The Mudflats

Palm Pilot to Nowhere

Palin’s still on the palm thing.  At a speech in Orlando, she referenced yet again the infamous palm writing incident where she had to write the words “Energy, Tax Cuts, and Lift America’s Spirits” on her hand so she’d remember the three things she’d do if she were President of the United States.  Palin the presidential wannabe described the incident by saying she was “busted for using a poor man’s TelePrompter,” and went on to elaborate, “I was just kicking it old school.  It’s the way we used to do it.”   Your assignment for the weekend is to find another human being who is closer to 50 than 40 who uses the phrase ”kicking it old school” without humiliating their children by trying to sound like one of them, and failing miserably.

She also told the audience to get a Bible and look up Isaiah 49:16, which reads, “Behold, I have inscribed you on the palms of My hands.”  ”If writing on one’s palm was good enough for God, then it’s good enough for the rest of us,” she spake.  Hmm.  Drowning almost every living thing on Earth was good enough for God too.  So was turning people into pillars of salt.  And there was lots of smiting going on there for a while, if I remember correctly.  Can we expect her to start striking people dead?  The “it’s good enough for God so it’s good enough for me” defense might be interesting in a court of law.

Say Uncle!

Lookie! Uncle Ted (aka almost convicTED Stevens) is back! He popped out of his hidey hole today to make an announcement endorsing a bullet line to bring natural gas from Alaska to Alaska via an Alaskan route. Some might say he’s a bit late to that party. Republican gubernatorial candidate Bill Walker has been saying this since anyone can remember, and is running his campaign on that issue above all others. And AGIA takes another body blow. Will we have to fork over Palin’s half a billion dollars to exit the Trans Canada agreement after all? Stay tuned…

Cawfey Tawk

Across America, the thinking man’s answer to the Tea Party movement will be seeing gatherings springing up everywhere. Started by a very clever and impassioned Facebooker, the Coffee Party has a mission:

MISSION: The Coffee Party Movement gives voice to Americans who want to see cooperation in government. We recognize that the federal government is not the enemy of the people, but the expression of our collective will, and that we must participate in the democratic process in order to address the challenges that we face as Americans. As voters and grassroots volunteers, we will support leaders who work toward positive solutions, and hold accountable those who obstruct them.

***There’s a Coffee Party at 10am in Wasilla at the Metro Cafe, and one at 7pm in Anchorage at the Cafe del Mundo on Benson. Wherever you are, you can check for locations near you at Coffee Party USA.***

Good Wife Goes Rogue Rouge

On this week’s episode of “The Good Wife“  Going Rouge makes an appearance!   A backwoods ballistic expert flirts with a lawyer and as part of his flirtation he sends her a lavishly gift-wrapped copy of Sarah Palin’s  Going Rogue.   She responds by sending him a copy of Going Rouge – An American Nightmare!  I hear it got a great cover shot.  

Congratulations, Senator Begich!

Congratulations to Senator Begich for landing a spot on the Senate Budget Committee!  Nice!

Acknowledging his continuing efforts to address the federal budget deficit and growing debt, the Senate approved his appointment to a vacant seat on the Senate Budget Committee, effective Tuesday night.  He joins the Budget Committee with a focus on fiscal responsibility. During his first year in office, he has supported the Senate’s adoption of “Pay-Go” rules, Congressional and Presidential efforts to establish a federal debt commission, a Presidential suspension of discretionary spending, and numerous initiatives promoting transparency and efficiency in government spending.

For He’s a Jolly Good Fellow

Today is the birthday of one of my favorite members of Congress – Alan Grayson. He is living, breathing proof that it is medically possible to be a registered Democrat and also have a spine. He appears to be no worse the wear for having this spine, and to show support for him, there’s an effort to get donations to his campaign. He’s 52 years old, so if you would like to send a symbolic $52 to his campaign, or any amount you see fit, click HERE. This guy is fighting the good fight every day, not only for members of his district, but for all of us. Last week he introduced a simple four-page bill to let all Americans buy into Medicare. It has 50 cosponsors already. You can support the bill at WeWantMedicare.com. And he’s even leading the GOP primary poll in which only Republicans in his district were surveyed! I guess everyone loves a spine.

It’s All Mine

Ah, the loophole.  They always seem to find them, don’t they?  Well there’s a loophole in George W. Bush’s 2002 Clean Water Act that allows mines to dump waste in America’s waters.  But the good news is that the EPA has the authority to close the loophole.  EarthWorks is organizing a call-in day on Monday, March 15 when concerned citizens will call the White House and urge action.  This loophole is allowing the Kensington Mine near Juneau to destroy a freshwater lake by calling this mining waste “fill” and dumping it, untreated into the lake.  It’s also allowing mountaintop removal coal mines to dump their waste into the streams of Appalachia. 

