Answer:

Answer #4 is recommended. This falls under the Guidelines of Public Confidence (Tenet #3).  Members should conduct themselves so as to maintain public confidence in their profession, their local government and their performance of the public trust. In this instance, the City Manager is doing business within the City he is managing and attempting to do business with the City.  This is in conflict with this Guideline in that there is not any way to operate this business without the appearance of a conflict even if he is not involved in the management.  There is a question whether the Manager should be involved in such an operation even outside of his town since it will be operating within the County. The appearance of conflict is strong and it would raise questions about the loyalty of the City Manager to his City.