HomeMy WebLinkAboutOrdinance No. 2929-2016CITY OF KENAI
1ANCE NO. 2929 -2016
Sponsored by: Legal
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC
22.05.100 -SALE PROCEDURE, TO ELIMINATE THE REQUIREMENT THAT THE CITY
UTILIZE A TITLE OR ESCROW COMPANY WITHIN THE CITY FOR CLOSING OF
GENERAL FUND LAND SALES.
WHEREAS, Kenai Municipal Code 22.05.100 -Sale Procedure, requires in relevant part
that closing of sale of City lands shall be handled by a title or escrow company within
the City which specializes in closing of real estate sale; and,
WHEREAS, the municipal code of ordinances already provides for a local preference in
certain competitive procurement processes; and,
WHEREAS, the provision is unique within the municipal code of ordinances and
conflicts with many state and federal grant requirements as well as an open competitive
procurement process; and,
WHEREAS, there are not sufficient resources within the City to allow reasonably
procurement flexibility in fulfilling the existing ordinance requirements.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, as follows:
Section 1. Form: That this is a code ordinance.
Section 2. Amendment of Section 22.05.100 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 22.05.100(a) - Sale Procedure, is hereby amended as follows:
(g) Closing of sale of City lands shall be handled by a title or escrow company.
[WITHIN THE CITY WHICH SPECIALIZES IN CLOSING OF REAL ESTATE SALES]
Section 3. Severability: That if any part or provision of this ordinance or application
thereof to any person or circumstances is adjudged invalid by any court of competent
jurisdiction, such judgment shall be confined in its operation to the part, provision, or
application directly involved in all controversy in which this judgment shall have been
rendered, and shall not affect or impair the validity of the remainder of this title or
application thereof to other persons or circumstances. The City Council hereby declares
that it would have enacted the remainder of this ordinance even without such part,
provision, or application.
Section 4. Effective Date: That pursuant to KMC 1.15.070(fl, this ordinance shall
take effect 30 days after adoption.
New Text Underlined; [DELETED TEXT BRACKETED]
Ordinance No. 2929 -2016
Page 2 of 2
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of
December, 2016.
BRIAN GABRIEL, MAYOR
Introduced: December 7, 2016
Enacted: December 21, 2016
Effective: January 20, 2017
New Text Underlined; [DELETED TEXT BRACKETED[
"Villaye with a Past, C# with a Future"
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014
www.kenai.city
\Z/
MEMORANDUM
TO: Mayor Gabriel and Council Members
FROM: Scott Bloom, City Attorney
DATE: December 1, 2016
SUBJECT: Ordinance No. 2929 -2016, KMC Section, 22.05.100 — Sale Procedure
Ordinance 2929 -2016 is recommended by the Legal Department. The restrictive code
provision requiring the City to utilize an escrow or title company located in the City of
Kenai for real property closings conflicts with an open procurement process in general.
Additionally, many state and federal grants require a fair and competitive procurement
process. Further to the best of my knowledge there is only one escrow company currently
in the City and no title companies. The City already has a general local preference provision
for certain competitive procurements to legal preference for local businesses. Ordinance
2929 -2016 proposes to eliminate the specific requirement of utilizing a business in the City
in for real property transactions.
Your consideration is appreciated.