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Bean’s Cafe executive director out, as questions remain about billing irregularities

Lisa Sauder, who has been the CEO of Bean’s Cafe for 10 years, is no longer at the helm of Anchorage’s most well-known meal supply program for the poorest among us.

The change was known among insiders earlier this week, but the nonprofit’s website finally made it clear that Scott Lingle, chief operating officer, has been appointed interim chief executive officer, and Sauder is gone.

Bean’s Cafe has been under scrutiny with the Municipality of Anchorage since Dave Bronson took over as mayor and allegations arose over improper — possibly fraudulent — billing that Bean’s was issuing to the municipality for the management of the homeless shelter at the Sullivan Arena during the Covid pandemic. Beans was awarded about $15 million through municipal contracts to operate the Sullivan during Covid and provide meals to the homeless sheltered there. The contracts started under previous administrations of Ethan Berkowitz and Austin Quinn-Davidson, and the leftist majority on the Assembly.

Bronson’s team decided to put the contract out for a bid, and another group won the contract, forcing Beans to leave the premises. The change to the new group was widely criticized by the mainstream media, which said the new management had created chaos. Assemblyman Felix Rivera called for the continuation of the Bean’s contract in a press release in February.

But in the meantime, the Department of Law has been looking into potential double billing issues with Bean’s Cafe, Must Read Alaska has learned. Some in the municipality think that many of the services paid for were never actually provided.

In addition to providing meals for the down-and-out and chronically inebriated, Bean’s Cafe manages Children’s Lunchbox, a food service that provides between 200 and 250 meals five days a week, distributed at 13 sites across Anchorage.

“Since March 2020, thanks to generous donors we have been able to serve more than 1.6-million meals between Bean’s Cafe and The Children’s Lunchbox,” the organization says on its website.

April Mathers, the former finance manager, is also gone and no replacement has been announced.

Clock ticks, as Yellen moves the goalposts on debt crisis by five days

For weeks, Treasury Secretary Janet Yellen declared June 1 as the likely default date for the federal government if the debt ceiling isn’t raised.

However, a lack of agreement between President Joe Biden, advocating for increased borrowing, and Republicans, who emphasize spending cuts, has prompted Yellen to adjust her stance.

On Friday, she revised the deadline, extending it to June 5, raising questions about potential political calculations influencing the decision-making process.

The impending X-date, which is the point at which the government cannot fulfill all its financial obligations, coincides with the necessity for the federal government to make $130 billion in payments that due within the first two days of June.

These due payments include contracts, payroll, and encompass entitlements, Social Security, and Medicare. Once these obligations are met, Yellen wrote in a letter to Congress that the Treasury would be left with “an extremely low level of resources.”

“During the week of June 5, Treasury is scheduled to make an estimated $92 billion of payments and transfers, including a regularly scheduled quarterly adjustment that would result in an investment in the Social Security and Medicare trust funds of roughly $36 billion. Therefore, our projected resources would be inadequate to satisfy all of these obligations,” she wrote.

President Biden and House Republicans have been engaged in negotiations aimed at finding common ground to enable the government to surpass its current borrowing capacity of $31.4 trillion.

House Republicans want $130 billion in cuts to the upcoming budget, as well as a cap on the growth of federal spending at 1% for the next 10 years. They seek requirements that those getting welfare start working at least 20 hours a week. Biden has rejected those demands. He wants only a two-year cap on spending and work requirements only for those who receive actual cash payments of welfare; he would not require food stamp recipients to engage in work.

Another Biden delay for Ambler Road

The U.S. Department of Interior has again postponed the release of a final decision regarding the highly debated Ambler Road, an industrial access to mining in Northwest Alaska.

The proposed road, which would link to extensive reserves of copper, zinc, lead, silver, and gold, has faced numerous challenges due to its location crossing federal land.

Initially, the permits for the road were issued by the Trump Administration, which recognized the long-established need for access to the mining area, particularly for minerals that are key to national security.

Last year, the Biden Administration revoked these permits, citing concerns over inadequate consultation with Alaska tribes and insufficient evaluation of the road’s potential impact on fish and caribou habitats.

