Lakeland solicits contractor proposals for new management of RP Funding Center

LAKELAND —  Lakeland officials are curious to see if they can save taxpayers money by hiring a management company to operate RP Funding Center.

The city has put out a Request For Proposals seeking an independent contractor to run the municipal-owned entertainment complex. The bid specifies those applying should have experience in arena, theater and convention facility management. Sealed bids are being accepted through 2 p.m. June 10.

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The city's notice indicates that any company considering running the facility should be prepared to "furnish all management, supervisor, labor and any or all other services." It also specifies a "successful proposer" will be held responsible for maintenance of the nearly 50-year-old building, its furniture, fixtures and equipment.

City Manager Shawn Sherrouse said the commissioners elected to seek a management company to run the day-to-day operations over a consulting management firm.

"What’s anticipated is the city would still own capital asset, and we would have financial responsibilities with that," Sherrouse said. "The operations and management - that would be contracted out to the successful bidder."

The city manager said he was contacted by a management consulting firm that proffered a bid to review the complex's current operations and offer its advice on what could be accomplished.

"The commissioners were not interested in management consults," he said.

RP Funding Center Director Tony Camarillo said he's had time to come to terms with the city's consideration of hiring an outside contractor since he first presented the center's financial situation to city commissioners in February. It's hard, Camarillo told The Ledger, on the tail-end of the pandemic.

"I feel like we're still coming out of COVID, I would like the chance to come out of this completely," he said. "I don't know that a management company is the answer. I don't think it's the answer."

In 2020 from mid-March to July, the center closed its doors at the first cases of COVID popped up across Polk County. This resulted in approximately $2 million in lost revenue, Camarillo previously told The Ledger, due to event cancellations and about $575,000 of it due to postponed events. The complex's employees were also put on a partial furlough through at least August 2020.

In fiscal year 2021, the city's subsidy of RP Funding Center was about $4.8 million. This year, Camarillo told city officials he implemented several efficiencies and cost-saving measures to bring the subsidy down to about $3 million.

Some staff positions were vacant post COVID and have been left unfilled, according to Camarillo. Remaining employees have had their job titles and positions shifted to be more sales oriented. Camarillo estimated these staffing changes total more than $650,000 in savings for the city. The center has also increased its event rates by 5%, more than the usual annual increase of 3%.

Camarillo presented a financial plan to city commission at its February strategic planning meeting that aims to achieve 7% growth in fiscal year 2023, with 5% growth per year. If he can accomplish this by identifying operational savings and focusing on sales revenue, it would decrease the city's subsidy of the RP Funding Center to less than $2 million by 2027.

"It is a goal, a lofty goal I think," he said.

Mayor Bill Mutz said he wanted to a financial plan that would bring the city's subsidy of the RP Funding Center down to around $1 million to $1.5 million annually. The mayor instructed Camarillo to revise it to be as "drastic as necessary."

Camarillo said he continues to work at refining the center's annual budget. The 2022 season has been "great," Camarillo said but he's continuing to see slightly smaller event attendance numbers coming out of COVID.

"Everything's a bit smaller, we're not hitting our full capacity numbers," he said. "But it's been a very encouraging year. We see a light at the end of the tunnel."

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Camarillo said he wishes Lakeland taxpayers could see the number of people coming into Lakeland from out of town to attend various dance competitions, recitals and other events held at the center. These individuals and their families stay in local hotels, enjoy dining out at Lakeland's restaurants and go shopping downtown.

"We're driving that revenue into the community, that's the balance," he said. "You really have to take into account the economic impact we have."

Sara-Megan Walsh can be reached at swalsh@theledger.com or 863-802-7545. Follow on Twitter @SaraWalshFl. 

This article originally appeared on The Ledger: Lakeland exploring independent management for RP Funding Center