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Out? French accused of slacking off and browbeating

Suzanne Downing
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Out? French accused of slacking off and browbeating

(2-minute read) BEING REMOVED FROM OIL AND GAS COMMISSION FOR CAUSE

A letter written by Gov. Michael Dunleavy to AOGCC Commissioner Hollis French shows that French has been identified as  being ripe for dismissal from the governing body “for cause.”

That cause is chronic absenteeism and a bad attitude.

The letter gives French a right to defend himself in a publicly heard session, represented by counsel. That counsel has been identified as attorney Kevin Fitzgerald, a reputable defense attorney who represented Mechele Linehan in the notorious murder of Kent Leppink in Hope in 1996.

The charges against French include:

Chronic absenteeism. He is absent from the office without submitting a leave slip and without consulting his fellow commissioners. In his two years as a commissioner, he has received a yearly salary of $145,000 and has only been at work 3.5 to 4 hours per day, despite the 37.5-hour work week that is the agency’s official policy.

Browbeating fellow commissioners. French is accused of not being able to set aside his disagreements with his fellow AOGCC commissioners and has disrupted the commission. While dissent and disagreement are appreciated, Dunleavy wrote, his fellow commissioners are being browbeaten to the extent that they are being undermined.

Publicly undermining the work of AOGCC. French has been publicly promoting views contrary to the commission’s stated position, putting his personal views above those of the agency and damaging the agency’s credibility.

Security breaches. French is accused of disclosing confidential information to the press regarding a test well.

Failure to perform. French has, according to Dunleavy, expressed disinterest in his job and is using his work time to pursue non-work-related interests.

French was to respond to the charges by Jan. 18, and the personnel hearing was to take place on Feb. 6, and end no later than Friday, Feb. 8.

Tim Petumenos is the hearing officer for the case. He was once hired as independent counsel to the Alaska Personnel Board in the dismissal case known as Troopergate,  the July 2008 dismissal of the Alaskan Public Safety Commissioner Walt Monegan by Gov. Sarah Palin.

Must Read Alaska earlier this week attempted to locate the hearing, but was unsuccessful.

Public broadcasting station KTOO had one of the first known copies of the letter, which is now in circulation in political circles. The station got the letter as part of a routine public records request of the governor’s correspondence.

[Read: Where in the world is Hollis French?]

 

 

Where in the world is Hollis French?

Suzanne Downing
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POLITICAL FIGURE HAS BEEN A NO-SHOW

Hollis French, the chairman of the Alaska Oil and Gas Conservation Commission, is missing in action — from the role, at least. Both the Jan. 2 and the Feb. 6 meeting of the commission were cancelled.

Gov. Bill Walker appointed French to the Commission in 2016 and made him the chairman. It was a political appointment, because French had originally run for lieutenant governor along with Byron Mallott. Under pressure from Democrats, he dropped out so that Mallott could be Walker’s running mate under a “unity” ticket that was endorsed fully by the Alaska Democratic Party.

French acquiesced to the party’s wishes, and applied for a judgeship. But he had not practiced law in a courtroom for five years, so that went nowhere. Then Walker found a spot for him as the public commission member on the AOGCC.

But the past two meetings of the commission have been cancelled without explanation.

And when AOGCC was to make a presentation to the Alaska Senate Finance Committee on Jan. 24, the duty fell to the  other two commissioners, Cathy Foerster and Dan Seamount. French was nowhere to be found at the Juneau hearing.

This week a call to the commissions offices by Must Read Alaska discovered that all three of the commissioners, who run the day-to-day operations at the commission, were busy in a private meeting all week, the location of which was not disclosed by the phone answerer.

The word in Juneau is that he has been dismissed by the governor, “for cause.” Cause is the only way the governor can remove French from the commission.

The AOGCC is the state’s regulatory agency established under the Alaska Oil and Gas Conservation Act. It oversees oil and gas drilling, development and production, reservoir depletion, and metering operations on all lands subject to the state’s police powers.

Its mission is to protect the public interest in exploration and development of Alaska’s valuable oil, gas, and geothermal resources through the application of conservation practices designed to ensure greater ultimate recovery and the protection of health, safety, fresh ground waters and the rights of all owners to recover their share of the resource.

The quasi-judicial agency’s commissioners earn $140,000 per year.

French is a former state senator who served from 2003 to 2015, representing downtown Anchorage. He ran for governor unsuccessfully in 2009, losing in the primary to Ethan Berkowitz.

[Read: Hollis French gets confirmed, but with drama.]