The decision was made despite a joint authorization issued in 2020 by the Bureau of Land Management, the Army Corps of Engineers, and the National Park Service.

The project, estimated to cost $799.6 million, holds the potential to yield significant quantities of valuable minerals over its projected 12-year lifespan, including approximately 159 million pounds of copper, 199 million pounds of zinc, 33 million pounds of lead, 3.3 million ounces of silver, and 30,600 ounces of gold.

The next “final” record of decision on the Ambler Road project has now been delayed until the second quarter of 2024, a decision that comes as a surprise, given the Department of Interior’s previous assurance that a decision would be reached by the end of 2023.

The Ambler Mining District access was promised to Alaska under the Alaska National Interest Land Conservation Act (ANILCA) in 1980. The federal government has repeatedly reneged on the promise. In 2022, the Bureau of Land Management’s approval delays led to a shorter field season, resulting in job losses.

The 2023 field season was expected to build upon the past, since delayed approvals and continue with crucial field studies, permitting, and data collection. To progress the pre-development work, the Alaska Industrial Development and Export Authority Board has approved $44.8 million of the $70 million budget.

The Ambler project is of strategic importance, as it supports America’s national defense efforts and reduces reliance on mineral imports from China, according to AIDEA Executive Director Andy Ruaro. By developing domestic critical minerals production, the United States can lessen dependence on China, which has few pollution requirements and seeks to control and dominate critical mineral supplies similarly to how OPEC controlled oil in the 1970s.

Gail Schubert out at Bering Straits

The President and CEO of Bering Straits Native Corp. Gail Schubert, is out. Dan Graham, executive Vice President, has been named interim CEO.

Bering Straits Native Corporation is an Alaska Native regional corporation serving 17 villages in the Bering Strait region.

Schubert is a big player in Alaska politics and Native business. An Iñupiaq from Unalakleet, she serves on the boards of the Alaska Federation of Natives, Alaska Native Justice Center, ANCSA Regional Association, Commonwealth North, the Iditarod Trail Committee, State of Alaska Renewable Energy Fund Advisory Committee, the Native American Contractors Association and the University of Alaska Foundation. She has served on the BSNC Board of Directors since 1992, and was a co-chair of the Bill Walker campaign for governor in 2022.

Schubert, who practiced law in Anchorage and also worked at the Federal Reserve Bank of New York and of two Wall Street law firms, is an ATHENA Society awardee, recipient of the Northwest Indian Bar Association’s Unsung Hero Award, and YWCA Alaska/BP Woman of Achievement Awardee

She graduated from Stanford University, earned a Master of Business Administration from Cornell University’s Johnson School of Management with an emphasis in accounting and finance, and was awarded her Juris Doctorate from the Cornell University School of Law.

Graham has served on the senior executive team at BSNC for nearly a decade. He has had more than 24 years in progressive leadership roles for Alaska Native corporations, providing executive oversight and management for a large portfolio of contracts in all 50 states and international programs, according to the BSNC website.

Graham holds a Bachelor of Science in civil engineering from Villanova University, is a registered Professional Civil Engineer in Alaska and is a certified Project Management Professional.

No explanation for the change has been announced, but the board sent a letter to shareholders:

“We write to you today to inform you of an important transition in leadership at Bering Straits Native Corporation (BSNC). The BSNC Board of Directors approved the separation of the President & CEO. Gail R. Schubert, who has been CEO since 2009 and President since 2010, will no longer serve in her current role. We would like to express our sincere appreciation for Gail’s remarkable contributions and dedicated service to BSNC throughout her tenure.

“While Gail has transitioned out of her role as President and CEO, we are pleased to inform you that she will continue to serve as a valuable member of the BSNC Board. Gail’s extensive 31 years of board service, insightful guidance and unwavering commitment to the corporation will continue to benefit our organization and its shareholders.

“During Gail’s tenure, BSNC has achieved tremendous success. Under her leadership and guidance, the corporation’s annual revenue has grown from $14 million in 2003 to $661 million in fiscal year 2023.

