MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

FROM: Pete Sprague, Assembly President

DATE: October 2, 2003

SUBJECT: Ordinance 2003-39 amending KPB Chapter 2.58, Conflicts of Interest

In the past there has been some discussion and confusion about what constitutes conflict of interest when assembly members and borough employees serve on nonprofit and advisory boards. Borough officials often serve on the boards of directors of nonprofit corporations that provide public services within the borough. In addition, they may serve on the boards of nonprofit corporations in seats designated to be filled by representatives of the Kenai Peninsula Borough. This proposed ordinance attempts to clarify the code as well as to eliminate any appearance of a conflict or impropriety by stating that persons serving on nonprofit boards of directors shall be deemed to have a conflict of interest unless such person is appointed to the board by the borough. Your consideration of this proposed change is appreciated.