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Breaking: Chamber Owes $241K in ‘Unallowable’ CVB Expenditures, Alleges City

by Brandon McMillan - brandon@turlockcitynews.com
April 25, 2015
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TurlockCityNews.com
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The City of Turlock released several documents on Friday alleging that the Turlock Chamber of Commerce owes more than $241,000 in unallowable expenditures from the Convention and Visitors Bureau (CVB) contracts from 2009 to 2014.

Since 1991, the Chamber of Commerce has managed the CVB, which acts as the tourism-marketing arm of the City of Turlock. In November of last year, the then Turlock City Council approved the 2015 contract, at $249,253, between the Chamber and City for CVB services, despite some councilmembers being concerned with the lack of available statistics.

During the Jan. 27 City Council meeting, Turlock Mayor Gary Soiseth announced that Council would review the Chamber’s contract and put the contract out to a competitive bid process, if approved by vote at the Feb. 10 meeting. However, before the Turlock City Council could vote on whether to put marketing and tourism services out to bid, Chamber CEO Sharon Silva sent a letter to the City announcing that they would initiate a 90-day contract termination process.

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“After a lot of soul searching, the Chamber Executive Board has made the decision that we would move forward and give the 90-day notice, saving you a lot of trouble to move forward with your RFP for the Convention and Visitors Bureau,” said Silva at the Feb. 10 Council meeting.

Now that the CVB contract is nearing termination — expected to terminate on May 3 — the City of Turlock has alleged that the Chamber spent more than $241,000 of taxpayer dollars on expenditures not allowed by the CVB contract, according to a letter sent by City Attorney Phaedra Norton to Silva on Friday.

“Based on the City’s preliminary determination, it appears that the total amount due to the City from 2009 through 2014, including potentially unallowable expenditures/journal entries/transactions is $241,297.07,” the letter reads.

The CVB is funded by transient occupancy tax (TOT) dollars, which is an additional tax put onto the bill of visitors who stay at Turlock hotels.

According to the audit documents, the CVB funds were spent on such Chamber of Commerce items such as $7,000 for “map to pay for scholarships” in 2009, $10,000 for “various chamber events funding” in 2013, and $3,500 for “chamber to repay CVB” in 2014, where the City alleges the CVB was never reimbursed.

In addition, there is $82,230 in funds intended for city maps and directories that were transferred to the Chamber of Commerce, according to the City.

Funds were also spent on fixed assets, such as a “Panasonic 65” TV System” ($8,456) and a “Printer” ($20,713). The City of Turlock is requiring the Chamber of Commerce return all of the fixed assets to the City within 60 days of the contract’s termination, by July 3, per the released documents. If not returned, the Chamber of Commerce would be required to reimburse the City of the assets.

Silva had no comment on Friday night, following the release of the documents, citing that she has no knowledge of the unallowable expenditures.

“I have no statement, because I have no idea what they are talking about at this point,” said Silva in an email to TurlockCityNews.com.

On Tuesday, at the regularly scheduled Turlock City Council meeting, Administrative Services Director Kellie Jacobs-Hunter will deliver a staff update on the winding down of the contract between the Chamber of Commerce and City of Turlock.

“I continue to encourage the Chamber of Commerce leadership to provide any information that might explain these questionable expenses,” said Mayor Gary Soiseth on Friday night. “To keep the trust in City Hall, I felt it was appropriate to add an update on CVB close-out efforts to Tuesday night’s agenda. As public officials we have the obligation to make sure all tax dollars are spent not only wisely, but also appropriately.”

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At the same meeting, City Manager Roy Wasden will deliver a staff update on the CVB request for proposal.

TurlockCityNews.com will continue to look into the allegations by the City of Turlock and update through a continued investigative series.

Turlock City Council will meet 6 p.m. on Tuesday in the Yosemite Room of City Hall, 156 S. Broadway.

Related Articles:
Mayor Lazar Votes to Give Chamber $249,000 Before Leaving Office, Now on Chamber Board

Council to Consider Terminating Visitors Bureau’s $249K Contract and Seeking Competitive Bids

Council Approves $249k Visitors Bureau Budget Without Report of Results, Stats, Data

Tags: BusinessChamberCityCVBEconomygovernmentjobsMarketingTourism
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Comments 30

  1. Grow up says:
    6 years ago

    D.j. Fransen is sponsoring another negative story on Facebook about the chamber making it look like a scandal. This is common practice when contracts are broken in a distasteful manner such as the kid mayor dis without even talking this through before announcing it on this TMZ site. This won’t even amount to much after because it’s only an accounting error. The accountant and city manager are to blame since this is over the course of many years.

