County and San Juan reject Hollister’s offer for fire protection services

April 22, 2025

San Juan Bautista and San Benito County have rejected Hollister’s latest proposal for fire protection services, citing an inability to cover the $3.9 million in shared increased costs.

Both agencies have asked Hollister to reconsider the terms that were offered in March.

Supervisor, San Benito County, Mindy Sotelo’s statement

At the San Benito County Board of Supervisors April 15 meeting, Supervisor Mindy Sotelo said the county cannot afford the cost increase, which comes with an additional 8% annual increase.

Sotelo said: “I do think we owe it to this community to do everything we can and to turn over every single stone.”

San Juan Bautista City Council members, who also met April 15, had similar concerns. Councilmember Jose Aranda said: “There is just no way we are going to be able to pull this off.”

Hollister City Council has said it’s been subsidizing fire services for many years. The effort to renegotiate a new contract began May 2024.

The city agreed in principle with San Juan Bautista in October and with the county in March, but concerns over minimum staffing at fire stations and the potential closure of Fire Station 3 led Hollister to change its negotiation approach.

The latest offer included a shared $1.25 million one-time payment to offset the impacts to the city during the negotiation period and a required minimum of three firefighters per station.

Hollister left it to the county and San Juan Bautista to come to an agreement on splitting the cost increase.

Counteroffers

San Juan Bautista’s counteroffer includes the terms that it rejected in March. It calls for a new rate of $418,279 for fiscal year 2024-25 with a 11% rate increase.

It also includes a minimum of two rather than three firefighters at the San Juan Bautista fire station, which was the main reason the San Juan Bautista City Council said it rejected the previous offer.

Aranda said he struggled with that clause but was willing to let it go because San Juan Bautista can’t afford to pay more. He emphasized: “At this point I’d rather have a fire station than not.”

The City Council on April 15 directed staff to analyze other options such as requesting fire protection services proposals from other agencies.

Features of the counteroffer

San Benito County is also countering with Hollister’s first offer, which both agencies accepted in principle but Hollister later rejected following community pushback.

It includes the county paying $3.38 million for fiscal year 2024-25 plus a 3% annual cost increase; paying up to $400,00 for eligible expenses and reimbursement of ambulance expenses retroactive to January 2019.

The county requested that Hollister remove a clause that allowed the city to close Fire Station 3, located at the Hollister Municipal Airport. 

Both contracts would end June 2028 and could only be terminated for a lack of payment. The three jurisdictions have partnered to conduct a countywide fire district feasibility study, though the county has hinted at potentially pulling out.

The Board of Supervisors also directed staff to analyze creating their own fire agency by contracting with Cal Fire. The Hollister City Council is scheduled to discuss the issue at its April 21 meeting.

Hollister has been the provider of fire protection services since 2013. San Benito County previously contracted with Cal Fire for services. The state agency is still responsible for areas included in the state responsibility areas, which covers the majority of the county.

The San Benito County 2022-23 Civil Grand Jury Report found that Hollister Fire Department’s resources were stretched thin due to staff shortages and equipment issues.

Hollister Fire Chief Jonathan Goulding told the Board of Supervisors he had 41 firefighters, including “quite a bit” on long-term disability. He said two firefighters on disability are not expected to return.

According to the National Fire Protection Association, most fire departments have between 1.5-1.8 firefighters per 1,000 residents. San Benito County’s ratio is 0.6 firefighters per 1,000 residents.

Hollister’s offer for fire protection services rejected by County and San Juan: Summary

Hollister’s latest proposal for fire protection services has been rejected by San Juan Bautista and San Benito County, citing an inability to cover the $3.9 million in shared increased costs.

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