05/06/2006

Leelanau treasurer is under investigation

Prosecutor looking at side work she did for title company

BY IAN C. STOREY

istorey@record-eagle.com

Kilway

LELAND — Prosecutors are reviewing whether Leelanau County Treasurer Vicki Kilway broke any laws by working on the side for a title company she hired to do county work.

Michigan State Police conducted an investigation and forwarded a report to Leelanau Prosecutor Joseph Hubbell, but Hubbell would not comment on its contents or when he would decide on the case.

Kilway said she hired Title Check, LLC, of Kalamazoo, to do work for Leelanau County under Public Act 123 of 1999, which gives county treasurers in Michigan authority to conduct title work or contract for services to collect taxes on delinquent properties.

Title Check subsequently hired Kilway.

"I did do some work for them, yes, but am I am the only one in the state doing it? No," she said. "The work that I did for them was not during the normal work week, it was done on my own time. I have complied with everything in those statutes."

Leelanau Sheriff Michael Oltersdorf said he received information about the case "a couple months ago" and asked state police to intervene to "avoid the appearance of impropriety."

Kilway said she was interviewed during the investigation.

"There was nothing illegal being done," she said. "I was left with the impression after my interview that there will be no criminal charges."

Marty Spaulding, general manager of Title Check, said Kilway hired his company a year ago to conduct title work on approximately 300 delinquent properties. A one-year contract with the county is worth about $30,000, he said.

Spaulding said the work Kilway did for Title Check consisted of 30 or 40 "10-minute jobs" that totaled "hundreds of dollars," but not any "substantial amount."

"She does not do all our title work, but just does odd jobs, real routine things when we need something looked at or review files," he said.

Kilway, county treasurer since 1981, said she cleared $1,800, after taxes. She said she did not need county board approval to hire Title Check.

County administrator David Gill said he did not know the "particulars" of the investigation.

"I do know there was an investigation and the prosecutor got the report," he said.

Spaulding, whose firm does work for over 50 counties, said it's a "widespread" practice throughout the state for treasurers and other employees to do off-duty work.

"It is actually a pretty commonplace," he said. "This new legislation has been the topic of more than a few news stories, but this is not illegal, immoral or uncommon."