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Haines recall election is Tuesday

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In Haines, the politics is unusually contentious this summer.

And that’s saying a lot for a city that has been through at least 14 city managers in 14 years, four school superintendents in four years, and which has a revolving door on its assembly. This year, the assistant harbormaster and the tourism director quit, and so did two assembly members — Margaret Friedenauer and Mike Case — following the controversial appointment of Debra Schnabel as the latest in the parade of borough managers.

Tuesday, voters will decide if three of the six Assembly members should be recalled: Tresham Gregg, Heather Lende and Tom Morphet.

Two of them are accused of exerting undue pressure on the police department.

Morphet, who until recently owned the local newspaper, the Chilkat Valley News, ran for assembly and won a seat, while retaining his role as a member of the media.

Lende, an author who also writes obituaries for the Chilkat Valley News, also won a seat.

Those two picked a fight with the police chief when he didn’t provide the newspaper with a police blotter.

The chief said it was very time consuming to write the blotter each week and in his judgment it was not a good use of his staff’s limited resources. But Lende and Morphet pressured him — and some in the community felt it was wrong to do so, since the two had a financial interest in the paper where the blotter is printed.

Morphet is also accused of making public accusations against specific employees of the police department, a violation of their employee rights.

The third allegation has to do with a series of emails between assembly members, where they appeared to be making a secret pact on how they would vote in an upcoming meeting. That could be a violation of the spirit of the Alaska Open Meetings statutes.

UNION STEPS IN TO PROTECT POLICE FROM ASSEMBLYMAN

While a Haines Voters Against the Recall Facebook page was launched this summer, another Facebook page, Haines Votes for the Recall, was also launched.

A public employees union has also weighed in on Facebook, specifically on the recall of Tom Morphet, saying he showed a disregard for the privacy rights of two police officers about whom he made unfounded accusations during an open meeting.

Morphet violated the borough’s collective bargaining agreement because the complaints constituted personnel matters, according to Tom Brice, business representative of Local 71, which has a political action committee that has gotten involved. The police officers had the right to an established complaint process, which starts with their supervisor, the police chief, before proceeding to the city manager, mayor and assembly.

Some have objected to the union’s political action committee getting involved, but Brice said that his group has a right to free speech just like anyone else.

“The purpose of this campaign is to inform and continue to bring to light facts about an inappropriate action by an elected official who used their position of power to violate borough code, contract, and due process of Haines Borough Employees,” the according to the union PAC’s Facebook post. “We are not engaging in the wider recall effort regarding Tresham Gregg and Heather Lende because they did not violate the contract between Local 71 and the Haines Borough.”

Morphet maintains he did nothing wrong, although he has also apologized for airing the personnel matters in public. The voting public will decide on Tuesday whether he, Lende and Gregg should be removed.

The regular Assembly election is Oct. 3.

 

 

 

End of an error? Alaska Dispatch bankruptcy, sale details emerge

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FATEFUL WEEK FOR DISPATCH

The news of the Alaska Dispatch News filing for bankruptcy while being sold to a group of longtime Alaskans was well-received by Must Read Alaska readers on Sunday morning. Several sent personal notes saying they plan to subscribe to the newspaper once again.

[Read: Breaking news: Dispatch files Chapter 11 bankruptcy; new owners emerge]

But the deal is not quite done. Alice Rogoff still owns the paper, although she has turned over management entirely to the group formed by the Binkley family and Jason Evans, according to those close to the businesses.

There are several moving parts to a process that will depend on good faith, skilled lawyering, and some amount of luck. It appears the new owners have that, plus longtime relationships in Alaska that will help them. What is unknown is whether the ever-litigious Rogoff will follow through or continue changing directions.

The Binkley-Evans group has been in discussion with Rogoff for several weeks, but they were not the only ones. Morris Communications was also looking at a possible purchase of the Dispatch. Press experts were flown in to examine the mess that Rogoff had, with two of her presses located in an inadequate building on 59th and Arctic, and a old-but-functioning press taking up room in a building now owned by GCI.

[Read: Dispatch gets eviction notice from GCI]

The Morris experts said the mess was too great to untangle without massive investment. It would cost at least $1.5 million to move the press from the GCI building, and the other presses were not ready to roll. Morris backed out. A short time later, the Morris’ sold almost all of their newspapers, including three in Alaska.

But the Binkleys soldiered on, with Jason Evans as a partner, in pressing Rogoff to sell the quickly failing newspaper.

Ryan Binkley and Jason Evans

ART OF THE DEAL

The Binkley-Evans partnership brings together two families with roots that go deep in Alaska. Evans is Inupiaq, born and raised in Nome. The Binkleys are Fairbanks blue blood.

