§ 30.01  PECUNIARY INTEREST IN CONTRACTS; PROHIBITIONS.
   (A)   No municipal officer shall be interested, directly or indirectly, in his or her own name or in the name of any other person, association, trust or corporation, in any contract, work or business of the municipality, or in the sale of any article, whenever the expense, price or consideration of the contract, work, business or sale is paid either from the treasury or by any assessment levied by any statute or ordinance. No municipal officer shall be interested, directly or indirectly, in the purchase of any property which:
      (1)   Belongs to the municipality;
      (2)   Is sold for taxes or assessments; or
      (3)   Is sold by virtue or legal process at the suit of the municipality.
   (B)   However, any elected or appointed member of the governing body may provide materials, merchandise, property, services or labor, if:
      (1)   The contract is with a person, firm, partnership, association, corporation or cooperative association in which the interested member of the governing body of the municipality has less than a 7.5% share in the ownership;
      (2)   The interested member publicly discloses the nature and extent of his or her interest prior to or during deliberations concerning the proposed award of the contract;
      (3)   The interested member abstains from voting on the award of the contract, though he or she shall be considered present for the purposes of establishing a quorum;
      (4)   The contract is approved by a majority vote of those members presently holding office;
      (5)   The contract is awarded after sealed bids to the lowest responsible bidder if the amount of the contract exceeds $1,500, but the contract may be awarded without bidding if the amount is less than $1,500; 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 $25,000.
   (C)   In addition to the above exemption, any elected or appointed member of the governing body may provide materials, merchandise, property, service or labor if:
      (1)   The award of the contract is approved by a majority vote of the governing body of the municipality provided that any interested member shall abstain from voting;
      (2)   The amount of the contract does not exceed $250;
      (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 $500;
      (4)   The interested member publicly discloses the nature and extent of his or her interest prior to 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 he or she shall be considered present for the purposes of establishing a quorum.
   (D)   A contract for the procurement of public utility services by a municipality with a public utility company is not barred by this section by one or more members of the governing body being an officer or employee of the public utility company or holding an ownership interest of no more than 7.5% in the public utility company. An elected or appointed member of the governing body having that interest shall be deemed not to have a prohibited interest under this section.
   (E)   Nothing contained in this section shall preclude a contract of deposit of moneys, loans or other financial services by a municipality with a local bank or local savings and loan association, regardless of whether a member or members of the governing body of the municipality are interested in the bank or savings and loan association as an officer or employee or as a holder of less than 5% of the total ownership interest. A member or members holding a pecuniary interest in a contract shall not be deemed to be holding a prohibited interest for purposes of this section. The interested member or members of the governing body must publicly state the nature and extent of their pecuniary interest during deliberations concerning the proposed award of a contract, but shall not participate in any further deliberations concerning the proposed award. The interested member or members shall not vote on a proposed award. Any member or members abstaining from participation in deliberations and voting under this section may be considered present for purposes of establishing a quorum. Consideration and award of any contract in which a member or members are interested may only be made at a regularly scheduled public meeting of the governing body of the municipality.
(1986 Code, § 2.02.010)  Penalty, see § 30.99