THE RHODE ISLAND CONVENTION CENTER AUTHORITY
425th MEETING OF THE
BOARD OF COMMISSIONERS
October 26, 2017
A meeting of the Board of Commissioners of the Rhode Island Convention Center Authority (hereinafter referred to as "Authority", the "CCA" or the "Board") was held on October 26, 2017, pursuant to notice, at the Rhode Island Convention Center, One Sabin Street, Providence, Rhode Island.
Board members present were Bernard Buonanno, Paul MacDonald, Stan Israel, Catherine Parente, Jeff Hirsh, George Nee, John Hooper, Patrick Butler, Peri Ann Aptaker, Tony Mendez and Dale Venturini.
Mr. Hooper was unable to attend.
Also present were James P. McCarvill, Executive Director, Rhode Island Convention Center Authority; Larry Lepore, Amanda Wilmouth, Arlene Oliva and Kristin Murphy, the Convention Center; Cheryl Cohen, the Dunkin’ Donuts Center; Martha Sheridan, PWCVB; Dan Schwartz and Michael Gravison, the VETS; Lynn Singleton, PFM; Michael Crawley, Citrin Cooperman; Stephen Maceroni, PFM; Gene Bernardo, PSH; Mark Liff, JP Morgan; Burnell Goldman, Omni Providence; Bruce Leach, Legal Counsel and Eileen Smith, Recording Secretary;
Mr. Buonanno called the meeting to order at the meeting at 9:04 AM and asked for a motion to approve the minutes of the September Board Meeting. Upon a motion duly made by Mr. Butler and seconded by Mr. Nee it was unanimously
VOTED: to approve the minutes of the September Board meeting.
Mr. Buonanno stated that the next meeting would be held on Thursday, November 30th at 9:00 AM.
Mr. Buonanno asked Mr. Schwartz to present the financial report for the VETS. Mr. Schwartz stated that for the month of September the VETS was ($13,636) to budget and ($16,196) to the prior year. Year to date the Vets is ($136,139) to budget and ($3,521) to last year. Mr. Schwartz responded to a question that was asked saying that; Listed as an asset, the Vets has one cash account with Coastway Bank that consists of advanced ticket sales and any balance at months end that has not been disbursed either to a show or a transfer to RICCA. All F&B, parking, merchandise, rental and miscellaneous payments are deposited into this account. The monthly funding provided by RICCA is also deposited into this account. Per to contract with RICCA, all funds received by the Vets, with the exception of advance sales, must be transferred back to RICCA. These transfers are typically done bi-weekly and the amounts are included in “Advance by RICCA”
Mr. Schwartz reported that the electrician from the complex had been over to the Vets to look at our HVAC and thinks that the work can be done with in-house labor.
Mr. Buonanno recognized Mr. Lepore who reported that for the month of September the Convention Center’s net income was $325,565 to budget and $548,194 to the prior year. Year to date net income is $761,509 to budget and $1,167,326 to the prior year.
Mr. Lepore reported that the Dunk net income for the month of September was $31,221 to budget and ($58,678) to the prior year. Year to date net income is $93,748 to budget and ($142,902) to last year.
Ms. Sheridan reported that the City and the Convention Center had a great month. She distributed the Smith Travel Report (attached). Ms. Sheridan stated that the hotels have had a record Summer and the Fall is looking very strong. Ms. Sheridan reported that the Biltmore has been sold and that she looks forward to working with the new owners. Mr. Nee asked if this will have any impact on our room blocks and Mr. Israel asked if the current employees would be staying. Ms. Sheridan noted that she thinks things will remain the same because the Biltmore does not have a great deal of meeting space. Ms. Sheridan also thinks that the staff will remain.
Discussion ensued regarding the refunding bond deal. The 2009 will be refunded to 2017 Series A taxable bonds. Mr. Bernardo stated that we are projecting $5,000,000 in savings. Mr. Bernardo explained the history. Mr. Nee asked when we would see the savings. Mr. Maceroni answered that 2018 through 2027 we will see savings. Its will be spread out more in the first year. Mr. Bernardo went through the resolution. Ms. Parente asked about creating a construction fund. Mr. Bernardo said we would use it for closing costs. Mr. MacDonald asked where to State stands. Mr. Bernardo reported that the State has been involved in the process. Mr. Hirsh said that this means that we are saving the State $5,000,000. Upon a motion duly made by Ms. Parente and seconded by Mr. Israel it was unanimously
VOTED: to approve the resolution as read by Mr. Bernardo
Further discussion ensued regarding the selection of the sales team for the Garrahy Courthouse Garage Project. Mr. Maceroni said that we received proposals and compared interest rates. Mr. Nee asked if lower is good. Mr. Maceroni said that lower is good but not always. Mr. Maceroni stated that JP Morgan and two Co Managers, Morgan Stanley and Roosevelt Cross were selected. Mr. Leach stated that because this is a new project there are steps that need to be taken and things that have to be accomplished. Mr. Nee asked when we think construction can start. Mr. McCarvill answered March or April with the garage opening in September 2019. Ms. Aptaker asked what this issue is. Mr. Maceroni answered $40,000,000.
Upon a motion duly made by Mr. MacDonald and seconded by Mr. Israel it was unanimously
VOTED: to approve moving forward with the issuance of bonds (summary attached) to construct a parking facility at the Garrahy Courhouse as instructed by the State.
Mr. McCarvill stated that there is now a great deal of work to be done and it is mostly in Bruce’s court. Mr. MacDonald took the opportunity to thank everyone for their support of this project.
Mr. McCarvill noted that the City Properties Committee will convene a meeting regarding variances. He reported that Bruce has been working very hard to get us the best outcome. Mr. Butler asked who is negotiating with the City regarding the meters. Mr. McCarvill said that u until now we have ignored them but Rick Hall will investigate. Mr. MacDonald cautioned that the City will calculate that the meters are used 24/7. Mr. Butler agreed saying that is the formula that will be used.
Mr. Hirsh reported that the Executive Compensation Committee had met to review Mr. McCarvill’s compensation. Mr. Hirsh stated that the Committee reviewed material relative to the requirements of the Executive Director’s position, the daily responsibility that he has accepted, as well as the fact that he has not had a raise since 2012. Mr. Hirsh stated that the Committee recommends that Mr. McCarvill’s salary be raised to $184,000 per year retroactive to July 1, 2017 and that his salary be revisited and reviewed annually. Upon a motion duly made by Mr. Israel and seconded by Mr. Nee it was unanimously
VOTED: to increase the Executive Director’s salary to $184,000 per year retroactive to July 1, 2017 and revisited and reviewed annually.
Mr. MacDonald stated that $184,000 is a bargain and apologized for not being at the Compensation Committee meeting.
Mr. Buonanno asked if there was any other business. Hearing none he asked for a motion to adjourn. Upon a motion duly made by Mr. Israel and seconded by Mr. Butler it was unanimously
VOTED: to adjourn at 10:35 AM