§ 2-231. Prohibited interests in contracts.

(a)

Contractual interests. No officer or employee of the city shall have a financial interest, direct or indirect, in any contract with the city, or shall be financially interested, directly or indirectly, in the sale to the city of any land, materials, supplies, or service, except on behalf of the city as an officer or employee without first disclosing said interest to council and obtaining council's approval to enter into said contract. Any willful violation of this section shall constitute malfeasance in office, and any officer or employee guilty thereof shall thereby forfeit his office or position. Any violation of this section, with the knowledge, expressed or implied, of the person or corporation contracting with the council shall render the contract involved voidable by the council. Under no circumstances should this section cause an undue hardship on the city's ability to enter into contracts or purchase land, materials, supplies, or services.

(b)

Financial interest. An officer or employee has a prohibited "financial interest" in a contract with the city, or in the sale to the city of land, materials, supplies, or service, if any of the following individuals or entities is a party to the contract or sale:

(1)

The officer or employee;

(2)

His or her parent, child, or spouse;

(3)

A business entity in which the officer or employee 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, or fifteen thousand dollars ($15,000.00) or more, of the fair market value of the business entity; or

(4)

A business entity of which any individual or entity listed in subsection (1) or (3) is:

(A)

A subcontractor on a city contract; or

(B)

An affiliated business or partner.

(c)

Definitions. For purposes of enforcement:

(1)

A city "employee" is any employee of the city who is required to file a financial disclosure statement pursuant to subdivision G.

(2)

A city "officer" is:

(A)

The mayor or any council member;

(B)

A municipal judge or magistrate; or

(C)

A member of any board or commission which is more than advisory in function. The term does not include members of the board of another governmental entity even if some or all of these members are appointed by the city.

(Ord. No. 06-22, § 1(part B, § 11), 9-5-2006)