The Lompoc City Council is taking steps to renegotiate its agreement with the Lompoc Valley Chamber of Commerce following concerns about missing financial audits and questions over the Chamber’s compliance with its current contract.
During the July 15 council meeting, members voted 4-1 to direct city staff to revise the agreement and return it with a new version at a future meeting. The July 15 motion also included an amendment from Mayor James Mosby asking staff to revisit language in Section IV of the agreement, which addresses financial reporting requirements.
The current agreement, set to run through June 2027, requires the Chamber to submit both a financial audit and a financial review during the contract term. City staff confirmed during the meeting that neither the audit for fiscal year 2023–24 nor the review for 2024–25 has been submitted.
Mayor Mosby, speaking during the meeting and in a follow-up interview, recommended that the city hold off on disbursing funds to the Chamber until those documents are turned in.
“I made the recommendation that we don’t pass moneys through until we’ve seen where the moneys have gone,” Mosby said. “There’s also items in the contract that recommend that a budget is put forward, and so we can see where the money is being spent. This is the people’s money, and it’s our responsibility to ensure it’s used appropriately.”
City Manager Dean Albro also stated that the lack of documentation constitutes a contract violation during the council meeting.
“Yeah, I would say that’s a breach of contract,” Albro said. “That’s why we’re demanding that they update their files.”
The council’s vote does not immediately pause funding or change the current contract. Instead, it gives city staff permission to work with the Chamber to draft a revised agreement that reflects council concerns. That updated version will be brought back for a future vote.
Councilmember Jeremy Ball cast the lone 'no' vote, citing concerns about how long the revision process could take. Ball also expressed that delays in approving a new contract could create financial strain for the organization.
“Is this a priority for us to figure out sooner than later?” Ball asked. “Or is this, we push this off two or three months and then we find out they couldn’t stay solvent?”
In a written response to KSBY, Lompoc Valley Chamber of Commerce President and CEO DeVika Stalling acknowledged the delays and confirmed that efforts are underway to bring the Chamber into full compliance. She pointed to both logistical and financial barriers, while also noting a lack of formal communication from the city.
Stalling provided the following full statement:
“We acknowledge that the Chamber is currently out of compliance regarding the submission of the required financial documents. However, it is important to note that the City also did not fulfill its commitment to provide the Chamber with an official letter outlining the new requirements & deadlines, which we were told would be forthcoming.
The delay in providing our audit and financial review is due to significant challenges in securing a CPA firm with the capacity to take on the work. Compounding this issue, the cost of these services has increased substantially—from approximately $4,000 to between $10,000 and $20,000. Despite these obstacles, and in the interest of transparency, the Chamber proactively provided City staff with our IRS Form 990 tax returns for fiscal years 2023 and 2024 while we continued our search.
We are pleased to share that we have secured a CPA firm based in the Fresno area, which is actively working on completing both the audit and the annual financial review. We remain committed to fulfilling our obligations and maintaining transparency with both the City and the public.”
The city’s Public Information Office confirmed that no final decision has been made about disbursing funds. City staff are now in the process of scheduling discussions with Chamber leadership to revise the contract and incorporate the requested updates. A timeline for when the revised agreement will return to council has not yet been determined.
Until then, city staff say any funding decisions will remain pending council review of the updated agreement, and whether the Chamber’s financial reporting is brought up to date.
