Sec. 2-668. Prohibitions.
(a) Interests in contracts. City officers and employees shall not be interested in any contract made by them in their official capacity or by any body, agency, or board of the city of which they are members or employees. Within six months following the termination of his or her employment or retirement, a former employee may not contract with or be employed by an employer who contracts with the city involving matters with which he or she was directly involved during his or her employment.
(b) Definitions. The following words, terms and phrases, when used in this section, shall have the meanings ascribed to them in this subsection, except where the context clearly indicates a different meaning:
Be interested in includes a financial interest held by an individual which is:
1. An ownership interest in a business;
2. A creditor interest in an insolvent business;
3. An employment or prospective employment for which negotiations have begun;
4. An ownership interest in real or personal property;
5. A loan or other debtor interest; or
6. A directorship or officership in a business.
The term "be interested in" does not include holding a minority interest in a corporation.
Business means a corporation, partnership, sole proprietorship, trust or foundation or any other individual or organization carrying on a business, whether or not operated for profit.
City officer means an elected or appointed officer of the city but does not include an employee.
Compensation means any money, thing of value, or economic benefit conferred on or received by any person in return for services rendered or to be rendered by himself or herself or another.
Contract does not include:
1. Contracts awarded to the lowest responsible bidder based on competitive bidding procedures.
2. Merchandise sold to the highest bidder at public auctions.
3. Investments or deposits in financial institutions which are in the business of loaning or receiving monies.
4. A contract with an interested party if, because of geographic restrictions, the city could not otherwise reasonably afford itself of the subject of the contract. It shall be presumed that the city could not otherwise reasonably afford itself of the subject of a contract if the additional cost to the city of using a noninterested party is greater than 10 percent of a contract with an interested party or if the contract is for services that must be performed within a limited time period and no other contractor can provide those services within that time period.
5. A contract with respect to which any city officer or employee has disclosed a personal interest and has not voted thereon and which appropriate approving body or person has approved in accordance with subsection (f) of this section. All disclosures shall be made in writing to the appropriate approving body or person.
Employee means any temporary or permanent employee of the city, except an employee under contract to the city.
Official act or official action means a vote, decision, recommendation, approval, disapproval or other action, including inaction, which involves the use of discretionary authority.
(c) Interest in sales or purchases. City officers and employees shall not be purchasers at any sale or vendors at any purchase made or authorized by them in their official capacity.
(d) Voidable contracts. Every contract made in violation of subsections (a), (b) and (c) of this section shall be voidable at the instance of any party to the contract, except the officer or employee interested therein.
(e) Dealings in warrants and other claims prohibited. City officers, their deputies and clerks are prohibited from purchasing or selling or in any manner receiving to their own use or benefit or to the use or benefit of any person whatever any state, county, city and county, city or town warrants, scrip, orders, demands, claims or other evidences of indebtedness against the state or any county, city and county, town or city thereof, except evidences of indebtedness issued to or held by them for services rendered as a member of city council and evidences of the funded indebtedness of such state, county, city and county, city or town.
(f) Disclosure. A city officer or employee who has an interest in any contract with the city shall disclose such interest to the appropriate approving body or person who approves the contract pursuant to section 2-672 and shall refrain from attempting to influence the approval of the contract. If the disclosed interest is with a city councilmember, he or she shall not vote thereon. The contract shall be approved pursuant to the award limits of section 2-672. The city council may authorize any contract upon finding a compelling reason despite any provision of subsections (a) and (b) of this section.
(g) Withholding of settlements. The following procedure shall be followed if it is believed an officer of the city or employee has violated any provision of this section:
(1) The city attorney, upon being informed by affidavit establishing probable cause that any city officer or employee has violated any of the provisions of this section, shall recommend to the director of finance that settlement or payment be ceased. The city attorney shall report such officer or employee to the district attorney of the appropriate jurisdiction for investigation for the purpose of prosecution. During the district attorney's investigation, action may be taken against the officer or employee pursuant to city council rules or the city's personnel policies and procedures.
(h) Gifts or rebates. Every city officer and employee is expressly prohibited from seeking or accepting, directly or indirectly, from any person to which any purchase order or contract is awarded or any request for bids or proposals currently under processing by the city, any rebate, gift or money, except as provided for in the city's personnel policies and procedures manual or given for the use and benefit of the city as approved by the city manager or his or her designee.
(i) Standards of conduct. Every city officer and employee is expressly prohibited from knowingly:
(1) Underestimating or exaggerating requirements to certain prospective bidders for the purpose of influencing bids.
(2) Misrepresenting competitor's prices, quality, or service to obtain concessions.
(j) Unauthorized purchases. Except as provided in this section, it shall be prohibited for any city employee to order the purchase of any supplies or make any contract within the purview of this article other than through the purchasing and contract services division and persons violating this provision shall be subject to disciplinary action. This shall not serve as the basis for civil liability of the city or any of its officers or employees. (Code 1979, § 2-184; Ord. No. 2023-08, § 1, 4-10-2023)