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HomeMy WebLinkAbout020781 ORD - 09/19/1989As Passea Third Reading AN ORDINANCE AMENDING THE CODE OF ORDINANCES, CHAPTER 2, ADMINISTRATION, BY REPEALING ARTICLE V, CODE OF ETHICS, IN ITS ENTIRETY, EXCEPT SEC. 2-317 WHICH IS HEREBY RENUMBERED AS SEC. 2-40, AND SUBSTITUTING THEREFOR A NEW ARTICLE V, CODE OF ETHICS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. Th Administration, is hereby Ethics, in its entirety, renumbered as Sec. 2-40, Code of Ethics, to read as at the Code of Ordinances, Chapter 2, amended by repealing Article V, Code of except for Sec. 2-317 which is hereby and substituting therefor a new Article V, follows: CODE OF ETHICS DIVISION I. RULES OF CONDUCT Sec. 2-311. Standards. The following Rules of Conduct apply to all council members, board members, and employees: Special Privileges 1. You shall not use your office for private advancement or gain or to secure special privileges or exemptions for yourself or others. 2. You shall not grant any special consideration, advantage to any person or group beyond that which is others generally. treatment or available to 3. You shall not use city facilities, personnel, equipment or supplies for purposes unrelated to the interests of the city, except to the extent such are lawfully available to the public. 4. Unless you are a council member, you shall not use the prestige of your position with the city on behalf of any political party or cause. Gifts 5. You shall not accept or solicit any money, property, service or other thing of value by way of gift, favor, loan or otherwise that might reasonably tend to influence you in the discharge of your official duties or which you know or should have known was offered with the intent to influence or reward your official conduct. 002 RLSit'D ZOO .A;To aug ggTM goezquoo Aue uT gsazaquT TPTgUegsgns P anew qou TTPgs noA 'zaqu[aui TTounoo P sy •sT szaquaw TTOunop zo; suoTsTnozd s oa AITO egg uodn ;TpaaosT p q T3aa gPgq gOnpuoO aaggo ao apngrdznq Tpzouz buTnTonuT aouEautapsTl 'a1Ta0 AuoTa3 Aue uT abebua qou TTPgs noA •bT •smeaboad A3TO TPTOT;;o AuP ;o guautanaTgoe aug JO suoTgeinbaz JO SMPT TeOoi ao agegs 'Tezapa3 ;o uorgnoaxa au; 4a2M44 ATagezagTTap oq zapzo UT qoe Aue uzzo;zad og asn;aa ao 11zo;aad ATbuTMoux qou TTPuS n0A £T -Agro aqg 3o SSTP;;P ao Agzadozd agq Aiaszanpe pinoo geuq UoTgeurzo;uT asoTosTp qou 1Tegs noj •Z1 40933e ngT3 aug oq asaanpy suoTlOy •TTounoo AgTo auq Aq pazTzougne ao MPT Aq papTnozd aq Aeut SP gdaoxa A;TO agq Ueug zaugo aoanos AUe uroz; saoTnzas TPTOT;;o znoA 103 uo1gesuadUo0 ao aa; Aue 9ATaoaz qou TTPgs noX 'TT •saTgnp TPTOT33O aragq 3o asznoo aqg uT saaAoidua ao saa0r330 Agro Aq pagngTgsuT SPM gOT1M Agro am; ;o sgzno0 TedToTunu agq uT burpaaooad ao uoTgoe UP uT dnozb ao uoszad agenrad zaggo Aue quasaadaz you TTPgs noA •O1 P ST A;To 944 1OTtM uT uoTgebigii ALM UT JO A1TO aqg 3o auq 04 asaanp2 ao gsuTebe buTpaaoozd ao uoTgoe Aue uT ao dnozb 'uosaad agenrad aag40 Aue quasaadaz you iTegs •Agaed gsaaagUT gsaaaquT no7 •6 -Agro aug uodn grpaaOsrp 40a13aa ao 'saTgnp znoA 3o aoueutzo;zad egg uT quambpnC guapuadapur znoA aTeduir 'saTgnp TeTOT;3o znoA 3o abaegosrp zadoad pue Ting au; InTM aTgTgedIooUT aq ao ;OTT;u00 TTTM g3TuM quautXoiduta JO sar;TAT;Oe apTsgno Aue uT abebua you 'Tugs noA 'g •zaggeu aug uo uoTssnOsip Aue uT e;edToTgaed you pue uoTsTOap JO 940A Aue 1oa3 uTegsge pue zaggeut eq4 uT gsazaquT anoA 3o aznsoTosrp uag;TaM e axeuz TTPgs noA 'saTgnp ieToT;3o znoA ;o aoueuuo;lad 944 uT noA azo;eq samoo uor1M A;To agq buTnTonuT UoTgoesuezq ao g0eaquo0 e uT gsaaaquT TeTquPgsgns AUP ao gsazagUT UP aneg saAT4eTaa znoA 3o 9110 ao noA quana agq UI •L gsazagui ;o sgofT;uoj .Agro agq Aq AzoquanuT pup aouegdaooe TeTOT33o 903 zabeueu[ AgTo agq oq UPOT ao 43Tb eons aanTTap Aigduozd JTegs noA 'A;To alp. ;o 3Tewaq uo SaOTAaas JO Agaadozd 3o UeoT ao g;Tb Aue anTa0aa noA quana agq UI •g buTPPell paTgy passed sy As Passer. Third Reading 16. As a council member, you shall not represent or appear on behalf of the private interest of others before any board, commission or committee of the city. (This rule does not prohibit you from appearing on behalf of your own financial interest even though others may have the same or a similar interest.) 17. As a council member, you shall not give any orders to any employee except through the city manager as provided by the city charter. Provisions for Board Members 18. As a board member, you shall not have a substantial interest in any contract with the city in which your board or commission, or the city department related thereto, has jurisdiction. 19. As a board member, you shall not represent or appear on behalf of the private interest of others before your board, commission or committee, the city council, or any board which has appellate jurisdiction over your board, commission or committee, concerning a matter which is within the subject matter jurisdiction of your board. (This rule does not prohibit you from appearing on behalf of your own financial interest even though others may have the same or a similar interest.) Provisions for Employees 20. As an employee you shall not have an interest in any contract with the city. 21. As an employee, you shall not, within twelve months after leaving city employment, represent any other person or organization in any formal or informal appearance with the city council or any other agency or employee of the city concerning a project for which you had responsibility as an employee. 22. As an employee, you shall not represent or appear on behalf of the private interest of others before the city council or any board, commission or committee of the city. (This rule does not prohibit you from appearing on behalf of your own financial interest even though others may have the same or a similar interest.) Sec. 2-312. Definitions. The following definitions apply to the above Rules of Conduct. board member - a member of any board, commission or committee of city, including the board of any corporation created by the city. employee - any person employed by the city, service or not, including part-time employees corporation created by the city. interest - any direct or indirect pecuniary or contract or transaction other than: 002 3 the whether under civil and employees of any material benefit in a (3) an interest which is shared by and available persons similarly situated, or a remote or incidental interest which would decrease materially due to the action of the than $200 in value, or an interest of a subcontractor which contractual relationship with the city, is and reasonable compensation, and is not subterfuge to circumvent the code of ethics. As Passea Third Reading to all other not increase or city or is less has no direct receiving fair operating as a (4) an interest in real property acquired by the city which could otherwise be accomplished only through eminent domain provided that the property must be acquired for a public purpose and just compensation must be paid under the Texas Constitution after obtaining an independent appraisal. substantial interest - any interest which has a value of $5,000.00 or more or represents 10 percent or more of a person's gross income during the most recent calendar year. relative - spouse, father, mother, brother, sister, son, daughter, spouse's children, father in law, mother in law, brother in law, sister in law, son in law, daughter in law and adoptive relationships being treated the same as natural relationships. Sec. 2-313. Effect of Violation. A violation of these Rules of Conduct shall subject the council member, board member or employee to appropriate disciplinary proceedings, but such violation shall not render the action of the city voidable by the city unless the action would not have been approved without the vote of the person who violated the Rules of Conduct. Sec. 2-314. Exceptions to Abstention Requirement. The requirement that a council member or board member abstain from voting on a matter or participating in discussion as contained in Rule 7 of the Rules of Conduct shall not apply in the following situations, provided that such person has complied with the requirements of written disclosure of the interest: (a) In the event a majority of the members of the council or the board, commission or committee have filed a written disclosure of a conflict of interest on the matter and would be required to abstain; or (b) On the final approval of a budget when from a separate vote taken on the particular the conflict of interest and action or that resolved. 002 4 the person has abstained budget item pertaining to particular item has been As Passeo Third Reading Sec. 2-315. Freedom of Expression. Nothing contained in the code of ethics shall abridge the right of any citizen, whether or not a council member, board member or employee, to exercise his or her right of expression under the U.S. or Texas Constitutions. Sec. 2-316 - 2-319. Reserved. DIVISION II. ETHICS COMMISSION. Sec. 2-320. Establishment. An ethics commission is created and shall consist of nine (9) members. The city council shall solicit nominations for the ethics commission from a wide variety of professional and community organizations in the city. Interested individuals may also submit their names for consideration. Members of the commission may not hold or be a candidate for any city elected or appointed office. The city council shall appoint the members of the ethics commission by a two-thirds vote of the full council. Sec. 2-321. Terms. Members shall hold office for three-year terms commencing October 1. In order to establish staggered terms, however, the initial terms of three members shall be one year, and the initial terms of another three members shall be two years. The persons serving such shorter terms shall be determined by lot. No holding over is permitted except as expressly provided in this code of ethics. Sec. 2-322. Removal. In addition to the council's usual powers of removal, members of the commission may be removed by a majority of the council for cause. In considering a complaint filed with the city secretary or on its own initiative, the council may follow the procedures hereinafter set forth regarding the disposition of such alleged violations. Sec. 2-323. Vacancies. All vacancies shall be filled for the unexpired terms. A member shall hold office until his successor has been appointed, and shall continue to hold office after his successor has been appointed for the limited purpose of disposition of all complaints filed and for which presentation of evidence was commenced during that member's term. Sec. 2-324. Chairperson; quorum. The commission shall elect a chairperson and a vice -chairperson. The vice -chairperson shall act as chairperson in the absence of the chairperson or in the event of a vacancy in that position. The officers of the commission shall serve one-year terms. A majority of the members of the commission shall constitute a quorum. 002 5 As Passey Third Reading Sec. 2-325. Meetings. The commission shall have such meetings as may be necessary to fulfill its responsibilities. The chairperson or any three members may call a meeting provided that reasonable notice is given to each member. The commission shall comply with the Texas Open Meetings Act. Sec. 2-326. Duties. (a) The commission shall, in addition to its other duties: (1) Prepare and publish pamphlets and other materials explaining the duties of individuals subject to the code of ethics. Such materials shall include instructions to the public about how to obtain information such as financial disclosures, campaign reports, and the like from the city. (2) Review all statements and reports filed with the city. (3) Annually review the code of ethics and make appropriate recommendations to the city council after conducting a public hearing on any such recommendations. Review all public opinions related to the code of ethics that are issued by the city attorney. Prepare and disseminate a report listing all campaign contributions and expenditures for each candidate within 30 days following the deadline for filing the last campaign finance reports for each city council election. For the purposes of this provision, a general election and run-off election shall be considered as a single city council election. (b) The commission may: (1) Adopt rules of procedure for the conduct of its business and to carry out the provisions of the code of ethics, consistent with the code of ethics and other applicable law. (2) Prepare reports and studies to advance the purposes of the code of ethics. (3) Request the city council and city manager to provide such assistance as it may require in the discharge of its duties. Sec. 2-327. Staffing. The commission shall be assigned staff by the city attorney to assist in its duties. The commission shall also designate independent legal counsel, and when complaints are filed, such independent legal counsel may be utilized to advise the commission and participate in hearings. 002 6 As Passea Third Reading Sec. 2-328. Legal Opinions and Services. (a) Any council member, employee or board member may submit a written request to the city manager for an opinion concerning the meaning or effect of any section, word, or requirement of the code of ethics as it affects such official, employee or board member. The city manager shall submit such request to the city attorney, who will promptly issue a written opinion to the city manager. Such opinion shall be filed with the city secretary with a copy to the requesting person shall constitute an authoritative determination of the meaning of this ordinance, until amended by the council. (b) If a complaint is filed with the ethics commission about any specific action, omission, or alleged conflict of interest by the charged person which has been the subject, in whole or in part, of a city attorney's opinion, the independent legal counsel shall act as the commission's attorney on said complaint. Sec. 2-329. Jurisdiction of Commission. The ethics commission shall have jurisdiction of complaints involving any "city official" which includes the mayor and members of the city council, city manager, deputy and assistant city managers, city secretary, city attorney, department heads, and municipal court judges (including substitute judges), and all members of any board, commission or committee of the city, including the board of any corporation created by the city. Sec. 2-330. Complaints. (a) A sworn complaint alleging violation of the code of ethics shall specify the provisions of the Rules of Conduct alleged to have been violated and facts alleged to constitute the violation., (b) Upon the sworn complaint of any five people filed with the city secretary's office, the commission shall consider possible violations of the code of ethics by city officials and board members and former city officials and board members other than members of this commission. (c) A complaint alleging a violation must be filed with the city secretary within six months from the date the complainants knew or should have known of the action alleged as a violation, and not afterward. (d) Not later than three working days after the city secretary receives a sworn complaint, he or she shall acknowledge receipt to the complainants, and provide a copy to the city attorney, the commission and the person complained against. Not later than 30 days after receipt of a complaint by the city secretary, the commission shall notify in writing the persons who made the complaint and the person complained against whether it intends to schedule a hearing or take other action concerning the complaint. The person complained against shall have ten (10) days to submit a written response to the complaint 002 7 As Passeu Third Reading prior to the commission deciding whether to hold a hearing. The complainants shall have one opportunity within 15 days of any denial of their original complaint by the commission to amend their complaint and refile the same with the commission. (e) Legal fees incurred by the complainants, the Commission, and the party complained against, in an amount determined reasonable by the Commission, shall be paid by the unsuccessful party if the Commission determines such party's complaint or defense was groundless. "Groundless" means (1) without basis in fact, or (2) not warranted by law or reasonably arguable interpretation thereof. The complainants shall not be liable for such fees if the commission has determined grounds exist for a hearing. Sec. 2-331. Ex parte communications. After a complaint has been filed and during the pendency of a complaint before the commission, a member of the commission may not communicate directly or indirectly with any party or person about any issue of fact or law regarding the complaint, except at a meeting of the commission. Sec. 2-332. Hearing. (a) The hearing shall be held as expeditiously as possible following the determination by the commission to conduct a hearing on a particular matter. The commission may grant two postponements, not to exceed 15 days each, upon the request of the person complained against; provided, however, the commission may also delay commencement of a hearing for good cause such as a hurricane or unavailability of a material witness. (b) The issue at hearing shall be whether the violation alleged in the complaint occurred. The commission shall make its determination based on the preponderance of credible evidence in the record. All witnesses shall testify under oath. Strict rules of evidence shall not be required; however, the commission shall require that all evidence be of such quality that persons customarily rely on in the conduct of serious affairs. If the commission determines that a violation has occurred, it shall state its findings in writing, shall identify the particular provisions which have been violated, and within five working days shall deliver a copy of the findings to the complainants, the person complained against, and the city secretary. Sec. 2-333. Oaths. If a complaint proceeds to hearing, the commission may subpoena witnesses to attend and testify, administer oaths, take evidence and subpoena the production of books, papers, records, or other evidence needed for the performance of the commission's duties or exercise its powers, including its duties and powers of investigation. 