“Executive Vice President Dan Graham will serve as Interim President and CEO. Graham’s leadership will assure continuity and will build on the accomplishments that Gail has led over her decades of service to BSNC. Dan has served on the senior executive team at BSNC for 9 years and has worked in leadership roles at Alaska Native corporations for a more than 20 years. He has been an integral part of BSNC’s positive trajectory.

“I cannot say enough about what Gail has accomplished,” said Graham. “In my time in this new role, I will wake up every day thinking how best to serve BSNC shareholders and the region. I do not take the responsibility of this position and the people it serves lightly.”

” We send our sincere thanks to Gail,
“BSNC Board Chair Cindy Towarak Massie and Board of Directors”

Humanitarian crisis: Anchorage warehouses homeless navigation center materials; Assembly refuses to build it or pay contractor for materials

At the end of the Indiana Jones “Raiders of the Lost Ark” movie, the Ark of the Covenant is wheeled into a giant U.S. government warehouse, never to be found again.

And so it is with the materials for the Anchorage Navigation Center for the homeless.

A Parks and Recreation maintenance garage in Eagle River has been repurposed as a warehouse for sheltering a vast accumulation of building materials intended for human shelters.

The venue, paid for exclusively by Eagle River taxpayers and originally designed to accommodate trucks and equipment, now houses stacks of construction materials and fixtures, leaving the trucks out in the open.

The procurement of these materials dates back to the previous year, following the Assembly’s approval to construct a navigation center at a site near Elmore Road on Tudor Road.

However, the situation took an unexpected turn when the Anchorage Assembly, despite initially approving the building of the navigation center, refused to fund the construction of the shelter. Critics argue this move was largely to avoid granting a perceived victory to Mayor Dave Bronson in addressing the city’s homelessness issue.

This stalemate has resulted in a bizarre situation where the city, for several months, has been storing construction materials while the homeless, particularly those who find it difficult to abide by the guidelines of traditional church- or privately run shelters, sought refuge at the Sullivan Arena throughout the winter.

Assemblyman Kevin Cross, representing Eagle River, expressed his dismay over the situation.

“It sickens me that we’re willing to secure, heat, and shelter the materials to build a shelter, but not actually use those materials in order to help people. It’s also important to note that these are materials that we took possession of from Roger Hickel and are being sued in order for us to pay for them,” he said.

The navigation center was a flagship project during Mayor Bronson’s early tenure, a part of his strategy to tackle homelessness, which was becoming an environmental concern in Anchorage’s wooded areas.

Last summer, following a significant forest fire in Anchorage that had been set by homeless campers, the mayor’s decided to move all unsanctioned campers to the Centennial Park Campground.

Despite the city ensuring regular patrols, sanitation, and daily meal services, the Assembly and Anchorage Daily News called it a “humanitarian crisis.”

This year, however, there is a shift in the leftist Assembly’s perspective, and it’s getting no pushback from the media for flipping.

The Assembly is contemplating its own version of the sanctioned camp plan that includes homeless campgrounds in every single district in the city.

Despite previously criticizing the Centennial Campground as a humanitarian crisis along the lines of Nazi concentration camps, that very campground is being included on the list to address the increasing presence of homeless tent camps across Anchorage’s greenbelts.

Here’s the kicker: Eagle River, District 2 property taxpayers paid for that maintenance garage for Parks and Recreation, which is a separate Eagle River Parks and Rec.

This means taxpayers of Eagle River are storing the materials for a building that was supposed to be built in Anchorage.

What’s more, the Tudor navigation center site was a place where the city could have also put a sanctioned campground in the cleared area around the social service hub, which was meant to steer each homeless person to the appropriate services to help them get back on their feet.

The municipality owns the land, has permits, and has $10 million left over from 2022 general fund that could be utilized to get the steel-sprung building up.

The municipality took possession of all the building materials from Roger Hickel Contracting and has them under lock and key in Eagle River.

