Can a city officer or city employee contract with the city?

Can a city officer or city employee contract with the city?

Pursuant to KRS 61.252, no officer or city employee shall be interested in any contract with the city or city agency.  However some contracts are allowable expressly by statute:

1. Contracts awarded before an employee was hired, or before an officer filed as a candidate for office or was appointed.  However, this exception does not apply to contract renewals after hire, election, or appointment, unless the city complies with the requirements discussed in paragraph (3) below.

2. Contracts awarded after public notice and competitive bidding.  However, the exception does not apply if the employee or officer was authorized to participate in establishing contract speculations, or awarding or managing the contract, speculations, or awarding or managing the contract, unless the city complies with the requirements discussed in paragraph (3) below.

3. Contracts made pursuant to the disclosure procedure required by KRS 61.252(1)(c):

a. The specific nature of the contract transaction and the nature of the employee’s or officer’s interest in the contract are disclosed at a public meeting of the governing body of the city or city agency;

b. A finding is made by the governing body of the city or city agency that the contract with the officer or employee is in the best interests of the public and the city or city agency because of price, supply, or other specific reasons; and

c. The disclosure and finding are made a part of the official record of the governing body of the city or city agency before the contract is executed.

 See Chapter 18 of the 2015 City Officials Legal Handbook for a full discussion on this matter, including exceptions.