[HISTORY: Adopted by the City Council of the City of Seward as indicated in article histories. Amendments noted where applicable.]
[Adopted as Ch. 1, Art. 10, § 1004, of the 1976 Code; amended 10-5-1982 by Ord. No. 29-82; 9-20-1983 by Ord. No. 23-83; 9-18-1984 by Ord. No. 34-84; 9-16-1986 by Ord. No. 13-86; 11-2-1993 by Ord. No. 44-93]
(Neb. RS 18-305 through 18-312, 49-14, 103.01 through 49-14, 103.03, 70-624.04)
As used in this article, the following terms shall have the meanings indicated:
- A. Means:
- B. Unless specified otherwise, volunteer firefighters and ambulance drivers shall not be considered officers for purposes of this article, with respect to their duties as firefighters and ambulance drivers.
No officer of the municipality shall be permitted to have an interest in any contract to which the municipality is a party. The existence of such an interest in any contract renders the contract voidable by decree of a court of competent jurisdiction as to any person who entered into the contract or took assignment thereof with actual knowledge of the prohibited conflict.
An action to have a contract declared void under this section may be brought by the municipality or by any resident thereof and must be brought within one year after the contract is signed or assigned. Any such decree may provide for the reimbursement of any person for the reasonable value of all money, goods, material, labor, or services furnished under the contract, to the extent that the municipality has benefitted thereby.
The prohibition in this section shall apply only when the officer or his or her parent, spouse, or child 1) has a business with which the individual is associated or business association, which shall mean a business: a) in which the individual is a partner, director, or officer or b) in which the individual or a member of the individual's immediate family is a stockholder of a closed corporation stock worth $1,000 or more at fair market value or which represents more than five-percent equity interest, or is a stockholder of publicly traded stock worth $10,000 or more at fair market value or which represents more than ten-percent equity interest or 2) will receive a direct pecuniary fee or commission as a result of the contract; provided, however, if such officer is an employee of the business involved in the contract and has no ownership interest or shall not receive a pecuniary fee, such officer shall not be deemed to have an interest within the meaning of this section.
The provisions of this article shall not apply if the contract is an agenda item approved at a board meeting and the interested officer:
Makes a declaration on the record to the governmental body responsible for approving the contract regarding the nature and extent of his or her interest, prior to official consideration of the contract;
Does not vote on the matters of granting the contract, making payments pursuant to the contract, or accepting performance of work under the contract, or similar matters relating to the contract, except that if the number of members of the board declaring an interest in the contract would prevent the board, with all members present, from securing a quorum on the issue, then all members may vote on the matter; and
Does not act for the municipality as to inspection or performance under the contract in which he or she has an interest.
The receiving of deposits, cashing of checks, and buying and selling of warrants and bonds of indebtedness of any municipality by a financial institution shall not be considered a contract under the provisions of this article. The ownership of less than 5% of the outstanding shares of a corporation shall not constitute an interest within the meaning of this article.
Notwithstanding the provisions of § 100-1.2 above, if an officer's parent, spouse or child is an employee of the municipality, the officer may vote on all issues of the contract which are generally applicable to all employees or all employees within a classification and do not single out his or her parent, spouse, or child for special action. If an officer has the power to employ personnel and he or she hires his or her parent, spouse, or child, such officer shall disclose the hiring pursuant to § 100-1.6 below, except that if the parent, spouse, or child is already employed in the position at the time the officer takes office and such position does not change, no disclosure need be made.
The Municipal Clerk shall maintain, separately from other records, a ledger containing the information listed in Subsections A(1) through (5) of this section about every contract entered into by the municipality in which disclosure is made as provided in § 100-1.2 above. Such information shall be kept in the ledger for five years from the date of the officer's last day in office and shall include the:
The information supplied relative to the contract shall be provided to the Clerk not later than 10 days after the contract has been signed by both parties. The ledger kept by the Clerk shall be available for public inspection during the normal working hours of the office in which it is kept.
An open account established for the benefit of any municipality or entity thereof, with a business in which an officer has an interest, shall be deemed a contract subject to the provisions of this article. The statement required to be filed pursuant to this article shall be filed within 10 days after such account is opened. Thereafter, the Clerk shall maintain a running account of all amounts purchased on the open account. Purchases made from petty cash or a petty cash fund shall not be subject to the provisions of this article.
Any officer who knowingly violates this article shall be guilty of a Class III misdemeanor. Any officer who negligently violates this article shall be guilty of a Class V misdemeanor.
Contracts involving $100 or less in which an officer of the municipality may have an interest are hereby exempted from the provisions of this article.
No officer, including volunteer firefighters and ambulance drivers, shall receive any pay or perquisites from the municipality other than his or her salary. The governing body shall not pay or appropriate any money or other valuable thing to pay a person who is not an officer for the performance of any act, service, or duty which shall come within the proper scope of the duties of any officer of the municipality. (Neb. RS 17-611)