Commissioners Ask County Administrator To Report On Employee Stays At Vegas Casinos

County Administrator Verna McDaniel says Ann Arbor Commissioners Rabhi and LaBarre asked her to prepare a report that addressed  The Ann Arbor Independent’s March 11 story that documents county employee and elected officials’ stays at Las Vegas casinos, Michigan resorts and luxury hotels nationwide.

WASHTENAW COUNTY   Administrator Verna McDaniel  told The Ann Arbor Independent that two Ann Arbor County Commissioners had asked her to prepare a report in response to The Ann Arbor independent’s March 11, 2014 piece about the use of county-issued credit cards. In that article, The Indy revealed that multiple county employees had used their credit cards to pay for stays at Las Vegas casinos, Michigan resorts and luxury hotels across the country, including multiple stays at Hyatt, Hilton and Crowne Plaza hotels.

Ms. McDaniel’s report includes information on trips taken by several of the county’s highest paid employees including Gregory Dill and Patricia Denig, Dale Vanderford, Drain Commissioner Evan Pratt and Pratt’s staffer Harry Sheehan.

The report did not address credit card charges for multiple stays at luxury hotels, including the Waikiki  Sheraton, by former Washtenaw County Head Start Program Director Patricia McGee.

When asked about Ms. McGee’s $1,846 charge for her stay at the Waikiki Sheraton in May of 2011, Ms. McDaniel seemed startled.

Ms. McDaniel’s indicates that Dill, Denig and a host of other county employees attended conferences related to professional development and education. In most all of the cases Ms. McDaniel examined and justified, stays at casinos and luxury hotels by explaining that: “The conference partnered with the hotel and offered reduced rates and ease of access to the conference functions.” (Download the entire  report here: McDaniel_Report)

However, officials who organize conferences typically provide a variety of hotel choices. For instance the Association of Student Affairs Administrators in Higher Education hosts a conference each year.

The association’s conference information, according to conference organizers there, always includes a selection of hotels, including a choice which is “economical,” such as a Holiday Inn. The same is true  of virtually all of the conferences attended by the county’s employees.

While a hotel may offer a “special rate” to conference attendees, that rate is by no means economical, according to ASAA officials.

Gregory Dill, one of McDaniel’s top-level administrators, attended what she termed an important conference at the MGM Grand Hotel and Casino. In three days, taxpayers paid the bill for $237 worth of food and drinks for Mr. Dill and paid for $1,036 in hotel charges for 4 nights. Ms. McDaniel in her report writes, “The conference was held at the MGM Grand – conference attendees were offered reduced rates at the hotel with ease of access to the conference. Staying at another hotel might result in additional transportation charges.”

According to officials at the MGM Grand Hotel and according to the Casino’s online room reservation website, a four night stay in a room with two queen beds is priced at $640. Americas Best Value Inn, located .3 miles away from the MGM Grand conference site, charges $103 per night.

County taxpayers paid $32.42 for Mr. Dill to dine at a buffet at the MGM Grand. Similarly, IT staffer Dale Vanderford spent $30.62 on a meal at the Grand Lux Cafe at the Luxor Hotel and Casino.

USDA data show that the average family of four in the U.S. spends $151-$189 per week on food. Washtenaw County credit card policies in place permitted Mr. Dill to spend $237 on meals over four days, a per meal cost of $19.75.

According to piece in Bridge Magazine by Michael Brennan, CEO of the United Way of Southeastern Michigan, in our state “the average SNAP benefit is $1.50 per meal.”

Dale Vanderford stayed at the Luxor Hotel and Casino for one night and then moved to the Venetian Palazzo Hotel and Casino. According to McDaniel’s report for the August 26-31, 2011 stay, “Total hotel charges were ($1,122.93) and break down to  $357.84 (Luxor) and $765.09 at the Palazzo.”

Again according to County Administrator McDaniel, “The hotels chosen were partner hotels of the conference and offered reduced pricing to conference attendees. Staying at a partner hotel allows for reduced lodging cost and ease of access to the conference.”

As was the case with Mr. Dill’s stay at the MGM Grand, there are several hotels within one-quarter of a mile of the Luxor and Venetian Palazzo Hotel and Casinos whose room rates would have saved taxpayers 40-50 percent of what Mr. Vanderford spent.

In February 2013, County Drain Commissioner Evan Pratt used his credit card to pay for a $504 stay at Michigan’s Grand Traverse Resort. In July 2013, Pratt again used his county-issued credit card to pay a $565.18 charge at Michigan’s Crystal Mountain Resort.

