The Kenai Peninsula Borough Assembly on Tuesday strengthened protections for borough employees and better articulated how public officials can be held accountable for bad behavior.
Assembly members on Tuesday unanimously approved legislation sponsored by Kenai Peninsula Borough Mayor Peter Micciche that overhauls the sections of borough code that discuss employee protection, surety bonds, liability for conduct and indemnification.
The ordinance builds on the borough’s new Sexual Harassment, Bullying, and Discrimination Prevention Policy passed earlier this year, and comes roughly 10 months after the resignation of former Kenai Peninsula Borough Mayor Charlie Pierce, who stepped down last year amid allegations of sexual harassment.
In all, the ordinance passed Tuesday completely repeals six sections of the Kenai Peninsula Borough Code of Ordinances, adds three new sections and replaces two sections.
Kenai Peninsula Borough Attorney Sean Kelley told assembly members Tuesday that ordinance condenses five existing sections of code discussing when employee conduct can be indemnified into one section, and that the new section was moved to a personnel section of code.
It is now codified that borough employees shall be protected from harassment and threatening behavior by members of the public and by borough contractors. Borough code now also says that an employee who commits an offense outside of their scope of employment could be held personally liable for that conduct.
The section of borough code that talks about surety bonds the borough takes out against certain people was also rewritten through the ordinance passed Tuesday. The updated language clarifies what type of malfeasance a bond policy covers and clarifies that employees subject to public official bonds will be determined annually by the borough assembly.
Public official bonds are meant to stymie malfeasance by public officials, and to protect a government and its citizens from such behavior of a public official. The bond compensates parties that have suffered a loss because of the official’s misconduct.
There are two common types of public official bonds: fidelity bonds and faithful performance bonds.
A faithful performance bond guarantees the faithful performance by a public official of their duties, while a fidelity bond indemnifies a loss that results from a financial crime. Because fidelity bonds cover a type of malfeasance, they are covered under the umbrella of a faithful performance bond.
The Kenai Peninsula Borough tried and failed to claim, for example, a bond it had taken out against Pierce. In denying the borough’s claim, the surety company said borough code only described fidelity bonds, not faithful performance bonds, Kelley and Kenai Peninsula Borough Risk Manager Sovala Kisena wrote in May 4 assembly memo.
The borough plans to contest that determination, according to the memo. The ordinance passed Tuesday clarifies that the borough will take out faithful performance bonds for applicable public officials, including the borough mayor.
Kelley told assembly members Tuesday that the legislation is meant to underscore that employees could be held liable for conduct done outside of their official duties. Conduct within their official duties will be held harmless.
“The goal here is to emphasize that conduct and acts that occur outside the scope and course of one’s duties could subject an employee to liability,” Kelley said. “Actions or conduct that are within the scope and course of one’s duties will be indemnified, held harmless and defended as they should be, and the law really requires.”
Tuesday’s assembly meeting can be streamed on the borough’s website at kpb.legistar.com.
Reach reporter Ashlyn O’Hara at ashlyn.ohara@peninsulaclarion.com.