    Reply
  2. Good says:
    6 years ago

    It’s about time good for Gary Soiseth

    Reply
  3. Good reporting says:
    6 years ago

    This is why TCN is my favorite place to get news. I know the reporters and owner get hit by the power circle in Turlock by saying they aren’t a legitimate news source. In all reality TCN is Turlock’s only news source.

    Keep digging and know that businesses will come around after the circle is broken up. I know many businesses who are scared to advertises because they fear Sharon Silva and the people in the board who tell her to do all this.

    The times they are a changin

    Reply
  4. Chamber CEO says:
    6 years ago

    How is this Chamber CEO still working here? She already said one time she had no idea as a quote and Mayor Soiseth said he contacted her. This looks like it has been a process so how can she say she has no idea what this is about? Someone needs to go.

    Reply
  5. Transparency says:
    6 years ago

    Like the City of Bell, public funds and the illegal use of monies for personal gain were discovered through exstencive audits leading to the toppling of city officials.
    I embrace transparency and believe the citizens of this community deserve an accounting of all tax dollars and those who have abused their positions be held accountable with legal action. Furthermore, there should be a closer look and audit of top city officials who have used city time and equipment to earn educational degrees to further their earnings for personal gain. Gary you are on the right track, expose those who have for years have elevated their standing in this community at the exspence of the tax paying citizens of this community. Thank you.

    Reply
  6. Joe B says:
    6 years ago

    Sounds like Sharon needs some jail time.

    Reply
  7. Silva Lazar Wasden says:
    6 years ago

    This was a money laundering scheme orchestrated by John Lazar, Sharon Silva and city managers forced to help them. City manager Roy Wasden has refused to follow in getting answers to Councilmember Amy Bublak’s questions because this started when Lazar was still able to give the city manager and city attorney a $1,000,000 contract deal for not doing this audit happening now. I think everyone can connect all the dots how turning a head to taxpayer fraud and waste gets you money for yourself. Lazar and Silva should probably go to jail and the city manager and city attorney need to be fired. The Chamber needs to be eliminated from Turlock and Gary Soiseth needs to be recognized statewide for catching all this. Turlock is still fighting Lazar’s corruption. According to the website Lazar is on the Chamber board too. After he voted to give the organization city taxpayer dollars. That should be illegal too.

    Reply
  8. Guest says:
    6 years ago

    It’s time for the state Attorney Genrals Office to come in and start cleaning house. Turlock the next Bell. It’s about time.

    Reply
  9. Time for heads to roll. says:
    6 years ago

    I was saying the grand jury needed to take a peak during the 2009 layoffs.

    Reply
  10. Guest says:
    6 years ago

    The compensation for a city manager and city attorney needs to be looked into. This is unacceptable and way of of line for a city the size of Turlock.

    Reply
  11. Old Turlocker says:
    6 years ago

    Does Sharon Silva have any idea what’s happening here?That she might be spending retirement behind bars. John Lazar mght be sharing a cell with her.

    Reply
  12. Come on really?! says:
    6 years ago

    These comments are just stupid. No one is going to jail. You guys are so naive that you have to find conspiracy behind every decision made. I fresh set of eyes is good for the city but really guys slows your roll because you just sound ignorant.

    Reply
  13. Fact? says:
    6 years ago

    Someone told me last night that Sharon Silva has a granddaughter that works with her in the Chamber. Is this true? If it is, it sure sounds fishy. Especially with money being misappropriated.

    Reply
  14. Guest: Downtown Business Owner says:
    6 years ago

    Not only did Silva know about these expenditures, she personally authorized them. She has been using the CVB money as a personal slush fund for years, and it’s about time someone turned this rock over. Wait until they start looking at the trips to Europe. And, yes, Silva’s granddaughter works directly for her. Nepotism, anyone?

    Reply
  15. Lazar supporters? says:
    6 years ago

    Where are all the John Lazar supporters now?

    Where are the chamber of commerce handouts who back Sharon Silva so they get paid?

