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HomeMy WebLinkAboutOrdinance No. 3469-2025 Substitute.V Sponsored by: Council Member Douthit KENAI CITY OF KENAI ORDINANCE NO. 3469-2025 (SUBSTITUTE) AN ORDINANCE AMENDING KMC 1.85.060-CONFLICTS OF INTEREST PROHIBITED, TO ALLOW CITY EMPLOYEES TO PARTICIPATE IN CERTAIN SALES OPEN TO THE PUBLIC THROUGH A PUBLIC PROCESS AND NARROWING THE EXISTING PROHIBITION ON PURCHASES TO PERSONAL PROPERTY ITEMS. WHEREAS, in 2008, KMC 1.85.060-Conflicts of Interest Prohibited, was last amended by Ordinance 2319-2008, to include a prohibition prohibiting municipal officials and employees from acquiring surplus or unneeded property of the City; and, WHEREAS, the available legislative history indicates the intent of Ordinance 2319-2008 related to prohibitions on acquiring City property, was to prohibit municipal officers and employees from bidding on items in the City's annual surplus auction, however the provision can be interpreted to prohibit municipal employees from acquiring anything from the City whether it be personal or real property which is broader than necessary to protect the public interest and could have unnecessary adverse consequences; and, WHEREAS, while it is in the City's best interest to have laws regarding conflicts of interest and ethics that hold government employees responsible and provide transparency for the public, employees should not be prohibited from all transparent public sales made generally available to the public; and, WHEREAS, the proposed amendment continues the prohibition against biding in the City's annual surplus auction, and also strikes a reasonable balance by allowing employees to purchase real property from the City when offered to the general public in a transparent transaction and the employee has no information regarding the property or sales process that is not available to the general public. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. Amendment of Section of Kenai Municipal Code 1.85.060: That Kenai Municipal Code, Section 1.85.060, Conflicts of Interest Prohibited is hereby amended as follows: 1.86.060 Conflicts of Interest Prohibited. (a) A municipal officer, appointed commission member, or employee of the City of Kenai may not solicit or receive money for advice or assistance given in the course of their official duties for the City of Kenai. (b) A municipal officer, appointed commission member, or employee of the City of Kenai may not represent a client before the City Council for a fee. However, a commission member may represent a client before a commission or the City Council for a fee if it does not involve a matter that is/was before the member's commission. (c) A municipal officer, appointed commission member, or employee of the City of Kenai may not accept a gift, loan, gratuity, or other valuable consideration, or a promise of any of them, with the understanding or agreement, expressed or implied, that he or she will cast a vote.or given an opinion, decision, or judgment in a particular manner, in a matter, question, cause, or proceeding which then is or may by law come or be brought before him or her, or with the understanding or New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3469-2025 Substitute Page 2 of 3 agreement that the officer or employee will, in his or her official capacity, act in a particular manner to produce or prevent a particular result. (d) No Council or commission member may vote on any question in which he or she has a substantial direct or indirect financial interest. Direct or indirect financial interests shall be disclosed to the presiding officer prior to a vote on the question and the presiding officer shall determine whether the financial interest exists and whether the prohibition from voting is applicable. A decision by the presiding officer may be overridden by a unanimous vote of the members present, exclusive, of the member presenting the possible conflict. (1) Whether the direct or indirect financial interest is substantial shall be determined by the presiding officer on a case -by -case basis, with evaluation of these factors: (i) Whether the financial interest is a substantial part of the consideration; (ii) Whether the financial interest directly and substantially varies with the outcome of the official action; (iii) Whether the financial interest is immediate and known or conjectural and dependent on factors beyond the official action; (iv) Whether the financial or private interest is significant monetarily; (v) Other factors deemed appropriate by the presiding officer under the specifics of the disclosure and the nature of the action taken before the council or commission. (e) A municipal officer, commission member or employee of the City of Kenai may not use, or permit others to use, any property owned by the City for profit or personal use or benefit, except: (1) When available to the public generally, or to a class of residents, on the same terms and conditions; (2) When permitted by written personnel policies approved by the City of Kenai; (3) When, in the conduct of official business, used in a relatively minor way for personal convenience. (f) A municipal officer, commissioner or employee of the City of Kenai shall not take or participate in official action on matters, other than minor or routine issues, affecting a former employer for a period one (1) year from the date of termination of the prior employment. (g) A City employee may not participate in an official action in which he or she, or a member of his or her household, has a substantial financial interest. (h) A municipal officer, commissioner or employee of the City of Kenai who leaves municipal service may not for one (1) year after leaving municipal service, represent, advise, or assist a person for compensation regarding a matter that was under consideration by the City if the person participated personally and substantially in the matter through the exercise of official action. This restriction on employment after leaving municipal service does not prohibit the City from contracting with a former City employee, commissioner or municipal officer on a matter on behalf of the City. The City Council may waive application of this restriction by motion upon determination that a proposed action is not adverse to the public interest. (i) A municipal officer or employee of the City of Kenai is prohibited from bidding upon or otherwise obtaining any personal property items which [IS] are unneeded or surplused by the City. Municipal employees may bid or propose on real property sales, or other interests in real property. when New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3469-2025 Substitute Page 3 of 3 offered to the general oublic. A municipal employee cannot acquire a real property interest through a negotiated sale or lease not available or advertised to the general public and may not acquire property in which they were in a position to obtain information not available to the general public with regard to the property itself or process of sale. Municipal Officers may not submit bids, proposals, or otherwise purchase real property from the City. Q) A current or former municipal officer, commissioner or employee may not disclose or use information gained in the course of, or by reason of, the person's official duties that could reasonably result in the receipt of any substantial personal or substantial financial benefit for the person or his or her immediate family member unless the information has also been disseminated to the public. (k) A current or former municipal officer, commissioner or employee may not use or disclose without appropriate authorization, information acquired in the course of official duties that is confidential. (1) If any section or provision of this ordinance is held to be contrary to law by a court of competent jurisdiction, that section or provision shall be deemed invalid. All other sections and provisions of this chapter shall continue in full force and effect. (m) The City Clerk shall cause a copy of this section to be distributed to every municipal officer, commissioner and employee of the City of Kenai within thirty (30) days after its enactment. Each municipal officer, commissioner and employee elected, appointed or engaged thereafter shall be furnished a copy before entering into the duties of his or her office or employment. Section 2. 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 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after enactment. % ! A ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, T+;RS 21ST ATTEST: J � Z. Z14. . Michelle M. Szfner, MMC, City Clerk Vice Mayor Introduced: April 16, 2025 Enacted: May 21, 2025 Effective: June 20, 2025 New Text Underlined; [DELETED TEXT BRACKETED] KFNA City of Kenai 1 210 Ficlalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 wwwkenai.city MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Alex Douthit, Council Member DATE: May 14, 2025 SUBJECT: Ordinance No. 3469-2025 Substitute - Amending KMC 1.85.060- Conflicts of Interest Prohibited, to Allow City Employees to Participate in Certain Sales Open to the Public Through a Public Process and Narrowing the Existing Prohibition on Purchases to Personal Property Items. The Substitute Ordinance incorporates changes discussed by the Council at the May 7, 2025 Council Meeting. It limits the ability to purchase City real property to nonconflicted employees, excluding previously included municipal officers. It also removed the words "arms length" from the WHEREAS clauses. Your consideration is appreciated.