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Agenda Packet TC 06/07/2010Town Council Trophy Club Entities Meeting Agenda 100 Municipal Drive Trophy Club, Texas 76262 Svore Municipal Building Boardroom7:00 PMMonday, June 7, 2010 Call to order and announce a quorum. Invocation Pledges: Pledge of allegiance to the American Flag. Pledge of allegiance to the Texas Flag. "Honor the Texas flag; I pledge allegiance to thee, Texas, one state under God, one and indivisible." Citizen Presentations: This is an opportunity for citizens to address the Council on any matter whether or not it is posted on the agenda. The Council is not permitted to take action on or discuss any presentations made to the Council at this time concerning an item not listed on the agenda. The Council will hear presentations on specific agenda items prior to the Council addressing those items. You may speak up to three (3) minutes or the time limit determined by the Mayor or presiding officer. To speak during this item you must complete the Speaker's form that includes the topic(s) of your statement. Topics of presentation should be limited to matters over which the Council has authority. CONSENT AGENDA All matters listed as Consent Agenda are considered to be routine by the Town Council and will be enacted by one motion. There will not be a separate discussion of these items. If discussion is desired, that item will be removed from the consent agenda and will be considered separately. 1.2010-295-T Consider and take appropriate action regarding the Minutes dated May 17, 2010. May 17, 2010 Minutes.pdfAttachments: 2.2010-296-T Consider and take appropriate action regarding the Minutes dated May 19, 2010. May 19, 2010 Minutes.pdfAttachments: REGULAR SESSION Town Council 1 of 145 Meeting Date: June 7, 2010 June 7, 2010Town Council Meeting Agenda 3.2010-206-T Consider and take appropriate action regarding the creation of a Code of Conduct/Ethics Ordinance and the establishment of an Ethics Commission. Charter Ethics.pdf Ethics Section from Elected-Appointed Official Handbook.pdf 8_3_09_Ethics Ord_Staff.pdf ROSE Draft Code of Ethics & Conduct Proposal (-TE) Rev 1.pdf ROSE Draft TC Code of Ethics Conduct Proposal Rev 3.pdf ROSE Draft TC Code of Ethics & Conduct Proposal Rev 4.pdf Business Points_Code of Ethics Conduc_Rev 4.pdf Attachments: 4.2010-252-T Consider and take appropriate action regarding a Resolution nominating a new primary and alternate representative to the Regional Transportation Committee or chose to keep the current Primary representative, Rudy Durham, Deputy Mayor Pro Tem, City of Lewisville and Alternate, Jody Smith, Mayor, Town of Flower Mound. RTC Representative.pdf Lewisville RTC.pdf Res. 2010-XX RTC Nomination.pdf Attachments: 5.2010-297-T Consider and take appropriate action regarding a Resolution approving the renaming of Northwest Park to Independence Park. Res 2010- Renaming Northeast Park to Freedom.pdfAttachments: 6.2010-300-T Receive Council Member Rose's liaison report regarding the May 18, 2010 TCMUD1 Meeting; discussion of same. 7.2010-298-T Acting Town Manager Seidel's update regarding the following; discussion of the same. 1. Safe Routes to School Project (SRTS) bid opening 2. Manager's Retreat 3. Pool Update 8.2010-299-T Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same. 9.2010-301-T Items for Future Agendas. Items for Future Agendas.pdfAttachments: EXECUTIVE SESSION 10.2010-302-T Council to convene into executive session to discuss or deliberate the appointment, employment, evaluation, reassignment, duties, discipline or dismissal of a public officer or employee pursuant to Section 551.074 (a) (1) of the Texas Open Meetings Act Personnel Matters (§551.074(a)(1)): (1) Appointment of Mayor Pro Tem. RECONVENE INTO REGULAR SESSION Town Council 2 of 145 Meeting Date: June 7, 2010 June 7, 2010Town Council Meeting Agenda 11.2010-303-T Consider and take appropriate action regarding the Executive Session, Item #2010-302. ADJOURN * The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the front window of the Svore Municipal Building, 100 Municipal Drive, Trophy Club, Texas, on Friday, June 4, 2010 by 5:00 P.M. in accordance with Chapter 551, Texas Government Code. ______________________________________ Lisa Hennek, Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please contact the Town Secretary’s Office at 682-831-4600, 48 hours in advance and reasonable accommodations will be made to assist you. I certify that the attached notice and agenda of items to be considered by this Board was removed by me from the front window of the Svore Municipal Building, 100 Municipal Drive, Trophy Club, Texas, on the __________ day of ______________________, 2010. ________________________________, Title: ___________________________ Town Council 3 of 145 Meeting Date: June 7, 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-295-T Name: Status:Type:Agenda Item Consent Agenda File created:In control:5/24/2010 Town Council On agenda:Final action:6/7/2010 Title:Consider and take appropriate action regarding the Minutes dated May 17, 2010. Attachments:May 17, 2010 Minutes.pdf Action ByDate Action ResultVer. Town Council 4 of 145 Meeting Date: June 7, 2010 12010-295-T Version:File #: Title Consider and take appropriate action regarding the Minutes dated May 17, 2010. Town Council 5 of 145 Meeting Date: June 7, 2010 MINUTES FROM REGULAR SESSION TOWN COUNCIL MEETING FOR THE TOWN OF TROPHY CLUB LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS Monday, May 17, 2010 7:00 PM Svore Municipal Building Boardroom STATE OF TEXAS § COUNTY OF DENTON § The Town Council of the Town of Trophy Club, Texas, met in a Regular Session on Monday, May 17, 2010. The meeting was held within the boundaries of the Town and was open to the public. TOWN COUNCIL MEMBERS PRESENT: Connie White Mayor Glenn Strother Mayor Pro Tem Susan Edstrom Council Member Philip Sterling Council Member Bill Rose Council Member J.D. Stotts Council Member (Elect) Margi Cantrell Council Member (Elect) Larry Hoover Council Member (Elect) STAFF AND GUEST(S) PRESENT: Stephen Seidel Acting Town Manager Lisa Hennek Town Secretary Patricia Adams Town Attorney Scott Kniffen Police Chief Danny Thomas Fire Chief Kathy DuBose Finance Director Chris King Building Inspector Adam Adams Parks Director Mayor White announced the date of May 17, 2010, called to meeting to order and announced a quorum at 7:00 p.m. Invocation offered by Fire Chief Danny Thomas. Pledges led by Parks & Recreation Director Adam Adams. Mayor White explained the proceedings for the meeting. TCMUD No. 1 Co-President, Dean Henry announced a quorum. The following Directors were in attendance: Jim Budarf, Jim Thomas, Dean Henry, Gary Cantrell, Steven Kohs, Jim Hase and Kevin Carr. CITIZEN PRESENTATIONS Jim Thomas, 7 Meadowbrook Lane – (See attached) Karen Passiak, 18 Overhill Drive – Thanked all who voted for her and Council members Edstrom and Sterling and congratulated the new Council members. 1 Town Council 6 of 145 Meeting Date: June 7, 2010 CONSENT AGENDA 1. 2010-174-T Consider and take appropriate action regarding the Minutes dated March 22, 2010. 2. 2010-219-T Consider and take appropriate action regarding the Minutes dated April 12, 2010. 3. 2010-265-T Consider and take appropriate action regarding the Minutes dated April 26, 2010. 4. 2010-254-T Consider and take appropriate action regarding an Interlocal Agreement between the Town of Trophy Club and Tarrant County Emergency Services District No. One for the use of Town's personnel and equipment to provide Emergency Medical Services to specified service areas outside of the boundaries of the Town of Trophy Club, and authorizing the Mayor or her designee to execute necessary documents. Mayor White noted corrections made to the April 26, 2010 Minutes. Motion made by Edstrom, seconded by Rose to approve the Consent Agenda Items 2 – 5 with the corrections to the April 26, 2010 Minutes. Motion passed unanimously without any discussion. PUBLIC HEARING TIME OPENED: 7:12 p.m. 5. 2010-241-T Public Hearing to Consider an Amendment to PD-Planned Development District No. 27, known as The Highlands at Trophy Club, Ordinance No. 2007-15 P&Z by amending Exhibit "B" - Development Standards, Section III. "Definitions" and Section IV. "Lot Type Regulations" for Lot Types 1, 2, 3, and 4, and other miscellaneous changes to PD-27 as necessary regarding this request. Applicant: High Trophy Development, LLC, Represented by Steve Lenart, Lenart Development Company, LLC (PD AMD-10-034). Mayor White stated that this request was discussed in detail at the Planning & Zoning Commission meeting on May 6, 2010. At the suggestion and recommendation of the Building Inspector, Chris King, the Commission is making a recommendation to Council that Lot Coverage remain as is for all lot types in The Highlands, but, for Lot Types 1, 2, 3, and 4 (only), an additional 3% lot coverage be allowed for “Open Air Structures” only. Lot Type 5 is excluded from the additional 3% lot coverage as Lot Type 5 lots are smaller in size -- minimum 5,250 sq. ft. lot size -- and already are allowed 50%-60% lot coverage. Giving a 3% allowance to Lot Types 1 through 4 for an open air structure will allow staff to have guidance and flexibility with the builders for these types of structures in The Highlands. Staff will track the allowances for each lot. No one addressed the Council. TIME CLOSED: 7:13 p.m. REGULAR SESSION 6. 2010-242-T Consider and take appropriate action regarding an Amendment to PD-Planned Development District No. 27, known as The Highlands at Trophy Club, Ordinance No. 2007-15 P&Z by amending Exhibit "B" - Development Standards, Section III. "Definitions" and Section IV. "Lot Type Regulations" for Lot Types 1, 2, 3, and 4, and other miscellaneous changes to PD-27 as necessary regarding this request. Applicant: High Trophy Development, LLC, Represented by Steve Lenart, Lenart Development Company, LLC (PD AMD-10-034) 2 Town Council 7 of 145 Meeting Date: June 7, 2010 Motion made by Edstrom, seconded by Rose to approve an Amendment to PD-Planned Development District No. 27, known as The Highlands at Trophy Club, Ordinance No. 2007-15 P&Z by amending Exhibit "B" - Development Standards, Section III. "Definitions" and Section IV. "Lot Type Regulations" for Lot Types 1, 2, 3, and 4, and other miscellaneous changes to PD-27 as necessary regarding this request. Motion passed unanimously without any discussion. 7. 2010-135-T Consider and take appropriate action regarding a Preliminary Plat for an approximate 46.413 acre tract of land situated in the R. Allen Survey, Abstract No. 5, to be known as Neighborhood 8 of The Highlands at Trophy Club. Applicant: Jacobs Engineering Group Inc. on behalf of Lennar Homes of Texas. (PP-10-018) Mayor White stated the Preliminary Plat was approved by the Planning and Zoning Committee. Motion made by Edstrom, seconded by Strother to approve a Preliminary Plat for an approximate 46.413 acre tract of land situated in the R. Allen Survey, Abstract No. 5, to be known as Neighborhood 8 of The Highlands at Trophy Club. Council member Rose stated his concerns with the following: Differences of setback on some lots The note regarding minimum 50 or 55 feet width lot differences Drainage issues The 15 foot pipeline easement Rose clarified that his concerns will be resolved in the final plat. Motion passed unanimously without further discussion. 8. 2010-294-T Presentation of the second quarter report for 2009-2010 fiscal year through March 2010; discussion of same. Presentation only, no action. (Presentation attached.) Acting Town Manager Seidel announced that the Town has been awarded the Government Financial Officers Association (GFOA) Distinguished Budget Award for the first time in our history. There were only 109 municipalities in Texas that received this award and only 1,100 in the US and Canada (that includes ALL government entities, i.e. school districts, counties, cities, states, etc). 9. 2010-257-T Consider and take appropriate action regarding financial and variance report dated April 2010. Mayor White questioned the franchise fee and commented that revenues for building permits are at 80% of the budget which is exciting. Finance Director Kathy DuBose explained that TXU is the largest franchise fee and that it comes in late in the year. Motion made by Edstrom, seconded by Sterling to approve the financial and variance report dated April 2010. Motion passed unanimously without further discussion. 10. 2010-259-T Consider and take appropriate action regarding an Ordinance canvassing the returns and declaring the results of the Joint General and Special Election held on May 8, 3 Town Council 8 of 145 Meeting Date: June 7, 2010 Mayor White thanked all of the Election Workers for all of their hard work Mayor White corrected the total votes cast in the Ordinance is 1,310 not 1,610 as stated. Motion made by Edstrom, seconded by Strother to approve an Ordinance canvassing the returns and declaring the results of the Joint General and Special Election held on May 8, 2010 for the purpose of electing one (1) Council Member for Place #2, one (1) Council Member for Place #3, one (1) Council Member for Place #4, and one (1) Council Member for Place #5, and for the purpose of submitting Proposition One reauthorizing the local sales and use tax in the Town at a rate of one-fourth of one percent (0.25%) to continue providing revenue for maintenance and repair of municipal streets, to the qualified voters of the Town, and providing an effective date, as amended. Motion passed unanimously without further discussion. 11. 2010-260-T Remarks by outgoing Council Members. Mayor White presented gifts to Council members Edstrom (1999-10), Sterling (2006-10) and Wilson (2006-10). Council members Edstrom and Sterling made outgoing remarks. The following citizens thanked Council members Edstrom and Sterling for their service. Barry Huizenga, 120 Greenhill Trail Jodi Ashby, 4 Mesa Verde Ct Dave Edstrom, 269 Oak Hill Drive Bill Matthai, 500 Indian Creek Jason McGrew, 18 Hunters Ridge Lane Nick Sanders, 7 Hayes Court Lynda Sanders, 7 Hayes Court No action taken. Council took a brief recess. Council reconvened into Session. 12. 2010-261-T Oath of Office to be administered by Municipal Court Judge, Mark Chambers, Presentation of Certificate of Election from the Mayor to Incoming Council Members and remarks by Incoming Council Members. Municipal Judge Mark Chambers administered the Oaths of Office for J.D. Stotts – Place 2, Margi Cantrell – Place 3, Larry Hoover – Place 4 and Glenn Strother – Place 5. Mayor White presented Certificates of Election to the four and all made brief remarks. Kathleen Wilson, 34 Meadowbrook Lane – Welcomed and congratulated the new Council members. 4 Town Council 9 of 145 Meeting Date: June 7, 2010 13. 2010-255-T Staff to provide a recap of the Arbor Day festivities, discussion of same. Parks Director Adam Adams provided a recap of the Arbor Day festivities. (Presentation attached.) No action taken. 14. 2010-253-T Consider and take appropriate action regarding an Agreement between the Town of Trophy Club and JPMorgan Chase Bank, N.A. for participation in procurement cards and corporate travel charge card programs. Mayor White explained that the agreement transfers the Town’s current Bank of America procurement card program to the State of Texas' program through JP Morgan Chase. The agreement merely changes the bank not the process. Motion made by Rose, seconded by Cantrell to approve an Agreement between the Town of Trophy Club and JPMorgan Chase Bank, N.A. for participation in procurement cards and corporate travel charge card programs. Motion passed unanimously without any discussion. 15. 2010-256-T Consider and take appropriate action regarding the submission of the Assistance to Firefighters Grant (AFG), and authorizing the Mayor or her designee to execute necessary documents. Mayor White stated that this year’s grant application for the Assistance to Firefighters Grant (AFG) will be used to enhance and upgrade emergency medical equipment. Fire Chief Thomas explained that there are three parts to this Grant; AFG, State Homeland and Forest. The request for this application will be $80,000 with a cost share of 5% at $4,000. The grant share will be added to the 2010-11 Budget. Acting Town Manager Seidel commended the Fire, Police and Parks departments for being aggressive and creative in finding alternative funding solutions to supplement their budgets. Motion made by Strother, seconded by Rose to approve the submission of the Assistance to Firefighters Grant (AFG), and authorizing the Mayor or her designee to execute necessary documents. Motion passed unanimously without further discussion. 16. 2010-288-T Consider and take appropriate action regarding an Ordinance amending Section 8.12, entitled “Community Pool” of Article VIII entitled, “Schedule of Fees” of Chapter 1, entitled “Administration” of the Code of Ordinances, implementing pool admission fees. Mayor White stated that on January 5, 2010, the Park and Recreation Board considered implementing pool admission fees. Pearl Ford, 2 Spring Creek Court - Questioned if the Swim Team would be charged fees. Jim Budarf, 547 Indian Creek Court – Questioned if residents would see a decrease in taxes once fees are implemented. 5 Town Council 10 of 145 Meeting Date: June 7, 2010 Mayor White explained that the bonds are utilized specifically for the building the pools and splash park, the fees are for maintenance. Council member Stotts added that there is no way to offset the fees at this point. Council member Cantrell suggested that the Council consider a flat fee of $65 for resident family. Council member Stotts agreed that the fees need to be simple. Stotts said that he was discouraged that Council did not discuss this in April when Parks Director Adams first asked the former Town Manager to add an item to the agenda. Council member Rose suggested that ‘off season’ be defined. Parks Director Adams explained that in an effort to advertise pool fees, fees will not be charged the first week the pool is opened. Motion made by Stotts, seconded by Strother to approve an Ordinance amending Section 8.12, entitled “Community Pool” of Article VIII entitled, “Schedule of Fees” of Chapter 1, entitled “Administration” of the Code of Ordinances, implementing pool admission fees, with a fixed family resident fee of $65 and non- resident rate fee of $200, adding the definition of off season (Off Season Daily Rate means the period outside of the normal operating season of the pool), effective June 5. Nick Sanders, 7 Hayes Court – Does not support or agree that Council should implement fees. Council member Hoover agreed that fees should not be charged. Hoover disliked the argument that other cities charge, as he does not live in other cities, he lives in Trophy Club. Council discussed who is covered under the family registration. Parks Director Adams explained that the registration system is well versed to work with extended families Council member Stotts called the question Mayor Pro Tem Strother commented that fees have been discussed during previous year’s budget sessions and the Council has to consider the tax rate and fees when determining how to provide the level of services requested by the residents. Mayor White allowed comments from: Gary Cantrell, 1105 Sunset Drive Jim Thomas, 7 Meadowbrook Lane Motion passed 5:1, with Hoover voting against. Mayor White moved up item #18. 18. 2010-208-T Consider and take appropriate action regarding the Town Council's relationship with TCMUD No. 1 relative to the SEMO status and to the hiring of a new Town Manager. TCMUD No. 1 Director Jim Hase gave a brief history of the SEMO Committee and explained the services that would be split. Mayor White said that former Town Manager Emmons, Mayor Pro Tem Strother, Council member Rose and herself met and discussed the options. White explained that the option presented keeps everyone on the same insurance and same financial systems, yet the details of the daily operations will fall back on the respective managers. 6 Town Council 11 of 145 Meeting Date: June 7, 2010 Acting Town Manager Seidel said that he has had several discussions with District Manager Robert Scott regarding the details, but first, they need direction from the Council and TCMUD1 Board. The Council discussed financial integration, confirmed that the figures provided are from last year’s budget and that Council would be voting to approve Column C.1. Mayor Pro Tem Strother thanked the SEMO Committee for their work. Strother explained that the Town will have a contract for services with the MUD for certain services and the purpose of action tonight is to allow both entities to begin working on their budgets. Strother verified that the Council is depending on Acting Town Manager Seidel to fine tune the details with the MUD District Manager. Town Attorney Patricia Adams counseled that the motion should include the option or the column. Mayor White said that the amount cannot be final until the actual Agreement with the business points is decided upon. Motion made by Strother, seconded by Stotts to authorize staff to draft a contract for services with TCMUD No. 1, starting in the amount of $228,075.63 for FY 2010-11, that can be adjusted as agreed upon by both boards. Nick Sanders, 7 Hayes Court – Asked the Council to reconsider locking in a specific amount until the details can be worked out. Town Attorney Adams stated that a specific amount does not need to be set yet, the Council just needs to approve an overall plan. Adams said that she has been working with MUD Secretary Mary Moore, trying to get the concepts down and leaving blanks where the numbers will be. This item will not be ultimately approved until Council approves the Contract document outlining all details. TCMUD No. 1 Director Jim Hase stated that $228,075.63 is the number currently before the house, but it could change slightly as the budget process goes forward. Mayor Pro Tem Strother said that he wanted to provide a number that the Council is working towards and that both entities will be flexible with the amount. Strother amended his motion that the amount of $228,075 be subject to change based on final budget by both parties, the second agreed. The amendment passed unanimously without further discussion. The main motion authorizing staff to draft a contract for services with TCMUD No. 1, starting in the amount of $228,075.63, and subject to change based on final budget by both parties, for FY 2010-11, that can be adjusted as agreed upon by both boards passed unanimously without further discussion. Mayor White gave a brief update of the Town Manager opening. Interviews have been completed by the consultant with all newly elected, the former council members and the MUD District Manager. The process will be moving forward quickly. 17. 2010-178-T Consider and take appropriate action regarding Meeting dates for the July, August and September Regular Town Council meetings. Acting Town Manager Seidel said that Denton County moved up their deadline for cities to adopt a tax rate and explained the deadlines as required by the Charter. Finance Director Kath DuBose added that Denton County’s deadline is making the budget process very challenging. Council is scheduled to review assumptions in June, action plans and capital improvement 7 Town Council 12 of 145 Meeting Date: June 7, 2010 plans in July, and the Management letter is due to Council in August. Acting Town Manager Seidel and Finance Director DuBose encouraged the Council to make appointments with them should they wish to discuss individual budgets. Council discussed their preference of workshops or longer meetings. Mayor White questioned if one meeting in July is adequate to conduct normal business. Acting Town Manager Seidel stated that the holiday and vacations, it should be fine, however if determined later, a special meeting can be called. Council member Cantrell stated that there is a dire need for an update on the entire PID. Town Attorney Adams responded that the PID will be covered in the budget with the annual Service and Assessment Plan and the annual update of the Emergency Services Plan. Acting Town Manager stated that Staff will be predicting budget assumptions on the goals the Council set and recommended the following meeting dates: June 21 - Regular Session - 5:00 - 7:00 P.M. (Budget Overview) July 5 - Regular Session - Cancelled July 19 - Regular Session - 6:00 - 7:00 P.M. (Budget Update) August 2 - Regular Session - 5:00 - 7:00 P.M. (Proposed Budget Overview) August 9 - If necessary - Special Session 6:00 P.M. (Budget Discussion) August 16 - Regular Session - 6:00 - 7:00 P.M. (Budget Discussion) August 23 - If necessary - Special Session 6:00 P.M. (Budget Discussion) August 30 - If necessary - Special Session 6:00 P.M. (Budget Discussion) September 6 - Regular Session (Labor Day) CANCEL and move to September 13 September 13 - Regular Session - 6:00 - 7:00 P.M. (Budget Discussion) 1st Public Hearing on Tax Rate and Public Hearing on PID SAP September 20 - Regular Session - 6:00 - 7:00 P.M. (Budget Discussion) 2nd Public Hearing on Tax Rate, Budget Public Hearing and approve PID SAP September 27 - Special Session 7:00 P.M - Budget Adoption, Tax Rate Adoption, Tax Roll Approval and Vote to ratify property tax revenue Motion made by Cantrell, seconded by Hoover to approve the meeting dates as recommended by Staff. Motion passed unanimously without further discussion. 19. 2010-264-T Items for future Agendas. Council member Stotts asked for a financial and operational update on the PID going back to January 1, 2010, the status on the PID Amenity Lakes and whether Council has accepted yet and that the PID Administrator be present. Council member Cantrell asked to have a timeline presented with PID update. Acting Town Manager Seidel said that he would try to have the PID update at the first meeting in June. Council said the second meeting in June was fine. 20. 2010-262-T Acting Town Manager Seidel's update regarding the following; discussion of the same. 1. Drainage Study Update – Anticipates $150,000 for part one. 2. Bobcat Blvd. – Ribbon cutting scheduled for May 26, 2010 at 10:00 a.m. Trophy Club city limit street signs have been ordered. 8 Town Council 13 of 145 Meeting Date: June 7, 2010 9 3. Fire Department Pancake Breakfast/Hot Dog Lunch – This was a huge success on Election Day; $759.00 was raised. 21. 2010-263-T Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same. FitCities Walk with the Mayor – Continues her walks three times a week. Mayor's Roundtable (Northwest Metroport Chamber) – The last meeting featured a presentation on sales tax and how it is allocated. The next meeting is on the trails. Anniversary Planning Committee – This Committee is continuing to meet and there will be a lot of fun events planned. Sponsor letters have gone out and EDC 4B did approve funds for this event. Fire Station Groundbreaking – The groundbreaking was well attended. Northwest Metroport Chamber Luncheon – The Chair, Tarra Green for the Super Bowl spoke at the last luncheon. National Day of Prayer – Well attended. Westlake Ground Breaking (1938) – 1938 reroutes Precinct Line. EDC 4 B Meeting – Planning Manager Carolyn Huggins gave a great presentation on development. Northwest Community Partnership – Commissioner Gary Ficus provided an update on roads in North Tarrant. Council member Rose encouraged the new Council members to attend the TML orientation. Mayor White advised that Staff had already sent the new members the information. ADJOURN Motion to adjourn made by Rose, seconded by Strother to adjourn. Meeting adjourned at 10:45 p.m. ____________________________ ________________________________ Lisa Hennek, Town Secretary Connie White, Mayor Town of Trophy Club, Texas Town of Trophy Club, Texas Town Council 14 of 145 Meeting Date: June 7, 2010 Presentation to Town Council on May 17, 2010 My name is Jim Thomas and I reside at 7 Meadowbrook Lane. I am currently a MUD1 director and am scheduled to start another term tomorrow night. First and foremost, I would like to thank Susan Edstrom and Philip Sterling for their many years of service to the residents of Trophy Club as our town council members. Susan/Philip, our community is a much better place to live due to your involvement over the years, and I thank you for that. Next I would like to congratulate our three new council members that will be sworn in tonight; and tell each of you just how excited I am about the ideas we are already developing whereby we can work more closely together for the betterment of our residents. I truly feel that we are positioned to put together the closest working relationship between the town council and MUD Board that we have ever had in Trophy Club since I have been a MUD Board member; and I am excited to possibly be a part of what is to come. In our joint workshop on Wednesday, we have a lot more details concerning the potential merger of EMS and fire to share with you, but I will hold those comments for that time. It appears though to definitely be doable but will take longer than we were originally thinking. For your information, currently there are 845 active MUD Districts residing within town boundaries all over the State of Texas. Several have volunteer fire departments but we are one of the very few that own a full-time, fully-staffed fire department; and will become the only one to offer EMS services if we go forward with that idea. I would also like to point out to the new council members that MUDs operate under the Texas State laws governed by the TCEQ – the Texas Commission on Environmental Quality; whereas municipalities like Trophy Club operate under Texas State Laws governed by whatever Charter that municipality is organized under and the local government codes that affect that Charter – in our case a council - manger form of government. There are advantages to both, but MUDs serve a definite purpose such that 845 towns in Texas see fit to co-exist with the MUD Districts within their boundaries, rather than do away with them – and have done so for years. MUD1 should never cease to exist as long as we have the Solana complex as a commercial customer; but it is possible for State Legislation to be passed that would take Solana away from MUD1 and give it to Westlake. We simply cannot consider any form of re-organization that might position anyone with the opportunity to approach their State Legislators with such an idea. Solana befits our residents by paying approximately 19.3% of all taxes associated with MUD1’s bonded indebtedness, and approximately 15.7% of our water and waste water revenues. To loose them would be a financial disaster to our residents. Town Council 15 of 145 Meeting Date: June 7, 2010 As we discuss potentially new organizational reporting responsibilities in our joint meeting on Wednesday night, we must keep these facts in mind for it may not be in our best interest to take any further organizational activities into effect, other than the fire/EMS consolidation, at this time. Thank you very much for allowing me to address the council this evening; and I look forward to seeing you again on Wednesday night. Jim Thomas 7 Meadowbrook Lane 817-491-9238 Town Council 16 of 145 Meeting Date: June 7, 2010 Qu a r t e r l y F i s c a l R e p o r t Qu a r t e r l y F i s c a l R e p o r t Ma y 1 7 , 2 0 1 0 Ma y 1 7 , 2 0 1 0 20 0 9 20 0 9 -- 20 1 0 F i s c a l Y e a r 20 1 0 F i s c a l Y e a r Se c o n d Q u a r t e r E n d i n g Se c o n d Q u a r t e r E n d i n g Ma r c h 2 0 1 0 Ma r c h 2 0 1 0 To w n Co u n c i l 17 of 14 5 Meeting Date: June 7, 2010 To w n o f T r o p h y C l u b To w n o f T r o p h y C l u b 20 0 9 20 0 9 -- 20 1 0 B u d g e t 20 1 0 B u d g e t $ 1 2 , 9 7 8 , 7 5 8 $ 1 2 , 9 7 8 , 7 5 8 St o r m D r a i n a g e U t i l i t y $2 5 1 , 9 1 5 G e n e r a l F u n d $5 , 9 2 8 , 8 2 0 T r o p h y C l u b P a r k $120,596 In t e r e s t & S i n k i n g $9 1 1 , 7 2 8 Capital Projects $5,121,590 EDC 4B $128,273 Hotel/Occupancy Tax $28,770EDC 4A $364,471 St r e e t M a i n t e n a n c e Sa l e s T a x $1 2 2 , 5 9 5 To w n Co u n c i l 18 of 14 5 Meeting Date: June 7, 2010 To w n o f T r o p h y C l u b To w n o f T r o p h y C l u b 20 0 9 20 0 9 -- 20 1 0 B u d g e t 20 1 0 B u d g e t % o f T o t a l % o f T o t a l St r e e t M a i n t e n a n c e Sa l e s T a x 1 % EDC 4A 2.8 %Hotel Occupancy Tax 0.2 %EDC 4B 1 %Capital Projects 39 % In t e r e s t & S i n k i n g 7 % Tr o p h y C l u b P a r k 1 % Ge n e r a l F u n d 46 % St o r m D r a i n a g e U t i l i t y 2 % To w n Co u n c i l 19 of 14 5 Meeting Date: June 7, 2010 20 0 9 20 0 9 -- 20 1 0 G e n e r a l F u n d B u d g e t 20 1 0 G e n e r a l F u n d B u d g e t Re v e n u e s $ 6 , 0 1 0 , 0 5 1 Re v e n u e s $ 6 , 0 1 0 , 0 5 1 Re c r e a t i o n Pr o g r a m s $1 8 1 , 6 5 0 Tr a n s f e r s & Ot h e r R e v e n u e $4 8 1 , 2 2 8 Pr o p e r t y T a x $ 3 , 2 3 2 , 6 7 0 EMS & Municipal Court $344,000 Sa l e s T a x $4 9 0 , 3 7 8 Fr a n c h i s e F e e s $5 6 5 , 6 8 0 Developers Fees $56,500 Trash $273,945Building Permits $384,000 To w n Co u n c i l 20 of 14 5 Meeting Date: June 7, 2010 20 0 9 20 0 9 -- 20 1 0 G e n e r a l F u n d B u d g e t 20 1 0 G e n e r a l F u n d B u d g e t Re v e n u e s % o f T o t a l Re v e n u e s % o f T o t a l Re c r e a t i o n Pr o g r a m s 3 % Building Permits 6 %Trash 5 %Developers Fees 1 % Fr a n c h i s e F e e s 9 % Sa l e s T a x 8 % EMS & Municipal Court 6 % Pr o p e r t y T a x 54 % Tr a n s f e r s & O t h e r Re v e n u e s 8 % To w n Co u n c i l 21 of 14 5 Meeting Date: June 7, 2010 Ge n e r a l F u n d R e v e n u e s Ge n e r a l F u n d R e v e n u e s Bu d g e t $ Bu d g e t $ 20 1 0 Y T D 20 1 0 Y T D Over/(Under)Over/(Under) Pr o p e r t y T a x 3, 2 3 2 , 6 7 0 3, 0 9 3 , 1 6 7 (139,503) Sa l e s T a x 49 0 , 3 7 8 15 2 , 1 3 5 (338,243) Fr a n c h i s e F e e s 56 5 , 6 8 0 78 , 2 7 8 (487,402) Bu i l d i n g P e r m i t s 38 4 , 0 0 0 29 4 , 7 9 5 (89,205) De v e l o p e r F e e s 56 , 5 0 0 -0 - (56,500) Tr a s h 34 4 , 0 0 0 17 2 , 7 4 0 (171,260) EM S & M u n i c i p a l C o u r t 27 3 , 9 4 5 12 2 , 6 0 7 (151,338) Tr a n s f e r s & O t h e r R e v 48 1 , 2 2 8 13 5 , 3 8 0 (345,848) Re c r e a t i o n P r o g r a m s 18 1 , 6 5 0 4, 4 6 8 (177,182) To t a l To t a l 6, 0 1 0 , 0 5 1 6, 0 1 0 , 0 5 1 4, 0 5 3 , 5 7 0 4, 0 5 3 , 5 7 0 (1,956,481)(1,956,481) To w n Co u n c i l 22 of 14 5 Meeting Date: June 7, 2010 To w n o f T r o p h y C l u b To w n o f T r o p h y C l u b Ge n e r a l F u n d E x p e n d i t u r e s Ge n e r a l F u n d E x p e n d i t u r e s $ 5 , 9 2 8 , 8 2 0 $ 5 , 9 2 8 , 8 2 0 20 0 9 20 0 9 -- 20 1 0 20 1 0 Bu d g e t $ Bu d g e t $ %% Po l i c e 1, 4 1 6 , 7 2 5 24 Pa r k s & R e c r e a t i o n 1, 3 0 6 , 9 0 5 22 EM S 67 3 , 1 4 5 11 Co m m u n i t y D e v e l o p m e n t 50 4 , 4 9 7 9 St r e e t s 39 9 , 5 3 8 7 73%73% To w n Co u n c i l 23 of 14 5 Meeting Date: June 7, 2010 Ge n e r a l F u n d E x p e n d i t u r e s Ge n e r a l F u n d E x p e n d i t u r e s 2009 2009 --2010 2010 Am e n d e d B u d g e t $ 5,928,820 Le s s : E x p e n d i t u r e s T h r o u g h 3 / 3 1 / 1 0 (2,562,175) Un e x p e n d e d B u d g e t $ 3,366,645 $ 3,366,645 To w n Co u n c i l 24 of 14 5 Meeting Date: June 7, 2010 To w n o f T r o p h y C l u b To w n o f T r o p h y C l u b Ge n e r a l F u n d 2 0 0 9 Ge n e r a l F u n d 2 0 0 9 -- 20 1 0 20 1 0 Bu d g e t Bu d g e t 6 6 -- Month Month YT D YT D 50%50%Fiscal Yr Fiscal Yr Re v e n u e s $ 6 , 0 1 0 , 0 5 1 $ 4 , 0 5 3 , 5 7 0 67% Ex p e n d i t u r e s (5 , 9 2 8 , 8 2 0 ) (2 , 5 6 2 , 1 7 5 ) 43% Re v e n u e s o v e r Ex p e n d i t u r e s $ 8 1 , 2 3 1 $ 8 1 , 2 3 1 $1 , 4 9 1 , 3 9 5 $1 , 4 9 1 , 3 9 5 To w n Co u n c i l 25 of 14 5 Meeting Date: June 7, 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-296-T Name: Status:Type:Agenda Item Consent Agenda File created:In control:5/24/2010 Town Council On agenda:Final action:6/7/2010 Title:Consider and take appropriate action regarding the Minutes dated May 19, 2010. Attachments:May 19, 2010 Minutes.pdf Action ByDate Action ResultVer. Town Council 26 of 145 Meeting Date: June 7, 2010 12010-296-T Version:File #: Title Consider and take appropriate action regarding the Minutes dated May 19, 2010. Town Council 27 of 145 Meeting Date: June 7, 2010 MINUTES FROM SPECIAL JOINT SESSION BETWEEN THE TOWN COUNCIL AND TCMUD No. 1 FOR THE OWN OF TROPHY CLUB LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS Wednesday 19, 2010 6:30 PM Svore Municipal Building Boardroom STATE OF TEXAS § COUNTY OF DENTON § The Town Council of the Town of Trophy Club, Texas, met in a Special Joint Session with Trophy Club Municipal Utilities District No. 1 on Wednesday, May 19, 2010. The meeting was held within the boundaries of the Town and was open to the public. TOWN COUNCIL MEMBERS PRESENT: Connie White Mayor Bill Rose Council Member J.D. Stotts Council Member Margi Cantrell Council Member Larry Hoover Council Member TOWN COUNCIL MEMBERS ABSENT: Glenn Strother Mayor Pro Tem TCMUD No. 1: Jim Thomas President Jim Moss Vice President Kevin Carr Secretary/Treasurer Bill Armstrong Director Nick Sanders Director STAFF AND GUEST(S) PRESENT: Stephen Seidel Acting Town Manager Robert Scott District Manager Lisa Hennek Town Secretary Mary Moore MUD Secretary Patricia Adams Town Attorney Danny Thomas Fire Chief Kathy DuBose Finance Director Mayor White announced the date of May 19, 2010, called to meeting to order and announced a quorum at 6:30 p.m. President Thomas announced a quorum for TCMUD No. 1. Special Joint Session 1. 