Case Study 1
Question: What should the manager do?

1. Continue to fully disclose his investment in this partnership and work when not on city time to help make it successful.

Answer #4 is recommended. The rationale is that Tenet 12 of the ICMA code of ethics regarding Investment in Conflict with Duties says that “Members should not invest or hold any investments, directly or indirectly, in any financial business, commercial, or other private transaction that creates a conflict of official duties.  In the case of real estate the potential use of confidential information to further a member’s personal interest requires special consideration. Does the city manager’s investment in the assisted living business create a direct or perceived conflict with his official duties? Does the fact that a greater good would be created in the community because of the need for assisted living facilities weigh into the manager’s consideration? Does the fact that the city attorney has opined that no legal conflict of interest exists outweigh other considerations. Does that fact that the manager has disclosed this investment to the mayor and received his support and encouragement come into play? Can the city manager ethically address the concern about his dual role as a developer and city manager? Many times managers are faced with ethical dilemmas that cross professional obligations, community interests and personal desires.  In this case the manager could possibly convince himself and perhaps others that such an investment in an assisted-living facility (while possibly benefiting him financially at some point in the future) would certainly benefit the community even greater.  The fact that the city attorney has rendered a favorable opinion and the mayor has indicated support further would support a convincing argument that the manager should make an investment in the project.  Clearly full disclosure of such an investment is an absolute necessity.  In considering whether to make such an investment the manager should also anticipate the possibilities of other events that could create conflicts or the appearance of conflicts that would impact the public confidence in his duties.  Such potential conflicts could include issues raised at the planning and zoning board hearing, the building department plan review and inspection process, and even the perceptions of those competing businesses that must interact with the city on other matters. In the end the manager should refrain from making any investment in the assisted living development project in the city, and his staff may pursue outside developers to provide this kind of residential development in the city.

2. Invest in the partnership but not have any involvement in the development of the project?

Answer #4 is recommended. The rationale is that Tenet 12 of the ICMA code of ethics regarding Investment in Conflict with Duties says that “Members should not invest or hold any investments, directly or indirectly, in any financial business, commercial, or other private transaction that creates a conflict of official duties.  In the case of real estate the potential use of confidential information to further a member’s personal interest requires special consideration. Does the city manager’s investment in the assisted living business create a direct or perceived conflict with his official duties? Does the fact that a greater good would be created in the community because of the need for assisted living facilities weigh into the manager’s consideration? Does the fact that the city attorney has opined that no legal conflict of interest exists outweigh other considerations. Does that fact that the manager has disclosed this investment to the mayor and received his support and encouragement come into play? Can the city manager ethically address the concern about his dual role as a developer and city manager? Many times managers are faced with ethical dilemmas that cross professional obligations, community interests and personal desires.  In this case the manager could possibly convince himself and perhaps others that such an investment in an assisted-living facility (while possibly benefiting him financially at some point in the future) would certainly benefit the community even greater.  The fact that the city attorney has rendered a favorable opinion and the mayor has indicated support further would support a convincing argument that the manager should make an investment in the project.  Clearly full disclosure of such an investment is an absolute necessity.  In considering whether to make such an investment the manager should also anticipate the possibilities of other events that could create conflicts or the appearance of conflicts that would impact the public confidence in his duties.  Such potential conflicts could include issues raised at the planning and zoning board hearing, the building department plan review and inspection process, and even the perceptions of those competing businesses that must interact with the city on other matters. In the end the manager should refrain from making any investment in the assisted living development project in the city, and his staff may pursue outside developers to provide this kind of residential development in the city.

3. Have his wife invest in the partnership and be sure his name is not on any of the legal documents?

Answer #4 is recommended. The rationale is that Tenet 12 of the ICMA code of ethics regarding Investment in Conflict with Duties says that “Members should not invest or hold any investments, directly or indirectly, in any financial business, commercial, or other private transaction that creates a conflict of official duties.  In the case of real estate the potential use of confidential information to further a member’s personal interest requires special consideration. Does the city manager’s investment in the assisted living business create a direct or perceived conflict with his official duties? Does the fact that a greater good would be created in the community because of the need for assisted living facilities weigh into the manager’s consideration? Does the fact that the city attorney has opined that no legal conflict of interest exists outweigh other considerations. Does that fact that the manager has disclosed this investment to the mayor and received his support and encouragement come into play? Can the city manager ethically address the concern about his dual role as a developer and city manager? Many times managers are faced with ethical dilemmas that cross professional obligations, community interests and personal desires.  In this case the manager could possibly convince himself and perhaps others that such an investment in an assisted-living facility (while possibly benefiting him financially at some point in the future) would certainly benefit the community even greater.  The fact that the city attorney has rendered a favorable opinion and the mayor has indicated support further would support a convincing argument that the manager should make an investment in the project.  Clearly full disclosure of such an investment is an absolute necessity.  In considering whether to make such an investment the manager should also anticipate the possibilities of other events that could create conflicts or the appearance of conflicts that would impact the public confidence in his duties.  Such potential conflicts could include issues raised at the planning and zoning board hearing, the building department plan review and inspection process, and even the perceptions of those competing businesses that must interact with the city on other matters. In the end the manager should refrain from making any investment in the assisted living development project in the city, and his staff may pursue outside developers to provide this kind of residential development in the city.

