Council consider the attached ordinance, amending Article VI, Code of Ethics and Conduct, of the Southlake City Code to revise Section 2 -265, Disclosure of Interest, to comply with the provisions of Chapter 176 of the Texas Local Government Code as amended in the 2007 Legislative session, and to extend the requirements for disclosure of interest to advisory board members and employees of the City of Southlake. Background Information: Chapter 176 of the Texas Local Government Code relates to disclosure of certain relationships between public officials and businesses that enter into contracts with, or is being considered by the City to enter into a contract with. When the law was enacted, it also allowed for a governmental entity to extend the provisions of the law to "all or a group of employees." The City Council chose to extend the provisions to all employees and the Code of Ethics and Conduct was revised in June 2006 to reflect these requirements. In the 2007 legislative session, several changes were made to Chapter 176 to clarify ambiguities and resolve problems. One change was to amend the wording of "all or a group of employees" to "any employee who has the authority to approve contracts on behalf of the local governmental entity ..." In discussions with the City Council, they indicated that although no longer required by state law, they still desired to keep similar requirements in place for all city employees and for advisory board members. The proposed changes to Ordinance No. 635, Code of Ethics and Conduct include: I . Changes to reflect the applicability of Chapter 176 to City Council members and the City Manager; 2. Addition of paragraphs F and G in Section 4.0 "Disclosure of Interest" to provide for disclosure of certain relationships by advisory board members and employees similar to that required by Chapter 176 of Council members and the City Manager; 3. Clarifies requirement to file a disclosure statement if income from a business contracting with the City, or one whom the City is considering contracting with, exceeds $2,500, excluding investment income, in the 12- month period preceding the date the individual becomes aware of the existing or potential contract; Shana Yelverton, City Manager September 25, 2007 Page 2 4. Exempts gifts from family members and gifts given as political contributions as defined by the Election Code, in determining the maximum of $250 in gifts allowed during the 12 -month period preceding the date the individual becomes aware of the existing or potential contract. It should be noted that the requirements of Chapter 176 pertain to disclosure of certain business relationships, but does not affect an elected official's right to vote on a contract under these circumstances. An elected official's participation in discussions or voting on such a business relationship is governed by Chapter 171 of the Texas Local Government Code, which defines "conflicts of interest' ' and "substantial interest." These requirements remain unchanged in Ordinance No. 635, Code of Ethics and Conduct. Financial Considerations: None. Citizen Input/ Board Review: N /A. Legal Review: The proposed ordinance has been reviewed by the City Attorney. Alternatives: Changes as may be desired by City Council. Supporting Documents: Ordinance No. 635 -B Revised Code of Ethics and Conduct policy (redline, strikeout version) Staff Recommendation: City Council approve Ordinance No. 635 -13, amending Chapter 2, Article VI, Code of Ethics and Conduct of the Southlake City Code to amend Section 2- 265 Disclosure of Interest to comply with Chapter 176 of the Texas Local Government Code. Staff Contact: Kevin Hugman, Director of Human Resources (817 -748 -8193) ORDINANCE NO. 635 -B 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 -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 Page 1 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 paragraph D below and shall not, except as provided in paragraph 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 paragraph D and, in the case of an interest described in Section B.(8), as provided in paragraph E, paragraph F, or paragraph 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 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; (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 Page 2 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). (6) A relationship between a city officer, advisory board member or employee and a person who has contracted with the City or is considering doing business with the City, if the city officer, advisory board member, employee, or family member of the city 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 in the twelve (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 paragraph E, paragraph F, or paragraph G below and shall not, in accordance with Paragraph 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 city 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 from a person who contracts with the City or with whom the City is considering Page 3 entering into a contract if such income was received during the twelve 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 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 Section 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. E. A council member or the City Manager shall disclose a relationship as defined in Section 4, paragraphs 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 Section 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.uslwhatsnew /conflict forms This disclosure shall be fled not later than 5:00p.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 Section 4, paragraphs B(6) and C. Page 4 F. An advisory board member shall disclose a relationship as defined in Section 4, paragraphs 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 Section 4, paragraphs B(6) and C. G. An employee of the city shall disclose a relationship as defined in Section 4, paragraphs 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 City 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 Section 4, paragraphs B(6) and C. SECTION 2. 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. Page 6 SECTION 3. 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 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 4. The City Secretary of the City of Southlake is hereby directed to publish this ordinance to the extent required by law. SECTION 5. This Ordinance shall take effect immediately from and after its passage and approval, and it is so ordained. PASSED AND APPROVED on the 1st reading the day of , 2007. MAYOR ATTEST: CITY SECRETARY PASSED AND APPROVED , 2007. on the 2nd reading the day of MWO ATTEST: CITY SECRETARY APPROVED AS TO FORM AND LEGALITY: CITY ATTORNEY Page 6 City of Southlake Personnel Policies Section Rules and Regulations Topic: Code of Ethics and Conduct Effective Date: March 21, 1995 Approved By: ORDINANCE NO. 635 Revision Date: j•Yne moo 1.0 DECLARATION OF POLICY It is hereby declared to be the policy of the City of Southlake 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 or her 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. Code of Ethics and Conduct Revised: Ordinance No. 635 -BA Effective: june 6, 2006 Page 2 of 13 2.0 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 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. A. A person has a substantial interest in a business entity if: (1) The interest is ownership of ten (10) percent or more of the voting stock or shares of the business entity or ownership of either ten (10) percent or more or five thousand dollars ($5,000.00) or more of the fair market value of the business entity (see