Sat
Feb 4 2012
12:12 pm

Now that some documentation has been released (see WBIR archive) we know more about Gloria Ray's four year contract and subsequent extension.

Here's the timeline:

• Feb. 16, 2007: Gloria Ray four year contract approved by executive committee
• Mar. 13, 2007: Gloria Ray four year contract approved by full board
• Jul. 1, 2007: Gloria Ray four year contract term begins, signed by Ray on 7/25, David Duncan on 8/8
• Oct. 7, 2008: Executive Committee authorizes David Duncan to negotiate Gloria Ray contract extension after Ray says she will retire when her current contract is up in 2011
• Oct. 13, 2008: Gloria Ray and David Duncan sign contract extension through 2014
• Dec. 9, 2008: Gloria Ray contract extension approved by executive committee
• Dec. 9, 2008: No mention of Gloria Ray contract extension at full board meeting

At yesterday's board meeting, KTSC Attorney Edward Phillips argued that the extension was not valid because the full executive committee was not involved in the negotiations as required by KTSC bylaws and state law. We are not clear if there was any discussion of the fact that the full board has apparently never voted on the extension.

Gloria Ray's lawyers could, and probably will, argue that the executive committee delegated authority to David Duncan and authorized him to negotiate the extension to her agreement. They also approved the terms. Further study of KTSC bylaws and state law would be needed to determine if this is permissible and/or whether Duncan was authorized to execute the amendment to her agreement prior to executive committee and/or full board approval. The fact that it was an amendment to an existing agreement might also muddy the waters.

KTSC's lawyer also argued that Gloria Ray could be terminated for cause according to provisions of her contract which state (among other things) "any conduct of Ray that is seriously prejudicial to the best interest of KTSC, that violates KTSC's mission, that brings KTSC into disrepute" as grounds for termination with cause. Further, her contract provides for termination without cause, which requires three months severance pay and benefits.

(The contract is very clear that three months pay for termination without cause includes incentive bonuses, but it is not clear if they are to be prorated. This could be another dispute to be sorted out by the lawyers depending on the final disposition of her retirement/termination.)

Ultimately, the KTSC board decided to accept Ray's retirement effective in two weeks, subject to negotiation of a severance agreement. If the terms are not agreeable, the KTSC board will vote on termination.

The tone of yesterday's board meeting suggested that the board was ready to terminate Ray one way or another for any valid reason they could find. In fact there was a motion on the table to terminate her for cause before a deal was reached to accept her retirement.

In my opinion, all of this is starting to stink.

There is no evidence whatsoever that Gloria Ray has done anything improper or that was "seriously prejudicial to the best interest of KTSC, that violates KTSC's mission, [or] that brings KTSC into disrepute." The complaint appears to be that she negotiated a lucrative compensation and severance package. What's she supposed to say? Don't pay me that much? Any problems with the terms of her contract land squarely in the laps of the executive committee and the board.

As far as any shock and awe at the amount of her compensation, it is spelled out in her contract and reported every year in KTSC's IRS 990 form, where anyone who was concerned about it could easily have looked.

As for whether she has been effective, no one has yet come forward with any documentation regarding the detailed calculation of payments received by KTSC and the incremental lodging taxes and economic benefits on which Gloria Ray's incentive bonuses are based. Presumably, the City and County performed such calculations as part of their due diligence regarding the amounts they paid under their contracts. The KTSC audits do not address it and appear to accept everything on face value.

How is any of that Gloria Ray's fault? There is no hard evidence that Gloria Ray has not been effective, nor much credible evidence that she has, other than the fact that the City and County have made the agreed to payments.

If the complaint is that her contract is too generous and somewhat vague regarding the definition of "projected economic benefit" and allows for bonuses related to increased lodging taxes whether KTSC had anything to do with it or not, once again this falls in the laps of the executive committee and board for not being better negotiators, and the City and the County for entering into agreements to pay KTSC according to those terms.

At this point, the only legitimate beef regarding her contract appears to be the validity of her contract extension, under which she has been working and compensated for about six months.

