Government : Iowa Law, reading, understanding, and clarifying...hopefully

In the past weeks, several citizens have expressed opinions about the City of Vinton contracts awarded to Boomerang Corp. The company website shows Vinton’s Mayor, Bud Maynard, as their Project Manager. According to City Administrator, Chris Ward, the Mayor is one of three Project Managers at Boomerang, however, the Vinton project is the responsibility of another of the Project Managers, Cory Elwick. (Definition: A Project Manager is a professional in the field of project management. Project managers have the responsibility of the planning, procurement and execution of a project, in any undertaking that has a defined scope, defined start and a defined finish; regardless of industry.)

In a letter to the editor entitled, "Hint of Impropriety" Ellen Bates shared a section of Iowa Code 362.5, entitled "Interest in public contract prohibited - exceptions." 

As you might have already anticipated, it takes more than one, two or even three readings to understand. This section while it appears to spell out the law, it is spelling out the EXCEPTIONS to the law.

At the top of the page, it includes these two paragraphs setting up the section.

"When used in this section, "contract" means any claim, account, or demand against or agreement with a city, express or implied.

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. The provisions of this section do not apply to:

1.  The payment of lawful compensation of a city officer or employee holding more than one city office or position, the holding of which is not incompatible with another public office or is not prohibited by law.

2.  The designation of a bank or trust company as a depository, paying agent, or for investment of funds.

3.  An employee of a bank or trust company, who serves as treasurer of a city.

4.  Contracts made by a city, upon competitive bid in writing, publicly invited and opened.

5.  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 subsection 9, or both, if the contract is for professional services not customarily awarded by competitive bid, if the remuneration of employment will not be directly affected as a result of the contract, and if the duties of employment do not directly involve the procurement or preparation of any part of the contract."

On Friday, city officials posted a notice on the city hall bulletin board, that a special City Council meeting would be held on Monday, April 19th to consider four change orders increasing the cost of the Boomerang project. Mayor Pro-Tem, Tami Stark will oversee this meeting. Ward explained that when this happens, it's because something spelled out in the original contract pops up to change the cost of the project. In this case, Boomerang needs to install additional water mains, pavement, manhole, sewer work as well as add additional storm sewers as well as other changes.