Potential conflict of interest on DMV office closures deserves examination

The most important slide of all was missing from the package of eight slides presented to the Senate Transportation Committee by Administration Commissioner Kelly Tshibaka—the one that detailed the increased costs to consumers by privatizing six offices of the Division of Motor Vehicles.

As to why and how the most important DMV slide was MIA, no one seemed to know. It was among those that Tshibaka had in her presentation as she talked about her plans for privatization.

Tshibaka, who is lining up to run against Sen. Lisa Murkowski in 2022, wants to close state offices for the Division of Motor Vehicles in Delta, Tok, Valdez, Eagle River, Haines and Homer.

According to the state budget proposal from the Dunleavy administration, closing the offices would eliminate six state jobs, while increasing costs to consumers. Private companies are being signed up to provide services at higher fees.

“On the right-hand side is what you would be charged at one of our larger private partners. So this UMV is common in a lot of cities around Alaska. But this is just an example of a private partner cost. In several of these cities that we’re talking to, it would not be UMV that opens and private partners have the freedom to charge their own prices,” Tshibaka said.

UMV, LLC, which is owned by Einar and Krista Gonder, relatives of health commissioner Adam Crum, and part owners of the Crum family business, Northern Industrial Training. The company opened in 2007 as Alaska Tags & Titles LLC, owned by the Crums.

The recorded menu on the UMV phone line certainly appears to be the voice of Adam Crum.

UMV has offices in Anchorage, Wasilla and Fairbanks. This connection and potential conflict of interest should have been revealed to legislators and the public.

The state would retain all of the fees listed in the middle column, while the contractor collects the difference between those numbers and the right column. I’m not sure what these UMV numbers are based on, however, as the company website presents a different picture and includes the $90 tax in addition to what it calls the “convenience fee.” Anchorage and Mat-Su renewals for new vehicles cost up to $300.

Tshibaka said she could not identify which private companies she is dealing with because contract negotiations are in process.

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