002 8 As Passer Third Reading Sec. 2-334. Sanctions (a) If the commission determines that a violation occurred, it shall proceed directly to determine its recommendation of appropriate sanctions. The affirmative vote of a majority of the members holding office and qualified to vote shall be required for the determination that a violation has occurred and the recommendation any sanction under this code of ethics. 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 recommend the following: (1) Against a council member or against a board member or city official appointed or confirmed by the council, reprimand, temporary suspension, removal, or any other sanction or corrective action within the power of the city council, or recall by the citizens. (2) Against a city official other than those in (1), that appropriate action be taken, as deemed necessary by the city manager. (c) In determining its recommendation, the commission shall consider the seriousness of the violation, the importance of deterrence, the impact on public confidence in government, the violations' repeated or isolated nature, the mental state with which the violation was committed, and the prior record of the person complained against. The recommendation shall be reduced to writing and transmitted to the supervisory authority and to the person complained against. (d) If the commission finds that conduct occurred which, if willful, would violate the Rules of Conduct, but the commission cannot determine that the conduct was a willful violation because of ambiguity as to the meaning of the standard of conduct involved, the commission will recommend no sanction, but will issue a clarifying interpretation to guide future cases. (e) Nothing in the code of ethics shall change or affect the civil service, at will, or other status of any employee, city official, or board member as established by the city charter and ordinances. (f) The city council or supervisory authority shall consider the recommendation of the commission, but will exercise its own judgment and discretion in determining what action, if any, to take. (g) If the commission determines that a violation of any criminal law has occurred, it shall deliver a copy of its findings to the complainants, the person complained against, and the city attorney, recommending whether prosecution should be initiated or setting forth requirements to be complied with in order that voluntary compliance 002 9 As Passeu Third Reading may be had. Said findings shall also be delivered to the county attorney or district attorney, if a violation may be within their jurisdiction. Sec. 2-335 - 2-339. Reserved. DIVISION III. FINANCIAL DISCLOSURE. Sec. 2-340. Required Reports. On or before the last Friday of April of each year, reporting officials shall file with the city secretary an Annual Report of Financial Information covering January 1 through December 31 of the previous year. Council members and planning commission members shall also file with the city secretary a Supplemental Report of Financial Information by the last Friday of July of each year covering the most recent January 1 through June 30. Sec. 2-341. Definitions. The following definitions shall apply to these financial disclosure provisions: person - an individual, proprietorship, firm, partnership, joint venture, syndicate, trust, company, corporation, association, committee, estate, receiver, entity, or any other organization or group of persons acting in concert, whether profit or nonprofit. relative - spouse, father, mother, brother, sister, son, daughter, spouse's children, grandfather, son in law, daughter in law, grandmother, uncle, aunt, nephew, niece, grandson, granddaughter, first cousin, father in law, mother in law, brother in law, sister in law, grandfather in law, grandmother in law, uncle by marriage, aunt by marriage, nephew's wife, niece's husband, grandson in law, granddaughter in law, and first cousin's spouse, adoptive relationships being treated the same as natural relationships. reporting official - the mayor and members of the city council, city manager, deputy and assistant city managers, city secretary, city attorney, department heads, municipal court judges (including substitute judges), and all members of the planning commission, ethics commission, civil service board, civil service commission, Corpus Christi health facilities development corporation, Corpus Christi housing finance corporation, Corpus Christi housing improvement corporation, Corpus Christi industrial development corporation, and the attorney who serves as local issuer's counsel for and any executive employee hired by the above corporations. Sec. 2-342. Content of Reports. The reports required shall contain the following information for the reporting period by separate listing. In this section, the report for the reporting official shall include all such information for the 002 10 reporting official's spouse, but information relating to need not be segregated from that relating to the reporting (a) Name and residence address. As Passeu Third Reading the spouse official. (b) All professional, occupational, or business licenses held by the reporting official. (c) The names of any businesses with which the reporting official was actively engaged or associated, and the principal address and phone number of each, together with the position or title held. (This list should not include interests in or positions with any businesses which are required to be reported in other provisions of this section.) (d) The names and addresses of all sources of income which exceed 10 percent of the reporting official's gross income, or $5,000 in salary, bonuses, commissions or professional fees, or $20,000 in payment for goods, products or non-professional services. If the reporting official is self employed or owns or controls at least a 20 percent interest in a partnership, corporation or other entity through which the reporting official does business, the reporting official shall also report the names and addresses of the clients or customers who do business with the city from whom the reporting official, partnership, corporation or other entity received at least 10 percent of its gross income. Prior to each reporting deadline, the city shall publish a list of the names and addresses of the persons who do business with the city in the amount of $10,000 or more each year (excluding utility services or the payment of taxes) which reporting officials may rely upon for the purposes of complying with this provision. A reporting official operating a business as a sole proprietor shall not be required to report a client or customer under this subsection he or she would not have to report if operating as a corporation or partnership. (e) The names and addresses of all corporations, partnerships or other business organizations in which the reporting official held, owned, acquired or sold stock or other equity ownership having a value exceeding $5,000 or equivalent to 10 percent or more of the stock or equity in the entity. (f) An itemized list of all real property in Nueces County or any adjoining county in which the reporting official held any legal or equitable ownership with a fair market value of $2,500 or more. The list shall include a description sufficient to locate the property. (g) The name and address of any person to whom the reporting official was indebted in excess of $10,000 together with the dates any such debts were incurred. "Indebted" includes obligations on which the reporting official is a guarantor or co-signer, in which case the names of the borrower and lender shall be listed. 002 11 As Passes. Third Reading (h) The name and address of any person who is an obligor on any note, bond, loan or any other similar obligation, written or unwritten, owed to the reporting official which in the aggregate equal $10,000 or more together with the dates of such obligations. (i) All boards of directors or governing bodies of which the reporting official is a member, and all offices or executive positions the reporting official holds in corporations, partnerships, limited partnerships, professional corporations, associations, or other entities, including non -business and non-profit entities, stating the name of each entity and position held, and excluding entities owned or created by the city. (j) The names and addresses of all persons from whom the reporting official received gifts or favors, including but not limited to trips, excursions, food, lodging, money, commodities or services, cumulatively exceeding $200 in value. The nature and date of each gift received shall be specified. Provided, however, campaign contributions reported as required by state law and gifts or favors from relatives need not be reported hereunder. Sec. 2-343. Financial Disclosure by Candidates. All candidates for city council shall file an Annual Report of Financial Information covering January 1 through December 31 of the previous year containing the information required by the above sections with the city secretary within five days after filing for office. If the deadline for candidate filing is after June 30, they shall also file a Supplemental Report of Financial Information. If any incumbent candidate has previously filed a report for the appropriate period(s), that report shall satisfy this section. Sec. 2-344. Reports to be Sworn and Maintained. All reports of financial information required by the code of ethics shall be sworn, and shall be preserved for five years as public records. Sec.2-345. Filing dates for Reports. Reports required by this division must be physically filed with the city secretary by 4:45 p.m. on the day required for filing. When the day falls on an official city holiday as established by the city council, the deadline for receipt by the city secretary is extended to 4:45 p.m. of the next day which is not a Saturday or Sunday or official city holiday. Sec. 2-346. Failure to File Report. The failure of a reporting official or employee to file a true and accurate report as required under this code of ethics shall constitute a violation of the Rules of Conduct. In the event a person who has failed to file a required report no longer serves in an official 002 12 As Passed Third Reading capacity with the city, that person shall be barred from serving as an appointed officer, board member or employee of the city in the future until the required report has been filed. Sec. 2-347. Voluntary Reports. Any city official, employee, or board member may file reports exceeding the requirements of the code of ethics, and said reports shall be preserved in the same manner as required reports. Sec. 2-348. Disclosure of Gifts by Employees. Any employee of the city other than reporting officials, whether under civil service or not, who received gifts or favors, including but not limited to trips, excursions, food, lodging, money, commodities, or services, cumulatively exceeding $200 in value in any calendar year, from any person (other than a relative) whose name is published in the list of persons doing business with the city under Section 2-342(d), shall file a report of the names and addresses of such persons and the date and nature of each gift with the city secretary. The deadline for filing such reports shall be February 1 of each year; provided that, such a separate report shall not be required for any employee who is required to file a report as a reporting official. Sec. 2-349. Disclosure of Interests by Contractors. (a) Any business desiring city council, board, commission or committee consideration or action concerning that business (other than granting an electrician license, solicitation permit and approving a plat) shall, prior to its placement as an agenda item on the public notice of such body, file with the city (and if a vendor, file with the city's purchasing agent) a statement specifically naming any city employee, official and board member having an ownership interest in the business constituting three (3) percent or more of the ownership, or having any pecuniary interest in the transaction or property which is the subject of consideration or action. (b) In the case of any business desiring to sell goods or services to the city (except when the value of the goods or services is not reasonably anticipated to exceed one hundred dollars ($100.00) per calendar year), but which does not require city council, board, commission or committee consideration or action, the business shall file with the city's purchasing agent a statement specifically naming any city employee, official and board member having any ownership interest in the business constituting three (3) percent or more of the ownership, or having any pecuniary interest in the transaction. This provision does not apply to or include the purchase of magazine subscriptions and memberships in professional or trade organizations related to municipal operations. (c) For corporate businesses whose shares are publicly traded and listed on recognized national or regional stock exchanges or over -the - 002 13 As Passed Third Reading counter markets, it shall be sufficient if a current Securities and Exchange Commission Form 10-K is filed in lieu of the statements required by this section. SECTION 2. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase, word or provision hereof be given full force and effect for its purpose. SECTION 3. Publication shall be made one time in the official publication of the City of Corpus Christi by publishing the caption stating in substance the purpose of the ordinance, this ordinance to become effective upon such publication. 