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HomeMy WebLinkAboutOrdinance No. 3469-2025AMENDED BY SUBSTITUTION ./ Sponsored by: Council Member Douthit CITY OF KENAI ORDINANCE NO. 3469-2026 AN ORDINANC AMENDING KMC 1.85.060-CONFLICTS OF INTEREST PROHIBITED, TO ALLOW MUNICIPAL OF ERS AND CITY EMPLOYEES TO PARTICIPATE IN CERTAIN SALES OPEN TO THE PUBLIC THRO GH A PUBLIC PROCESS AND NARROWING THE EXISTING PROHIBITION ON PURCHASES TO PE 5ONAL PROPERTY ITEMS. WHEREAS, in 2008, KMC'.85.060-Conflicts of Interest Prohibited, was last amended by Ordinance 2319-2008, to include a prohi 1tion prohibiting municipal officials and employees from acquiring surplus or unneeded property of the City; and, WHEREAS, the available legislate history indicates the intent of Ordinance 2319-2008 related to prohibitions on acquiring City propert was to prohibit municipal officers and employees from bidding on items in the City's annual surplus aucti , however the provision can be interpreted to prohibit municipal officers or employees from acquiring an ing from the City whether it be personal or real property which is broader than necessary to protect t public interest and could have unnecessary adverse consequences; and, WHEREAS, while it is in the City's best interest have laws regarding conflicts of interest and ethics that hold government officers and employees re onsible and provide transparency for the public, employees and municipal officers should not be pro h ited from all arms -length transparent public sales made generally available to the public; and, WHEREAS, the proposed amendment continues the pr ibition against biding in the City's annual surplus auction, and also strikes a reasonable balance by al wing municipal officers and employees to purchase real property from the City when offered to the gener ublic in an arms -length transaction and the employee or officer has no information regarding the grope or sales process that is not available to the general public. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF TH CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. Amendment of Section of Kenai Municipal Code 1.85.060: hat Kenai Municipal Code, Section 1.85.060, Conflicts of Interest Prohibited is hereby amended as follow 1.85.060 Conflicts of Interest Prohibited. (a) A municipal officer, appointed commission member, or employee of the Cit of Kenai may not solicit or receive money for advice or assistance given in the course of their offi 'al 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 me' e er may represent a client before a commission or the City Council for a fee if it does not involve a atter that is/was before the member's commission. (c) A municipal officer, appointed commission member, or employee of the City of Kenai may nN accept a gift, loan, gratuity, or other valuable consideration, or a promise of any of them, with the New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3469-2025 Page 2 of 3 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 ,agreement that the officer or employee will, in his or her official capacity, act in a particular manner tb,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 do indirect financial interest. Direct or indirect financial interests shall be disclosed to the presiding pfficer 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""fficer may be overridden by a unanimous vote of the members present, exclusive, of the member presenting the possible conflict. (1) Whether the `drect or indirect financial interest is substantial shall be determined by the presiding officer, n a case -by -case basis, with evaluation of these factors: (i) Whether the ' ancial interest is a substantial part of the consideration; (ii) Whether the fin �cial interest directly and substantially varies with the outcome of the official action; �. (iii) Whether the fenanciakpterest is immediate and known or conjectural and dependent on factors beyond the offici6t action; (iv) Whether the financial or pate interest is significant monetarily; (v) Other factors deemed appropr to by the presiding officer under the specifics of the disclosure and the nature of the actio taken before the council or commission. (e) A municipal officer, commission member or emp yee of the City of Kenai may not use, or permit others to use, any property owned by the City for ofit or personal use or benefit, except: (1) When available to the public generally, or to a bass of residents, on the same terms and conditions; (2) When permitted by written personnel policies approved\Oy 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 sell 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's 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 act n. This restriction on employment after leaving municipal service does not prohibit the Ci from contracting with a former City employee, commissioner or municipal officer on a matter on b60alf of the City. The City Council may waive application of this restriction by motion upon determinate that a proposed action is not adverse to the public interest. