Penalties Relating to Contracts

This is the place to discuss penalties involving contracts. There are two in the Model Code: automatic voiding of contracts upon a finding of a violation of the Code, and debarment of persons and entities from entering into other contracts with the municipality after violating the Code.

Do you think these penalties are too harsh? Are there other appropriate penalties involving contracts? Please share your opinions as well as your experiences with these penalties or experiences where these penalties were not available?

106. Void Contracts.

Any contract, agreement, or other business transaction entered into by or with the city which results in or from a violation of any provision of sections 100 or 101 of this code is void, without further action taken, unless ratified by the city's legislative body in an open session held after applicable public notice. Such ratification does not affect the imposition of any penalties pursuant to this code or any other provision of law.

108. Debarment.

1. Any person or entity that intentionally or knowingly violates any provision of this code is prohibited from entering into any contract, other than an employment contract, with the city for a period not to exceed three years.

2. Nothing in this section may be construed to prohibit any person or entity from receiving a service or benefit, or from using a facility, which is generally available to the public.

3. Under this section, a corporation, partnership, or other entity is not vicariously liable for the actions of an employee. A corporation, partnership, or other entity is not debarred because of the actions of an employee unless the employee acted in the execution of company policy or custom. A store, region, division, or other unit of an entity is not debarred because of the actions of an employee of that unit unless the employee acted at the direction, or with the actual knowledge or approval, of the manager of the unit.

215(9). Debarment.

If the Ethics Commission finds that a person or entity has intentionally or knowingly violated any provision of this code, that person or entity is prohibited from entering into any contract with the city for a period not to exceed three years, pursuant to 108 of this code.