86-267
Whether a conflict of interest arises when a city councilman votes on issues which relate to his private employment. 1. Is there a conflict where a councilman who is also a manager for a State School for the handicapped votes to blacktop a road around the school; 2. Is there a conflict where a ci
Cite as Ark. Op. Att'y Gen. 86-267
" STATE OF ARKANSAS
OFFICE OF THE ATTORNEY GENERAL
won . x 201 EAST MARKHAM STREET
; - STEVE CLARK: HERITAGE WEST BUILDING
ATTORNEY GENERAL LITTLE ROCK, ARKANSAS 72201
(501) 371-2007
Opinion No. 86-267
August 18, 1987
Honorable Ed Gilbert
State Representative
P., 0. Box 633
Mt. Home, Arkansas -72653
Dear Representative Gilbert:
This is in response to your letter of July 16, 1985,
wherein you requested an opinion on whether a conflict of
interest arises when a city councilman votes on issues which
relate to his private employment. Your letter provides four
specific situations which were supplied by Mr. Charles Maas.
These examples include:
I, Is there a conflict where a councilman who is also a
manager for a State school for the handicapped votes
to blacktop a road around the school;
Ii. Is there a conflict where a city councilman who also
is employed by the State Mental Health Department
votes against a land tax to be placed on the property
of the State Mental Health Department;
IfI. Is there a conflict where a city councilman who is
also an employee of a State nursing home votes against
a raise in water and sewage costs due to the fact that
the nursing home would use large amounts of water;
Iv. Is there a conflict where a city councilman who is
also self-employed as a builder and developer votes on
issues which pertain to the subdivision code?
Generally, an officer would be disqualified from
participating in a decision when he has a personal interest
which might interfere with the unbiased discharge of his duty
to the public. Our Supreme Court held in Van Hovenberg v.
‘The Honorable Hd Gilbert
Opinion Number 86-267
" August 18, 1987
ve Page 2
Holman, 201 Ark: 370, 144 S.Wi2d 719, (1940), that no member of
a city council may vote on any question involving his own
pecuniary interest, if that is immediate, particular, and
distinct from the public interest. However, a member is not
disqualified where his interest is only as a member of a class.
The Van Hovenberg case dealt with a member of the city
council who. voted to grant a permit to an oil company to build -
and operate a filling station on a lot owned by = said
councilman. Previous requests for a permit made by other land
owners ‘on the same street to erect a filling station had been
objected to by this councilman. Also, the councilman had
secured: a ten year lease with an option to purchase the station
in question from the oil company. In holding the councilman
incompetent to vote, the Supreme Court stated:
It would be inconsistent if the law
were that the collector of an improvement
district, and a bridge district
commissioner, could not profit through
transactions with the districts, but an
alderman could disregard the ordinances he
has ‘sworn to uphold by jllegally
constructing a filling station, and then
consummate his plan to lease it by adding
his vote to three others...
Id. at 375.
Based on the above case, it is my opinion that there is no
conflict when a councilman votes to blacktop a road around a
school for the handicapped, votes against a land tax to be
placed on property of the state or votes against a raise in
water and sewage costs due to the fact that any interest by
such councilman would fail to present a direct pecuniary
interest that was distinct from the public. This reasoning
also applies to your fourth example involving a self-employed
builder and developer; however, whether or not a conflict
arises would depend upon the specifics of the situation.
It is also important to note that Arkansas law prohibits a
member of the city council from being interested, directly or
indirectly, in the profits of any contract or job for work or
services to be performed for the city. Ark. Stat. Ann. §19-909
(Repl. 1980).
The Honorable Ed Gilbert ~
Opinion Number 86-267
August 18, 1987
Page 3
Accordingly, I conclude that a council member need not
disqualify from service if the primary benefit of his action
flows directly to another with no direct pecuniary interest
that is separate and distinct from the public flowing to the
member.
The foregoing opinion, which I hereby approve, was prepared
by Assistant Attorney General Connie Griffin.
Attorhey General
SC:CG:dd
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