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3469-2025 Page 3 of 3 (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 officers and employees may bid or propose on real property sales, or other interests in real u 'c and my not acquire Property in which they were in a position to obtain information not avail le to the general public with reoard to the orooerty itself or process of sale. Q) A curren or former municipal officer, commissioner or employee may not disclose or use information ained in the course of, or by reason of, the person's official duties that could reasonably r uIt in the receipt of any substantial personal or substantial financial benefit for the person or his o er immediate family member unless the information has also been disseminated to the public. (k) A current or former nicipal officer, commissioner or employee may not use or disclose without appropriate authorizati , information acquired in the course of official duties that is confidential. (1) If any section or provision f this ordinance is held to be contrary to law by a court of competent jurisdiction, that section or p vision shall be deemed invalid. All other sections and provisions of this chapter shall continue in f I force and effect. (m) The City Clerk shall cause a co\eployee s section to be distributed to every municipal officer, commissioner and employee of tf Kenai within thirty (30) days after its enactment. Each municipal officer, commissioner aelected, appointed or engaged thereafter shall be furnished a copy before entering duties of his or her office or employment. Section 2. Severability: That if any part or pro'sion of this ordinance or application thereof to any person or circumstances is adjudged invalid by any urt of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, plic or ation directly involved in all controversy in which this judgment shall have been rendered, and shall of affect or impair the validity of the remainder of this title or application thereof to other persons or circu tances. The City Council hereby declares that it would have enacted the remainder of this ordinan a even without such part, provision, or application. Section 3. Effective Date: That pursuant to KMC 1.15.070(f), th4 ordinance shall take effect 30 days after enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, TH1,,�,7T" DAY OF MAY, 2025. ATTEST: Michelle M. Saner, MMC, City Clerk Brian Gabriel Sr., Introduced: Enacted: Effective: New Text Underlined; [DELETED TEXT BRACKETED] April 6, 2025 May T,2025 June 6, 2=5 K E NA' City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 wwwkenaixity jj1:41,MZT.A\I:IBill ji1 TO: Mayor Gabriel and Council Members FROM: Alex Douthit, Council Member DATE: April 8, 2025 SUBJECT: Ordinance 3469-2025 - Amending KMC 1.85.060-Conflicts of Interest Prohibited, to Allow Municipal Officers and 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. Kenai Municipal Code 1.85.060-Conflicts of Interest Prohibited, provides numerous limitations on municipal officials (Council members, Mayor, planning and zoning commission members, City Manager, Clerk and Attorney) and employees regarding their interactions with the City outside of the official purpose of their engagement with the City. It is in the City's best interest to have laws regarding conflicts of interest and ethics that hold government officers and employees responsible and provide transparency for the public. However, when KMC 1.85.060 was last amended in 2008 by Ordinance 2319-2008, new language was added that can be interpreted to be overly broad and have unnecessary consequences. The 2008 Ordinance added a new section that reads: (i) A municipal officer or employee of the City of Kenai is prohibited from bidding upon or otherwise obtaining any property which is unneeded or surplused by the City. While the minutes from the meeting when the Ordinance was passed indicate the intent was to prohibit Kenai municipal employees and officials from bidding on items in the City's surplus auctions where unneeded personal property items are sold, ' the language can be interpreted to prohibit employees and officials from purchasing or acquiring anything form the City. This prohibition could include submitting sealed bids on real property offered to the public, participating in outcry auctions, or even buying retail items if the City sold them. Recently the City held an outcry auction for residential property sold to the general public. The City has several new employees, even some that would have qualified for a veteran's discount like other participating veterans, that depending on how 1.85.060(i) is interpreted may not have been able to participate in the auction and build homes in the City on those lots, including employees