Two founders of the Hollister Independence Rally Committee have
resigned in protest after the president of the group submitted a
proposal that would allow him to sell sponsorship for the city’s
signature event and netting him significant profits in the
process.
Hollister – Two founders of the Hollister Independence Rally Committee have resigned in protest after the president of the group submitted a proposal that would allow him to sell sponsorship for the city’s signature event and netting him significant profits in the process.
Pat Akins and Linda Durie, two of HIRC’s three founders, tendered their resignation last week after board President Dave Ventura proposed HIRC enter into a contract with him to sell sponsorships for the event. Under the proposal, he could receive thousands of dollars in commission for landing sponsors.
“We started it not for profit, and when a board member enters into a contract with himself, essentially, I feel it’s a conflict of interest and something I can’t be part of,” said Akins, who emphasized the fact that HIRC was $25,000 in debt last year. “In a situation where we’re looking at not paying the city bill, I don’t think we should be paying board members. I would say greed is the word I’m looking for.”
Ventura’s proposal would garner him a 20 percent commission off a new sponsorship, 15 percent off an existing sponsorship and 10 percent of an “in-kind” sponsorship, which involves a company giving a product instead of cash, Ventura said. That means if he secured a $50,000 new sponsorship, he would pocket $10,000.
Ventura stated via e-mail that his proposal would save HIRC money in the long run, because the firms the committee contracted with to land sponsors for the past two rallies didn’t net any profits. Last year the outside firm HIRC contracted with got approximately $20,000 worth of sponsorships, Ventura said. He stated he would have no vote or signing authority on contracts he would profit from.
“I want to make this rally a success,” Ventura stated. “Some people may not agree with me, but this city needs this rally. We are at a crucial juncture in this rally’s history with rising security costs. If we don’t find a way to bring in more money then this rally will go under.”
He also said that the motorcycle industry is built on relationships, which he has established over five years of working on the rally, which could benefit the rally.
“You have to know people and earn their trust before they will work with you,” he wrote.
Securing enough law enforcement for the rally, which is set up to benefit local nonprofit organizations, has been one of HIRC’s biggest hurdles in the past and almost caused the City Council to cancel the rally in 2004. HIRC’s law enforcement bill usually tops out at $300,000, but all of the bills from this year’s rally haven’t been received yet. Rally officials are hoping to come out in the black this year after they pay them off.
On a more personal note, Ventura wrote that he puts in 60 to 90 hours, depending on the month, working on the rally in addition to working at least 50 hours per week at his regular job.
“So I’m asking for commission only on the sponsors I bring in. With this extra money, I can hire a cleaning person and yard person to do the things around the house I don’t have time for because I’m spending so much time on this rally,” he wrote. “If I do well with the sponsors, which I’m hoping to do, I can take my family on a much-needed vacation and get to know them again.”
HIRC Treasurer John Loyd said board member Bruce Beetz made Ventura’s proposal into a motion via e-mail Monday, but it has not been seconded. If it is, Loyd said he plans to vote ‘no.’
“I don’t think it’s appropriate for the sitting director of a nonprofit to benefit. It’s nothing against Dave; Dave’s a great guy,” Loyd said. “He could make a lot of money and HIRC could too, but then we’d have to explain why board members are making money off the rally.”
Loyd said board members were not impressed with the company they contracted with last year to sell sponsorship, and he conceded Ventura would do a much better job. If his proposal gets shot down, Ventura said resigning from the board and selling sponsors could be a possibility.
Board member Mario Encinias declined comment, and board members Karen Mulligan and Beetz did not return phone calls Tuesday.
Hollister City Manager Clint Quilter said there is no legal issue surrounding a board member profiting financially off the rally, however it definitely is an issue.
“It doesn’t look good when you have an organization struggling to pay its bills and you have a deal where a board member is profiting,” Quilter said. “I’m sure the (City) Council will be interested when it goes through the (contract) process.”
Every year Hollister City Council members can vote to cancel the rally, Quilter said. Council members are having a rally study session on Sept. 26, when rally officials hope to have an economic impact study outlining the financial impacts the rally has on the area finished, and will decide whether to enter into another contract with HIRC by October, Quilter said.
Hollister City Councilman Robert Scattini was unaware of Ventura’s proposal when contacted on Tuesday, but said he does not agree with the proposal. He also said it could influence his decision when it comes time to renew HIRC’s contract.
“It’s supposed to be for charity and everybody’s volunteering their time. What’s next, some of the board members want pay?” Scattini said. “I don’t think it’s right.”
If Ventura’s motion isn’t seconded by the end of the week it dies, however he has the opportunity to reintroduce it, change it or drop it entirely, Loyd said. But just the idea of a board member was enough to poison Durie and Akins on the idea of being involved in the event any longer.
“Pat and Linda’s departure is a real loss,” Loyd said. “They were founders and brought a lot of experience.”
Durie said HIRC board members, who founded the committee in 1996 and first brought the biker rally to Hollister in 1997, have haggled with one another over the years concerning board members personally profiting off the event.
“We set it up as a nonprofit organization with the whole concept of giving back to Hollister. Money is so tight for youth, for the Community Pantry, for the women’s center, that it makes you feel good to give something back,” Durie said. “I don’t think it’s right to profit off a nonprofit.”
Erin Musgrave covers public safety for the Free Lance. Reach her at 637-5566, ext. 336 or [email protected]
