HomeMy WebLinkAboutProhibited Interest Policy and Disclosure Form- revised
Purpose
The purpose of this Administrative Regulation is to provide a procedure for identifying contracts where City employees might have a conflict of interest prohibited by Iowa law.
Scope
This Regulation applies to all City employees.
Policy
Iowa law requires that a public employee have complete loyalty to the public when entering contracts on behalf of their employer. City employees therefore must follow Iowa’s conflict
of interest laws when entering contracts on behalf of the City of Iowa City.
Iowa Code section 362.5 says that City employees shall not have a direct or indirect interest in any contract, job, or sale that is entered into, or services that are performed, for
the City. Contracts made in violation of this prohibition are void unless certain exceptions apply.
Exceptions include:
The payment of lawful compensation of a City employee holding more than one (1) City office or position, the holding of which is not incompatible with another public office or is not
prohibited by law.
The designation of a bank or trust company as a depository, paying agent, or for investment of funds.
An employee of a bank or trust company, who serves as treasurer of a City.
Contracts made by a city, upon competitive bid in writing, publicly invited and opened.
Contracts in which a City officer or employee has an interest solely by reason of employment, or a stock interest of the kind described in paragraph “i”, or both, if the contracts are
made by competitive bid in writing, publicly invited and opened, or if the remuneration of employment will not be directly affected as a result of the contract and the duties of employment
do not directly involve the procurement or preparation of any part of the contract. The competitive bid qualification of this paragraph does not apply to a contract for professional
services not customarily awarded by competitive bid.
The designation of an official newspaper.
A contract in which a City employee has an interest if the contract was made before the time the employee was hired, but the contract may not be renewed.
Contracts with volunteer fire fighters or civil defense volunteers.
A contract with a corporation in which a city officer or employee has an interest by reason of stockholdings when less than five percent (5%) of the outstanding stock of the corporation
is owned or controlled directly or indirectly by the officer or employee or the spouse or immediate family of such employee.
Franchise agreements between a city and a utility and contracts entered into by a city for the provision of essential city utility services.
A contract that is a bond, note, or other obligation of the city and the contract is not acquired directly from the city, but is acquired in a transaction with a third party who may
or may not be the original underwriter, purchaser, or oblige of the contract.
A City employee has a direct interest in a contract when either (1) the City employee will provide the goods or services, or (2) the City employee has an employment interest or an ownership
interest in the business providing the good or service to the City.
A City employee has an indirect interest in a contract when the employee’s:
- Spouse, Domestic Partner, or person eligible to be a Domestic Partner under Iowa City Code 2-6-2, as amended
-Unemancipated child, or
-Parent, if the employee is an unemancipated child,
Will either (1) provide the goods or services, or (2) has an employment interest or ownership interest in the business providing the goods or services to the City.
Responsibility
Employees are responsible for keeping the City informed of potential conflicts. To do so, Division Heads shall collect completed Prohibited Contracts Questionnaires from current employees.
These forms may be completed via the City’s online system. All new employees shall complete a Prohibited Contracts Questionnaire form upon hire. An employee shall update the Prohibited
Contracts Questionnaire when a change occurs. The Prohibited Contracts Questionnaire will be used to compile a Restricted Vendor List.
When a City employee enters a contract, the employee making the purchase shall check the Restricted Vendor List. If a potential conflict is identified, the employee making the purchase
will notify the Purchasing Division, who will consult with the City Attorney’s Office as necessary.
Regulation Update
The City Attorney is responsible for updates to this Regulation.
Geoff Fruin
City Manager
Prohibited Contracts Questionnaire
Employee:_______________________________ Date: _______________________
Iowa Code § 362.5 provides that “A city officer or employee shall not have an interest, direct or indirect, in any contract or job of work or material or the profits thereof or services
to be furnished or performed for the officer’s or employee’s city. A contract entered into in violation of this section is void.”
This prohibition also applies to a spouse and dependent children of a city officer or employee.
I have read and understand the City’s Administrative Regulation on Prohibited Contracts.
Yes No
Please identify any potential conflicts between membership on the advisory board and your personal interests, including financial interests and your duties to an employer. List all
businesses in which you or your spouse/domestic partner, have an ownership interest (for example, sole proprietor, partner, 5% or more of corporation’s stockholdings).
Please identify any potential conflicts between membership on the advisory board and your personal interests, including financial interests and your duties to an employer. List all
businesses in which you or your spouse/domestic partner, have an ownership interest (for example, sole proprietor, partner, 5% or more of corporation’s stockholdings). Please identify
any potential conflicts between membership on the advisory board and your personal interests, including financial interests and your duties to an employer. List all businesses in which
you or your spouse/domestic partner, have an ownership interest (for example, sole proprietor, partner, 5% or more of corporation’s stockholdings).
Please identify any potential conflicts between your duty of loyalty as an employee of the City and your personal interests, including your financial interests in or duties to another
employer. List all businesses in which you, your spouse/domestic partner, parent (if you are a dependent child), or dependent child have an ownership interest. Examples of ownership
interests include sole proprietors, partners, and 5% or more of corporation’s stockholdings.
Business Name Business Address
___________________________
Employee Signature
Administrative Regulations
City of Iowa City
Title: Prohibited Contracts
Effective Date: 12/17 Page: 1 of 4
Supersedes: 10/16 A.R.
Titled: Prohibited Contracts
Last Updated 11/30/17