4. Not invest in the partnership but encourage the other developers to move forward even though it is unlikely they would build this project in the community without the city manager’s involvement.

Correct! The rationale is that Tenet 12 of the ICMA code of ethics regarding Investment in Conflict with Duties says that “Members should not invest or hold any investments, directly or indirectly, in any financial business, commercial, or other private transaction that creates a conflict of official duties.  In the case of real estate the potential use of confidential information to further a member’s personal interest requires special consideration. Does the city manager’s investment in the assisted living business create a direct or perceived conflict with his official duties? Does the fact that a greater good would be created in the community because of the need for assisted living facilities weigh into the manager’s consideration? Does the fact that the city attorney has opined that no legal conflict of interest exists outweigh other considerations. Does that fact that the manager has disclosed this investment to the mayor and received his support and encouragement come into play? Can the city manager ethically address the concern about his dual role as a developer and city manager? Many times managers are faced with ethical dilemmas that cross professional obligations, community interests and personal desires.  In this case the manager could possibly convince himself and perhaps others that such an investment in an assisted-living facility (while possibly benefiting him financially at some point in the future) would certainly benefit the community even greater.  The fact that the city attorney has rendered a favorable opinion and the mayor has indicated support further would support a convincing argument that the manager should make an investment in the project.  Clearly full disclosure of such an investment is an absolute necessity.  In considering whether to make such an investment the manager should also anticipate the possibilities of other events that could create conflicts or the appearance of conflicts that would impact the public confidence in his duties.  Such potential conflicts could include issues raised at the planning and zoning board hearing, the building department plan review and inspection process, and even the perceptions of those competing businesses that must interact with the city on other matters. In the end the manager should refrain from making any investment in the assisted living development project in the city, and his staff may pursue outside developers to provide this kind of residential development in the city.

5. Look outside the community for investment opportunities and let the market decide if and where an assisted living development makes financial sense for this community.

Answer #4 is recommended. The rationale is that Tenet 12 of the ICMA code of ethics regarding Investment in Conflict with Duties says that “Members should not invest or hold any investments, directly or indirectly, in any financial business, commercial, or other private transaction that creates a conflict of official duties.  In the case of real estate the potential use of confidential information to further a member’s personal interest requires special consideration. Does the city manager’s investment in the assisted living business create a direct or perceived conflict with his official duties? Does the fact that a greater good would be created in the community because of the need for assisted living facilities weigh into the manager’s consideration? Does the fact that the city attorney has opined that no legal conflict of interest exists outweigh other considerations. Does that fact that the manager has disclosed this investment to the mayor and received his support and encouragement come into play? Can the city manager ethically address the concern about his dual role as a developer and city manager? Many times managers are faced with ethical dilemmas that cross professional obligations, community interests and personal desires.  In this case the manager could possibly convince himself and perhaps others that such an investment in an assisted-living facility (while possibly benefiting him financially at some point in the future) would certainly benefit the community even greater.  The fact that the city attorney has rendered a favorable opinion and the mayor has indicated support further would support a convincing argument that the manager should make an investment in the project.  Clearly full disclosure of such an investment is an absolute necessity.  In considering whether to make such an investment the manager should also anticipate the possibilities of other events that could create conflicts or the appearance of conflicts that would impact the public confidence in his duties.  Such potential conflicts could include issues raised at the planning and zoning board hearing, the building department plan review and inspection process, and even the perceptions of those competing businesses that must interact with the city on other matters. In the end the manager should refrain from making any investment in the assisted living development project in the city, and his staff may pursue outside developers to provide this kind of residential development in the city.

Case Study 2
Question: What should the manager do?

