CEO 88-19 -- March 16, 1988

CONFLICT OF INTEREST

CITY COUNCIL MEMBER LISTING PROPERTY WITH REALTOR

WHO ALSO SERVES ON CITY COUNCIL

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

SUMMARY:

No prohibited conflict of interest would be created were a member of a city council to list property which she owns with the realty firm of a realtor who also serves on the city council. Section 112.313(7)(a), Florida Statutes, would not be violated as the realty firm is not doing business with the city, and the city council member's business relationship with another council member would not impede the full and faithful discharge of her public duties. CEO's 84-112 and 82-28 are referenced.

QUESTION:

Would a prohibited conflict of interest be created were you, a city council member, to list property which you own with a realtor who also serves on the city council?

Your question is answered in the negative, under the circumstances presented.

In your letter of inquiry you advise that you are a member of the Zephyrhills City Council and own real estate located in the City. You question whether the Code of Ethics for Public Officers and Employees would prohibit you from listing this property with a realtor who also serves on the City Council.

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 (1987).]

This provision prevents you from having a contractual relationship with a business entity which either is doing business with or is subject to the regulation of the City. In a telephone conversation with our staff you advised that the real estate firm is not doing business with the City. Nor is the real estate firm subject to the regulation of the City, as realtors are regulated by the Florida Real Estate Commission pursuant to Chapter 475, Florida Statutes.

Section 112.313(7)(a), Florida Statutes, also prohibits you from having a contractual relationship that will create a continuing or frequently recurring conflict between your private interests and the performance of your public duties or that would impede the full and faithful discharge of your public duties. We previously have advised that no continuing or frequently recurring conflict of interest generally would arise from a private contractual relationship between a public employee and subordinate employee. Nonetheless, we recognized that where a public employee has an ongoing private business relationship with a subordinate, that relationship and the employee's interests in keeping that relationship harmonious, productive, and profitable could impede the employee's duty to impartially evaluate the subordinate's job performance and lead to a frequently recurring conflict between those interests. See CEO's 84-112 and 82-28. Here, we are of the view that no such possibility for conflict would exist in the context of the described business relationship between two public officials who operate independently and on an equivalent level.

Accordingly, we find that no prohibited conflict of interest would be created were you, a City Council member, to list property which you own with a realtor who also serves on the City Council where that real estate firm does no business with the City.