A. State Statute A.R.S. § 38-503 defines
CONFLICT OF INTEREST, in part, as follows:
Conflict of Interest........Any public officer or employee of a public agency who has, or whose relative has, a substantial interest in any contract, sale, purchase, or service to such public agency shall make known that interest in the official records of the public agency and shall refrain from voting upon or otherwise participating in any manner as an officer or employee in the contract, sale, or purchase.
B. The mere employment of an individual simultaneously by the city and an outside company that has a direct or indirect business relationship with the city, in itself, establishes no conflict of interest.
C. A conflict of interest would arise if actions by the city employee conferred a direct or indirect pecuniary or proprietary benefit on the city employee or a relative by virtue of that person's connection with the outside business. The law provides that when the potential for a conflict of interest arises, the city employee must make his or her interest (or that of a relative) known and refrain from taking any action or otherwise participating in any way in the matter.
D. When a potential for conflict of interest arises, the city employee must provide written notification to the City Clerk, identifying what relationship exists that could be classified as a potential conflict. Should a question arise pertaining to any potential conflict of interest in a purchasing situation, consult with the Administrative Services Director or the City Attorney's office.
(Res. 2008-011, passed 2-19-2008)