In 2011, Jason Evans and his wife Kiana Peacock purchased the Arctic Sounder, The Dutch Harbor Fisherman and The Bristol Bay Times, which was combined with the Fisherman. The couple purchased the newspapers from Alaska Newspapers Inc, which was owned, operated and eventually liquidated by the Calista Corporation.

The five-generation Binkley family has been running riverboats in Alaska for five generations — over 100 years. In 1898, Charles M. Binkley hiked over the Chilkoot Pass with other stampeders, not in search of gold, but to build and operate boats on the Yukon and other Interior rivers. He became a respected pilot and boat builder in the North. His son, Captain Jim Binkley, Sr., followed in his father’s footsteps and piloted freight vessels on the Yukon and Tanana Rivers in the 1940s. The grandchildren and great grandchildren run the operations today, including the Riverboat Discovery, a 900-passenger tour vessel.

John Binkley, in his early 60s, wanted to buy the Fairbanks News-Miner when it came up for sale in 2015. But Media News Group, the Denver company that owned the paper, sold it to a foundation established by the former owners of the News-Miner.

In the purchase of the Alaska Dispatch News, it’s Ryan Binkley and his siblings, Wade Binkley, James Binkley, and Kai Binkley Sims, and the Alaska Media LLC who make up the new proposed owners.

The group has evidently agreed to the purchase of just the assets of the Dispatch, and they are today filing more documents relating to that purchase with bankruptcy court.

A judge must agree to the conditions.

In consideration, the Binkley family is loaning the company $1 million to keep the company operating until the bankruptcy reorganization can work its way to completion — which could be done within 30-45 days, if the courts agree to expedite it.

[Read: Fake news: ‘Investors’ in the Dispatch]

THREE COMPONENT PARTS

The deal has three major elements, and while Must Read Alaska doesn’t pretend to fully understand the technical nuances of bankruptcy law, those components seem to be the asset purchase agreement, a “debtor in possession” filing, and a Section 363.

The asset purchase agreement is what Rogoff is believed to have signed with the Binkley-Evans group.

Debtor in possession means Rogoff still owns the company, even though she filed for Chapter 11 bankruptcy protection. In this case, she appears to have given over control of all operations to Binkley-Evans, although the debts she owes are hers alone. A judge will have to approve that arrangement, and a court date is likely this week. A debtor in possession filing would be required to complete that temporary arrangement.

Section 363 of the U.S. Bankruptcy Code happens when a business is a distressed asset and has inadequate capital to continue operations. The potential purchaser, in this case the Binkley-Evans group, are willing to provide short-term financing to keep the business alive. The purchaser says it will pay for the assets if they come free and clear of any liens and debts, and this is a method that is part of a quick transaction that keeps the business from going under.

In the case of the Dispatch, the sale agreement can’t be concluded until the bankruptcy process is completed, but the Section 363 is a “stalking horse” position that gives the Binkley-Evans group an advantage for when the business comes out of bankrutpcy and is essentially put up for auction.

At that point, other entities can also bid on it, so it’s no sure deal that the Binkley-Evans ownership will proceed. They are simply in the best position to buy the newspaper now. As part of the DIP filing, the Binkleys have priority for getting their money back.

At this point, all major decisions will need to be approved by the court. Rogoff will next be required to file a complete list of her creditors, and indicate to the court which are secured creditors and which are unsecured.

Where that leaves her other creditors is uncertain. Some of them may get stiffed in Rogoff’s reorganization:

Tony Hopfinger, her former business partner who left in disgust or was fired by Rogoff (they have different sides to that story), has a contract written on a bar napkin: She owes him $900,000.

Northrim Bank has loaned her subtantial amounts of money and, among the pre-existing creditors, appears to be in first position to collect. Numerous contractors, landlords and others are owed what appears to be millions of dollars.

In the meantime, the talk in Must Read Alaska’s circles is that finally, for the first time in a quarter century, Anchorage may get a daily newspaper that doesn’t slant hard to the left.

Breaking news: Alaska Dispatch files Chapter 11, new owners emerge

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Alaska Dispatch News has filed for Chapter 11, the last step before a company goes into bankruptcy. The filing allows the company to reorganize, but apparently it’s changing hands as a part of the deal.

The Dispatch is proceeding under new potential owners led by Ryan Binkley and Jason Evans, from longtime Alaska families. They will be co-publishers until a permanent publisher can be found, the new publishing group said Saturday night. It unclear if the paper has been actually sold, but it’s evident a sale is in the works.

Chapter 11 gives a company protection from creditors for a limited amount of time to allow it to restructure.

Ryan Binkley, Wade Binkley, James Binkley, and Kai Binkley Sims, and the Alaska Media LLC comprise the consortium that would be the new owners, should the court allow the deal to proceed.

