City officials and Hollister Independence Rally organizers
recently learned of more financial setbacks that could lead to
cancellation of the annual event.
Outside law enforcement agencies recently informed the city
they’re unwilling to assign officers if Hollister doesn’t assume
liability for potential workers’ compensation costs.
City officials and Hollister Independence Rally organizers recently learned of more financial setbacks that could lead to cancellation of the annual event.
Outside law enforcement agencies recently informed the city they’re unwilling to assign officers if Hollister doesn’t assume liability for potential workers’ compensation costs.
So if an officer from another city’s department would get injured, Hollister would pick up the medical tab.
Local leaders stressed the city can’t afford the chance of paying potential workers’ compensation claims. In the past, outside agencies took on that risk – while supplying a total of about 40 officers to the rally security force.
“The city simply can’t afford it – number one,” City Manager Dale Shaddox said. “The Council cannot afford having the appearance of subsidizing a Fourth of July event while at the same time laying off 36 of its employees.”
The latest obstacle for HIRC adds to an existing challenge that hasn’t been solved: How will organizers generate an additional $240,000 in 2004 to break even?
That quandary arose last summer when Hollister and other jurisdictions informed rally organizers that HIRC would have to pay for sworn police officers’ presence. Hollister terminated its contract with HIRC in October – expecting to re-negotiate a deal with the new provision.
Before the city agrees to a new contract with HIRC, Shaddox said he wants an assurance, “up front,” the rally can generate those necessary revenues.
Officials acknowledged the financial problems could result in cancellation of the rally. That idea, they said, has been discussed as a possibility.
Mayor Tony Bruscia on Friday said he didn’t want to speculate. But whether the possibility has been raised – “Oh, absolutely,” he said. And other leaders confirmed that potential.
The workers’ compensation issue arose in the past three weeks, as city officials started calling law enforcement agencies to obtain commitments for the 2004 rally.
Furthering the security problem, many outside agencies informed Hollister officials – because of budget constraints and personnel cutbacks – they simply won’t provide their presence anymore, according to officials.
“Some can’t afford to send anybody because they’re so short-staffed right now,” Police Chief Jeff Miller said.
City officials met with HIRC members Wednesday and Thursday to discuss the revelations. They plan to continue meeting throughout this week.
After the first two meetings, Shaddox said he “didn’t get the impression” HIRC has figured out how to double its revenues by the July 4 weekend. HIRC previously generated about $200,000 a year, and overall it lost about $30,000 in 2003.
HIRC officials, meanwhile, have remained optimistic. Though Executive Director Bob Beals called the financial circumstances “trying times.”
He said he would meet with the police chief today to discuss outside agencies’ reluctance to commit to the rally.
“I think we’ll get through this,” Beals said, “because I think we have to.”
HIRC and city officials have discussed alternatives for rally policing – namely the possibility of hiring a private security firm, which Beals called a “viable alternative.”
But Shaddox and Council members aren’t supportive of that idea, as private security enforcers can’t carry guns and they don’t maintain as much authority as sworn peace officers.
“In the event of a serious episode, they (private security) would not be available to act as police officers,” Shaddox said.
The San Benito County Sheriff’s Department is among the agencies that want compensation for providing security, according to Sheriff Curtis Hill. Last year, the department’s deputies accumulated overtime pay during the event monitoring activities of organized motorcycle groups, he said.
In past years, the county Board of Supervisors has sent invoices to Hollister, Hill said, as a “political message” to show how much taxpayers’ dollars are spent on the event.
The Sheriff’s tab for 2003 was not available by press time.
Hill said outside agencies’ requests that Hollister cover potential workers’ compensation costs is “good, solid public policy.” He also said he would support the rally dissolving.
“I don’t think it’s good for our community,” he said. “It’s a complete waste of taxpayers’ money. We need to celebrate the Fourth of July for what it means as a country.”
Beals said he’s confident that doesn’t have to happen, and that rally organizers are striving to prevent it. Though he did say, “There’s always the possibility of something like that.”
If the organized version of the rally dissolves, he said it would hurt many area businesses and nonprofits – each year HIRC donates proceeds to local philanthropy organizations.
Businesses – such as restaurants, hotels and food stores – would take major hits, he said. And not just in Hollister, he said, as the rally’s tourist draw stretches to surrounding counties.
“The impact is much bigger than Hollister,” he said.
