Assembly concedes and pays former municipal manager a $250,000 settlement for termination

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The Anchorage Assembly voted 8-4 to pay former Municipal City Manager Amy Demboski a settlement of $250,000, payment for the disparaging of her professionalism when she was fired by former Mayor Dave Bronson.

Assembly leftist majority members issued statements that indicated they were not happy they were voting in favor of the settlement, which they had recently voted against. They had reconsidered after going into executive session, where they learned information that was enough to change some of their minds.

“There is no winning here,” said Assembly Chairman Christopher Constant. “We settle, we lose. We lose in court, we lose. We fight to the victory in the court, we lose because the ground we fought upon is tainted. Our best choice is to end the game.”

“I regret not debating this on Friday because conversation is important,” said Assembly Vice Chairwoman Meg Zaletel, after the executive session. “The only way for you to know the thoughts in our head is for us to say them. I believe that if two parties are done fighting, we should let them be done fighting.”

Assemblyman Felix Rivera voted no. He was unhappy with the settlement.

“I said I wouldn’t change my mind no matter what I learned in executive session and I stand by that,” said Assembly Member Felix Rivera in opposition to approval. “I worry about the message this settlement sends to our employees and our constituents. This item is the fiscally responsible thing to do—I don’t disagree with that at all, but I’m not just looking at the numbers here. Two wrongs don’t make a right. We move forward by changing our systems and by making the Municipality a great place to work. Voting yes on this would mean abandoning the values I hold dear.”

“I feel like this is worthy of some debate,” said Assembly Member Karen Bronga as she made the motion to reconsider on the floor. “After my vote, I felt like I had rushed my choice based on previous opinions. More information came to light that made me think we should reconsider the item.”

Some of the allegations were already known when Demboski threatened legal action against the city in January of 2023. But her lawyer Scott Kendall, who was a political foe of the mayor and supporter of opponent and now-Mayor Suzanne LaFrance, added accusations of gender discrimination, retaliation, violations of whistleblower protections, and an inappropriate workplace relationship among members of his staff. Also, the lawsuit claimed, defamation.

The Anchorage Assembly had been asked to settle the lawsuit with Demboski for $550,000, but the liberal majority, knowing this would become key to a campaign against the mayor, decided to refuse paying the agreed-to amount and make it a campaign issue to force.