Former Anchorage Daily News publisher Jerry Grilly, who retired as president and CEO of the Denver Post in 2012, is consulting with the group. He has been spotted in Anchorage over the past few days.

Dispatch owner Alice Rogoff said in a statement through what is now her former newspaper, “We’ve worked hard to help illuminate the issues of our day and provide a platform for points of view from across Alaska.  Yet like newspapers everywhere, the struggle to make ends meet financially eventually caught up with us. I simply ran out of my ability to subsidize this great news product. Financial realities can’t be wished away.”

In addition to the Chapter 11 protections, the company says it plans to ask the bankruptcy court to allow it to borrow up to $1 million from the potential buyers, a group of Alaskans that include the Binkleys and Evans. The new buyers have been trying to close a deal with Rogoff for some time.

 

Last week, Rogoff told her staff in an email that she was in active discussion with “investors.”

On Friday, after news hit that her newspaper was being evicted from the GCI building on Northway Drive, she described it this way: “GCI is aware that we are in discussions with potential new owners and investors.”

She also told the Alaska Journal of Commerce last week, “Until the discussions are concluded, we are unable to provide any details. Please know that business disputes arise from many causes and are never one-sided. We hope that this matter will be resolved shortly to the benefit of all parties.”

(This story will be updated.)

 

Dispatch gets eviction notice from landlord GCI

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The announcement of the purchase of the Anchorage Daily News by the Alaska Dispatch in 2014.

Today the landlord for the Alaska Dispatch News press operations on Northway Drive finally had enough of Alice Rogoff.

After trying to get the publisher of the Alaska Dispatch News to pay her full rent due for the better part of two years, GCI has asked the courts to help evict her presses from the premises that the telecommunications company bought from her in April of 2014.

The eviction notice, asking the court for its help removing the newspaper, was filed this morning in State Superior Court. The court has granted a hearing date for Aug. 21.

The history of the relationship between Alaska Dispatch News and GCI is laid out in the complaint, summarized here:

On April 7, 2014, the Dispatch, owned and operated by Rogoff, and GCI entered into a sale agreement, where GCI purchased the property, which allowed Rogoff to purchase the newspaper from McClatchy for $34 million.

The payment also included a purchase by GCI of $500,000 in advertising in the Dispatch.

During the sale and after it was completed, GCI maintains it made it clear it needed the entire building, and that the newspaper would need to vacate as quickly as possible.

But realizing how difficult it was to move a press quickly, GCI signed a short-term lease agreement with Rogoff so she could use 89,000 square feet of the building. The arrangement was for nine months for the office portion of the newspaper and 18 months for the warehouse-press portion, which expired in November, 2015.

To impress upon Rogoff the need for her to remove the Dispatch equipment and offices from the premises, GCI placed a holdover rent premium of 250 percent if she didn’t move at the end of the short-term lease.

The total damages that GCI has laid out in its lawsuit against Rogoff and the Dispatch is $1.39 million, but that increases daily with the unpaid electric bills and doesn’t include the cost of the six warehouses that GCI must rent because it cannot use its own building.

“The whole spirit of the negotiations has been the desire of ADN (the Dispatch) to move, and our desire to expedite that process, so we could use the warehouse, pull together the six warehouse facilities that we are renting into one, and use it as an operations and logistics hub for our company,” said Heather Handyside, spokesperson for GCI.

The fact that the Dispatch has not moved, and is now operating its presses in  building where it has not had a lease since December, has been costly to GCI, which has had to rent the six warehouses, Handyside said.

GCI is also alleging that the Dispatch  said it would not or could not pay a series of unrelated invoices totaling $205,558 for work GCI performed on ADN’s new offices on 31st and C Streets, because of a cash flow shortage.

GCI says that in lieu of payment, it agreed to take advertising credits.

Various extensions of the Northway Drive lease were worked out between the two organizations, as described in the eviction notice, and in November, 2016, Rogoff said she was making progress in removing the printing presses from the premises and would vacate Northway Drive by Dec. 15, 2016.

Rogoff had leased space in a warehouse at 59th and Arctic.

[Read: The summer of Alice Rogoff’s discontent]

That move didn’t happen, as the building she had leased was inadequate for press operations and is now part of a lawsuit, because Rogoff has evidently not paid her contractors for the work performed there.

Meanwhile, at the Northway building, the Dispatch continued to refuse to pay the holdover rent premium, again saying it didn’t have the money.

[Read: Deathwatch for the Dispatch?]

GCI is also citing the problems the Dispatch has had paying other contractors, such as Anchorage Sheet Metal and M&M Wiring, which both filed liens against GCI’s Northway property due to bills not paid by the Dispatch. The M&M Wiring lien was released in March, 2017, while the Anchorage Sheet Metal lien, for $4,775, remains on the property.

