The Anchorage Assembly changes course and approves a settlement with fired city manager Amy Demboski

The Anchorage Assembly on Tuesday reversed last week’s decision to reject a $250,000 legal settlement with former city manager Amy Demboski, approving the settlement by an 8-4 vote after a two-hour closed session with the city’s lawyers .

The Assembly vote ends a legal saga set in motion by former Mayor Dave Bronson’s sudden firing of Demboski in 2022.

Her termination ushered in a period of turmoil for City Hall, as Demboski accused Bronson of firing her in retaliation for whistleblowing. She accused Bronson and some of his officers of violating city laws, behaving unethically, discriminating against women and creating and tolerating a hostile work environment, among other things.

Bronson has never publicly commented on the allegations. As mayor, he repeatedly cited “potential litigation” or personnel matters as reasons for his silence.

The settlement failed on Friday with a vote of 6 to 4, without any public debate among members. That vote was also preceded by a lengthy, closed-door legal briefing with the city’s attorneys.

Assembly member Karen Bronga asked Tuesday to reconsider the agreement, saying “more information has come to light.”

“We just need to put it behind us and move forward as a city. As much as it pains me to distribute money like this, I believe it is in the best interest of the city at this time,” Bronga said, changing her vote from “no” to “yes.”

Demboski’s attorney, Scott Kendall, said in a statement Tuesday: “We thank the Assembly for approving this settlement and allowing all parties to move forward.”

The Assembly rejected a $550,000 proposal to settle Demboski’s claims in May 2023. At the time, some members said a lawsuit could be the city’s best chance to uncover the facts and that the public deserved answers.

Then, in September 2023, Demboski sued the city. She alleged she was subjected to discrimination and retaliation, a breach of the implied covenant of good faith and fair dealing, a violation of the Anchorage Whistleblower Act and defamation by Bronson and other officials. She alleged that the mayor and senior members of his administration engaged in “willful disregard and disregard for the observance of law and decency.”

The township entered into mediation with Demboski’s attorney in September and reached an agreement after a year-long legal battle.

Those who voted to approve the settlement Tuesday were Assembly Chair Chris Constant, Vice Chair Meg Zaletel and members Kameron Perez-Verdia, Zac Johnson and Scott Myers, as well as three members who originally voted against it: Mark Littlefield, George Martinez and Bronga.

The members Anna Brawley, Felix Rivera, Daniel Volland and Randy Sulte were against the comparison. (Johnson did not vote Friday.)

During the debate before the vote, some members expressed the belief that accepting the lower settlement amount was the most financially responsible decision.

“There is no winning here. If we settle, we lose. “We are fighting for a win on the pitch, it is still a defeat because the ground we have to fight on is so spoiled,” Constant said, adding: “The best answer for us at the moment is this game to finish.”

Volland, who did not vote Friday, said he viewed the decision as a question of “our values ​​as a community.” Settling the dispute “leaves a lot of things unresolved,” he said, adding that he believed it would be “in the public interest for this to be done in court.”

[Correction: An earlier version of this story incorrectly reported that Assembly member Scott Myers had initially voted against the settlement. Myers voted to approve the settlement both times.]