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A. Except as provided in subsection C of this section, a town officer or employee shall not hold a substantial financial interest in any business or enterprise which is a party to a contract made by such town official or employee in his or her official capacity, or by any governing body of which he or she is a member or he or she serves, when such official or employee exercises any substantial discretionary authority in connection with such contract.

B. Every contract made in violation of this section is voidable at the request of any party to the contract, except the town officer or employee interested in such contract.

C. Exceptions: Subsection A of this section does not apply to:

1. Contracts awarded to the lowest responsible bidder based on competitive bidding procedures;

2. Merchandise sold to the highest bidder at public auction;

3. Investments or deposits in financial institutions that are in the business of loaning or receiving monies;

4. A contract between the town and a town officer or employee if, because of geographic restrictions, the town could not otherwise reasonably afford itself of the subject of contract. It is presumed that the town could not otherwise reasonably afford itself of the subject of a contract if the additional cost to the town is greater than ten percent (10%) of a contract with a town officer or town employee, or if the contract is for services that will be performed within a limited time period and no other contractor can provide those services within that time period;

5. A contract awarded pursuant to a lottery, or other method when the person to whom the contract is awarded is selected by chance;

6. A contract obligating the town to pay five thousand dollars ($5,000.00) or less; or

7. A development agreement entered into pursuant to title 9, chapter 9 of this Code.

D. For a contract entered into pursuant to subsections C(1) through C(7) of this section, before the town enters into a contract with a member of the town council the town council member must disclose a personal interest in the proposed contract, and either:

1. The town council itself (and not the town manager or other town employee) approves the contract at a public meeting; or

2. The town manager approves the contract; provided, that prior to approving the contract the town manager must notify the town council of the proposed contract and explain how the proposed contract satisfies the requirements of subsections C(1) through C(7) of this section.

E. Any town officer or employee with a financial interest in a business entity involved in any transaction or contract with the town shall disclose such an interest and shall abstain from voting and/or officially acting thereon. In addition, such official or employee shall not personally attempt to influence other town officials or employees on the matter.

F. The prohibition on contracts with the town under subsection A of this section does not apply to contracts governing employment terms, conditions, compensation, and benefits, including benefits available as part of duly administered workforce housing programs or contracts to lease or acquire real property from the town for employee housing as defined in section 9-1-5 of this Code and/or as authorized under title 9, chapter 16 of this Code, Workforce Housing. (Ord. 24, Series 2014; amd. Ord. 35, Series 2020; Ord. 23, Series 2022)