M&M Wiring now has a lien against the building where the Dispatch was attempting to move, at 59th and Arctic, for work performed there.

The saga continued in 2017, with GCI attempting to get ADN to pay its bills and vacate the premises. Now, GCI says the Dispatch hasn’t even paid the base rent for July for August, 2017, and hasn’t paid GCI for its portion of the utility bill since February.

The electric bills for the Dispatch have been increasing from $29,000 in February to $46,000 in July, according to the eviction complaint, and GCI has paid Municipal Light and Power for the newspaper’s portion of the electricity. It’s costing GCI about $1,500 in Dispatch utilities per day, according to the court filings.

GCI estimates that it will cost the Dispatch about $1.5 million to remove the presses from the building and restore the area to a usable space for the owner.

BREAKDOWN IN NEGOTIATIONS

According to the court filing, GCI has presented alternatives to Rogoff to continue operations and prevent eviction, but none were acceptable to Rogoff.

GCI says that, at the time of filing, Rogoff owes $1,390,180 in base rent, additional rent, overdue fees, and interest.  Plus utilities.

The GCI complaint (lawsuit) includes a claim against Rogoff, personally, seeking to “pierce the corporate veil” of her several layers of limited liability companies and thus hold her personally liable for the debts and related damages.  Alaska law allows this in cases where it can be shown that a person is abusing the corporate veil in order to commit wrongful acts.

Should GCI be successful in holding Rogoff personally liable, her considerable family wealth and her monthly allowances could be brought into play.

[Read: Craig Medred’s “Bad news for the News”]

Opinion: State rushes settlement on Klutina road access

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By DOUG VINCENT-LANG
GUEST CONTRIBUTOR

Congress mandated that traditional access across federal lands be guaranteed for future generations.

Doug Vincent-Lang

This was done by congressionally established rights of way, called RS2477s, across federal lands. In Alaska, these RS2477 rights of ways were maintained, even after lands were transferred to Native groups and other entities. The Alaska Legislature recognized the importance of maintaining these right of ways by mandating that they be identified and protected.

One such right of way is the Klutina RS2477. The Klutina Lake RS2477 road runs southwesterly from Copper Center approximately 25 miles to the mouth of Klutina Lake, generally following the Klutina River.  This right of way traverses Ahtna Native corporation lands.

Ahtna is the owner of most land underlying the road right-of-way and most lands adjacent to the road (landward of the ordinary high water mark).

The people of Alaska — as represented by the State — are owners of the land below the ordinary high water mark of the Klutina River and Klutina Lake. The Klutina RS2477 is important for fishing, hunting, boating, and other outdoor activities that occur from many locations along the road, and has been for generations of Alaskans.

Since 2008, Ahtna and the State have had significant disputes concerning this right of way and its uses in the past and have been engaged in litigation regarding ownership and public use of Klutina Lake Road. The dispute underlying the lawsuit, however, has been ongoing since at least 1999. This summer, the State proposed a settlement to this dispute and lawsuit.

Issues in the proposed settlement affect access to, and opportunities for, traditional uses of public lands and waters, such as hunting and subsistence. Without reasonable access to public lands and waters, hunting, fishing and other activities is seriously jeopardized. This is why the settlement the State is proposing regarding this RS2477 is critical.

Significant issues are raised with this proposed settlement. For example, can the people of Alaska continue to use the right of way as it has traditionally been used for including parking, boat launching and camping?

The answer is that the proposed settlement severely limits these uses. It bans overnight parking and camping, and limits boat launching to two sites. It also bans other uses such as berry picking. It also limits the state’s ability to address what it can do if the right of way is affected by natural erosion events.

INFORMATION LACKING

The State has put its proposed settlement agreement out for public review. Unfortunately, critical materials were not available to inform the public’s decision regarding this settlement. These materials need to be provided and sufficient time needs to be made available to review them.

Given this, the State should extend the comment period. Also, the State should consider briefing the Legislature on this issue, given past Legislative interest and actions on these rights of ways. The State should not be afraid to slow this process down to ensure a good outcome, given that this settlement may form a precedent on how the State deals with future settlements of RS2477 rights of ways.

This issue is not about trespass rights onto adjacent private lands. People using the right of way need to know where private lands begin and respect the rights of the land owners, including the right to prohibit or restrict trespass or use or to charge a fee for use.

Rather, this issue is about what can occur on a state maintained and operated right of way paid for using state dollars.

I encourage readers to research this issue. Materials can be found on the Department of Law web site. Unless the State extends the comment period, the public comments are due by Aug. 30.