Document circulates: Knopp was a Democrat for decades … until he ran for office

Suzanne Downing
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18
Document circulates: Knopp was a Democrat for decades … until he ran for office

(2-minute read) HE’S THE 21ST VOTE NEEDED FOR A REPUBLICAN CAUCUS IN THE HOUSE

Rep. Gary Knopp, the self-appointed negotiator between the Alaska House as Republicans and Democrats try to determine a power structure, has a leg in both camps.

He was a registered Democrat when he came to Alaska in 1984, and didn’t register to be a Republican until 2010, the same time he got involved in running for office in a strong Republican district.

Documents acquired from the Division of Elections show that he registered on April 20, 1984 as a Democrat, and remained one for 24 years, until March of 2010. This document is making its way across the Kenai Peninsula and appeared in the emails of legislators as early as yesterday:

Knopp began his switch-hitting political career on the Kenai Peninsula Borough, elected first in 2006. He rose to become borough Assembly president, and at that time changed his registration to Republican.

Knopp ran as a Republican for the House of Representatives in 2014 against fellow Republican Kurt Olson, but lost.

When Olson retired, Knopp won the seat in 2016, and again in 2018. He ran unopposed last year because in this strongly Republican district, his conservative voters knew him as a Republican incumbent, and the Democrats didn’t want to waste their money in the General Election — they had other fights to join around the state.

The record shows Knopp didn’t start voting until 2014, but the report from the Elections Division only goes back five years. Other sources show Knopp voted as early as 2010, 26 years after he had moved to Alaska.

Knopp was initially a member of the Republican majority when it formed the day after the November General Election, with Dave Talerico as Speaker.

But the caucus dropped to 20, splitting evenly with the Democrats, when Knopp surprised his Republican colleagues by divorcing himself from the caucus.

Since then, as the 21st vote needed to own the majority, he has instead worked to form a bipartisan working group that would have him in some kind of leadership role under Bryce Edgmon as speaker.

He has alternately worked to create a 50-50 power-sharing agreement between the Democrats at one end of the hall, and Republicans at the other end. As of this writing, no majority has been formed, even though there are 23 elected Republicans.

REPUBLICAN REGISTRATION: PARTY OF CONVENIENCE?

Another political switch hitter is Rep. Gabrielle LeDoux, the representative for Muldoon and JBER who has been elected as a Republican but organized with the Democrats in 2016 in order to help them enact an income tax.

But 19 years ago, LeDoux ran for State House as a Democrat in Kodiak in 2000, losing in the general election to Republican Gary Stevens. She changed her party registration in 2004, ran again, and then moved to District 15, where the turnout is low and her odds of winning were better.

Louise Stutes of Kodiak is the third Republican who caucuses with the Democrats.

On Tuesday evening, the House was still split, 20-20, and Knopp has now voted twice against Republican Dave Talerico as Speaker. LeDoux and Stutes did the same.

[Read: Eastman pulls a surprise, but Knopp votes against Talerico as Speaker]

Tom Boutin named new head of AIDEA

Suzanne Downing
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Tom Boutin named new head of AIDEA

The Alaska Industrial Development and Export Authority agency has a new chief executive director: Tom Boutin of Juneau.

Boutin spent more than 17 years in state government, but also had a career spanning 30 years in the private sector, much of it in timber and aviation. He was deputy commissioner of the Department of Revenue, and was the State Forester for Alaska from 1993 through 1997.

Tom Boutin

In the 1980s, he was the manager of Alaska’s public debt, issuing securities and working to preserve Alaska’s bond rating.

For 14 years, Boutin represented a manufacturer of firefighting aircraft throughout the United States and was a lobbyist in Juneau, representing several companies. He was the chief financial officer and president of a timber firm in Southeast Alaska.

Boutin has an MBA in finance from the University of Oregon, and a forestry resources undergraduate degree from the University of New Hampshire.

AIDEA was created by Alaska Legislature in 1967 to provide affordable financing for Alaskan businesses to expand the economy of the state and provide jobs for Alaska. Since its formation, it has paid over $392 million in dividends to the State’s General Fund from the millions of dollars in loans, and revenue bonds it has issued to advance industrial infrastructure and enterprise.

Boutin served on the AIDEA board for 13 years. He also once worked as a tree faller for Gildersleeve Logging and for Owens Drilling at Whale Pass, on Prince of Wales Island, where Gov. Michael Dunleavy first worked in Alaska.

Boutin was appointed by the Board of Directors to the position during a meeting this afternoon.

