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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 they may have divided allegiances. <br />The City Council acknowledges recognizes that conflicts may exist not only from financial <br />interests in when an individual has a financial interest in a transaction -but also from when his or <br />her nonfinancial interests, are involved. In all cases, the City Council is committed to ensuring <br />that whenever a dual interest exists — whether between an individual's personal, business, <br />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 procedures outlined 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, an 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,Lef lax management by <br />public officials.elected officials, 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 Mier may also qualify under another tier, <br />be a conflict of interest under either of the other Tiers as well, depending on the specific <br />circumstancesfacts. <br />CONFLICT OF INTEREST, DIVIDED ALLEGIANCES, AND DEFINITIONS "' <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, affiliations, 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 />621Page <br />