2006 Hollister Independence Rally Press Release

PRESS   RELEASE

2006 Hollister Independence Rally Cancelled

HOLLISTER, CALIFORNIA – February 15, 2006 – The Hollister City Council voted 3-2 to cancel the 2006 Hollister Independence Rally, citing concerns over the potential cost to the City's already struggling general fund.

The decision to cancel the rally comes after months of careful consideration.   Since 1997, the Hollister Independence Rally has been an annual event.   The 2005 rally brought an estimated 100,000 people to downtown Hollister during the event weekend.

Spiraling expenses caused a review of the feasibility of continuing the rally.   Starting in 2004, the City had to begin paying increased costs for assistance from state law enforcement agencies.   Due to the downturn in the state budget, these agencies could no longer provide services without reimbursement.   In addition, adjustments were made to ensure that contracts with officers from outside agencies conformed to state law.   Of course, as attendance at the rally increased over the years, additional law enforcement personnel were necessary to ensure the safety of rally attendees and the residents of Hollister.

In addition to law enforcement expenses, the City incurs costs associated with preparing for the event, as well as public works and equipment expenses.   Finally, there are other public safety expenses, such as supplemental firefighter/paramedic staffing.

The Hollister Independence Rally Committee (HIRC), a non-profit organization that has presented the rally since its inception, was responsible for all costs, including City expenses, associated with the rally.   Unfortunately, after the 2005 Rally, HIRC notified the City of Hollister that it was unable to reimburse the City for its 2005 law enforcement, fire public works, and other expenses.   In addition, HIRC reported that it would be unable to reimburse the City for expenses associated with a rally in 2006.   This left the City with a general fund expense of over $250,000 at a time the City is facing severe cutbacks and spending down its general fund reserve.   Facing the possibility of even greater expenses and further reduction of its general fund, the City Council voted to cancel the 2006 Hollister Independence Rally.

More information will be available in the coming weeks on the City's website.

Approved by:     Clint Quilter, City Manager