Fredi Hall of Indio addresses the City Council about the city's use of 62 credit cards during a special meeting on Wednesday. “I still think that many credit cards should be locked up and (only) used when necessary,” the former councilwoman said. / Wade Byars, The Desert Sun
Full investigation
Go to mydesert.com to read Sunday's Desert Sun investigation into Indio's use of credit cards.
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Indio residents on Wednesday questioned the City Council about widespread staff use of credit cards, saying it opens up the system to abuse.
The public scrutiny comes days after an investigation by The Desert Sun that showed the city's 62 cardholders had spent more than $805,000 since January 2008.
The credit card spending over a 22-month period transpired as the city experienced a painful economic decline and significant budget cuts were ordered by City Manager Glenn Southard.
An evaluation of nearly 1,000 pages of credit card statements showed tens of thousands of dollars were spent on charges that included travel, pricey meals and tickets for professional sporting events.
“I still think that many credit cards should be locked up and (only) used when necessary,” said Fredi Hall, a former councilwoman. “It's open to abuse and impropriety. I think spending on food and travel is excessive.”
Councilman Glenn Miller agrees.
“These are the kinds of expenses we should have been cutting out a long time ago,” he said.
Though Southard defends the spending as legitimate and necessary for business, at least four council members said they were surprised to learn of the number of cards issued.
Mayor Gene Gilbert, after conducting his own review of the documents requested by The Desert Sun, asked that the cards be pulled.
Southard began recalling the majority of the credit cards Monday. Department heads, key managers and City Council members will retain theirs. The others won't be returned until a review of the card policy and spending is completed and brought before the City Council.
‘Golden handshake'
About 20 residents had gathered inside City Hall for the public comment portion held before the Wednesday closed- door special meeting where the council was expected discuss a proposed “golden handshake” early retirement incentive and a performance evaluation of Southard.
But after more than 21/2
None of the five council members were available for comment.
During a meeting Tuesday with The Desert Sun to answer questions relating to the city's credit card use, Southard said he might consider taking advantage of the “golden handshake” if it meant saving bottom-level employees.
The incentive is part of the city's attempts to reduce the city's budget deficit and may offer two years of additional PERS service credit to those employees eligible to retire.
Southard — who has been with the city since 2005 — has about 36 years of public service, but 40 years invested in CalPERS. He purchased the extra years when the option was available.
Miller said he has an issue with giving a golden handshake to a person in a leadership position that would have to be filled — such as city manager.
“If we have to hire those positions back we're not going to save that much money,” he said.
Jesse Marin, president of the Indio Police Officers Association, which represents police officers, community service officers and dispatchers, said his organization would like to have input on the golden handshake proposal before it's approved.
“We are very concerned over the financial situation of the city,” he said.
“We want everyone to act responsibly that the leadership of the community does what is right for the people of Indio (and) its front-line workers.”
Mike Cohen of Indio said Wednesday he doesn't think it's appropriate to reward short-time employees with an early retirement incentive.
“Glenn's going to get a big enough pension without another two years (of CalPERS),” he said.
While most residents who spoke at the meeting on Wednesday were critical of the city's spending habits or the council's consideration of a golden handshake offer, three people spoke in support of the council, management and what has transpired in the city since Southard came on board five years ago.
Longtime resident Lana Hall said she doesn't want Southard to leave.
“I have seen many changes which have happened since our city manager Glenn Southard came to Indio,” she said. “I want them to stay here and finish what they started. I don't want to see him leave and I don't want to see his team leave.”