002 14 That the foregoing ordinance was reaa for the first time and passed to its second reading on this the 01 -Ii, day of ; �V � ;,, 192: 1 , by the following vote: Betty N. Turner // Edward A. Martin �l'Y David Berlanga, Sr. /; Joe McComb Leo Guerrero v Clif Moss Tom Hunt Mary Rhodes Frank Schwing, Jr.��< That the foregoing ordinance was read for the second, time and passed to its third reading on this the ; day of . -1,, K L( , 19 Y7 , by the following vote: Betty N. Turner 1 Edward A. Martin David Berlanga, Sr. j` � Joe McComb Leo Guerrero ('' Clif Moss Tom Hunt �/i�.a�; Mary Rhodes Frank Schwing, Jr. ,�j'` ; That the foregoing ordinance. was read for the third time and passed finally on this the , _ j day of f,f,;�, , 19 , by the following vote: Betty N. Turner Edward A. Martin ' ' David Berlanga, Sr. 9 Joe McComb tee/ Leo Guerrero 1; Clif Moss 1/ i Tom Hunt �! Mary Rhodes Frank Schwing, Jr. PASSED AND APPROVED, this the day of st,' �(;i{ lit , 19 i y ATTEST: APPROVED: DAY OF Seet,as6.ey , 191M: HAL GEORGE, CITY ATTORNEY 99.044.01 MAYOR THE CITY OF CORPUS CHRISTI, TEXAS As Passes. Second Reading AN ORDINANCE AMENDING THE CODE OF ORDINANCES, CHAPTER 2, ADMINISTRATION, BY REPEALING ARTICLE V, CODE OF ETHICS, IN ITS ENTIRETY, EXCEPT SEC. 2-317 WHICH IS HEREBY RENUMBERED AS SEC. 2-40, AND SUBSTITUTING THEREFOR A NEW ARTICLE V, CODE OF ETHICS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the Code of Ordinances, Administration, is hereby amended by repealing Article Ethics, in its entirety, except for Sec. 2-317 which renumbered as Sec. 2-40, and substituting therefor a new Code of Ethics, to read as follows: Chapter 2, V, Code of is hereby Article V, CODE OF ETHICS DIVISION I. RULES OF CONDUCT Sec. 2-311. Standards. The following Rules of Conduct apply to all council members, board members, and employees: Special Privileges 1. You shall not use your office for &k013H private advancement or gain to secure special privileges or exemptions for yourself or others. 2. You shall not grant any special consideration, treatment or advantage to any person or group beyond that which is available to others generally. 3. You shall not use city facilities, personnel, equipment or supplies for purposes unrelated to the interests of the city, except to the extent such are lawfully available to the public. 4. Unless you are a council member, you shall not use the prestige of your position with the city on behalf of any political party or cause. Gifts 5. You shall not accept or solicit any money, property, service or other thing of value by way of gift, favor, loan or otherwise that might reasonably tend to influence you in the discharge of your official duties or which you know or should have known was offered with the intent to influence or reward your official conduct. �; ( As Passey Second Reading 6. In the event you receive any gift or loan of property or services on behalf of the city, you shall promptly deliver such gift or loan to the city manager for official acceptance and inventory by the city. Conflicts of Interest 7. In the event you or one of your relatives have an interest or any substantial interest in a contract or transaction involving the city which comes before you in the performance of your official duties, you shall make a written disclosure of your interest in the matter and abstain from any vote or decision and not participate in any discussion on the matter. 8. You shall not engage in any outside activities or employment which will conflict or be incompatible with the full and proper discharge of your official duties, impair your independent judgment in the performance of your duties, or reflect discredit upon the city. 9. You interest interest party. shall not represent any other private person, group or in any action or proceeding against or adverse to the of the city or in any litigation in which the city is a 10. You shall not represent any other private person or group in an action or proceeding in the municipal courts of the city which was instituted by city officers or employees in the course of their official duties. 11. You shall not receive any fee or compensation for your official services from any source other than the city except as may be provided by law or authorized by the city council. Actions Adverse to the City 12. You shall not disclose information that could adversely affect the property or affairs of the city. 13. You shall not knowingly perform or refuse to perform any act in order to deliberately thwart the execution of federal, state or local laws or regulations or the achievement of any official city programs. 14. You shall not engage in any felony crime, misdemeanor involving moral turpitude, or other conduct that reflects discredit upon the city. Provisions for Council Members 15. As a council member, you shall not have a substantial interest in any contract with the city. 002 2 As Passen Second Reading 16. As a council member, you shall not represent or appear on behalf of any private interest of others exeegt-these-diselesed-4n-Bvs4en-fff7Seet4en-2-342, before any board, commission or committee of the city and -4n -these -eases -must -abstan -frem -any-vet4ng-er-partleipatien -4n dseussiens-as-a-member-ef-the-governing-body except where one has a vested financial interest. 17. As a council member, you shall not give any orders to any employee except through the city manager as provided by the city charter. Provisions for Board Members 18. As a board member, you shall not have a substantial interest in any contract with the city in which your board or commission, or the city department related thereto, has jurisdiction. 19. As a board member, the private interests committee, the city jurisdiction over your matter which is within you shall not represent or appear on behalf of of others before your board, commission or council, or any board which has appellate board, commission or committee, concerning a the subject matter jurisdiction of your board. Provisions for Employees 20. As an employee you shall not have an interest in any contract with the city. 21. As an employee, you shall not, within twelve months after leaving city employment, represent any other person or organization in any formal or informal appearance with the city council or any other agency or employee of the city concerning a project for which you had responsibility as an employee. 22. As an employee, you shall not represent or appear on behalf of the private interests of others before the city council or any board, commission or committee of the city. Sec. 2-312. Definitions. The following definitions apply to the above Rules of Conduct. board member - a member of any board, commission or committee of the city, including the board of any corporation created by the city. employee - any person employed by the city, service or not, including part-time employees corporation created by the city. interest - any direct or indirect pecuniary or contract or transaction other than: 002 3 whether under civil and employees of any material benefit in a As Passed Second Reading (1) an interest which is shared by and available to all other persons similarly situated, or (2) a remote or incidental interest which would not increase or decrease materially due to the action of the city or is less than $200 in value, or (3) an interest of a subcontractor which has no direct contractual relationship with the city, is receiving fair and reasonable compensation, and is not operating as a subterfuge to circumvent the code of ethics. (4) an interest in real property acquired by the city which could otherwise be accomplished only through eminent domain provided that the property must be acquired for a public purpose and just compensation must be paid under the Texas Constitution after obtaining an independent appraisal. substantial interest - any interest which has a value of $5,000.00 or more or represents 10 percent or more of a person's gross income during the most recent calendar year. relative - spouse, father, mother, brother, sister, son, daughter, spouse's children, father in law, mother in law, brother in law, sister in law, son in law, daughter in law and adoptive relationships being treated the same as natural relationships. Sec. 2-313. Effect of Violation. A violation of these Rules of Conduct shall subject the council member, board member or employee to appropriate disciplinary proceedings, but such violation shall not render the action of the city voidable by the city unless the action would not have been approved without the vote of the person who violated the Rules of Conduct. Sec. 2-314. Exceptions to Abstention Requirement. The requirement that a council member or board member abstain from voting on a matter or participating in discussion as contained in Rule 7 of the Rules of Conduct shall not apply in the following situations, provided that such person has complied with the requirements of written disclosure of the interest: (a) In the event a majority of the members of the council or the board, commission or committee have filed a written disclosure of a conflict of interest on the matter and would be required to abstain; or (b) On the final approval of a budget when the person has abstained from a separate vote taken on the particular budget item pertaining to the conflict of interest and action or that particular item has been resolved. 002 4 As Passea Second Reading Sec. 2-315. Freedom of Expression. Nothing contained in the code of ethics shall abridge the right of any citizen, whether or not a council member, board member or employee, to exercise his or her right of expression under the U.S. or Texas Constitutions. Sec. 2-316 - 2-319. Reserved. DIVISION II. ETHICS COMMISSION. Sec. 2-320. Establishment. An ethics commission is created and shall consist of nine (9) members. The city council shall solicit nominations for the ethics commission from a wide variety of professional and community organizations in the city. Interested individuals may also submit their names for consideration. Members of the commission may not hold or be a candidate for any city elected or appointed office. The city council shall appoint the members of the ethics commission by a two-thirds vote of the full council. Sec. 2-321. Terms. Members shall hold office for three-year terms commencing October 1. In order to establish staggered terms, however, the initial terms of three members shall be one year, and the initial terms of another three members shall be two years. The persons serving such shorter terms shall be determined by lot. No holding over is permitted except as expressly provided in this code of ethics. Sec. 2-322. Removal. In addition to the council's usual powers of removal, members of the commission may be removed by a majority of the council for cause. In considering a complaint filed with the city secretary or on its own initiative, the council may follow the procedures hereinafter set forth regarding the disposition of such alleged violations. Sec. 2-323. Vacancies. A11 vacancies shall be filled for the unexpired terms. A member shall hold office until his successor has been appointed, and shall continue to hold office after his successor has been appointed for the limited purpose of disposition of all complaints filed and for which presentation of evidence was commenced during that member's term. Sec. 2-324. Chairperson; quorum. The commission shall elect a chairperson and a vice -chairperson. The vice -chairperson shall act as chairperson in the absence of the chairperson or in the event of a vacancy in that position. The officers of the commission shall serve one-year terms. A majority of the members of the commission shall constitute a quorum. 002 5 As Passed Second Reading Sec. 2-325. Meetings. The commission shall have such meetings as may be necessary to fulfill its responsibilities. The chairperson or any three members may call a meeting provided that reasonable notice is given to each member. The commission shall comply with the Texas Open Meetings Act. Sec. 2-326. Duties. (a) The commission shall, in addition to its other duties: (1) Prepare and publish pamphlets and other materials explaining the duties of individuals subject to the code of ethics. Such materials shall include instructions to the public about how to obtain information such as financial disclosures, campaign reports, and the like from the city. (2) Review all statements and reports filed with the city. (3) Annually review the code of ethics and make appropriate recommendations to the city council after conducting a public hearing on any such recommendations. (4) Review all public opinions related to the code of ethics that are issued by the city attorney. (5) Prepare and disseminate a report listing all campaign contributions and expenditures for each candidate within 30 days following the deadline for filing the last campaign finance reports for each city council election. For the purposes of this provision, a general election and run-off election shall be considered as a single city council election. (b) The commission may: (1) Adopt rules of procedure for the conduct of its business and to carry out the provisions of the code of ethics, consistent with the code of ethics and other applicable law. (2) Prepare reports and studies to advance the purposes of the code of ethics. (3) Request the city council and city manager to provide such assistance as it may require in the discharge of its duties. Sec. 2-327. Staffing. The commission shall be assigned staff by the city attorney to assist in its duties. The commission shall also designate independent legal counsel, and when complaints are filed, such independent legal counsel may be utilized to advise the commission and participate in hearings. 