County Clerk spending under review
Spending may/may not be improper
The Jefferson County District Attorney’s office has confirmed it is assisting the Federal Bureau of Investigation in a review of Gilpin County Clerk and Recorder, Jessica Lovingier’s expenditures. The investigation, started early in 2009, was initiated by a telephone tip, resulting in a broadcast “expose” by a Denver television channel. Allegations in the most recent attack have included misuse of County funds, conflict of interest in awarding County business, and violating the residency requirement.
Lovingier has been accused of inappropriately spending moneys from the state’s Uninsured Motorist Fund and the Motor Vehicle Late Fee Fund. The lack of clear guidelines in both cases leaves spending open to interpretation. In some Colorado counties (Alamosa, Boulder, Chaffee, Delta, Douglas, Morgan, Routt, and Teller), money from the two funds is funneled into the General Fund and used for any or all purposes. In Chaffee and Teller Counties, the funds may also be used at the Clerk’s discretion. Lovingier holds the funds in accounts separate from the general fund and routinely reports the fund revenues in monthly reports at the public County Commissioners’ meetings. Beginning earlier this year, the Clerk also began detailing the expenditures in those reports. The documents are available to the public.
Records of the Uninsured Motorist Fund show the Clerk received $1,532 in revenues for 2005; $3,850 in 2006; $13,943 in 2007; and $12,216.26 in 2008. Per Colorado statute (42-4-1409) money collected as fines from uninsured motorists is divided fifty-fifty between the law enforcement agency issuing the ticket and the Clerk and Recorder’s office for the county in which the violation occurred. Funds are to be used for “supervision of the public highways.” Expenditures for items used by employees whose office administrates proof of insurance could be viewed as legitimate use of the funds.
The Motor Vehicle Late Fee Fund is fed by penalties imposed when a vehicle is not registered at the proper time. Colorado Statute 42-3-112 says only that late registration fees shall be retained by the department who registers the motor vehicle; there are no restrictions on spending. Gilpin’s Late Fee Fund showed revenues of $1,981 in 2005; $4,945 in 2006; $5,830 in 2007 and $6,605 in 2008. The combined total revenue for both the Uninsured Motorist and Late Fee funds from 2005-2008 was $50,903. Expenditures went to desks, ergonomic office chairs, chair mats, a toy area to occupy children while parents conduct business, cable television for the employee break room, a farewell event for Colorado county clerks, training supplies, computer upgrades, conference supplies and pictures, office supplies, Rockies tickets as the grand prize for last year’s food bank fundraiser, Kingdom of Gilpin Ball, IT support, hotel rooms in Denver for election training (reimbursed by the Secretary of State) and a room at the Isle of Capri for the technician on election day.
Lovingier is currently seeing the County’s IT consultant on a social basis. The County had contracted with his company before she knew him, she notes, and she wasn’t part of the contract process at that time. The original company, CMT, was awarded the contract via efforts of Vicki Nemec, the employee handling IT matters at the time. The company evolved into RKM after that, and then the partners divided the business. The technician providing Gilpin’s services does so under the company name of Teryx. He provides computer maintenance services for all of the County’s departments, at all of the County’s buildings, at $5,316 per month. Since 2005, the County has spent $422,702 for IT services. The contract now falls under the auspices of Community Development Director Tony Petersen. Lovingier is responsible for only the agreement governing election services. That agreement for 2008, signed by Lovingier, for the “Exchange Server and Installation” project, totaled $10,822. To avoid the charge of conflict of interest, Lovingier said she now has the County Manager review and approve contracted business.
Lovingier is currently living in the metro area. She was divorced in December 2007 and said she’d tried several temporary living arrangements in Gilpin while trying to buy or rent an affordable permanent home. With her financial situation becoming more strapped, she moved into a house in Centennial, owned by her mother. She’s been there about a year, she said, adding she intends to be back in Gilpin in the near future. County Commissioner Forrest Whitman said he had never discussed the Clerk’s living situation with her. Commissioners Buddy Schmalz and Nicholson both said they were aware of the Clerk’s living situation and understood it to be temporary. Nicholson had reviewed the residency requirement for elected officials and described it as “pretty broad.” She added she would be asking County Attorney Jim Petrock for a legal opinion to confirm her understanding that the residency requirement doesn’t require elected officials to live within the represented community at all times. If her understanding of the residency requirements is correct, she said Lovingier is not in violation.
Lovingier’s attendance at some Monday and Friday meetings, and her mileage reimbursements have been questioned. As to the meetings, “I was there,” she said. The Clerk explained she uses the same practice of other officials and business professionals for mileage reimbursement. “I use Google map,” she said, “and whatever the mileage is for that route, that’s what I use.” Lovingier was taken to task by a television newsman for turning in reimbursement requests from the Gilpin office to metro-area locations. He thought that mileage should be only from the Centennial house, said Lovingier. The County’s “Elected Official Travel and Expense Policy” reimburses mileage from the official’s “tax home,” their regular place of business. Lovingier has offered to pay back any reimbursement that doesn’t comply. “I’m happy to have anyone look at my mileage,” said Lovingier, “There was no intent to misuse funds. Come in and look,” she invited, “We’re striving to be transparent and it’s all here.”
Commissioner Jeanne Nicholson said she had spoken to the FBI and is cooperating with them in their investigation. She was also interviewed for the broadcast story, noting that editing had eliminated portions of her answers that might have been valuable to viewers. She said she had not had time to look into the allegations against the Clerk prior to meeting with the television newsman, so when answering some questions, she had relied on the county attorney’s advice, based on the information they had at the time. Having since had a chance to review the statute for spending from the Uninsured Motorist Fund, she said she now thinks some expenditures cited in the broadcast were not improper.
Gilpin Commissioners are now looking at County policy with intent to clarify ambiguities. That may include adding a “deviation deduction” to address mileage reimbursement when officials, conducting County business, make side stops along the regular route. At their May 14, 2009, meeting they directed the county manager to audit the expense and travel reimbursement records of all County officials for 2008 and 2009. Lovingier suggested the reimbursement request forms be revised to include specifics, “so it’s clear to everybody where, why and what it (an expense) is.” She added she would provide records for her entire time in office, not just the past two years. “I feel I haven’t done anything illegal. I’ve done as directed by legal counsel and I’ve done what is proper.” Colorado’s County Clerks are elected officials, independent of, and not under supervision of County Commissioners. They answer to voters.