He replaces John Springsteen, who will be the Chief Operating Officer at AIDEA assigned to the Department of Commerce to bring AIDEA’s financing expertise to Gov. Dunleavy’s newly created economic development team.

OMB Director to Ortiz: Stop mansplaining, please

Suzanne Downing
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OMB Director to Ortiz: Stop mansplaining, please

An information meeting called by Rep. Daniel Ortiz gave House members a chance to hear from the Office of Management and Budget on Thursday. The topic was the supplemental budget, SB 39.

Democratic lawmakers took over most of the seats before Republican lawmakers could get in the room, and when the presentation started, they peppered the director of OMB with questions.

Rep. Daniel Ortiz, OMB Director Donna Arduin

The questions all started with the phrase, “Do you understand…” They were trying to express their displeasure with the supplemental budget request that included a $20 million shift of funds from the Department of Education to the earthquake recovery fund, and they were trying to impress upon Budget Director Donna Arduin that she didn’t understand what an impact a $20 million cut would have to the $1.2 billion education budget.

Finally, the budget director had enough. Arduin said, “Rep. Ortiz, I would appreciate it if you would stop asking if I understand things. It is a little pejorative.”

Later in the hearing, when Ortiz was closing the meeting, he apologized.

House reaches new normal: Suspend the rules

Suzanne Downing
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0

(3-minute read) THE ERODING OF THE UNIFORM RULES

As the Alaska House of Representatives moves into its 23rd day of being rudderless, a new sense of normalcy has set in.

Nome Rep. Neal Foster is the Speaker Pro Tem, and Anchorage Rep. Chris Tuck occupies the seat for the House Majority Leader, controlling the action on the floor, to a large extent. For those watching at home, Democrats appear fully in control of the floor. Tuck is the first to speak. He’s the one who introduces the maker of the prayer, the leader of the pledge of allegiance. He makes the motions to adjourn.

Republican Chuck Kopp of Anchorage, who sits farther back in the Chamber, has to dash to the front to monitor and manage the affairs of the Republicans, when an “at-ease” request  brings someone’s concerns to the front for private discussion.

Dozens of power combinations have been proposed to create structure in the House, insiders say, but none of them has gotten the support needed by Republicans, who have lost three of their members to the Democrats — Gary Knopp of Kenai, Gabrielle LeDoux of Anchorage, and Louise Stutes of Kodiak.

Democrats also have held firm against giving up the Speaker’s gavel to the party that won more votes: In the General Election, Republican House members took 125,000 votes to Democrats 113,000.

Rep. Knopp is now attending the caucus meetings of the Democrats but also serving as the go-between, and there’s a deal in the works that each side is said to be voting on today.

And then there are the Uniform Rules.

The House suspended Uniform Rules to allow it to meet in joint session with the Senate three separate times next week, to hear speeches from Sen. Lisa Murkowski, Sen. Dan Sullivan, and Chief Justice of the Alaska Supreme Court Joel Bolger.

Without a power structure to determine order in the House, the suspension of rules may continue and broaden.

The power-sharing agreement that is in play may work by uniting moderates of both parties; there are some Democrats who are arguably more conservative than some of the Republicans.

But it’s almost certain to put the most conservative members in a bind as they decide whether they’ll join a bipartisan caucus and try to work from within, or be relegated to a broom closet.

This is not going to be an easy decision for members like George Rauscher, District 9; Cathy Tilton, District 12,; Sharon Jackson; District 13, or Kelly Merrick, District 14, to name a few from Alaska’s conservative strongholds.

[Uniform Rules currently in effect]

Ratings agency throws shade on governor’s dividend payback plan

Suzanne Downing
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Ratings agency throws shade on governor’s dividend payback plan

FITCH ALSO NOT KEEN ON CONSTITUTIONAL AMENDMENTS

One of the major ratings services has flagged the three constitutional amendments proposed by Gov. Michael Dunleavy as actions that could erode the state’s current credit rating.

Fitch Ratings said that the amendments, if passed, may harm the state’s ability to proactively manage its financial operations and “could result in negative pressure on the state’s Long-Term ‘AA’ Issuer Default Rating (IDR)/Stable Outlook.”

Fitch has not seen the expenditure side of the story, or may be unconvinced it can be achieved.  Although the analysts understand Alaska has been living beyond its means for a long time, they sounded the alarm without having a full picture of what the budget will look like when it’s signed into law later this year.

Credit ratings affect how much the State has to pay when it borrows money, as it intends to do later this year to pay some $740 million in debts, such as oil tax credits.

