Request By:
Mr. David N. Bloesing
City Administrator
227 Elm Street
Ludlow, Kentucky 41016
Opinion
Opinion By: Steven L. Beshear, Attorney General; By: Walter C. Herdman, Assistant Deputy Attorney General
This is in response to your letter of December 16 in which you relate that a local businessman was recently elected to the city council. This individual has an interest in a company that currently contracts with the city for building material and supplies for public work projects. In fact, it is the only supplier in a five-mile area of the city. The question is raised as to whether or not a conflict of interest would exist if the city continued to purchase supplies from the company in which the councilman has a pecuniary interest.
Our response to your question would be in the affirmative as KRS 61.270 clearly prohibits a member of the city council from being interested directly or indirectly in any contract with the city. This statute applies to the City of Ludlow, a city of the fourth class and reads as follows:
"If any officer of a city of the fourth class becomes directly or indirectly interested as agent, principal or surety in any contract with the city, he shall thereby vacate his office, and the contract, if entered into while he is in office, shall be void."
We are enclosing copies of opinions relating to this question, namely, OAG 78-261 and 76-117.
The fact that this company is the only local supplier is of no legal significance. Also, the fact that the purchase is made on a bid basis would not relieve the statutory violation, and in this respect we refer you to Arms & Short v. Denton, 212 Ky. 43, 278 S.W. 158 (1925). We also might mention that even in absence of KRS 61.270, a common law violation would exist.