Anchorage Assembly rejects $250K settlement with city manager fired by former Mayor Bronson

The Anchorage Assembly on Friday voted down a $250,000 proposed legal settlement with former Municipal Manager Amy Demboski.

Members rejected the settlement in a 4-6 vote immediately after a two-hour legal briefing with city attorneys that was closed to the public. They did not debate the matter before voting.

Former Mayor Dave Bronson unexpectedly fired Demboski in December of 2022. Shortly after, she accused Bronson of wrongfully terminating her in retaliation for whistleblowing. She accused Bronson and some of his officials of violating city laws, acting unethically, discriminating against women and creating and tolerating a hostile work environment.

Bronson has never publicly addressed the allegations. While mayor, he repeatedly cited “potential litigation” or personnel matters as a reason not to discuss them.

Friday’s vote is the second time the Assembly has rejected a settlement with Demboski. In May of 2023, members voted down a $550,000 proposal to settle her claims. At the time, some Assembly members said that a lawsuit could be the city’s best chance at uncovering the facts.

Demboski then sued the city in September 2023. In her civil lawsuit, she alleged that the mayor and other senior members of his administration engaged in “wanton disregard and disdain for following law and propriety.” She claimed she experienced discrimination and retaliation, violation of the implied covenant of good faith and fair dealing, violation of the Anchorage Whistleblower Act, and defamation by Bronson and other officials, among her other claims.

Following a year of litigation, the municipality entered mediation with Demboski’s attorney in September and reached a settlement agreement, according to the now-dead proposal.

After the Assembly’s rejection of the settlement on Friday, Demboski’s attorney, Scott Kendall, said he will be discussing options with her and that they “have no comment at this time.”

Those who voted to approve the settlement were Assembly Chair Christopher Constant, Vice Chair Meg Zaletel, member Kameron Perez-Verdia and member Scott Myers. Members Randy Sulte, Anna Brawley, Karen Bronga, Felix Rivera, Mark Littlefield and George Martinez voted against it.

Zaletel, who is also an attorney, said in closing comments during the meeting that she regrets that the Assembly did not debate it, and said she thinks rejecting it is a mistake.

“I also think if the ‘no’ votes were because we think we’re going to learn something more, I think that’s a misguided idea of what litigation brings,” Zaletel said. “Litigation, ultimately, are carefully crafted narratives to try to win your argument. And I think that it is unfortunate that we can’t let mutually agreed-upon litigants settle a case when they are ready to settle.”

Assembly member Randy Sulte said he voted against settling because he sees Demboski’s lawsuit as a “money grab.”

The city should set a precedent “that we’re not going to roll over easily,” Sulte said. “We will fight tooth and nail for every case and defend the citizen’s tax dollar.”

Member Anna Brawley, who also voted “no,” said that a settlement could limit the risk to the municipality, but that she did not feel like the settlement was in the best interest of the public.

“I could not, in good conscience, vote ‘yes’ for this particular outcome at this time,” she said.

Brawley said she couldn’t discuss her reasoning more deeply because the case is in active litigation. Information that was shared during the legal briefing was confidential.

“And I did not take this vote lightly,” Brawley added.