002 6 As Passed Second Reading Sec. 2-328. Legal Opinions and Services. (a) Any council member, employee or board member may submit a written request to the city manager for an opinion concerning the meaning or effect of any section, word, or requirement of the code of ethics as it affects such official, employee or board member. The city manager shall submit such request to the city attorney, who will promptly issue a written opinion to the city manager. Such opinion shall be filed with the city secretary with a copy to the requesting person shall constitute an authoritative determination of the meaning of this ordinance, until amended by the council. (b) If a complaint is filed with the ethics commission about any specific action, omission, or alleged conflict of interest by the charged person which has been the subject, in whole or in part, of a city attorney's opinion, the independent legal counsel shall act as the commission's attorney on said complaint. Sec. 2-329. Jurisdiction of Commission. The ethics commission shall have jurisdiction of complaints involving any "city official" which includes the mayor and members of the city council, city manager, deputy and assistant city managers, city secretary, city attorney, department heads, and municipal court judges (including substitute judges), and all members of any board, commission or committee of the city, including the board of any corporation created by the city. Sec. 2-330. Complaints. (a) A sworn complaint alleging violation of the code of ethics shall specify the provisions of the Rules of Conduct alleged to have been violated and facts alleged to constitute the violation., (b) Upon the sworn complaint of any five people filed with the city secretary's office, the commission shall consider possible violations of the code of ethics by city officials and board members and former city officials and board members other than members of this commission. (c) A complaint alleging a violation must be filed with the city secretary within six months from the date the complainants knew or should have known of the action alleged as a violation, and not afterward. (d) Not later than three working days after the city secretary receives a sworn complaint, he or she shall acknowledge receipt to the complainants, and provide a copy to the city attorney, the commission and the person complained against. Not later than 30 days after receipt of a complaint by the city secretary, the commission shall notify in writing the persons who made the complaint and the person complained against whether it intends to schedule a hearing or take other action concerning the complaint. The person complained against shall have ten (10) days to submit a written response to the complaint 002 7 As Passea Second Reading prior to the commission deciding whether to hold a hearing. The complainants shall have one opportunity within 15 days of any denial of their original complaint by the commission to amend their complaint and refile the same with the commission. (e) Legal fees incurred by the complainants, the Commission, and the party complained against, in an amount determined reasonable by the Commission, shall be paid by the unsuccessful party if the Commission determines such party's complaint or defense was groundless. "Groundless" means (1) without basis in fact, or (2) not warranted by law or reasonably arguable interpretation thereof. Sec. 2-331. Ex parte communications. After a complaint has been filed and during the pendency of a complaint before the commission, a member of the commission may not communicate directly or indirectly with any party or person about any issue of fact or law regarding the complaint, except at a meeting of the commission. Sec. 2-332. Hearing. (a) The hearing shall be held as expeditiously as possible following the determination by the commission to conduct a hearing on a particular matter. The commission may grant two postponements, not to exceed 15 days each, upon the request of the person complained against; provided, however, the commission may also delay commencement of a hearing for good cause such as a hurricane or unavailability of a material witness. (b) The issue at hearing shall be whether the violation alleged in the complaint occurred. The commission shall make its determination based on the preponderance of credible evidence in the record. All witnesses shall testify under oath. Strict rules of evidence shall not be required; however, the commission shall require that all evidence be of such quality that persons customarily rely on in the conduct of serious affairs. If the commission determines that a violation has occurred, it shall state its findings in writing, shall identify the particular provisions which have been violated, and within five working days shall deliver a copy of the findings to the complainants, the person complained against, and the city secretary. Sec. 2-333. Oaths. If a complaint proceeds to hearing, the commission may subpoena witnesses to attend and testify, administer oaths, take evidence and subpoena the production of books, papers, records, or other evidence needed for the performance of the commission's duties or exercise its powers, including its duties and powers of investigation. 002 8 As Passea Second Reading Sec. 2-334. Sanctions (a) If the commission determines that a violation occurred, it shall proceed directly to determine its recommendation of appropriate sanctions. The affirmative vote of a majority of the members holding office and qualified to vote shall be required for the determination that a violation has occurred and the recommendation any sanction under this code of ethics. 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 recommend the following: (1) Against a council member or against a board member or city official appointed or confirmed by the council, reprimand, temporary suspension, removal, or any other sanction or corrective action within the power of the city council, or recall by the citizens. (2) Against a city official other than those in (1), that appropriate action be taken, as deemed necessary by the city manager. (c) In determining its recommendation, the commission shall consider the seriousness of the violation, the importance of deterrence, the impact on public confidence in government, the violations' repeated or isolated nature, the mental state with which the violation was committed, and the prior record of the person complained against. The recommendation shall be reduced to writing and transmitted to the supervisory authority and to the person complained against. (d) If the commission finds that conduct occurred which, if willful, would violate the Rules of Conduct, but the commission cannot determine that the conduct was a willful violation because of ambiguity as to the meaning of the standard of conduct involved, the commission will recommend no sanction, but will issue a clarifying interpretation to guide future cases. (e) Nothing in the code of ethics shall change or affect the civil service, at will, or other status of any employee, city official, or board member as established by the city charter and ordinances. (f) The city council or supervisory authority shall consider the recommendation of the commission, but will exercise its own judgment and discretion in determining what action, if any, to take. (g) If the commission determines that a violation of any criminal law has occurred, it shall deliver a copy of its findings to the complainants, the person complained against, and the city attorney, recommending whether prosecution should be initiated or setting forth requirements to be complied with in order that voluntary compliance 002 9 may be had. attorney or jurisdiction Sec. 2-335 - DIVISION III Sec. 2-340. Said findings shall district attorney, if 2-339. Reserved. . FINANCIAL DISCLOSURE. Required Reports. As Passea Second Reading also be delivered to the county a violation may be within their On or before the last Friday of April of each year, reporting officials shall file with the city secretary an Annual Report of Financial Information covering January 1 through December 31 of the previous year. Council members and planning commission members shall also file with the city secretary a Supplemental Report of Financial Information by the last Friday of July of each year covering the most recent January 1 through June 30. Sec. 2-341. Definitions. The following definitions shall apply to these financial disclosure provisions: person - an individual, proprietorship, firm, partnership, joint venture, syndicate, trust, company, corporation, association, committee, estate, receiver, entity, or any other organization or group of persons acting in concert, whether profit or nonprofit. relative - spouse, father, mother, brother, sister, son, daughter, spouse's children, grandfather, son in law, daughter in law, grandmother, uncle, aunt, nephew, niece, grandson, granddaughter, first cousin, father in law, mother in law, brother in law, sister in law, grandfather in law, grandmother in law, uncle by marriage, aunt by marriage, nephew's wife, niece's husband, grandson in law, granddaughter in law, and first cousin's spouse, adoptive relationships being treated the same as natural relationships. reporting official - the mayor and members of the city council, city manager, deputy and assistant city managers, city secretary, city attorney, department heads, municipal court judges (including substitute judges), and all members of the planning commission, ethics commission, civil service board, civil service commission, eeasta+-bend-hea+th-fae444t4e9-deve+egment-eergeraten; Corpus Christi health facilities development corporation, Corpus Christi housing finance corporation, Corpus Christi housing improvement corporation, Corpus Christi industrial development corporation, and the attorney who serves as local issuer's counsel for and any executive employee hired by the above corporations. Sec. 2-342. Content of Reports. The reports required shall contain the following information for the reporting period by separate listing. In this section, the report for the reporting official shall include all such information for the 002 10 As Passed Second Reading reporting official's spouse, but information relating to the spouse need not be segregated from that relating to the reporting official. (a) Name and residence address. (b) All professional, occupational, or business licenses held by the reporting official. (c) The names of any businesses with which the reporting official was actively engaged or associated, and the principal address and phone number of each, together with the position or title held. (This list should not include interests in or positions with any businesses which are required to be reported in other provisions of this section.) (d) The names and addresses of all sources of income which exceed 10 percent of the reporting official's gross income, or $5,000 in salary, bonuses, commissions or professional fees, or $20,000 in payment for goods, products or non-professional services. If the reporting official is self employed or owns or controls at least a 20 percent interest in a partnership, corporation or other entity through which the reporting official does business, the reporting official shall also report the names and addresses of the clients or customers who do business with the city from whom the reporting official, partnership, corporation or other entity received at least 10 percent of its gross income. Prior to each reporting deadline, the city shall publish a list of the names and addresses of the persons who do business with the city in the amount of $10,000 or more each year (excluding utility services or the payment of taxes) which reporting officials may rely upon for the purposes of complying with this provision. A reporting official operating a business as a sole proprietor shall not be required to report a client or customer under this subsection he or she would not have to report if operating as a corporation or partnership. (e) The names and addresses of all corporations, partnerships or other business organizations in which the reporting official held, owned, acquired or sold stock or other equity ownership having a value exceeding $5,000 or equivalent to 10 percent or more of the stock or equity in the entity. (f) An itemized list of all real property in Nueces County or any adjoining county in which the reporting official held any legal or equitable ownership with a fair market value of $2,500 or more. The list shall include a description sufficient to locate the property. (g) The name and address of any person to whom the reporting official was indebted in excess of $10,000 together with the dates any such debts were incurred. "Indebted" includes obligations on which the reporting official is a guarantor or co-signer, in which case the names of the borrower and lender shall be listed. 002 11 As Passea Second Reading (h) The name and address of any person who is an obligor on any note, bond, loan or any other similar obligation, written or unwritten, owed to the reporting official which in the aggregate equal $10,000 or more together with the dates of such obligations. (i) All boards of directors or governing bodies of which the reporting official is a member, and all offices or executive positions the reporting official holds in corporations, partnerships, limited partnerships, professional corporations, associations, or other entities, including non -business and non-profit entities, stating the name of each entity and position held, and excluding entities owned or created by the city. (j) The names and addresses of all persons from whom the reporting official received gifts or favors, including but not limited to trips, excursions, food, lodging, money, commodities or services, cumulatively exceeding $200 in value. The nature and date of each gift received shall be specified. Provided, however, campaign contributions reported as required by state law and gifts or favors from relatives need not be reported hereunder. Sec. 2-343. Financial Disclosure by Candidates. All candidates for city council shall file an Annual Report of Financial Information covering January 1 through December 31 of the previous year containing the information required by the above sections with the city secretary within five days after filing for office. If the deadline for candidate filing is after June 30, they shall also file a Supplemental Report of Financial Information. If any incumbent candidate has previously filed a report for the appropriate period(s), that report shall satisfy this section. Sec. 2-344. Reports to be Sworn and Maintained. All reports of financial information required by the code of ethics shall be sworn, and shall be preserved for five years as public records. Sec.2-345. Filing dates for Reports. Reports required by this division must be physically filed with the city secretary by 4:45 p.m. on the day required for filing. When the day falls on an official city holiday as established by the city council, the deadline for receipt by the city secretary is extended to 4:45 p.m. of the next day which is not a Saturday or Sunday or official city holiday. Sec. 2-346. Failure to File Report. The failure of a reporting official or employee to file a true and accurate report as required under this code of ethics shall constitute a violation of the Rules of Conduct. In the event a person who has failed to file a required report no longer serves in an official 002 12 As Passed Second Reading capacity with the city, that person shall be barred from serving as an appointed officer, board member or employee of the city in the future until the required report has been filed. Sec. 2-347. Voluntary Reports. Any city official, employee, or board member may file reports exceeding the requirements of the code of ethics, and said reports shall be preserved in the same manner as required reports. Sec. 2-348. Disclosure of Gifts by Employees. Any employee of the city other than reporting officials, whether under civil service or not, who received gifts or favors, including but not limited to trips, excursions, food, lodging, money, commodities, or services, cumulatively exceeding $200 in value in any calendar year, from any person (other than a relative) whose name is published in the list of persons doing business with the city under Section 2-342(d), shall file a report of the names and addresses of such persons and the date and nature of each gift with the city secretary. The deadline for filing such reports shall be February 1 of each year; provided that, such a separate report shall not be required for any employee who is required to file a report as a reporting official. Sec. 2-349. Disclosure of Interests by Contractors. (a) Any business desiring city council, board, commission or committee consideration or action concerning that business (other than granting an electrician license, solicitation permit and approving a plat) shall, prior to its placement as an agenda item on the public notice of such body, file with the city (and if a vendor, file with the city's purchasing agent) a statement specifically naming any city employee, official and board member having an ownership interest in the business constituting three (3) percent or more of the ownership, or having any pecuniary interest in the transaction or property which is the subject of consideration or action.' (b) In the case of any business desiring to sell goods or services to the city (except when the value of the goods or services is not reasonably anticipated to exceed one hundred dollars ($100.00) per calendar year), but which does not require city council, board, commission or committee consideration or action, the business shall file with the city's purchasing agent a statement specifically naming any city employee, official and board member having any ownership interest in the business constituting three (3) percent or more of the ownership, or having any pecuniary interest in the transaction. This provision does not apply to or include the purchase of magazine subscriptions and memberships in professional or trade organizations related to municipal operations. (c) For corporate businesses whose shares are publicly traded and listed on recognized national or regional stock exchanges or over -the - 002 13 As Passed Second Reading counter markets, it shall be sufficient if a current Securities and Exchange Commission Form 10-K is filed in lieu of the statements required by this section. SECTION 2. