Infighting Could Put Chamber of Commerce Out of Business

They call it the Duarte Chamber of Commerce, but lately it appears that the only deals being made are the kinds done behind other people’s backs.

Caught up in a whirlpool of political maneuvering, mass resignations and personality clashes, the chamber’s board of directors finds itself in a struggle to keep the organization afloat.

“It’s time for a major change in direction and leadership,” said one director, Jim Goodwin. “I’m not sure which, maybe both. But I do know we need to change things if the chamber is going to survive.”

The political pressures have been building since new executive officers were selected for the 217-member chamber in July.

It exploded into the public eye a month ago when a former chamber employee appeared before the City Council and suggested that the group’s use of $50,000 in city funds might warrant closer scrutiny.

Council inquiries began about two weeks ago and got off to a tumultuous start when, just hours before the council was to hear from a chamber representative, three of the chamber’s four executive officers suddenly resigned.

“I know that the timing makes it appear that this was set up, but it wasn’t,” said former chamber President Gini Loop, who denied that her, or her colleagues’ resignations were in any way related to the city’s investigation.

“This decision broke my heart,” Loop continued, “but I just got tired of walking into board meetings and seeing everyone prepared to fight with one another.”

The council’s response to the resignations was to send the chamber a written notice stating its intent to terminate the chamber’s contract within 60 days.

“Most of the chamber people we negotiated the contract with are gone,” Councilman John R. Fasana said. “And their reasons for resigning have left us concerned that the remaining directors may not be willing to fulfill the contract.”

The chamber’s most recent contract was signed in June and made several significant changes from previous agreements. Under the old pact, the chamber’s funding had come from two sources: 15% of the city’s business license revenues and matching funds equal to one half of the dues the chamber received from its membership.

In order to make ends meet under the old system, the chamber complained, it spent most of its time trying to recruit members and did not have time to implement programs the city wanted.

Fasana said the city responded by agreeing to pay the chamber a flat fee of $50,000 a year. Those city funds currently provide about 50% of the chamber’s revenue, with the rest coming from dues.

Inside sources said the chamber is researching how to operate on reduced funds, but one director privately conceded that the group might be unable to survive if the city withdraws funding.

The city’s old contract had required that the chamber produce a monthly newsletter, compile an annual directory of businesses operating in Duarte, and “actively participate” on the Duarte Rose Parade Float Committee. The chamber was also responsible for providing seminars and activities to assist local businesses in “maximizing productivity and profitability.”

Under the new contract, many of those specific requirements were replaced with more general terms that included encouraging businesses to come to Duarte, assisting the city with public improvement projects, and “providing publicity for the community on a regular basis.”

“It was hard selling the contract to the rest of the council, but we agreed to a general contract because we were comfortable that the chamber’s negotiating team knew what needed to be done to meet the needs of the business community,” Fasana explained.

Councilmen James Kirchner and John C. Van Doren have been meeting with chamber directors to discuss the resignations and how they will affect the chamber’s ability to perform. After the first meeting Nov. 3, Kirchner expressed optimism that any lingering problems would soon be resolved.

But in a sign that conflict still exists within the group, chamber director Irv Tons resigned immediately after the Nov. 3 session. He said nothing had been accomplished and that fellow directors were still preoccupied with their political struggles.

“I’m frustrated,” Tons complained at the time. “There are too many back-room meetings and private telephone conversations. They’re focused on duking it out and are losing sight of the important issues.”

At least three directors, two of whom resigned, blame the turmoil on Gordon Dill who, as the chamber’s salaried manager for the past five years, is responsible for overseeing daily operations.

In her letter of resignation from the executive committee, former Chamber secretary Debbie Lopez accused Dill of “creating total chaos amongst the directors.”

“I understand why the officers resigned,” said Goodwin, “There was a real lack of cooperation from Gordon Dill and some of the directors. On several occasions, Mr. Dill refused to go along with the executive committee’s requests.”

Goodwin said Dill had written a very negative letter to the chamber’s former public relations representative, Sheryl Polk, after she resigned. And although he was expressly told by Loop not to send it, Dill did so anyway.

Polk later appeared before the council and expressed concern that the chamber was taking the city’s money but was failing to provide the business community the services it deserved. Polk said she decided to speak up after receiving Dill’s letter.

Some present and former directors suggest that the six new members brought onto the board in the past month were judiciously selected to stack the panel in Dill’s favor.

“How could I place people?” Dill responded with a chuckle, “I don’t even vote.”

“The board chooses directors,” Dill emphasized. “They’re under no obligation to take anyone I bring to them.”

Loop claims Dill threatened on several occasions that he would have her removed from office if she did not go along with him on issues.

Dill denies that allegation but acknowledged that several directors had expressed concern to him about Loop’s performance as president

“I live my life by two rules--compromise and majority rules,” Dill said. “The officers who resigned were not able to compromise and tried repeatedly to put their agenda through. The majority of the board rejected them on every issues, so they left.”

Dill declined to elaborate, saying that the issues involve personnel matters that, under California laws, cannot be discussed.

In Goodwin’s opinion, however, everyone in the chamber’s leadership shares the blame.

“Gordon hasn’t given the business community what they deserve,” he said of Dill. “But the board of directors is just as much to blame as he is. We’ve created our own problems by not focusing on a direction for the chamber and we need a fresh start.”

The chamber appeared to have taken the first steps toward that new beginning on Monday by electing a new slate of officers to head the 14-member board of directors. The board met Thursday afternoon with council members.

According to director Alfredo Mejia Jr., the chamber presented its answers to allegations leveled against it and addressed the city’s concerns about the organization’s ability to support the business community. A final decision on whether to continue funding the chamber may be made at the council meeting Tuesday.

Even if the chamber does manage to put its problems in the past, Tons does not think it will make much difference to anyone outside the chamber.

“Unless the chamber’s problems affected them personally, no one is going to care what happened three months from now,” the former director said. “Even if the chamber closes, it will only have an immediate impact.

“As long as the city can offer an alternative, the only people who will remember the chamber will be those of us who worked with it.”