The State’s credit rating tanked in 2015 when oil prices dropped and the Walker Administration did not bring spending down to reflect declining oil revenues.

The three proposed constitutional amendments would require voter approval for any new or increased taxes; would enshrine the Permanent Fund dividend formula into the Alaska Constitution, and place a real spending cap on spending. Permanent Fund dividends would be paid first, before funds were available for state programs.

“Fitch believes the enactment of these amendments, which require approval by two-thirds of each legislative chamber and a state-wide vote, could weaken assessments for key rating drivers related to budget control (i.e., independent legal ability to raise revenues, expenditure flexibility, financial resilience, and budget management), and therefore, exert pressure on the ‘AA’ IDR for the state.

“Removing legislative discretion over the PFD formula alone would require a $1.9 billion dividend payment to residents in fiscal 2020, well ahead of the $1.2 billion payment proposed by the prior governor in his $6.9 billion executive general fund budget.

“Barring other offsetting action, this would result in a more significant draw on the approximate $16 billion PF Earnings Reserve (PFER) than currently expected. The maintenance of reserves is a significant rating consideration for Alaska given the volatility inherent in the economic and resource base,” the company said.

Fitch noted that Gov. Dunleavy has also submitted separate legislation to pay back Permanent Fund dividends that were taken by the previous administration.

“Passage would result in larger PFD payments from the PFER for eligible residents in fiscal years 2020 through 2022. The state estimates restoration payments would total a maximum of $2.3 billion based on proposed eligibility guidelines.

Under the Permanent Fund Protection Act of 2018, the state established annual draws on the fund’s earnings reserve account to patch projected budget gaps.

Fitch predicted at the time that the earnings reserve account would eventually be depleted under the plan. The payback of the Permanent Fund dividends  “would be expected to escalate depletion of the PFER, barring other moves to reduce the anticipated use of PFER funds to support general operations.”

Gov. Dunleavy’s fiscal 2020 budget proposal is due on Feb. 13. That’s when the $1.6 billion in state spending cuts is expected to be revealed. Dunleavy has stated that he’ll bring spending in line with revenues, and any additional spending for government services will need to be proposed by the Legislature, along with a way to pay for them.

[Read: Alaska’s credit ratings information at Alaska.gov]

 

Final list of Anchorage candidates

Suzanne Downing
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2
Final list of Anchorage candidates

(2-minute read) SOME DROP, SOME DON’T; HERE’S WHO STAYED IN

Today was the deadline to drop out for those who filed to run in the April 2 Anchorage municipal elections.

Clayton Trotter dropped from his candidacy for the District 2, Seat A, representing Eagle River. That puts Republican Crystal Kennedy in a clear advantage over Democrat Oliver Schiess in this strongly Republican neighborhood.

For School Board Seat A, James Smallwood has dropped, leaving a two-way race between Republican Kai Binkley Sims and Margo Bellamy, undeclared.

For School Board Seat B, Paul Hatcher withdrew, but there are three candidates left: Ronald Staffer (undeclared) and David Nees (Republican) are trying to unseat Starr Marsett, the Democrat incumbent. A three-way race favors the incumbent.

Candidates for Assembly – 3-year terms

District 2 – Seat A – Eagle River/Chugiak: 

Kennedy, Crystal

Schiess, Oliver

District 3-Seat D – West Anchorage:

Vasquez, Liz

 Darden, Dustin

Perez-Verdia, Kameron

District 4-Seat F – Midtown Anchorage:

Zaletel, Meg

Hill, Christine

Alleva, Ron

District 5-Seat H – East Anchorage:

Dunbar, Forrest

District 6- Seat J- South Anchorage:

Weddleton, John

Candidates for School Board – 3-year terms

School Board Seat A:

Binkley Sims, Kai

Bellamy, Margo

School Board Seat B:

Marsett, Starr

Stafford, Ronald

Nees, David

Candidates for Service Area Board of Supervisors, including LRSA (limited road service) Seats: 