2010-293-T Consider and take appropriate action regarding the SEMO Committee's recommendation. Town Council 28 of 145 Meeting Date: June 7, 2010 Mayor White announced that the Town Council authorized Staff to begin drafting a Contract for Services at the May 17, 2010 council meeting. TCMUD1 President Thomas advised that TCMUD No. 1 passed a like motion at their May 18, 2010 meeting. No action taken. 2. 2010-289-T Presentation by Council member Rose for proposed Organizational Structure; discussion of the same. Council member Rose explained the organizational chart includes the cost of service agreement between the Town and the MUD No. 1; is open for changes and revisions and that it is a very bare bones concept. The following are the key points: - MUD 1 is actively involved in hiring the new Town Manager to insure Manager's ability to manager Cost of Services Agreement with MUD 1. - MUD 1 executes Cost of Services Agreement with Town for all operational areas (water, waste water, Fire). - MUD 1 retains full responsibility. - MUD 1 retains all current physical assets and full taxing/budgeting authority/responsibility. - Town Manager shall oversee the administration of the Cost of Services Agreement per Town Charter. - MUD 1 District Manager becomes Director of Public Utility Department. - MUD 1 has liaison seated at Town Council. - Town transfers EMS responsibility to MUD 1 and MUD 1 executes EMS contract for services with the Town. Mayor White commented that both entities are making a lot of progress, yet there are more things to do. White feels that the processes first need to be developed before taking the step as presented by Council member Rose and most likely not this year TCMUD1 President Thomas agreed with Mayor White stating that both organizations are extremely well run and do run things together at this time and that this proposal needs to be kept as merely a possibility. Director Armstrong stated considering all the new players; suggested that the Acting Town Manager, District Manager and Fire Chief work together and bring their ideas back to this group during a future joint session. Mayor White agreed stating that the Council needs to focus and listen to the Staff and the Town has a Council Manager form of government. Council member Hoover questioned the organization chart, the relationship of the cost of services agreement, and which employees would remain under the MUD. TCMUD1 President Thomas said the first plan deals with only ten employees. Council member Rose clarified that the chart presented is part of a four step plan developed to create trust as each phase is implemented. The chart presented is actually of phase three of four phases. Rose stated that he cannot advocate a total split. Council member Cantrell said that she understands that things are much better between the Acting Town Manager and District Manager. Cantrell asked that the entire group be mindful that the Town cannot tax other city; however, a MUD can tax another jurisdiction. The suggested flow chart might be construed as a change in taxing authority over the area outside the Town's area. People have predicted that the Town Town Council 29 of 145 Meeting Date: June 7, 2010 might loose the Solana revenue stream and this could force the loss of nearly $950,000 in revenues annually from this area. Cantrell questioned if the group is willing to test or jeopardize this kind of money by implementing a Public Utility Department and changing the District Manager to a department head. She reminded everyone that $950,000 equates to approximately 8 or 9 cents in tax rates to the citizens. TCMUD1 President Thomas and Mayor White agreed that both need to be cautious in order to protect this income and continue to find a way to work together. Director Carr stated he felt the flow chart gives the perception the Town is over the MUD and further that everyone needs to remember the MUD needs to work with Solana as they are a very large customer that should be satisfied. Further stated he did feel this is simply a starting point for the future. Council member Rose said that he received advice from a reputable legal counselor who stated that the MUD could implement a cost of service agreement. Rose questioned if a Cost of Service Agreement might increase the probability of the dissolution of the MUD, and he suggested a third party agreement on the matter between the Town, Westlake and the MUD would be necessary. Rose stated that there are still a lot of questions that need to be answered before moving forward and he is not interested in losing this money either. TCMUD1 President Thomas clarified there is only one other MUD in the State with boundaries similar to Trophy Club's and it is located in Austin. Director Sanders questioned how a Cost of Service Agreement governs one manager reporting to two people and whether they interface with the MUD Board or the Town Council may cause some conflicts of interest. Sanders said that it may be beneficial for the Council to look for a Town Manager candidate with Water/Waste Water experience when hiring the next Town Manager for a better understanding of the MUD, as has been the case in the past. Discussion only, no action. 3. 2010-290-T Consider and provide input to Staff regarding the Emergency Medical and Fire Services contract. TCMUD1 President Thomas shared that Trophy Club is the only MUD with a paid full time staff for a Fire Department with the ability to take on the operation of the EMS. Additionally, the MUD's financial stability is the best ever. The current Fire Plan is from 1983 and will cost less than $5,000 to be revised by legal staff, the plan then must be reviewed and accepted by TCEQ and then voted on by the citizens via a referendum. To have a referendum on the May 2011 Ballot, it must be submitted by February. Approval by the TCEQ may take 4 to 6 months. Thomas said that he has spoken with Maguire Partners who supports the MUD, which should go a long way with TCEQ. Thomas also feels confident that this can be done without raising the tax rate and may result in a possible 2 cent savings with the inclusion of the Solana area. L the Town, the MUD can also cap the tax on 65+ residents. Thomas asked if the group feels this idea has merit enough to direct staff to start revising the plan. Director Sanders stated that this is a good concept, providing the reorganizational costs can be balanced and not transferred from one entity to another. Sanders stated that he supports the idea of amending the plan regardless of whether the MUD takes over EMS or not as the current plan says the MUD won't do EMS. TCMUD1 President Thomas clarified that the Town tax reduction would be 2 cents for the citizens, if the Town passed the cost of EMS to the MUD. The MUD still needs to find a way to cover costs without raising taxes and can possibly find funding in revenues or reserves thereby not needing to raise MUD taxes by 5 cents. Town Council 30 of 145 Meeting Date: June 7, 2010 Council member Cantrell verified that the Council would not be obligated to transfer EMS to the MUD should they decide they do not want to after the plan is submitted to and approved by TCEQ, the MUD taking over EMS services would allow them to offer joint fire and EMS services to another community. Mayor White stated for the record that the Town and the MUD could offer joint services currently as well. Director Carr stated that the MUD only pays for the services that they receive benefit for, like IT servers and routers. Carr supports revising the plan and including EMS as an option to the Contract for Services. Carr cautioned that Solana is not a blank check book and the MUD needs to consider what the EMS transfer to the MUD would do for this customer as right now Westlake provides EMS services to Solana for free. TCMUD1 President Thomas said that Richard Kulman from Maguire Partners is completely willing to fund this and would consider it an insurance policy, as they have concerns with the way some things are going on in Westlake. Thomas stated that currently all parties are paying the same amount for fire services - the Town, Solana and the PID. Thomas said that unless the Town Council has serious objection, TCMUD1 will direct District Manager Scott to begin revising the plan. Council member Rose asked how the PID plays into this. Acting Town Manager Seidel stated that the fire tax is paid by everyone at the same cost. Mayor White clarified that if EMS was transferred to the MUD, the city tax would not go down seven cents as we still have capital expenditures, park bonds and maintenance and this would only lesson the blow. She further stated that the Town Staff should begin looking at how the EMS change would affect staff, etc., so that the Town does not wait too long to begin thinking about the process. Director Carr stated that the first step is for the MUD to revise the fire plan. TCMUD1 President Thomas confirmed consensus from the TCMUD1 Board to direct staff to start revising the fire plan. Director Sanders suggested having a citizen work on the Fire Plan and then have the attorney review the revisions in order to save some funds. TCMUD1 President Thomas indicated he could work on the document and then have it reviewed by legal. 4. 2010-291-T Consider and take appropriate action scheduling Joint Sessions between the Town Council and TCMUD No. 1. The group agreed to schedule quarterly meetings and than cancel should it not be necessary to meet at those scheduled times. 5. 2010-292-T Acting Town Manager Seidel's update regarding the search for a new Town Manager; discussion of the same. Acting Town Manager Seidel first thanked the group stating that this was the first positive Joint Session he has participated in. Gary Holland with The Mercer Group interviewed all departing and newly elected Council members and Department Directors last week. Mayor White and Acting Town Manager have already reviewed the draft profile and the opening is posted to The Mercer Group’s website with a July 9, 2010 application/resume deadline. The process should move very quickly after the July 9, 2010 deadline. Update only, no action. Town Council 31 of 145 Meeting Date: June 7, 2010 6. 2010-266-T Consider and take appropriate action regarding the Town Council's relationship with TCMUD No. 1 relative to the hiring of a new Town Manager. Mayor White advised that District Manager Scott was interviewed by Gary Holland with the Mercer Group and will be included going forward. White said that this Item is posted more for an update on attitude rather than action. TCMUD1 President Thomas appreciates the Town having the MUD participate. Mayor White asked what items the group would like to discuss at the next meeting. Council member Rose suggested discussing Parks. Fire Chief Danny Thomas suggested Emergency Disaster Plan. ADJOURN Motion to adjourn made by Cantrell, seconded by Rose to adjourn at 7:43 p.m. ____________________________ ________________________________ Lisa Hennek, Town Secretary Connie White, Mayor Town of Trophy Club, Texas Town of Trophy Club, Texas Town Council 32 of 145 Meeting Date: June 7, 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-206-T Name: Status:Type:Agenda Item Regular Session File created:In control:4/6/2010 Town Council On agenda:Final action:6/7/2010 Title:Consider and take appropriate action regarding the creation of a Code of Conduct/Ethics Ordinance and the establishment of an Ethics Commission. Attachments:Charter Ethics.pdf Ethics Section from Elected-Appointed Official Handbook.pdf 8_3_09_Ethics Ord_Staff.pdf ROSE Draft Code of Ethics & Conduct Proposal (-TE) Rev 1.pdf ROSE Draft TC Code of Ethics Conduct Proposal Rev 3.pdf ROSE Draft TC Code of Ethics & Conduct Proposal Rev 4.pdf Business Points_Code of Ethics Conduc_Rev 4.pdf Action ByDate Action ResultVer. TabledTown Council4/12/2010 1 Fail Town Council 33 of 145 Meeting Date: June 7, 2010 12010-206-T Version:File #: Title Consider and take appropriate action regarding the creation of a Code of Conduct/Ethics Ordinance and the establishment of an Ethics Commission. Town Council 34 of 145 Meeting Date: June 7, 2010 11.14 Code of Ethics and Conduct; Ethics Commission (a) The Town Council shall adopt by ordinance a code of ethics and conduct that is consistent with the provisions of this Charter and applicable to elected officers, appointed board, commission, and committee members, and employees of the Town. (b) The Town Council shall establish by ordinance an independent Ethics Commission to administer and enforce the Code of Ethics and Conduct ordinance. No member of the Commission may hold elective or appointed office under the Town or any other government or hold any political party office. The Town Council shall appropriate sufficient funds to the Ethics Commission to enable it to perform the duties assigned. Amended 05-09-09-1, Section 11.14 and Subsections(a and), Ord. 2009-12- Prop #21 Town Council 35 of 145 Meeting Date: June 7, 2010 Town of Trophy Club Code of Ethics and Conduct For Town Elected and Appointed Officials Statement of Purpose The Citizens and the businesses of the Town of Trophy Club are entitled to have fair, ethical and accountable local government which earns the public’s full confidence for integrity. The strong desire of the Town to fulfill this expectation therefore requires that the Town officials, both elected and appointed: • Comply with both the letter and sprit of the laws and policies affecting the operations of government; • Be independent, impartial and fair in their judgment and actions; and • Use their respective office or position for the public good, not for the personal gain. To this end, the Town Council has adopted this Code of Ethics and Conduct for Town officials in order to assure public confidence in the integrity of local government and its effective and fair operation. Definitions The following words, terms and phrases, when used in this section, shall have the following meanings subscribed to them: Business. A corporation, partnership, sole proprietorship, firm, holding company, joint stock company, receivership, trust or any other for profit or non-profit entity. Town Council. The legislative and governing body of the Town consisting of the Mayor and Council members. Town Official. Any member of the Town Council and any appointed member of a Town board, commission, committee or citizens advisory group set up by ordinance, resolution, charter, state law or otherwise, on a temporary or permanent basis. Employee. Any person employed by the Town, including those individuals on a part- time basis, including independent contractors hired by the Town for repetitive performance of services, but not independent contractors engaged for occasional services. Nepotism Nepotism is showing favoritism toward a relative. The practice of hiring personnel or awarding contracts which favor a relative is prohibited by the Town. Exclusions to this prohibition are: 17 Town Council 36 of 145 Meeting Date: June 7, 2010 a. Employees who have been continuously employed by the Town for more than two years prior to the election or appointment of the official. b. Individuals who are employees of the Town as of the effective date of this policy. 1. Act in the Public Interest Recognizing that stewardship of the public interest must be their primary concern, Town officials shall work for the common good of the people of the Town of Trophy Club and not for any private or personal interest, and they shall assure fair and equal treatment of all persons, claims and transactions coming before the Town Council, boards, commissions, committees and advisory groups. 2. Comply with the Law Town officials shall comply with the laws of the nation, the State of Texas, and the Town of Trophy Club in the performance of their public duties. These laws include, but are not limited to: the United States and Texas Constitutions; laws pertaining to conflicts of interest, election campaigns, financial disclosures, employer responsibilities, and open processes of government; and Town ordinances, resolutions and policies. 3. Conduct of Town Officials As a member of the Town of Trophy Club Town Council or of a Town of Trophy Club town board, commission or committee, I agree to uphold the Code of Ethics and Conduct myself by the following model of behavior. I will: • Recognize the worth of individual Town officials and appreciate their individual talents, perspectives and contributions; • Help create an atmosphere of respect and civility where individual Town officials, Town staff and the public are free to express their ideas and work to their full potential; • Conduct my personal and public affairs with honesty, integrity, fairness and respect for others; • Respect the dignity and privacy of individuals and organizations; • Keep the common good as my highest purpose and focus on achieving constructive solutions for public benefit; • Avoid and discourage conduct which is divisive or harmful to the best interests of the Town of Trophy Club; • Treat all people with whom I come in contact in a manner I wish to be treated; • Before I speak or act I will ask myself the following questions: 1. Is it the truth? 18 Town Council 37 of 145 Meeting Date: June 7, 2010 2. Is it fair to all concerned? 3. Will it build goodwill and better relationships? 4. Will it be beneficial to all concerned? 4. Respect for Process Town officials shall perform their duties in accordance with the processes and rules of order established by the Town Council and boards, commissions, committees and citizen advisory groups governing the public deliberation of public policy issues, meaningful involvement of the public, and implementation of policy decisions of the Town Council by Town staff. 5. Conduct of Public Meetings Town officials have an obligation to attend meetings and to be prepared for public issues; to listen courteously and attentively to all public discussions before the body; and to focus on the business at hand. They shall refrain from interrupting other speakers, making personal comments not germane to the business of the body, or otherwise interfering with the orderly conduct of meetings. 6. Decisions Base on Merit It is expected and required that Town officials review material, participate in discussion and base their decision on the merits and substance of the matter at hand. 7. Communication Prior to permitting final action on a matter under consideration, Town officials shall publicly share substantive information, which they may have received from sources outside the public decision-making process, that is relevant to such action by the Council, boards, commissions, committees or citizens advisory groups. 8. Conflicts of Interest and Disclosure Town officials shall familiarize themselves with and abide by the following conflicts of interest and disclosure statutes and principles: a. Chapter 171 of the Local Government Code which requires a member of the governing body or another office, whether elected, appointed, paid or unpaid, of any municipality to file an affidavit disclosing a substantial interest in a business entity or property that would be beneficially affected by a decision of the governing body or of any other board or commission upon which the member serves and thereafter to abstain from participation in discussion and voting on the matter. Once the disclosure is made the Town official is to remove himself from the meeting area to ensure his presence does not hinder the discussion of the item or influence the vote. 19 Town Council 38 of 145 Meeting Date: June 7, 2010 b. Section 176 of the Local Government Code which requires Town Council members and the Town Manager to file a conflicts disclosure statement disclosing any business relationship with a person or business doing business with the Town or being considered by the Town for a business relationship. c. Section 176.003(a)(2)(B) of the Local Government Code which requires the disclosure of gifts of an aggregate value of more than $250.00 in the twelve (12) month period preceding the date that a local government officer becomes aware of a transaction described in Section 176, other than gifts of food, lodging, transportation, or entertainment accepted as a guest. d. Sections 553.001-553.003 of the Government Code which requires the filing of an affidavit before the date the Town will acquire a property in which public servants have a legal or equitable interest. e. In order to assure their independence and impartiality on behalf of the public good, Town officials are prohibited from using their positions to influence government decisions in which they have a personal interest. 9. Corruption Town officials shall familiarize themselves with and abide by the Texas Penal Code mandates concerning corruption, including without limitation, Section 36.02 prohibiting receipt of prohibited gifts, Section 39.02 concerning abuse of official capacity and Section 39.06(a) concerning misuse of official information and all other applicable state laws regulating or related to public service. 10. Political Advocacy Town officials shall not utilize the Town’s name or logo for purposes of endorsing any political candidate or business. 11. Confidential Information Town officials shall respect the confidentiality of information concerning Town property, personnel or proceedings of the Town. They shall neither disclose confidential information without proper legal authorization, nor use such information to advance their personal interests. 12. Use of Public Resources Town officials shall not use public resources generally unavailable to the public, such as Town staff time, equipment, supplies or facilities, for private gain or personal purposes. 20 Town Council 39 of 145 Meeting Date: June 7, 2010 13. Representation of Private Interests In keeping with their role as stewards of the public interest, Town officials shall not appear on behalf of private interests of third parties before the Council or any board, commission, committee, or proceeding of the Town. 14. Advocacy Town officials shall represent the official policies or positions of the Town Council, board, commission, committee or advisory group to the best of their ability when designated as delegates for this purpose. When presenting their individual opinions and positions, Town officials shall explicitly state that they do not represent their body or the Town of Trophy Club, nor will they allow the inference that they do. 15. Policy Role of Town Officials Town officials shall respect and adhere to the Town of Trophy Club governmental structure as outlined in the Town’s charter, policies and procedures. In this structure, the Town Council determines the policies of the Town with the advice, information and analysis provided by the public, boards, commissions, committees, advisory groups and Town staff. Except as provided by Town ordinance, Town officials therefore shall not interfere with the administrative functions of the Town or the professional duties of the Town staff; nor shall they impair the ability of Staff to implement Council policy decisions. 16. Independence of Boards, Commissions, and Committees Because of the value of the independent advice of boards, commissions, committees and advisory groups to the public decision-making process, Town officials shall refrain from using their position to influence unduly the deliberations or outcomes of board, commission, committee, and advisory group proceedings. 17. Positive Work place Environment Town officials shall support the maintenance of a positive and constructive work place environment for Town employees and for citizens and businesses dealing with the Town. Town officials shall recognize their special role in dealing with Town employees and refrain from creating the perception of inappropriate direction to Staff. 18. Implementation As an expression of the standards of conduct for the Town officials expected by the Town, the Trophy Club Code of Ethics and Conduct is intended to be self-enforcing. It therefore becomes most effective when Town officials are thoroughly familiar with it and embrace its provisions. Ethical standards shall be included in the regular orientations for candidates for Town Council, applicants to boards, commissions, committees, and 21 Town Council 40 of 145 Meeting Date: June 7, 2010 22 advisory groups, and newly elected and appointed Town officials. Town officials entering office, including those appointed to boards, commissions, committees and advisory groups shall sign a statement affirming they have read and understood the Town of Trophy Club Code of Ethics and Conduct and agree to be bound by its terms. In addition, the Code of Ethics and Conduct shall be reviewed periodically by the Town Council, boards, commissions, committees, and advisory groups, and the Town Council shall consider recommendations from boards, commissions, committees, advisory groups, employees, and citizens for revision as it becomes necessary. STATEMENT OF COMMITMENT As a member of the Town of Trophy Club Town Council or of a Town of Trophy Club town board, commission or committee, I agree to uphold the Code of Ethics. I affirm that I have read and that I understand, accept and support the Town of Trophy Club Code of Ethics and Conduct. _____________________________________________ Elected or Appointed Official Printed Name _____________________________________________ Position _________________________________ _______________ Signature Date Town Council 41 of 145 Meeting Date: June 7, 2010 TOWN OF TROPHY CLUB, TEXAS ORDINANCE 2009 - AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS, PROVIDING AN ETHICS POLICY; DEFINING CERTAIN TERMS; PROVIDING FOR STANDARDS OF CONDUCT; PROVIDING FOR CERTAIN FINANCIAL DISCLOSURES; ESTABLISHING AN ETHICS COMMISSION; PROVIDING FOR DISPOSITION OF ALLEGED VIOLATIONS; AMENDING THE CODE OF ORDINANCES; PROVIDING AN EFFECTIVE DATE AND SAVINGS CLAUSE; AND PROVIDING FOR RELATED MATTERS. WHEREAS, the Town of Trophy Club, Texas is a home rule city acting under its Charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS, statutory provisions governing the ethical conduct of public officials and employees are found in various codes including the Texas Local Government Code, Texas Government Code and the Texas Penal Code; and WHEREAS, the conduct of the public business should be accomplished by Town Officials that have no personal financial interest in such business clearly separate from that of the general public; WHEREAS, it is important that Town Officials be provided with a process and procedure to give notice and to then refrain from participation in any specific business of the Town in which such Official has a personal financial interest different from that of the general public; WHEREAS, the employees of the Town are responsible and answerable to the Town Manager, the Town Manager shall exercise his or her judgment and discretion in applying the terms and provisions of this Ordinance to the employees of the Town; WHEREAS, a reasonable ethics ordinance with disclosure requirements will provide a basis for continuing public confidence in the conduct of the business and affairs of the Town; NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, THAT: SECTION 1. POLICY It is the policy of the Town that the proper operation of democratic government requires Town Council 76 of 167 Meeting Date: August 3, 2009Town Council 42 of 145 Meeting Date: June 7, 2010 that Town Officials be independent, impartial and responsible to the people; that governmental decisions and policy be made in proper channels of the governmental structure; that no officer or member of the Town Council or of any board, commission, committee or advisory group shall have any interest, financial or otherwise, direct or indirect, or engage in any business, transaction or professional activity or incur any obligation of any nature which is in conflict with the proper discharge of his or her duties in the public interest; that the public have confidence in the integrity of its government. The provisions of this Article shall not apply to political contributions, loans, expenditures, reports or regulation of political campaigns, or the conduct of Candidates in such campaigns, except as expressly provided herein. In an effort to further these objectives, certain ethical principles shall govern the conduct of every Town Official, who shall:  Be dedicated to the highest ideals of honor and integrity in all public and personal relationships so that every Town Official may merit the respect and confidence of the citizens of Trophy Club;  Recognize that the chief function of local government at all times is to serve the best interest of all the people. Town Officials shall respect the confidentiality of information concerning the property, personnel or affairs of the Town. They shall neither disclose confidential information without proper legal authorizations, nor use such information to advance their personal, financial or other private interests. Town Officials shall not use public resources not available to the public in general, such as city staff time, equipment, supplies or facilities, for private gain or personal purposes;  Be dedicated to public service by being cooperative and constructive, and by making the best and most efficient use of available resources;  Not take any special advantage of services or opportunities for personal gain, by virtue of their public office that is not available to the public in general. They shall refrain from accepting any gifts, favors or promises of future benefits, which compromise their independence of judgment or action or give the appearance of being compromised;  Assure their independence and impartiality on behalf of the common good. Town Officials shall not use their official positions to influence government positions, which may give the appearance of conflict of interest. Town Officials shall represent the official policies or positions of the Town Council, board or commission to the best of their ability when designated as delegates for this purpose. When presenting their individual opinions and positions, members shall explicitly state they do not represent their respective body or the Town of Trophy Club, nor will they allow the inference that they do; Town Council 77 of 167 Meeting Date: August 3, 2009Town Council 43 of 145 Meeting Date: June 7, 2010  In accordance with the state law, Town Officials shall disclose investments, interests in real property, sources of income, and gifts; and they shall abstain from participating in deliberations and decision-making where conflicts may exist;  Recognize that public and political policy decisions, based on established values, are ultimately the responsibility of the Town Council;  Respect and adhere to the Council-Manager structure of Trophy Club Town government as outlined by the Trophy Club Town Charter.  