The Assembly refuses to pay for the materials that Hickel purchased as part of the contract to build the navigation center. The city has possession of the materials but during the Tuesday Assembly meeting, the leftist majority refused to pay Hickel the more than $2 million owed to the company for these materials, for the site work, and for the permitting and design work for the navigation center.

Nordstrom closes two stores in downtown San Francisco

It’s tough being a retailer in San Francisco, what with all the druggies and homeless wandering around and defecating in your entry.

Nordstrom, based in Seattle, has thrown in the towel and joined the ranks of companies that are leaving or have left downtown in the city by the bay. Both of the store’s locations will close; Nordstrom is politely saying it’s because of “the dynamics of the downtown San Francisco market have changed dramatically over the past several years, impacting customer foot traffic to our stores and our ability to operate successfully.”

Nordstrom closed its Anchorage store in the fall of 2019, as the economy declined under the leadership of former Mayor Ethan Berkowitz and his community development appointee Andrew Halcro.

Nordstrom and its sister brand Nordstrom Rack will close 15 stores across the U.S. and Canada this year, with 13 closing in Canada. The only two stores in the USA that are closing are in San Francisco.

The Canadian stores closing are in Calgary, Edmonton, Langley, Ottawa (2 stores), Toronto (5 stores) and Vancouver.

Also leaving downtown San Francisco is T-Mobile and Saks, both leaving Union Square. Whole Foods announced in April it will be closing its San Francisco location just a year after it opened, due to employee safety concerns. Walgreens, CVS, and Amazon are also leaving.

Downing: Golden Fleece Award for a $395K electric school bus in Wrangell

By SUZANNE DOWNING

Washington, D.C. could use another fiscal hawk like the late Sen. William Proxmire of Wisconsin.

During his Senate career from 1957 to 1988, Proxmire instituted a regular Golden Fleece Award, with which he mocked “the biggest, most ridiculous or most ironic example of government spending.”

Among his infamous recipients was the Department of Justice, receiving the award for conducting a study on why prisoners desire to escape. 

Another honoree was the U.S. Postal Service, spending $4 million on an ad campaign urging Americans to write more letters.

In today’s government borrow-and-spend climate, Proxmire would find an embarrassment of riches for his satirical accolades. Here’s one that would surely join the ranks:

In the hardy Southeast fishing, timber, and tourism town of Wrangell, the school district had the idea to apply for a federal grant for a new electric school bus. With the Environmental Protection Agency distributing nearly $1 billion in these electric school bus grants last year, it was raining money, so why not one for a hamlet in the rain forest?

In October, the Biden Administration awarded $395,000 to Wrangell for the purchase of the electric bus, intended to expedite the transition to zero-emission vehicles and foster “cleaner air in schools and neighboring communities.” 

Don’t get me wrong — I love Wrangell. It’s a great town and I love the people. But most students in this Alaska town can walk to school or catch a ride with an older sibling or parent who works at the school.

Wrangell, with its 2,100 souls and only about 25 miles of road, has a school system serving 263 students — at most — and two school buses. The number of students is falling so fast that the district is seriously considering combining two of the three schools into one. And there are no neighboring communities in Wrangell, unless you get on a ferry or a plane.

As for the clean air aspect, Wrangell boasts some of the cleanest air in America. It’s situated in the middle of the nation’s largest national forest, the Tongass, which is the size of Virginia yet has a population of only 70,000 across its numerous islands and archipelagos. Between the millions of carbon-capturing trees and millions of acres of carbon-absorbing ocean, Wrangell is in a rainforest that is already on hydro power. It’s not belching much of anything into the air, which is swept clean by ocean breezes.

But somehow Wrangell, in spite of its voters’ overwhelming preference for President Donald Trump in 2016 and 2020, won a grant from the Biden Administration. 

Its success was due to the fact that more northern communities in Alaska can’t use electric buses, as their batteries just don’t last in the cold winters, and the last thing communities need is to have a bus full of children break down in sub-zero blizzards. For most of Alaska, electric vehicles don’t make sense.