Doug Vincent-Lang is a retired biologist who worked with the Alaska Department of Fish and Game for over 30 years.  During his tenure with the department, he served as an Assistant Director for Sport Fisheries and as the Director for Wildlife Conservation.  He currently serves on several boards, including the Alaska Chapter of Safari Club International, the Resource Development Council, and the Outdoor Heritage Foundation of Alaska. The opinions portrayed in this article are his.

Politico shows Walker at head of anti-Trump movement

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Well, this is awkward. Politico Magazine superimposed a large photo of Alaska Gov. Bill Walker at the top of a story about “Anti-Trump Independents.”

And now he’s in damage-control mode.

Quickly, the often-misunderstood governor of Alaska moved to correct the record. While he didn’t say he has an affinity for President Trump, he told KTUU that he has “a very good relationship with the Trump administration.”

He’ll work with any administration, he said, so long as it’s good for Alaska.

“It’s very clear, I’m not an anti-Trump person,” Walker insisted. “I was appointed to the Governor’s Council, one of 10 governors, by the president some months ago on military issues, and about a month ago I was invited to the White House with three other governors to talk about energy projects in their respective states.”

Grace Jang, director of Communications for Gov. Walker, told KTUU that the office has reached out to Politico for a correction. No change to the layout or headline was made by Thursday evening.

Walker had a close relationship with President Barack Obama and was brought into the governor’s office with the financial backing of the Alaska Democratic Party, which dropped their own candidate in order to support Walker. His lieutenant governor, Byron Mallott, is a lifelong Democrat. Although the two call themselves nonpartisans, they align mainly with Democrat platform positions — pro-abortion, anti-development, pro-entitlement spending, pro-tax and supportive of larger rather than smaller state budgets.

The Centrist Project has identified Walker as the model for a new breed of candidate — not aligned with any party, just getting elected on their own merits.

Fake news: ‘Investors’ in the Dispatch

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In a report about the sale of the Morris Communication newspapers to Gatehouse Media, the Alaska Dispatch News labeled Gatehouse a New York “conglomerate.”

Because in some journalists’ view of business, conglomerates are bad things. New York is the media capital of the world. Except when it’s not.

GATEHOUSE NOT A CONGLOMERATE

The definition from Investopedia says a conglomerate is a corporation made up of a number of different, seemingly unrelated businesses. Like Westinghouse, for example. Or Johnson & Johnson. But not Gatehouse, which clearly is a media focused company.

Also, Gatehouse Media is not from New York City, which was the implication. The company is modestly headquartered in the town of Perinton, N.Y., population 47,000.

Gatehouse, which went through bankruptcy reorganization in 2013, reemerged with a new holding company, New Media Investment Group. That is still not a “conglomerate.”

Headquarters of “conglomerate” Gatehouse Media.

In 2007, Gatehouse purchased 14 daily newspapers and other publications from Morris Communications, so the relationship between these companies goes back at least a decade. Both companies have tried to diversify to stabilize their newspaper divisions, with limited success.

Dispatch editors used “conglomerate” as a pejorative to draw a distinction between that and a locally owned newspaper, a not-conglomerate.  Never mind the irony that the Dispatch‘s owner, Alice Rogoff, is married to one of the richest and most successful private investment bankers in the world, whose vast holdings of unrelated businesses make traditional conglomerates look small-time.

WHO WILL BUY THE DISPATCH?

The Morris Communication announcement of the sale of all of nearly all of its news division came as a shock to media professionals, not just because Morris has been a steady company in Alaska for the past nearly 50 years, but it’s also the company that seemed to have the skill and scale to save the Alaska Dispatch News as it founders on debt.

Later in the story about the Morris newspapers, the ADN newswriters took a stab at answering the elephant question in the room — the Dispatch owner’s own financial struggles:

Alaska Dispatch News is dealing with the challenges of the [newspaper] industry as well. ADN owner and publisher Alice Rogoff is ‘in discussions with several potential new investors’ in the company, she told staff in an email last week,” the reporters wrote.

With Northrim Bank having first position on 100 percent of the newspaper assets while it continues to hemorrhage cash, it’s unlikely that Rogoff will find any investors who will pony up funds while allowing her to remain at the helm. There could be a bail out, a buyout, or a bankruptcy reorganization, but  an investor?

Not likely, considering the newspaper’s dire financial straits together with Rogoff’s tendency to both initiate and attract lawsuits.  Here are some recent examples:

  • Immediately after purchasing the newspaper from McClatchy in 2014, Rogoff sued McClatchy over a contract it had with the Associated Press that she inherited with the sale.
  • When she and her business partner Tony Hopfinger broke up in 2015, she allegedly stiffed him for $900,000 and he’s suing her for that contract, written on a bar napkin.
  • Rogoff has recently been sued by her suppliers and contractors.

