(A) For purposes of this section, OFFICER shall mean any member of any board or commission of the city; or any appointed official if such official:
(1) Serves on a board or commission which spends and administers its own funds; and
(2) Is dealing with a contract made by such board or commission or any elected city official.
(B) Unless specified otherwise, volunteer firefighters and ambulance drivers shall not be considered officers for purposes of this section, with respect to their duties as firefighters and ambulance drivers.
(1) No officer or employee of the city, a member of that individual’s immediate family, or business with which the individual is associated shall entered into a contract valued at $2,000 or more in any one year with the city, unless the contract is awarded through an open and public process which includes prior public notice and subsequent availability for public inspection during regular office hours at the City Clerk’s office. No contract may be divided for the purpose of evading the requirement of this section. This section shall not apply to a contract when a public official or employee does not in any way represent either party to the transaction. Except as hereafter provided, no officer of the city may have an interest in any contract to which the city or anyone for its benefit is a party. The existence of such an interest in any contract shall render the contract voidable by a decree of a court of competent jurisdiction as to any person who entered into the contract or took assignment of such contract with actual knowledge of the prohibited conflict.
(2) The provisions in division (B)(1) above shall not apply if the interested officer:
(a) Makes a declaration on the record to the City Council regarding the nature and extent of his or her interest prior to official consideration of the contract;
(b) Does not vote on the matter of granting the contract, except that if the number of members of the City Council declaring an interest in the contract would prevent the Council with all members present from securing a quorum on the issue, then all members may vote on the matter; and
(c) Does not act for the city which is party to the contract as to inspection or performance under the contract in which he or she has an interest.
(3) An officer who will not receive a direct pecuniary fee or commission as a result of the contract shall not be deemed to have an interest within the meaning of this section.
(4) The receiving of deposits, cashing of checks and buying and selling of warrants and bonds of indebtedness of the city by a financial institution shall not be considered a contract for purposes of this section. The ownership of less than 5% of the outstanding shares of a corporation shall not constitute an interest within the meaning of this section.
(5) If an officer’s parent, spouse or child is an employee of the city, such officer may vote on all issues of the contract which are generally applicable to all employees or all employees within a classification and do not single out his or her parent, spouse or child for special action.
(6) Any contract entered into with an interested officer or employee of the city shall be subject to applicable competitive bidding requirements and shall be fair and reasonable to the governing body.
(7) (a) The City Clerk shall maintain, separately from other records, a record containing the information required below about every contract entered into by the city in which an officer has an interest as specified above for which disclosure is made pursuant to Neb. RS 49-1401 et seq. or 49-14,103.01. Such information shall be kept in the record for five years from the date of the officer’s last day in office and shall include the:
1. Names of the contracting parties;
2. Nature of the interest of the officer in question;
3. Date that the contract was approved by the city involved;
4. Amount of the contract; and
5. Basic terms of the contract.
(b) The information supplied relative to the contract shall be provided to the Clerk not later than ten days after the contract has been signed by both parties. The record kept by the Clerk shall be available for public inspection during the normal working hours of the office in which it is kept.
(8) An open account established for the benefit of the city with a business in which an officer has an interest, shall be deemed a contract subject to the provisions of this section. The statement required to be filed pursuant to division (B)(7) above shall be filed within ten days after such account is opened. Thereafter, the City Clerk shall maintain a running account of all amounts purchased on the open account. Purchases made from petty cash or a petty cash fund shall not be subject to requirement.
(9) Any officer who knowingly violates any of the provisions herein shall be guilty of a Class III misdemeanor and shall be punished accordingly. Any officer who negligently violates any of the provisions herein shall be guilty of a Class V misdemeanor and punished accordingly.