who had nothing to do with the auction and had no advantage or information that was not available to the general public. See attached exert of June 18, 2008 meeting minutes related to subsection (i). Other municipalities like the Kenai Peninsula Borough allow their employees and officers to purchase land offered by the municipality as long as it is an arms -length transaction and the person does not have special knowledge about the property or transaction. Borough code 17.10.120-Terms of a Land Sale, provides in relevant part: F. Restrictions: 1. A person who is delinquent in the payment of any tax, debt or obligation owed to the borough may not buy, lease, or be authorized for any other use or disposition of borough land. 2. An employee of the Kenai Peninsula Borough is not eligible to acquire land by negotiated sale or negotiated lease. 3. An employee or contractor of the Kenai Peninsula Borough that was in a position to obtain information not available to the general public about the disposal process may not submit an application for a sealed bid sale held under 17.10.100(F) within the final 15 days of the offering period. The proposed amendment narrows the scope of prohibitions in Kenai Code by continuing to prohibit participation of officials and employees in the City's annual surplus property auction or purchase of other personal property, but allows municipal officials and employees to participate in other sales or leases that are available to the general public, except when the property is through a negotiated sale not offered or advertised to the general public or the person was in a position to obtain information not available to the general public with regard to the property itself or process of sale. The proposed amendment intends to continue to hold employees and officials responsible, provide transparency for the public, but not unnecessarily restrict employees and officials from purchasing City owned real property otherwise available for public purchase. Your consideration is appreciated. Page 2 of 2 The City of Kenai I www kenai.city KENAI CITY COUNCIL MEETING JUNE 18, 2008 PAGE 4 Council Member Molloy MOVED to amend the last sentence of subparagraph (h) (page 5 of packet), adding "by motion" between "restriction" and "upon." Council Member Ross SECONDED the motion. VOTE ON AMENDMENT: *Student Representative Johnson: Absent Swarner Yes 1 Smalley Yes Eldridge Yes Ross Yes 1MR-0110y Yes Boyle Yes Porter Yes MOTION PASSED UNANIMOUSLY. MOTION TO AMEND: Council Member Molloy MOVED to amend subparagraph 0) (page 6 of the packet) by deleting "or by action of the Alaska. State Legislature" Council Member Boyle SECONDED the motion. It was explained, new language could be drafted if the Legislature amends Title 29. VOTE ON AMENDMENT: *Student Representative Johnson: Absent Swarner Yes Ross Yes Porter Yes Smalle Yes Eldridge Yes Molloy Yes Boyle Yes MOTION PASSED UNANIMOUSLY. MOTION TO AMEND: Council Member Ross MOVED to amend subparagraph (i) by deleting ", commissioner" after "A municipal officer" and by ending the sentence at ... "surplused by the city" adding a period and deleting the remaining portion of the paragraph. Council Member Swarner SECONDED the motion. It was explained, there was some concern of unfair advantage if an employee would bid on a surplus items and the amendment would eliminate the city manager from making the decision of whether an employee had an advantage. KENAI CITY COUNCIL MEETING JUNE 18, 2008 PAGE 5 Note: The motion to amend was changed, with the consent of the second, to include the removal of ", commissioner" after a brief discussion of concern how such a restriction from commissioners bidding on surplus equipment/item would be policed. VOTE ON AMENDMENT: *Student Representative Johnson: Absent Swarner Yes Smalley_ j Yes Eldridge Yes j Ross Yes Molloy Yes Bo le ; Yes Porter . Yes MOTION PASSED UNANIMOUSLY. Council Member Molloy requested that if a future amendment is made to the ordinance with regard to the legislature, to also include a definition of what is "confidential." VOTE ON MAIN MOTION AS AMENDED: *Student Representative Johnson: Absent Swarner Yes Smalley Yes Eldridge Yes Ross Yes Mollo: Yes Boyle Yes Porter Yes MOTION PASSED UNANIMOUSLY. E-3. Ordinance No. 2320-2008 -- Amending KMC 1.90.030 to Permit Appointment of Up to Two Members to Certain Advisory Boards, Commissions or Committees Who are Non -Residents of the City of Kenai Providing They Work at Least One -Half Time Within the City. MOTION: Council Member Molloy MOVED to enact Ordinance No. 2320-2008 and Council Member Eldridge SECONDED the motion. The floor was opened for public hearing. There being no one wishing to be heard, the public hearing was closed. Council discussion followed during which concerns were expressed with the addition of "up to two" non-residents on a commission/committee would allow a majority of members to be non-residents.