So get ready to enter a new contact into your cell phone, or put it on your speed dial.  It’s the White House!  I think every American should have the White House on speed dial!  202-456-1414.  Call it and ask your president to restore the Clean Water Act’s prohibition on dumping mining waste into clean water.

This letter to the editor in the Juneau Empire caught my eye.  It’s a further discussion of resources that we all enjoy being put in corporate hands. I touched on this issue and the inherent conflict of interest of a legislator who not only serves the area affected by this bill, but who sits on the board of the corporation who stands to benefit from it.  You can read that article HERE.

Sealaska should be held to the deal made in ‘72
Juneau Empire

The Sealaska Corp. lands bill would change the character of Southeast Alaska more than any other land use decision since the Long-Term Timber Sales of the 1950s. Those huge timber sales impacted vast areas of land, but at least most of the logging avoided sites that were heavily used by the public and the land remained in public ownership, hunting and all the other uses we enjoy.

The Sealaska lands bill is different. If the bill is passes, hundreds of the most important and beloved sites on the Tongass would be transferred from a public trust to the hands of a for-profit corporation. Many of the sites are immensely valuable, containing millions of dollars of public investment in roads, docks, second growth thinning, recreation cabins and trails. They are arrayed in a dense pattern across the region and they would have few permanent restrictions to ensure public access or responsible development.

The small businesses that rely on these sites would be displaced. Even more incredible, under the law, Sealaska would have the right to select 1,200 more acres at a future time, without the public’s approval. This could easily mean hundreds of more places in corporate hands.

I believe that Sealaska should be held to the deal they made in 1972 and select their lands from within the established selection boundaries. I do not trust Sealaska’s claim that they will be good stewards of the land because I have seen firsthand how Sealaska has managed their previous selections – clearcut right up to the property lines in all directions, with no concern for wildlife and only very minimal protection for fisheries.

Take a look at the map of the proposed selections and contact Sens. Lisa Murkowski and Mark Begich if you have concerns. This is a land allocation issue of momentous importance to the future of Southeast Alaska.

Barth Hamberg, Sitka, Alaska

**********************************

Senator Mark Begich 202-224-3004
Senator Lisa Murkowski 202-224-6665

[Don't miss Anchorage Assembly Member Harriet Drummond on The Shannyn Moore Show HERE or on 1080am in Anchorage.  She'll be Shannyn's guest in the 11:00 hour Alaska time, Noon Pacific, 3pm Eastern]

He’s back in the news again, our mayor is.  It’s like an ongoing reality show, and every day’s a new episode.

Mayor Dan Sullivan has signed a check that empties almost $200,000  from the coffers of his supposedly financially beleaguered city.  That check will go to the beneficiaries of his father, former Mayor George Sullivan’s life insurance policy. Dan Sullivan is the trustee of this tidy sum. This “life insurance policy” isn’t really a life insurance policy at all though, and the contract that is claimed to exist by the mayor’s office, may or may not exist. And the mayor may or may not be a beneficiary of this trust.  We have not seen a contract, and the mayor will not tell us who is getting the money.  Is it him?  We don’t know.  His daughter?  Not sure.  His wife?  His siblings?  We can only guess.

Does this supposed “contract” actually exist?  The Assembly thought so when they voted to release this money, but nobody seems to be able to produce it.  And if it does exist, does the Assembly even have the legal authority to pay the claim to the Mayor’s family?   The Municipality of Anchorage, after all, is not an insurance company.  And what about the legality of entering into this “contract” with a former mayor who was no longer in office at the time, and therefore not a municipal employee? And what makes former Mayor George Sullivan so special anyway?

Dan Sullivan tells us that his father has “literally given his heart” to the city.

Yes, the late Mayor Sullivan devoted himself to public service, but what about the many others in our community who have done the same? What about those who have served as Anchorage Police officers, Anchorage Firefighters, and other municipal employees?  Some of them risk their lives every day for the safety of others. Many have actually given their lives protecting us. What about those who have served for decades doing hazardous duty?  What do they get?   The answer is that they are compensated for their service, and when they leave municipal employment, they do not get an ongoing life insurance policy. 

And the current mayor, in this fiscal environment where municipal workers are losing their jobs, and public services have been cut, is nevertheless perfectly comfortable writing his own family a check for $193,000.

