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'~ r :ïE 'S- >- ~ ,......""'tt ~ 0:::... ~ 193 u~ - ¡:S«J LU 0 -- Lù~ c.> et::c ~""rQ ('\j f:cl 8š ~. ,I CI) - iiT"l ~: -:;ë gy ORDINANCE 1998--.28 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS AMENDING SECTION 2.424 OF THE CITY CODE TO ALLOW PERSONS WHO OWN BUSINESSES THAT SELL GOODS OR SERVICES TO THE CITY TO SERVE ON CITY BOARDS AND COMMISSIONS; AMENDING SECTIONS 2.461 AND 2.462 OF THE CITY CODE TO REQUIRE ANNUAL DISCLOSURE OF RELEVANT INTERESTS IN BUSINESS ENTITIES AND REAL PROPERTY BY BOARD AND COMMISSION MEMBERS; INCLUDING PROCEDURAL PROVISIONS AND PROVIDING FOR PENALTIES. RECITALS: 1. Section 12.02 of the City Charter was amended at the May 2, 1998 election to allow persons who own businesses that sell goods or services to the city to serve on city boards and commissions, and to require annual disclosure of relevant interests in business entities and real property by City board and commission members. 2. The City's Ethics Review Commission met on July 20, 1998 and voted to recommend to the City Council that the following amendments to the City's Ethics Ordinance be made to conform to the revised City Charter. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS: SECTION 1. Section 2.424 of the City Code is amended as follows (underlining indicates added text and overstrike indicates deleted text): Sec. 2.424. Contracts with city; eligibility for appointment or election to office. (a) A person is ineligible for election or appointment to a position as a city officer if the person has an O'vvnership interest in a business entity that has a contract for the sale to the city of any land, materials, supplies or service in an amount of $7,500.00 or more annually; provided that city council members shall be subject to subsection (b) of this section. Any city officer, other than a city council member, 'Ij'ho becomes ineligible under this subsection 'v'iì'hile in office shall f{)rfeit the office held. Any violation of this section shall render any contract entered into betvveen the city and the business entity during the period of the violation voidable by the city manager or the city council. (.9. b) No member of the city council and no city employee shall have a financial interest in the sale to the city of any land, materials, supplies or service, outside of the person's position with the city. Any person having an interest shall be ineligible for election as a city council member or appointment as a city employee, and any city council member or city employee who acquires an interest shall forfeit the office or employment. Any violation of this subsection with the actual or constructive knowledge of the city council member or employee shall render the contract voidable by the city manager or the city council. (b. e) In subsections (a) and (b) of this section, the term "sale to the city" includes a sale to city-sponsored entities and organizations subject to substantial control by the city in one or more of the following respects: (1) All or a majority of the governing body of the entity or organization is appointed by the city council; (2) The city provides more than one-half of the operating funds of the entity or organization;