Redevelopment is Costly Project

(posted Nov 12)

The biggest expenses are yet to come with the Speedway redevelopment project. However, the interim planning has also come with an additional cost.

The Speedway Redevelopment Commission's executive sessions can extract as much as $44 in public funds per meeting due to the need for bagels and coffee. Three recent September executive sessions breakfast meetings alone subtracted $116 from the SRC fund. Within a seven month run in 2006, the SRC spent close to $230 on bagels and coffee for commission meetings. The coffee tab runs about $15.00 a gallon.

SRC President/Executive Director Scott Harris would not directly answer questions about individual claims concerning coffee and bagels, but referred his comment from a position the SRC took in a general letter concerning claims that involved a $63 grocery bill, four cell phone bills of $297, a $21.99 book, and a $12.49 picture frame.

"In regard to the claims issues, the SRC has responded with our statement documenting the importance of balancing our responsibilities for the use of public funds with the administrative needs of this project," he said.

Harris relies on tax dollars to wine and dine clients as he sees appropriate to redevelop Speedway.

On April 20, Harris expensed $81 around 9 pm at the Kona Grill in Carmel, listing "Carmel Economic Development" as the justification. Later that night he reported meeting with Joie Chitwood at Dawson's on Main Street. The time posted on the $24 bill for margaritas and a Heineken was 11:38 pm.

His March 2007 expenses included meals from 2006 totaling $689, with over half that amount spent on vendors that bill the SRC for legal and professional services.

Commissioner Steve Bishop inquired about the claim review process at the May 21 meeting. Bishop indicated he was not comfortable with approving claims that he had not seen. He abstained from the vote. Bishop offered to review the claims at the town hall prior to the meetings. Harris indicated he would start sending claims out for commissioners to review prior to the meeting.

Although SRC members indicate they review the claims, their oversight is not always sufficient. Harris submitted two separate invoices for hours worked from Sept 1-14 which were approved by the commission. In reading the claims, the Speedway Navigator discovered that the second invoice appeared to be for Oct 1-14. When Harris was notified of the discrepancy by the Navigator he acknowledged the error and advised that "The dating of the executive director claim was a mistake, although the hours and dates were accurate. This claim has been corrected and has been provided to the Clerk's office."

The SRC also approved a claim for $27,378.91 for "communications services" submitted by American Structurepoint on behalf of Hetrick Communications. No details of what was provided by Hetrick were listed other than a $1.50 parking fee. Invoices submitted by other vendors such as Barnes & Thornburg and Abrams & Associates are much more detailed, sometimes down to 15 minute billing intervals. At the October 17 meeting, Harris explained the SRC reviews the claims and the clerk treasurer validates the math.

State Board of Accounts State Examiner Bruce Hartman said the guidelines for itemization require enough details that a reasonable person can determine the purpose of the expense. He also noted that SBOA often gives a waiver to wining and dining expenditures for redevelopment and economic development commissions because the entities are to recruit businesses to the area.

The State Board of Accounts considers any money to be public funds if it passes through the clerk-treasurer's office, and the SBOA can require public officials to pay back funds that it deems spent inappropriately. If the public official can't pay it back, it is turned over to the Indiana Attorney General's (IAG) office for collections.

IAG Press Secretary Staci Schneider said "there are approximately 150 to 200 cases open at any one time for collections from State Board of Accounts Audit certified to the Attorney General. The Attorney General's authority is triggered in a collection case when the SBOA certifies an audit for collection. When that occurs, the case is investigated and collection efforts are initiated."