EAST CHICAGO | The City Council voted 5-4 Monday night to take the power to review invoices and pay bills away from indicted Mayor George Pabey's administration and in a subsequent 7-2 vote ordered a subpoena of city Corporation Counsel Carmen Fernandez.
Fernandez will be ordered to come before the council May 24 to explain a new contract she recently received from the Pabey-controlled Board of Public Works that could be worth more than $260,000 a year. Her subpoena will be mailed this week along with two more for city Controller Charles Pacurar and Human Resources Director Francisco Rosado Jr.
At issue is the council majority's desire to wrest control of the fiscal powers held by the Board of Public Works -- an appointed three-member panel that includes former City Council Attorney Joseph Allegretti. He was fired by the council last month.
As an overflow crowd incensed by recent city layoffs looked on from outside the council chambers, Councilman Adrian Santos, D-1st, introduced the resolution to take those powers away from the Board of Public Works and give them to the council. He said the Pabey administration is keeping the council -- and taxpayers -- in the dark.
"I learned last week about contracts the public works are giving, and I think it is sickening. Some people this last week lost jobs. These are hard times for our residents, rough economic times for everyone and I cannot understand them approving (overly generous) contracts," Santos said. "We are the checks and balances, and we can look at these contracts. Does she deserve that contract? No!"
Santos said he wants to hear what Fernandez, who is Pabey's cousin, will be doing for the four-year contract. He called for a unanimous vote on the ordinance to usurp the Board of Public Works, but council members Christine Vasquez, D-4th, Robert Garcia, D-5th, Lenny Franciski, D-2nd, and Council President Richard Medina, D-at large, voted against the measure.
The effort could prove moot. If Pabey vetoes the measure, six council votes would be need to overrule him.
As for the subpoenas, Councilwoman Myrna Maldonado, D-at large, said she believes Fernandez's contract could be worth as much as $268,000 a year.
Upon questioning from Councilwoman Gilda Orange, D-6th, Allegretti said Fernandez had not signed the contract yet. He gave Medina a copy of a revised contract that would cap Fernandez's annual salary at $85,000. She would keep her medical benefits but forfeit her take-home car.
Monday night brought a continual shift from the new Council Attorney Stephen Bower and Allegretti to the podium to answer questions, with council members asking what rights they have to inspect contracts and other city spending records.
Bower responded he has never seen a situation like the one in East Chicago.
"The legislative body in every other community I represent gets these documents," he said. "Three people approving claims that are not elected is very unusual. This is your responsibility. You have turned over to outsiders the line-item responsibility, and you are the ones that need to know what's going on."
Pabey spokesman Damian Rico on Saturday said "the council has the right to request any document, and we are not going to impede on any of their requests." Rico had no further comment Monday night.
The council voted 5-4 in March to take the responsibility for writing checks and paying bills away from the Board of Public Works. But Pabey, who was indicted in February on embezzlement charges, vetoed the measure. The council didn't have the six votes required to overrule a veto.
Pabey is accused of having city employees perform work on a home he and his daughter own in Gary while the workers were on city time. The mayor was federally indicted in February and is set to stand trial this summer.
Medina, a Pabey ally, recommended that the council's finance committee do the review or consider hiring a financial officer, but Orange said the whole council should be involved.
Emotions ran high Monday, as Allegretti tossed Santos an envelope containing employees records the councilman had requested for some time. As he walked away, Allegretti said, "Aren't you going to thank me?"