Because of the value of the independent advice of boards and commissions to the public decision-making process, refrain from using their position to unduly influence the deliberations or outcomes of board, commission, or committee proceedings;  Support the maintenance of a positive and constructive work place environment for Town employees and for citizens and businesses dealing with the Town. Town Officials shall recognize their special role in dealings with Town employees and in no way create the perception of inappropriate direction to staff. SECTION 2. DEFINITIONS The following words, terms and phrases, when used in this Article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning. A. "Business Entity". Any corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self-employed individual, holding company, joint stock company, receivership, trust, or any legal entity organized for profit. B. “Benefit”. Anything reasonably regarded as economic gain or advantage, including benefit to any other person in whose welfare the beneficiary is interested. C. "Business Dealings". Any activity involving the exchange of economic benefits. D. "Candidate". Every person who declares for or files for any office of the Town to be filled by election. E. "Compensation". Any economic benefit received in return for labor, services, property, or investment. F. "Economic Benefit". Any money, real or personal property, purchase, sale, lease, contract, option, credit, loan, discount, service, or other tangible or intangible thing of value, whether similar or dissimilar to those enumerated. Town Council 78 of 167 Meeting Date: August 3, 2009Town Council 44 of 145 Meeting Date: June 7, 2010 G. "Family Member". A person related to a Town Official in the first degree by consanguinity (blood) or affinity (marriage) as determined under Chapter 573 of the Texas Local Government Code, as amended. H. "Gift". A favor, hospitality, Economic Benefit, product or item having a value of $25.00, or more. A Gift does not include products or items solicited, accepted or received as a campaign contribution in support or opposition of a political campaign and regulated in accordance with provisions of federal, state, or local laws governing campaign finances. It does not include money, items, or benefits received from a relative if given on account of kinship, or any value received by will, intestate succession, or as a distribution from an inter vivos or testamentary trust established by a spouse or ancestor. I. "Gross Income". Income received prior to the deduction of taxes or any other expenses as defined by the Internal Revenue Service. J. "Intentionally". A person acts intentionally, or with intent, with respect to the nature of his conduct or to a result of his conduct when it is his conscious objective or desire to engage in the conduct or cause the result. K. "Knowingly". A person acts knowingly, or with knowledge, with respect to the nature of his conduct or to circumstances surrounding his conduct when he is aware of the nature of his conduct or that the circumstances exist. A person acts knowingly, or with knowledge, with respect to a result of his conduct when he is aware that his conduct is reasonably certain to cause the result. L. "Pecuniary Gain". Any use, benefit or thing of value that can be valued in money. M. "Substantial Interest. A person has a substantial interest in a business entity if he and/or a Family Member: (a) owns ten percent (10%) or more of the voting stock or shares of the business entity; (b) owns either ten percent (10%) or more or $15,000 or more of the fair market value of the business entity; or (c) funds received from the business entity exceed ten percent (10%) or more of the person's gross income for the previous year. A person has a substantial interest in real property if the interest is an equitable or legal ownership with a fair market value of $2,500 or more. A person is considered to have a substantial interest under this Article if a Family Member of the person has a substantial interest under this Article. N. "Town Official(s)", “Official, or "Officer". The Mayor, every member of the Town Council, the Town Manager, Town Secretary, the Town Attorney and each member of a Town Board, Commission, Committee, or Advisory Group. Town Council 79 of 167 Meeting Date: August 3, 2009Town Council 45 of 145 Meeting Date: June 7, 2010 SECTION 3. STANDARDS OF CONDUCT A. Gifts. 1. No Town Official shall intentionally or knowingly solicit or accept any contribution, Gift, or Economic Benefit with actual or constructive knowledge that same is: (a) offered or given with intent to influence the judgment or discretion of such Town Official; or (b) given in consideration of the favorable exercise of such Town Official's judgment or discretion in the past. 2. No Town Official shall intentionally or knowingly solicit or accept any Gift in violation of state law. When determining whether a violation of state law has occurred, the Ethics Commission shall use state law standards as interpreted by case law and the Texas Attorney General. Unless otherwise opined by the Texas Attorney General or a court of competent jurisdiction, the following items or services do not constitute prohibited Gifts: (a) Political contributions made and reported in accordance with all applicable federal, state, or local laws. (b) Awards publicly presented in recognition of public service. (c) Entertainment, meals or refreshments furnished in conjunction with public events, appearances, or ceremonies related to official Town business, if furnished by the sponsor of such public event, and meals and refreshments when furnished or provided to the Town Official during the conduct of public business. (d) Pens, pencils, calendars, T-shirts, caps and similar items containing logos, slogans, company names or other marketing material and commonly given out for advertising purposes. B. General Provisions. 1. No Town Official shall intentionally or knowingly disclose any confidential or privileged information gained by reason of such Town Official's position. No Town Official shall use any such confidential information for the Pecuniary Gain of such Official, or others. 2. No Town Official shall intentionally or knowingly appear before the body of which the Official is a member while representing himself, or any other Town Council 80 of 167 Meeting Date: August 3, 2009Town Council 46 of 145 Meeting Date: June 7, 2010 person, group, association, interest, or Business Entity. This subsection shall not be applicable in instances where the Town Official is a member of, serves on the Commission, or serves in an office of a group, association or other entity by reason of having appointed to serve in such position by the Town Council. 3. No Town Official shall intentionally or knowingly represent directly or indirectly any private person, group, or interest other than himself/herself or a Family Member before any department, agency, commission or board of the Town for pay or profit. 4. No Town Official shall intentionally or knowingly interfere with the Town Manager’s administrative duties of appointment to and removal of persons from employment with the Town. Nor shall private directives be made to Town staff by such Official. 5. No Town Official shall vote on or participate in any decision making process if the Official has a direct or indirect financial interest in the outcome of the matter under consideration, as defined by state law. No Town Official shall vote on or participate in any decision making process on any matter concerning real property or a Business Entity if the Official has a substantial interest in the Business Entity or real property as defined by state law. SECTION 4. DISCLOSURE OF INTEREST If any Town Official has a Substantial Interest in any real property or Business Entity involved in any decision pending before the body of which the Official is a member, the Official shall not vote or otherwise participate in the consideration of the matter. Such Town Official shall publicly disclose, verbally and in writing, the nature and extent of such interest to the body on which the Official serves prior to any discussion or determination of the matter to be considered or immediately upon discovery of the conflict of interest. The Official shall complete the following statement of disclosure and file such statement in the official minutes of the body: AFFIDAVIT OF CONFLICT OF INTEREST THE STATE OF TEXAS § COUNTY OF DENTON § I, ________________________________ as a member of the Trophy Club ________________ make this affidavit and hereby on oath state the following: I, and/or a person or persons related to me in the first degree by either affinity or consanguinity, have a substantial interest in a business entity that would be peculiarly affected by a vote or decision of the Trophy Club _____________, as those terms are defined in Chapter 171 of the Local Government Code, as amended and other state law. Date of Meeting: ______________ Agenda Item Number: ___________________ The Business Entity is: Town Council 81 of 167 Meeting Date: August 3, 2009Town Council 47 of 145 Meeting Date: June 7, 2010 ______________________________________________________________________ ________________________________ have a substantial interest in this business entity for the following (Insert “I” or the name of other persons) reasons: (check all which are applicable)  Ownership of 10% or more of the voting stock or shares of the business entity.  Ownership of 10% or $15,000 or more of the fair market value of the business entity.  Funds received from the business entity exceed 10% of my gross income for the previous year.  Real property is involved and I have an equitable or legal ownership with a fair market value of at least $2,500.  Other ___________________________________________________________________________. Upon the filing of this affidavit with the Official Record Keeper of the Town, I affirm that I will abstain from voting on any decision involving this business entity and from any further participation on this matter whatsoever. Signed this ___________ day of ___________________________, 20_____. ______________________________________ Signature of Official ______________________________________ Title BEFORE ME, the undersigned authority, this day personally appeared ___________________________ and on oath stated that the facts hereinabove stated are true to the best of their knowledge or belief. SWORN TO AND SUBSCRIBED BEFORE ME on this ___________ day of _______________, 20____ (Seal) ____________________________________ Notary Public in and for the State of Texas SECTION 5. ETHICS COMMISSION A. An Ethics Commission (the "Commission") is hereby established. The Commission shall be composed of six (6) members, all of whom shall reside in the Town. Commission members shall be appointed by vote of four (4) or more members of the Town Council, serve at the pleasure of the Town Council, and may be removed by a vote of four (4) or more members of the Town Council. B. Commission members must be registered voters who are residents of the Town of Trophy Club and possess all qualifications to serve on a Commission as set forth in the Town’s Ordinances and Handbook for Elected and Appointed Officials. No member of the Commission may be: 1. A Town Official, or employee, or relative of a Town Official or employee; or Town Council 82 of 167 Meeting Date: August 3, 2009Town Council 48 of 145 Meeting Date: June 7, 2010 2. A person holding an elected or appointed public office of any governmental entity; or 3. A person who has filed to run or who is running to hold an elected or appointed public office of any governmental entity; 4. A person who holds any office for any political party; or 5. Anyone having an economic interest in any Business Entity owned in whole or in part by any Town Official or employee, or by which any Town Official is employed; or 6. A person who has any Business Dealings with a Town Official or employee; or 7. A person who has been a paid campaign worker or political consultant for any Town Council member or Candidate. C. Commission members shall serve without Compensation, but shall be eligible to be reimbursed for actual expenses in accordance with Town policy. D. Term of Office. The first year of its existence, three (3) Commission members shall be appointed to serve for a one (1) year term each with such term expiring in September, 2010, and three (3) Commission members shall be appointed for a two (2) year term each with such term expiring in September, 2011. Thereafter, all members shall be appointed to two (2) year staggered terms with the terms of three (3) members expiring in even years and the terms of three (3) members expiring in odd numbered years. E. All vacancies shall be filled for the unexpired term. A member shall hold office until his or her successor has been appointed by the Town Council. Any member who no longer resides within the corporate boundaries of the Town is deemed to have automatically vacated his/her position on the Commission. F. The Commission shall elect a Chair and a Vice-Chair to one (1) year terms. The Vice-Chair shall act as Chair in the absence of the Chair. G. Four (4) members of the Commission shall constitute a quorum, but no action of the Commission shall be of any force or effect unless it is adopted by the favorable unanimous vote of the Commission. SECTION 6. ADVISORY OPINIONS The Commission shall render advisory opinions on potential conflicts of interest Town Council 83 of 167 Meeting Date: August 3, 2009Town Council 49 of 145 Meeting Date: June 7, 2010 or violations of this Article at the request of a Town Official. Such advisory opinion shall be rendered within a reasonable time, but in no event later than thirty (30) days after a request therefore is received by the Commission. A. It shall be a defense to the prosecution of proceedings on an alleged violation of this Article that the person accused previously requested an advisory opinion of the Commission and acted on such opinion in good faith, unless material facts were omitted or misstated by the person requesting the opinion. Such advisory opinion shall also be binding on the Commission in any subsequent charges concerning the person requesting the opinion. B. Independent legal counsel shall be retained to advise the Commission. SECTION 7. COMPLAINT PROCESS A. Sworn Complaint Required. Only the filing of a written sworn complaint with the Town Secretary's office, shall specific violations of this Article that are alleged to have been committed by Town Officials be considered. A sworn complaint alleging a violation shall be based on personal knowledge and shall meet the requirements set forth herein. B. Complaint Content. The written complaint shall contain (1) the name of the complaining party (hereinafter “Complainant”); (2) the name of the party against whom the complaint is being filed (hereinafter “Respondent”); (3) the specific provision of this Article allegedly violated; (4) specific dates, approximate time of day, locations and other facts evidencing the alleged violations; and (5) any documentation evidencing that the alleged violation occurred. C. Complaint Review. Not later than ten (10) working days after the Town Secretary receives a sworn complaint, the Town Secretary shall acknowledge the receipt of the complaint to the complainant, and provide a copy of the complaint to the Town Council, Town Manager, Town Attorney and the person complained against. Within such ten (10) day time period, the Town Secretary shall review the complaint to determine if it meets all of the requirements set forth in this section, and alternatively, if the complaint does not meet all of the requirements set forth in the preceding paragraph, the Town Secretary shall, within such ten (10) day period, notify the Complainant in writing of the nature of the deficiency, and no further action by the Town Secretary or Council shall be necessary until such time as the Town Secretary determines that the complaint meets the requirements of paragraph (a) above. If the written sworn complaint meets all of the requirements set forth in paragraph (a) above, the Town Secretary shall place the complaint on the next available regular Council meeting agenda for which posting requirements may legally and procedurally be met. D. Council Review. Once placed upon the Council agenda, the scope of the Council Town Council 84 of 167 Meeting Date: August 3, 2009Town Council 50 of 145 Meeting Date: June 7, 2010 review shall be limited to a determination of whether the complaint on its face presents a violation of this Article for which sanctions would be appropriate in order to serve the legitimate goal of orderly governance, integrity, and public confidence in government. Upon affirmative vote of four (4) members of Town Council that the complaint merits further review and investigation, the complaint shall be forwarded to the Ethics Commission for consideration. As part of its determination, the Town Council may specify any and all individual allegations from the Complaint that merit review and investigation by the Ethics Commission at a hearing on the matter. Alternatively, if upon review of the complaint on its face, four (4) members of the Town Council vote that further review and investigation is not warranted, then the Complainant shall be notified in writing of such vote, the written complaint shall be returned to the Complainant, and no further action shall be required. E. Documents Confidential. All documents related to a sworn complaint are confidential, unless they are required to be disclosed under the Texas Public Information Act, as amended. F. Notices After Council Referral. Not later than ten (10) working days after the Town Council votes to refer a complaint to the Ethics Commission, the Town Secretary shall notify the Complainant and Respondent in writing of the date and time at which the Ethics Commission will consider the complaint. A copy of the complaint shall also be provided to independent legal counsel advising the Commission. The Commission hearing date shall be no later than twenty (20) working days from the date that the Council referred the complaint to the Ethics Commission. If the Commission does not hold a hearing within thirty (30) working days of Council referral, it shall notify the person who made the complaint of the reasons for the delay and shall subsequently give him or her the appropriate notification of the hearing date. If the Commission does not hold a hearing within sixty (60) days of Council referral of the complaint, the complaint shall be deemed null and void. G. Complaints Required to be Timely Made. A sworn complaint alleging a violation of this Article must be filed with the Town Secretary within six (6) months after the date of the act alleged to be a violation. Complaints filed after such six (6) month period shall not be considered by the Commission. SECTION 8. HEARINGS AND DISPOSITION OF ALLEGED VIOLATIONS. A. Commission 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 posted meeting of the Commission; provided that the Chair, or as applicable the Vice-Chair, may consult with the attorney for the Commission as to process, procedure and legal issues. Town Council 85 of 167 Meeting Date: August 3, 2009Town Council 51 of 145 Meeting Date: June 7, 2010 B. Hearing. In accordance with the time frames set forth in Section 7 of this Article, but in no event more than sixty (60) days after referral of a complaint from Town Council, the Commission shall conduct a hearing. 1. The Complainant shall state the alleged violation and shall describe in narrative form the testimony and other evidence to prove the alleged violation as stated in the written complaint. Statements at the hearing shall be under oath, but there shall be no cross-examination or requests for persons or evidence issued for the hearing. Members of the Commission or its legal counsel may question the Complainant, the Respondent or his or her representative, and any witness proffered by either the Complainant or Respondent. 2. The Respondent named in the complaint shall have the opportunity to respond, but is not required to attend or make any statement. The Official may describe in narrative form the testimony and other evidence to disprove the alleged violation of this Article. If the Official agrees that a violation of this Article has occurred, he may so state and the Commission may consider the appropriate sanction. 3. The Complainant and the Respondent shall have the right to employ and to be represented by legal counsel. 4. The issue at hearing shall be whether a violation of this Article has occurred. The Ethics Commission shall make its determination based on clear and convincing evidence in the record. All witnesses shall make their statements under oath. If the Commission determines by unanimous vote that a violation of this Article has occurred, it shall state its findings in writing, shall identify the particular provision(s) of this Article which have been violated, and within ten (10) working days shall deliver a copy of the findings to the Complainant, the Respondent, and the Town Secretary. 5. The Commission, at any time during the hearing, may dismiss a complaint if the Commission determines that the complaint does not allege conduct which would be a violation of this Article. 6. The Ethics Commission may grant two (2) postponements, not to exceed fifteen (15) days each, upon the request of the Town Official named in the complaint. SECTION 9. DISPOSITION AND SANCTIONS. A. Violation Found. If the Ethics Commission determines that a violation of this Article has occurred, it shall proceed directly to determination of the appropriate Town Council 86 of 167 Meeting Date: August 3, 2009Town Council 52 of 145 Meeting Date: June 7, 2010 sanction(s). B. Possible Sanctions. If the Ethics Commission determines that a violation of this Article has occurred, it may impose or recommend the following sanctions: 1. For a first violation, a letter of notification shall be the appropriate sanction when the violation is clearly unintentional, or when the Town Official's conduct complained of was made in reliance on a written opinion of the Town Attorney. A letter of notification shall be directed to the Official complained against, with a copy to the Complainant and to the Town Secretary. 2. For a second violation, a letter of admonition shall be the appropriate sanction in those cases in which the Commission finds that the violation is minor. 3. For a third violation, a letter of reprimand shall be the appropriate sanction when the Commission finds that a violation has been committed intentionally or with knowing disregard of this Article. 4. For a fourth or subsequent violation, a letter of censure shall be the appropriate sanction when the Commission finds that repeated violation(s) of this Article has been committed intentionally or through knowing disregard of this Article by a Town official. A letter of censure shall be directed to the Respondent with a copy sent to the Town Secretary, Town Council, Town Manager, and Town Attorney. SECTION 10. FALSE COMPLAINTS. A. In the event a complaint is received by the Commission that is subsequently found to be baseless, and the Commission deems that the complaint was filed with the intent to: 1. harass the person named in the complaint; or 2. damage any person's reputation; or 3. benefit the person filing the complaint, or a third party, either personally, professionally or politically; or 4. damage a related third party the Commission may recommend to the Town Council that the Town reimburse the reasonable legal fees and expenses incurred by the Respondent. The Town Attorney shall make a determination as to what constitutes reasonable fees and Town Council 87 of 167 Meeting Date: August 3, 2009Town Council 53 of 145 Meeting Date: June 7, 2010 expenses for the representation of the Respondent. The Town Council shall determine whether such fees and expenses shall be reimbursed, and if reimbursement is approved, the amount to be reimbursed. SECTION 11. CODE OF ORDINANCES. The Code of Ordinances of the Town is hereby amended to include the terms and provisions of this Ordinance. All ordinances, parts of ordinances and the Code of Ordinances in conflict herewith are hereby amended to the extent of such conflict only. If a provision of this Ordinance and any other ordinance shall conflict, the terms of this Ordinance shall govern and control and the other ordinance or Code provision shall be read and construed in a manner consistent with the intent and provisions of this Ordinance. SECTION 12. SEVERABILITY. If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or its application to any person or circumstance is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance; and the Town Council hereby declares it would have passed such remaining portions of the Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 13. EFFECTIVE DATE. This Ordinance shall take effect immediately from and after its passage and publication in accordance with the provisions of the Texas Local Government Code, and it is accordingly so ordained. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this 3rd day of August, 2009. Mayor, Connie White Town of Trophy Club, Texas [SEAL] ATTEST: Town Council 88 of 167 Meeting Date: August 3, 2009Town Council 54 of 145 Meeting Date: June 7, 2010 Lisa Hennek, Town Secretary Town of Trophy Club, Texas APPROVED TO AS FORM: Patricia A. Adams, Town Attorney Town of Trophy Club, Texas Town Council 89 of 167 Meeting Date: August 3, 2009Town Council 55 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Town Manager DRAFT 04-6-10 Rev 1 WCR Page 1 of 16 TOWN OF TROPHY CLUB, TEXAS ORDINANCE 2010 - AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS, PROVIDING AN ETHICS POLICY; DEFINING CERTAIN TERMS; PROVIDING FOR STANDARDS OF CONDUCT; PROVIDING FOR CERTAIN FINANCIAL DISCLOSURES; ESTABLISHING AN ETHICS COMMISSION; PROVIDING FOR DISPOSITION OF ALLEGED VIOLATIONS; AMENDING THE CODE OF ORDINANCES; PROVIDING AN EFFECTIVE DATE AND SAVINGS CLAUSE; AND PROVIDING FOR RELATED MATTERS. WHEREAS, the Town of Trophy Club, Texas is a home rule city acting under its Charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS, at a Special Election held in accordance with Ordinance 2009-07, within the Town of Trophy Club, Texas, on the 9th day of May, 2009, more than a majority of the duly qualified resident electors of the Town of Trophy Club, voting in the Special Election, voted in favor of the approval and adoption of various amendments to the Home Rule Charter for the Town of Trophy Club, Texas; and WHEREAS, on the 18th day of May, 2009, the Town Council of the Town of Trophy Club adopted Ordinance 2009-12 canvassing the returns of the Special Election and declaring that the Charter had been so amended in accordance with the official results of the Special Election and the Order of the Special Election, and thereby approved and adopted amendments to the Home-Rule Charter of the Town of Trophy Club; and WHEREAS, a Code of Ethics and Conduct, and an Ethics Commission amendment were included in Ordinance 2009-07 and Ordinance 2009-12; and WHEREAS, the Code of Ethics and Conduct, and Ethics Commission amendment requires an ethics and conduct ordinance be adopted by the Town Council; and WHEREAS, the Code of Ethics and Conduct, and Ethics Commission amendment requires an ethics and conduct ordinance be applicable to elected officers, appointed board, commission, and committee members, and employees of the Town; and WHEREAS, the Code of Ethics and Conduct, and Ethics Commission amendment requires establishment of an independent Ethics Commission; and WHEREAS, statutory provisions governing the ethical conduct of public officials and employees are found in various codes including the Texas Local Government Code, Texas Government Code and the Texas Penal Code; and WHEREAS, the conduct of the public business should be accomplished by Town Officials, appointees and employees that have no personal financial interest in such business clearly separate from that of the general public; and WHEREAS, it is important that Town Officials, appointees and employees be provided with a process and procedure to give notice and to then refrain from participation in any Comment [Council1]: This revision changes process from Commission to Town Manager for employees of the Town. The process change occurs after filing with the Town Secretary. Town Council 56 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Town Manager DRAFT 04-6-10 Rev 1 WCR Page 2 of 16 specific business of the Town in which such Official has a personal financial interest different from that of the general public; and WHEREAS, a reasonable ethics ordinance with disclosure requirements will provide a basis for continuing public confidence in the conduct of the business and affairs of the Town; WHEREAS, the employees of the Town are responsible and answerable to the Town Manager, the Town Manager shall apply the terms and provisions of this Ordinance to the employees of the Town; NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, THAT: CODE OF ETHICS AND CONDUCT SECTION 1. POLICY (1) It is the policy of the Town that the proper operation of democratic government requires that Town officials, appointees and employees be independent, impartial and responsible to the people; that governmental decisions and policy be made in proper channels of the governmental structure; that public office not be used for personal gain; and that the public have confidence in the integrity of its government in recognition of these goals, a code of ethics and conduct for all Town officials, appointees and employees is adopted. (2) This code of ethics has four purposes: (a) to encourage high ethical standards in official conduct by Town officials, appointees and employees; (b) to establish guidelines for ethical standards of conduct for all such officials, appointees and employees by setting forth those acts or actions that are incompatible with the best interests of the Town; (c) to require disclosure by such officials, candidates, appointees and employees of private financial or other interests in matters affecting the Town; and (d) to serve as a basis for disciplining those who fail to abide by its terms. (3) The provisions of this article shall not apply to political contributions, loans, expenditures, reports or regulation of political campaigns, or the conduct of candidates in such campaigns, except as expressly provided herein. SECTION 2. PRINCIPLES OF CONDUCT (1) The Town Council further believes that an elected or appointed Town official assumes a public trust and should recognize the importance of high ethical standards within the organization they lead or support. Essential values and ethical behaviors that an elected or appointed official should exemplify include the following: (a) Commitment beyond self. Comment [Council2]: Added “WHEREAS, the employees of the Town are responsible and answerable to the Town Manager, the Town Manager shall apply the terms and provisions of this Ordinance to the employees of the Town;” Town Council 57 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Town Manager DRAFT 04-6-10 Rev 1 WCR Page 3 of 16 (b) Obedience and commitment beyond the law. (c) Commitment to the public good. (d) Respect for the value and dignity of all individuals. (e) Accountability to the public. (f) Truthfulness. (g) Fairness. (h) Responsible application of resources. (2) In keeping with the values set forth in subsection (1) of this section and to assist in the fulfillment of responsibilities to the individuals and communities served, each elected or appointed official should: (a) Conduct himself and operate with integrity and in a manner that merits the trust and support of the public. (b) Uphold all applicable laws and regulations, going beyond the letter of the law to protect and/or enhance the Town's ability to accomplish its mission. (c) Treat others with respect, doing for and to others what the official would have done for and to himself in similar circumstances. (d) Be a responsible steward of the taxpayer resources. (e) Take no actions that could benefit the official personally at the unwarranted expense of the Town, avoiding even the appearance of a conflict of interest, and exercise prudence and good judgment at all times. (f) Carefully consider the public perception of personal and professional actions and the effect such actions could have, positively or negatively, on the Town's reputation both in the community and elsewhere. (g) Strive for personal and professional growth to improve effectiveness as an elected or appointed official. (3) Interpretation. Section 2 is a statement of purpose and principles only. Nothing in this section may be used to create a cause of action against an official or employee under this article. SECTION 3. DEFINITIONS Town Council 58 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Town Manager DRAFT 04-6-10 Rev 1 WCR Page 4 of 16 Appears Before. A person appears before the Town