To the best of my knowledge (and I could be wrong), Gloria Ray is not an attorney and never has been. While she should be familiar with the KTSC bylaws and state law governing operation of a non-profit, she says she accepted at face value the assurances of David Duncan (who was effectively her boss) that he was authorized to extend her contract and that all payments were authorized and proper.

The actions of the executive committee are a little fuzzy on this point, but the minutes seem to support Ray and Duncan's interpretation depending on the exact language of KTSC bylaws and state law. There is no evidence of any sort of improper collusion or attempt to hide anything. All of it is on the record.

As for board members claiming they weren't aware of the terms of Ray's extension, many of them are were (they all resigned yesterday) on the executive committee so they knew. The others could have a legitimate beef that it was never brought up in the full board meeting, at least according to the minutes provided.

The bottom line is that the only evidence of a problem with Gloria Ray's contract and compensation involves the negotiation and approval of the extension. It could have been an oversight by the board or it could have been a procedural error, but there is no credible evidence that it was intentionally misleading or improper.

And, it could easily be cured by the board voting to correct any such procedural errors or oversight.

As for whether she has been effective, that's a matter of opinion. In my opinion, KTSC and Gloria Ray have not been effective in promoting the Convention Center, but that's just one part of what they do and it was a bad idea in the first place given the convention market.

As for whether her contract is vague and too broadly defined with regard to incentives, well, congratulations to Ray for her negotiating skills. It might be unseemly, but there's nothing improper or illegal about it.

The only other legitimate issue is her failure to disclose her Blue Cross/Blue Shield board membership on KTSC's conflict of interest statement. Her contract clearly allows her to serve on other boards, but KTSC's bylaws are pretty specific about the disclosure and resolution of potential conflicts, and this appears to be one.

Regardless, based on her impressive resume, her past accomplishments and her performance at KTSC which has thus far been acceptable to the board, and whether you think she makes too much money or not, she should be allowed the opportunity to retire with her dignity and reputation intact. Which was all she wanted in 2008 when the KTSC executive committee convinced her to stay with lucrative retention bonuses.

128
like
metulj's picture

Ding. Ding. Ding.

Ding. Ding. Ding.

rikki's picture

What the hell are you

What the hell are you smoking? Are you insane? What have you done with the real R. Neal?

Also, one thing that has been claimed during this shit-flinging session is that KTSC only books Convention Center events 14 months or more in advance. Inside 14 months, SMG handles bookings. If that is true, what portion of the blame for CC operating losses can be fairly placed at KTSC's feet?

I keep thinking about SMG executives watching this mess and laughing quite nervously. A lot of people want to kick KTSC to the curb, but if they are replaced with a private, for-profit firm, the level of transparency will drop to somewhere between opaque and SuperPAC. Others seem to think KTSC feeds from the same trough as Ijams, KAT Senior Riders, Beck Center, etc, which is not true. The only place where money has been freed up for other purposes is on KTSC's balance sheet.

I don't see where anything constructive has been accomplished. Plenty of destructive politics, though.

Hildegard's picture

"...any conduct of Ray that

"...any conduct of Ray that is seriously prejudicial to the best interest of KTSC, that violates KTSC's mission, that brings KTSC into disrepute" as grounds for termination with cause."

This part is hilarious. Channel Stephen Colbert for a minute. "When you sign a contract and the terms of that contract end up making the KTSC look bad, you have brought the KTSC into disrepute by agreeing to the terms they offered you. Your conduct in accepting money KTSC authorized, that later leads to serious questions about how your agreement with KTSC violates KTSC's mission, is all the cause they need to terminate you. Any public relations major will tell you: That's just basic contract law!"

Hayduke's picture

This requires buying into the

This requires buying into the fiction that the executive committee was an independent body that came up with the contract on its own. Ray dictated the terms and had her board approve them. Blaming the board for this shouldn't absolve Ray of the responsibility.

But yeah, legally that's how it played out and the board is in no position to throw stones. They're playing Ray's game and she's going to skim another million dollars out of the kitty before it's over regardless.

AC's picture

One more time and then I've

One more time and then I've got devote time to other things.
Plus, there's too much that still isn't clear here, and I don't feel that a forum such as this is the best place to address the issue in much more detail.

