Hollister reverses fiscal emergency after utility-staffing alarm
City of Hollister, California · Meeting date: October 19, 2026 · Published: October 20, 2026
Hollister City Council has rescinded the fiscal-emergency resolution that had triggered water-division reductions and directed the return of employees placed on administrative leave. The emergency action followed testimony that the cuts threatened operational oversight of the city’s water, sewer and stormwater systems.
Key points
- Council unanimously approved emergency actions to rescind the fiscal-emergency resolution and return employees on administrative leave, while directing HR to meet and confer with unions and work with department heads on service priorities and workflow.
- City staff had said the Water Fund was insolvent and that staffing reductions left three Water Operator IIs and one Senior Water Operator to maintain essential operations.
- A utility supervisor said five water operators and the supervisor position had been eliminated, raising concerns over 24/7 SCADA monitoring, wells, lift stations, sewer collection and stormwater infrastructure.
- A proposed Sunnyslope County Water District arrangement for temporary water conveyance and distribution O&M from December 2026 to June 2027, estimated at up to $400,000, was not acted on after remaining agenda items were carried to October 21.
Full report
Hollister City Council has rescinded the fiscal-emergency resolution underpinning cuts to its water division, responding to public warnings that the loss of experienced utility personnel could undermine oversight of drinking-water, wastewater and stormwater assets.
At its October 19 meeting, the council unanimously added and approved two emergency measures after a lengthy closed session: returning employees placed on administrative leave and rescinding the fiscal-emergency resolution. The council also directed human resources to conduct the required meet-and-confer process with unions, work with department heads to identify priorities and review workflows to maintain community services.
The decision followed testimony from a utility supervisor whose position had been eliminated. The supervisor said five water operators had also been laid off, leaving three water operators and one lead operator without supervisory support. The supervisor told the council that the city’s wells, lift stations, sewer collection system and stormwater infrastructure require informed oversight, particularly with an El Niño winter approaching.
City staff had already acknowledged in the meeting packet that the Water Fund was insolvent and that resulting cash-flow problems had compelled staffing reductions. The city said it retained three Water Operator IIs and a Senior Water Operator, while maintaining that it needed outside assistance to ensure safe drinking water, emergency maintenance response and continuity of service.
That assistance was due to be sought from Sunnyslope County Water District. The proposed mayoral letter requested temporary operational and maintenance support for Hollister’s water conveyance and distribution system from December 2026 through June 30, 2027. Staff put a conservative $400,000 estimate on a potential O&M contract and said Sunnyslope was willing to offer 60-day invoicing. The city also expected to provide SEIU with 45 days’ notice of a proposed transfer of bargaining-unit work under Assembly Bill 339, unless the union waived that period.
However, the council did not act on the Sunnyslope letter. The mayor said all remaining agenda items would be carried to a special meeting on October 21.
The financial backdrop remains severe. In its August 31 financial report, the city said the Water Enterprise Fund’s amended budget depended on an $8 million increase in projected charges for service, while its original recurring operating expenses exceeded original revenue projections by $1.9 million. The report said the fund’s structural position remained unresolved.
This summary was generated by AI based on the source document and may contain errors.
Source: City Council Meeting, City of Hollister