CEO 83-2 -- January 27, 1983

CONFLICT OF INTEREST

CITY MANAGER FORMING CORPORATION TO CONTRACT WITH CITY FOR HIS EMPLOYMENT AS CITY MANAGER

To: (Name withheld at the person's request.)

SUMMARY:

The Code of Ethics for Public Officers and Employees would not be violated were a city manager to form a professional association or corporation which would contract with the city for his employment as city manager. Although Section 112.313(3), Florida Statutes, generally would prohibit a city manager from contracting in a corporate capacity to sell services to the city in addition to those he provides as a city employee, here the city manager's employment would be replaced with the contract between the city and the professional association or corporation.

QUESTION:

Would the Code of Ethics for Public Officers and Employees be violated were a city manager to form a professional association or corporation which would contract with the city for his employment as city manager?

Your question is answered in the negative.

In your letter of inquiry you advise that your client, who is a city manager, is contemplating the formation of a professional association or a one-man corporation. This corporation would contract with the city for his employment as city manager, resulting in tax benefits to the city manager. In addition, you advise that any and all statements of financial interests required under the Code of Ethics would be filed voluntarily to prevent any problems relating to conflicts of interest and self-dealing.

In our opinion, no provision of the Code of Ethics for Public Officers and Employees would be violated were the subject city manager to form a professional association or corporation which would contract with the city for his employment as city manager. Section 112.313(3), Florida Statutes, generally would prohibit the subject city manager from forming a corporation and contracting in a corporate capacity to sell services to the city in addition to those he provides as a city employee. However, in the situation you have described, the city manager would not be providing services in addition to those he is providing while an employee of the city. Rather, his employment as city manager would be replaced with the contract between the city and his professional association or corporation.

Accordingly, we find that no provision of the Code of Ethics would be violated were the subject city manager to form a professional association or corporation which would contract with the city for his employment as city manager.