Traverse City Record-Eagle

Archive: Sunday

June 10, 2012

Spike in per diem charges attracts eyes of auditors

Commissioners' part-time base salary is $5,500 per year

BY BRIAN McGILLIVARY bmcgillivary@record-eagle.com

TRAVERSE CITY — Auditors are reviewing a spike in expense claims submitted by some Grand Traverse County road commissioners.

The county road commission's per diem policy, which allows for payments of $35 to board members for each meeting they attend beyond regularly scheduled sessions — recently was cited as an area of concern in the commission's annual audit. Auditors continue to study per diem requests and payments.

Road commission Chairman Marc McKellar led the five-member road board in expense charges with claims for $3,395 in 2011 and $1,860 for the first five months of 2012.

The county's five road commissioners work part-time for an annual base salary of $5,500, plus taxpayer-funded health insurance and a pension. The commission chairman makes an additional $1,000 each year and the vice chairman an extra $500.

Some of McKellar's payment requests raised questions among auditors, including charges for telephone calls with the board's attorneys and payments he received for attending three social networking events in January.

"If they are on that list, they pertain to the business of the road commission, economic development, stuff that is relevant to the road commission," McKellar said. "I don't charge for everything, but if I have a meeting and sit down face-to-face, or a telephone meeting that takes half an hour, you bet, because that's cutting into my personal time. It's cutting into my business time."

McKellar initially said he didn't recall three January meetings for which he billed the county. And he denied seeking payment to attend the Traverse City Area Chamber of Commerce's annual dinner meeting.

But documentation obtained by the Record-Eagle through a Freedom of Information Act request showed the meetings included the Chamber's annual dinner, one of its Business After Hours events, and a meeting sponsored by a local business publication.

The Chamber describes Business After Hours as a monthly networking event to "meet and greet in a relaxed, social setting."

The business publication refers to its gathering as an opportunity for "mixing and mingling ... at our after-work party."

All three meetings were "absolutely" appropriate, McKellar said after documentation that he billed the county for those events was cited to him.

"I'm chairman of the board and I represent the road commission," he said.

Fellow Road Commissioner John Nelson disagreed. He called the charges "out of line."

"We are in austere times and budgets are tight," Nelson said. "I thought, and continue to think, the per diem is abused."

Nelson acknowledged the road agency's per diem policy is "vague," but said attending ceremonies, ribbon cuttings and meetings with staff or attorneys should not entitle road commissioners to extra payments. Such work comes with the territory — and the base salary, Nelson contends.

Nelson said he stopped charging for per diems and mileage in May 2011, after he amassed $595 in charges.

Road Commissioner Dave Taylor charged the road commission $2,950 in 2011 and $1,440 through May 2012.

"I go to the meetings that I think I need to attend," Taylor said.

Road Commissioner Carl Brown charged $700 in per diems for 2011 and $755 so far in 2012.

Road Commissioner Jim Maitland charged $980 in 2011 and $210 in 2012. He declined to comment.

Almost all meetings for which commissioners claimed per diems were for assigned duties, documents show, though Taylor and Brown included charges for ceremonies and one or two meetings with attorneys or other road commission staff. McKellar collected per diems for 13 meetings with individuals, including phone conversations, in 2012.

McKellar said all commissioners follow protocol, terms and conditions set forth by the Grand Traverse County Board of Commissioners, "right down to the letter of the law."

The county board sets road commissioners' salaries and the amount of their per diems, but not their per diem policy, said Larry Inman, county board chairman.

"I've never seen their per diem policy, but if they say it's the same as the county, they are not following it," Inman said.

The county board would not pay its members for any social events, ribbon cuttings, or meetings with individuals as claimed by some road commissioners, Inman said. The county board pays only for established meetings related to county business or training.

"I guess its time to have a discussion with the road commission," Inman said.

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