Randy - you may well be correct about the legal technicalities surrounding Gloria's contract and compensation. And there seems to be quite a bit of responsibility to be shared on what has been allowed to happen here and why.

But still, as my mama has always stressed, just because you can doesn't mean you should.

I would also argue that Gloria, as Executive Director, had and has an ethical and moral obligation to the mission of KTSC. And there are manyt legitimate questions about how the organization operated, how decisions were made, how priorities were set, the percentage of $$$ going to salaries vs to the mission of the organization, conflicts of interest, sweetheart deals, etc etc. that still need to be more fully assessed and addressed. This is not all about Gloria, but it's also about the board, how they have exercised their fiduciary responsibilities, and the basic structure of the organization and how it is funded and why.

As an example...and I still haven't seen the exact documentation of this so I'm uncertain of the details...I've only heard from some journalists...But it appears that KTSC was receiving income and perhaps even basing bonuses on events that they not only had absolutely nothing to do with bringing to town, but in fact refused to offer any support for whatsoever. If this is true - and I've also heard this regarding events that I had nothing do with myself - then I have a problem with this (whether technically allowed by contract or not). Especially when, on the few occasions we've approached them to support a worthwhile activity, we have always been told that they "don't have any money" to support it.

KTSC may well have accomplished some great, worthy things in our community. But there are many who feel that they've also neglected supporting many other events and opportunities. And ideas and appeals for engagement have never been received with open arms. Instead, it would seem that KTSC has been allowed to operate as something akin to a private fiefdom.

Hopefully, the events of the past couple of weeks will lead to a positive change. Personally, I think this will be very good for our community. We'll see.

Have a great weekend!

kag's picture

Randy, I agree with you on

Randy, I agree with you on what I think is your primary point: Gloria Ray is being made the fall guy for failures, oversights and poor performance by those ultimately responsible for this organization - its Board, and more specifically, its Exec Committee.

However, I find it pretty hard to believe that Ms. Ray was unaware of what appears to have been a totally disengaged Board and Exec Committee when she negotiated these outrageous deals for herself over and over. Did she have a legal right to take advantage of a Board that was asleep at the wheel, exploiting their lack of oversight to her own financial benefit? Probably so. But that doesn't make her behavior ethical, nor was she serving the best interests of the organization or the community in exploiting the Board's willful ignorance. Also, I do not see Ms. Ray's failure to disclose her BCBS Board membership as a minor problem. I see it as a very major one.

Basically, we had a very expensive,quasi- governmental agency that was functionally disconnected from the real local government systems that provide some basic checks and balances and accountability, and that's how this was allowed to get to this point.

On a related note, we have the exact same type of situation with the way Knox County contracts with for profit vendor University Pathologists to provide Medical Examiner services to the tune of $970,000 annually. The only difference is that the services being provided are far more sensitive and important, and the money paying the bill comes out of general coubty tax revenue rather than a special set aside tax. Just try finding the "Office of the Knox County Medical Examiner" on the official Knox Co org chart. Try figuring out who in Knox Co. Government oversees the ME's office. Try finding any quarterly reports by the ME's office. Try finding any meaningful or specific documentation of how the nearly $1 million annually we pay University Pathologists is broken out and spent. Heck, try pretending you are a bereaved Knox County citizen who needs to get in touch with the Office of the ME, and try even finding a phone number or email address thru which to make such a contact. Good luck with that.

If anyone (media, blogger, public official or concerned citizen) would like a copy of a comprehensive brief I've written making the case that the ME's office is operating as a rogue shadow department of county government with no functional oversight or accountability, email me at kagnotify@gmail.com and I will be pleased to email you the document, along with a copy of the county's current contract with University Pathologists. It's a situation that will look very familiar to anyone who has followed the unfolding KTSC story in recent weeks.

-Katie Allison Granju
Knoxville, TN

rikki's picture

There is no functional

There is no functional disconnect between KTSC and the city or county. There are formal contracts between them that define their relationships quite specifically. Each government has appointees on the KTSC board. The primary check/balance on KTSC is whether they are doing what their contract requires. Obviously Tim Burchett believes their performance is satisfactory, since he signed a 5-year extension in June.

