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A conflict of interest not identified in this policy may be a violation of those laws. City officials <br />may have a legal conflict of interest even if their conduct does not amount to a conflict of interest <br />under this Policy. Nothing in this Policy authorizes, or should be interpreted as authorizing, City <br />officials to have an interest in a transaction that is prohibited by state or federal law. Employees <br />and elected officials who have a conflict of interest recognized by state or federal law are subject to <br />all of the consequences provided by law. <br />The purpose of this Policy is to inform City elected officials, appointed commission members, and <br />staff of the City's broad definition of Conflicts and to establish procedures to follow to declare and <br />monitor conflicts as they arise. The City Council requires each elected official, appointed <br />commission members and staff member to be advised of this Policy, and each of said persons are <br />to be provided a copy of this Policy, immediately upon assuming their City's duties or relationship. <br />All individuals subject to this Policy are responsible for knowing and observing the Policy. <br />This Policy recognizes that a conflict of interest may exist, from a practical perspective, whenever <br />the personal or professional interests of an elected official, appointed commissioner or staff <br />member are potentially at odds with City's interest(s). Since the City Council is responsible for <br />ensuring that the organization's management serves the City's best interests, over and above the <br />interests of any insider, this Policy broadly defines potential conflicts of interest to include all <br />instances when a person within the organization may be able to exert his or her authority, <br />influence, or bias on any issue in which he or she may have divided allegiances. <br />The City Council recognizes that conflicts may exist not only when an individual has a financial <br />interest in a transaction, but also when his or her nonfinancial interests are involved. In all cases, <br />the City Council is committed to ensuring that whenever a dual interest between an individual's <br />personal, business, organizational or professional affiliations and the position and interests of the <br />City exists, disclosure of such conflict is given and the resulting decision -making is fairly and <br />appropriately managed. Furthermore, this Policy's procedures apply not only when an actual <br />conflict is demonstrated, but also when the interests or concerns of another party to which one has <br />allegiance may reasonably be seen as competing with City's interests or concerns. The decision of <br />the City Council to effect a level of higher scrutiny and procedures when an elected official, <br />appointed commissioner, or staff member of the City appears to have a conflict acknowledges the <br />public's increasing sensitivity to self -dealing and/or lax management by elected officials, <br />appointed commissioners, and staff. <br />The three types (or "Tiers") of conflicts defined in the Policy are not mutually exclusive. An <br />interest that qualifies as a conflict of interest under one Tier may be a conflict of interest under <br />either of the other Tiers as well, depending on the specific facts. <br />Conflict of Interest and Divided Allegiances, Definitions <br />Tier 1 -- Direct conflict: A direct conflict exists whenever there is any proposed transaction or <br />action of the City in which an elected official, appointed commissioner, or staff member has any <br />direct involvement or interest. Direct conflict of interest occurs when a decision or action would <br />compromise a duty to a party without taking immediate appropriate action to eliminate the conflict. <br />These transactions are subject to the highest scrutiny. <br />Tier 2 -- Indirect conflict: An elected official, appointed commissioner or staff member has an <br />indirect involvement or interest in a proposed transaction or action of the City whenever: <br />a) Any other party to the transaction or party affected by the action is a "family member" <br />491Page <br />