CONFLICT OF INTEREST OPINION

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opinion advising you of our recornrnendaticn based on the specific fasts of the rnatter.'
From the interviews of Mr. Paladini and Mr. O'Brien, an affidavit subrnitted by Mr. Patadini, a brief intervisur of Michael Goimarac, and a rerrrieur of the Sedona Ctty A,ttomey and SCDD files, it appears that there urer) no other written conflict of interest opinicns rendered by the Sedona City Afromey's Office. There were, however, several verbal opinions given by the City Attomey's Office to Mr. O'Brien. Mr. Paladini states in his interview that, altl:ough he cannot recallthe specifics. he did advise John O'Brien at some point ihat he would not hane a conflist of interest just because Claire worked for John Milleror JDMREI, and the entity appearing before SCDD wes a John Miller company. lo'lr. O'Brien understood the advice he received frorn Mr. Paladinito be that if Claire were not involved with tha particuiar: propert.v that was being considered by SCOO, Eren he did not harre a mnfrict of interest. Before ianuary. 1997. this had been Mr. O'Brien's understanding of the conflict of intarest laurs. Mr. Paladini is not sure exacUy when he gave this advice to John O'Brien, but it is more than likely that it was after Mr. O'Brien becarne Director of SCDD. lvlr. O'Brien recalls that he sought and obtained verbal advicg after the January, 1997 letter.

Contracto/s Road Minitorage (Contractor's Road LLC)

The Contracto/s Road Mini-Sbrage development proposal was submited to and considereci by SCDD in tlre spring of 1994. Mr. O'Brien states that he was initially the lead sta$ person on the Contraeto/s Road Mini-Storage development proposal. At some point in the developrnnt review process Mr. O'Brien became concerned about a possible mnflict of lnterest beeuse Ctaire was involved in leasing on that property. He mnsutted the contract City Attorney at the time, Melinda Garahan, and she advised Mr. O'Brien that he did have a conflict of interest. Accordingly, Mr. O'Brien Cecided not to participate in the decision making prccess.
It b not dear, either from the interview with Mr. O'Brien or the SCDD file, exacfly when Mr. O'Brien withdrew from participation in the decision rnaking process. The SCDD file reflects that Roger Eastman authored all substantive memoranda, and that Mr. O'Brian dkl not attend any of the meetings with Mr. Miller and other rcpresentaiives of Contracto/s Road. Mr. O'Brien did nothing rnore than sign pro farma notices of public rneetings. The file contains no notes by Mr. O'Brien; his name does not appear on the staff report and recornmndetion. Mr. O'Brien fcrmally declared a conflict of interest at a meeting of the SP&ZC, on July 5, 1995, as reflected in the minutes of that meeting.