Council, board or commission when such person publicly states his name and address, signs a sheet provided for that purpose, and addresses the Council, board or commission. Appointee. Persons appointed or confirmed by the Mayor or Town Council; provided however for the purposes of this definition, the term “appointee” does not include Municipal Judges. Business Entity. Any corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self-employed individual, holding company, joint stock company, receivership, trust, or any legal entity organized for profit. Business Dealings. Any activity involving the exchange of economic benefits. Candidate. Every person who declares for or files for any office of the Town to be filled by election. Compensation. Any economic benefit received in return for labor, services, property, or investment. Economic Benefit. Any money, real or personal property, purchase, sale, lease, contract, option, credit, loan, discount, service, or other tangible or intangible thing of value, whether similar or dissimilar to those enumerated. Employee. Any person employed by the Town whether under civil service regulations or not, including those individuals on a part-time basis, but such term shall not be extended to apply to any independent contractor. Family Member. The spouse, parent or child, and the parents of a spouse of a Town official, appointee, or Town employee. Gift. A favor, hospitality, or economic benefit other than compensation but which does not include campaign contributions reported as required by State law, gifts received from a relative if given on account of kinship, or any value received by will, intestate succession, or as a distribution from an inter vivo or testamentary trust established by a spouse or ancestor. Identification. For a natural person, the person’s name, street address, city and state; for any entity other than a natural person, the name, address, city and state of the entity’s principal location or place of business, the type or nature of the entity, the date on which it came into existence, the state of incorporation, if any, and the names of the partners or trustees, if any. Income. Economic benefit received. Intentionally. A person acts intentionally, or with intent, with respect to the nature of his conduct or to a result of his conduct when it is his conscious objective or desire to engage in the conduct or cause the result. Town Council 59 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Town Manager DRAFT 04-6-10 Rev 1 WCR Page 5 of 16 Knowingly. A person acts knowingly, or with knowledge, with respect to the nature of his conduct or to circumstances surrounding his conduct when he is aware of the nature of his conduct or that the circumstances exist. A person acts knowingly, or with knowledge, with respect to a result of his conduct when he is aware that his conduct is reasonably certain to cause the result. Pecuniary Gain. Any use, benefit or thing of value that can be valued in money. Source of Income. Any business entity, employment, investment, or activity which earned or produced income, including interest, dividends, royalties or rents, which has been paid to or for the credit of a Town official, candidate or family member or which would be taxable to said Town official, candidate or family member under the United States Internal Revenue Code, as amended, even though not actually paid or credited. Substantial Interest. A person has a substantial interest in a business entity if he and/or a family member (a) owns ten percent (10%) or more of the voting stock or shares of the business entity; (b) owns ten percent (10%) or more or $15,000 or more of the fair market value of the business entity; or (c) funds received from the business entity exceed ten percent (10%) or more of the person’s gross income for the previous year. A person has a substantial interest in real property if he, his parent or child, or if married his spouse or his spouse’s parent, controls or has an interest in the property and the interest has a market value of $2,500.00 or more. Town Official. The Mayor, every member of the Town Council, candidates, the Town Manager, the Assistant Town Manager, the Town Attorney, the Town Secretary, Judges of the Municipal Court, the Police Chief, the Fire Chief, the Finance Director, the Information Services Director, the Parks and Recreation Director, the Human Resources Director, the Streets Superintendent, the Planning and Zoning Coordinator and persons acting in the capacity of the aforementioned Town officials, appointees, or employees. SECTION 4. STANDARDS OF CONDUCT (1) Gifts No Town official, appointee, or employee shall intentionally or knowingly accept or solicit any gift, benefit, favor, service or thing of value, such that it might reasonably tend to influence the judgment or discretion of the officer or employee; or that the officer or employee knows or should know is being offered with the reasonable intent to influence the officer's or employee's judgment or discretion; or given in consideration of the favorable exercise of such employee or official’s judgment or discretion in the past. (2) General Provisions (a) No Town official, appointee, or employee shall intentionally or knowingly disclose any confidential information gained by reason of said official or employee’s position concerning the property, operations, policies or affairs of the Town Council 60 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Town Manager DRAFT 04-6-10 Rev 1 WCR Page 6 of 16 Town, or use such confidential information for the pecuniary gain of said official, employee, or others. (b) No Town official, appointee, or employee shall use, request, or permit the use of Town facilities, personnel, equipment, or supplies for private purposes (including political purposes), except: (1) pursuant to duly adopted Town policies; or (2) to the extent and according to the terms that those resources are generally available to the public. (c) Except as otherwise specifically authorized by ordinance, no Town official or appointee shall intentionally or knowingly appear before the body of which the official is a member while representing himself, or any other person, group, association, interest, or business entity. (d) No Town official, appointee or employee shall intentionally or knowingly represent directly or indirectly any private person, group, or interest other than himself or a family member before any department, agency, commission or board of the Town for economic benefit or pecuniary gain. (e) No Town official, appointee, or employee shall vote on or participate in any decision making process if the official or employee has a direct financial interest in the outcome of the matter under consideration. No Town official, appointee, or employee shall vote on or participate in any decision making process on any matter concerning real property or a business entity if the Town official, appointee, or employee has a substantial interest in the business entity or real property. (f) No Town official, appointee or employee shall intentionally or knowingly accept other employment or engage in outside activities incompatible with the full and proper discharge of official duties and responsibilities, or which would tend to impair independent judgment in the performance of said official duties. (g) None of the foregoing shall be construed to prohibit any Town official, appointee, or employee from representing his interest in his owner occupied homestead before the Council, board, commission or any department except for the body of which the official is a member, or the department by which the employee is employed. (h) In any action or proceeding in the municipal court of the Town which was instituted by a Town official or employee in the course of official duties, no Town official shall knowingly represent anyone other than himself or a family member. If a Council member elects to have a trial in municipal court, the Town Council, without the participation of the affected council member, shall appoint a special judge to preside over the trial. (i) No Town official shall act as a surety for any person or business entity that has any contract with the Town, or on any bond required by the Town for any Town official or employee. Town Council 61 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Town Manager DRAFT 04-6-10 Rev 1 WCR Page 7 of 16 SECTION 5. DISCLOSURE OF INTEREST (1) If any Town official or appointee has a substantial interest in any real property or business entity involved in any decision pending before the body of which the Town official or appointee is a member, the Town official or appointee shall not vote or otherwise participate in the consideration of the matter. (2) If any employee has a substantial interest in any real property or business entity involved in any decision pending before the department by which the employee is employed, the employee shall not participate in the consideration of the matter. (3) In the case of a Town official or appointee, the Town official or appointee shall publicly disclose, verbally or in writing, the nature and extent of such interest to the body on which the Town official or appointee serves prior to any discussion or determination of the matter to be considered or immediately upon discovery of the conflict of interest. The statement of disclosure shall be included in the official minutes of the body. (4) In the case of an employee, the employee shall disclose such information in writing to the employee’s supervisor and to the Town Secretary prior to any consideration of the matter. The Town Secretary shall keep a file of employee statements of disclosure and said file shall be a public record of the Town. SECTION 6. FINANCIAL DISCLOSURE (1) No later than April 30th of each year, each Town official shall file a sworn financial disclosure statement with the Town Secretary reflecting the financial situation of the Town official as of December 31st of the previous year. Notwithstanding any other term or provision of this Article, as used in this section: (a) the term “family member” shall include only the Town official, and the spouse and the minor children of the Town official; (b) the term “substantial interest” shall include only the interests of the Town official, the spouse and minor children of the Town official; and (c) the annual financial disclosure statement shall not include the assets or property of any person other than those of the Town official, the spouse and minor children of the Town official. (2) A newly employed or appointed Town official shall file a sworn financial disclosure statement with the Town Secretary within thirty (30) days from the date the position with the Town is assumed. Said statement shall reflect the financial situation as of date of employment or appointment and for the previous twelve (12) months, provided, however, such Town official shall not be required to include in such statement the requirements of paragraphs (4) (f), (g), and (h) of this section. Town Council 62 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Town Manager DRAFT 04-6-10 Rev 1 WCR Page 8 of 16 (3) Each candidate shall file a sworn financial disclosure statement with the Town Secretary within fifteen (15) days of filing for office, reflecting the financial situation of the candidate as of December 31st of the year previous to the election date. (4) Each person required to file a financial disclosure statement shall do so on a form supplied by the Town which shall include the following information: (a) The person’s name, residence address, business address, telephone number, name of all family members and all names under which the person or family member does business. (b) Identification by street address, and legal description of all real property located within the Town or its extraterritorial jurisdiction in which the person has a substantial interest. (c) Identification of each business entity owning property or doing business within the Town or its extraterritorial jurisdiction in which the person has a substantial interest. (d) Identification of each person or business entity to whom the person or family member owed a debt of ten thousand dollars ($10,000) or more during the reporting period, but not including debts owed to persons related within the second degree of consanguinity or affinity, or revolving charge accounts, and excluding loans to a political campaign which were reported as required by law; if repaid during the reporting period the date of repayment shall be stated. (e) Identification of each source of income amounting to ten (10) percent or more of the person’s or family member’s gross annual income as defined by the United States Internal Revenue Code. (f) Identification of the donor of each gift of more than one hundred fifty dollars ($150.00) in value received by the person or family member, including the value of the gift, where such donor has appeared before and requested action of the Town Council during the reporting period. (g) Identification of the donor of two or more gifts of an accumulated value of six hundred dollars ($600.00) or more received by the person or family member, where such donor has appeared before and requested action of the Town Council during the reporting period. (h) Identification of all individuals or business entities that: (i) he or a business entity in which he has a substantial interest has had business dealings involving one or more transactions of five hundred dollars ($500.00) or more each, for a total of twenty-five hundred dollars ($2,500) or more, and (ii) have appeared before and requested action of the Town Council during the reporting period. Town Council 63 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Town Manager DRAFT 04-6-10 Rev 1 WCR Page 9 of 16 (5) The Town Secretary shall maintain all financial disclosure statements required to be filed herein as public records and retain them for a period of three (3) years after which statements shall be returned to the person filing them or be destroyed. (6) A Town official, appointee, or employee shall immediately and publicly identify either verbally on the record or in writing, all individuals or business entities that: (a) he or a business entity in which he has a substantial interest or has had business dealings involving one or more transactions of five hundred dollars ($500.00) or more each, for a total of twenty-five hundred dollars ($2,500) or more within the immediately preceding twelve (12) month period, and (b) appeared before and requested some action of the Town Council, board or commission of which such reporting person is an advisor or member. (7) Within thirty (30) days of being appointed to the Planning and Zoning Commission and on each anniversary of that date, each member of such Commission shall file with the Town Secretary a sworn statement identifying by street address and legal description all real property located within the Town or its extraterritorial jurisdiction in which the member has a substantial interest. SECTION 7. ETHICS REVIEW COMMISSION (1) An Ethics Review Commission (Commission) is hereby established to be composed of seven (7) members, all of whom shall reside in the Town. (2) Each Commission member shall be appointed by the Town Council and shall occupy a position on the Commission, such positions being numbered 1 through 7. (3) The Commission members shall be appointed to three year staggered terms. Positions 1 and 2 shall serve an implementation term which shall expire on September 30 of 2011. Positions 3 and 4 shall serve an implementation term which shall expire on September 30 of 2012. Positions 5, 6, and 7 shall serve an implementation term which shall expire on September 30 of 2013. After each such implementation term expires, the term of office for each position shall be three years. No member shall serve for more than two (2) consecutive full terms. Implementation terms shall not be counted as full terms. (4) All vacancies shall be filled for the unexpired term. A member shall hold office until his successor has been appointed by the Town Council and shall continue to hold office after his successor has been appointed by the Town Council for the limited purpose of the disposition of all complaints filed during that member's term. No member may participate in a decision regarding a complaint initiated prior to the expiration of the previous member’s term, but new members shall assume the duties of office with respect to all complainants initiated after the previous member's term. Town Council 64 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Town Manager DRAFT 04-6-10 Rev 1 WCR Page 10 of 16 (5) The Commission shall elect a chairman and a vice-chairman to one (1) year terms. The vice-chairman shall act as chairman in the absence of the chairman. (6) Four (4) or more members of the Commission shall constitute a quorum, but no action of the Commission shall be of any force or effect unless it is adopted by the favorable vote of four (4) or more members. (7) The Commission shall meet at least once a year to review this article and may make recommendations to the Town Council for amendments hereto. (8) The Commission shall render advisory opinions on potential conflicts of interest or violation of this article at the request of a Town official, member of a Town board or commission, subject to the terms of this article. Such advisory opinion shall be rendered within a reasonable time, but in no event later than thirty (30) days after a request is received by the Commission. (9) It shall be a defense to an alleged violation of this article that the person accused previously requested an advisory opinion of the Commission and acted on such opinion in good faith, unless material facts were omitted or misstated by the person requesting the opinion. Such advisory opinion shall also be binding on the Commission in any subsequent charges concerning the person requesting the opinion. (10) Independent legal counsel shall be utilized to advise the Commission and participate in hearings. The Town Council shall annually designate and retain independent counsel who shall be a duly licensed attorney in the State of Texas. (11) The Commission shall have jurisdiction to review and make findings concerning any alleged violation of this article by any person subject to those provisions, if a complaint is filed within one year after the date of the alleged violation. The Commission may not consider any alleged violation that occurred before July 1, 2010 or more than one year before the date of the filing of a complaint. SECTION 8. DISPOSITION OF ALLEGED VIOLATIONS (1) A sworn complaint based on personal knowledge alleging a violation (s) of this article shall specify the provision (s) of this article alleged to have been violated, and shall name the Town official, candidate, appointee, or employee being charged. THE STATE OF TEXAS: COUNTY OF DENTON: TO: THE ETHICS REVIEW COMMISSION OF THE TOWN OF TROPHY CLUB, TEXAS: COMES NOW (complainant), and makes this complaint, UPON HIS/HER PERSONAL KNOWLEDGE AND UNDER OATH against (name of person complained against), and would show the Commission that: On or about the _______ day of ________________, ___,(insert date of the action, or omission, complained of) _____________________________________________, (name of person complained against) a/an (insert appropriate designation; Town official, candidate, appointee, Comment [Council3]: Deleted “or employee “ Town Council 65 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Town Manager DRAFT 04-6-10 Rev 1 WCR Page 11 of 16 employee, board or commission member) of the Town of Trophy Club, Texas, violated the following provision(s) of Code of Ethics and Conduct Ordinance, Town of Trophy Club, Texas, to wit: (Specify by Section, Subsection and Paragraph number the provision(s) alleged violated.) by committing the following act, or omission, to wit: ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ (Describe above, the action, or omission, alleged to violate each Code provision cited. You may attach additional pages if more space is required.) (2) Upon the aforesaid sworn complaint of any person being filed with the Town Secretary’s office, or on its own initiative, the Commission shall consider possible violations of this article by Town officials, candidates, and appointees. The Town Manager shall consider possible violations of this article by Town employees. A complaint shall not be deemed to be filed on the initiative of the Commission save and except the complaint be signed and sworn to by two (2) members of the Commission, one of which is the Chairman of the Commission, after consultation with the legal counsel of the Commission. A complaint filed by an individual member of the Commission shall be deemed to have been filed in the Commission member’s capacity as a private citizen and, in such event, the member of the Commission filing the complaint shall not thereafter participate in a Commission meeting at which such complaint is considered save and except that the Commissioner filing the complaint may participate as a complainant at such meeting. (3) A complaint alleging a violation of this article must be filed with the Town Secretary within one (1) year from the commission of the action alleged as a violation, and not afterward. (4) The Town Secretary shall, in writing, advise the person filing the complaint that falsely accusing someone of a violation of this article may result in criminal prosecution of anyone who knowingly makes a false accusation. The Town Secretary shall, in writing, advise the person charged in the complaint that falsely responding to a complaint may result in criminal prosecution of anyone who knowingly makes a false response. (5) Not later than three (3) working days after the Town Secretary receives a sworn complaint of violations of this article by Town officials, candidates, and appointees , the Town Secretary shall acknowledge the receipt of the complaint to the complainant, and provide a copy of the complaint to the Town Attorney, the independent counsel, the Commission and the person complained against. Not later than three (3) working days after the Town Secretary receives a sworn complaint of violations of this article by a Town employee, the Town Secretary shall acknowledge the receipt of the complaint to the complainant, and provide a copy of the complaint to the Town Attorney, the Town Manager, and the person complained against. Not later than ten (10) working days after receipt of a complaint, the Commission shall notify in writing the person who made the complaint and the person complained against of a date for a preliminary hearing. If the Commission does not hold a preliminary hearing within twenty (20) working days of receipt of the complaint, it shall notify the person who made the complaint of the reasons for the delay and shall subsequently give him the appropriate notification. Comment [Council4]: Delete “appointees and employees” Comment [Council5]: Added “The Town Manager shall consider possible violations of this article by Town employees.” Comment [Council6]: Delete “appointees and employees” Comment [Council7]: Added “violations of this article by Town officials, candidates, and appointees” Comment [Council8]: Added “Not later than three (3) working days after the Town Secretary receives a sworn complaint of violations of this article by a Town employee, the Town Secretary shall acknowledge the receipt of the complaint to the complainant, and provide a copy of the complaint to the Town Attorney, the Town Manager, and the person complained against.” Town Council 66 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Town Manager DRAFT 04-6-10 Rev 1 WCR Page 12 of 16 (6) The Commission may consider possible violations of this article on its own initiative. Within seven (7) days of the Commission’s decision to consider a possible violation of this article, the Commission shall draft a written complaint specifying the provision(s) of this article alleged to have been violated and shall file a copy with the Town Secretary, and provide a copy to the Town Attorney, the independent counsel, and the person complained against. Not later than fifteen (15) days after the drafting of the complaint, the Commission shall notify in writing the person complained against of the date for the preliminary hearing. (7) 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; provided that a member may consult with the attorney or the staff liaison for the Commission as to process, procedure and legal issues. (8) No Town official or employee shall reveal information relating to the filing or processing of a complaint, except as required for the performance of official duties or as required by law. Ex parte communications by or to members of the Commission are prohibited. All papers and communications relating to a complaint must be treated as confidential unless required to be made public under the Public Information Act of the Texas Government Code or other applicable law. (9) As soon as reasonably possible, but in no event more than sixty (60) days after receiving a complaint, the Commission shall conduct a preliminary hearing. (a) The issue at a preliminary hearing shall be the existence of reasonable grounds to believe that a violation of this article has occurred. The person filing a complaint, or the independent counsel in cases considered upon the Commission’s own initiative, shall state the alleged violation and shall describe in narrative form the testimony and other evidence which would be presented to prove the alleged violation as stated in the written complaint. Statements at a preliminary hearing shall be under oath, but there shall be no cross examination or requests for persons or evidence issued for the hearing. Members of the Commission may question the complainant, the independent counsel for the Commission, or the Town official, or appointee named in the complaint. (b) The Town official, or appointee named in the complaint shall have the opportunity to respond, but is not required to attend or make any statement. The Town official, or appointee may describe in narrative form the testimony and other evidence which would be presented to disprove the alleged violation. If the Town official, or appointee agrees that a violation has occurred, he may so state and the Commission may consider the appropriate sanction. (c) The complainant and the Town official, or appointee named in the complaint shall have the right of representation by counsel. (d) At the conclusion of the preliminary hearing, the Commission shall decide whether a final hearing should be held; provided the Commission may proceed to determine the appropriate sanction if the charged Town official, or appointee Comment [Council9]: Changed from “appointee or employee” Comment [Council10]: Changed from “appointee or employee” Comment [Council11]: Changed from “appointee or employee” Comment [Council12]: Changed from “appointee or employee” Comment [Council13]: Changed from “appointee or employee” Comment [Council14]: Changed from “appointee or employee” Town Council 67 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Town Manager DRAFT 04-6-10 Rev 1 WCR Page 13 of 16 does not object and admits the charged violation, and the Commission determines that there are no fact issues to be resolved. If the Commission determines that there are reasonable grounds to believe that a violation of this article has occurred, it shall schedule a final hearing. If the Commission does not determine that there are reasonable grounds to believe that a violation of this article has occurred, the complaint shall be automatically dismissed. A decision to conduct a final hearing is not a finding that a violation has occurred. (e) The Commission, at any time during the preliminary hearing, may also dismiss a complaint if the complaint does not allege conduct which would be a violation of this article. Before a complaint is dismissed for failure to allege a violation, the complainant shall be permitted one opportunity, within ten (10) days of such preliminary hearing, to revise and resubmit the complaint. (f) The complainant, the independent counsel, and the Town official, or appointee named in the complaint may ask the Commission at a preliminary hearing to request certain persons and evidence for a final hearing, if one is scheduled. (10) Final Hearing (a) The final hearing shall be held as expeditiously as possible following the determination by the Commission that there are reasonable grounds to believe that a violation of this article has occurred, but in no event shall it be held more than thirty (30) days after said determination. The Commission may grant two (2) postponements, not to exceed fifteen (15) days each, upon the request of the Town official, or appointee named in the complaint. (b) The issue at a final hearing shall be whether a violation of this article has occurred. The Commission shall make its determination based on clear and convincing evidence in the record. All witnesses shall make their statements under oath. If the Commission determines that a violation has occurred, it shall state its findings in writing, shall identify the particular provision(s) of this article which have been violated, and within five (5) working days shall deliver a copy of the findings to the complainant, if any, the person named in the complaint and the Town Secretary. (c) If a complaint proceeds to a final hearing, the Commission may request and subpoena witnesses to attend and testify, administer oaths and affirmations, take evidence and request the production of books, papers, records, or other evidence needed for the performance of the Commission's duties or exercise of its powers, including its duties and powers of investigation. It shall be a violation of this article for a person to fail to appear and testify before the Commission in response to a request made in writing ten days or more prior to the scheduled time and date of the notice or request to appear. (11) Sanctions (a) If the Commission determines that a violation of this article has occurred, it shall proceed directly to determination of the appropriate sanction(s). A violation of this article shall not be subject to criminal penalties under the Town Code, Comment [Council15]: Changed from “appointee or employee” Comment [Council16]: Changed from “appointee or employee” Town Council 68 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Town Manager DRAFT 04-6-10 Rev 1 WCR Page 14 of 16 except for the two instances specifically provided for in this article Section 8 (10)(c) and Section 11. The Commission may receive additional testimony or statements before considering sanctions, but is not required to do so. If the Town official, or appointee named in the complaint acted in reliance upon a written opinion of the Town Attorney, the Commission shall consider that fact. (b) If the Commission determines that a violation of this article has occurred, it shall refer the matter to the Town Council. (c) When referring a matter under Subsection (b), the Commission may impose or recommend the following sanctions: (1) Letter of notification. A letter of notification may be recommended when the commission finds that a violation of this article was clearly unintentional or when the action or conduct found to have been a violation of this article was performed by the official or appointee in reliance on a public written opinion of the Town Attorney. A letter of notification must advise the official or appointee to whom the letter is directed of any steps to be taken to avoid future violations. (2) Letter of admonition. A letter of admonition may be recommended when the commission finds that the violation of this article was minor and/or may have been unintentional, but where the circumstances call for a more substantial response than a letter of notification. (3) Reprimand. A reprimand may be recommended when the commission finds that a violation of this article was committed intentionally or through disregard of this article. A letter of reprimand directed to an elected Town official shall also be transmitted to the Town Secretary and published in the official newspaper of the Town. (4) Removal or suspension from employment. A recommendation of removal from employment or a recommendation of suspension from employment, as well as a recommendation for length of suspension, shall be the appropriate sanction when the Commission finds that a serious or repeated violation(s) of this article has been committed intentionally or through culpable disregard of this article. (5) Censure, recall or removal from office. A letter of censure, a recommendation of recall, or a recommendation to institute proceedings for removal from office, shall be the appropriate sanction when the Commission finds that a serious or repeated violation(s) of this article has been committed intentionally or through culpable disregard of this article by an elected Town official. A letter of censure, a recommendation of recall, or a recommendation to institute proceedings for removal from office, directed to an elected Town official shall also be transmitted to the Town Secretary and published in the official newspaper of the Town. The Town Council and citizens of the Town may take actions in accordance with the Town Charter. Any proceedings for removal from office shall be in compliance with provisions of the Town Charter and State law. Comment [Council17]: Corrected from (8) to (10) Aligns with section 12 Comment [Council18]: Changed from “or appointee or Town employee” Comment [Council19]: Deleted after shall “take the following actions: (1) If the complaint involved a current employee under the jurisdiction of the Town Manager, the matter will be referred to the Town Manager (2) If the complaint involved the Town Manager, Town