Sen. Lisa Murkowski was euphoric. After all, Wrangell is where her father, former Sen. Frank Murkowski, and his wife, Nancy, live. Lisa brought home the bacon.

“Congratulations to the Wrangell School District for being a recipient of the EPA’s Clean School Bus Program, established by the Infrastructure Investment and Jobs Act. Wrangell’s new electric school bus will enhance the district’s ability to operate efficient and safe bus routes. I am thrilled to witness Alaskan communities reaping the benefits of my bipartisan infrastructure law,” she said in a statement.

The projected cost of the new electric bus itself is $375,000, with an additional $20,000 designated for a charging station. 

Thus, the nearly $400,000 to transport even half of those 263 students pencils out to $1,500 per student. That $400,000 amounts to 8% of the district’s annual school district’s $5 million operating budget for a bus that may run 10 hours a week.

This alone would qualify it for Proximire’s Golden Fleece Award, although “Golden Fleet” might also be appropriate.

But then, an unexpected hurdle arose: The EPA grant stipulates that the bus company must dispose of one of its diesel-fueled buses. Not a mere sale or decommissioning of the bus, but complete destruction was required.

Taylor Transportation, the company that has the bus contract in Wrangell, questioned the wisdom of destroying a perfectly functional school bus from its fleet.

With the clock ticking, the district approached the EPA with a proposal: Could Wrangell purchase a bus in another jurisdiction, destroy it, present evidence of its destruction to the federal agency, and subsequently qualify for the grant for the new electric bus?

The EPA saw no apparent obstacles to this unconventional workaround.

For the past few weeks, Wrangell scoured other states for a bus that fit EPA’s criteria, which includes that the bus must have served as a functional student transporter for the last two years. 

In other words, the bus Wrangell buys and destroys cannot be the dilapidated remnants of a Burning Man excursion.

In addition, not just any method of destruction will suffice. The EPA has regulations governing the disabling of a diesel school bus—no cliffs can be involved, for instance.

Sen. Proxmire would revel in the circus that is this wasteful endeavor.

Within the Infrastructure Bill, bizarre trinkets like this abound for every community across America, enough to keep Golden Fleece Awards going for years.

Regardless of party, we need more fiscal hawks like Proxmires and fewer spendthrift Murkowskis in the Senate. 

We need senators who will put their foot down on wasteful spending, not put their foot on the pedal for borrowing against the futures of our children.

Suzanne Downing is publisher of Must Read Alaska. Credit for original reporting on this grant to KTSK.

Sackett vs EPA: Supreme Court sides with property owners on water rights

The U.S. Supreme Court handed down a landmark ruling on Thursday that significantly curtails the ability of the Environmental Protection Agency to expand its authority over private property under the Clean Water Act.

The case, Sackett v. EPA, centered around property owners Mike and Chantell Sackett’s battle against the agency’s claim that their land near Priest Lake in Idaho fell under the jurisdiction of “Waters of the United States,” effectively designating the federal government as the de facto owner.

The Sacketts’ legal ordeal began 15 years ago when they started construction on their home site, only to be met with a stop-work order from the EPA. The agency argued that their property is classified as wetland and fed into a non-navigable creek, which eventually flowed into Priest Lake. That made it a “Waters of the United States” jurisdiction.

The lot that the Sackett own is surrounded by others that have been developed into a residential neighborhood. Only theirs was singled out by the EPA.

The U.S. Court of Appeals for the 9th Circuit had previously ruled in favor of the EPA, but after months of deliberation, the Supreme Court reversed the decision, narrowing the EPA’s authority.

Writing for the majority, Justice Sam Alito emphasized the need for a clear rule regarding what constitutes wetlands and waters covered by the federal government under the “interstate commerce” clause.

The court clarified that “waters” is understood by the public to mean to permanent bodies of water, excluding temporary ponds, ditches, or puddles. Wetlands separate from traditional bodies of water are deemed non-covered, while those connected to permanent waters may still be considered “waters of the United States.” For example, marshes adjacent to lakes or flowing waters, with a continuous surface connection, may fall under federal jurisdiction.