For the newspaper to report that its owner is in discussions with potential investors is either offering fake news to the readers or reflects naivety on the part of the newsroom.  Our bet is the latter.

“(W)e’ve been challenged by changing economic and financial circumstances, to say nothing of evolving news reading habits,” Rogoff wrote to employees, recently.

Rogoff went on to explain that deliberations with potential investors “are private and must be kept that way, so I cannot comment on their status. The goal is simple: to keep the state’s major newspaper in the business of delivering both printed and digital news of, and for, Alaskans.”

And with that, media observers are waiting for another shoe to drop, perhaps as early as this week.

[Read: The summer of Alice Rogoff’s discontent]

[Read: Craig Medred coverage: Newspaper gone?]

The Socialists’ paradise is nigh

OUR SENIOR CONTRIBUTOR HAS A DARK VIEW OF ALASKA’S FUTURE

ART CHANCE

We’re almost there. Public employee unions are one election away from complete control of the State, and they almost pulled it off in the last election.

Gov. Bill Walker is a dead man walking and his shotgun marriage with the unions/Democrats will end as soon as Mark Begich or some other credible Democrat emerges. Begich is showing signs of running despite protestations to the contrary.

My experience with both unions and Democrats has taught me that if you want to know what they’re doing or planning just watch and listen to what they say they’re not doing or planning.

Sen. Bill Wielechowski is the wild card; if he wins his suit to restore the Permanent Fund, he can be elected governor by acclamation if he wants it.

The Democrats will work that out in some rich person’s living room. As things stand, the next Governor will be a Democrat, the House will remain in Democrat control, and the Senate seems very likely to become Democrat controlled.

The Left and the media, with a lot of help from self-styled “true conservatives” and pro-lifers have done a very good job of demonizing the Republicans in the Legislature.

If the ‘true conservatives’ and pro-lifers hated Democrats as much as they hate Republicans who don’t toe their line, the opposition to the unions/Democrats wouldn’t be so hopelessly fragmented.

The Senate hasn’t done a good job of getting out its message or establishing its image, but Sen. Kelly is right: The Republican majority in the Senate is the only thing that has stood between the citizenry and an income tax, loss of citizen access to the earnings of the Permanent Fund, and punishing oil taxes that will effectively remove the oil industry as a political force in Alaska.

Control of the Senate and complete control of the Governor will allow the Left to assume control of the government with little regard for what those not in their constellation of constituencies thinks about what that government does.

The bulwark of the Left’s support is unionized public sector and Third Sector employees. Contrary to the mythology, there is almost no private sector unionization in the U.S. or in Alaska. What looks like private sector unionized employers are employers that are dependent on the government for their revenue, are heavily regulated by the government, or are government monopolies, e.g., utilities.

Unions have the trades workers on publicly funded projects and work for the crony capitalists who are union contractors so they can get that work.   The merchant mariners in much of the Alaska trade are union because the Jones Act mandates an American bottom and crew.

Utility employees are union because the utilities either belong to a government or are government protected monopolies in which the union and the management are essentially co-conspirators against the taxpayers and rate payers.

Alaska’s public employees are almost all union because the unions lobbied politicians to give them the public employees, not because the employees organized so they could become union.   None of the State’s unionized employees have ever voted in an election in which being non-union was a meaningful choice.

Labor Board regulations require that “No Representative” be a choice on a representation ballot but nobody in State government has ever uttered a word in support of no representation, and everyone in a position to make that utterance meaningfully knows that it would be their career death warrant the minute there was a Democrat government.

Even the initial unionization back in the Seventies really only gave the employees a choice of which union was to represent them, and in some units there was no choice at all; the unions just divvied up the employees among themselves.   In my 20 years with State labor relations there were two representation elections, but they were only elections to decide which union was to represent the group of employees.

There were a handful of representation petitions, but they too were only about carving out specific groups of employees for a separate union.   Union control over State government is so firm that when the leaders of a veto-proof Republican majority in both bodies recoiled from union abuses in the 1996 election and tried to amend the Public Employment Relations Act (PERA) so that it had at least the same protections against union abuses that the federal Labor-Management Relations Act has, the leadership couldn’t get the votes in the House to pass it.

Anchorage is no different; everyone who isn’t a Muni employee should have voted to support AO-37, yet the unions repealed it with a decisive vote.

I’m pretty sure I have more experience with public sector labor relations than anybody in the state and it is my considered opinion that the union grip on governments in Alaska cannot be loosened by ANY democratic process.

Many on the conservative/Republican side talk of right to work legislation; no legislature, whether Democrat or Republican controlled, will pass it, and if they did, no governor with further political ambitions would sign it.