Attorney, Town Secretary, or a Judge of the Municipal Court, the matter will be referred to the Town Council. (3) If the complaint involved a Town Council member, a board or commission member, a former Town official, or a former Town employee, the matter will be referred to the Town Council. Added after shall “refer the matter to the Town Council” Comment [Council20]: Changed from “employee” Comment [Council21]: Changed from “employee” Comment [Council22]: Following article. Deleted “A reprimand directed to an employee shall be included in said employee’s personnel file. The Town Manager may also elect to discipline the employee in accordance with Town personnel rules and procedures.” Comment [Council23]: Following article, added (.) and deleted “by Town employees. The final authority to carry out such recommendations to suspend from employment and the length of suspension shall be with the Town Manager. The Town Manager may also elect to discipline the employee in accordance with Town personnel rules and procedures.” Town Council 69 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Town Manager DRAFT 04-6-10 Rev 1 WCR Page 15 of 16 (12) Dismissal. If the complaint is dismissed because the evidence failed to establish a violation of this article, the Commission shall not entertain any other similar complaint based on substantially the same evidence. SECTION 9. PETITION FOR DECLARATORY RULING. Any Town official or appointee against whom public allegations of ethics violations have been made in the media or elsewhere has the right to file a sworn statement with the Town Secretary affirming their innocence, and to request the Commission to review the allegations and make known its findings. Any Town employee against whom public allegations of ethics violations have been made in the media or elsewhere has the right to file a sworn statement with the Town Secretary affirming their innocence, and to request the Town Manager to review the allegations and make known the findings. SECTION 10. CULPABLE MENTAL STATE. To commit a violation under any provision of this article, a person must have acted or failed to act knowingly or with knowledge. SECTION 11. FALSE COMPLAINTS In the event a complaint is received by the Commission or Town Manager that is subsequently found to be baseless, and the Commission or Town Manager deems that the complaint was filed with the intent to: (a) harass the person named in the complaint; or (b) damage any person's reputation; or (c) benefit the person filing the complaint, or a third party, either personally, professionally or politically; or (d) damage a related third party; the Commission or Town Manager may recommend the Town Attorney cause a complaint to be filed against such person in the municipal court or, as appropriate, a higher court of this state; the Town Council or Town Manager, as appropriate, may take disciplinary action(s) against the individual who filed the complaint, including but not limited to disciplinary action if such complainant is a Town employee or appointed officer or official of the Town; and/or the filing of a civil action to recover the costs, fees, charges and expenses incurred by the Town and person named in the complaint with respect to such complaint. The Commission may also recommend other action(s) that should be taken. SECTION 12. PENALTIES Comment [Council24]: Changed from “employee” Comment [Council25]: Added “Any Town employee against whom public allegations of ethics violations have been made in the media or elsewhere has the right to file a sworn statement with the Town Secretary affirming their innocence, and to request the Town Manager to review the allegations and make known the findings.” Comment [Council26]: Added “or Town Manager” Comment [Council27]: Added “or Town Manager” Comment [Council28]: Added “or Town Manager” Comment [Council29]: Added “may” Town Council 70 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Town Manager DRAFT 04-6-10 Rev 1 WCR Page 16 of 16 (1) Any person who shall violate Section 8 (10) (c) or Section 11 of this article shall be deemed guilty of an offense and shall be liable for a fine not to exceed the sum of $500.00. Each day the violation exists shall constitute a separate offense. Such penalty shall be in addition to all the other remedies provided herein. (2) Any person who knowingly files a false sworn statement under this article is subject to criminal prosecution for perjury under the laws of the State of Texas. SECTION 13. CODE OF ORDINANCES. The Code of Ordinances of the Town is hereby amended to include the terms and provisions of this Ordinance. All ordinances, parts of ordinances and the Code of Ordinances in conflict herewith are hereby amended to the extent of such conflict only. If a provision of this Ordinance and any other ordinance shall conflict, the terms of this Ordinance shall govern and control and the other ordinance or Code provision shall be read and construed in a manner consistent with the intent and provisions of this Ordinance. SECTION 14. SEVERABILITY. If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or its application to any person or circumstance is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance; and the Town Council hereby declares it would have passed such remaining portions of the Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 15. EFFECTIVE DATE. This Ordinance shall take effect immediately from and after its passage and publication in accordance with the provisions of the Texas Local Government Code, and it is accordingly so ordained. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this XXX day of XXXXXX, 2010. Mayor, Connie White Town of Trophy Club, Texas [SEAL] ATTEST: Town Council 71 of 145 Meeting Date: June 7, 2010 DRAFT DRAFT 03-18-10 Rev 3 WCR Page 1 of 16 TOWN OF TROPHY CLUB, TEXAS ORDINANCE 2010 - AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS, PROVIDING AN ETHICS POLICY; DEFINING CERTAIN TERMS; PROVIDING FOR STANDARDS OF CONDUCT; PROVIDING FOR CERTAIN FINANCIAL DISCLOSURES; ESTABLISHING AN ETHICS COMMISSION; PROVIDING FOR DISPOSITION OF ALLEGED VIOLATIONS; AMENDING THE CODE OF ORDINANCES; PROVIDING AN EFFECTIVE DATE AND SAVINGS CLAUSE; AND PROVIDING FOR RELATED MATTERS. WHEREAS, the Town of Trophy Club, Texas is a home rule city acting under its Charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS, at a Special Election held in accordance with Ordinance 2009-07, within the Town of Trophy Club, Texas, on the 9th day of May, 2009, more than a majority of the duly qualified resident electors of the Town of Trophy Club, voting in the Special Election, voted in favor of the approval and adoption of various amendments to the Home Rule Charter for the Town of Trophy Club, Texas; and WHEREAS, on the 18th day of May, 2009, the Town Council of the Town of Trophy Club adopted Ordinance 2009-12 canvassing the returns of the Special Election and declaring that the Charter had been so amended in accordance with the official results of the Special Election and the Order of the Special Election, and thereby approved and adopted amendments to the Home-Rule Charter of the Town of Trophy Club; and WHEREAS, a Code of Ethics and Conduct, and an Ethics Commission amendment were included in Ordinance 2009-07 and Ordinance 2009-12; and WHEREAS, the Code of Ethics and Conduct, and Ethics Commission amendment requires an ethics and conduct ordinance be adopted by the Town Council; and WHEREAS, the Code of Ethics and Conduct, and Ethics Commission amendment requires an ethics and conduct ordinance be applicable to elected officers, appointed board, commission, and committee members, and employees of the Town; and WHEREAS, the Code of Ethics and Conduct, and Ethics Commission amendment requires establishment of an independent Ethics Commission; and WHEREAS, statutory provisions governing the ethical conduct of public officials and employees are found in various codes including the Texas Local Government Code, Texas Government Code and the Texas Penal Code; and WHEREAS, the conduct of the public business should be accomplished by Town Officials, appointees and employees that have no personal financial interest in such business clearly separate from that of the general public; and WHEREAS, it is important that Town Officials, appointees and employees be provided with a process and procedure to give notice and to then refrain from participation in any Town Council 72 of 145 Meeting Date: June 7, 2010 DRAFT DRAFT 03-18-10 Rev 3 WCR Page 2 of 16 specific business of the Town in which such Official has a personal financial interest different from that of the general public; and WHEREAS, a reasonable ethics ordinance with disclosure requirements will provide a basis for continuing public confidence in the conduct of the business and affairs of the Town; NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, THAT: CODE OF ETHICS AND CONDUCT SECTION 1. POLICY (1) It is the policy of the Town that the proper operation of democratic government requires that Town officials, appointees and employees be independent, impartial and responsible to the people; that governmental decisions and policy be made in proper channels of the governmental structure; that public office not be used for personal gain; and that the public have confidence in the integrity of its government in recognition of these goals, a code of ethics and conduct for all Town officials, appointees and employees is adopted. (2) This code of ethics has four purposes: (a) to encourage high ethical standards in official conduct by Town officials, appointees and employees; (b) to establish guidelines for ethical standards of conduct for all such officials, appointees and employees by setting forth those acts or actions that are incompatible with the best interests of the Town; (c) to require disclosure by such officials, candidates, appointees and employees of private financial or other interests in matters affecting the Town; and (d) to serve as a basis for disciplining those who fail to abide by its terms. (3) The provisions of this article shall not apply to political contributions, loans, expenditures, reports or regulation of political campaigns, or the conduct of candidates in such campaigns, except as expressly provided herein. SECTION 2. PRINCIPLES OF CONDUCT (1) The Town Council further believes that an elected or appointed Town official assumes a public trust and should recognize the importance of high ethical standards within the organization they lead or support. Essential values and ethical behaviors that an elected or appointed official should exemplify include the following: (a) Commitment beyond self. (b) Obedience and commitment beyond the law. (c) Commitment to the public good. Town Council 73 of 145 Meeting Date: June 7, 2010 DRAFT DRAFT 03-18-10 Rev 3 WCR Page 3 of 16 (d) Respect for the value and dignity of all individuals. (e) Accountability to the public. (f) Truthfulness. (g) Fairness. (h) Responsible application of resources. (2) In keeping with the values set forth in subsection (1) of this section and to assist in the fulfillment of responsibilities to the individuals and communities served, each elected or appointed official should: (a) Conduct himself and operate with integrity and in a manner that merits the trust and support of the public. (b) Uphold all applicable laws and regulations, going beyond the letter of the law to protect and/or enhance the Town's ability to accomplish its mission. (c) Treat others with respect, doing for and to others what the official would have done for and to himself in similar circumstances. (d) Be a responsible steward of the taxpayer resources. (e) Take no actions that could benefit the official personally at the unwarranted expense of the Town, avoiding even the appearance of a conflict of interest, and exercise prudence and good judgment at all times. (f) Carefully consider the public perception of personal and professional actions and the effect such actions could have, positively or negatively, on the Town's reputation both in the community and elsewhere. (g) Strive for personal and professional growth to improve effectiveness as an elected or appointed official. (3) Interpretation. Section 2 is a statement of purpose and principles only. Nothing in this section may be used to create a cause of action against an official or employee under this article. SECTION 3. DEFINITIONS Appears Before. A person appears before the Town Council, board or commission when such person publicly states his name and address, signs a sheet provided for that purpose, and addresses the Council, board or commission. Town Council 74 of 145 Meeting Date: June 7, 2010 DRAFT DRAFT 03-18-10 Rev 3 WCR Page 4 of 16 Appointee. Persons appointed or confirmed by the Mayor or Town Council; provided however for the purposes of this definition, the term “appointee” does not include Municipal Judges. Business Entity. Any corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self-employed individual, holding company, joint stock company, receivership, trust, or any legal entity organized for profit. Business Dealings. Any activity involving the exchange of economic benefits. Candidate. Every person who declares for or files for any office of the Town to be filled by election. Compensation. Any economic benefit received in return for labor, services, property, or investment. Economic Benefit. Any money, real or personal property, purchase, sale, lease, contract, option, credit, loan, discount, service, or other tangible or intangible thing of value, whether similar or dissimilar to those enumerated. Employee. Any person employed by the Town whether under civil service regulations or not, including those individuals on a part-time basis, but such term shall not be extended to apply to any independent contractor. Family Member. The spouse, parent or child, and the parents of a spouse of a Town official, appointee, or Town employee. Gift. A favor, hospitality, or economic benefit other than compensation but which does not include campaign contributions reported as required by State law, gifts received from a relative if given on account of kinship, or any value received by will, intestate succession, or as a distribution from an inter vivo or testamentary trust established by a spouse or ancestor. Identification. For a natural person, the person’s name, street address, city and state; for any entity other than a natural person, the name, address, city and state of the entity’s principal location or place of business, the type or nature of the entity, the date on which it came into existence, the state of incorporation, if any, and the names of the partners or trustees, if any. Income. Economic benefit received. Intentionally. A person acts intentionally, or with intent, with respect to the nature of his conduct or to a result of his conduct when it is his conscious objective or desire to engage in the conduct or cause the result. Knowingly. A person acts knowingly, or with knowledge, with respect to the nature of his conduct or to circumstances surrounding his conduct when he is aware of the nature of his conduct or that the circumstances exist. A person acts knowingly, or with knowledge, with respect to a result of his conduct when he is aware that his conduct is reasonably certain to cause the result. Town Council 75 of 145 Meeting Date: June 7, 2010 DRAFT DRAFT 03-18-10 Rev 3 WCR Page 5 of 16 Pecuniary Gain. Any use, benefit or thing of value that can be valued in money. Source of Income. Any business entity, employment, investment, or activity which earned or produced income, including interest, dividends, royalties or rents, which has been paid to or for the credit of a Town official, candidate or family member or which would be taxable to said Town official, candidate or family member under the United States Internal Revenue Code, as amended, even though not actually paid or credited. Substantial Interest. A person has a substantial interest in a business entity if he and/or a family member (a) owns ten percent (10%) or more of the voting stock or shares of the business entity; (b) owns ten percent (10%) or more or $15,000 or more of the fair market value of the business entity; or (c) funds received from the business entity exceed ten percent (10%) or more of the person’s gross income for the previous year. A person has a substantial interest in real property if he, his parent or child, or if married his spouse or his spouse’s parent, controls or has an interest in the property and the interest has a market value of $2,500.00 or more. Town Official. The Mayor, every member of the Town Council, candidates, the Town Manager, the Assistant Town Manager, the Town Attorney, the Town Secretary, Judges of the Municipal Court, the Police Chief, the Fire Chief, the Finance Director, the Information Services Director, the Parks and Recreation Director, the Human Resources Director, the Streets Superintendent, the Planning and Zoning Coordinator and persons acting in the capacity of the aforementioned Town officials, appointees, or employees. SECTION 4. STANDARDS OF CONDUCT (1) Gifts No Town official, appointee, or employee shall intentionally or knowingly accept or solicit any gift, benefit, favor, service or thing of value, such that it might reasonably tend to influence the judgment or discretion of the officer or employee; or that the officer or employee knows or should know is being offered with the reasonable intent to influence the officer's or employee's judgment or discretion; or given in consideration of the favorable exercise of such employee or official’s judgment or discretion in the past. (2) General Provisions (a) No Town official, appointee, or employee shall intentionally or knowingly disclose any confidential information gained by reason of said official or employee’s position concerning the property, operations, policies or affairs of the Town, or use such confidential information for the pecuniary gain of said official, employee, or others. (b) No Town official, appointee, or employee shall use, request, or permit the use of Town facilities, personnel, equipment, or supplies for private purposes (including political purposes), except: Town Council 76 of 145 Meeting Date: June 7, 2010 DRAFT DRAFT 03-18-10 Rev 3 WCR Page 6 of 16 (1) pursuant to duly adopted Town policies; or (2) to the extent and according to the terms that those resources are generally available to the public. (c) Except as otherwise specifically authorized by ordinance, no Town official or appointee shall intentionally or knowingly appear before the body of which the official is a member while representing himself, or any other person, group, association, interest, or business entity. (d) No Town official, appointee or employee shall intentionally or knowingly represent directly or indirectly any private person, group, or interest other than himself or a family member before any department, agency, commission or board of the Town for economic benefit or pecuniary gain. (e) No Town official, appointee, or employee shall vote on or participate in any decision making process if the official or employee has a direct financial interest in the outcome of the matter under consideration. No Town official, appointee, or employee shall vote on or participate in any decision making process on any matter concerning real property or a business entity if the Town official, appointee, or employee has a substantial interest in the business entity or real property. (f) No Town official, appointee or employee shall intentionally or knowingly accept other employment or engage in outside activities incompatible with the full and proper discharge of official duties and responsibilities, or which would tend to impair independent judgment in the performance of said official duties. (g) None of the foregoing shall be construed to prohibit any Town official, appointee, or employee from representing his interest in his owner occupied homestead before the Council, board, commission or any department except for the body of which the official is a member, or the department by which the employee is employed. (h) In any action or proceeding in the municipal court of the Town which was instituted by a Town official or employee in the course of official duties, no Town official shall knowingly represent anyone other than himself or a family member. If a Council member elects to have a trial in municipal court, the Town Council, without the participation of the affected council member, shall appoint a special judge to preside over the trial. (i) No Town official shall act as a surety for any person or business entity that has any contract with the Town, or on any bond required by the Town for any Town official or employee. SECTION 5. DISCLOSURE OF INTEREST (1) If any Town official or appointee has a substantial interest in any real property or business entity involved in any decision pending before the body of which the Town Town Council 77 of 145 Meeting Date: June 7, 2010 DRAFT DRAFT 03-18-10 Rev 3 WCR Page 7 of 16 official or appointee is a member, the Town official or appointee shall not vote or otherwise participate in the consideration of the matter. (2) If any employee has a substantial interest in any real property or business entity involved in any decision pending before the department by which the employee is employed, the employee shall not participate in the consideration of the matter. (3) In the case of a Town official or appointee, the Town official or appointee shall publicly disclose, verbally or in writing, the nature and extent of such interest to the body on which the Town official or appointee serves prior to any discussion or determination of the matter to be considered or immediately upon discovery of the conflict of interest. The statement of disclosure shall be included in the official minutes of the body. (4) In the case of an employee, the employee shall disclose such information in writing to the employee’s supervisor and to the Town Secretary prior to any consideration of the matter. The Town Secretary shall keep a file of employee statements of disclosure and said file shall be a public record of the Town. SECTION 6. FINANCIAL DISCLOSURE (1) No later than April 30th of each year, each Town official shall file a sworn financial disclosure statement with the Town Secretary reflecting the financial situation of the Town official as of December 31st of the previous year. Notwithstanding any other term or provision of this Article, as used in this section: (a) the term “family member” shall include only the Town official, and the spouse and the minor children of the Town official; (b) the term “substantial interest” shall include only the interests of the Town official, the spouse and minor children of the Town official; and (c) the annual financial disclosure statement shall not include the assets or property of any person other than those of the Town official, the spouse and minor children of the Town official. (2) A newly employed or appointed Town official shall file a sworn financial disclosure statement with the Town Secretary within thirty (30) days from the date the position with the Town is assumed. Said statement shall reflect the financial situation as of date of employment or appointment and for the previous twelve (12) months, provided, however, such Town official shall not be required to include in such statement the requirements of paragraphs (4) (f), (g), and (h) of this section. (3) Each candidate shall file a sworn financial disclosure statement with the Town Secretary within fifteen (15) days of filing for office, reflecting the financial situation of the candidate as of December 31st of the year previous to the election date. (4) Each person required to file a financial disclosure statement shall do so on a form supplied by the Town which shall include the following information: Town Council 78 of 145 Meeting Date: June 7, 2010 DRAFT DRAFT 03-18-10 Rev 3 WCR Page 8 of 16 (a) The person’s name, residence address, business address, telephone number, name of all family members and all names under which the person or family member does business. (b) Identification by street address, and legal description of all real property located within the Town or its extraterritorial jurisdiction in which the person has a substantial interest. (c) Identification of each business entity owning property or doing business within the Town or its extraterritorial jurisdiction in which the person has a substantial interest. (d) Identification of each person or business entity to whom the person or family member owed a debt of ten thousand dollars ($10,000) or more during the reporting period, but not including debts owed to persons related within the second degree of consanguinity or affinity, or revolving charge accounts, and excluding loans to a political campaign which were reported as required by law; if repaid during the reporting period the date of repayment shall be stated. (e) Identification of each source of income amounting to ten (10) percent or more of the person’s or family member’s gross annual income as defined by the United States Internal Revenue Code. (f) Identification of the donor of each gift of more than one hundred fifty dollars ($150.00) in value received by the person or family member, including the value of the gift, where such donor has appeared before and requested action of the Town Council during the reporting period. (g) Identification of the donor of two or more gifts of an accumulated value of six hundred dollars ($600.00) or more received by the person or family member, where such donor has appeared before and requested action of the Town Council during the reporting period. (h) Identification of all individuals or business entities that: (i) he or a business entity in which he has a substantial interest has had business dealings involving one or more transactions of five hundred dollars ($500.00) or more each, for a total of twenty-five hundred dollars ($2,500) or more, and (ii) have appeared before and requested action of the Town Council during the reporting period. (5) The Town Secretary shall maintain all financial disclosure statements required to be filed herein as public records and retain them for a period of three (3) years after which statements shall be returned to the person filing them or be destroyed. Town Council 79 of 145 Meeting Date: June 7, 2010 DRAFT DRAFT 03-18-10 Rev 3 WCR Page 9 of 16 (6) A Town official, appointee, or employee shall immediately and publicly identify either verbally on the record or in writing, all individuals or business entities that: (a) he or a business entity in which he has a substantial interest or has had business dealings involving one or more transactions of five hundred dollars ($500.00) or more each, for a total of twenty-five hundred dollars ($2,500) or more within the immediately preceding twelve (12) month period, and (b) appeared before and requested some action of the Town Council, board or commission of which such reporting person is an advisor or member. (7) Within thirty (30) days of being appointed to the Planning and Zoning Commission and on each anniversary of that date, each member of such Commission shall file with the Town Secretary a sworn statement identifying by street address and legal description all real property located within the Town or its extraterritorial jurisdiction in which the member has a substantial interest. SECTION 7. ETHICS REVIEW COMMISSION (1) An Ethics Review Commission (Commission) is hereby established to be composed of seven (7) members, all of whom shall reside in the Town. (2) Each Commission member shall be appointed by the Town Council and shall occupy a position on the Commission, such positions being numbered 1 through 7. (3) The Commission members shall be appointed to three year staggered terms. Positions 1 and 2 shall serve an implementation term which shall expire on September 30 of 2011. Positions 3 and 4 shall serve an implementation term which shall expire on September 30 of 2012. Positions 5, 6, and 7 shall serve an implementation term which shall expire on September 30 of 2013. After each such implementation term expires, the term of office for each position shall be three years. No member shall serve for more than two (2) consecutive full terms. Implementation terms shall not be counted as full terms. (4) All vacancies shall be filled for the unexpired term. A member shall hold office until his successor has been appointed by the Town Council and shall continue to hold office after his successor has been appointed by the Town Council for the limited purpose of the disposition of all complaints filed during that member's term. No member may participate in a decision regarding a complaint initiated prior to the expiration of the previous member’s term, but new members shall assume the duties of office with respect to all complainants initiated after the previous member's term. (5) The Commission shall elect a chairman and a vice-chairman to one (1) year terms. The vice-chairman shall act as chairman in the absence of the chairman. (6) Four (4) or more members of the Commission shall constitute a quorum, but no action of the Commission shall be of any force or effect unless it is adopted by the favorable vote of four (4) or more members. Town Council 80 of 145 Meeting Date: June 7, 2010 DRAFT DRAFT 03-18-10 Rev 3 WCR Page 10 of 16 (7) The Commission shall meet at least once a year to review this article and may make recommendations to the Town Council for amendments hereto. (8) The Commission shall render advisory opinions on potential conflicts of interest or violation of this article at the request of a Town official, member of a Town board or commission, or employee subject to the terms of this article. Such advisory opinion shall be rendered within a reasonable time, but in no event later than thirty (30) days after a request is received by the Commission. (9) It shall be a defense to an alleged violation of this article that the person accused previously requested an advisory opinion of the Commission and acted on such opinion in good faith, unless material facts were omitted or misstated by the person requesting the opinion. Such advisory opinion shall also be binding on the Commission in any subsequent charges concerning the person requesting the opinion. (10) Independent legal counsel shall be utilized to advise the Commission and participate in hearings. The Town Council shall annually designate and retain independent counsel who shall be a duly licensed attorney in the State of Texas. (11) The Commission shall have jurisdiction to review and make findings concerning any alleged violation of this article by any person subject to those provisions, if a complaint is filed within one year after the date of the alleged violation. The Commission may not consider any alleged violation that occurred before July 1, 2010 or more than one year before the date of the filing of a complaint. SECTION 8. DISPOSITION OF ALLEGED VIOLATIONS (1) A sworn complaint based on personal knowledge alleging a violation (s) of this article shall specify the provision (s) of this article alleged to have been violated, and shall name the Town official, candidate, appointee, or employee being charged. THE STATE OF TEXAS: COUNTY OF DENTON: TO: THE ETHICS REVIEW COMMISSION OF THE TOWN OF TROPHY CLUB, TEXAS: COMES NOW (complainant), and makes this complaint, UPON HIS/HER PERSONAL KNOWLEDGE AND UNDER OATH against (name of person complained against), and would show the Commission that: On or about the _______ day of ________________, ___,(insert date of the action, or omission, complained of) _____________________________________________, (name of person complained against) a/an (insert appropriate designation; Town official, candidate, appointee, employee, board or commission member) of the Town of Trophy Club, Texas, violated the following provision(s) of Code of Ethics and Conduct Ordinance, Town of Trophy Club, Texas, to wit: (Specify by Section, Subsection and Paragraph number the provision(s) alleged violated.) by committing the following act, or omission, to wit: ______________________________________________________________________ ______________________________________________________________________ Town Council 81 of 145 Meeting Date: June 7, 2010 DRAFT DRAFT 03-18-10 Rev 3 WCR Page 11 of 16 ______________________________________________________________________ ______________________________________________________________________ (Describe above, the action, or omission, alleged to violate each Code provision cited. You may attach additional pages if more space is required.) (2) Upon the aforesaid sworn complaint of any person being filed with the Town Secretary’s office, or on its own initiative, the Commission shall consider possible violations of this article by Town officials, candidates, appointees and employees. A complaint shall not be deemed to be filed on the initiative of the Commission save and except the complaint be signed and sworn to by two (2) members of the Commission, one of which is the Chairman of the Commission, after consultation with the legal counsel of the Commission. A complaint filed by an individual member of the Commission shall be deemed to have been filed in the Commission member’s capacity as a private citizen and, in such event, the member of the Commission filing the complaint shall not thereafter participate in a Commission meeting at which such complaint is considered save and except that the Commissioner filing the complaint may participate as a complainant at such meeting. (3) A complaint alleging a violation of this article must be filed with the Town Secretary within one (1) year from the commission of the action alleged as a violation, and not afterward. (4) The Town Secretary shall, in writing, advise