The City Council terminated a contract with the Hollister
Independence Rally on Monday so the two sides can negotiate a new
deal that includes compensation for policing and other
services.
The city, strapped with budget constraints, no longer wants to
provide services to the rally for free. Next year, officials
project those city services to cost about $115,000. Hollister’s
contributions have included law enforcement, added fire protection
and code inspections.
The City Council terminated a contract with the Hollister Independence Rally on Monday so the two sides can negotiate a new deal that includes compensation for policing and other services.
The city, strapped with budget constraints, no longer wants to provide services to the rally for free. Next year, officials project those city services to cost about $115,000. Hollister’s contributions have included law enforcement, added fire protection and code inspections.
The new contract should be finished within 30 days, officials from both sides said.
“When the contract was originally made up (in 2001), the economic climate at that time was different than it is now,” said Councilman Robert Scattini, who represents the city in HIRC negotiations.
In the past, aside from the Hollister Police Department, several other outside law enforcement agencies – including from the county and state – have sent officers to the event. All of those agencies have also already requested compensation next year, bringing the total added revenues needed by HIRC to about $230,000.
The rally operates each year on the weekend of July 4 and in recent years has drawn about 100,000 people, many from out of town. HIRC, a nonprofit, generates much of its revenues from vendor fees and merchandise sales. It donates a chunk of profits each year – in 2002, $25,000 – to other area nonprofit organizations.
The 2003 rally’s final figures are expected to be finished later this week, while preliminary numbers show a loss of about $1,500, according to HIRC executive director Bob Beals.
“You have to kill an old contract to start a new one,” said Beals of the new contract.
City officials have expressed interest in helping HIRC reach its lofty goal to more than double its revenues, which usually reach about $200,000.
“We really appreciate their understanding of the city’s financial situation,” City Manager Dale Shaddox said. “They’re showing a willingness to step up to the plate and pay those costs.”
During initial talks on the new contract, the two sides have discussed the possibility of expanding the rally area to accommodate 75 new vendor booths.
While discussing options for that rally expansion, both sides embraced a strategy that would avert jacking up the number of necessary police officers. If successful, it would prevent HIRC’s uphill climb for the 2004 event from becoming even steeper.
The city and HIRC have talked about several other strategies to boost next year’s revenues that include increasing vendor and business license fees for next year.
Hollister officials have also expressed concern about the city’s revenues from the rally. For the 2004 contract, there has been talk about requiring all vendors being required to use cash registers.
In the past, without such bookkeeping, the city could not accurately keep tabs on would be sales tax earned for merchandise sold.