Keep in mind that in 1982, $193,000 was an enormous sum of money, comparable to half a million or more today. And how do we explain the fact that the premium went DOWN from just over $1,000 a year to about $550 a year?  When was the last time your life insurance premiums went down?   Dan Sullivan and his family paid less than $20,000 over twenty eight years for a payout of almost 10 times that amount. “We wouldn’t even be having this conversation today if someone had done this right in 1982,” said Assembly Member Harriet Drummond.

And when she proposed a resolution yesterday to be read at the Assembly meeting of March 23, which asks that serious legal questions about this situation be addressed, what does he say?  He says this:

It’s unfortunate that Ms. Drummond is playing politics with the death of my father. For 28 years, in good faith, we made payments to meet the obligation of this contract. Five administrations have had no problem with this.

Oh, yes. He went there.

One wonders if this policy had belonged to a certain former Congressman Nick Begich, and the trustee of the “policy” was the previous Mayor Mark Begich, would Dan Sullivan be galloping to his defense accusing Ms. Drummond of “playing politics with the de ath of his father?”   Think about that long and hard, because if the answer to this question is “no,” then the obvious conclusion is that Dan Sullivan is doing that very thing himself.

And as far as meeting “the obligation of this contract” we say…. What contract?   May we see it, please?  Show us the contract.

Finally, I’m going to hazard a guess that the reason these other administrations didn’t have a problem with it is because they didn’t know about it.  And none of them had to write a check for $193,000 that tipped them off.

Here is Drummond’s resolution that will be read to the Assembly on March 23.  We should all be thanking her for standing up and asking the tough questions. 

Submitted by: ASSEMBLY MEMBER Drummond

For reading: March 23, 2010

ANCHORAGE, ALASKA
AR NO. 2010–91

A RESOLUTION OF THE ANCHORAGE MUNICIPAL ASSEMBLY TO AUTHORIZE ENGAGING THE SERVICES OF INDEPENDENT LEGAL COUNSEL TO REVIEW AND REPORT TO THE ASSEMBLY ON THE LEGAL AND CONTRACTUAL OBLIGATIONS, IF ANY, AND THE AUTHORITY OF THE ASSEMBLY, IF ANY, REGARDING PAYMENT OF $193,000 IN MUNICIPAL FUNDS TO THE GEORGE M. SULLIVAN IRREVOCABLE LIFE INSURANCE TRUST, AND PROVIDING FOR AN APPROPRIATION.

WHEREAS, pursuant to Assembly Memorandum No. AM 76-2010, the Assembly was requested by and on behalf of the Mayor to appropriate One Hundred Ninety Three Thousand Dollars ($193,000.00) from the Areawide General Fund (Fund 101) for disbursement to the George M. Sullivan Irrevocable Life Insurance Trust; and

WHEREAS, Assembly Memorandum No. AM 76-2010 declared that disbursement would be made under a life insurance contract; and

WHEREAS, Assembly Memorandum No. AM 76-2010 did not disclose that the George M. Sullivan Irrevocable Life Insurance Trust was administered by the Mayor in his private capacity as the son of George M. Sullivan and Trustee of the life insurance trust; and

WHEREAS, Assembly Memorandum No. AM 76-2010 did not disclose that no life insurance policy was in place and no written life insurance contract existed; and

WHEREAS, AR 2010-33 was passed and approved by the Assembly, on February 16, 2010, authorizing disbursement subject to receipt of proper documentation from the George M. Sullivan Irrevocable Life Insurance Trust; and

WHEREAS, the full circumstances purporting to legally obligate the Municipality to make a payout of $193,000.00 in public funds are more complicated than provided in the summary under AM 76-2010; and

WHEREAS, the payout of $193,000.00 in public funds for life insurance without a life insurance policy in place has raised many concerns in the mind of the public and one or more Assembly Members, including these questions:

· What is the legal basis for asserting the existence of a life insurance policy or contract?

· What is the legal basis for asserting a contractual obligation in the absence of a written contract?

· What is the legal authority of the Salary and Emoluments Commission to authorize an employee benefit after employment has terminated?

· Were the legal requirements, procedures and process under Charter Section 5.08 (c) properly followed?

· What, if any, is the extent of a municipal obligation to make payment of $193,000 in life insurance without a life insurance policy?

· What is the current Assembly’s authority to approve or disapprove a life insurance payment in the absence of a life insurance policy?

· Is this disbursement recognized in the FY 2010 General Government Operating Budget?