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase, word or provision hereof be given full force and effect for its purpose. SECTION 3. Publication shall be made one time in the official publication of the City of Corpus Christi by publishing the caption stating in substance the purpose of the ordinance, this ordinance to become effective upon such publication. 002 14 As Passed First Readi..y AN ORDINANCE AMENDING THE CODE OF ORDINANCES, CHAPTER 2, ADMINISTRATION, BY REPEALING ARTICLE V, CODE OF ETHICS, IN ITS ENTIRETY, EXCEPT SEC. 2-317 WHICH IS HEREBY RENUMBERED AS SEC. 2-40, AND SUBSTITUTING THEREFOR A NEW ARTICLE V, CODE OF ETHICS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the Code of Ordinances, Chapter 2, Administration, is hereby amended by repealing Article V, Code of Ethics, in its entirety, except for Sec. 2-317 which is hereby renumbered as Sec. 2-40, and substituting therefor a new Article V, Code of Ethics, to read as follows: CODE OF ETHICS DIVISION I. RULES OF CONDUCT Sec. 2-311. Standards. The following Rules of Conduct apply to all council members, board members, and employees: Special Privileges 1. You shall not use your office for private advancement or gain or to secure special privileges or exemptions for yourself or others. 2. You shall not grant any special consideration, treatment or advantage to any person or group beyond that which is available to others generally. 3. You shall not use city facilities, personnel, equipment or supplies for purposes unrelated to the interests of the city, except to the extent such are lawfully available to the public. 4. Unless you are a council member, you shall not use the prestige of your position with the city on behalf of any political party or cause. Gifts 5. You shall not accept or solicit any money, property, service or other thing of value by way of gift, favor, loan or otherwise that might reasonably tend to influence you in the discharge of your official duties or which you know or should have known was offered with the intent to influence or reward your official conduct.' 015 As Passed First Reads_� 6. In the event you receive any gift or loan of property or services on behalf of the city, you shall promptly deliver such gift or loan to the city manager for official acceptance and inventory by the city. Conflicts of Interest 7. In the event you or one of your relatives have an interest or any substantial interest in a contract or transaction involving the city which comes before you in the performance of your official duties, you shall make a written disclosure of your interest in the matter and abstain from any vote or decision and not participate in any discussion on the matter. 8. You shall not engage in any outside activities or employment which will conflict or be incompatible with the full and proper discharge of your official duties, impair your independent judgment in the performance of your duties, or reflect discredit upon the city. 9. You shall not represent any other private person, group or interest in any action or proceeding against or adverse to the interest of the city or in any litigation in which the city is a party. 10. You shall not represent any other private person or group in an action or proceeding in the municipal courts of the city which was instituted by city officers or employees in the course of their official duties. 11. You shall not receive any fee or compensation for your official services from any source other than the city except as may be provided by law or authorized by the city council. Actions Adverse to the City 12. You shall not disclose information that could adversely affect the property or affairs of the city. 13. You shall not knowingly perform or refuse to perform any act in order to deliberately thwart the execution of federal, state or local laws or regulations or the achievement of any official city programs. 14. You shall not engage in any felony crime, misdemeanor involving moral turpitude, or other conduct that reflects discredit upon the city. Provisions for Council Members 15. As a council member, you shall not have a substantial interest in any contract with the city. 16. As a council member, you shall not represent or appear on behalf of any private interest except those disclosed in Division III, Section 2-342, before any board, commission or committee of the city and in those cases must abstain from any voting or participation in discussions as a member of the governing body. 015 2 As Passed First Reads..g 17. As a council member, you shall not give any orders to any employee except through the city manager as provided by the city charter. Provisions for Board Members 18. As a board member, you shall not have a substantial interest in any contract with the city in which your board or commission, or the city department related thereto, has jurisdiction. 19. As a board member, you shall not represent or appear on behalf of the private interests of others before your board, commission or committee, the city council, or any board which has appellate jurisdiction over your board, commission or committee, concerning a matter which is within the subject matter jurisdiction of your board. Provisions for Employees 20. As an employee you shall not have an interest in any contract with the city. 21. As an employee, you shall not, within twelve months after leaving city employment, represent any other person or organization in any formal or informal appearance with the city council or any other agency or employee of the city concerning a project for which you had responsibility as an employee. 22. As an employee, you shall not represent or appear on behalf of the private interests of others before the city council or any board, commission or committee of the city. Sec. 2-312. Definitions. The following definitions apply to the above Rules of Conduct. board member - a member of any board, commission or committee of the city, including the board of any corporation created by the city. employee - any person employed by the city, whether under civil service or not, including part-time employees and employees of any corporation created by the city. interest - any direct or indirect pecuniary or material benefit in a contract or transaction other than: (1) an interest which is shared by and available to all other persons similarly situated, or (2) a remote or incidental interest which would not increase or decrease materially due to the action of the city or is less than $200 in value, or (3) an interest of a subcontractor which has no direct contractual relationship with the city, is receiving fair 015 3 As Passed First Reading and reasonable compensation, and is not operating as a subterfuge to circumvent the code of ethics. (4) an interest in real property acquired by the city which could otherwise be accomplished only through eminent domain provided that the property must be acquired for a public purpose and just compensation must be paid under the Texas Constitution after obtaining an independent appraisal. substantial interest - any interest which has a value of $5,000.00 or more or represents 10 percent or more of a person's gross income during the most recent calendar year. relative - spouse, father, mother, brother, sister, son, daughter, spouse's children, father in law, mother in law, brother in law, sister in law, son in law, daughter in law and adoptive relationships being treated the same as natural relationships. Sec. 2-313. Effect of Violation. A violation of these Rules of Conduct shall subject the council member, board member or employee to appropriate disciplinary proceedings, but such violation shall not render the action of the city voidable by the city unless the action would not have been approved without the vote of the person who violated the Rules of Conduct. Sec. 2-314. Exceptions to Abstention Requirement. The requirement that a council member or board member abstain from voting on a matter or participating in discussion as contained in Rule 7 of the Rules of Conduct shall not apply in the following situations, provided that such person has complied with the requirements of written disclosure of the interest: (a) In the event a majority of the members of the council or the board, commission or committee have filed a written disclosure of a conflict of interest on the matter and would be required to abstain; or (b) On the final approval of a budget when the person has abstained from a separate vote taken on the particular budget item pertaining to the conflict of interest and action or that particular item has been resolved. Sec. 2-315. Freedom of Expression. Nothing contained in the code of ethics shall abridge the right of any citizen, whether or not a council member, board member or employee, to exercise his or her right of expression under the U.S. or Texas Constitutions. Sec. 2-316 - 2-319. Reserved. 015 4 As Passed First Reads_� DIVISION II. ETHICS COMMISSION. Sec. 2-320. Establishment. An ethics commission is created and shall consist of nine (9) members. The city council shall solicit nominations for the ethics commission from a wide variety of professional and community organizations in the city. Interested individuals may also submit their names for consideration. Members of the commission may not hold or be a candidate for any city elected or appointed office. The city council shall appoint the members of the ethics commission by a two-thirds vote of the full council. Sec. 2-321. Terms. Members shall hold office for three-year terms commencing October 1. In order to establish staggered terms, however, the initial terms of three members shall be one year, and the initial terms of another three members shall be two years. The persons serving such shorter terms shall be determined by lot. No holding over is permitted except as expressly provided in this code of ethics. Sec. 2-322. Removal. In addition to the council's usual powers of removal, members of the commission may be removed by a majority of the council for cause. In considering a complaint filed with the city secretary or on its own initiative, the council may follow the procedures hereinafter set forth regarding the disposition of such alleged violations. Sec. 2-323. Vacancies. All vacancies shall be filled for the unexpired terms. A member shall hold office until his successor has been appointed, and shall continue to hold office after his successor has been appointed for the limited purpose of disposition of all complaints filed and for which presentation of evidence was commenced during that member's term. Sec. 2-324. Chairperson; quorum. The commission shall elect a chairperson and a vice -chairperson. The vice -chairperson shall act as chairperson in the absence of the chairperson or in the event of a vacancy in that position. The officers of the commission shall serve one-year terms. A majority of the members of the commission shall constitute a quorum. Sec. 2-325. Meetings. The commission shall have such meetings as may be necessary to fulfill its responsibilities. The chairperson or any three members may call a meeting provided that reasonable notice is given to each member. The commission shall comply with the Texas Open Meetings Act. 015 5 As Passed First Reading Sec. 2-326. Duties. (a) The commission shall, in addition to its other duties: (1) Prepare and publish pamphlets and other materials explaining the duties of individuals subject to the code of ethics. Such materials shall include instructions to the public about how to obtain information such as financial disclosures, campaign reports, and the like from the city. (2) Review all statements and reports filed with the city. (3) Annually review the code of ethics and make appropriate recommendations to the city council after conducting a public hearing on any such recommendations. (4) Review all public opinions related to the code of ethics that are issued by the city attorney. (5) Prepare and disseminate a report listing all campaign contributions and expenditures for each candidate within 30 days following the deadline for filing the last campaign finance reports for each city council election. For the purposes of this provision, a general election and run-off election shall be considered as a single city council election. (b) The commission may: (1) Adopt rules of procedure for the conduct of its business and to carry out the provisions of the code of ethics, consistent with the code of ethics and other applicable law. (2) Prepare reports and studies to advance the purposes of the code of ethics. (3) Request the city council and city manager to provide such assistance as it may require in the discharge of its duties. Sec. 2-327. Staffing. The commission shall be assigned staff by the city attorney to assist in its duties. The commission shall also designate independent legal counsel, and when complaints are filed, such independent legal counsel may be utilized to advise the commission and participate in hearings. Sec. 2-328. Legal Opinions and Services. (a) Any council member, employee or board member may submit a written request to the city manager for an opinion concerning the meaning or effect of any section, word, or requirement of the code of ethics as it affects such official, employee or board member. The city manager shall submit such request to the city attorney, who will promptly issue a written opinion to the city manager. Such opinion shall be 015 6 As Passed First Reads._ filed with the city secretary with a copy to the requesting person shall constitute an authoritative determination of the meaning of this ordinance, until amended by the council. (b) If a complaint is filed with the ethics commission about any specific action, omission, or alleged conflict of interest by the charged person which has been the subject, in whole or in part, of a city attorney's opinion, the independent legal counsel shall act as the commission's attorney on said complaint. Sec. 2-329. Jurisdiction of Commission. The ethics commission shall have jurisdiction of complaints involving any "city official" which includes the mayor and members of the city council, city manager, deputy and assistant city managers, city secretary, city attorney, department heads, and municipal court judges (including substitute judges), and all members of any board, commission or committee of the city, including the board of any corporation created by the city. Sec. 2-330. Complaints. (a) A sworn complaint alleging violation of the code of ethics shall specify the provisions of the Rules of Conduct alleged to have been violated and facts alleged to constitute the violation., (b) Upon the sworn complaint of any five people filed with the city secretary's office, the commission shall consider possible violations of the code of ethics by city officials and board members and former city officials and board members other than members of this commission. (c) A complaint alleging a violation must be filed with the city secretary within six months from the date the complainants knew or should have known of the action alleged as a violation, and not afterward. (d) Not later than three working days after the city secretary receives a sworn complaint, he or she shall acknowledge receipt to the complainants, and provide a copy to the city attorney, the commission and the person complained against. Not later than 30 days after receipt of a complaint by the city secretary, the commission shall notify in writing the persons who made the complaint and the person complained against whether it intends to schedule a hearing or take other action concerning the complaint. The person complained against shall have ten (10) days to submit a written response to the complaint