\t\t\t\t\tWhat’s at stake:<\/p>\n
A City of Fresno policy meant to make government more efficient has led to top city officials giving out contracts worth $100,000 or less to consultants without oversight from the Fresno City Council and disclosure to the public. While they may speed up the city’s processes, some of the same consultants end up with more city contracts than others.<\/p>\n
This is Part 1 of Under the radar contracts. No oversight. Stay tuned for Part 2 of Fresnoland\u2019s investigation publishing Thursday, Jan. 8.<\/p>\n
In June 2024, Fresno City Hall was in the middle of a busy budget process<\/a> \u2014 on top of being embroiled in a police chief scandal<\/a>.<\/p>\n The same day the Fresno City Council approved a then-record $2 billion budget<\/a>, councilmembers also quietly passed a major policy change without any public discussion.\u00a0<\/p>\n Then-Councilmember Luis Chavez \u2014 along with Miguel Arias and Nelson Esparza \u2014 sponsored a resolution<\/a> allowing councilmembers and other city leaders to give government contracts to third-party consultants worth up to $100,000 \u2014 all without needing city council approval.<\/p>\n The policy change doubled the old $50,000 threshold for government contracts exempt from council scrutiny.<\/p>\n A Fresnoland investigation found that between 2020 and 2025, some city leaders regularly handed out these under-threshold government contracts to consultants \u2014 at times several of them to the same one in a single fiscal year. For example, one consulting company was awarded 19 contracts exempt from council approval in the span of those six years \u2014 worth just under half a million dollars in total.\u00a0<\/p>\n Because under-threshold government contracts are exempt from city council approval, they\u2019re also effectively exempt from public disclosure. There\u2019s no way for a member of the public to view how many under-threshold government contracts have been handed out by city leaders over the years. The total amount is unknown, but they add up to at least several millions of dollars altogether.<\/p>\n Additionally, Fresnoland found that consultants at times bill the city more than the value of the contract, even when the $100,000 threshold limit applies.<\/p>\n Just 11 days after the Fresno City Council increased the approval threshold, Chavez\u2019s city council office awarded a $100,000 government contract<\/a> to Local Government Strategic Consulting, a company run by local political consultant Alex Tavlian.\u00a0<\/p>\n The contract specified that Tavlian\u2019s company wouldn\u2019t bill more than $100,000<\/a> \u2014 as it never went before the Fresno City Council for approval.<\/p>\n Over the next six months, Chavez\u2019s council office paid Tavlian\u2019s government consulting company $131,042.35, according to invoices and payment records<\/a>.<\/p>\n That included Chavez\u2019s council office paying Local Government Strategic Consulting more than $16,000<\/a> a month<\/a> for constituent outreach \u2014 something typically done in-house by a councilmember\u2019s staff, rather than an outside contractor.\u00a0<\/p>\n At the same time \u2014 from July<\/a> to November 2024<\/a> \u2014 Chavez\u2019s office also paid Tavlian\u2019s company more than $31,000 for Facebook ads, which also coincided with the runoff election for Fresno County District 3 supervisor, between Chavez and incumbent Sal Quintero.\u00a0<\/p>\n Chavez declined Fresnoland\u2019s requests for an interview. He also did not respond to a list of detailed questions sent via email. Tavlian did not respond to Fresnoland\u2019s requests for comment or to a list of detailed questions via email either.<\/p>\n Their July 2024 contract never appeared before the Fresno City Council for approval, even though payments to the consulting company<\/a> were not only greater than the initial contracted amount<\/a>, but also greater than the approval threshold for government contracts<\/a> exempt from city council approval.<\/p>\n A Fresnoland investigation found that it was the third year in a row that Chavez\u2019s council office paid Tavlian\u2019s government consulting company more than the approval threshold.<\/p>\n While the June 2024 city council resolution sets rules for these smaller, under-the-radar contracts, Fresno\u2019s city code<\/a> also sets clear boundaries. City council approval<\/a> \u201cis required if the total proposed expenditure of city moneys under the contract and any amendments thereto exceeds\u201d the city\u2019s approval threshold.