the person filing the complaint that falsely accusing someone of a violation of this article may result in criminal prosecution of anyone who knowingly makes a false accusation. The Town Secretary shall, in writing, advise the person charged in the complaint that falsely responding to a complaint may result in criminal prosecution of anyone who knowingly makes a false response. (5) Not later than three (3) working days after the Town Secretary receives a sworn complaint, the Town Secretary shall acknowledge the receipt of the complaint to the complainant, and provide a copy of the complaint to the Town Attorney, the independent counsel, the Commission and the person complained against. Not later than ten (10) working days after receipt of a complaint, the Commission shall notify in writing the person who made the complaint and the person complained against of a date for a preliminary hearing. If the Commission does not hold a preliminary hearing within twenty (20) working days of receipt of the complaint, it shall notify the person who made the complaint of the reasons for the delay and shall subsequently give him the appropriate notification. (6) The Commission may consider possible violations of this article on its own initiative. Within seven (7) days of the Commission’s decision to consider a possible violation of this article, the Commission shall draft a written complaint specifying the provision(s) of this article alleged to have been violated and shall file a copy with the Town Secretary, and provide a copy to the Town Attorney, the independent counsel, and the person complained against. Not later than fifteen (15) days after the drafting of the complaint, the Commission shall notify in writing the person complained against of the date for the preliminary hearing. Town Council 82 of 145 Meeting Date: June 7, 2010 DRAFT DRAFT 03-18-10 Rev 3 WCR Page 12 of 16 (7) 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; provided that a member may consult with the attorney or the staff liaison for the Commission as to process, procedure and legal issues. (8) No Town official or employee shall reveal information relating to the filing or processing of a complaint, except as required for the performance of official duties or as required by law. Ex parte communications by or to members of the Commission are prohibited. All papers and communications relating to a complaint must be treated as confidential unless required to be made public under the Public Information Act of the Texas Government Code or other applicable law. (9) As soon as reasonably possible, but in no event more than sixty (60) days after receiving a complaint, the Commission shall conduct a preliminary hearing. (a) The issue at a preliminary hearing shall be the existence of reasonable grounds to believe that a violation of this article has occurred. The person filing a complaint, or the independent counsel in cases considered upon the Commission’s own initiative, shall state the alleged violation and shall describe in narrative form the testimony and other evidence which would be presented to prove the alleged violation as stated in the written complaint. Statements at a preliminary hearing shall be under oath, but there shall be no cross examination or requests for persons or evidence issued for the hearing. Members of the Commission may question the complainant, the independent counsel for the Commission, or the Town official, appointee or employee named in the complaint. (b) The Town official, appointee or employee named in the complaint shall have the opportunity to respond, but is not required to attend or make any statement. The Town official, appointee or employee may describe in narrative form the testimony and other evidence which would be presented to disprove the alleged violation. If the Town official, appointee or employee agrees that a violation has occurred, he may so state and the Commission may consider the appropriate sanction. (c) The complainant and the Town official, appointee or employee named in the complaint shall have the right of representation by counsel. (d) At the conclusion of the preliminary hearing, the Commission shall decide whether a final hearing should be held; provided the Commission may proceed to determine the appropriate sanction if the charged Town official, appointee, or employee does not object and admits the charged violation, and the Commission determines that there are no fact issues to be resolved. If the Commission determines that there are reasonable grounds to believe that a violation of this article has occurred, it shall schedule a final hearing. If the Commission does not determine that there are reasonable grounds to believe that a violation of this article has occurred, the complaint shall be automatically dismissed. A decision to conduct a final hearing is not a finding that a violation has occurred. Town Council 83 of 145 Meeting Date: June 7, 2010 DRAFT DRAFT 03-18-10 Rev 3 WCR Page 13 of 16 (e) The Commission, at any time during the preliminary hearing, may also dismiss a complaint if the complaint does not allege conduct which would be a violation of this article. Before a complaint is dismissed for failure to allege a violation, the complainant shall be permitted one opportunity, within ten (10) days of such preliminary hearing, to revise and resubmit the complaint. (f) The complainant, the independent counsel, and the Town official, appointee or employee named in the complaint may ask the Commission at a preliminary hearing to request certain persons and evidence for a final hearing, if one is scheduled. (10) Final Hearing (a) The final hearing shall be held as expeditiously as possible following the determination by the Commission that there are reasonable grounds to believe that a violation of this article has occurred, but in no event shall it be held more than thirty (30) days after said determination. The Commission may grant two (2) postponements, not to exceed fifteen (15) days each, upon the request of the Town official, appointee or employee named in the complaint. (b) The issue at a final hearing shall be whether a violation of this article has occurred. The Commission shall make its determination based on clear and convincing evidence in the record. All witnesses shall make their statements under oath. If the Commission determines that a violation has occurred, it shall state its findings in writing, shall identify the particular provision(s) of this article which have been violated, and within five (5) working days shall deliver a copy of the findings to the complainant, if any, the person named in the complaint and the Town Secretary. (c) If a complaint proceeds to a final hearing, the Commission may request and subpoena witnesses to attend and testify, administer oaths and affirmations, take evidence and request the production of books, papers, records, or other evidence needed for the performance of the Commission's duties or exercise of its powers, including its duties and powers of investigation. It shall be a violation of this article for a person to fail to appear and testify before the Commission in response to a request made in writing ten days or more prior to the scheduled time and date of the notice or request to appear. (11) Sanctions (a) If the Commission determines that a violation of this article has occurred, it shall proceed directly to determination of the appropriate sanction(s). A violation of this article shall not be subject to criminal penalties under the Town Code, except for the two instances specifically provided for in this article Section 8 (10)(c) and Section 11. The Commission may receive additional testimony or statements before considering sanctions, but is not required to do so. If the Town official, appointee or Town employee named in the complaint acted in reliance upon a written opinion of the Town Attorney, the Commission shall consider that fact. Comment [Council1]: Corrected from (8) to (10) Aligns with section 12 Town Council 84 of 145 Meeting Date: June 7, 2010 DRAFT DRAFT 03-18-10 Rev 3 WCR Page 14 of 16 (b) If the Commission determines that a violation of this article has occurred, it shall take the following actions: (1) If the complaint involved a current employee under the jurisdiction of the Town Manager, the matter will be referred to the Town Manager (2) If the complaint involved the Town Manager, Town Attorney, Town Secretary, or a Judge of the Municipal Court, the matter will be referred to the Town Council. (3) If the complaint involved a Town Council member, a board or commission member, a former Town official, or a former Town employee, the matter will be referred to the Town Council. (c) When referring a matter under Subsection (b), the Commission may impose or recommend the following sanctions: (1) Letter of notification. A letter of notification may be recommended when the commission finds that a violation of this article was clearly unintentional or when the action or conduct found to have been a violation of this article was performed by the official or employee in reliance on a public written opinion of the Town Attorney. A letter of notification must advise the official or employee to whom the letter is directed of any steps to be taken to avoid future violations. (2) Letter of admonition. A letter of admonition may be recommended when the commission finds that the violation of this article was minor and/or may have been unintentional, but where the circumstances call for a more substantial response than a letter of notification. (3) Reprimand. A reprimand may be recommended when the commission finds that a violation of this article was committed intentionally or through disregard of this article. A reprimand directed to an employee shall be included in said employee’s personnel file. The Town Manager may also elect to discipline the employee in accordance with Town personnel rules and procedures. A letter of reprimand directed to an elected Town official shall also be transmitted to the Town Secretary and published in the official newspaper of the Town. (4) Removal or suspension from employment. A recommendation of removal from employment or a recommendation of suspension from employment, as well as a recommendation for length of suspension, shall be the appropriate sanction when the Commission finds that a serious or repeated violation(s) of this article has been committed intentionally or through culpable disregard of this article by Town employees. The final authority to carry out such recommendations to suspend from employment and the length of suspension shall be with the Town Manager. The Town Manager may also elect to discipline the employee in accordance with Town personnel rules and procedures. Town Council 85 of 145 Meeting Date: June 7, 2010 DRAFT DRAFT 03-18-10 Rev 3 WCR Page 15 of 16 (5) Censure, recall or removal from office. A letter of censure, a recommendation of recall, or a recommendation to institute proceedings for removal from office, shall be the appropriate sanction when the Commission finds that a serious or repeated violation(s) of this article has been committed intentionally or through culpable disregard of this article by an elected Town official. A letter of censure, a recommendation of recall, or a recommendation to institute proceedings for removal from office, directed to an elected Town official shall also be transmitted to the Town Secretary and published in the official newspaper of the Town. The Town Council and citizens of the Town may take actions in accordance with the Town Charter. Any proceedings for removal from office shall be in compliance with provisions of the Town Charter and State law. (12) Dismissal. If the complaint is dismissed because the evidence failed to establish a violation of this article, the Commission shall not entertain any other similar complaint based on substantially the same evidence. SECTION 9. PETITION FOR DECLARATORY RULING. Any Town official or employee against whom public allegations of ethics violations have been made in the media or elsewhere has the right to file a sworn statement with the Town Secretary affirming their innocence, and to request the Commission to review the allegations and make known its findings. SECTION 10. CULPABLE MENTAL STATE. To commit a violation under any provision of this article, a person must have acted or failed to act knowingly or with knowledge. SECTION 11. FALSE COMPLAINTS In the event a complaint is received by the Commission that is subsequently found to be baseless, and the Commission deems that the complaint was filed with the intent to: (a) harass the person named in the complaint; or (b) damage any person's reputation; or (c) benefit the person filing the complaint, or a third party, either personally, professionally or politically; or (d) damage a related third party; the Commission may recommend the Town Attorney cause a complaint to be filed against such person in the municipal court or, as appropriate, a higher court of this state; the Town Council or Town Manager, as appropriate, take disciplinary action(s) against the individual who filed the complaint, including but not limited to disciplinary action if such complainant is a Town employee or appointed officer or official of the Town; and/or the filing of a civil action to recover the costs, fees, charges and expenses incurred by Town Council 86 of 145 Meeting Date: June 7, 2010 DRAFT DRAFT 03-18-10 Rev 3 WCR Page 16 of 16 the Town and person named in the complaint with respect to such complaint. The Commission may also recommend other action(s) that should be taken. SECTION 12. PENALTIES (1) Any person who shall violate Section 8 (10) (c) or Section 11 of this article shall be deemed guilty of an offense and shall be liable for a fine not to exceed the sum of $500.00. Each day the violation exists shall constitute a separate offense. Such penalty shall be in addition to all the other remedies provided herein. (2) Any person who knowingly files a false sworn statement under this article is subject to criminal prosecution for perjury under the laws of the State of Texas. SECTION 13. CODE OF ORDINANCES. The Code of Ordinances of the Town is hereby amended to include the terms and provisions of this Ordinance. All ordinances, parts of ordinances and the Code of Ordinances in conflict herewith are hereby amended to the extent of such conflict only. If a provision of this Ordinance and any other ordinance shall conflict, the terms of this Ordinance shall govern and control and the other ordinance or Code provision shall be read and construed in a manner consistent with the intent and provisions of this Ordinance. SECTION 14. SEVERABILITY. If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or its application to any person or circumstance is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance; and the Town Council hereby declares it would have passed such remaining portions of the Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 15. EFFECTIVE DATE. This Ordinance shall take effect immediately from and after its passage and publication in accordance with the provisions of the Texas Local Government Code, and it is accordingly so ordained. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this XXX day of XXXXXX, 2010. Mayor, Connie White Town of Trophy Club, Texas [SEAL] ATTEST: Town Council 87 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Ethics Commission DRAFT 04-06-10 Rev 4 WCR Page 1 of 16 TOWN OF TROPHY CLUB, TEXAS ORDINANCE 2010 - AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS, PROVIDING AN ETHICS POLICY; DEFINING CERTAIN TERMS; PROVIDING FOR STANDARDS OF CONDUCT; PROVIDING FOR CERTAIN FINANCIAL DISCLOSURES; ESTABLISHING AN ETHICS COMMISSION; PROVIDING FOR DISPOSITION OF ALLEGED VIOLATIONS; AMENDING THE CODE OF ORDINANCES; PROVIDING AN EFFECTIVE DATE AND SAVINGS CLAUSE; AND PROVIDING FOR RELATED MATTERS. WHEREAS, the Town of Trophy Club, Texas is a home rule city acting under its Charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS, at a Special Election held in accordance with Ordinance 2009-07, within the Town of Trophy Club, Texas, on the 9th day of May, 2009, more than a majority of the duly qualified resident electors of the Town of Trophy Club, voting in the Special Election, voted in favor of the approval and adoption of various amendments to the Home Rule Charter for the Town of Trophy Club, Texas; and WHEREAS, on the 18th day of May, 2009, the Town Council of the Town of Trophy Club adopted Ordinance 2009-12 canvassing the returns of the Special Election and declaring that the Charter had been so amended in accordance with the official results of the Special Election and the Order of the Special Election, and thereby approved and adopted amendments to the Home-Rule Charter of the Town of Trophy Club; and WHEREAS, a Code of Ethics and Conduct, and an Ethics Commission amendment were included in Ordinance 2009-07 and Ordinance 2009-12; and WHEREAS, the Code of Ethics and Conduct, and Ethics Commission amendment requires an ethics and conduct ordinance be adopted by the Town Council; and WHEREAS, the Code of Ethics and Conduct, and Ethics Commission amendment requires an ethics and conduct ordinance be applicable to elected officers, appointed board, commission, and committee members, and employees of the Town; and WHEREAS, the Code of Ethics and Conduct, and Ethics Commission amendment requires establishment of an independent Ethics Commission; and WHEREAS, statutory provisions governing the ethical conduct of public officials and employees are found in various codes including the Texas Local Government Code, Texas Government Code and the Texas Penal Code; and WHEREAS, the conduct of the public business should be accomplished by Town Officials, appointees and employees that have no personal financial interest in such business clearly separate from that of the general public; and WHEREAS, it is important that Town Officials, appointees and employees be provided with a process and procedure to give notice and to then refrain from participation in any Comment [Council1]: This revision adds “may” in section 11 Town Council 88 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Ethics Commission DRAFT 04-06-10 Rev 4 WCR Page 2 of 16 specific business of the Town in which such Official has a personal financial interest different from that of the general public; and WHEREAS, a reasonable ethics ordinance with disclosure requirements will provide a basis for continuing public confidence in the conduct of the business and affairs of the Town; NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, THAT: CODE OF ETHICS AND CONDUCT SECTION 1. POLICY (1) It is the policy of the Town that the proper operation of democratic government requires that Town officials, appointees and employees be independent, impartial and responsible to the people; that governmental decisions and policy be made in proper channels of the governmental structure; that public office not be used for personal gain; and that the public have confidence in the integrity of its government in recognition of these goals, a code of ethics and conduct for all Town officials, appointees and employees is adopted. (2) This code of ethics has four purposes: (a) to encourage high ethical standards in official conduct by Town officials, appointees and employees; (b) to establish guidelines for ethical standards of conduct for all such officials, appointees and employees by setting forth those acts or actions that are incompatible with the best interests of the Town; (c) to require disclosure by such officials, candidates, appointees and employees of private financial or other interests in matters affecting the Town; and (d) to serve as a basis for disciplining those who fail to abide by its terms. (3) The provisions of this article shall not apply to political contributions, loans, expenditures, reports or regulation of political campaigns, or the conduct of candidates in such campaigns, except as expressly provided herein. SECTION 2. PRINCIPLES OF CONDUCT (1) The Town Council further believes that an elected or appointed Town official assumes a public trust and should recognize the importance of high ethical standards within the organization they lead or support. Essential values and ethical behaviors that an elected or appointed official should exemplify include the following: (a) Commitment beyond self. (b) Obedience and commitment beyond the law. (c) Commitment to the public good. Town Council 89 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Ethics Commission DRAFT 04-06-10 Rev 4 WCR Page 3 of 16 (d) Respect for the value and dignity of all individuals. (e) Accountability to the public. (f) Truthfulness. (g) Fairness. (h) Responsible application of resources. (2) In keeping with the values set forth in subsection (1) of this section and to assist in the fulfillment of responsibilities to the individuals and communities served, each elected or appointed official should: (a) Conduct himself and operate with integrity and in a manner that merits the trust and support of the public. (b) Uphold all applicable laws and regulations, going beyond the letter of the law to protect and/or enhance the Town's ability to accomplish its mission. (c) Treat others with respect, doing for and to others what the official would have done for and to himself in similar circumstances. (d) Be a responsible steward of the taxpayer resources. (e) Take no actions that could benefit the official personally at the unwarranted expense of the Town, avoiding even the appearance of a conflict of interest, and exercise prudence and good judgment at all times. (f) Carefully consider the public perception of personal and professional actions and the effect such actions could have, positively or negatively, on the Town's reputation both in the community and elsewhere. (g) Strive for personal and professional growth to improve effectiveness as an elected or appointed official. (3) Interpretation. Section 2 is a statement of purpose and principles only. Nothing in this section may be used to create a cause of action against an official or employee under this article. SECTION 3. DEFINITIONS Appears Before. A person appears before the Town Council, board or commission when such person publicly states his name and address, signs a sheet provided for that purpose, and addresses the Council, board or commission. Town Council 90 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Ethics Commission DRAFT 04-06-10 Rev 4 WCR Page 4 of 16 Appointee. Persons appointed or confirmed by the Mayor or Town Council; provided however for the purposes of this definition, the term “appointee” does not include Municipal Judges. Business Entity. Any corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self-employed individual, holding company, joint stock company, receivership, trust, or any legal entity organized for profit. Business Dealings. Any activity involving the exchange of economic benefits. Candidate. Every person who declares for or files for any office of the Town to be filled by election. Compensation. Any economic benefit received in return for labor, services, property, or investment. Economic Benefit. Any money, real or personal property, purchase, sale, lease, contract, option, credit, loan, discount, service, or other tangible or intangible thing of value, whether similar or dissimilar to those enumerated. Employee. Any person employed by the Town whether under civil service regulations or not, including those individuals on a part-time basis, but such term shall not be extended to apply to any independent contractor. Family Member. The spouse, parent or child, and the parents of a spouse of a Town official, appointee, or Town employee. Gift. A favor, hospitality, or economic benefit other than compensation but which does not include campaign contributions reported as required by State law, gifts received from a relative if given on account of kinship, or any value received by will, intestate succession, or as a distribution from an inter vivo or testamentary trust established by a spouse or ancestor. Identification. For a natural person, the person’s name, street address, city and state; for any entity other than a natural person, the name, address, city and state of the entity’s principal location or place of business, the type or nature of the entity, the date on which it came into existence, the state of incorporation, if any, and the names of the partners or trustees, if any. Income. Economic benefit received. Intentionally. A person acts intentionally, or with intent, with respect to the nature of his conduct or to a result of his conduct when it is his conscious objective or desire to engage in the conduct or cause the result. Knowingly. A person acts knowingly, or with knowledge, with respect to the nature of his conduct or to circumstances surrounding his conduct when he is aware of the nature of his conduct or that the circumstances exist. A person acts knowingly, or with knowledge, with respect to a result of his conduct when he is aware that his conduct is reasonably certain to cause the result. Town Council 91 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Ethics Commission DRAFT 04-06-10 Rev 4 WCR Page 5 of 16 Pecuniary Gain. Any use, benefit or thing of value that can be valued in money. Source of Income. Any business entity, employment, investment, or activity which earned or produced income, including interest, dividends, royalties or rents, which has been paid to or for the credit of a Town official, candidate or family member or which would be taxable to said Town official, candidate or family member under the United States Internal Revenue Code, as amended, even though not actually paid or credited. Substantial Interest. A person has a substantial interest in a business entity if he and/or a family member (a) owns ten percent (10%) or more of the voting stock or shares of the business entity; (b) owns ten percent (10%) or more or $15,000 or more of the fair market value of the business entity; or (c) funds received from the business entity exceed ten percent (10%) or more of the person’s gross income for the previous year. A person has a substantial interest in real property if he, his parent or child, or if married his spouse or his spouse’s parent, controls or has an interest in the property and the interest has a market value of $2,500.00 or more. Town Official. The Mayor, every member of the Town Council, candidates, the Town Manager, the Assistant Town Manager, the Town Attorney, the Town Secretary, Judges of the Municipal Court, the Police Chief, the Fire Chief, the Finance Director, the Information Services Director, the Parks and Recreation Director, the Human Resources Director, the Streets Superintendent, the Planning and Zoning Coordinator and persons acting in the capacity of the aforementioned Town officials, appointees, or employees. SECTION 4. STANDARDS OF CONDUCT (1) Gifts No Town official, appointee, or employee shall intentionally or knowingly accept or solicit any gift, benefit, favor, service or thing of value, such that it might reasonably tend to influence the judgment or discretion of the officer or employee; or that the officer or employee knows or should know is being offered with the reasonable intent to influence the officer's or employee's judgment or discretion; or given in consideration of the favorable exercise of such employee or official’s judgment or discretion in the past. (2) General Provisions (a) No Town official, appointee, or employee shall intentionally or knowingly disclose any confidential information gained by reason of said official or employee’s position concerning the property, operations, policies or affairs of the Town, or use such confidential information for the pecuniary gain of said official, employee, or others. (b) No Town official, appointee, or employee shall use, request, or permit the use of Town facilities, personnel, equipment, or supplies for private purposes (including political purposes), except: Town Council 92 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Ethics Commission DRAFT 04-06-10 Rev 4 WCR Page 6 of 16 (1) pursuant to duly adopted Town policies; or (2) to the extent and according to the terms that those resources are generally available to the public. (c) Except as otherwise specifically authorized by ordinance, no Town official or appointee shall intentionally or knowingly appear before the body of which the official is a member while representing himself, or any other person, group, association, interest, or business entity. (d) No Town official, appointee or employee shall intentionally or knowingly represent directly or indirectly any private person, group, or interest other than himself or a family member before any department, agency, commission or board of the Town for economic benefit or pecuniary gain. (e) No Town official, appointee, or employee shall vote on or participate in any decision making process if the official or employee has a direct financial interest in the outcome of the matter under consideration. No Town official, appointee, or employee shall vote on or participate in any decision making process on any matter concerning real property or a business entity if the Town official, appointee, or employee has a substantial interest in the business entity or real property. (f) No Town official, appointee or employee shall intentionally or knowingly accept other employment or engage in outside activities incompatible with the full and proper discharge of official duties and responsibilities, or which would tend to impair independent judgment in the performance of said official duties. (g) None of the foregoing shall be construed to prohibit any Town official, appointee, or employee from representing his interest in his owner occupied homestead before the Council, board, commission or any department except for the body of which the official is a member, or the department by which the employee is employed. (h) In any action or proceeding in the municipal court of the Town which was instituted by a Town official or employee in the course of official duties, no Town official shall knowingly represent anyone other than himself or a family member. If a Council member elects to have a trial in municipal court, the Town Council, without the participation of the affected council member, shall appoint a special judge to preside over the trial. (i) No Town official shall act as a surety for any person or business entity that has any contract with the Town, or on any bond required by the Town for any Town official or employee. SECTION 5. DISCLOSURE OF INTEREST (1) If any Town official or appointee has a substantial interest in any real property or business entity involved in any decision pending before the body of which the Town Town Council 93 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Ethics Commission DRAFT 04-06-10 Rev 4 WCR Page 7 of 16 official or appointee is a member, the Town official or appointee shall not vote or otherwise participate in the consideration of the matter. (2) If any employee has a substantial interest in any real property or business entity involved in any decision pending before the department by which the employee is employed, the employee shall not participate in the consideration of the matter. (3) In the case of a Town official or appointee, the Town official or appointee shall publicly disclose, verbally or in writing, the nature and extent of such interest to the body on which the Town official or appointee serves prior to any discussion or determination of the matter to be considered or immediately upon discovery of the conflict of interest. The statement of disclosure shall be included in the official minutes of the body. (4) In the case of an employee, the employee shall disclose such information in writing to the employee’s supervisor and to the Town Secretary prior to any consideration of the matter. The Town Secretary shall keep a file of employee statements of disclosure and said file shall be a public record of the Town. SECTION 6. FINANCIAL DISCLOSURE (1) No later than April 30th of each year, each Town official shall file a sworn financial disclosure statement with the Town Secretary reflecting the financial situation of the Town official as of December 31st of the previous year. Notwithstanding any other term or provision of this Article, as used in this section: (a) the term “family member” shall include only the Town official, and the spouse and the minor children of the Town official; (b) the term “substantial interest” shall include only the interests of the Town official, the spouse and minor children of the Town official; and (c) the annual financial disclosure statement shall not include the assets or property of any person other than those of the Town official, the spouse and minor children of the Town official. (2) A newly employed or appointed Town official shall file a sworn financial disclosure statement with the Town Secretary within thirty (30) days from the date the position with the Town is assumed. Said statement shall reflect the financial situation as of date of employment or appointment and for the previous twelve (12) months, provided, however, such Town official shall not be required to include in such statement the requirements of paragraphs (4) (f), (g), and (h) of this section. (3) Each candidate shall file a sworn financial disclosure statement with the Town Secretary within fifteen (15) days of filing for office, reflecting the financial situation of the candidate as of December 31st of the year previous to the election date. (4) Each person required to file a financial disclosure statement shall do so on a form supplied by the Town which shall include the following information: Town Council 94 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Ethics Commission