Section 171.002, Texas Local Government Code); or Code of Ethics and Conduct Revised: Ordinance No. 635 -BA Effective: jane 6, 2986 Page 3 of 13 (2) Funds received by the person from the business entity exceed ten (10) percent of the person's gross income for the previous year (see Section 171.002, Texas Local Government Code); or (3) The person holds a position of member of the board of directors or other governing board of the business entity; or (4) The person serves as an elected officer of the business entity; or (5) The person is an employee of the business entity; or (6) The person is a creditor, debtor or guarantor of the business entity in the amount of five thousand dollars ($5,000.00) or more; or (7) 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 five thousand dollars ($5,000.00) or more. B. A person does not have a substantial interest in a business entity if: (1) The person holds a position as a member of the board of directors or other governing board of a business entity; and {2) The person has been designated by the City Council to serve on such board; and (3) The person receives no remuneration, either directly or indirectly, for his or her service on such board; and {4) The primary nature of the business entity is either charitable, nonprofit or governmental. C. 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 two thousand five hundred dollars ($2,500.00) or more (see Section 171.002, Texas Local Government Code). D. A person has a substantial interest under this ordinance if the person's Family Member has a substantial interest under this ordinance (see Section 171.002, Texas Local Government Code). Code of Ethics and Conduct Revised: Ordinance No. 635 -BA Effective: 3une 6, 2896 Page 4 of 13 3.0 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 4 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 Code of Ethics and Conduct Revised: Ordinance No. 635 -BA Effective: Page 5 of 13 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, 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. Code of Ethics and Conduct Revised: Ordinance No. 635 -BA Effective: 3aie 6,2806 Page 6of13 (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 parry; 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: (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 Code of Ethics and Conduct Revised: Ordinance No. 635 -BA Effective: X 0" Page 7 of 13 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. 4.0 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 paragraph D below and shall not, except as provided in paragraph 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 paragraph D and, in the case of an interest described in Section B.(6), as provided in paragraph E ara a h F or ara a h 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 2 years and cannot be accelerated except for failure to make payments according to the terms thereof; Code of Ethics and Conduct Revised: Ordinance No. 635 -BA Effective: 1we-&,-2406 Page 8 of I3 (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 Section 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 is considering doing business with the City, if the city officer, advisory board member, employee, or family member of the city 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 Ci is considering entering into a contract and the gift(s) have an aggregate value of more than $250 in the twelve (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 iven 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 paragraph E ara ra h F or ara ra h G below and shall not, in accordance with Code of Ethics and Conduct Revised: Ordinance No. 635 -BA Effective: j uRe 6, 2006 Page 9 of 13 Paragraph 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 city 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 - from a person who contracts with the City or with whom the City is considering entering into a contraci business with the City for the sale er puf6hase of pr if such income was received daring the twelve month period preceding the date the eit, officereoun j' memo g, 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 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 Section 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 employe The-employee's and sueh superior shall assign the matter to another employee. E. A ek effieer-, advisory board ffieffibeir or employee council member or the City Manager shall disclose a relationship as defined in Section 4, paragraphs B(6) and C that exists between the f er °�� , '�•ra member, en:Yl eye° eouncil member, t e C� Mana er or family member of the effiEer, a&i b ^a=d council member or Cijy Mana erer employee with a person who enters into a contract the City or with whom the City is considering entering ntering into a contract by filing a conflicts disclosure statement with the City Secretary as required by Section 176.003 of the Texas Code of Ethics and Conduct Revised: Ordinance No. 635 -8A Effective: june 6, 2006 Page 10 of 13 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 5:00p.m. on the seventh business day after the date on which the ^f^ °r, ^& iser -y b ^ °~ council member or the City Manager or employee becomes aware of the existence of a relationship as defined in Section 4, paragraphs B(6) and C. F. An advisory board member shall disclose a relationship as defined in Section 4, araaraphs 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 Qty is considering entering into a contract by filing written statement with the Qj.V Secreta on a form promulgated by the Ci Secreta for that a ose. 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 Section 4, para raphs B() and C. G. An employee of the 613 shall disclose a relationship as defined in Section 4 ara ra hs B(6) and C that exists between the emplovee, or family member of the emplovee, with a person who enters into a contract with the City or with whom the City is considering entering into a contract by a written statement with the Director of Human Resources on a form. promulgated by the Fluman Resources Department for that impose. This notification shall be provided not later than 5:00 p.m. on the seventh business day after the date on which emplovee becomes aware of the existence of a relationshib as defined in Section 4, paragraphs B(6) and C. Code of Ethics and Conduct Revised: Ordinance No. 635 -BA Effective: june 00 6 Page 11 of 13 5.0 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. 6.0 EMPLOYEE BUSINESS CODE OF CONDUCT A. 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. 7.0 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, Code of Ethics and Conduct Revised: Ordinance No. 635 -BA Effective: June- 6 -2VG6 Page 12 of 13 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. 8.0 PENALTIES; 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 code, 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 code any conduct found to constitute a violation by an officer, employee or advisory board member if it finds that the enforcement of this code 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 code, or which involved the violation of a provision of this code, 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 code 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 damages Code of Ethics and Conduct Revised: Ordinance No. 635 -BA Effective: a °, r� Page 13 of 13 suffered by the city or twice the profit or gain realized by the officer, employee or advisory board member, whichever is greater. 9.0 DISTRIBUTION OF CODE OF ETHICS AND CONDUCT 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 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.