<\/p>\n Additionally, all contracts over $100,000 are generally subject to a public bidding process<\/a>, with some exceptions, according to Article 9, Section 1208 of Fresno\u2019s city code.\u00a0<\/p>\n Fresno city councilmembers say reform is needed<\/p>\n Fresnoland filed two California Public Records Act requests to obtain all contracts, invoices and payment records between the City of Fresno and Tavlian\u2019s government consulting company over the span of five years. It took eight months in total for the City of Fresno to provide the records.\u00a0<\/p>\n Those documents show that the City of Fresno paid Tavlian\u2019s consulting company $557,572.85 between January 2020 and January 2025.<\/p>\n About 83% \u2014 or $463,872.85 \u2014 either came directly from Chavez\u2019s office or were funds that Chavez motioned to be awarded<\/a> to Tavlian\u2019s company.<\/p>\n Fresnoland took its findings to the Fresno City Council. Most of the councilmembers who agreed to speak to Fresnoland said they didn\u2019t want to directly criticize Chavez \u2014 a former colleague to most of them and now a sitting Fresno County supervisor.<\/p>\n However, the councilmembers who spoke to Fresnoland said more oversight and stricter rules should be put in place.<\/p>\n \u201cIf that expenditure is to a single vendor, and it\u2019s going over the voted-on, established, approved limit, then that\u2019s pretty black-and-white: It\u2019s a violation,\u201d Councilmember Nick Richardson told Fresnoland. \u201cI don\u2019t know what the accountability mechanism is to hold them accountable, but clearly it\u2019s not working.\u201d<\/p>\n Five members of the Fresno City Council \u2014 Richardson, Miguel Arias, Tyler Maxwell, Brandon Vang and Mike Karbassi \u2014 said they\u2019d support reforms to increase the City of Fresno\u2019s transparency on city contracting, including the publication of an annual report listing all no-bid government contracts listed by consultant, which would include contracts worth $100,000 or less.<\/p>\n \u201cMost of them will be boring and uninteresting to 99% of people,\u201d Richardson said. \u201cBut I think it\u2019s worth it because the ones that pop up \u2014 that are alarming and make the democratic hairs on the back of your neck stand up \u2014 they deserve their time in the spotlight.\u201d<\/p>\n Councilmembers Vang, Maxwell and Karbassi shared similar perspectives.<\/p>\n \u201cThis situation shows the need for stronger transparency and accountability,\u201d Vang told Fresnoland. \u201cGiven the City\u2019s current financial situation, it would make sense to consider lowering the contract threshold back to $50,000 to make sure larger expenses receive proper Council review before approval.\u201d<\/p>\n \u201cThe city council makes millionaires every month at city hall,\u201d Maxwell told Fresnoland. \u201cSometimes we\u2019re giving out smaller contracts and I think those require a level of transparency, too.\u201d<\/p>\n \u201cIt\u2019s totally doable,\u201d Karbassi said. \u201cIt\u2019s probably going to be a long list but it\u2019s public record. I don\u2019t see why not.\u201d<\/p>\n Councilmembers Nelson Esparza and Annalisa Perea did not speak to Fresnoland.<\/p>\n It\u2019s unclear how many under-the-radar contracts exist<\/p>\n Fresnoland also reviewed the City of Fresno\u2019s contracts database<\/a>, which showed that Fresno\u2019s city manager, for years, has handed out dozens of government contracts to consultants either equal to or less than the city\u2019s approval threshold. There\u2019s no way for members of the public to know how many of these contracts have been handed out to consultants over the years.<\/p>\n Fresno is California\u2019s fifth largest city by population. It\u2019s also one of only a handful of California cities with a strong mayor form of government<\/a> \u2014 along with San Francisco, Los Angeles, San Diego and Oakland.\u00a0<\/p>\n Some California cities are ahead of Fresno in terms of transparency and smaller dollar contracts. For example, the City of Oakland has a policy that requires public disclosure of all contracts handed out by city leaders<\/a> that don\u2019t need city council approval.<\/p>\n