The BCBST thing is a matter of concern, but there is far too little evidence known to judge how serious it is. Gloria Ray has been on that board since before KTSC existed, so there are nearly a decade's worth of relevant disclosure forms, and we've seen one. KTSC has policies and protocols for handling contracts where there are conflicts of interest. I expected to hear a review of how that contract was bid out and decided at the board meeting yesterday, but it was barely mentioned.

It's prejudicial to call Ray's contract outrageous. No one has bothered to make that case. Van Elkins said it is difficult if not impossible to find good comparables for Ray and for KTSC. In Nashville, three separate agencies handle tourism, convention center bookings, and a cultural attraction (I suspect he was comparing the WBHOF with the country music HOF). The three heads of those agencies make more than $700k. KTSC's board clearly felt there was value in retaining GR through renewal of their city and county contracts and through the transition to a new president. Whether David Duncan negotiated the right value is debatable, but there is a big difference between debating what an accomplished professional is worth and just squawking at a big number in shock.

I think Ray's $25k cap-exempt bonus is over the line, and bumping it to $75k is clearly excessive. Yesterday was the first I heard about either of those things or about there being a cap on her bonus. Both KNS and WBIR have intimated that they knew the details of her bonus structure, but neither mentioned a cap. I wonder whether they chose not to publish that information or heard it first at the board meeting like I did. The bump to $75k was rejected yesterday, though I imagine GR's lawyer will contest that.

Regarding the ME's office, I see major differences between both the agencies in question and the services they provide. Actually, I think that example illustrates just the danger I'm talking about with my "opaque to SuperPAC" remark. If a private, for-profit firm got the city's tourism contract, does anyone believe they'd disclose their executive salaries or open up their boards to city appointees?

R. Neal's picture

It should also be noted that

The BCBST thing is a matter of concern, but there is far too little evidence known to judge how serious it is.

It should also be noted that it says right there on KTSC's webpage in Gloria Ray's bio that she is or was on the board of BCBS.

There are no dates given, but I find it hard to believe nobody knew that. It's even harder to believe she would willfully try to hide it. Given how this has played out so far, it's possible that once all the facts are known we will learn that the potential conflict was dealt with according to protocol. It's also possible that the relationship was exempted by the board according to some set of guidelines and such, and that's why it doesn't appear on her most recent disclosure form. Who knows?

Anyway, I'm not disputing that her compensation was likely excessive, or that she may have taken advantage of the situation with the board and the EC, etc. But from a strictly legal standpoint (with the disclaimer that I am not a lawyer), there's nothing improper here so far that I can see. As I said, unseemly yes, but improper no.

And I'm not disputing AC's concerns about her work promoting the community, arts, events, etc. I'm sure he has far more intimate knowledge of all that than most. (In fact, maybe he should be on the board.) I'm just saying that if you look at her vague and overly broad contract there's no evidence of a failure to perform. Again, that's on the board. If she took advantage of it that's on her, but it's also her right for good or ill. Many lessons learned, I suppose, going forward. If there is any going forward for KTSC.

Anyway, I've never much liked the idea of a KTSC (or the Chamber in its current incarnation), and don't know all that much about Gloria Ray except that I never thought much of her. But in this case, given the fact presented, she is being shabbily treated and should be given the opportunity to make a graceful exit, which is what everyone, including her, seems to want. Unless it comes with lawsuits and more huge taxpayer expense, and unless there is more that we are not being told.

As the Mrs. said, this is another example of the business as usual political climate in Knoxville. Whatever is going on has been going on for a long time. Maybe this is a case of the new City and County administrations trying to change that and move things in a different direction, which would be great. A less heavy handed and more artful approach might, however, be less divisive and get more people on board for much needed reforms.

metulj's picture

Rogero made a meal of this.

Rogero made a meal of this. Bad policy to appear to be following Burchett's lead. Always. The best course of action would have been letting the city contract expire and then put out an RFP after Burchett got finished playing what ever political game one of his buddies advised him to play.

