Agenda - Council Work Session - 07/22/2014

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The City Council and the City Administrator are committed to governing the City organization in a manner that is free of personal conflicts. For the purposes of this Policy, the term "conflicts" means both "conflicts of interest" as they are defined under applicable state and federal law, and "divided allegiances." as they are defined in this Policy. This Policy addresses how the City approaches actual or perceived conflicts. The definitions that apply cover more than the specific conflict of interest scenarios addressed by state or federal laws. A conflict of interest not identified in this policy may be a violation of those laws. City officials may have a legal conflict of interest even if their conduct does not amount to a conflict of interest under this Policy. Nothing in this Policy authorizes, or should be interpreted as authorizing, City officials to have an interest in a transaction that is prohibited by state or federal law. Employees and elected officials who have a conflict of interest recognized by state or federal law are subiect to all of the consequences provided by law. The purpose of this Policy is to inform City elected officials, appointed commission members, and staff of the City's broad definition of Conflicts and to establish procedures to follow to declare and monitor conflicts as they arise. The City Council reauires each elected official. appointed commission members and staff member to be advised of this Policy, and each of said persons are to be provided a copy of this Policy immediately upon assuming their City's duties or relationship. All individuals subiect to this Policy are responsible for knowing and observing the Policy. This Policy recognizes that a conflict of interest may exist, from a practical perspective, whenever the personal or professional interests of an elected official. appointed commissioner or staff member are potentially at odds with City's interest(s). Since the City Council is responsible for ensuring that the organization's management serves the City's best interests, over and above the interests of any insider, this Policy broadly defines potential conflicts of interest to include all instances when a person within the organization may be able to exert his or her authority. influence. or bias on any issue in which he or she may have divided allegiances. The City Council recognizes that conflicts may exist not only when an individual has a financial interest in a transaction, but also when his or her nonfinancial interests are involved. In all cases, the City Council is committed to ensuring that whenever a dual interest between an individual's personal, business, organizational or professional affiliations and the position and interests of the City exists. disclosure of such conflict is given and the resulting decision -making is fairly and appropriately managed. Furthermore. this Policy's procedures apply not only when an actual conflict is demonstrated, but also when the interests or concerns of another party to which one has allegiance may reasonably be seen as competing with City's interests or concerns. The decision of the City Council to effect a level of higher scrutiny and procedures when an elected official, appointed commissioner. or staff member of the City appears to have a conflict acknowledges the public's increasing sensitivity to self -dealing and/or lax management by elected officials. appointed commissioners, and staff. The three types (or "Tiers") of conflicts defined in the Policy are not mutually exclusive. An interest that Qualifies as a conflict of interest under one Tier may be a conflict of interest under either of the other Tiers as well, depending on the specific facts. Conflict of Interest and Divided Allegiances, Definitions Tier 1 -- Direct conflict: A direct conflict exists whenever there is any proposed transaction or action of the City in which an elected official, appointed commissioner, or staff member has any 22IPago Formatted: Font: Not Bold Formatted: Font: 12 pt Formatted: Footer, Line spacing: single