Assembly accepts report critical of Begich, then moves on

The eventual vote to simply accept municipal attorney Dennis Wheeler's investigation of whether Begich and his executives were candid and truthful with Assembly members about city revenue and investments last year was 10-1.

But the real decision came on a vote to postpone action until after a work session next month on the issues Wheeler raised, and to give the attorney time to respond to Begich administration complaints that his investigation was incomplete and inaccurate. That one failed, 5 votes in favor with 6 opposed.

"The pledges to get to the bottom of this are ultimately going to be divisive to this body," said Assemblywoman Sheila Selkregg, who recommended the body instead work on improving reporting requirements for any administration to keep the city's legislative body fully apprised of city spending issues.

Assemblyman Dan Coffey, however, said the vote to accept the report was an effort to silence further investigation of what he described as important issues raised by Wheeler.

"I have unanswered questions," Coffey said, adding that the now nearly year-long running dispute has undermined public trust in government, and his own trust in what the Assembly was told last year when it was approving a $433 million budget for this year and four long-term labor contracts.

A few weeks after those votes, and days after Begich had stepped down in January, acting Mayor Matt Claman announced the city faced a $17 million deficit for 2009.

"Trust has been lost," Coffey said. "We asked questions and got deflected answers. ... It's very (problematic) when our body cannot trust the people who work for the city."

"But it ain't over," Coffey said. "We're not done."

Coffey's remarks prompted a tart response from Assemblyman Mike Gutierrez, who voted against continuing the Assembly's consideration of the report. Gutierrez said Coffey was right about trust being compromised, "but a lot of trust has been lost on both sides."

Gutierrez said criticisms about the report's accuracy raised by former Begich finance executives led him to question city attorney Wheeler's motivations.

"I don't trust you any more," Gutierrez told Wheeler. Later, Gutierrez said he regretted that remark and that he planned to publicly apologize to Wheeler.

Begich's former chief fiscal officer, Sharon Weddleton, came to the meeting with packets of handouts -- "16 pages of mistakes" she said she found in Wheeler's 60-page report to the Assembly that was released Nov. 18. But Weddleton chose not to address the Assembly at Tuesday's meeting and left the chamber without having given them her list. Both Weddleton and former budget director Wanda Phillips argue that Wheeler failed to look at or ignored important city records that don't support his conclusions.

"It's time to move on," Weddleton said. "Showing my list of mistakes to the administration would most likely drag this out and waste yet even more taxpayer dollars. I believe it's time to move forward and start working on running the city rather than playing Monday morning quarterback."

Wheeler has said his investigation was thorough, and that he sought the expertise of Mayor Dan Sullivan's current top finance officials in trying to understand what he found.

"I looked at everything that anybody provided to me as well as looking at things that I dug up on my own," he said. "Since none of them (Weddleton or Phillips) have seen the evidence that I looked at they can't make those statements without supposition or speculation."

Wheeler said all the documents he reviewed have been scanned into city computers and that all that information, as well as his report, are available to the public through links on the municipal clerk's Web page.