R2003-01 ESTABLISHING CONFLICT OF INTEREST POLICY

Home Browse Search

Neighborhood Services Department Memorandum # 02-34 December 27, 2002 TO: Honorable Mayor Howley and City Council FROM: Steve Garma.n, City Manager A. J. Krieger, Assistant City Manager John Couter, Corporation Counsel Linda J. Love,Neighborhood Services Director SUBJECT: Conflict of Interest Policy NOTE: The memorandum below is being sent to alert Council to an upcoming agenda item. At the January 6, 2003, regular meeting City staff will recommend that Council adopt a resolution establishing a conflict of interest policy. At the direction of HUD counsel nationally, any city receiving CDBG, HOME, and/or other types of federal funding needs to establish a specific conflict of interest policy regarding its use and disbursement. An item on the January 6 agenda will be a resolution that, when approved, will serve as the City's guide for handling rela.tionships between City staff, City Council, and agencies applying for federal assistance through the City. The memorandum below should e�cplain the requirement, and City staff will be available to answer � any questions during the meeting on the 6`�. RECOMMENDATION: There is no recommendation as this memorandum is for informational purposes. A Conflict of Interest Policy resolution will be submitted to you on January 6, 2003. BACKGROUND: During the review process for Community Development Block Grant (CDBG) sub recipients for FY02-03, a number of Conflict of Interest issues came to light requiring a review by staff from the U.S. Department of Housing and Urban Development (HUD). The City is required to comply with CDBG Conflict of Interest provisions in 24 CFR Part 570.611. The regula.tion concerns those that are employees, agents, consultants, officers, appointed officials or elected officials of the City of Decatur, or those of any public agency or of other sub recipients that are receiving federal funding from the City of Decatur. Such persons who exercise any control or responsibility with respect to the federal financia.l assistance, or who are in a position to participate in the decision-making process or gain inside infornrnation with regard to such activities, may not obtain a financial interest or benefit from a federally assisted activity, or have a financial interest in any contract, subcontract, or agreement with respect to a federally assisted activity, or with respect to the proceeds of the federally assisted activity, either for themselves or those with whom they ha.ve business or immediate family ties, during their tenure or for one yeaz thereafter. The City is also required to comply with 24CFR92.356 for HOME funded projects, which include the same provisions as 24CFR570.611. The City must also comply with 24 CFR Part 85.36 (a) which states that grantees are to have written policies on how conflict of interests would be handled, and what is defined as a conflict , both concerning City staff and elected officia.ls. This regulation states that no employee, officer or