Transcript Republican Policy Group

Republican Policy Group
Convention Center Authority
April 30th 2015
Meeting Agenda
Approval and Discussion of last meeting’s
minutes
 Discussion Topics

– Impact Studies
– Employee Usage
– Marketing
– Collective Bargaining Agreements
Report
 Next Meeting
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Impact Studies

Early Marketing Plan
– Achieving full occupancy by the year 2000 will
generate $150mm of new spending in the state
annually.
 Owned a hotel, but not Dunkin Donuts Center/VMA

Market Feasibility Study--April 12, 1989
– Conducted by Laventhol & Horwath, CPA
 Company also audited the RICCA’s financials for the
annual “Independent Auditor’s Report” Aug 14, 1989
Impact Study

Estimated Annual Attendance
– 300,000 to 500,000 people

Actual Annual Attendance
– Average from 2006-2014: 294,000
– Attendance level; no growth

Estimated Occupancy of Study
– Occupancy percentage: 44.4%
 The Study estimated usage and attendance with a
rate “6% above the national occupancy rate”
Recommended Staffing Schedule

1989 Study
Administrative: 9
Event/Marketing:7
Engineer/Electrical: 7
Ops & Events: 12
Maintenance: 10
Security: 6
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Total: 51
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2015 Actual
Administrative: 7
Sales: 5
Engineer/Electrical:10
Ops & Events: 32
Maintenance: 6
Security: 17
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Total: 77
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Auditor General Report

Review of Compliance with Purchases
– Conducted May 1993

Marketing Contract
– Original marketing contract: $3,300 monthly
not to exceed $39,000
– After award, Board approved marketing plan
at a cost not to exceed $750,000 over 16 mo.
– Actually paid $857,000 within 15 months
Additional Findings

Consulting Engineer
– Identify, locate, remove, and dispose of hazardous
materials
– Bids ranged from $20,000 to $35,000
 Bid at $23,100 was selected
 No formal contract was executed

Auditor General Findings
– Consulting engineer conducted “considerable water
and soil analyses and consulting services not
identified in the initial RFP.”
– From July 1990 though February 1992, the Authority
paid the firm approximately $1.2 million
Additional Findings

Removal of Contaminated Soil
– From 1988 report, 600 tons of contaminated soil were located
on the site.
– Contracted July 1990 for lump sum $39,900

Change Orders
– 8 Change orders increased the price of removal to $953,988
– Removed 11,227 tons of material
 20 times the original estimate of contaminated soil
– May to November 1991, 4 more change orders
 Total tonnage removed 63,617 tons at a cost of $3,914,101
 “More than 100 times time the original estimate”

Auditor General Finding
– “The scope of services changed materially should have been rebid pursuant to the Purchases Act.”
Additional Findings

Missing Documentation of Bid Process
– “Missing documentation included public
notices and dates published, bid proposals,
dates and content of any bidders conferences,
bid bonds and notification of awards.”
– “Some of the unavailable documents may
never have existed. ”
Employees
RICCA Strategic Plan 2015
RICCA SWOT Analysis 2015
Marketing

Providence/Warwick Convention & Visitors Bureau
– High value customer marketing
– Trade show & Convention audience

Con. Center & Dunkin Donuts Center
– Internal Marketing Team & SMG
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VMA
– Internal Marketing Team & PFM

Promoters
– Assist the building staff to sell concerts
Marketing

Marketing Committee
– Meets 10 times per year for marketing strategy
sessions
– Try to determine the effectiveness of advertising
 “Most forms of ads are not trackable”
– Cross promotion between events

Concert venue headliners are more
important than the advertising methods
Other Items

Collective Bargaining Agreements

Report

Next Meeting May 11th 2015