(a) There is hereby established an Arbitration Panel consisting of twelve (12) members who shall be chosen by the City Council from nominees made by City employees and by members of the City Council.

(b) A member of the Arbitration Panel must be a resident of the City of Kenai and must not hold any other office or position in the government of the City of Kenai.

(c) Members of the panel shall serve for indefinite terms until termination by the Council, resignation by the member, death, move from the City of Kenai, election or appointment as an officer or employee of the City of Kenai, or incapacity of the member.

(d) By adoption of the ordinance codified in this chapter, the city hereby waives any claim or cause of action it might have against any member of the Arbitration Panel based on his or her service thereon or on a Personnel Board. Any employee in the classified service, by filing an appeal under the provisions of this chapter, likewise waives any claim or cause of action such employee might have against any member of the Arbitration Panel based on his or her service thereon or on a Personnel Board, and if requested such employee will execute and file a formal waiver at time of filing appeal.