R. Neal's picture

Bad policy to appear to be

Bad policy to appear to be following Burchett's lead.

I thought exactly the same thing.

ETA: She should be out in front of crap like this. I have suspected all along the she got a look at the books and didn't like what she saw. Maybe that was the case and Burchett got wind of it and stole her thunder.

metulj's picture

Yep. If anybody thinks

Yep. If anybody thinks Burchett is a reformer, they need to get their heads checked. Someone saw a chance to take out highly compensated WOMAN and down went Frazier.

kag's picture

Rikki: I totally agree that

Rikki:

I totally agree that we need to see some record on how this contract has been bid out & awarded over time.

- Katie

Rachel's picture

Also, I do not see Ms. Ray's

Also, I do not see Ms. Ray's failure to disclose her BCBS Board membership as a minor problem. I see it as a very major one.

There are a lot of murky things in this whole deal I don't have totally sorted out, but two things are clear to me: 1) the board, especially the executive committee, didn't perform their duties, and 2) Ray absolutely had a duty to report the BCBS board membership. She didn't.

Tess's picture

No, she didn't get a raw deal, she gave one.

I cannot wait until this city/county grows up and quits the behind the door contracts with the insiders be they good ole girls or good ole boys.

This whole thing stinks.

R. Neal's picture

Presumably, the City and

Presumably, the City and County performed such calculations as part of their due diligence regarding the amounts they paid under their contracts.

Apparently not.

Knoxville News Sentinel:

The city of Knoxville has no records of Knoxville Tourism and Sports Corp. performance reviews before it has given money to the marketing group under the current contract, which has been about $1 million a year since 2008.

[..]

The group, using its own formulas presented to the city, claimed to have brought more than $134 million in economic impact in 2011-12. A spokesman from the city said that evaluations were handled via discussion.

The city was supposed to have a formula, quarterly meetings and an annual review of over/under payments. None of that appears to have happened, or at least the city can't produce any records. Sounds like Haslam can go in the blame barrel now, too. Rogero appears to be addressing the problems.

metulj's picture

That's my read. Was there an

That's my read. Was there an tempt to address this under Haslam that went nowhere/quashed?

j.f.m.'s picture

Clarification

R. Neal said:

The city was supposed to have a formula, quarterly meetings and an annual review of over/under payments. None of that appears to have happened, or at least the city can't produce any records.

This isn't true. I know this is a complicated story, and I understand people trying to explore every angle. But I spent several hours this week collecting information on how these reviews were done. This is part of what I sent to the reporter on Thursday, and I'm happy to post it here:

>>Deputy to the Mayor Larry Martin, Director of Finance Jim York, and Bill Lyons (then senior director of policy and communications) met quarterly with representatives of KTSC. Also represented at the meetings were employees of SMG, which manages the Knoxville Convention Center under contract with the city. KTSC would provide detailed reports of their marketing and recruitment efforts, and there would be detailed discussions of their performance, along with requests from the city and/or SMG for attention to particular events or areas of concentration. KTSC has been responsive to those requests. City officials would also request and receive feedback from the city’s director of public assembly facilities, who oversees Chilhowee Park and the Civic Coliseum complex.

At the end of each fiscal year, there has been an annual performance review, involving the same people or organizations as the quarterly meetings. KTSC’s performance on all of the duties stipulated in the contract is reviewed and discussed, and their responsiveness to requests made over the course of the year is taken into consideration.

The evaluations were conducted via discussion during these meetings. KTSC was found to have satisfactorily performed the requirements of the contract. As with most contracts, the documentation of the city’s satisfaction with the performance is the record of the payment made to the contractor.<<

EDIT: And in terms of annual reconciliation of over/under payments, that's the final step in the annual payment process. I have copies of the last three years' reconciliation statements on my desk. No one has asked to see them.

(And by the way, in case I'm accused of insufficient disclosure, this post is from Jesse Mayshark, Communications Manager, City of Knoxville. 865-215-3710, 865-226-9409, jmayshark@cityofknoxville.org.)

R. Neal's picture

Thanks for the clarification.