Pratt responded in McDaniel’s report: “Crystal Mountain hosts the state Drain Commissioners conference, and the costs are all inclusive for meals and lodging.  Harry (Harry Sheehan is a senior environmental manager for the Water Resource Department) was there for 3 days and 2 nights and did a presentation; I was there for 4 days/3 nights due to the Executive Board and Legislative Committee meetings prior to the educational sessions.  Usually it’s around $150-$250 a night there, I notice the amounts were small enough” to escape mention.

Evan Pratt also claimed to have spent “about $1,000” of his own money attending a conference in Chicago.

The IRS publishes approved reimbursement amounts for lodging, travel and meals. Washtenaw County’s Travel Policy—a one-page document—includes this guideline: “The use of IRS per diem rates is encouraged where appropriate as an efficient business practice.” All of the trips by county employees addressed in Ms. McDaniel’s report exceeded IRS per diem rates for the years in which the trips were taken, sometimes by as much as 60 percent.

In its March 11 article, The Ann Arbor Independent reported that credit card records showed, “On May 1, 2012, Patricia Denig charged a $1,200 airplane ticket to Miramar, Florida and on May 2, 2012 racked up three $201 charges at the Southern Point Hotel and Casino and Spa in Las Vegas….on May 3, charged a $468 ticket to Miramar, Florida.”

In this instance, Patricia Denig’s county credit card was used to pay for travel costs for other county employees. Ms. McDaniel explains:

• These charges were for 3 employees, Tyne Lucas, Johnny Epps and Rana Al-Igoe.
• The aircraft tickets were flights to Las Vegas, not Florida.The flights were on Spirit Airlines, which is located in Miramar, Florida.
• Tyne, Johnny and Rana attended the National Association of Workforce Development Professional – National Conference. The conference was held at the South Point Casino Hotel & Spa.

Tyne Lucas is a management analyst, Rana Al-Igoe is a management assistant and Johnny Epps is a community services professional.

Another county employee who travelled to Las Vegas and stayed at a casino at taxpayer expense was Mechelle Hardy, a management assistant. The March 11 article reported that, “between November 20-25 2013 credit card records indicate Hardy made multiple purchases at the Luxor Hotel and Casino in Las Vegas…cab rides… meals and Starbucks’s.. Delta Airline charges and parking at Metro Airport.”

County credit card records show that in February of 2014 Mechelle Hardy used her credit card to pay a $330 charge at the MGM Grand Hotel and Casino, as well as charges at the hotel’s Starbuck’s.

Ms. McDaniel’s report to the County Commissioners states, “Mechelle attended the Administrative Professional Course, November 18th – 21st, 2013, sponsored by PA Douglass and Associates.

• National conference and training opportunity not offered at a local level….
• The conference partnered with the hotel and offered reduced rates and ease of access to the conference functions.”

According to officials at the International Association of Administrative Professionals (IAAP) in Kansas City, local conference and training opportunities exist for administrative professionals in Michigan.

“There’s the Michigan Institute for Educational Management conference. It’s a great group, and they have their two-day conference every year in Grand Rapids, Michigan,” said Tracy Orpin who manages the IAAP’s annual conferences.

The County Administrator revealed that two $938 stays at a Hampton Inn in Washington, DC were paid for using Susan Shipley’s credit card. Nathan Voght and Stephen Wade attended a conference in Washington, DC. Nathan Voght is an Economic Development Specialist and Stephen Wade is a management analyst. The county employee’s $1,876 hotel bill was paid for using money from HUD’s Community Challenge Planning Grant.

McDaniel told County Commissioners that “The purpose of travel was the annual meeting of HUD Office of Sustainable Communities Grantees, a required conference associated with the County’s competitively awarded $3 Million Community Challenge Planning Grant.” She added, “These costs will be paid for with the same grant funds.”

Verna McDaniel, in speaking to The Ann Arbor Independent, outlined the internal controls in place to guard against inappropriate use of county credit cards. “Department heads review travel requests,” she said. Between 2011 and 2014, McDaniel made just  nine purchases with her own county credit card. Five of the charges were for meals out. Over the same period, Ms. McDaniel’s department made 179 charges total, 49 of which were for food.

The county’s credit card policy states: “As a general rule County funds are not to be used to feed county employees during the course of their normal workday.” The policy does allow exceptions.