(A) Any municipal officer or employee who has a substantial financial interest, direct or indirect, or by reason of ownership of stock in any corporation, in any contract with the city or in the sale or purchase of any land, material, supplies, or services to the city or to a contractor supplying the city, shall make that interest known to the City Manager in writing if the matter (contract, sale or purchase) involves administrative action by the city staff and shall make that interest known to the City Council in writing if such matter requires a decision by Council. Any such person shall refrain from voting upon or otherwise participating in such contract, sale, or purchase in his or her capacity as a municipal officer or employee.
(B) For the purposes of this section and under Charter Section 13.04, any municipal officer or employee shall be deemed to have a substantial financial interest in any contract, sale, or purchase to which the city is a party, if anyone or more of the following apply:
(1) Such officer or employee, a member of his or her family, or any of his or her business associates, have an interest in the profits or benefits of the contract, sale, or purchase or will be directly affected by the disposition of the contract, sale, or purchase.
(2) Such officer or employee, a member of his or her family, or any of his or her business associates, is, individually, a party to the contract, sale, or purchase, or is an officer, representative, or agent of the party to the contract, sale, or purchase.
(C) In the absence of bribery or a purpose to defraud, a municipal officer or employee shall not be considered as having an interest in any contract, sale, or purchase if subsections (1), (2), and (3) of this division (C) shall apply.
(1) The interest of such person is limited to owning or controlling shares of any other ownership interest in a corporation or other entity which is a party to the contract, sale, or purchase, or is limited to being a creditor of such a corporation or entity.
(2) The shares owned or controlled by such person or the ownership interest of such person do not exceed 5% of the outstanding shares or other ownership interests of the corporation or other entity, and the amount due such person as creditor does not exceed 5% of the total indebtedness of the corporation or other entity.
(3) Such person, prior to the time the public sale, purchase, or contract is entered into, files with the City Manager or City Council, in the manner referred to in division (A) of this section, an affidavit giving his or her exact status in connection with the corporation or other entity and setting forth the facts that establish his or her percentage interests as being within the 5% limit established by this section.
(4) The Municipal Attorney shall review any affidavit submitted pursuant to division (C)(3) and make a determination as to the percentage of interest held by such person and shall notify the city of such determination.
(D) Any municipal officer or employee who willfully conceals such a substantial financial interest or willfully violates the requirements of this section shall be guilty of malfeasance in office or position and shall forfeit that office or position. Violation of this section with the knowledge, express or implied, of the person or corporation contracting with or making a sale to the city shall render the contract or sale voidable by the Manager or the Council.
(E) Whoever violates this section shall be guilty of a misdemeanor of the first degree. This penalty shall be in addition to that which may be imposed pursuant to division (D) of this section.
(Admin. Code, § 121.05; Ord. 83-79, passed 8-8-83)