Thanks for the clarification. Apparently the News Sentinel reporting is incorrect?

Have you been able to determine if the following (from the city's contract, 1.3.b) occurred and was documented by the city?

At the end of the second fiscal quarter ofeach fiscal year, the Deputy to the Mayor may, in his sole and absolute discretion, evaluate KTSC under each of the criteria set forth in (b)(i) and (b )(ii), to determine whether the qualitative performance measurements have been met, and he will assign a point value, up to the maximum values set forth above. A ratio whose denominator is 20 and whose numerator equals the number of points earned by KTSC for the six month period will be multiplied by $50,000.00 (1/2 ofthe Withheld Amount) to determine KTSC's incentive fee for the first half ofthe fiscal year. The parties will meet periodically, as the City determines to be reasonably necessary, during the course of each fiscal year to provide performance updates and to discuss performance Issues.

Within ninety (90) days of the conclusion of each fiscal year, the Deputy to the Mayor will again evaluate KTSC to detennine whether the qualitative performance measurements have been met for the full fiscal year, and he will assign a point value,up to the maximum values set forth above, to KTSC's perfonnance under each of the criteria set forth in (b)(i) and (b)(ii). A ratio whose denominator is 20 and whose numerator equals the number of points earned by KTSC for the fiscal year will be multiplied by the reconciled Fee Cap to determine KTSC's total incentive fee for the fiscal year. The City agrees to pay the remaining portion, if any, ofthe incentive fee to KTSC withiri thirty (30) days of the year-end evaluation. However, both parties agree that should KTSC have been overpaid throughout the course of the fiscal year, based upon the reconciled amount of the Fee Cap and the final evaluation, KTSC will reimburse the City the full amount of the overpayment.

Bbeanster's picture

I don't post on the KNS web

I don't post on the KNS web site, where it has been decreed that Gloria Ray falsely claims to have hired Pat Summitt. They're having lots of fun branding her a liar.

And they're wrong.

Pat Summitt was here, but she was a barely-paid graduate assistant. The previous coach left, and she inherited the program, with a 'salary' that just just peanuts. Pat got an offer from Kentucky and she was ready to move on, until Gloria Ray persuaded her to stay. I've heard them both tell the story.

Here's an excerpt from a Metro Pulse story I wrote about her in 1996, when her empire consisted of the Sports Corp.................................................................................................

"It's quite natural that she should have more than an average fan's interest in the games. She was there in the beginning, as UT's first women's athletic director, hired away in 1977 from Mississippi College for Women where she coached tennis and basketball. She held the job until 1984, and is commonly credited with laying the foundation for what is now one of the premier women's athletics programs in the country. She has an undergraduate degree from East Tennessee State University, a master's from UT.

It was Ray who long ago named the Lady Volunteers, and it was Ray who persuaded Pat Head, a 22-year-old part-time coach and graduate assistant who'd just about decided to move on to a place where they took women's athletics seriously that Tennessee was fixing to do just that.

"I told Pat, 'You need to stay around and see if things aren't different,'" Ray says. "That's not to say that the people who came before me couldn't have done it, but the university gave me the structure to grow."

Ray counts Pat Head Summitt, who sits on the Sports Corporation's board of directors, as "a dear friend," but she says the relationship was not without its sharp edges. Peculiar things can happen when two fierce competitors take road trips together.

Like the time Ray and Summitt rode together to Sneedville for a banquet in a high school gymnasium and got into an argument over what they'd probably have for dinner. Summitt said ham, Ray said roast beef. The discussion grew so heated that they drew up a chart predicting the whole meal: entree, vegetable, drink and dessert. Their hosts were there to greet them when they arrived, and Ray laughs when she recalls what happened.

"We both jumped out of the car and yelled 'What's for dinner?' They must have thought we hadn't eaten in days."

j.f.m.'s picture

Yes

R.Neal said:

Have you been able to determine if the following (from the city's contract, 1.3.b) occurred and was documented by the city?

Yes, those things all occurred.

