How can I handle a project team member who asks the PM to set up meetings instead of meeting own tasks

This is very common scenario in public sector IT projects where govt. staffs are partially allocated to project. Despite best intentions of those staffs, it's hard for them due to their surrounding atmosphere. You (consulting project manager) may have to go extra-steps to enable/facilitate them.

As in weak matrix organizations, you start with unambiguous description of the member's assignments and well defined procedures around such assignments. Then, you sit down with staff (and functional manager) to discuss tentative schedules. Use your negotiation skills to lock-in their availability. If a project member is simply not interested in work, then you have to take formal actions like reporting to suitable authorities.

I do apologize if you consider my comment rough but calling human beings tools, no matter the context, is humiliating and shows a complete lack of respect.

I find even the word resource as being a little bit humiliating when used for people that are working on a project but tool is definitely a word that should never be used when talking about a human being. Slavery has been long abolished. Only slaves can be considered tools.