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STANDARDS OF CONDUCT
§ 43.015 CONFLICT OF INTEREST IN GENERAL.
   Every officer and employee of the city shall comply with the following standards of conduct.
   (A)   No officer, board member, or employee, or any immediate family member of any officer, board member, or employee, shall have an interest in a business or engage in any business, transaction or activity which is in substantial conflict with the proper discharge of the officer’s, board member’s, or employee’s public duties.
   (B)   No officer, board member, or employee shall intentionally use or attempt to use his or her official position with the city to secure unwarranted privileges or advantages for himself, herself or others.
   (C)   No officer, board member, or employee shall intentionally take or refrain from taking any discretionary action or agree to take or refrain from taking any discretionary action or induce or attempt to induce any other officer, board member, or employee to take or refrain from taking any discretionary action on any matter before the city in order to obtain a financial benefit for any of the following:
      (1)   The officer, board member, or employee;
      (2)   A family member;
      (3)   An outside employer;
      (4)   Any business in which the officer, board member, or employee, or any family member has a financial interest, including but not limited to:
         (a)   An outside employer or business of his or hers, or his or her family member, or someone who works for such employer or business;
         (b)   A customer or client; or
         (c)   A substantial debtor or creditor of his or hers, or of his or her family member.
      (5)   A person or entity from whom the officer, board member, or employee has received an election campaign contribution of a total of more than $200 during the past election cycle (this amount includes contributions from a person's immediate family or business as well as contributions from an entity's owners, directors, or officers, as well as contributions to the officer, board member, or employee's party committee or non-candidate political committee);
      (6)   A nongovernmental civic group, social, charitable, or religious organization of which he or she, or his or her immediate family member is an officer or director;
      (7)   Any business with which the officer, board member, or employee or any family member is negotiating or seeking prospective employment or other business or professional relationship.
   (D)   No officer, board member, or employee shall be deemed in violation of any provision in this section if, by reason of the officer’s, board member’s, or employee’s participation, vote, decision, action or inaction, no financial benefit accrues to the officer, board member, or employee, a family member, an outside employer, or a business as defined in division (C)(4) and (C)(7) above, as a member of any business, occupation, profession or other group, to any greater extent than any gain could reasonably be expected to accrue to any other member of the business, occupation, profession or other group.
   (E)   Every officer, board member, or employee who has a prohibited financial interest which the officer, board member, or employee believes or has reason to believe may be affected by his or her participation, vote, decision or other action taken within the scope of his or her public duties shall disclose the precise nature and value of the interest, in writing, to the governing body of the city or city agency served by the officer, board member, or employee, and the disclosure shall be entered on the official record of the proceedings of the governing body. The officer, board member, or employee shall refrain from taking any action with respect to the matter that is the subject of the disclosure.
   (F)   No officer, board member, employee or contractor shall receive any money owed to the city without a formal written policy adopted by the executive branch of the city.
   (G)   An officer or employee must refrain from acting on or discussing, formally or informally, a matter before the city, if acting on the matter, or failing to act on the matter, may personally or financially benefit any of the persons or entities listed in division (C) above. Such an officer or employee should join the public if the withdrawal occurs at a public meeting or leave the room if it is a legally conducted closed meeting (executive session) under KRS 61.810 and 61.815.
   (H)   An officer, board member, or contractor with a conflict of interest must withdraw from discussion or vote at a meeting by public announcement, on the record, with reason for withdrawal.
(1996 Code, § 43.10) (Ord. 2048, passed 12-6-1994; Ord. 2507, passed 12-1-2020)
§ 43.016 CONFLICTS OF INTEREST IN CONTRACTS.
   No officer, board member, or employee of the city or any city agency shall directly or through others undertake, execute, hold or enjoy, in whole or in part, any contract made, entered into, awarded or granted by the city or a city agency, except as follows.
   (A)   The prohibition in this section shall not apply to contracts entered into before an elected officer filed as a candidate for city office, before an appointed officer was appointed to a city or city agency office, before a board member was appointed to a city board, or before an employee was hired by the city or a city agency. However, if any contract entered into by a city or city agency officer, employee, or board member before he or she became a candidate, became a board member, was appointed to office, or was hired as an employee, is renewable after he or she becomes a candidate, assumes the appointed office, or is hired as an employee, the prohibition in this section shall apply to the renewal of the contract.
   (B)   The prohibition in this section shall not apply if the contract is awarded after public notice and competitive bidding, unless the officer, board member, or employee is authorized to participate in establishing the contract specifications, awarding the contract, or managing contract performance after the contract is awarded. If the officer or employee has any of the authorities set forth in the preceding sentence, then the officer or employee shall have no interest in the contract, unless the requirements set forth in division (C) below are satisfied.
   (C)   The prohibition in this section shall not apply in any case where the following requirements are satisfied:
      (1)   The specific nature of the contract transaction and the nature of the officer’s, board member’s, or employee’s interest in the contract are publicly disclosed at a meeting of the governing body of the city or city agency;
      (2)   The disclosure is made a part of the official record of the governing body of the city or city agency before the contract is executed;
      (3)   A finding is made by the governing body of the city or city agency that the contract with the officer, board member, or employee is in the best interests of the public and the city or city agency because of price, limited supply or other specific reasons; or
      (4)   The finding is made a part of the official record of the governing body of the city or city agency before the contract is executed.
(1996 Code, § 43.11) (Ord. 2048, passed 12-6-1994; Ord. 2507, passed 12-1-2020) (Ord. 2048, passed 12-6-1994) Penalty, see § 43.999
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