CEO 82-45 -- July 1, 1982

CONFLICT OF INTEREST

WATER MANAGEMENT DISTRICT BOARD MEMBER EMPLOYED BY FINANCIAL ADVISOR PROVIDING SERVICES TO COUNTY GRANTED CONSUMPTIVE USE PERMIT BY THE DISTRICT

To: Mr. Thomas E. Cone, Attorney, Tampa

SUMMARY:

No prohibited conflict of interest would be created where a water management district board member is employed by a financial advising and investment banking company, if that company were to provide financial services to a county whose utilities department has been granted a consumptive use permit by the district. Here, the board member's employment is with the financial advisor, which is not subject to the regulation of the district. Nor would the board member's employment with the financial advisor create a continuing or frequently recurring conflict or impede the full and faithful discharge of his duties, as his employer would not be engaged to assist the county in securing permits from the district, and it is not expected that representatives of his employer would appear before the district. CEO 78-59 is referenced.

QUESTION:

Would a prohibited conflict of interest be created where a water management district board member is employed by a financial advising and investment banking company, if that company were to provide financial services to a county whose utilities department has been granted a consumptive use permit by the district?

Your question is answered in the negative.

In your letter of inquiry you advise that Mr. Bruce A. Samson is the Chairman of the governing Board of the Southwest Florida Water Management District. You also advise that he is an employee and officer, although not a stockholder, of a company which provides services as a financial advisor and investment banker. The company is engaged regularly in these activities on behalf of a number of governmental entities.

In addition, you advise that the Board of County Commissioners of Manatee County, on behalf of the Manatee County Utilities Department, presently is interviewing several firms to provide financial advice in connection with the issuance of utility revenue bonds by the County. The bonds are to be issued to finance certain capital improvements and additions to the existing utilities system. The financial consulting firm would be engaged for this particular bond issue only. You also advise that the County Utilities Department operates a water and sewer system for the public under a consumptive use permit previously issued by the Water Management District.

Finally, you advise that the company which employs the subject Board member is not engaged in any activities which are regulated by the District and is not doing business with the District. The company will not be engaged to assist the County in securing permits from the District, and it is not expected that representatives of the company will be called upon to appear before the District in their financial capacity, as the company's role would be limited to providing financial advice concerning the revenue bond issue.

The Code of Ethics for Public Officers and Employees provides in relevant part:

CONFLICTING EMPLOYMENT OR CONTRACTUAL RELATIONSHIP. -- No public officer or employee of an agency shall have or hold any employment or contractual relationship with any business entity or any agency which is subject to the regulation of, or is doing business with, an agency of which he is an officer or employee . . . ; nor shall an officer or employee of an agency have or hold any employment or contractual relationship that will create a continuing or frequently recurring conflict between his private interests and the performance of his public duties or that would impede the full and faithful discharge of his public duties. [Section 112.313(7)(a), Florida Statutes (1981).]

This provision prohibits a Water Management District Board member from having an employment or contractual relationship with a business entity which is subject to the regulation of the District. Here, however, the subject Board member's employment is with the financial advisor, which is not subject to the regulation of the District. See CEO 79-1.

Section 112.313(7)(a) also prohibits the subject Board member from having any employment or contractual relationship which will create a continuing or frequently recurring conflict of interest or that would impede the full and faithful discharge of his public duties. In our view, this provision would not be violated were the Board member's employer to be engaged by the County. In particular, we note that the financial advisor will not be engaged to assist the County in securing permits from the District; nor is it expected that representatives of the advisor will appear before the Water Management District. Although the County Utilities Department has been granted a consumptive use permit by the District, under these circumstances, it does not appear that the subject Board member would be faced with a continuing or frequently recurring conflict of interest or that his employment with the financial advisor would impede the full and faithful discharge of his duties as a Board member. [See] CEO 78-59, in which we advised that no prohibited conflict of interest would be created were a water management district board member to perform surveying work for clients whose use of water was subject to the regulation of the district.

Accordingly, we find that no prohibited conflict of interest would be created by virtue of the subject Board member's employment if his employer were to provide financial services to a County whose Utilities Department has been granted a consumptive use permit by the District.