Tuesday, March 09, 2010

Assembly member Harriet Drummond just sent the posse after Dan "the desperado" Sullivan to retrieve the money he stole from our city's treasury.

This is Resolution AR No. 2010-91, which Harriet Drummond, this liberal bloggers favorite Anchorage Assembly member, just submitted for consideratin on March 23.

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

Damn! It is about time SOMEBODY took Sullivan to task for emptying the city's cash reserves while cutting services to its citizens!

If you are late to the party and a little confused by this resolution just go here, here, and here and you will soon know why Anchorage residents are so angry.

By the way, is it too early to draft Harriet Drummons to run for mayor of Anchorage? State Senator? How about Lisa's job?

(H/T to my friend, and fellow Alaskan blogger Phil Munger)

19 comments:

  1. icstraights5:24 PM

    AWESOME!!! GO ANCHOR TOWN!

    ReplyDelete
  2. Anonymous5:26 PM

    I hope the independent legal counsel is not Palin's lawyer? He is too dam busy keeping Sarah, Toad, their kids, the Palins and Heaths out of jail!

    Can the legal counsel do something about Kristan Cole before she runs off with our money? Where is our Alaska Fund Trust quarterly report? Do we need legal counsel? At least Sarah can post on her Face book why we do not receive quarterly reports. I hope Sarah knows this is a reflection of her leadership abilities.

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  3. Anonymous5:26 PM

    Well done, Ms. Drummond!!!

    You have to wonder why anyone thought this guy was Mayor material....

    ReplyDelete
  4. deebee6:00 PM

    Right on Ms. Drummons!

    ReplyDelete
  5. Anonymous6:05 PM

    What a Lady!!
    Let's see her first as Mayor, after we kick DS out, and then when Lisa's job is open go for that!!!
    SO much of AK politics is a joke to outsiders, and many of here in the state, it is good to see some attempt to be responsible!!
    RR

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  6. Thanks, Gryph!

    We need to make sure as many people as possible are there for this resolution's introduction.

    ReplyDelete
  7. wakeUpAmerica6:39 PM

    What the hell? Is your assembly dumber than dirt or what? How on earth could any group authorize the payment of $193,000 without seeing a legal contract authorizing it? Alaska must have a lot of moron dust blowing through Anchorage.

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  8. vilca6:54 PM

    March 23.... What if Damn Dan goes on a shopping spree with palin tomorrow ?

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  9. Anonymous7:17 PM

    Anyone want to bet that "Oh Danny Boys" Assembly cronies will vote it down? They voted overwhelmingly to give him the money, does anyone think they are going to suddenly have develop a backbone and take it back?

    ReplyDelete
  10. Anonymous7:33 PM

    vilca..
    That's what I thought. Right now he might be out buying one way airline tickets. Don't put anything past this guy.

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  11. Anonymous7:49 PM

    It is wonderful to see Ms. Drummond call for a legal opinion on this matter and not take the word of the attorney for the M of A, Mr. wheeler. (The Assembly had a contractual obligation to approve the disbursement, I believe is what he said!)

    Thank you, from all of us, Ms. Drummond. Take good care of yourself and I hope you have support for this action on the Assembly.

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  12. If Sullivan weren't just a self-aggrandizing windbag pos, aka man with integrity, he'd return the money minus the "premiums" paid in.

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  13. Anonymous11:14 PM

    This made Channel 2 tonight - from Sullivan's side. I think that TV station is in cahoots w/the Republicans. Sullivan said that Harriet was being politcal and then showed his Dad prior to death and the service, where Dan was near the casket. Remember, his father was way more favored than Dan! This is going to be interesting to follow. I do hope the Assembly votes for the investigation even though I'm sure our current mayor is going to do everything he can to get the citizens of Anchorage behind him. Harriet, hang in there!

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  14. Ratfish11:34 PM

    Patrick Flynn, Redeem thyself!

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  15. This news needs to go national so that more eyes are on the story. Will be interesting to see Dan's reaction. The days of a handshake and/or verbal contract are way gone.

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  16. Anonymous6:55 AM

    would think that a huge gathering would be in order to show Harriet support for her resolution and to send Danny boy a message he can’t miss!

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  17. Anonymous11:27 AM

    Keep posting stuff like this i really like it

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  18. This resolution spells it out and I hope it goes forward. This is theft of public monies and a pretty damn good amount to boot. It should never have gotten to this stage but now that it is here let's get on with it. Force his hand. Prove your case.

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  19. Anonymous4:43 PM

    Gryphen...

    I just watched Shannyn Moore's Panel with three of Shannyn's favourite guests.

    Harriet Drummond was on that show / panel. I commend this strong woman. It is not easy to stand alone..when others oppose your view and honesty. However, when a specific issue is wrong { as in the Sullivan issue } you stand tall and History will prove you right.

    Sincerely,
    Eileen

    ReplyDelete

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