A. Public Officials And Officers:
1. A public official or officer shall not be financially interested, directly in the official's or officer's own name or indirectly in the name of any other person, association, trust, or corporation, in any contract, work, or business of the city or in the sale of any article whenever the expense, price, or consideration of the contract, work, business, or sale is paid either from funds of the city or by an assessment levied by statute or ordinance. A public official or officer shall not be interested, directly or indirectly, in the purchase of any property that: a) belongs to the city; b) is sold for taxes or assessments; or c) is sold by virtue of legal process at the suit of the city. For purposes of this section only, however, a public official or officer shall not be deemed interested if the official or officer is an employee of a company or owns or holds an interest of one percent (1%) or less in the public official's or officer's individual name in a company, or both, that company is involved in the transaction of business with the city, and that company's stock is traded on a nationally recognized securities market, provided the interested member: a) publicly discloses the fact that he/she is an employee or holds an interest of one percent (1%) or less in a company before deliberation of the proposed award of the contract; b) refrains from evaluating, recommending, approving, deliberating, or otherwise participating in the negotiation, approval, or both, of the contract, work, or business; c) abstains from voting on the award of the contract though he/she shall be considered present for purposes of establishing a quorum; and d) the contract is approved by a majority vote of those council members present.
2. A public official or officer shall not be deemed interested if the official or officer owns or holds an interest of one percent (1%) or less, not in the official's or officer's individual name, but through a mutual fund in a company, that company is involved in the transaction of business with the city, and that company's stock is traded on a nationally recognized securities market.
3. This section does not prohibit any person serving on a municipal advisory panel or commission or nongoverning board or commission from having an interest in a contract, work, or business for the city unless the person's duties include evaluating, recommending, approving, or voting to recommend or approve the contract, work, or business.
B. Public Officials:
1. A public official may provide materials, merchandise, property, services, or labor, subject to the following provisions under either subsection B1a or B1b of this section if:
a. (1) The contract is with a person, firm, partnership, association, corporation, or cooperative association in which the interested public official member has less than a seven and one- half percent (71/2%) share in the ownership; and
(2) The interested member publicly discloses the nature and extent of the interest before or during deliberations concerning the proposed award of the contract; and
(3) The interested member abstains from voting on the award of the contract (though the member shall be considered present for the purposes of establishing a quorum); and
(4) The contract is approved by a majority vote of those council members present; and
(5) The contract is awarded after sealed bids to the lowest responsible bidder if the amount of the contract exceeds one thousand five hundred dollars ($1,500.00) (but the contract may be awarded without bidding if the amount is less than $1,500.00); and
(6) The award of the contract would not cause the aggregate amount of all contracts so awarded to the same person, firm, association, partnership, corporation, or cooperative association in the same fiscal year to exceed twenty five thousand dollars ($25,000.00).
b. (1) The award of the contract is approved by a majority vote of those council members present; and
(2) The amount of the contract does not exceed two thousand dollars ($2,000.00); and
(3) The award of the contract would not cause the aggregate amount of all contracts so awarded to the same person, firm, association, partnership, corporation, or cooperative association in the same fiscal year to exceed four thousand dollars ($4,000.00); and
(4) The interested member publicly discloses the nature and extent of his interest before or during deliberations concerning the proposed award of the contract; and
(5) The interested member abstains from voting on the award of the contract (though the member shall be considered present for the purposes of establishing a quorum).
2. In addition to the above exceptions, any city council member may provide materials, merchandise, property, services, or labor if:
a. The contract is with a person, firm, partnership, association, corporation, or cooperative association in which the interested member of the city council has less than a one percent (1%) share in the ownership; and
b. The award of the contract is approved by a majority vote of those council members present; and
c. Such interested member publicly discloses the nature and extent of his interest before or during deliberations concerning the proposed award of the contract; and
d. Such interested member abstains from voting on the award of the contract, though he shall be considered present for the purposes of establishing a quorum.
3. A contract for the procurement of public utility services by the city with a public utility company is not barred by this section by one or more public officials being an officer or employee of the public utility company, or holding an ownership interest in no more than seven and one-half percent (7.5%) in the public utility company. A public official having an interest described in this subsection does not have a prohibited interest under this section.
4. Nothing contained in this section, including the restrictions set forth in subsections B1b(2) through B1b(4) of this section, shall preclude a contract or deposit of monies, loans, or other financial services by the city with a local bank or local savings and loan association, regardless of whether a member of the city council is interested in the bank or savings and loan association as an officer or employee or as a holder of less than seven and one-half percent (7.5%) of the total ownership interest. A member holding an interest described in this subsection B4 in a contract does not hold a prohibited interest for purposes of this chapter. The interested city council member must publicly state the nature and extent of the interest during deliberations concerning the proposed award of the contract but shall not participate in any further deliberations concerning the proposed award. The interested member shall not vote on the proposed award. A member abstaining from participation in deliberations and voting under this section may be considered present for purposes of establishing a quorum. Award of the contract shall require approval by a majority vote of those council members present. Consideration and award of a contract in which a member is interested may only be made at a regularly scheduled public meeting of the city council. (Ord. 2005-46)
5. Under either of the following circumstances, a city council member may hold a position on the board of a not for profit corporation that is interested in a contract, work, or business of the municipality.
a. If the city council member is appointed by the governing body of the municipality to represent the interests of the municipality on a not for profit corporation's board, then the city council member may actively vote on matters involving either that board or the municipality, at any time, so long as the membership on the not for profit board is not a paid position, except that the city council member may be reimbursed by the not for profit board for expenses incurred as the result of membership on the not for profit board.
b. If the city council member is not appointed to the governing body of a not for profit corporation by the governing body of the municipality, then the city council member may continue to serve; however, the city council member shall abstain from voting on any proposition before the municipal governing body directly involving the not for profit corporation and, for those matters, shall not be counted as present for the purposes of a quorum of the municipal governing body. (Ord. 2012-17)
C. Employees:
1. Employees other than public officials or officers, who have a substantial interest, direct or indirect, or by the reason of ownership of stock in any corporation, in any contract with the city, or in the sale of land, materials, supplies, or services to the city, or to a contractor supplying the city, shall make known that interest prior to the time any binding agreement is entered into between the individual or entity in which the employee has such interest and the city. Any such employee of the city who wilfully conceals such a substantial financial interest or wilfully violates the requirements of this section shall be guilty of malfeasance in office or position and shall forfeit his office or position. Violation of this section with the knowledge expressed or implied of the person or corporation contracting with or making the sale to the city shall render the contract or sale voidable by either the city manager or the city council.
2. For the purpose of this subsection C, an employee is imputed to have a substantial financial interest in a corporation in which he or his spouse, son, daughter, brother, sister, father, or mother owns five percent (5%) or more of the outstanding stock of any corporation. Further, any employee is imputed to have a substantial financial interest in the sale of any land, materials, supplies, or services to the city if said employee, his spouse, son, daughter, brother, sister, father, or mother has any ownership in the land, legal or equitable, or in the business entity which is selling the land, materials, supplies, or services to the city, in excess of five percent (5%).
D. Disclosure Of Interest: Any public official, officer or employee who holds an interest as described in this section shall disclose the existence of such interest in a written, sworn statement filed with the city manager on or before April 1 of each year. (Ord. 2005-46)