Can elected officials do business with the cities they serve? Under Virginia code, yes.

And the Salem City Council will wade into the matter Monday night, when it votes on twin resolutions that would allow two businesses that belong to two council newcomers to bid on city contracts.

With approval, Bill Jones and Lisa Garst hope to navigate the territory where civil service and private business overlap. But it remains a thorny issue, governed by strict rules, and even in the most forthright circumstances may carry the whiff of a conflict of interest.

"It took a lot of effort and a lot of pain to do it right," Jones said Tuesday at a meeting with reporters called by city officials. He painted the issue as a matter of principle. "I don't want to set the precedent that business owners are penalized to serve."

The two separate businesses that belong to Jones and Garst both had business dealings with Salem for years before the May elections, though the two suspended arrangements with the city after they were elected. They both also work with other Virginia localities.

Jones, who owns Fast Signs with his wife, said that sales to Salem have been about $48,000 annually for the past two years.

Garst, who owns Sterling Engineering Solutions with her husband, said that sales to the city have totaled about $8,000 for the past two years.

The Conflict of Interest Act in Virginia states that city officials cannot have a personal interest in contracts with the government that they belong to, though it allows them to bid on contracts for goods under certain criteria. Contracts for services are off-limits.

Steve Yost, Salem city attorney, explained Tuesday the process Jones and Garst have pursued to be eligible to bid on future city contracts: They had to first seek the opinion of the Salem commonwealth's attorney and will need to meet four requirements for making bids.

Specifically, Virginia code requires that:

n The city had an established need for the products before the election.

n The city officials involved are not involved in drawing up the bid specifications.

n The remaining city council members rule, by written resolution, that it is in the public interest to receive the bids.

n The contract is awarded under a standardized process of competitive, sealed bidding.

In two separate opinions last year, Thomas Bowers, the commonwealth's attorney for Salem, wrote that sticking to these rules will negate any conflict of interest for the two council members.

Mark Flynn, director of legal services for the Virginia Municipal League in Richmond, said the exception clause has the benefit of keeping business local and adding transparency to the bidding process.

"This is a section that helps local governments buy the things they need from local business people and keep it all on the up and up," he said. "If you're the guy selling Xerox copiers in town, it makes no sense for the city to have to go somewhere else."

Garst also stressed that she preferred tapping local resources for local jobs, especially since her company provided unique engineering products for utilities communications. "I don't think Bill or I are asking for any special favors," she said.

In addition, Garst said they could bring the matter before the council again in a year, if it passes, and invited residents to reach her with concerns.

Managing potential conflicts of interest requires a bit of tact from members of governing boards, though officials with a stake in the matters before them can simply abstain from a vote or discussion.

Similarly, Jones and Garst will be required to abstain from voting on the resolution that decides their status Monday, when Salem City Council considers the resolutions. And although Virginia code may allow for the bidding, the council members -- four are business owners -- will have the ultimate say.

Mayor Randy Foley said he saw advantages and pitfalls. He declined to say how he planned to vote, but said passing the measure only opened up the bidding process.

"This only allows them to bid" on city contracts, Foley said. "That doesn't mean they're going to get them."