Merced County pays food truck’s phone bill, personal car mileage

The founders of Make Someone Happy, the nonprofit that landed a six-figure Merced County contract to run a produce truck, are paid for their cellphones and a personal vehicle, the Merced Sun-Star has learned.

A review of Merced County invoices from November 2013 to January 2015 shows Don Bergman and Nancy Young-Bergman billed the county for cellphone charges each month, ranging from $150 to $237. Bergman said he and his wife use their phones “all the time” as part of the food-truck operation.

The county also reimbursed the Bergmans for mileage for a personal vehicle, in addition to paying the mileage for the produce truck. The food truck sells fruit and vegetables at 15 sites around Merced County.

Questions about the nonprofit’s finances surfaced a week after a Sun-Star investigation uncovered how the county used taxpayer dollars meant for child welfare programs on the produce truck. The report revealed Make Someone Happy had a fully-equipped truck before winning the contract, was the sole bidder and sent the truck to make stops at county buildings.

Merced County failed to notify other potential bidders about the contract, the Sun-Star confirmed, and at least two nonprofit leaders said they would’ve been interested in competing for it.

Make Someone Happy’s contract was paid using DoWith program funds, which are meant to provide services to help children in foster care and group homes stay with their families. At least one state official told the Sun-Star that using the funding on the food truck was “inappropriate” because it doesn’t target those in the child welfare system.

The county’s decision to use the money on Make Someone Happy came after officials disbanded an oversight committee to look after the money. The county’s plan to the state in 2009 promised that the oversight committee would meet quarterly, but Human Services Agency Director Ana Pagan said it quickly dissolved because of lack of attendance.

Pagan defended using the state funds for the food truck, saying the program promotes healthy eating and the money is meant to benefit all families, not just those in child welfare.

In an interview Friday, Don Bergman said the contract with HSA includes personnel, cellphone and mileage costs. According to the original and renewal contracts, personnel costs would be $99,700 the first year and $72,310 the second; travel costs would be $17,628 the first year and $14,000 the second. Other costs covered by the county were cellphones, laptops, generators, canopies and city-county licensing fees.

However, no receipts or bills were included with the invoices released to the Sun-Star through a public records request.

Make Someone Happy’s contract with the county began Nov. 1, 2013. But the invoices show charges to the county for cellphone bills from October and the cost of a Merced city conditional-use permit obtained before the contract began.

Merced County spokesman Mike North said a contractor can bill the county for expenses incurred before the commencement of a contract if the budget was approved by the Board of Supervisors. If the board doesn’t approve the budget, then the vendor has to pay the costs. Make Someone Happy’s contract was approved by the board.

Bergman told the Sun-Star his family is not profiting from the venture. Invoices show Bergman got paid between $2,000 and $2,500 a month as project manager. He said he puts in 60 to 65 hours of work per week.

The nonprofit also employs a paid truck driver and two paid sales associates. Bergman said Friday the revenue from selling produce pays a portion of the driver’s salary, truck maintenance costs and quarterly inspection fees.

The invoices show the county is also paying mileage on a “transport vehicle,” which Bergman confirmed belongs to him. He said the personal car is used to drive him and other staff members to the food truck sites. Just two people can be seated in the Make Someone Happy truck, Bergman said, which is why he drives his own car.

“It’s used every day,” Bergman said. “Let’s say I have put on probably 25,000 to 30,000 miles on my car between the transporting and picking up produce and things like that. I would say I go to five to six sites a week.”

The county pays 56 cents per mile for the Bergmans’ personal car and the food truck. The Bergmans put 17,478 miles on their personal vehicle in 15 months, amounting to $9,787.68. Bergman said the organization has not exceeded the amounts allotted in its contract.

Make Someone Happy’s first contract in 2013 was $177,528 and was funded by CalFresh and CalWORKs. The Board of Supervisors renewed the contract in October 2014 for another year. The renewal contract was $113,410, paid by funds that state officials say are for families in the child welfare system.

The Sun-Star also requested copies of Make Someone Happy’s Internal Revenue Service Form 990s from its Merced-based accountant, Grey Roberts. Roberts said the organization’s 2014 taxes haven’t been filed and he would need authorization from Bergman to release them.

A nonprofit organization’s tax returns must be made available for public review, according to the IRS.

Prior to last week, Make Someone Happy had no tax forms published on two informational websites, Charity Navigator and GuideStar. But the nonprofit’s 2013 tax form was recently added to GuideStar and shows a surplus of $1,120 for the year. The same website lists the organization’s income as $48,364.

Despite the recent scrutiny, Bergman maintains Make Someone Happy is operating as a transparent organization and thinks the criticism is “excessive.”

“I don’t have anything to hide,” Bergman said Friday. “We’re not cheating or doing anything dishonest. We’re following what HSA tells us to do and making things better for the community.”

This story was originally published March 6, 2015 at 8:27 PM with the headline "Merced County pays food truck’s phone bill, personal car mileage."