Republican Policy Group

1. Republican Policy Group Convention Center Authority April 30th 2015

2. Meeting Agenda • Approval and Discussion of last meeting’s minutes • Discussion Topics • Impact Studies • Employee Usage • Marketing • Collective Bargaining Agreements • Report • Next Meeting

3. 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

4. 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”

5. 1989 Study Administrative: 9 Event/Marketing:7 Engineer/Electrical: 7 Ops & Events: 12 Maintenance: 10 Security: 6 Total: 51 2015 Actual Administrative: 7 Sales: 5 Engineer/Electrical:10 Ops & Events: 32 Maintenance: 6 Security: 17 Total: 77 Recommended Staffing Schedule

6. 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

7. 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

8. 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 re-bid pursuant to the Purchases Act.”

9. 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. ”

10. Employees

13. RICCA Strategic Plan 2015

14. RICCA SWOT Analysis 2015

15. Marketing • Providence/Warwick Convention & Visitors Bureau • High value customer marketing • Trade show & Convention audience • Con. Center & Dunkin Donuts Center • Internal Marketing Team & SMG • VMA • Internal Marketing Team & PFM • Promoters • Assist the building staff to sell concerts

16. 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

17. Other Items • Collective Bargaining Agreements • Report • Next Meeting May 11th 2015