Fuller, Deanne – Bear Valley, Seat B

Stoltze, Bill – Chugiak Fire, Seat C

Glover Jr., James – Girdwood Valley, Seat C

Martin, Michele “Shelly” – Glen Alps, Seat C

Marks, Roger – Glen Alps, Seat D

Price, Allen – Lakehill, Seat A

Leary, Collin – Mt. Park/Robin Hill, Seat E

Haywood, Harry – Sect. 6/Campbell Airstrip Rd, Seat D

Trueblood, Ted B. – Sect. 6/Campbell Airstrip Rd, Seat E

Valantas, Robert – Sequoia Estates, Seat C

Wallow, Brian – Skyranch Estates, Seat C

Jorgensen, Lawrence – Talus West, Seat C

Marcy, Ruth A. – Totem, Seat A

Dwiggins, Leon – Upper Grover, Seat C

Pease, David – Upper O’Malley, Seat C

Strand, Paul – Valli Vue, Seat C

WHAT TO KNOW IF YOU’RE NEW

Anchorage votes by mail. If you’re new to the Anchorage or if you moved recently, you could miss getting a ballot. The ballots are mailed out 21 days before Election Day, approximately March 20. Traditional polling locations are not available, but there will be a couple of accessible voting places for people who need help.

Residents with questions about Vote by Mail can call the Voter Hotline at 907-243-VOTE(8683), or may email [email protected], or visiting muni.org/elections.

To vote in a Municipal election, you must be registered to vote and your registration must be where you actually live, otherwise you won’t receive a ballot. The deadline for Voter Registration updates for the current election is Sunday, March 3, 2019.

Voter registration information is here.

SB 32 gets tough on druggies, dealers

Suzanne Downing
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(4-minute read) AG CLARKSON EXPLAINS ROLLBACK OF SB91 CRIME BILL

Alaska’s attorney general today gave Senate Judiciary Committee members a primer on one of Gov. Mike Dunleavy’s bills to crack down on crime — Senate Bill 32.

ILLEGAL DRUGS

Attorney General Kevin Clarkson explained how the bill will strengthen Alaska’s laws that address illegal drugs.

SB 32 makes it a felony to possess the most dangerous drugs, such as heroin, methamphetamine, cocaine, fentanyl,  and other drugs.

The change of crime classification from a misdemeanor to a felony will help incentive drug treatment, Clarkson said.

“Drug seizures are increasing every year and the amount of illegal drugs fueling the opioid epidemic is unacceptable,” he told the committee.

As for trafficking drugs, SB 32 returns the crime to being a Class A and B felony from Class B and C levels, as they are now, under SB 91, the problematic crime bill that lawmakers are trying to undo.

SB 32 also removes quantity as an element of the offense of trafficking. This will help prevent drug traffickers from deliberately keeping just under the possession thresholds in order to avoid consequences for the dangerous drugs found on them.

“If they’re trafficking drugs, they’re trafficking drugs,” Clarkson said. The change will allow judges to impose more time in jail for those convicted of drug trafficking.

SB 32 also addresses the manufacture of meth, with “enhanced sentencing” for meth lab operators who are in close proximity to children.

The practical effect of this portion of the bill is limited: In fact, meth manufacturing has moved to Mexico and, as a consequence, domestic meth lab seizures are the lowest they’ve been in 17 years across the country, according to the Drug Enforcement Agency.

But SB 32 will have an impact on sentencing. It will return all sentencing ranges to their pre-SB 91 levels, where the levels were reduced in felony and misdemeanor sentencing under SB 91. This change is to give judges the discretion to impose sentences appropriate to the circumstances of the crime.

TERRORISTIC THREATENING

SB 32 addresses threats such as school shootings by establishing a new crime in Alaska: Terroristic threatening. The bill creates a general threat statute so law enforcement can act sooner when a person threatens to harm others.

Currently, Alaska statute has a significant gap, Clarkson said, which makes it difficult to intervene before a person takes steps to carry through with their threats.

REMOVING ANKLE MONITORS

SB 32 creates a new felony offense for removal of an ankle monitor during the pretrial phase or when in custody on a misdemeanor offense.

With SB 91 releasing many criminals onto the streets who are wearing ankle monitors, it became common knowledge in the criminal community that there was no penalty for removing the monitor. Now, it will be a separate criminal offense.

DNA SAMPLE REFUSAL

SB 32 will make it a class a misdemeanor for a person to refuse to provide a DNA sample upon arrest. Clarkson said that the State wants to enter the samples into a database the DNA Identification Registration System that can help investigators solve other crimes.

“Many will recall that it was the DNA registration system that enabled law enforcement and prosecutors to solve the Bonnie Craig murder,” he said.

GENERAL PROBATION

SB 32 increases the maximum level of general probation to ensure offenders are appropriately monitored.

“Alaskans cannot continue down the path of SB 91,” Clarkson said. “Not when the crime rates continue to increase year after year in all categories. We have to be responsive to the public and to the victims of crime.”

SB 32 is a first step in that process, he said. It’s part of a package of Dunleavy bills that are meant to get criminals off the streets.

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