· What process should be used under the Ethics Code to ensure that an elected public official does not sit on both sides of a municipal transaction?

· Under what public purpose are public funds being disbursed as life insurance? and

WHEREAS, the current Mayor is also actively serving as Trustee of the George M. Sullivan Irrevocable Life Insurance Trust, creating a situation in which he serves on both sides of a significant financial transaction involving public funds; and

WHEREAS, as Mayor, the incumbent is required to represent and act in the Municipality’s best interests; and

WHEREAS, as Trustee of the George M. Sullivan Life Insurance Trust, the Trustee has a fiduciary duty to the Trust to represent and act in the best interests of the Trust and its beneficiaries;

NOW, THEREFORE, the Anchorage Assembly resolves:

1. Because the events surrounding the creation and administration of a special benefit for the Honorable George M. Sullivan occurred after he was no longer in office and over the course of several mayoral successions without a full and public review before the Assembly, the Assembly authorizes an independent legal review to include the following:

· The authority of the Salary and Emoluments Commission, after the mayor or other elected official has left elected office, to authorize a special life insurance benefit;

· Whether a special life insurance benefit was legally effectuated for George M. Sullivan, when, and by whom or under what actions;

· The legal obligations and risks to the Municipality concerning the special life insurance benefit (prior to payment);

· The authority of the Mayor to request an appropriation when the Mayor also currently serves as Trustee of the George M. Sullivan Irrevocable Life Insurance Trust, without disclosure of the potential for conflict of interest;

· The public purpose under which disbursement of public funds is allowed as life insurance proceeds, without a fair market life insurance policy or premium payments.

· The authority of the Anchorage Assembly to approve an appropriation of public funds for this purpose.

2. The services of independent legal counsel shall be selected by the Internal Auditor, the Municipal Clerk and Assembly Counsel under a small procurement contract not to exceed [$5,000 – $10,000], and an appropriation of [$ 10,000] for this purpose is approved.

3. Until the Assembly is assured by independent legal counsel that payment of $193,000.00 in public funds is legally appropriate, the Mayor, in his private capacity as Trustee for the George M. Sullivan Irrevocable Trust, is respectfully requested to return any funds disbursed under AR 2010-33 to a special account to be held by the Municipality.

PASSED AND APPROVED by the Anchorage Assembly this ______day of ____________, 2010.

______________________________
Chair
ATTEST:
____________________________
Municipal Clerk

“I would have questioned this and voted the same way if it had been the Begich Trust, the Knowles Trust, or the Wuerch Trust. It’s that simple,” said Drummond, who expressed her concern about any mayor being on both ends of a significan financial transaction.

Assemblyman Matt Claman will also be introducing a resolution that will send this whole convoluted mess to the Ethics Commission.  So, stay tuned, settle in and pop the corn.  There is more to come.

Are We There Yet, Senator Begich?

By Shannyn Moore

Senator Mark Begich arrived back in Alaska Friday afternoon and I had a chance to ask him about Open Left reporting he was the 50th Senator for reconciliation.

“Health care reform has already passed the Senate by a 60 vote super majority. If the comprehensive health care bill passes the House, the ‘clean-up’ reconciliation could be passed through the Senate with an up or down vote.  I am waiting to see the wording of the reconciliation before voting.  I am well aware of the more than 100,000 Alaskans who are without health insurance and the rising costs for those who do.”

Reported earlier today, the Senator is open to using reconciliation for health reform.  From a letter to a constituent:

Thank you for contacting me regarding health care reform.

The reconciliation process is a budgetary tool used to address spending and deficit issues with a simple majority vote.  The budget reconciliation process has been used 22 times by both parties since 1980.  Action to clean up the health reform bill will further reduce the deficit.

Comprehensive health care reform has already passed the Senate with 60 votes.  If the House passes the Senate bill, the President could sign that version of comprehensive reform into law. I believe reconciliation would only be used as a tool to take out special backroom deals and to eliminate concerns raised by many Alaskans I’ve talked with.  The President has proposed narrow changes which I support, including completely closing the coverage gap for seniors’ prescription drugs, eliminating the special Nebraska funding provision, providing additional federal financing to all states to help pay for the expansion of Medicaid, and strengthening the Medicare waste, fraud, and abuse provisions.

Again, thank you for contacting me.  As the 111th Congress moves forward, please continue to be in touch with your thoughts and concerns.

Sincerely,
Mark Begich
U.S. Senator

That makes 50 Senators publicly open to using reconciliation to finish health reform without any maybes.  There will be a reconciliation fix to the Senate health bill, as long as the House first passes one.