There is nothing like the organization on the conservative/Republican or business sides to defeat the unions with an initiative; ask former Mayor Sullivan. That leaves the courts, and here there is some hope, if there is the will and resources.

This line of attack only applies to the State and not even to all State employees though it applies to the vast majority of them. It may apply to polisub employees who are paid from State funds and could be applied to other polisub employees, but each polisub would be a separate endeavor, and the outcome would depend on their ordinances and funding.

Almost uniquely, the Alaska Constitution requires that the State maintain a “merit system” of employment.  That Constitutional requirement is articulated in the State Personnel Act at AS 39.25.010.   Essentially, all managerial actions toward State employees, hiring, disciplining, dismissing, promoting, transferring, etc., may only take place for a reason related to merit.

Myths notwithstanding, it isn’t a union contract that requires “cause” or “just cause” to discipline or dismiss a State employee; it is the State Personnel Act and the Alaska Constitution.  This is the thinking that underlays my arguments to the Alaska Labor Relations Agency that led to ALRA Decision and Order 110, removing most actions related to job classification from the scope of the collective bargaining duty under the PERA.   Decision and Order 110 was upheld by the Alaska Supreme Court in APEA v. State in the early ‘90s.

Hiring an employee because s/he is the one the union sent over from the Hall is not a reason related to merit. Promoting an employee because the union contract says the most senior employee must be promoted is not a reason related to merit.   And most importantly, firing an employee for not paying union dues is a reason not related to merit.

If not compelled to pay dues, the vast majority of State employees would not pay them; this has been demonstrated in the past when the State has refused to enforce the union security clauses of expired contracts, and the State’s refusal to do so has been upheld by the ALRA.

It is unlikely that any of the white/gray collar units, general government, supervisors, confidential, could maintain their majority. The labor, trades, and crafts unit has somewhat more union loyalty and might maintain a majority.   The correctional officers and cops have considerable union loyalty, but even they would shed dues paying members.

A suit asserting this line of argument is a direct attack on the constitutionality of significant portions of the PERA as they have been applied to State employees subject to the State Personnel Act (SPA).  All classified State employees are subject to the SPA, while partially exempt employees are subject to some

Exempt employees are not subject to the SPA so this would not apply to unionized Marine Highway employees or State teachers or employees of quasi-governmentals, at least not on these precise grounds.

The unions would view this as an existential battle; it is, and they would nationalize opposition. Proponents can count on the unions mounting every form of opposition and bringing in the best legal talent money can buy.  There will be direct personal attacks on anyone who offers support and especially anyone who gives legal assistance or money. There will certainly be large protests and might well be violence.

Under this or any other Democrat administration, the State would vehemently oppose this suit.   Even under a Republican there’d be little State support because State lawyers and State managers know that one day there’ll be Democrat governor with a hit list and their name will be on it.

Proponents should expect to lose at the trial court level; the Democrats can always find a trial court judge who’ll do them a “great service” in exchange for an appointment to a higher court by a Democrat governor.

There is no money to be made off supporting or advocating for this suit, and any Alaska attorney who takes this own can write off doing any work for the State or political personages in the State ever again; the Democrats will hate him/her and the Republicans will be afraid of associating with someone so controversial; don’t ask me how I know.

Consequently, the predicate of any successful prosecution of the suit is securing conservative foundation and interest group support, financial aid, and legal assistance, unless there is some brave Alaska attorney who’d like to become the most hated person in Alaska since Ron and Penny Zobel.

This is the only remotely viable strategy I see to rein in unionized public employee control of Alaska’s political processes.   Failing this, after the 2018 General Election, we become the Socialist Workers’ Paradise and until the money runs out, there is no place for anyone else at the table.

Art Chance is a retired Director of Labor Relations for the State of Alaska, formerly of Juneau and now living in Anchorage. He is the author of the book, “Red on Blue, Establishing a Republican Governance,” available at Amazon. He only writes for Must Read Alaska when he’s banned from posting on Facebook. Chance coined the phrase “hermaphrodite Administration” to describe a governor who is both a Republican and a Democrat. This made Democrats irritable and hermaphrodites insulted.

Heads and Tails: Berky, Begich host fundraiser for who?

SHE’LL LEAD THE CHARGE OPPOSING ALASKA: Sen. Maria Cantwell, a leading opponent of drilling in the Arctic National Wildlife Refuge, has friends in high places.

Anchorage Mayor Ethan Berkowitz and former Sen. “The Honorable” Mark Begich are hosting a fundraiser for the Washington senator, whose largest donor is the League of Conservation Voters.

