The Kenai City Council on Wednesday postponed a vote on a proposed ordinance that would allow municipal employees and officials to participate in certain public property sales—so long as those sales are open to the general public and conducted at arm’s length.
Ordinance 3469-2025, sponsored by Council Member Alex Douthit, aims to revise Kenai’s conflict of interest code to clarify that city staff and elected officials can purchase real property offered through publicly advertised sales, such as outcry auctions—provided they have no insider information and the sale is not a negotiated deal behind closed doors.
The city’s current code, last amended in 2008, broadly prohibits municipal officers and employees from acquiring any surplus or unneeded city property. But that language has created confusion, according to a recent memo from city administration, especially in cases where employees have tried to participate in public land sales without any involvement in the process.
“I feel this is important,” said Douthit. “We want the people that work for our city, both with compensation and without, to be able to purchase land and build and develop within our city. This is important to allow the people that are most vested in this community to be able to develop property in it.”
Douthit also pointed out that the Kenai Peninsula Borough already allows its officials and employees to buy land offered publicly, as long as no unfair advantage exists.
But the ordinance raised concerns from several council members, who worried about the perception of ethics, enforcement challenges, and the added influence elected officials may have in shaping land use decisions.
“I’m a no vote on this,” said Mayor Brian Gabriel. “From an optics standpoint, we need to have a perception that there’s no implied conflict of interest… I don’t think it’s worth the perception we’re going to receive from the public if we have council members or municipal officers bidding on this property.”
Gabriel acknowledged that city employees—especially veterans eligible for discounts—might be unfairly restricted under the current code, and said he may be open to an amendment that would allow only employees, not elected officials, to participate.
Council Member Sovala Kisena echoed those concerns.
“There’s a perceived reduction in ethical standards… and some difficulty with enforcement,” he said. “As elected officials, we’re financially compensated to be informed. And while members of the public technically have access to the same information, they don’t have the same ability to act on it. I don’t see a real clear benefit to the public for us to be able to bid on that property.”
The council ultimately chose to postpone a final vote on the ordinance until its next regular meeting on May 21, allowing for further discussion and potential amendments.
The proposed change would continue to ban employees and officials from participating in the city’s surplus personal property auctions—such as office equipment or vehicles—but would allow participation in real estate sales offered openly to the public, as long as no privileged information is involved.
