1992-021g ~pdocs\~;l~,~, o
ORDINANCE NO ~
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING CHAPTER 10 OF
THE CODE OF ORDINANCES TO PROHIBIT CERTAIN CONTRACTS WITH FORMER
COUNCILMEMBERS FOR A CERTAIN PERIOD, AND PROVIDING FOR AN EFFECTIVE
DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I. That Chapter 10 of the Code of Ordinances IS
amended by adding a new section 10-36 to read as follows
Sec 10-36 Contracts with Former Councllmembers
(a) The City shall not, within 180 days after a councllmember
leaves office, enter into a contract with any business
entity in which the former council member has a substantial
interest The prohibition of this paragraph shall not
apply to
(1) a contract required to be awarded to the lowest respon-
sible bidder through competitive sealed bids as re-
quired by State law,
(2) a contract to purchase items that are available from
only one source as specified in Tex Loc Gov't Code,
Chapter 252, as amended,
(3) a contract required to receive a City service or parti-
cipate in a City program which is available to the gen-
eral public,
(4) a contract that is necessary to preserve or protect the
public health or safety of the citizens or because of
a public calamity that requires the Immediate appropri-
ation of money to relieve the necessity of the munici-
pality's residents or to preserve the property of the
municipality, and
(5) the purchase of real estate or an Interest in real
estate
(b) For purposes of this section, a person has a substan-
tial interest in a business entity if
(1) the person owns ten percent (10%) or more of the voting
stock or shares of the business entity,
(2) owns either ten percent (10%) or more or $5,000 or more
of the fair market value of the business entity, or
(3) funds received by the person from the business entity
exceed ten percent (10%) of the person's gross income
for the previous year
(c) A former councilmember is considered to have a substantial
interest under this section if a person related to the
former councilmember in the first degree by consanguinity
or affinity has a substantial interest under this section
(d) For purposes of this section, a "business entity" means a
sole proprietorship, partnership, firm, corporation,
holding company, joint-stock company, receivership, trust,
or any other entity recognized by law
SECTION II. If any section, subsection, paragraph, sentence,
clause, phrase or word in this agreement, or application thereof to
any person or circumstance is held invalid by any court of compe-
tent jurisdiction, such holding shall not affect the validity of
the remaining portions of this agreement, and the parties hereby
declare they would have enacted such remaining portions despite any
such invalidity
SECTION III. That this ordinance shall become effective lm-
approval
BOB CASTLEBERRY, MAY~ ~
/
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
DEBRA A DRAYOVITCH, CITY ATTORNEY
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