DRAFT 04-06-10 Rev 4 WCR Page 8 of 16 (a) The person’s name, residence address, business address, telephone number, name of all family members and all names under which the person or family member does business. (b) Identification by street address, and legal description of all real property located within the Town or its extraterritorial jurisdiction in which the person has a substantial interest. (c) Identification of each business entity owning property or doing business within the Town or its extraterritorial jurisdiction in which the person has a substantial interest. (d) Identification of each person or business entity to whom the person or family member owed a debt of ten thousand dollars ($10,000) or more during the reporting period, but not including debts owed to persons related within the second degree of consanguinity or affinity, or revolving charge accounts, and excluding loans to a political campaign which were reported as required by law; if repaid during the reporting period the date of repayment shall be stated. (e) Identification of each source of income amounting to ten (10) percent or more of the person’s or family member’s gross annual income as defined by the United States Internal Revenue Code. (f) Identification of the donor of each gift of more than one hundred fifty dollars ($150.00) in value received by the person or family member, including the value of the gift, where such donor has appeared before and requested action of the Town Council during the reporting period. (g) Identification of the donor of two or more gifts of an accumulated value of six hundred dollars ($600.00) or more received by the person or family member, where such donor has appeared before and requested action of the Town Council during the reporting period. (h) Identification of all individuals or business entities that: (i) he or a business entity in which he has a substantial interest has had business dealings involving one or more transactions of five hundred dollars ($500.00) or more each, for a total of twenty-five hundred dollars ($2,500) or more, and (ii) have appeared before and requested action of the Town Council during the reporting period. (5) The Town Secretary shall maintain all financial disclosure statements required to be filed herein as public records and retain them for a period of three (3) years after which statements shall be returned to the person filing them or be destroyed. Town Council 95 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Ethics Commission DRAFT 04-06-10 Rev 4 WCR Page 9 of 16 (6) A Town official, appointee, or employee shall immediately and publicly identify either verbally on the record or in writing, all individuals or business entities that: (a) he or a business entity in which he has a substantial interest or has had business dealings involving one or more transactions of five hundred dollars ($500.00) or more each, for a total of twenty-five hundred dollars ($2,500) or more within the immediately preceding twelve (12) month period, and (b) appeared before and requested some action of the Town Council, board or commission of which such reporting person is an advisor or member. (7) Within thirty (30) days of being appointed to the Planning and Zoning Commission and on each anniversary of that date, each member of such Commission shall file with the Town Secretary a sworn statement identifying by street address and legal description all real property located within the Town or its extraterritorial jurisdiction in which the member has a substantial interest. SECTION 7. ETHICS REVIEW COMMISSION (1) An Ethics Review Commission (Commission) is hereby established to be composed of seven (7) members, all of whom shall reside in the Town. (2) Each Commission member shall be appointed by the Town Council and shall occupy a position on the Commission, such positions being numbered 1 through 7. (3) The Commission members shall be appointed to three year staggered terms. Positions 1 and 2 shall serve an implementation term which shall expire on September 30 of 2011. Positions 3 and 4 shall serve an implementation term which shall expire on September 30 of 2012. Positions 5, 6, and 7 shall serve an implementation term which shall expire on September 30 of 2013. After each such implementation term expires, the term of office for each position shall be three years. No member shall serve for more than two (2) consecutive full terms. Implementation terms shall not be counted as full terms. (4) All vacancies shall be filled for the unexpired term. A member shall hold office until his successor has been appointed by the Town Council and shall continue to hold office after his successor has been appointed by the Town Council for the limited purpose of the disposition of all complaints filed during that member's term. No member may participate in a decision regarding a complaint initiated prior to the expiration of the previous member’s term, but new members shall assume the duties of office with respect to all complainants initiated after the previous member's term. (5) The Commission shall elect a chairman and a vice-chairman to one (1) year terms. The vice-chairman shall act as chairman in the absence of the chairman. (6) Four (4) or more members of the Commission shall constitute a quorum, but no action of the Commission shall be of any force or effect unless it is adopted by the favorable vote of four (4) or more members. Town Council 96 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Ethics Commission DRAFT 04-06-10 Rev 4 WCR Page 10 of 16 (7) The Commission shall meet at least once a year to review this article and may make recommendations to the Town Council for amendments hereto. (8) The Commission shall render advisory opinions on potential conflicts of interest or violation of this article at the request of a Town official, member of a Town board or commission, or employee subject to the terms of this article. Such advisory opinion shall be rendered within a reasonable time, but in no event later than thirty (30) days after a request is received by the Commission. (9) It shall be a defense to an alleged violation of this article that the person accused previously requested an advisory opinion of the Commission and acted on such opinion in good faith, unless material facts were omitted or misstated by the person requesting the opinion. Such advisory opinion shall also be binding on the Commission in any subsequent charges concerning the person requesting the opinion. (10) Independent legal counsel shall be utilized to advise the Commission and participate in hearings. The Town Council shall annually designate and retain independent counsel who shall be a duly licensed attorney in the State of Texas. (11) The Commission shall have jurisdiction to review and make findings concerning any alleged violation of this article by any person subject to those provisions, if a complaint is filed within one year after the date of the alleged violation. The Commission may not consider any alleged violation that occurred before July 1, 2010 or more than one year before the date of the filing of a complaint. SECTION 8. DISPOSITION OF ALLEGED VIOLATIONS (1) A sworn complaint based on personal knowledge alleging a violation (s) of this article shall specify the provision (s) of this article alleged to have been violated, and shall name the Town official, candidate, appointee, or employee being charged. THE STATE OF TEXAS: COUNTY OF DENTON: TO: THE ETHICS REVIEW COMMISSION OF THE TOWN OF TROPHY CLUB, TEXAS: COMES NOW (complainant), and makes this complaint, UPON HIS/HER PERSONAL KNOWLEDGE AND UNDER OATH against (name of person complained against), and would show the Commission that: On or about the _______ day of ________________, ___,(insert date of the action, or omission, complained of) _____________________________________________, (name of person complained against) a/an (insert appropriate designation; Town official, candidate, appointee, employee, board or commission member) of the Town of Trophy Club, Texas, violated the following provision(s) of Code of Ethics and Conduct Ordinance, Town of Trophy Club, Texas, to wit: (Specify by Section, Subsection and Paragraph number the provision(s) alleged violated.) by committing the following act, or omission, to wit: ______________________________________________________________________ ______________________________________________________________________ Town Council 97 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Ethics Commission DRAFT 04-06-10 Rev 4 WCR Page 11 of 16 ______________________________________________________________________ ______________________________________________________________________ (Describe above, the action, or omission, alleged to violate each Code provision cited. You may attach additional pages if more space is required.) (2) Upon the aforesaid sworn complaint of any person being filed with the Town Secretary’s office, or on its own initiative, the Commission shall consider possible violations of this article by Town officials, candidates, appointees and employees. A complaint shall not be deemed to be filed on the initiative of the Commission save and except the complaint be signed and sworn to by two (2) members of the Commission, one of which is the Chairman of the Commission, after consultation with the legal counsel of the Commission. A complaint filed by an individual member of the Commission shall be deemed to have been filed in the Commission member’s capacity as a private citizen and, in such event, the member of the Commission filing the complaint shall not thereafter participate in a Commission meeting at which such complaint is considered save and except that the Commissioner filing the complaint may participate as a complainant at such meeting. (3) A complaint alleging a violation of this article must be filed with the Town Secretary within one (1) year from the commission of the action alleged as a violation, and not afterward. (4) The Town Secretary shall, in writing, advise the person filing the complaint that falsely accusing someone of a violation of this article may result in criminal prosecution of anyone who knowingly makes a false accusation. The Town Secretary shall, in writing, advise the person charged in the complaint that falsely responding to a complaint may result in criminal prosecution of anyone who knowingly makes a false response. (5) Not later than three (3) working days after the Town Secretary receives a sworn complaint, the Town Secretary shall acknowledge the receipt of the complaint to the complainant, and provide a copy of the complaint to the Town Attorney, the independent counsel, the Commission and the person complained against. Not later than ten (10) working days after receipt of a complaint, the Commission shall notify in writing the person who made the complaint and the person complained against of a date for a preliminary hearing. If the Commission does not hold a preliminary hearing within twenty (20) working days of receipt of the complaint, it shall notify the person who made the complaint of the reasons for the delay and shall subsequently give him the appropriate notification. (6) The Commission may consider possible violations of this article on its own initiative. Within seven (7) days of the Commission’s decision to consider a possible violation of this article, the Commission shall draft a written complaint specifying the provision(s) of this article alleged to have been violated and shall file a copy with the Town Secretary, and provide a copy to the Town Attorney, the independent counsel, and the person complained against. Not later than fifteen (15) days after the drafting of the complaint, the Commission shall notify in writing the person complained against of the date for the preliminary hearing. Town Council 98 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Ethics Commission DRAFT 04-06-10 Rev 4 WCR Page 12 of 16 (7) 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; provided that a member may consult with the attorney or the staff liaison for the Commission as to process, procedure and legal issues. (8) No Town official or employee shall reveal information relating to the filing or processing of a complaint, except as required for the performance of official duties or as required by law. Ex parte communications by or to members of the Commission are prohibited. All papers and communications relating to a complaint must be treated as confidential unless required to be made public under the Public Information Act of the Texas Government Code or other applicable law. (9) As soon as reasonably possible, but in no event more than sixty (60) days after receiving a complaint, the Commission shall conduct a preliminary hearing. (a) The issue at a preliminary hearing shall be the existence of reasonable grounds to believe that a violation of this article has occurred. The person filing a complaint, or the independent counsel in cases considered upon the Commission’s own initiative, shall state the alleged violation and shall describe in narrative form the testimony and other evidence which would be presented to prove the alleged violation as stated in the written complaint. Statements at a preliminary hearing shall be under oath, but there shall be no cross examination or requests for persons or evidence issued for the hearing. Members of the Commission may question the complainant, the independent counsel for the Commission, or the Town official, appointee or employee named in the complaint. (b) The Town official, appointee or employee named in the complaint shall have the opportunity to respond, but is not required to attend or make any statement. The Town official, appointee or employee may describe in narrative form the testimony and other evidence which would be presented to disprove the alleged violation. If the Town official, appointee or employee agrees that a violation has occurred, he may so state and the Commission may consider the appropriate sanction. (c) The complainant and the Town official, appointee or employee named in the complaint shall have the right of representation by counsel. (d) At the conclusion of the preliminary hearing, the Commission shall decide whether a final hearing should be held; provided the Commission may proceed to determine the appropriate sanction if the charged Town official, appointee, or employee does not object and admits the charged violation, and the Commission determines that there are no fact issues to be resolved. If the Commission determines that there are reasonable grounds to believe that a violation of this article has occurred, it shall schedule a final hearing. If the Commission does not determine that there are reasonable grounds to believe that a violation of this article has occurred, the complaint shall be automatically dismissed. A decision to conduct a final hearing is not a finding that a violation has occurred. Town Council 99 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Ethics Commission DRAFT 04-06-10 Rev 4 WCR Page 13 of 16 (e) The Commission, at any time during the preliminary hearing, may also dismiss a complaint if the complaint does not allege conduct which would be a violation of this article. Before a complaint is dismissed for failure to allege a violation, the complainant shall be permitted one opportunity, within ten (10) days of such preliminary hearing, to revise and resubmit the complaint. (f) The complainant, the independent counsel, and the Town official, appointee or employee named in the complaint may ask the Commission at a preliminary hearing to request certain persons and evidence for a final hearing, if one is scheduled. (10) Final Hearing (a) The final hearing shall be held as expeditiously as possible following the determination by the Commission that there are reasonable grounds to believe that a violation of this article has occurred, but in no event shall it be held more than thirty (30) days after said determination. The Commission may grant two (2) postponements, not to exceed fifteen (15) days each, upon the request of the Town official, appointee or employee named in the complaint. (b) The issue at a final hearing shall be whether a violation of this article has occurred. The Commission shall make its determination based on clear and convincing evidence in the record. All witnesses shall make their statements under oath. If the Commission determines that a violation has occurred, it shall state its findings in writing, shall identify the particular provision(s) of this article which have been violated, and within five (5) working days shall deliver a copy of the findings to the complainant, if any, the person named in the complaint and the Town Secretary. (c) If a complaint proceeds to a final hearing, the Commission may request and subpoena witnesses to attend and testify, administer oaths and affirmations, take evidence and request the production of books, papers, records, or other evidence needed for the performance of the Commission's duties or exercise of its powers, including its duties and powers of investigation. It shall be a violation of this article for a person to fail to appear and testify before the Commission in response to a request made in writing ten days or more prior to the scheduled time and date of the notice or request to appear. (11) Sanctions (a) If the Commission determines that a violation of this article has occurred, it shall proceed directly to determination of the appropriate sanction(s). A violation of this article shall not be subject to criminal penalties under the Town Code, except for the two instances specifically provided for in this article Section 8 (10)(c) and Section 11. The Commission may receive additional testimony or statements before considering sanctions, but is not required to do so. If the Town official, appointee or Town employee named in the complaint acted in reliance upon a written opinion of the Town Attorney, the Commission shall consider that fact. Comment [Council2]: Corrected from (8) to (10) Aligns with section 12 Town Council 100 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Ethics Commission DRAFT 04-06-10 Rev 4 WCR Page 14 of 16 (b) If the Commission determines that a violation of this article has occurred, it shall take the following actions: (1) If the complaint involved a current employee under the jurisdiction of the Town Manager, the matter will be referred to the Town Manager (2) If the complaint involved the Town Manager, Town Attorney, Town Secretary, or a Judge of the Municipal Court, the matter will be referred to the Town Council. (3) If the complaint involved a Town Council member, a board or commission member, a former Town official, or a former Town employee, the matter will be referred to the Town Council. (c) When referring a matter under Subsection (b), the Commission may impose or recommend the following sanctions: (1) Letter of notification. A letter of notification may be recommended when the commission finds that a violation of this article was clearly unintentional or when the action or conduct found to have been a violation of this article was performed by the official or employee in reliance on a public written opinion of the Town Attorney. A letter of notification must advise the official or employee to whom the letter is directed of any steps to be taken to avoid future violations. (2) Letter of admonition. A letter of admonition may be recommended when the commission finds that the violation of this article was minor and/or may have been unintentional, but where the circumstances call for a more substantial response than a letter of notification. (3) Reprimand. A reprimand may be recommended when the commission finds that a violation of this article was committed intentionally or through disregard of this article. A reprimand directed to an employee shall be included in said employee’s personnel file. The Town Manager may also elect to discipline the employee in accordance with Town personnel rules and procedures. A letter of reprimand directed to an elected Town official shall also be transmitted to the Town Secretary and published in the official newspaper of the Town. (4) Removal or suspension from employment. A recommendation of removal from employment or a recommendation of suspension from employment, as well as a recommendation for length of suspension, shall be the appropriate sanction when the Commission finds that a serious or repeated violation(s) of this article has been committed intentionally or through culpable disregard of this article by Town employees. The final authority to carry out such recommendations to suspend from employment and the length of suspension shall be with the Town Manager. The Town Manager may also elect to discipline the employee in accordance with Town personnel rules and procedures. Town Council 101 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Ethics Commission DRAFT 04-06-10 Rev 4 WCR Page 15 of 16 (5) Censure, recall or removal from office. A letter of censure, a recommendation of recall, or a recommendation to institute proceedings for removal from office, shall be the appropriate sanction when the Commission finds that a serious or repeated violation(s) of this article has been committed intentionally or through culpable disregard of this article by an elected Town official. A letter of censure, a recommendation of recall, or a recommendation to institute proceedings for removal from office, directed to an elected Town official shall also be transmitted to the Town Secretary and published in the official newspaper of the Town. The Town Council and citizens of the Town may take actions in accordance with the Town Charter. Any proceedings for removal from office shall be in compliance with provisions of the Town Charter and State law. (12) Dismissal. If the complaint is dismissed because the evidence failed to establish a violation of this article, the Commission shall not entertain any other similar complaint based on substantially the same evidence. SECTION 9. PETITION FOR DECLARATORY RULING. Any Town official or employee against whom public allegations of ethics violations have been made in the media or elsewhere has the right to file a sworn statement with the Town Secretary affirming their innocence, and to request the Commission to review the allegations and make known its findings. SECTION 10. CULPABLE MENTAL STATE. To commit a violation under any provision of this article, a person must have acted or failed to act knowingly or with knowledge. SECTION 11. FALSE COMPLAINTS In the event a complaint is received by the Commission that is subsequently found to be baseless, and the Commission deems that the complaint was filed with the intent to: (a) harass the person named in the complaint; or (b) damage any person's reputation; or (c) benefit the person filing the complaint, or a third party, either personally, professionally or politically; or (d) damage a related third party; the Commission may recommend the Town Attorney cause a complaint to be filed against such person in the municipal court or, as appropriate, a higher court of this state; the Town Council or Town Manager, as appropriate, may take disciplinary action(s) against the individual who filed the complaint, including but not limited to disciplinary action if such complainant is a Town employee or appointed officer or official of the Town; and/or the filing of a civil action to recover the costs, fees, charges and expenses Comment [Council3]: Added “may” Town Council 102 of 145 Meeting Date: June 7, 2010 DRAFT with employees under Ethics Commission DRAFT 04-06-10 Rev 4 WCR Page 16 of 16 incurred by the Town and person named in the complaint with respect to such complaint. The Commission may also recommend other action(s) that should be taken. SECTION 12. PENALTIES (1) Any person who shall violate Section 8 (10) (c) or Section 11 of this article shall be deemed guilty of an offense and shall be liable for a fine not to exceed the sum of $500.00. Each day the violation exists shall constitute a separate offense. Such penalty shall be in addition to all the other remedies provided herein. (2) Any person who knowingly files a false sworn statement under this article is subject to criminal prosecution for perjury under the laws of the State of Texas. SECTION 13. CODE OF ORDINANCES. The Code of Ordinances of the Town is hereby amended to include the terms and provisions of this Ordinance. All ordinances, parts of ordinances and the Code of Ordinances in conflict herewith are hereby amended to the extent of such conflict only. If a provision of this Ordinance and any other ordinance shall conflict, the terms of this Ordinance shall govern and control and the other ordinance or Code provision shall be read and construed in a manner consistent with the intent and provisions of this Ordinance. SECTION 14. SEVERABILITY. If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or its application to any person or circumstance is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance; and the Town Council hereby declares it would have passed such remaining portions of the Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 15. EFFECTIVE DATE. This Ordinance shall take effect immediately from and after its passage and publication in accordance with the provisions of the Texas Local Government Code, and it is accordingly so ordained. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this XXX day of XXXXXX, 2010. Mayor, Connie White Town of Trophy Club, Texas [SEAL] ATTEST: Town Council 103 of 145 Meeting Date: June 7, 2010 CODE OF ETHICS AND CONDUCT POLICY Section 1 provides a statement of policy and provides the following four purposes: (a) to encourage high ethical standards in official conduct by Town officials, appointees and employees; (b) to establish guidelines for ethical standards of conduct for all such officials, appointees and employees by setting forth those acts or actions that are incompatible with the best interests of the Town; (c) to require disclosure by such officials, candidates, appointees and employees of private financial or other interests in matters affecting the Town; and (d) to serve as a basis for disciplining those who fail to abide by its terms. It also excepts political contributions, loans, expenditures, reports or regulation of political campaigns, or the conduct of candidates in such campaigns from the regulations of the ordinance, except where the ordinance expressly provides that it is applicable to political contributions, etc. PRINCIPLES OF CONDUCT The Ordinance states principles of conduct, and provides that none of those principles may be used as the basis for an alleged violation of the Ordinance. APPLICABILITY AND DEFINITIONS Applicability. The Ordinance applies to Town Officials, Appointees and Employees, and their family members. Family member includes a spouse, parent, child, and the parents of a spouse of a Town Official, Appointee or Employee. Definitions. The ordinance provides a number of definitions. Provided below are some of the definitions that are integral to understanding the scope of the ordinance’s disclosure requirements and the persons to whom they apply. Appointee is defined as a person appointed or confirmed by the Mayor or the Town Council but Municipal Judges are excluded from the definition. Municipal Judges are included in the definition of Town Official. Page 1 of 13 Town Council 104 of 145 Meeting Date: June 7, 2010 Town Officials to whom the ordinance applies are as follows: Mayor, all members of Council, candidates, the Town Manager, the Assistant Town Manager, the Town Attorney, the Town Secretary, Judges of the Municipal Court, the Police Chief, the Fire Chief, the Finance Director, the Information Services Director, the Parks and Recreation Director, the Human Resources Director, the Streets Superintendent, the Planning and Zoning Coordinator and persons acting in the capacity of the aforementioned Town officials, appointees, or employees. Employees means all employees of the Town. Business Entity means any corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self-employed individual, holding company, joint stock company, receivership, trust, or any legal entity organized for profit. Business Dealings means any activity involving the exchange of economic benefits. Compensation means any economic benefit received in return for labor, services, property, or investment. Economic Benefit means any money, real or personal property, purchase, sale, lease, contract, option, credit, loan, discount, service, or other tangible or intangible thing of value, whether similar or dissimilar to those enumerated. Gift means a favor, hospitality, or economic benefit other than compensation but which does not include campaign contributions reported as required by State law, gifts received from a relative if given on account of kinship, or any value received by will, intestate succession, or as a distribution from an inter vivo or testamentary trust established by a spouse or ancestor. Income means Economic benefit received. Pecuniary Gain means any use, benefit or thing of value that can be valued in money. Source of Income means any business entity, employment, investment, or activity which earned or produced income, including interest, dividends, royalties or rents, which has been paid to or for the credit of a Town official, candidate or family member or which would be taxable to said Town official, candidate or family member under the United States Internal Revenue Code, as amended, even though not actually paid or credited. Substantial Interest means a person has a substantial interest in a business entity if he and/or a family member (a) owns ten percent (10%) or more of the voting stock or shares of the business entity; (b) owns ten percent (10%) or more Page 2 of 13 Town Council 105 of 145 Meeting Date: June 7, 2010 or $15,000 or more of the fair market value of the business entity; or (c) funds received from the business entity exceed ten percent (10%) or more of the person’s gross income for the previous year. A person has a substantial interest in real property if he, his parent or child, or if married his spouse or his spouse’s parent, controls or has an interest in the property and the interest has a market value of $2,500.00 or more. STANDARDS OF CONDUCT The Ordinance provides general prohibitions as follows: 1. Gifts. Prohibits Town Officials, Appointees or Employees from accepting or soliciting a gift as defined in the ordinance. 2. Confidential Information. Prohibits a Town Official, Appointee or Employee from disclosing confidential information or using confidential information for pecuniary gain. 3. Town Assets. Prohibits a Town Official, Appointee or Employee from using, requesting or allowing the use of Town facilities, personnel, equipment or supplies for private purposes, including political purposes, except pursuant to Town policies or as generally allowed to the public. 4. Appearance Before Board. Prohibits a Town Official or Appointee from appearing before a body of which the official is a member while representing himself or any other person, group, association, interest or business entity. 5. Representation of Others Before a Board. Prohibits a Town Official, Appointee, or Employee from representing any private person, group or interest other than himself or a family member, before a department, agency, board or commission of the Town for economic benefit or pecuniary gain. 6. Decision Making Process. Prohibits a Town Official, Appointee, or Employee from voting on or participating in a decision making process if the Official or Employee has a direct financial interest in the outcome of the matter under consideration. Prohibits Town Officials, appointees, or employees from voting on or participating in any decision making process on any matter concerning real property or a business entity if the the person has a substantial interest in the business entity or real property. 7. Employment. Prohibits a Town Official, Appointee or Employee from accepting other employment or engaging in outside activities incompatible with the full and proper discharge of the official duties and responsibilities of that person or which would tend to impair independent judgment in the performance of official duties. Page 3 of 13 Town Council 106 of 145 Meeting Date: June 7, 2010 8. Owner Occupied Homestead. Town Officials, appointees and Employees are not prevented from representing their interest in a homestead before the Council, board, commission or any department except for the body of which the official is a member, or the department by which the employee is employed. The homestead must be owner occupied. 9. Municipal Court. Prohibits Town Officials and Employees from representing anyone other than themselves or a family member in any action or proceeding in the Town’s municipal court. If a Council member elects to have a trial in municipal court, the Town Council is required to appoint a special judge to preside over the trial. 10. Surety. Prohibits Town officials from acting as a surety for any person or business that has a contract with the Town, or on any bond required by the Town for any Town official or employee. DISCLOSURE OF INTEREST 1. Substantial Interest - Official. Prohibits a Town Official or Appointee who has a substantial interest in any real property or business entity from voting or otherwise participating in the consideration of a matter pending before the body of which the Town official or appointee is a member. 2. Substantial Interest – Employee. Prohibits an Employee who has a substantial interest in any real property or business entity involved in a decision pending before the Employee’s department from participating in the consideration of that matter. 