Anchorage Assembly rejects $550K Demboski legal settlement, opts to pay out MacAlpine

The Anchorage Assembly on Tuesday rejected paying $550,000 toward a settlement with former Municipal Manager Amy Demboski, who alleged numerous illegal and unethical activities by Mayor Dave Bronson’s administration after she was fired in December.

But, the body unanimously agreed to pay $277,500 for a legal settlement with another former employee, Heather MacAlpine, who alleged she was fired illegally.

Most community members who testified at the Assembly’s Tuesday night meeting opposed paying both settlements. Resident William Burke said it’s unfair to make taxpayers bear the financial brunt of city leaders’ actions.

“The average property taxes in Anchorage is $3,500 a household,” he said. “I’m a lifelong conservative… 232 households are going to have to pay for this.”

For MacAlpine, former director of the city’s Office of Equal Opportunity, the settlement agreement comes almost a year after she sued Bronson’s administration for wrongful termination. She alleged her firing was retaliation for investigating workplace complaints against the mayor’s ally and former library deputy director Judy Eledge. 

Demboski has not yet sued, but laid out her concerns in a letter to city leaders, and asked for a written apology and settlement to avoid going to court.

Assembly vice chair Meg Zaletel said she was frustrated about having to weigh the payouts over alleged actions by the mayor and his administration. However, she warned that going to court could be more costly. 

“We have to weigh the pros and the cons of what this could cost, what the Demboski allegations could cost, if it were to be litigated, against this settlement,” Zaletel said.

South Anchorage Assembly member Zac Johnson opposed paying Demboski, and said it’s important for the facts of her claims to come out in court.

“It’s hard to put a price tag on the truth, and the reality is that I believe if we settle this today, then that is the end of the question, and the veracity of Mrs. Demboski’s claims will never be tested,” he said. “I don’t know if everything she alleged actually happened, but whether it did or didn’t matters to me. If her claims were false, let’s establish that. But if they’re true than we also need to know that.”

Assembly members voted 8-4 in opposition to paying for Demboski’s settlement, with Zaletel, Kevin Cross, Randy Sulte and Scott Myers in favor. The Assembly members voted in favor of MacAlpine’s settlement unanimously, largely citing her desire to settle. 

According to the settlement agreement signed by MacAlpine, the money does not prevent her from filing a charge or participating in an investigation by the Equal Employment and Opportunity Commission. MacAlpine currently works in the Anchorage ombudsman’s office.

The Assembly also unanimously approved an ordinance requiring information on the city’s future legal settlements be made public, including the nature, amounts and people involved.