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organizational or professional - and it intersects with affiliations and the position and interests of <br />the City exists, such conflicts are disclosed, and disclosure of such conflict is given and the <br />resulting decisions are managed fairly and appropriately. <br />-making is fairly and appropriately managed. Furthermore, the proceduresoutlined in this policy is <br />Policy's procedures apply not only when an actual conflict is demonstrated but also when the <br />interests or concerns of another party to which one has allegiance may reasonably be seen as <br />competing with City's interests or concerns. The decision of the City Council's decision to apply <br />heighted to effect a level of higher scrutiny and procedures when a conflict involving elected <br />official, mn elected official, appointed commissioner, or staff member of the City appears to have a <br />conflict acknowledges the public's increasing sensitivity to self -dealing and/or lax management by <br />public officials.electeci officials, appointed commissioners, and start. <br />The three types (or "tiers") of conflicts defined in the DPolicy are not mutually exclusive. An <br />interest that qualifies as a conflict of interest under one tTier may dso qualify under another tier, <br />be a conflict of interest under either of the other Tiers as well, depending on the specific <br />circumstances. <br />CONFLICT OF INTEREST, DIVIDED ALLEGIANCES, AND DEFINITIONS "' <br />hiterest-an-d-Divided-Allegietifeesrpefinithwis <br />Tier 1 -- Direct ceonflict: 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 <br />conflict. 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 />1. a) Any other party to the transaction or party affected by the action is a "family <br />member" (i.e., a relative) of the elected official, appointed commissioner, or staff member, <br />or there is a relationship, affiliation, or other interest that could create an inappropriate <br />influence if the person is called on the make a decision or recommendation that would <br />affect one or more of those relationships, affiliation , or interests. <br />2. b) Any other party to the transaction or party affected by the action is an entity in <br />which the elected official, appointed commissioner or staff member has a material <br />financial interest <br />3. c) The elected official, appointed commissioner or staff member is an officer, <br />director, trustee, staff member or partner of any other party to the transaction or party <br />affected by the 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 more distantly related However, <br />removed, although each situation involves individual circumstances to be weighed by the City <br />Council and City Administrator. <br />761Page <br />