prior to the commission deciding whether to hold a hearing. The complainants shall have one opportunity within 15 days of any denial of their original complaint by the commission to amend their complaint and refile the same with the commission. (e) Legal fees incurred by the complainants, the Commission, and the party complained against, in an amount determined reasonable by the Commission, shall be paid by the unsuccessful party if the Commission 015 7 As Passed First Reading determines such party's complaint or defense was groundless. "Groundless" means (1) without basis in fact, or (2) not warranted by law or reasonably arguable interpretation thereof. Sec. 2-331. Ex parte communications. After a complaint has been filed and during the pendency of a complaint before the commission, a member of the commission may not communicate directly or indirectly with any party or person about any issue of fact or law regarding the complaint, except at a meeting of the commission. Sec. 2-332. Hearing. (a) The hearing shall be held as expeditiously as possible following the determination by the commission to conduct a hearing on a particular matter. The commission may grant two postponements, not to exceed 15 days each, upon the request of the person complained against; provided, however, the commission may also delay commencement of a hearing for good cause such as a hurricane or unavailability of a material witness. (b) The issue at hearing shall be whether the violation alleged in the complaint occurred. The commission shall make its determination based on the preponderance of credible evidence in the record. All witnesses shall testify under oath. Strict rules of evidence shall not be required; however, the commission shall require that all evidence be of such quality that persons customarily rely on in the conduct of serious affairs. If the commission determines that a violation has occurred, it shall state its findings in writing, shall identify the particular provisions which have been violated, and within five working days shall deliver a copy of the findings to the complainants, the person complained against, and the city secretary. Sec. 2-333. Oaths. If a complaint proceeds to hearing, the commission may subpoena witnesses to attend and testify, administer oaths, take evidence and subpoena the production of books, papers, records, or other evidence needed for the performance of the commission's duties or exercise its powers, including its duties and powers of investigation. Sec. 2-334. Sanctions (a) If the commission determines that a violation occurred, it shall proceed directly to determine its recommendation of appropriate sanctions. The affirmative vote of a majority of the members holding office and qualified to vote shall be required for the determination that a violation has occurred and the recommendation any sanction under this code of ethics. The commission may receive additional testimony or statements before considering sanctions, but is not required to do so. 015 8 As Passed First Reading (b) If the commission determines that a violation has occurred, it may recommend the following: (1) Against a council member or against a board member or city official appointed or confirmed by the council, reprimand, temporary suspension, removal, or any other sanction or corrective action within the power of the city council, or recall by the citizens. (2) Against a city official other than those in (1), that appropriate action be taken, as deemed necessary by the city manager. (c) In determining its recommendation, the commission shall consider the seriousness of the violation, the importance of deterrence, the impact on public confidence in government, the violations' repeated or isolated nature, the mental state with which the violation was committed, and the prior record of the person complained against. The recommendation shall be reduced to writing and transmitted to the supervisory authority and to the person complained against. (d) If the commission finds that conduct occurred which, if willful, would violate the Rules of Conduct, but the commission cannot determine that the conduct was a willful violation because of ambiguity as to the meaning of the standard of conduct involved, the commission will recommend no sanction, but will issue a clarifying interpretation to guide future cases. (e) Nothing in the code of ethics shall change or affect the civil service, at will, or other status of any employee, city official, or board member as established by the city charter and ordinances. (f) The city council or supervisory authority shall consider the recommendation of the commission, but will exercise its own judgment and discretion in determining what action, if any, to take. (g) If the commission determines that a violation of any criminal law has occurred, it shall deliver a copy of its findings to the complainants, the person complained against, and the city attorney, recommending whether prosecution should be initiated or setting forth requirements to be complied with in order that voluntary compliance may be had. Said findings shall also be delivered to the county attorney or district attorney, if a violation may be within their jurisdiction. Sec. 2-335 - 2-339. Reserved. DIVISION III. FINANCIAL DISCLOSURE. Sec. 2-340. Required Reports. On or before the last Friday of April of each year, reporting officials shall file with the city secretary an Annual Report of Financial Information covering January 1 through December 31 of the 015 9 As Passed First Reading previous year. Council members and planning commission members shall also file with the city secretary a Supplemental Report of Financial Information by the last Friday of July of each year covering the most recent January 1 through June 30. Sec. 2-341. Definitions. The following definitions shall apply to these financial disclosure provisions: person - an individual, proprietorship, firm, partnership, joint venture, syndicate, trust, company, corporation, association, committee, estate, receiver, entity, or any other organization or group of persons acting in concert, whether profit or nonprofit. relative - spouse, father, mother, brother, sister, son, daughter, spouse's children, grandfather, son in law, daughter in law, grandmother, uncle, aunt, nephew, niece, grandson, granddaughter, first cousin, father in law, mother in law, brother in law, sister in law, grandfather in law, grandmother in law, uncle by marriage, aunt by marriage, nephew's wife, niece's husband, grandson in law, granddaughter in law, and first cousin's spouse, adoptive relationships being treated the same as natural relationships. reporting official - the mayor and members of the city council, city manager, deputy and assistant city managers, city secretary, city attorney, department heads, municipal court judges (including substitute judges), and all members of the planning commission, ethics commission, civil service board, civil service commission, coastal bend health facilities development corporation, Corpus Christi health facilities development corporation, Corpus Christi housing finance corporation, Corpus Christi housing improvement corporation, Corpus Christi industrial development corporation, and the attorney who serves as local issuer's counsel for and any executive employee hired by the above corporations. Sec. 2-342. Content of Reports. The reports required shall contain the following information for the reporting period by separate listing. In this section, the report for the reporting official shall include all such information for the reporting official's spouse, but information relating to the spouse need not be segregated from that relating to the reporting official. (a) Name and residence address. (b) All professional, occupational, or business licenses held by the reporting official. (c) The names of any businesses with which the reporting official was actively engaged or associated, and the principal address and phone number of each, together with the position or title held. (This list should not include interests in or positions with any businesses which are required to be reported in other provisions of this section.) 015 10 As Passed First Readl...d (d) The names and addresses of all sources of income which exceed 10 percent of the reporting official's gross income, or $5,000 in salary, bonuses, commissions or professional fees, or $20,000 in payment for goods, products or non-professional services. If the reporting official is self employed or owns or controls at least a 20 percent interest in a partnership, corporation or other entity through which the reporting official does business, the reporting official shall also report the names and addresses of the clients or customers who do business with the city from whom the reporting official, partnership, corporation or other entity received at least 10 percent of its gross income. Prior to each reporting deadline, the city shall publish a list of the names and addresses of the persons who do business with the city in the amount of $10,000 or more each year (excluding utility services or the payment of taxes) which reporting officials may rely upon for the purposes of complying with this provision. A reporting official operating a business as a sole proprietor shall not be required to report a client or customer under this subsection he or she would not have to report if operating as a corporation or partnership. (e) The names and addresses of all corporations, partnerships or other business organizations in which the reporting official held, owned, acquired or sold stock or other equity ownership having a value exceeding $5,000 or equivalent to 10 percent or more of the stock or equity in the entity. (f) An itemized list of all real property in Nueces County or any adjoining county in which the reporting official held any legal or equitable ownership with a fair market value of $2,500 or more. The list shall include a description sufficient to locate the property. (g) The name and address of any person to whom the reporting official was indebted in excess of $10,000 together with the dates any such debts were incurred. "Indebted" includes obligations on which the reporting official is a guarantor or co-signer, in which case the names of the borrower and lender shall be listed. (h) The name and address of any person who is an obligor on any note, bond, loan or any other similar obligation, written or unwritten, owed to the reporting official which in the aggregate equal $10,000 or more together with the dates of such obligations. (i) All boards of directors or governing bodies of which the reporting official is a member, and all offices or executive positions the reporting official holds in corporations, partnerships, limited partnerships, professional corporations, associations, or other entities, including non -business and non-profit entities, stating the name of each entity and position held, and excluding entities owned or created by the city. (j) The names and addresses of all persons from whom the reporting official received gifts or favors, including but not limited to trips, excursions, food, lodging, money, commodities or services, cumulatively exceeding $200 in value. The nature and date of each 015 11 As Passed First Reading gift received shall be specified. Provided, however, campaign contributions reported as required by state law and gifts or favors from relatives need not be reported hereunder. Sec. 2-343. Financial Disclosure by Candidates. All candidates for city council shall file an Annual Report of Financial Information covering January 1 through December 31 of the previous year containing the information required by the above sections with the city secretary within five days after filing for office. If the deadline for candidate filing is after June 30, they shall also file a Supplemental Report of Financial Information. If any incumbent candidate has previously filed a report for the appropriate period(s), that report shall satisfy this section. Sec. 2-344. Reports to be Sworn and Maintained. All reports of financial information required by the code of ethics shall be sworn, and shall be preserved for five years as public records. Sec.2-345. Filing dates for Reports. Reports required by this division must be physically filed with the city secretary by 4:45 p.m. on the day required for filing. When the day falls on an official city holiday as established by the city council, the deadline for receipt by the city secretary is extended to 4:45 p.m. of the next day which is not a Saturday or Sunday or official city holiday. Sec. 2-346. Failure to File Report. The failure of a reporting official or employee to file a true and accurate report as required under this code of ethics shall constitute a violation of the Rules of Conduct. In the event a person who has failed to file a required report no longer serves in an official capacity with the city, that person shall be barred from serving as an appointed officer, board member or employee of the city in the future until the required report has been filed. Sec. 2-347. Voluntary Reports. Any city official, employee, or board member may file reports exceeding the requirements of the code of ethics, and said reports shall be preserved in the same manner as required reports. Sec. 2-348. Disclosure of Gifts by Employees. Any employee of the city, whether under civil service or not, who received gifts or favors, including but not limited to trips, excursions, food, lodging, money, commodities, or services, from any person other than a relative cumulatively exceeding $200 in value in any calendar year, shall file a report of the names and addresses of such persons and the date and nature of each gift with the city secretary. The deadline for filing such reports shall be February 1 015 12 As Passed First Reading of each year; provided that, such a separate report shall not be required for any employee who is required to file a report as a reporting official. Sec. 2-349. Disclosure of Interests by Contractors. (a) Any business desiring city council, board, commission or committee consideration or action concerning that business (other than granting an electrician license, solicitation permit and approving a plat) shall, prior to its placement as an agenda item on the public notice of such body, file with the city (and if a vendor, file with the city's purchasing agent) a statement specifically naming any city employee, official and board member having an ownership interest in the business constituting three (3) percent or more of the ownership, or having any pecuniary interest in the transaction or property which is the subject of consideration or action. (b) In the case of any business desiring to sell goods or services to the city (except when the value of the goods or services is not reasonably anticipated to exceed one hundred dollars ($100.00) per calendar year), but which does not require city council, board, commission or committee consideration or action, the business shall file with the city's purchasing agent a statement specifically naming any city employee, official and board member having any ownership interest in the business constituting three (3) percent or more of the ownership, or having any pecuniary interest in the transaction. This provision does not apply to or include the purchase of magazine subscriptions and memberships in professional or trade organizations related to municipal operations. (c) For corporate businesses whose shares are publicly traded and listed on recognized national or regional stock exchanges or over-the- counter markets, it shall be sufficient if a current Securities and Exchange Commission Form 10-K is filed in lieu of the statements required by this section. SECTION 2. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase, word or provision hereof be given full force and effect for its purpose. SECTION 3. Publication shall be made one time in the official publication of the City of Corpus Christi by publishing the caption stating in substance the purpose of the ordinance, this ordinance to become effective upon such publication. 