    Reply
  16. Don Q-The Kid Mayor is vindictive says:
    6 years ago

    I support John Lazar & this whole “story” is a load of crap. The Chamber political board didn’t support Sosieth or Bublak and now look who’s going after them. Sosieth. What a cry baby and it’s so childish. Turlock voters when you elect a “Kid” to office, this is what you get.

    Reply
  17. Sharon Silva should hire an attorney says:
    6 years ago

    I work for a law firm in Modesto. Does anyone know what slander means? If I were Mrs. Silva, I would hire an attorney, this is a load of crap. Silva probably doesn’t have to call an attorney, the attorneys are calling her. Great going for the 100 day plan Mayor. He really is a snotty-nosed little kid.

    Reply
  18. Show me the 140K says:
    6 years ago

    The largest expense I read about in the Turlock Journal was the 20K printer. The current CVB contract has a couple of months left. This whole story smells of a young Mayor, who did NOT get the Chamber’s endorsement (they were the right ones, unlike our public safety gaffs) and now he’s going after them with Bublak, who ironically didn’t get the Chamber’s endorsement. Talk about sour grapes

    Reply
  19. Bill H says:
    6 years ago

    Sharon doesn’t need a slander attorney…she needs a criminal attorney.

    Reply
  20. Don't just blame ceo says:
    6 years ago

    Don’t only blame the chamber ceo. The taxpayers who are upset about this should look at former mayor John Lazar, city councilmembers Forest White, Bill Dehart, Steven Nascimento, city manager Roy Wasden, city attorney Phaedra Norton, the chamber ceo Sharon Silva and the chamber board members or political action leaders such as Kyle Kirkes, Jim Theis, James Brenda, Larry Smith, Chris Kiriakou, Jerry Powell, Mark Hall, Susan Quigley, Mike Romeo, Steve Gemperle, Fred Brenda, Mike Lynch, Jeff Segars of Foster Farms, Andrew Wigglesworth of Medic Alert, Lazar Piro, Mike Rose, Diana Bettencourt, Fred Brenda, Dean Doerksen, Michael Allen, Ashour Badal, Sam David, John Lazar, Guillermo Ramirez, Robert Rodarte and the accountant Kevin Berger.

    Reply
  21. Bublak BOUGHT her morals & ethics says:
    6 years ago

    The circus city council meetings are back. I thought we got rid of Howze/Spycher who were vindictive to anyone who supported their opponents. Now we have Sosieth & Bublak, Ms. Self-Proclaimed, “moral & ethical”, I have one word for you, robo-call. Most of us remember, and we won’t forget.

    Reply
  22. Kris Jenner says:
    6 years ago

    Is it me or does Amy look a lot like Bruce Jenner… I wonder if anyone has ever seen them together??

    Reply
  23. Concerned Citizen says:
    6 years ago

    Turlockians are the foremost experts on “Methmouth”. Have you seen all the people walking around town looking at the ground for thier teeth? And someone please tell me, why it is that every morning in Turlock it smells like wet donkey farts?

    Reply
  24. Guest says:
    6 years ago

    What is a Turlockian?

    Reply
  25. The Mayor of Turlock says:
    6 years ago

    If you must ask what a Turlockian is, then look in the mirror cause you are the true definition of a Turlockian. (Incompotent and uneducated). Have a nice day!!!

    Reply
  26. Guest says:
    6 years ago

    You need help. I will wish you happiness in your life.

    Reply
  27. classified c1 says:
    6 years ago

    To the ( concerned citizen )
    You must spend a lot of time with your head up a donkeys ass. Because a fart is one thing but to know a wet one, thats a bit personal you think.

    Reply
  28. Kris Jenner is right says:
    6 years ago

    Talk about LOL, yes, Bublak & Bruce Jenner have a lot in common. It’s time to come out!

    Reply
  29. Sour Grapes from Sosieth & Bublak says:
    6 years ago

    It’s evident, sour grapes for the two candidates who did not receive the Chamber endorsement. Bublak has been after Sharon Silva for years. Now, Sosieth is joining in, I won’t vote for you again. Shame on you for such obvious pettiness.

    Reply
  30. Chamber won and TCN dead says:
    5 years ago

    Looks like the Chamber won the battle because TCN is dead.

    Reply

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