The president of the Hollister Independence Rally Committee
announced he will not run for another term after the rally’s board
of directors voted down his proposal to allow him to profit by
selling sponsorships for the Fourth of July annual event.
Hollister – The president of the Hollister Independence Rally Committee announced he will not run for another term after the rally’s board of directors voted down his proposal to allow him to profit by selling sponsorships for the Fourth of July annual event.
After more than five years being involved with the motorcycle rally, President Dave Ventura’s time on the board will conclude at the end of the month, according to board members. He announced he would not be running for another term after his proposal to sell sponsors failed on a 2-2 vote, according to HIRC Treasurer John Loyd.
Board members did not know whether Ventura, who did not return phone calls Monday, will submit another proposal in an attempt to take over the marketing aspect of the rally. But Loyd, who voted against the proposal, said he believes Ventura would be a good candidate.
“I truly hope he considers the sponsorship role,” Loyd said. “We’d all like to see him be involved and sell sponsorships. We’re looking at a $300,000 bill from the city (of Hollister) and we need to be able to pay it. If he takes it, I think it’s great.”
Ventura said last week that the firms HIRC contracted with in the past didn’t net any profits. The outside firm HIRC contracted with last year only netted $20,000 worth of sponsorships, he said.
Loyd said no one else has submitted proposals to take over selling sponsors, but that the organization needs to enter into a contract with someone in the next six weeks. He also added that if Ventura does decide to pursue the sponsorship contract, his position as a former board member wouldn’t guarantee a partnership.
Ventura’s proposal made waves internally, causing two of the rally’s three founders to resign in protest. Linda Durie and Pat Akins left the committee because they did not agree with a director of a nonprofit organization personally profiting in any way.
While Akins could not be reached for comment Monday, Durie said if Ventura submitted a detailed proposal that she was comfortable with, she would support contracting with him and possibly resume her position on the board.
“Absolutely, that’s what I told him in the very beginning – if he stepped down I’d be willing, but I could not in clear conscious support a sitting director profiting,” Durie said. “Everybody volunteers their time. Our whole reason for volunteering our own time is to do something good.”
Both Durie and Akins cited HIRC’s past financial troubles in paying their bills to the city as their reason for opposing the proposal. Loyd estimated HIRC will have at least a $300,000 law enforcement bill to the city this year, and it is unknown at this time whether the rally will come out in the black. HIRC ended last year $25,000 in debt.
Ventura’s original proposal would have garnered him a 20 percent commission from a new sponsorship, 15 percent for retaining existing sponsorship and 10 percent of an “in-kind” sponsorship, which involves a company giving a product instead of cash. Ventura stated in an e-mail last week 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. He also stated that the motorcycle industry is built on relationships, which he has established over five years of working on the rally.
He also stressed that other nonprofit organizations have contracts with board members for selling sponsorships, and that the extra money from the contract would enable him to spend more quality time with his family that he has lost because of spending between 60 to 90 hours a month on rally matters.
But because HIRC has had trouble paying its bills year after year, board member Karen Mulligan, who also voted against the proposal, said allowing a board member to profit off the rally didn’t sit right with her.
“Just as a Hollister resident, I didn’t like the way it looked,” she said. “If he was not on the board I think he would do an excellent job. He’s got the marketing experience and he’s had the contacts for the last few years.”
While Hollister City Councilman Robert Scattini also expressed concern that a sitting director profiting off the rally may look bad, he said he would support HIRC contracting with Ventura 100 percent if he wasn’t on the board.
“Most definitely. He’s a really hard worker and go-getter, and I enjoy working with Dave,” Scattini said. “That whole group works hard and I think Dave would do an excellent job.”
Every year the City Council can vote to cancel the rally. Council members are having a rally study session next week, 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, according to the city manager.
Although Ventura’s proposal created a rift between some board members, Loyd was optimistic that HIRC members could put the matter behind them and continue trying to make the rally a fiscal success.
“It’s a real touchy situation,” he said, “but if (the founders) are willing to come back that would be a positive thing.”
Erin Musgrave covers public safety for the Free Lance. Reach her at 637-5566, ext. 336 or [email protected].