015 13 AN ORDINANCE AMENDING THE CODE OF ORDINANCES, CHAPTER 2, ADMINISTRATION, BY REPEALING ARTICLE V, CODE OF ETHICS, IN ITS ENTIRETY, EXCEPT SEC. 2-317 WHICH IS HEREBY RENUMBERED AS SEC. 2-40, AND SUBSTITUTING THEREFOR A NEW ARTICLE V, CODE OF ETHICS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS SECTION 1. That the Code of Ordinances, Chapter 2, Administration is hereby amended by repealing Article V, Code of Ethics in its entirety, except for Sec. 2-317 which is hereby renumbered as Sec. 2-40, and substituting therefor a new Article V, Code of Ethics to read as follows: CODE OF ETHICS DIVISION I. RULES OF CONDUCT. Sec. 2-311. Standards. The following Rules of Conduct apply to all council members, board members and employees: Special Privileges 1. You shall not use your office for private advancement or gain or to secure special privileges or exemptions for yourself or others. 2. You shall not grant any special consideration, treatment or advantage to any person or group beyond that which is available to others generally. 3. You shall not use city facilities, personnel, equipment or supplies for purposes unrelated to the interests of the city, except to the extent such are lawfully available to the public. 4. Unless you are a council member, you shall not use the prestige of your position with the city on behalf of any political party or cause. Gifts 5. You shall not accept or solicit any money, property, service or other thing of value by way of gift, favor, loan or otherwise that might reasonably tend to influence you in the discharge of your official duties or which you know or should have known was offered with the intent to influence or reward your official conduct. 6. In the event you receive any gift or loan of property or services on behalf of the city, you shall promptly deliver such gift or loan to the city manager for official acceptance and inventory by the city. Conflicts of Interest 7. In the event you or one of your relatives have an interest or any substantial interest in a contract or transaction involving the city which comes before you in the performance of your official duties, you shall make a written disclosure of your interest in the matter and abstain from any vote or decision and not participate in any discussion on the matter. t. LL 8. You shall not engage in any outside activities or employment which will conflict or be incompatible with the full and proper discharge of your official duties, impair your independent judgment in the performance of your duties, or reflect discredit upon the city. 9. You shall not represent any other private person, group or interest in any action or proceeding against or adverse to the interest of the city or in any litigation in which the city is a party. 10. You shall not represent any other private person or group in an action or proceeding in the municipal courts of the city which was instituted by city officers or employees in the course of their official duties. 11. You shall not receive any fee or compensation for your official services from any source other than the city except as may be provided by law or authorized by the city council. Actions Adverse to the City 12. You shall not disclose information that could adversely affect the property or affairs of the city. 13. You shall not knowingly perform or refuse to perform any act in order to deliberately thwart the execution of federal, state or local laws or regulations or the achievement of any official city programs. 14. You shall not engage in any felony crime, misdemeanor involving moral turpitude, or other conduct that reflects discredit upon the city. Provisions for Council Members 15. As a council member, you shall not have a substantial interest in any contract with the city. 16. As a council member, you shall not represent or appear on behalf of any private interest before any board, commission or committee of the city. 17. As a council member, you shall not give any orders to any employee except through the city manager as provided by the city charter. Provisions for Board Members 18. As a board member, you shall not have a substantial interest in any contract with the city in which your board or commission, or the city department related thereto, has jurisdiction. 19. As a board member, you shall not represent or appear on behalf of the private interests of others before your board, commission or committee, the city council, or any board which has appellate jurisdiction over your board, commission or committee, concerning a matter which is within the subject matter jurisdiction of your board. Provisions for Employees 20. As an employee you shall not have an interest in any contract with the city. 21. As an employee, you shall not, within twelve months after leaving city employment, represent any other person or organization in any formal or informal appearance with the city council or any other agency or employee of the city concerning a project for which you had responsibility as an employee. -2- 22. As an employee, you shall not represent or appear on behalf of the private interests of others before the city council or any board, commission or committee of the city. Sec. 2-312. Definitions. The following definitions apply to the above Rules of Conduct. board member - a member of any board, commission or committee of the city, including the board of any corporation created by the city. employee - any person employed by the city whether under civil service or not, including part- time employees but excluding any independent contractor. interest - any direct or indirect pecuniary or material benefit in a contract or transaction other than: (1) an interest which is shared by and available to all other persons similarly situated, or (2) a remote or incidental interest which would not increase or decrease materially due to the action of' the city or is less than $200 in value, or (3) an interest of a subcontractor which has no direct contractual relationship with the city, is receiving fair and reasonable compensation, and is not operating as a subterfuge to circumvent the code of ethics. (4) an interest in real property acquired by the city which could otherwise be accomplished only through eminent domain provided that the property must be acquired for a public purpose and just compensation must be paid under the Texas Constitution after obtaining an independent appraisal. substantial interest - any interest which has a value of $5,000.00 or more or represents 10 percent or more of a person's gross income during the most recent calendar year. relative - spouse, father, mother, brother, sister, son, daughter, spouse's children, father in law, mother in law, brother in law, sister in law, son in law, daughter in law and adoptive relationships being treated the same as natural relationships. Sec. 2-313. Effect of Violation. A violation of these Rules of Conduct shall subject the council member, board member or employee to appropriate disciplinary proceedings, but such violation shall not render the action of the city voidable by the city unless the action would not have been approved without the vote of the person who violated the Rules of Conduct. Sec. 2-314. Exceptions to Abstention Requirement. The requirement that a council member or board member abstain from voting on a matter or participating in discussion as contained in Rule 7 of the Rules of Conduct shall not apply in the following situations, provided that such person has complied with the requirements of written disclosure of the interest: (a) In the event a majority of the members of the council or the board, commission or committee have filed a written disclosure of a conflict of interest on the matter and would be required to abstain; or -3- (b) On the final approval of a budget when the person has abstained from a separate vote taken on the particular budget item pertaining to the conflict of interest and action or that particular item has been resolved. Sec. 2-315. Freedom of Expression. Nothing contained in the code of ethics shall abridge the right of any citizen, whether or not a council member, board member or employee, to exercise his or her right of expression under the U.S. or Texas Constitutions. Sec. 2-316 - 2-319. Reserved. DIVISION II. ETHICS COMMISSION. Sec. 2-320. Establishment. An ethics commission is created and shall consist of nine (9) members. The city council shall solicit nominations for the ethics commission from a wide variety of professional and community organizations in the city. Interested individuals may also submit their names for consideration. Members of the commission may not hold or be a candidate for any city elected or appointed office. The city council shall appoint the members of the ethics commission by a two-thirds vote of the full council. Sec. 2-321. Terms. Members shall hold office for three-year terms commencing October 1. In order to establish staggered terms, however, the initial terms of three members shall be one year, and the initial terms of another three members shall be two years. The persons serving such shorter terms shall be determined by lot. No holding over is permitted except as expressly provided in this code of ethics. Sec. 2-322. Removal. In addition to the council's usual powers of removal, members of the commission may be removed by a majority of the council for cause. In considering a complaint filed with the city secretary or on its own initiative, the council may follow the procedures hereinafter set forth regarding the disposition of such alleged violations. Sec. 2-323. Vacancies. All vacancies shall be filled for the unexpired terms. A member shall hold office until his successor has been appointed, and shall continue to hold office after his successor has been appointed for the limited purpose of disposition of all complaints filed and for which presentation of evidence was commenced during that member's term. Sec. 2-324. Chairperson; quorum. The commission shall elect a chairperson and a vice -chairperson. The vice -chairperson shall act as chairperson in the absence of the chairperson or in the event of a vacancy in that position. The officers of the commission shall serve one-year terms. A majority of the members of the commission shall constitute a quorum. Sec. 2-325. Meetings. The commission shall have such meetings as may be necessary to fulfill its responsibilities. The chairperson or any three members may call a meeting provided that reasonable notice is given to each member. The commission shall comply with the Texas Open Meetings Act. -4- Sec. 2-326. Duties. (a) The commission shall, in addition to its other duties: (I) Prepare and publish pamphlets and other materials explaining the duties of individuals subject to the code of ethics. Such materials shall include instructions to the public about how to obtain information such as financial disclosures, campaign reports, and the like from the city. (2) Review all statements and reports filed with the city. (3) Annually review the code of ethics and make appropriate recommendations to the city council after conducting a public hearing on any such recommendations. (4) Review all public opinions related to the code of ethics that are issued by the city attorney. (5) Prepare and disseminate a report listing all campaign contributions and expenditures for each candidate within 30 days following the deadline for filing the last campaign finance reports for each city council election. For the purposes of this provision, a general election and run-off election shall be considered as a single city council election. (b) The commission may: (1) Adopt rules of procedure for the conduct of its business and to carry out the provisions of the code of ethics, consistent with the code of ethics and other applicable law. (2) Prepare reports and studies to advance the purposes of the code of ethics. (3) Request the city council and city manager to provide such assistance as it may require in the discharge of its duties. Sec. 2-327. Staffing. The commission shall be assigned staff by the city attorney to assist in its duties. The commission shall also designate independent legal counsel, and when complaints are filed, such independent legal counsel may be utilized to advise the commission and participate in hearings. Sec. 2-328. Legal Opinions and Services. (a) Any council member, employee or board member may submit a written request to the city manager for an opinion concerning the meaning or effect of any section, word, or requirement of the code of ethics as it affects such official, employee or board member. The city manager shall submit such request to the city attorney, who will promptly issue a written opinion to the city manager. Such opinion shall be filed with the city secretary with a copy to the requesting person shall constitute an authoritative determination of the meaning of this ordinance, until amended by the council. (b) If a complaint is filed with the ethics commission about any specific action, omission, or alleged conflict of interest by the charged person which has been the subject, in whole or in part, of a city attorney's opinion, the independent legal counsel shall act as the commission's attorney on said complaint. -5- Sec. 2-329. Jurisdiction of Commission. The ethics commission shall have jurisdiction of complaints involving any "city official" which includes the mayor and members of the city council, city manager, deputy and assistant city managers, city secretary, city attorney, department heads, and municipal court judges (including substitute judges), and all members of any board, commission or committee of the city, including the board of any corporation created by the city. Sec. 2-330. Complaints. (a) A sworn complaint alleging violation of the code of ethics shall specify the provisions of the Rules of Conduct alleged to have been violated and facts alleged to constitute the violation. (b) Upon the sworn complaint of any five people filed with the city secretary's office, the commission shall consider possible violations of the code of ethics by city officials and board members and former city officials and board members other than members of' this commission. (c) A complaint alleging a violation must be filed with the city secretary within six months from the date the complainants knew or should have known of the action alleged as a violation, and not afterward. (d) Not later than three working days after the city secretary receives a sworn complaint, he or she shall acknowledge receipt to the complainants, and provide a copy to the city attorney, the commission and the person complained against. Not later than 30 days after receipt of a complaint by the city secretary, the commission shall notify in writing the persons who made the complaint and the person complained against whether it intends to schedule a hearing or take other action concerning the complaint. The complainants shall have one opportunity within 15 days of any denial of their original complaint by the commission to amend their complaint and refile the same with the commission. Sec. 2-331. Ex parte communications. After a complaint has been filed and during the pendency of a complaint before the commission, a member of the commission may not communicate directly or indirectly with any party or person about any issue of fact or law regarding the complaint, except at a meeting of the commission. Sec. 2-332. Hearing. (a) The hearing shall be held as expeditiously as possible following the determination by the commission to conduct a hearing on a particular matter. The commission may grant two postponements, not to exceed 15 days each, upon the request of the person complained against; provided, however, the commission may also delay commencement of a hearing for good cause such as a hurricane or unavailability of a material