§ 2-324. Prohibited interests in contracts.

(a)

No city official or employee shall have a direct or indirect financial interest in any contract, purchase or sale with the city.

(b)

Any willful violation of this section by a city official or employee shall constitute malfeasance in office, and any city official or employee who is found guilty hereof, shall forfeit his or her position with the city. Any knowing violation of this section, express or implied, by an individual or entity contracting with the city, shall further render the contract at issue voidable at the discretion of the city manager or city council.

(c)

Financial interest. For purposes of subsection 2-316(a), a city official or employee is presumed to have a prohibited financial interest if any one (1) of the following is a party to that contract, purchase or sale with the city:

(1)

A city official or employee that has the power or duty to exercise authority over that contract, purchase or sale, by negotiating, preparing, authorizing or approving the contract, by authorizing or approving payment under the contract, by auditing bills or claims under the contract, or by appointing anyone with said powers or duties.

(2)

A spouse, sibling, parent, child or other family member related within the third degree of consanguinity or second degree of affinity to a city official or employee prohibited in subsection (c)(1) above.

(3)

A business entity in which a city official or city employee prohibited by subsection (c)(1) above, or their spouse, sibling, parent, child or other family member related within the third degree of consanguinity or second degree of affinity, directly or indirectly owns:

a.

Ten (10) percent or more of the voting stock or shares of the business entity; or

b.

Ten (10) percent or more of the fair market value of the business entity.

(4)

A business in which an individual or entity prohibited by subsection (c)(1), (2) or (3) above is:

a.

A subcontractor;

b.

A partner; or

c.

A parent or subsidiary company.

(d)

Exceptions. A city official or employee may apply to the city council for a determination on whether any of the following exceptions exist to a prohibited financial interest in a contract, purchase or sale with the city:

(1)

The contract, purchase or sale with the city was in effect prior to the election or appointment of the city official or employee. In this case, the city official or employee does not have a prohibited financial interest and the contract, purchase or sale in question shall be allowed to continue through completion.

(2)

Despite the potential or existence of a prohibited financial interest, the contract shall be allowed as the bidder is the sole source provider.

(3)

Despite the potential or existence of a prohibited financial interest in a contract with the city, the contract shall be allowed as the bidder submitted the lowest responsive bid, and it is deemed to best serve the interest of the city.

(Ord. No. 2012-O-126, § 2(2.09), 9-4-12; Ord. No. 2013-O-102, § 2, 8-5-13)