G53-91 1
tow Ordinance No. G53-91
AN ORDINANCE
AMENDING THE ELGIN MUNICIPAL CODE, 1976, AS AMENDED,
BY ADDING CHAPTER 2 . 88 TO PROVIDE FOR A
CODE OF STANDARDS FOR MUNICIPAL CONTRACTS
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS:
Section 1 . That the Elgin Municipal Code, 1976 as
amended, be and is further amended by adding Chapter 2 . 88
entitled "Pecuniary Interests in Contracts" as follows :
Chapter 2 . 88
Pecuniary Interests in Contracts
2 .88 . 010 Prohibition.
No municipal officer or employee shall be
interested, directly or indirectly, in his own name
or in the name of any other person, association,
trust or corporation, in any contract, work or
business of the municipality, or in the sale of any
article, whenever the expense, price or
emk consideration of the contract, work, business or
sale is paid either from the treasury or by any
assessment levied by any statute or ordinance. No
municipal officer or an employee shall be
interested, directly or indirectly, in the purchase
of any property which ( 1) belongs to the
municipality, or (2) is sold for taxes or
assessments, or (3) is sold by virtue of legal
process at the suit of the municipality.
2 .88 . 020 Exemption relating to percentage of owner-
ship interest.
Any elected or appointed member of the
governing body or employee may provide materials,
merchandise, property, services or labor, if:
A. the contract is with a person, firm,
partnership, association, corporation or cooperative
association in which such interested member of the
governing body or employee of the municipality has
less than a 71% share in the ownership; and
B. such interested member or employee publicly
discloses the nature and extent of his interest
prior to or during deliberations concerning the
proposed award of the contract; and
,.
0010. C. the interested member abstains from voting
on the award of the contract, through he shall be
considered present for the purposes of establishing
a quorum; and
D. such contract is approved by a majority
vote of those members presently holding office; and
E. the contract is awarded after sealed bids
to the lowest responsible bidder if the amount of
the contract exceeds $1,500, but the contract may be
awarded without bidding if the amount is less than
$1,500; and
F. the award of the contract would not cause
the aggregate amount of all such contracts so
awarded to the same person, firm, association,
partnership, corporation, or cooperative association
in the same fiscal year to exceed $25,000 .
2 .88 . 030 Exemption relating to monetary amount of
contract.
In addition to the above exemption, any elected
or appointed member of the governing body or
employee may provide materials, merchandise,
property, services or labor if:
A. the award of the contract is approved by a
majority vote of the governing body of the
municipality provided that such interested member
shall abstain from voting; and
B. the amount of the contract does not exceed
$2,000; and
C. the award of the contract would not cause
the aggregate amount of all such contracts so
awarded to the same person, firm, association,
partnership, corporation, or cooperative association
in the same fiscal year to exceed $4, 000; and
D. such interested member or employee publicly
discloses the nature and extent of his interest
prior to or during deliberations concerning the
proposed award of the contract; and
E. the interested member or employee publicly
discloses the nature and extent of his interest
prior to or during deliberations concerning the
eft. proposed award of the contract.
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2 . 88 .040 Exemption relating to interests in public
utility companies .
A contract for procurement of public utility
services by a municipality with a public utility
company is not barred by this Section by one or more
members of the governing body or an employee being
an officer or employee of the public utility company
or holding an ownership interest of no more than 71%
in the public utility company. An elected or
appointed member of the governing body or an
employee having such an interest shall be deemed not
to have a prohibited interest under this Section.
2 .88 .050 Exemptions relating to interests in
financial services.
Nothing contained in this Section, including
the restrictions set forth in subsections (b) , (c)
and (d) , shall preclude a contract of deposit of
monies, loans or other financial services by a
municipality with a local bank or local savings and
loan association, regardless of whether a member or
members of the governing body of the municipality
tow are interested in such bank or savings and loan
association as an officer or employee or as a holder
of less than 71% of the total ownership interest. A
member or members holding such an interest in such a
contract shall not be deemed to be holding a
prohibited interest for purposes of this Act. Such
interested member or members of the governing body
must publicly state the nature and extent of their
interest during deliberations concerning the
proposed award of such a contract, but shall not
participate in any further deliberations concerning
the proposed award. Such interested member or
members shall not vote on such a proposed award.
Any member or members abstaining from participation
in deliberations and voting under this Section may
be considered present for purposes of establishing a
quorum. Award of such a contract shall require
approval by a majority vote of those members
presently holding office. Consideration and award
of such contract in which a member or members are
interested may only be made at a regularly scheduled
public meeting of the governing body of the
municipality.
Section 2 . That all ordinances or parts thereof in
ePs. conflict with this ordinance are repealed.
Section 3 . That this ordinance shall be in full force
and effect from and after ten days after its passage and
publication in the manner provided by law. '
George nDeVoorde, Mayor
Presented: August 14, 1991
Passed: August 14, 1991
Vote: Yeas 6 Nays 0
Recorded:
Published:
Attest:
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Dolonna Mecum, City Clerk
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