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c) The elected official, appointed commissioner or staff member is an officer, director, <br /> trustee, staff member or partner of any other party to the transaction or party affected by the <br /> action. <br /> Conflicts involving more immediate relatives should generally be subject to a higher level of <br /> scrutiny by the City than those involving relatives who are removed, although each situation <br /> involves individual circumstances to be weighed by the City Council and City Administrator. <br /> Tier 3 -- Potential conflict or the appearance/perception of conflict: elected official, appointed <br /> commissioner and staff members should follow the disclosure procedures of this Policy when the <br /> interests or concerns of any elected official, appointed commissioner or staff member, or of any of <br /> those individual's relatives, or any other individual group or organization to which such person has <br /> allegiance, may reasonably be seen by a third party as competing with the interests or concerns of <br /> the City; that conflicting duties or loyalties exist. <br /> For purposes of this Policy , the term "relative" includes all of the following individuals: spouses, , <br /> parents, children, children's spouses, siblings, spouses of siblings, aunts, uncles, first cousins, step- <br /> parents and step-children. <br /> For purposes of this Policy, a"material financial interest" exists when an individual or their <br /> relative has rights (whether or not yet vested) to be paid compensation, employee or retiree <br /> benefits, dividends, or profit-sharing, or to have their expenses reimbursed or obligations or other <br /> liabilities repaid, etc. The term is intended to include any and all remunerative expectations. <br /> The City's elected officials, appointed commissioners, staff, and consultants, shall neither solicit <br /> nor accept gratuities, favors, or anything of monetary value from contractors, donors, grantees or <br /> parties to sub-agreements, with the exception that unsolicited gifts, such as trinkets or mementos <br /> costing $5.00 or less, not given regularly may be accepted. <br /> When there is any doubt as to whether a conflict exists, either pursuant to this Policy or under <br /> applicable law, the matter shall be resolved by the City Attorney. <br /> All local officials, as defined in Minnesota law, must comply with Minnesota law regarding the <br /> receipt of gifts. <br /> Procedure When Appointed Officials have a Conflict <br /> When conflicts arise,the interested appointed official must: <br /> 1. Prepare a written statement or make a verbal announcement at the applicable public meeting <br /> describing the matter requiring action or decision and the nature of the potential conflict of interest. <br /> a. Deliver a copy of the notice to the chair of that board, commission or committee. If the <br /> chair has the conflict,notice should go to the appointing authority-the city council. <br /> Procedure when Elected Officials have a Conflict <br /> When conflicts arise,the interested elected official must: <br /> 2. Prepare a written statement or make a verbal announcement at the applicable public meeting <br /> describing the matter requiring action or decision and the nature of the potential conflict of interest. <br /> a. Deliver a copy of the notice to the presiding officer(typically the mayor) <br /> 501Page <br />