Police investigating Colver

June 30, 2006

By DARRELL L. BREESE/Frontiersman

PALMER - The Palmer Police Department is investigating Matanuska-Susitna Borough assembly member Jim Colver regarding his actions and possible misconduct in securing a subcontractor's bid on the borough's $16.2 million vocational school construction project.

The investigation stems from a series of e-mails between Greg Waisanen of Collins Construction, the Wasilla company that was awarded the construction contract, and a borough official. The e-mails allege inappropriate behavior by Colver - in particular that he used his position for personal benefit by steering subcontracting work to Colver Surveying, the business he owns.

Palmer police detective Kelly Turney confirmed that he has questioned several people about possible official misconduct and misuse of confidential information by Colver. Among those sought for questioning was Colver, who responded by directing all queries to his legal counsel, Scott Sterling, a criminal defense attorney based in Wasilla.

Turney said that Sterling informed him Thursday that Colver would not be answering any questions regarding the investigation.

Both violations are Class A misdemeanors and carry a maximum penalty of one year in jail and/or a $5,000 fine. No charges had been filed as of Thursday evening.

Questions surrounding Colver's involvement began when Waisanen expressed concerns to borough purchasing director Rustin Krafft about the bidding process for subcontractors . In an e-mail dated May 4, Waisanen wrote, &#8220there is an individual that is also a politician that will be very upset with me …” regarding his selection

of Slana Surveyor instead

of Colver Surveying for the project.

Waisanen said he felt pressured by Colver to award him the contract and that Colver acted improperly during the

bid process, giving him an advantage over his business competitors.

&#8220Mr. Colver used his position as an assembly member to gain access to the confidential and other design information about the project before placing his bid” Waisanen said. &#8220That gave him an unfair competitive edge in the bidding process. He had access that others didn't have.”

Colver indicated in a written statement that he participated in a meeting with project architects, borough and school district employees reviewing the design for the career center in January. During that meeting he recommended changes to the project.

&#8220That is something that other contractors wouldn't have been able to do,” Waisanen said. &#8220As a contractor I would love to suggest changes and review plans with the project architect before I make a bid on a contract, but that wouldn't be fair to the other potential bidder's so it is not allowed.”

Borough code states that the use of information gained from public office for personal gain is a violation. (MSB 2.70.120)

However, Colver indicated in his statement that he reviewed the drawings of the career center when they were available for assembly and school board review in December, as allowed by borough code (MSB 19.08.060). It was a public meeting, he said, so other potential bidders had the same opportunity he did.

The review of the design was not all that troubled Waisanen.

Waisanen said his concerns arose initially in March, when it was announced that the contract to build the new school would be awarded using the &#8220best-value” contracting pro-cess, which doesn't automatically award contracts based on the lowest bid. Waisanen opposed the change to the new system. Colver supported it.

Collins Construction re-ceived a letter of intent from the borough to be awarded the contract on May 15, the next day he got a call from Colver regarding his choice of surveyors for the project.

&#8220He indicated to me during the call that I shouldn't hold (differences of opinion) against him and that things would go more smoothly if he were on my team for the construction project,” Waisanen said. &#8220After that call, I felt I was backed into a corner and had no choice but to go with Colver as the surveyor.”

Waisanen then wrote an e-mail to Krafft stating that he &#8220gave into what amounts to blackmail in my mind so that the project would not be held up every other day,” by Colver complaining about everything.

&#8220I'm not proud of my choice,” Waisanen continued in the e-mail. &#8220But I felt with no one else raising the issue of collusion I was backed into a corner.”

Other than issuing a written statement that does not address all the specifics of the allegations, Colver has said for the record only that the charges are &#8220a political conspiracy” from opponents attempting to derail his bid for the borough mayor seat. He did not acknowledge the police investigation or his retention of legal counsel. He denied a request for an on-the-record interview Thursday and neither he nor Sterling returned several subsequent phone calls.

Waisanen denied his charges were politically motivated.

&#8220My motivation was to point out an apparent procurement problem which the borough purchasing department should be addressing,” Waisanen said. &#8220The last thing I wanted to do was tarnish Colver personally. My intention was to have this whole issue handled by the borough.”

Waisanen said he decided to break his silence on the matter only after Colver went before TV news cameras Wednesday night.

&#8220Colver is the one who went on the attack publicly,” Waisanen said. &#8220I had been reluctant to say anything to the media until he called me a liar. He made it personal, so I decided to speak up now, so people would know what was said and can decide what the truth is for themselves.”

Contact Darrell L. Breese at 352-2267 or at darrell.breese@ frontiersman.com.