3. Disclosure Statement – Substantial Interest. Requires Town Officials and Appointees to publicly disclose either verbally or in writing, the nature and extent of his/her substantial interest to the body on which the Town official or appointee serves before any discussion or determination or prior to the discovery of a conflict. Disclosure statements must be included in the official minutes of a body. Employees must disclose their interest in writing to his/her supervisor and the Town Secretary prior to any consideration of a matter. The Town Secretary must maintain a file of employee disclosure statements and those statements are public record. FINANCIAL DISCLOSURE 1. Current Town Officials. By April 30th of each year, each Town Official must file a sworn financial disclosure statement with the Town Secretary. The statement must reflect the “financial situation” of the Town official as of Page 4 of 13 Town Council 107 of 145 Meeting Date: June 7, 2010 December 31st of the previous year. For the purposes of the disclosure statement, the following definitions are provided: “Family member” shall include only the Town official, and the spouse and the minor children of the Town official; and “Substantial interest” shall include only the interests of the Town official, the spouse and minor children of the Town official. The annual financial disclosure statement is not required to include assets or property of any person other than those of the Town official, the spouse and minor children of the Town official. 2. New Town Officials. Newly employed or appointed Town Officials must file a sworn financial disclosure statement with the Town Secretary within 30 days from the date the position with the Town is assumed. The statement must reflect the “financial situation” as of date of employment or appointment and for the previous twelve (12) months. The Town official is not required to include the following requirements in his/her statement: (a) Identification of the donor of each gift of more than one hundred fifty dollars ($150.00) in value received by the person or family member, including the value of the gift, where such donor has appeared before and requested action of the Town Council during the reporting period. (b) Identification of the donor of two or more gifts of an accumulated value of six hundred dollars ($600.00) or more received by the person or family member, where such donor has appeared before and requested action of the Town Council during the reporting period. (c) Identification of all individuals or business entities that: (i) he or a business entity in which he has a substantial interest has had business dealings involving one or more transactions of five hundred dollars ($500.00) or more each, for a total of twenty-five hundred dollars ($2,500) or more, and (ii) have appeared before and requested action of the Town Council during the reporting period. 3. Candidates. Candidates must file a sworn financial disclosure statement with the Town Secretary within 15 days of filing for office. The statement must reflect the “financial situation” of the candidate as of December 31st of the year prior to the election date. Page 5 of 13 Town Council 108 of 145 Meeting Date: June 7, 2010 4. Financial Disclosure Statements – Form and Content. Financial Disclosure statements are required on a Town provided form and must include the following information: (a) Name, residence address, business address, telephone number, name of all family members and all names under which the person or family member does business. (b) Identification by street address, and legal description of all real property located within the Town or its extraterritorial jurisdiction in which the person has a substantial interest. (c) Identification of each business entity owning property or doing business within the Town or its extraterritorial jurisdiction in which the person has a substantial interest. (d) Identification of each person or business entity to whom the person or family member owed a debt of ten thousand dollars ($10,000) or more during the reporting period, but not including debts owed to persons related within the second degree of consanguinity or affinity, or revolving charge accounts, and excluding loans to a political campaign which were reported as required by law; if repaid during the reporting period the date of repayment shall be stated. (e) Identification of each source of income amounting to ten (10) percent or more of the person’s or family member’s gross annual income as defined by the United States Internal Revenue Code. (f) Identification of the donor of each gift of more than one hundred fifty dollars ($150.00) in value received by the person or family member, including the value of the gift, where such donor has appeared before and requested action of the Town Council during the reporting period. (g) Identification of the donor of two or more gifts of an accumulated value of six hundred dollars ($600.00) or more received by the person or family member, where such donor has appeared before and requested action of the Town Council during the reporting period. (h) Identification of all individuals or business entities that: (i) he or a business entity in which he has a substantial interest has had business dealings involving one or more transactions of five hundred dollars ($500.00) or more each, for a total of twenty-five hundred dollars ($2,500) or more, and Page 6 of 13 Town Council 109 of 145 Meeting Date: June 7, 2010 (ii) have appeared before and requested action of the Town Council during the reporting period. 5. Public Record. The Town Secretary must maintain all Financial Disclosure Statements as public records. The retention period is 3 years and at the end of 3 years, the statements must be returned to the person filing or destroyed. 6. Third Party Appearing Before Board. A Town official, appointee, or employee is required to immediately and publicly identify verbally or in writing, all individuals or business entities that: (a) he or a business entity in which he has a substantial interest or has had business dealings involving one or more transactions of five hundred dollars ($500.00) or more each, for a total of twenty-five hundred dollars ($2,500) or more within the immediately preceding twelve (12) month period, and (b) appeared before and requested some action of the Town Council, board or commission of which such reporting person is an advisor or member. 7. Planning and Zoning Commission. Within 30 days of appointment and thereafter annually, P&Z Commission members must file a sworn statement with the Town Secretary identifying by street address and legal description all real property located within the Town or its extraterritorial jurisdiction in which the member has a substantial interest. ETHICS REVIEW COMMISSION 1. Membership. Establishes an Ethics Review Commission comprised of 7 residents of the Town and appointed by the Town Council. 2. Term. The initial term of appointment is the “Implementation Term” with 2 members expiring in 2011, 2 members expiring in 2012, and 3 members expiring in 2013. After the Implementation term, terms will be for 3 years each. 3. Term Limit. There will be a term limit of 6 years (2 consecutive terms) Implementation Term does not count as a full term for purpose of term limit. 4. Vacancy. If a vacancy occurs, the vacating member will hold office until a replacement is appointed for the purpose of completing the hearing of all pending complaints. New members only have purview over new matters that are initiated after they are appointed. Page 7 of 13 Town Council 110 of 145 Meeting Date: June 7, 2010 5. Chair. The ordinance provides for a Chair and Vice Chair to be appointed by the Commission. 6. Quorum. A quorum is 4 members and a minimum of 4 votes is required to approve all matters. 7. Ordinance Review. The Commission must meet one time per year to review the Ordinance and make recommendations to Council for revisions. 8. Advisory Opinions. The Commission can issue advisory opinions on potential conflict of interest or violations 9. Defense. The ordinance provides a defense to an alleged violation if a person previously requested an advisory opinion of the Commission and acted in reliance on that opinion unless material facts were omitted or misstated. The advisory opinion is binding in subsequent charges concerning the requestor. 10. Independent Legal Counsel. Independent legal counsel must be utilized to advise the Commission and to participate in hearings. The Council must annually designate and retain legal counsel licensed in Texas. 11. Deadline for Review of Violation. The Commission has jurisdiction to review and make findings on an alleged violation if a complaint is filed within one year after the date of the alleged violation. The Commission cannot consider any alleged violation occurring prior to July 1, 2010. The Commission cannot consider an alleged violation occurring more than one year prior to the date of the filing of the complaint. DISPOSITION OF ALLEGED VIOLATIONS 1. Sworn Complaint Required. A sworn complaint must be based upon personal knowledge of an alleged violation and must specify the provision(s) of the Ordinance allegedly violated, must include the name of the Town Official, Candidate, Appointee, or Employee charged and must be in the form specified in the ordinance. 2. Complaint or Commission Initiative. Either upon the filling of a sworn complaint or upon its own initiative, the Ethics Commission must consider alleged violations of the ordinance. In order for the Commission to initiate a complaint, it must be signed and sworn to by 2 members of the Commission, one of which must be the Chairman, after consultation with legal counsel of the Commission. A single member of the Commission may file a complaint, but that complaint would be deemed to have been filed in that person’s capacity as a private citizen. The 1 member who filed that complaint could not participate in further proceedings, other than as a complainant. Page 8 of 13 Town Council 111 of 145 Meeting Date: June 7, 2010 3. Complaint – Filing and Notice. A complaint must be filed with the Town Secretary within one year from the alleged violation. The Town Secretary must provide written notice to the complainant that knowingly making a false accusation could result in criminal prosecution. The Town Secretary must notify the accused in writing that knowingly falsely responding to a complaint may result in criminal prosecution. 4. Complaint – Preliminary Hearing. Within 3 working days after receiving a sworn complaint, the Town Secretary must acknowledge the receipt of the complaint to the complainant, and provide a copy of the complaint to the Town Attorney, the independent counsel, the Commission and the person complained against. Within 10 working days after receipt of a complaint, the Commission must provide written notice of a preliminary hearing date to the person complaining and the person accused. If the preliminary hearing is not held within 20 working days after receiving the complaint, the Commission must notify the complainant of the reason for the delay and must give “appropriate” notification. 5. Complaint – Commission Initiative – Preliminary Hearing. The Commission may consider possible violations on its own initiative. Within 7 days of the Commission’s decision to consider a possible violation, the Commission must draft a written complaint specifying the provisions alleged to have been violated. A copy must be filed with the Town Secretary and a copy must be provided to the Town Attorney, independent legal counsel and the accused. Within 15 days after drafting the complaint, the Commission must notify the accused of the date for his/her preliminary hearing. 6. Communications and Disclosure of Information. After a complaint has been filed and while it is pending, Commission members may not communicate directly or indirectly with any party or person about any issue regarding the complaint unless done at a Commission meeting or unless the member is consulting with the attorney or staff liaison about process, procedure and legal issues. Town Officials and Employees are prohibited from revealing information relating to the filing or processing of a complaint except as required to perform official duties or as required by law. Ex parte communications by or to members of the Commission are prohibited. Papers and communications relating to a complaint are to be treated as confidential unless required to be made public under the Public Information Act of the Texas Government Code or other applicable law. 7. Preliminary Hearing. A preliminary hearing must be conducted within 60 days after a complaint is received. The issue at a preliminary hearing is the existence of reasonable grounds to believe that a violation has occurred. The person filing a complaint must state the alleged violation and describe the testimony and other evidence that will be presented to prove the alleged violation. If the complaint is Page 9 of 13 Town Council 112 of 145 Meeting Date: June 7, 2010 filed upon Commission initiative, the independent counsel must state the alleged violation and describe the testimony and other evidence that will be presented to prove the alleged violation. At the preliminary hearing, statements are to be made under oath, there is no cross examination, and no requests for persons or evidence will be issued for the preliminary hearing. Members of the Commission may question the complainant, the independent counsel for the Commission, or the Town official, appointee or employee named in the complaint. The accused has the opportunity to respond, but is not required to attend or make any statement. The accused may describe the testimony and other evidence which will be presented to disprove the alleged violation. If the accused agrees that a violation has occurred, the Commission may consider the appropriate sanction. The Ordinance states that both the accused and the complainant have the right to legal counsel. 8. Conclusion of Preliminary Hearing. At the conclusion of the preliminary hearing, the Commission determines whether a final hearing should be held. If the Commission determines that there are reasonable grounds to believe that a violation of the ordinance occurred, a final hearing will be scheduled. If not, the complaint will be dismissed. The Commission may also dismiss a complaint if the complaint does not allege conduct that would be a violation of the Ordinance. Within 10 days of the preliminary hearing, the complainant will be given one opportunity to revise and resubmit the charge. The complainant, the accused, or independent legal counsel may request specified persons and evidence at the final hearing. 9. Final Hearing. A final hearing must be held within 30 days after a preliminary hearing determination to proceed. The Commission may grant two (2) postponements, not to exceed fifteen (15) days each, upon the request of the accused. The issue at the final hearing is whether a violation of the Ordinance occurred. The standard is clear and convincing evidence in the record. Witness statements will be under oath. Within 5 working days, the Commission must provide to the complainant, the accused, and the Town Secretary, written findings identifying the violation and particular provision violated. 10. Commission Authority. The Commission may request and subpoena witnesses to testify. The Commission may also take evidence and request the production of books, papers, records, or other evidence needed for the performance of its duties including the exercise of its duties and powers of Page 10 of 13 Town Council 113 of 145 Meeting Date: June 7, 2010 investigation. The ordinance makes it a criminal violation for a person to fail to appear and testify in response to a written request made 10 days or more prior to the scheduled time and date of the notice or request to appear. SANCTIONS 1. Criminal Penalties. The Commission has the authority to issue sanctions. The ordinance imposes a criminal penalty for failure to respond to a subpoena and for the filing of a false complaint. The Commission may receive additional testimony before considering sanctions. If the accused acted in reliance upon a written opinion of the Town Attorney, the Commission shall consider that fact before issuing sanctions. 2. Sanctions. If the Commission determines that a violation of the Ordinance occurred, it must take the following actions: (a) If the complaint involved a current employee under the jurisdiction of the Town Manager, the matter will be referred to the Town Manager (b) If the complaint involved the Town Manager, Town Attorney, Town Secretary, or a Judge of the Municipal Court, the matter will be referred to the Town Council. (c) If the complaint involved a Town Council member, a board or commission member, a former Town official, or a former Town employee, the matter will be referred to the Town Council. (d) When referring a matter under the above sections, the Commission may impose or recommend sanctions such as: (1) Letter of notification. A letter of notification may be recommended when the commission finds that a violation of this article was clearly unintentional or when the action or conduct found to have been a violation of this article was performed by the official or employee in reliance on a public written opinion of the Town Attorney. A letter of notification must advise the official or employee to whom the letter is directed of any steps to be taken to avoid future violations. (2) Letter of admonition. A letter of admonition may be recommended when the commission finds that the violation of this article was minor and/or may have been unintentional, but where the circumstances call for a more substantial response than a letter of notification. Page 11 of 13 Town Council 114 of 145 Meeting Date: June 7, 2010 (3) Reprimand. A reprimand may be recommended when the commission finds that a violation of this article was committed intentionally or through disregard of this article. A reprimand directed to an employee shall be included in said employee’s personnel file. The Town Manager may also elect to discipline the employee in accordance with Town personnel rules and procedures. A letter of reprimand directed to an elected Town official shall also be transmitted to the Town Secretary and published in the official newspaper of the Town. (4) Removal or suspension from employment. A recommendation of removal from employment or a recommendation of suspension from employment, as well as a recommendation for length of suspension, shall be the appropriate sanction when the Commission finds that a serious or repeated violation(s) of this article has been committed intentionally or through culpable disregard of this article by Town employees. The final authority to carry out such recommendations to suspend from employment and the length of suspension shall be with the Town Manager. The Town Manager may also elect to discipline the employee in accordance with Town personnel rules and procedures. (5) Censure, recall or removal from office. A letter of censure, a recommendation of recall, or a recommendation to institute proceedings for removal from office, shall be the appropriate sanction when the Commission finds that a serious or repeated violation(s) of this article has been committed intentionally or through culpable disregard of this article by an elected Town official. A letter of censure, a recommendation of recall, or a recommendation to institute proceedings for removal from office, directed to an elected Town official shall also be transmitted to the Town Secretary and published in the official newspaper of the Town. The Town Council and citizens of the Town may take actions in accordance with the Town Charter. Any proceedings for removal from office shall be in compliance with provisions of the Town Charter and State law. 3. Dismissal. If a complaint is dismissed because the evidence failed to establish a violation of this article, the Commission cannot entertain any other similar complaint based on substantially the same evidence. PETITION FOR DECLARATORY RULING Any Town official or employee against whom public allegations of ethics violations have been made in the media or elsewhere has the right to file a sworn Page 12 of 13 Town Council 115 of 145 Meeting Date: June 7, 2010 Page 13 of 13 statement with the Town Secretary affirming their innocence, and to request the Commission to review the allegations and make known its findings. CULPABLE MENTAL STATE To commit a violation under any provision of the Ordinance, a person must have acted or failed to act knowingly or with knowledge. FALSE COMPLAINTS In the event a complaint is received by the Commission that is subsequently found to be baseless, and the Commission deems that the complaint was filed with the intent to: (a) harass the person named in the complaint; or (b) damage any person's reputation; or (c) benefit the person filing the complaint, or a third party, either personally, professionally or politically; or (d) damage a related third party; The Commission may recommend the Town Attorney file a complaint in municipal court or a higher court. The ordinance authorizes the Town Council or Town Manager to take disciplinary action against an individual Town employee, appointed officer, or official who files a false complaint. The ordinance authorizes the filing of a civil action to recover the costs, fees, charges and expenses incurred by the Town and person named in the complaint with respect to such complaint. The Commission may also recommend other action(s) that should be taken. PENALTIES The Ordinance imposes a fine up to $500.00 for a criminal violation of the Ordinance, and authorizes a separate offense for each day a violation continues. The criminal penalty is in addition to the other penalties specified. Town Council 116 of 145 Meeting Date: June 7, 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-252-T Name: Status:Type:Agenda Item Regular Session File created:In control:5/7/2010 Town Council On agenda:Final action:6/7/2010 Title:Consider and take appropriate action regarding a Resolution nominating a new primary and alternate representative to the Regional Transportation Committee or chose to keep the current Primary representative, Rudy Durham, Deputy Mayor Pro Tem, City of Lewisville and Alternate, Jody Smith, Mayor, Town of Flower Mound. Attachments:RTC Representative.pdf Lewisville RTC.pdf Res. 2010-XX RTC Nomination.pdf Action ByDate Action ResultVer. Town Council 117 of 145 Meeting Date: June 7, 2010 12010-252-T Version:File #: Title Consider and take appropriate action regarding a Resolution nominating a new primary and alternate representative to the Regional Transportation Committee or chose to keep the current Primary representative, Rudy Durham, Deputy Mayor Pro Tem, City of Lewisville and Alternate, Jody Smith, Mayor, Town of Flower Mound. Town Council 118 of 145 Meeting Date: June 7, 2010 Town Council 119 of 145 Meeting Date: June 7, 2010 Town Council 120 of 145 Meeting Date: June 7, 2010 Town Council 121 of 145 Meeting Date: June 7, 2010 Town Council 122 of 145 Meeting Date: June 7, 2010 Town Council 123 of 145 Meeting Date: June 7, 2010 Town Council 124 of 145 Meeting Date: June 7, 2010 Town Council 125 of 145 Meeting Date: June 7, 2010 Town Council 126 of 145 Meeting Date: June 7, 2010 TOWN OF TROPHY CLUB, TEXAS RESOLUTION NO. 2010- A RESOLUTION OF THE TOWN COUNCIL OF THE OF THE TOWN OF TROPHY CLUB, TEXAS NOMINATING ONE REPRESENTATIVE TO THE REGIONAL TRANSPORTATION COUNICL; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Regional Transportation Council (RTC) Bylaws and Operation Procedures state that “The person representing a group of several cities shall be selected by mayors/county judges using a weighted vote of maximum of the daytime or nighttime population of the cities/counties represented”; and WHEREAS, the Towns of Trophy City and Flower Mound and Cities of Lewisville, Roanoke and the The Colony share a seat on the Regional Transportation Counci. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS THAT: Section 1. The Town of Trophy Club hereby nominates __________________, as a representative to the Regional Transportation Council and ___________________, as the alternate. Section 2. That this Resolution shall take effect from and after the date of passage. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas on this the 4th day of June 2010. _____________________________________ Connie White Mayor, Town of Trophy Club, Texas ATTEST: _______________________________________ Town Secretary, Town of Trophy Club, Texas Resolution 2010-XX (File ID 2010-252) 1 Town Council 127 of 145 Meeting Date: June 7, 2010 Resolution 2010-XX (File ID 2010-252) 2 [Seal] APPROVED AS TO FORM: _________________________________________ Town Attorney, Town of Trophy Club, Texas Town Council 128 of 145 Meeting Date: June 7, 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-297-T Name: Status:Type:Agenda Item Regular Session File created:In control:5/24/2010 Town Council On agenda:Final action:6/7/2010 Title:Consider and take appropriate action regarding a Resolution approving the renaming of Northwest Park to Independence Park. Attachments:Res 2010- Renaming Northeast Park to Freedom.pdf Action ByDate Action ResultVer. Town Council 129 of 145 Meeting Date: June 7, 2010 12010-297-T Version:File #: Title Consider and take appropriate action regarding a Resolution approving the renaming of Northwest Park to Independence Park. Body The Park Board unanimously recommended that Northwest Park's name be changed to Independence Park to avoid any confusion between the two complexes as they are adjacent to each other. The are both baseball parks and staff will just renumber the baseball fields to accommodate the change. Town Council 130 of 145 Meeting Date: June 7, 2010 TOWN OF TROPHY CLUB, TEXAS RESOLUTION NO. 2010- A RESOLUTION OF THE TOWN COUNCIL OF THE OF THE TOWN OF TROPHY CLUB, TEXAS APPROVING RENAMING NORTHWEST PARK TO INDEPENDENCE PARK; AND PROVIDING AN EFFECTIVE DATE. WHEREAS; the Town Council of the Town of Trophy Club, Texas, adopted Resolution 2002-24 establishing procedures and guidelines for naming and renaming municipal parks, parts or areas within parks and recreation facilities on August 19th, 2002; and WHEREAS, the Park and Recreation Board, as appropriate, was responsible for research, study and recommendation of a proposed name change to the Town Council; and WHEREAS, the Town Council recognizes the procedure for renaming the Park or facility will be the same as procedures for originally naming parks, parts or areas within a park or recreation facility; and WHEREAS, the Parks and Recreation Board recognized the physical proximity and similar venue to what is currently Independence Park; and WHEREAS, the Parks and Recreation Board submitted the name Independence Park to the Town Council for its consideration and approval in order to rename the park currently designated as Northwest Park. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS THAT: Section 1. According to guidelines, by outstanding and/or predominate physical characteristics of the land, the Town Council chooses to rename Northeast Park to Freedom Park. Section 2. The Town Council authorizes the Town Manager or his designee to take the necessary action publicizing the name change. Section 3. This Resolution shall take effect from and after the date of passage. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas on this the 7th day of June 2010. Resolution 2010- 1 Town Council 131 of 145 Meeting Date: June 7, 2010 Resolution 2010- 2 _____________________________________ Connie White Mayor, Town of Trophy Club, Texas ATTEST: _______________________________________ Town Secretary, Town of Trophy Club, Texas [Seal] APPROVED AS TO FORM: _________________________________________ Town Attorney, Town of Trophy Club, Texas Town Council 132 of 145 Meeting Date: June 7, 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-300-T Name: Status:Type:Agenda Item Regular Session File created:In control:5/24/2010 Town Council On agenda:Final action:6/7/2010 Title:Receive Council Member Rose's liaison report regarding the May 18, 2010 TCMUD1 Meeting; discussion of same. Attachments: Action ByDate Action ResultVer. Town Council 133 of 145 Meeting Date: June 7, 2010 12010-300-T Version:File #: Title Receive Council Member Rose's liaison report regarding the May 18, 2010 TCMUD1 Meeting; discussion of same. Body 1. Vertical Turbine Pump Installation 2. Action on SEMO Committee's recommendations 3. Staggered terms for MUD 1 Directors 4. Selection of MUD 1 President, Vice-President and Secretary/Treasurer Town Council 134 of 145 Meeting Date: June 7, 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-298-T Name: Status:Type:Agenda Item Regular Session File created:In control:5/24/2010 Town Council On agenda:Final action:6/7/2010 Title:Acting Town Manager Seidel's update regarding the following; discussion of the same. 1. Safe Routes to School Project (SRTS) bid opening 2. Manager's Retreat 3. Pool Update Attachments: Action ByDate Action ResultVer. Town Council 135 of 145 Meeting Date: June 7, 2010 12010-298-T Version:File #: Title Acting Town Manager Seidel's update regarding the following; discussion of the same. 1. Safe Routes to School Project (SRTS) bid opening 2. Manager's Retreat 3. Pool Update Town Council 136 of 145 Meeting Date: June 7, 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-299-T Name: Status:Type:Agenda Item Regular Session File created:In control:5/24/2010 Town Council On agenda:Final action:6/7/2010 Title:Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same. Attachments: Action ByDate Action ResultVer. Town Council 137 of 145 Meeting Date: June 7, 2010 12010-299-T Version:File #: Title Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same. Body - Joint Session with TCMUD No. 1 - Metroport Cities Partnership - NLF Mayors Roundtable - Rotary - Mayors Luncheon JPS Health Network - Ribbon Cutting - Bobcat Blvd. - New Council member Orientation - Chamber Lunching Town Council 138 of 145 Meeting Date: June 7, 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-301-T Name: Status:Type:Agenda Item Regular Session File created:In control:5/24/2010 Town Council On agenda:Final action:6/7/2010 Title:Items for Future Agendas. Attachments:Items for Future Agendas.pdf Action ByDate Action ResultVer. Town Council 139 of 145 Meeting Date: June 7, 2010 12010-301-T Version:File #: Title Items for Future Agendas. Town Council 140 of 145 Meeting Date: June 7, 2010 1. Consider and receive input for regarding options to improve the upkeep of rental property, with or without creating a Building Standard Commission. (Edstrom - 4/21/08) 2. Item to receive a report from Town Manager Emmons regarding an update on the Comprehensive Land Plan. (Edstrom - 10/20/08 & Strother 10/19/09) 3. Consider and take appropriate action regarding a Library Focus Group or other plan for exploring options and compiling data for a future library. (Wilson) 4. Consider and take appropriate action regarding an Ordinance amending Article IV entitled "Peddlers and Solicitors,” in its entirety, of Chapter 10, entitled "Public Safety", of the Code of Ordinances of the Town of Trophy Club, prescribing handbill regulations to the Ordinance.. 5. Consider and take appropriate action regarding the creation of a Citizen’s Financial Budget Board. (Rose 12/7/09) 6. Consider and take appropriate action regarding an Ordinance amending Chapter 3 of the Code of Ordinances entitled "Buildings and Construction" of Article XV, entitled "Swimming Pools. (Rose 2/1/10) 7. Consider and take appropriate action regarding procurement policies and their alignment with State statutes. (Rose 2/1/10) 8. Consider and take appropriate action regarding placing policies and procedures access on the Town web site. (Rose 2/1/10) 9. Consider and take appropriate action regarding noise regulations for Oil and Gas Well Drilling and Production (Rose 4/26/10) 10. Receive a report from Acting Town Manager Seidel regarding the financial, operational and status of projects for the Town of Trophy Club Public Improvement District No. 1 (The Highlands at Trophy Club), going back to January 1, 2010 and discussion of same. (Stotts – Cantrell 5/17/10) Town Council 141 of 145 Meeting Date: June 7, 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-302-T Name: Status:Type:Agenda Item Executive Session File created:In control:5/24/2010 Town Council On agenda:Final action:6/7/2010 Title:Council to convene into executive session to discuss or deliberate the appointment, employment, evaluation, reassignment, duties, discipline or dismissal of a public officer or employee pursuant to Section 551.074 (a) (1) of the Texas Open Meetings Act Personnel Matters (§551.074(a)(1)): (1) Appointment of Mayor Pro Tem. Attachments: Action ByDate Action ResultVer. Town Council 142 of 145 Meeting Date: June 7, 2010 12010-302-T Version:File #: Title Council to convene into executive session to discuss or deliberate the appointment, employment, evaluation, reassignment, duties, discipline or dismissal of a public officer or employee pursuant to Section 551.074 (a) (1) of the Texas Open Meetings Act Personnel Matters (§551.074(a)(1)): (1) Appointment of Mayor Pro Tem. Town Council 143 of 145 Meeting Date: June 7, 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-303-T Name: Status:Type:Agenda Item Regular Session File created:In control:5/24/2010 Town Council On agenda:Final action:6/7/2010 Title:Consider and take appropriate action regarding the Executive Session, Item #2010-302. Attachments: Action ByDate Action ResultVer. Town Council 144 of 145 Meeting Date: June 7, 2010 12010-303-T Version:File #: Title Consider and take appropriate action regarding the Executive Session, Item #2010-302. Town Council 145 of 145 Meeting Date: June 7, 2010