On documentation, see the prior post. As with most contracts, the record of services received is the payment of the invoices.

rikki's picture

So did the city pay the

So did the city pay the maximum incentive? Did they give KTSC a 20 out of 20 score? Can you list the incentive payments each year and those scores, if they are available?

bizgrrl's picture

Yeah. When I have a contract

Yeah. When I have a contract and pay invoices or receive payment for invoices, there is something to show that the buyer is getting what they contracted.

j.f.m.'s picture

Right

KTSC has provided quarterly and annual reports documenting in detail their work under the city contract.

Basically, every level of report, review, and documentation required by the contract has taken place regularly.

But if anyone has other questions, please call me. I should be in my office most of the day, 215-3710.

kag's picture

JFM- First, thank you very

JFM-

First, thank you very much for being willing to engage and answer questions, and I do have two quick follow up questions for you.

1 - Are those quarterly and annual reports provided by KTSC to local government available to the public in some way? How can we access them?

2 - Also, are there any minutes of the meetings you reference in your earlier comment? The meetings in which local officials met with KTSC reps to go over performance and then decide whether the contract terms were being met? If so, how can we access them?

Thanks - Katie

Thanks -

Katie

R. Neal's picture

As with most contracts, the

As with most contracts, the record of services received is the payment of the invoices.

Huh?

metulj's picture

That's a head scratcher.

That's a head scratcher. Acutally, it is invoice coupled with a confirming document such as proof of delivery. For example, when we sell bags to a customer on terms, we invoice them and secure proof of delivery to them. Usually, this comes in the form of a signed UPS shipment or a signed by consignee bill of lading indicating the shipment was all in order.

cafkia's picture

One thing that has been

One thing that has been nagging me of late is the fact of the "volunteer board". Given the numbers being thrown around, $134million in economic impact for the city/county -$400k in CEO compensation - several tens of employees, why is it a volunteer board? Is that normal procedure? Should there not at least be a per meeting honorarium? What is the CEO of BCBST paid? If Ray is getting $90k a year to sit on their board, how does she justify a non-compensated board for her own organization? Would it not be better for the city/county for the board to have "some skin in the game"?

Somebody explain to an uneducated poor kid from East Knoxville how come it is working this way.

Bbeanster's picture

Oh, shit, Dupree Yahoos all

Oh, shit, Dupree

Yahoos all over the internet are trashing the board members and saying they should return their pay.
You're deploring the fact that they served for free.
Whatever the problems were up there in the executive committee, how the hell are we going to get people to serve on non-profit boards in the future, if they're going to be subject to this kind of unfiltered abuse?

fischbobber's picture

What's going on?

I'm no fan of this economic impact figure that measured the effectiveness of the KTSC. Nor am I a fan of Ms. Rays salary being tied to hotel/motel revenue.

That being said, if there was a flaw in the design of the operation and compensation system of the KTSC wouldn't it make more sense to just put all the cards on the table, say "We didn't anticipate these variables", and start over from scratch ?

This is starting to seem like a lynch mob and crucifixion over something that, frankly, has been available for public consumption for quite some time. I've never been a huge fan of the way KTSC operates, but this reaction is way overboard.

What did y'all think was gonna happen?

Average Guy's picture

According to the people that

According to the people that run it, the convention center was "not built to make money".
(link...)

If there still is to be a KTSC after all this, set up incentives based on CC occupancy rate, not the unquantifiable hotel/motel occupancy rate the incentives are based on now. Same for events that the KTSC specifically brings in. Count heads, not beds.

rikki's picture

now what?

KTSC is being taken to task for acting as a pass-through for county funds that ended up in the hands of multiple nonprofits, including KMA, Dogwood Arts, Kuumba, the zoo and Rossini.

County Commission approved paying KTSC $2.47M in their 2008 budget, based on projected tax collections. Actual hotel/motel collections came in 7% shy. Rather than making KTSC rebate the $185k, Ragsdale told them to donate it to local tourism-related charities. They did.

Now they are "in trouble" for this horrible action. So who pays back the money if this alleged irregularity turns out to be anything more than scandal mongering? The zoo or Ragsdale?

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Lost Medicaid Funding

To date, the failure to expand Medicaid/TennCare has cost the State of Tennessee ? in lost federal funding.

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