Other hosts of the event include environmental activist-litigator Peter Van Tuyn, Native American Rights Fund lawyers Heather Kendall-Miller and Lloyd Miller, and Raina Thiele, former Obama official and lead organizer of the Obama trip to Alaska. 

NORTH KOREA HAS GUAM IN SIGHT: North Korea has announced its plan to launch missiles toward the U.S. territory of Guam, which is home to a major U.S. military installation and dozens of strategic aircraft. The threat includes four Hwasong-12 missiles that would be pointed over Japan and into the waters near Guam, where 7,000 U.S. military personnel are stationed. The island has a population of 160,000. The missiles would be aimed to hit between 19 and 25 miles from the island and may be launched within a week, according to the regime in Pyongyang.

In an interview with Politico, Gov. Bill Walker expressed concern: “No one’s hiding under the desk that I know of at this point,” he said. “But we do have to make sure we have the technology and awareness of what could happen.”

Anchorage Mayor Ethan Berkowitz told writer Julia O’Malley last month that he was “worried about moose, not missiles, bears, not bombs.”

Sen. Dan Sullivan has been warning for a year about the growing threat from North Korea.

In January of 2016, he said on his Facebook page: “North Korea’s purported test of yet another nuclear device is a reminder of the menace and lingering threats that exist in the Asia-Pacific. Concurrently, the Obama Administration is planning to remove America’s only Airborne Brigade Combat Team in the Asia-Pacific, Alaska’s 4-25. Crippling our force capability is particularly dangerous given Russia’s massive Arctic military build-up and North Korea’s consistent provocations. In December at a confirmation hearing, I received the commitment of Under Secretary of the Army Patrick Murphy to support the development of a rigorous Arctic Operations Plan before a single troop is removed from Alaska. Weakness is provocative. Bolstering our forces in the North would send a strong message that the United States is serious about upholding our promises, reaffirming our alliances, and deterring aggression from our adversaries.”

Sullivan recognized the threat years ago; Mayor Berkowitz doesn’t seem to recognize the threat today.

OTHER STUFF THAT COMES FROM ACROSS THE PACIFIC: A “Save Our Seas” bill sponsored by Alaska Sen. Dan Sullivan has passed the U.S. Senate. Will plastic waste in the ocean actually be reduced as a a result of it?

“What is particularly troubling about the marine debris challenge and crisis … is that the majority of marine debris in the world’s oceans come from five countries in Asia: China, Thailand, the Philippines, Vietnam, Indonesia and South Korea,” Sullivan said.

In other words, missiles from North Korea, plastic from everywhere else in the Pacific Rim.

The bill calls on the State Department to engage other countries to find solutions. It would also reauthorize the Marine Debris Program for another five years, with up to $10 million a year.

Deputy Assistant Secretary of State David Balton described the waste deluge as a casualty of rapid growth in the countries most responsible.

“Their pace of economic development is just moving ahead so much more rapidly than their waste-management capabilities,” Balton said at a Senate hearing on the bill last month. “To get a handle on this we really need to help them improve waste management processes.”

Sullivan’s 21 co-sponsors range from from conservative Sen. Jim Inhofe, R-Okla, to far-left Sen. Cory Booker, D-N.J.

DON YOUNG FUNDRAISER: One of the top political events of the summer is the annual fundraiser for Congressman Don Young, to be held at the home of former Gov. Bill Sheffield on Aug. 16, 5:30-7 pm.

Hosts include a who’s who: Carl Brady, Ron Duncan, and cohosts Hugh Ashlock, Rick Boyles, Judy Brady, Sheri Buretta, Steve Colligan, Adam Crum, Bob Gillam, Richard Glenn, David Gottstein, Perry Green, Jim Jansen, Pete Leathard, Joey Merrick, Mark D. Nelson, Gloria O’Neill, Gail Schubert, and Aves Thompson.

CHRIS BIRCH MAKES IT ‘OFFICIAL’: On Facebook, Rep. Chris Birch of South Anchorage said he’d filed for office with APOC and will either run for House or for the Senate seat, should that become vacated by Sen. Kevin Meyer, who is mulling a run for lieutenant governor. Birch wrote:

“It is my intent to campaign for reelection to the State House or Senate if this office becomes open. Last year, with the support of many friends and neighbors we prevailed in the general election for House District 26 with a 28 percent margin. As a new member of one of the largest classes of freshman legislators since statehood – 15 of 60 House and Senate offices transitioned – I am committed to advancing an efficiency agenda that reduces spending, restores accountability, limits regulation and encourages private sector investment and employment.”

Chances are he’ll have a primary opponent in Rep. Charisse Millett should he run for the Senate seat, but that all depends on Sen. Meyer, who has expressed some recent interest in running for Lite Guv.

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