06/18/2006

Septage plant pays off for attorney

Houlihan has pocketed more than $200K

By Brian Mcgillivary

bmcgillivary@record-eagle.com

TRAVERSE CITY — An attorney who manages Grand Traverse County's failed septage plant pocketed more than $200,000 since 2004 for his work on the project.

And the more problems the plant encounters, the more money he makes — over $64,000 for work related to the year-old collapse of the plant he oversaw.

Traverse City attorney Michael Houlihan is paid $150 an hour for work he does for the county's Board of Public Works, regardless of the task. He bills the county the same rate whether he's sitting in on a training meeting with local septage haulers or drafting contract documents.

Houlihan's bills covering plant repair are supposed to be paid by the plant contractor, Gourdie-Fraser/Christman, with the rest covered by septic pumping fees.

Since 2004, when the county began isolating his billing for the septage plant from other county projects, he's been paid $207,191, a source of irritation to some close to the project.

"It's terrible, it makes no sense to me," said Acme Township Supervisor Bill Kurtz, who sits on the county's water and sewer committee and is perhaps Houlihan's leading critic.

Kurtz pushed without success to have Houlihan fired, based on the plant's cost and a litany of problems associated with the facility.

Kurtz contends Houlihan is too emotionally attached to the project, and too closely aligned with the project's designer, Gourdie-Fraser Inc. He holds out hope Houlihan will one day be bounced from the county payroll.

"I have to believe his days are numbered, but it's just a matter of when and if they have the guts to do it," Kurtz said.

Houlihan was made project manager in 2002 by the then-supervisors of Elmwood, Acme, Peninsula, Garfield, and East Bay townships, the five townships that guaranteed bond payments on the $7.8 million plant. The townships comprise the water and sewer committee, along with a county commissioner and the city manager of Traverse City.

Houlihan has represented the county Department of Public Works since 1977, and said he wouldn't be doing the job if he didn't believe he is capable. He also offered to resign as project manager after the plant collapsed, but committee members rejected the move.

"Quite frankly, he's kept the wheels on the buggy through this whole project despite (Kurtz) trying to derail it," said Peninsula Township Supervisor Rob Manigold.

Kurtz and township supervisors Glen Lile of East Bay and Deri Smith of Elmwood won township elections — and appointments to the water and sewer committee — after the septage plant plan was devised. Lile and Smith thus far have not supported Kurtz's desire to fire Houlihan, nor have they publicly questioned why the townships are employing an attorney to manage a construction project.

"I was not there when this thing was started and I don't know why he's there, but I don't think we should change horses so near the end of it," Lile said.

County Department of Public Works Director Chris Buday has both an engineering and law degree but was bypassed for the project manager's job in favor of Houlihan.

"Michael (Houlihan) was the best guy for the job," Manigold said. "He's got tremendous experience in the master sewer agreement, contracts and how the DPW works."