witness. (b) The issue at hearing shall be whether the violation alleged in the complaint occurred. The commission shall make its determination based on the preponderance of credible evidence in the record. All witnesses shall testify under oath. Strict rules of evidence shall not be required; however, the commission shall require that all evidence be of such quality that persons customarily rely on in the conduct of serious affairs. If the commission determines that a violation has occurred, it shall state its findings in writing, shall identify the particular provisions which have been violated, and within five working days shall deliver a copy of the findings to the complainants, the person complained against, and the city secretary. -6- Sec. 2-333. Oaths. If a complaint proceeds to hearing, the commission may subpoena witnesses to attend and testify, administer oaths, take evidence and subpoena the production of books, papers, records, or other evidence needed for the performance of the commission's duties or exercise its powers, including its duties and powers of investigation. Sec. 2-334. Sanctions. (a) If the commission determines that a violation occurred, it shall proceed directly to determine its recommendation of appropriate sanctions. The affirmative vote of a majority of the members holding office and qualified to vote shall be required for the determination that a violation has occurred and the recommendation any sanction under this code of ethics. The commission may receive additional testimony or statements before considering sanctions, but is not required to do so. If the city official or board member named in the complaint acted in reliance upon a public written opinion of the city attorney, the commission shall consider that fact. (b) If the commission determines that a violation has occurred, it may recommend the following: (1) Against a council member or against a board member or city official appointed or confirmed by the council, reprimand, temporary suspension, removal, or any other sanction or corrective action within the power of the city council, or recall by the citizens. (2) Against a city official other than those in (I), that appropriate action be taken, as deemed necessary by the city manager. (c) In determining its recommendation, the commission shall consider the seriousness of the violation, the importance of deterrence, the impact on public confidence in government, the violations' repeated or isolated nature, the mental state with which the violation was committed, and the prior record of the person complained against. The recommendation shall be reduced to writing and transmitted to the supervisory authority and to the person complained against. (d) If the commission finds that conduct occurred which, if willful, would violate the Rules of Conduct, but the commission cannot determine that the conduct was a willful violation because of ambiguity as to the meaning of the standard of conduct involved, the commission will recommend no sanction, but will issue a clarifying interpretation to guide future cases. (e) Nothing in the code of ethics shall change or affect the civil service, at will, or other status of any employee, city official, or board member as established by the city charter and ordinances. (f) The city council or supervisory authority shall consider the recommendation of the commission, but will exercise its own judgment and discretion in determining what action, if any, to take. (g) If the commission determines that a violation of any criminal law has occurred, it shall deliver a copy of its findings to the complainants, the person complained against, and the city attorney, recommending whether prosecution should be initiated or setting forth requirements to be complied with in order that voluntary compliance may be had. Said findings shall also be delivered to the county attorney or district attorney, if a violation may be within their jurisdiction. Sec. 2-335 - 2-339. Reserved. -7- DIVISION III. FINANCIAL DISCLOSURE. Sec. 2-340. Required Reports. On or before the last Friday of April of each year, reporting officials shall file with the city secretary an Annual Report of Financial Information covering January 1 through December 31 of the previous year. Council members and planning commission members shall also file with the city secretary a Supplemental Report of Financial Information by the last Friday of July of each year covering the most recent January 1 through June 30. Sec. 2-341. Definitions. The following definitions shall apply to these financial disclosure provisions: person - an individual, proprietorship, firm, partnership, joint venture, syndicate, trust, company, corporation, association, committee, estate, receiver, entity, or any other organization or group of persons acting in concert, whether profit or nonprofit. relative - spouse, father, mother, brother, sister, son, daughter, spouse's children, grandfather, son in law, daughter in law, grandmother, uncle, aunt, nephew, niece, grandson, granddaughter, first cousin, father in law, mother in law, brother in law, sister in law, grandfather in law, grandmother in law, uncle by marriage, aunt by marriage, nephew's wife, niece's husband, grandson in law, granddaughter in law, and first cousin's spouse, adoptive relationships being treated the same as natural relationships. reporting official - the mayor and members of the city council, city manager, deputy and assistant city managers, city secretary, city attorney, department heads, municipal court judges (including substitute judges), and all members of the planning commission, the ethics commission, the civil service board and the civil service commission. Sec. 2-342. Content of Reports. The reports required shall contain the following information for the reporting period by separate listing. In this section, the report for the reporting official shall include all such information for the reporting official's spouse, but information relating to the spouse need not be segregated from that relating to the reporting official. (a) Name and residence address. (b) All professional, occupational, or business licenses held by the reporting official. (c) The names of any businesses with which the reporting official was actively engaged or associated, and the principal address and phone number of each, together with the position or title held. (This list should not include interests in or positions with any businesses which are required to be reported in other provisions of this section.) (d) The names and addresses of all sources of income which exceed 10 percent of the reporting official's gross income, or $5,000 in salary, bonuses, commissions or professional fees, or $20,000 in payment for goods, products or non-professional services. If the reporting official is self employed or owns or controls at least a 20% interest in a partnership, corporation or other entity through which the reporting official does business, the reporting official shall also report the names and addresses of the clients or customers who do business with the city from whom the reporting official, partnership, corporation or other entity received at least 10% of its gross income. Prior to each reporting -8- deadline, the city shall publish a list of the names and addresses of the persons who do business with the city in the amount of $10,000 or more each year (excluding utility services or the payment of taxes) which reporting officials may rely upon for the purposes of complying with this provision. A reporting official operating a business as a sole proprietor shall not be required to report a client or customer under this subsection he or she would not have to report if operating as a corporation or partnership (e) The names and addresses of all corporations, partnerships or other business organizations in which the reporting official held, owned, acquired or sold stock or other equity ownership having a value exceeding $5,000 or equivalent to 10 percent or more of the stock or equity in the entity. (f) An itemized list of all real property in Nueces County or any adjoining county in which the reporting official held any legal or equitable ownership with a fair market value of $2,500 or more. The list shall include a description sufficient to locate the property. (g) The name and address of any person to whom the reporting official was indebted in excess of $10,000 together with the dates any such debts were incurred. "Indebted" includes obligations on which the reporting official is a guarantor or co-signer, in which case the names of the borrower and lender shall be listed. (h) The name and address of any person who is an obligor on any note, bond, loan or any other similar obligation, written or unwritten, owed to the reporting official which in the aggregate equal $10,000 or more together with the dates of such obligations. (i) All boards of directors or governing bodies of which the reporting official is a member, and all offices or executive positions the reporting official holds in corporations, partnerships, limited partnerships, professional corporations, associations, or other entities, including non -business and non-profit entities, stating the name of each entity and position held, and excluding entities owned or created by the city. (j) The names and addresses of all persons from whom the reporting official received gifts or favors, including but not limited to trips, excursions, food, lodging, money, commodities or services, cumulatively exceeding $200 in value. The nature and date of each gift received shall be specified. Provided, however, campaign contributions reported as required by state law and gifts or favors from relatives need not be reported hereunder. Sec. 2-343. Financial Disclosure by Candidates. All candidates for city council shall file an Annual Report of Financial Information covering January 1 through December 31 of the previous year containing the information required by the above sections with the city secretary within five days after filing for office. If the deadline for candidate filing is after June 30, they shall also file a Supplemental Report of Financial Information. If any incumbent candidate has previously filed a report for the appropriate period(s), that report shall satisfy this section. Sec. 2-344. Reports to be Sworn and Maintained. All reports of financial information required by the code of ethics shall be sworn, and shall be preserved for five years as public records. -9- Sec. 2-345. Filing Dates for Reports. Reports required by this division must be physically filed with the city secretary by 4:45 p.m. on the day required for filing. When the day falls on an official city holiday as established by the city council, the deadline for receipt by the city secretary is extended to 4:45 p.m. of the next day which is not a Saturday or Sunday or official city holiday. Sec. 2-346. Failure to File Report. The failure of a reporting official or employee to file a true and accurate report as required under this code of ethics shall constitute a violation of the Rules of Conduct. In the event a person who has failed to file a required report no longer serves in an official capacity with the city, that person shall be barred from serving as an appointed officer, board member or employee of the city in the future until the required report has been filed. Sec. 2-347. Voluntary Reports. Any city official, employee, or board member may file reports exceeding the requirements of the code of ethics, and said reports shall be preserved in the same manner as required reports. Sec. 2-348. Disclosure of Gifts by Employees. Any employee of the city, whether under civil service or not, who received gifts or favors, including but not limited to trips, excursions, food, lodging, money, commodities, or services, from any person other than a relative cumulatively exceeding $200 in value in any calendar year, shall file a report of the names and addresses of such persons and the date and nature of each gift with the city secretary. The deadline for filing such reports shall be February 1 of each year; provided that, such a separate report shall not be required for any employee who is required to file a report as a reporting official. Sec. 2-349. Disclosure of Interests by Contractors. (a) Any business desiring city council, board, commission or committee consideration or action concerning that business (other than granting an electrician license, solicitation permit and approving a plat) shall, prior to its placement as an agenda item on the public notice of such body, file with the city (and if a vender, file with the city's purchasing agent) a statement specifically naming any city employee, official and board member having an ownership interest in the business constituting three (3) percent or more of the ownership, or having any pecuniary interest in the transaction or property which is the subject of consideration or action. (b) In the case of any business desiring to sell goods or services to the city (except when the value of the goods or services is not reasonably anticipated to exceed one hundred dollars ($100.00) per calendar year), but which does not require city council, board, commission or committee consideration or action, the business shall file with the city' purchasing agent a statement specifically naming any city employee, official and board member having any ownership interest in the business constituting three (3) percent or more of the ownership, or having any pecuniary interest in the transaction. This provision does not apply to or include the purchase of magazine subscriptions and memberships in professional or trade organizations related to municipal operations. (c) For corporate businesses whose shares are publicly traded and listed on recognized national or regional stock exchanges or over-the-counter markets, it shall be sufficient if a current Securities and Exchange Commission Form 10-K is filed in lieu of the statements required by this section. -10- SECTION 2. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase, word or provision hereof be given full force and effect for its purpose. SECTION 3. Publication shall be made one time in the official publication of the City of Corpus Christi by publishing the caption stating in substance the purpose of the ordinance, this ordinance to become effective upon such publication. 1117/.ACO -11- That the foregoing ordinance was read for the first time and passed to its second reading on this the day of 19: , by the following vote: Betty N. Turner I, Edward A. Martin David Berlanga, Sr. Joe McComb % 1 Leo Guerrero Clif Moss Tom Hunt Mary Rhodes Frank Schwing, Jr. That the foregoing ordinance was read for the second time and passed to its third reading on this the day of , 19 , by the following vote: Betty N. Turner Edward A. Martin David Berlanga, Sr. Joe McComb Leo Guerrero Clif Moss Tom Hunt Mary Rhodes Frank Schwing, Jr. That the foregoing ordinance was read for the third time and passed finally on this the day of , 19 , by the following vote: Betty N. Turner Edward A. Martin David Berlanga, Sr. Joe McComb Leo Guerrero Clif Moss Tom Hunt Mary Rhodes Frank Schwing, Jr. PASSED AND APPROVED, this the,day of 19 ATTEST: City Secretary MAYOR APPROVED: 4 DAY OF HAL GEORGE, CITY ATTORNEY tant City Attorn 99.044.01 THE CITY OF CORPUS CHRISTI, TEXAS 2(1781 N is z N H In n 7 O b a in [T] N in'0 to IN- n H .. " 0-01 k CrLO O O ''17 cn ("1 O cn upz H H )39c:' ...11._r OF PASSAGE OF ORDINANCE #20781 AMENDING THE HCODE ER F ORDINANCES, 'ADMINISTRATION, BY RE- PEALING ARTICLE V, CODE OF ETHICS IN ITS ENTIRETY EXCEPT 2-317 IS HEREBYEC RENUMBE EDTCF A` SEC. 2-40 AND TUT NG THEREFOREU ATINEV ARTICLE V, CODE OF ETHICS. Was passed and approve by the City Council of the Ci of Corpus Christi, Texas c the 19th day of Septembe 1989. The full text of sal ordinance is available to th public in the Office of the Gt Secretary Is/ Armando Chap: Cay Secretary Cuc of Corpus Christ. : 7