1. Accept the invitation and provide full disclosure to the city council.

Answer #4 is recommended, but only if the tickets are disclosed as gifts, and further explained as such to the governing body. Many times managers are faced with gray areas when considering questions about the professional code of ethics.  In this case the manager could provide a convincing argument that the invitation was simply a social matter to get to know him better and not any attempt to influence the performance of his official duties.  If he decides to accept, he should disclose his attendance and reasons to the members of the governing body.  Ideally (but not required) it would be best for the manager to attend the football game and pay for the face value of the tickets and explain to the university president the professional requirements for refraining from even an appearance of conflict.  Should the invitation to the games become a regular event, the manager should find a way to become a season ticket holder if he really wants to continue attending football games at the university.

2. Gracefully decline the invitation and let the university president know that he would love to meet with the president and other community leaders to get to know each other better in an office setting but that he cannot accept the tickets because they could be perceived as a gift.

Answer #4 is recommended, but only if the tickets are disclosed as gifts, and further explained as such to the governing body. Many times managers are faced with gray areas when considering questions about the professional code of ethics.  In this case the manager could provide a convincing argument that the invitation was simply a social matter to get to know him better and not any attempt to influence the performance of his official duties.  If he decides to accept, he should disclose his attendance and reasons to the members of the governing body.  Ideally (but not required) it would be best for the manager to attend the football game and pay for the face value of the tickets and explain to the university president the professional requirements for refraining from even an appearance of conflict.  Should the invitation to the games become a regular event, the manager should find a way to become a season ticket holder if he really wants to continue attending football games at the university.

3. Accept the invitation but ask to purchase the tickets at face value and then submit for reimbursement from the city since this could be construed as a legitimate business meeting.

Answer #4 is recommended, but only if the tickets are disclosed as gifts, and further explained as such to the governing body. Many times managers are faced with gray areas when considering questions about the professional code of ethics.  In this case the manager could provide a convincing argument that the invitation was simply a social matter to get to know him better and not any attempt to influence the performance of his official duties.  If he decides to accept, he should disclose his attendance and reasons to the members of the governing body.  Ideally (but not required) it would be best for the manager to attend the football game and pay for the face value of the tickets and explain to the university president the professional requirements for refraining from even an appearance of conflict.  Should the invitation to the games become a regular event, the manager should find a way to become a season ticket holder if he really wants to continue attending football games at the university.

4. Accept the invitation and explain to the president the potential for the tickets to be perceived as a gift.

Correct, but only if the tickets are disclosed as gifts, and further explained as such to the governing body. Many times managers are faced with gray areas when considering questions about the professional code of ethics.  In this case the manager could provide a convincing argument that the invitation was simply a social matter to get to know him better and not any attempt to influence the performance of his official duties.  If he decides to accept, he should disclose his attendance and reasons to the members of the governing body.  Ideally (but not required) it would be best for the manager to attend the football game and pay for the face value of the tickets and explain to the university president the professional requirements for refraining from even an appearance of conflict.  Should the invitation to the games become a regular event, the manager should find a way to become a season ticket holder if he really wants to continue attending football games at the university.

5. Accept the invitation but call the president the day of the football game and explain he cannot make it because he is not feeling well.

Answer #4 is recommended, but only if the tickets are disclosed as gifts, and further explained as such to the governing body. Many times managers are faced with gray areas when considering questions about the professional code of ethics.  In this case the manager could provide a convincing argument that the invitation was simply a social matter to get to know him better and not any attempt to influence the performance of his official duties.  If he decides to accept, he should disclose his attendance and reasons to the members of the governing body.  Ideally (but not required) it would be best for the manager to attend the football game and pay for the face value of the tickets and explain to the university president the professional requirements for refraining from even an appearance of conflict.  Should the invitation to the games become a regular event, the manager should find a way to become a season ticket holder if he really wants to continue attending football games at the university.

Question 2: If the manager chooses to purchase tickets, rather than accept them as a gift, is this an acceptable expense for the city?

1. Yes.

The answer is actually no. To avoid any appearance of conflict of interest, the manager should pay for the tickets himself. The rationale is how would the manager explain to the local media if questioned about his acceptance of the tickets and attending the game? Or, of having the city pay for the tickets? Regardless of the public relations expectations that the Council has of the manager, there is no way to accept tickets, or have the city pay for them, that does not cause a problem for the city.

2. No.

Correct! To avoid any appearance of conflict of interest, the manager should pay for the tickets himself. The rationale is how would the manager explain to the local media if questioned about his acceptance of the tickets and attending the game? Or, of having the city pay for the tickets? Regardless of the public relations expectations that the Council has of the manager, there is no way to accept tickets, or have the city pay for them, that does not cause a problem for the city.

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