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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
<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. Any other party to the transaction or party affected by the action is a "family member"
<br />(i.e., a relative) of the elected official, appointed commissioner, or staff member, or there
<br />is a relationship, affiliation, or other interest that could create an inappropriate influence
<br />if the person is called on to make a decision or recommendation that would affect one or
<br />more of those relationships, affiliations, or interests.
<br />2. Any other party to the transaction or party affected by the action is an entity in which the
<br />elected official, appointed commissioner, or staff member has a material financial
<br />interest.
<br />3. 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
<br />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, each
<br />situation involves individual circumstances to be weighed by the City Council and City
<br />Administrator.
<br />Tier 3 -- Potential conflict or the appearance/perception of conflict: Elected official,
<br />appointed commissioners, and staff members should follow the disclosure procedures outlined in
<br />this policy when the interests or concerns of any elected official, appointed commissioner, or
<br />staff member, or of any of their relatives, or any other individual group or organization to which
<br />such person has allegiance, may reasonably be seen by a third party as competing with the
<br />interests or concerns of the City, or when 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,
<br />step-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, obligations repaid, or
<br />other liabilities satisfied. 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
<br />mementos costing $5.00 or less, not given regularly may be accepted.
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