The ruling carries significant implications for property owners nationwide, as it protects them from potential “severe criminal sanctions for even negligent violations” of the Clean Water Act.

Justice Clarence Thomas, in a concurring opinion joined by Justice Neil Gorsuch, argued that the :curbs a serious expansion of federal authority that has simultaneously degraded States’ authority and diverted the Federal Government from its important role as guarantor of the Nation’s great commercial highways into something resembling ‘a local zoning board.’”

Four justices — Sonia Sotomayor, Elena Kagan, Brett Kavanaugh, and Ketanji Brown Jackson — agreed the Sacketts’ property is not covered by the Clean Water Act but disagreed with the majority’s reasoning.

Justice Kavanaugh, who wrote the dissenting opinion for the four, said the narrower test established by the majority may leave some previously regulated adjacent wetlands unprotected, which could impact water quality and flood control efforts.

Damien Schiff of the Pacific Legal Foundation, who represented the Sacketts, called the ruling a victory for property owners, the rule of law, and the constitutional separation of powers.

Schiff said the decision restores the Clean Water Act to its original limits, providing clearer guidelines for federal regulators and ensuring fairness and consistency.

“The Court made the right call in limiting federal jurisdiction over wetlands and placing decision-making power back in the hands of States,” said Alaska Gov. Mike Dunleavy. “This ruling stands to promote the kind of responsible development my Administration is working to bring to Alaska.”

“The State of Alaska has long advocated for limiting the expansion of the definition of WOTUS. Alaska argued to the Supreme Court in a friend-of-the-court brief that an expansive WOTUS definition exceeded the authority granted to the federal agencies under the Clean Water Act. In addition, the State recently urged exemptions for unique types of wetlands such as permafrost in comments it submitted last year as part of EPA’s WOTUS rulemaking. Earlier this year, Alaska and 23 other States won a preliminary injunction of the EPA’s revised WOTUS definition,” the Office of the Governor of Alaska wrote.

Earthjustice, which filed an amicus brief to support the federal government’s position, was displeased:

“The Sackett decision undoes a half-century of progress generated by the Clean Water Act. More than 118 million acres of formerly protected wetlands now face an existential threat from polluters and developers,” said Sam Sankar, senior vice president of Programs at Earthjustice.

“This decision is the culmination of industry’s decades-long push to get conservative courts to do what Congress refused to do. The Court’s decision to deregulate wetlands will hurt everyone living in the United States. Earthjustice will continue to fight to protect our waters to ensure the health of communities and ecosystems for decades to come,” Sanker said.

Peltola demands Alaska power associations pay reparations to Village of Eklutna for water

A letter from Rep. Mary Peltola to the boards of Matanuska Electric Association and Chugach Electric Association makes demands on behalf of the Village of Eklutna.

The demands are for an unstated amount of money and demands that the Eklutna dam be torn down and/or that the Village of Eklutna be paid for the water that she claims belongs to the village.

Peltola is demanding “favored status,” or “equal party status” for the village. The letter references a 1991 U.S. Fish and Wildlife Agreement, which can be seen here.

The letter was referenced in open session in the first board meeting after the board election for Chugach Electric Association, which ended May 19. Peltola’s letter was not included in the board meeting packet, however, but all members had a copy of the letter.

The board took the matter into executive session because it plans to have a joint response with Matanuska Electric Association that it wanted to discuss. (The letter is embedded below, but may not be visible on a smart phone.)

The letter, received May 18, was sent to CEA just as the board election was ending. The electric association board majority was taken over by the environmental industry, led by the Alaska Center for the Environment, and this week immediately elected a new board chair, Sam Cason. Former chairwoman Bettina Chastain was rolled as chair by the new environmental group that has seized control of the association, which is now the only power company in Anchorage, after buying Municipal Light and Power from the city of Anchorage of $972.8 million in 2019, after voters approved the sale in 2018. It is now a monopoly.

The Anchorage Assembly has established government-to-government relations with the Village of Eklutka which sits on the outskirts of Anchorage. The village estimates its population as 70.