After GoLocal Report of No-Bid $84,000 Contract to Fung, RIPTA Board Moves to Dissolve Agreement

Thursday, February 16, 2023

GoLocalProv News Team

In January, GoLocal unveiled through an Access to Public Records Act request that failed GOP candidate for Congress Allan Fung’s law firm had received a no-bid lobbying contract to represent RIPTA at the Rhode Island General Assembly.

RIPTA CEO Scott Avedisian, a long-time personal and political friend of Fung, approved the $84,000 contract that requires full payment even if RIPTA cancels the agreement. Over the past 20 years, the former Republican mayors, Fung of Cranston and Avedisian of Warwick, respectively, were the top players in the RI GOP.

At a meeting on Wednesday, the RIPTA board voted to direct management to negotiate with Fung’s firm, Pannone Lopes Devereaux & O’Gara LLC, "a mutual agreement to dissolve the contract and/or select another PLDO staff member to manage the contract." 

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RIPTA staff will provide the Board of Directors with an update at the next board meeting, said RIPTA spokesperson Cristy Raposo Perry.

 

Crowley Pushed for Contract Cancellation

RIPTA board member Patrick Crowley, who is the Secretary-Treasurer of the Rhode Island AFL-CIO and the Government Relations Director at NEARI, pushed for the cancellation of the agreement.

Members of Fung’s firm did not respond to questions from GoLocal.

Crowley told GoLocal in an interview on Wednesday that he believes the contract should be voided and that Fung, the former mayor of Cranston, has a conflict of interest.

“Fung has a conflict. He should have disclosed his conflict. He is a named participant in the continuing contract lawsuits. The suit specifically names as defendants the General Assembly leadership and the Governor,” said Crowley.

Crowley's motion to negotiate the voiding of the contract was supported by all the RIPTA board members except Board Chairman Normand Benoit.

 

Avediain's Team First Defended the Agreement

After GoLocal first unveiled the contract with Fung, Avedisian’s team defended the no-bid contract.

On January 20, Cristy Raposo Perry of RIPTA issued a statement to GoLocal in response to questions about the contract.

“In 2014, Governor Chafee signed the Quasi-Public Corporations Accountability and Transparency Act that empowers the board of quasi-public corporations, like RIPTA, to establish a wide range of policies.  Among those are policies governing Lobbyists’ expenses.  In November of 2014, the RIPTA board established policies along these lines which have been in place for several years.  Below is the policy it established at that time related to lobbyists:

Lobbyists’ expenses.  RIPTA’s CEO, with consultation from RIPTA staff, may determine whether, and on what terms, to retain a lobbyist for the purpose of representing RIPTA before legislative and administrative bodies for the purpose of furthering RIPTA’s mission.

In this case, the longstanding policy was followed. The CEO consulted with senior staff and the Chairman of the Board and it was agreed to hire PLDO, an established, well-respected Rhode Island firm, to serve as RIPTA’s lobbyist. The firm’s role will be to assist RIPTA with legislative matters, including the implementation of the state’s Transit Master Plan and the new downtown transit center."

 

Key Contract Provisions

Further, the contract states, "The parties agree that the $84,000 fee for PLDO STRATEGIES's work is for the Session. The installment payments are a courtesy granted by PLDO STRATEGIES to RIPTA in order to spread PLDO STRATEGIES's fees for work during the Session throughout the calendar year." 

Scope of Lobbying:

(a) PLDO STRATEGIES will use its professional efforts to identify Rhode Island state legislation of interest to RIPTA and work to secure passage, defeat, or --· amendment to pending legislation of interest to RIPTA;

(b) PLDO STRATEGIES will also use its professional efforts to advocate for RIPTA's

(c) PLDO STRATEGIES will also use its professional efforts to advocate for RIPTA's interests as agreed upon between RIPTA and PLDO STRATEGIES.·

And, according to the agreement, "RIPTA will cooperate fully with PLDO STRATEGIES during this Agreement. Accordingly, RIPTA will provide PLDO STRATEGIES with relevant information, files, and documents that PLDO STRATEGIES may reasonably request in order to assist PLDO STRATEGIES to perform its duties under this Agreement. Moreover, RIPTA will make itself reasonably available to attend meetings, hearings, or other proceedings as needed."

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