Vancouver 2010 CFO John McLaughlin says the committee is trying to reduce petrol consumption. (VANOC)VANOC Revenue Locked In
The slowing economy doesn't worry VANOC's chief financial officer because most revenue is already committed or locked-in.
"As we go out to the marketplace the main thing for us is we want to make sure there's a suitable supply of goods and services and at a good price," said John McLaughlin.
"We've got no reason to think the change in the economy is going to make that any worse for us."
With all indoor venues nearing completion by this autumn, VANOC is in transition from construction to operations and is amid a procurement flurry. Contracts are up for bids for flowers and flags to hockey equipment services.
McLaughlin said VANOC is adapting to higher fuel prices. Sponsor Petro-Canada's $61.5 million deal signed in 2005 includes an undisclosed amount of gasoline and diesel by the Canadian dollar, not by liter.
\"We're managing that really as any other business would which is to try and keep our consumption down and manage it as effectively as possible," McLaughlin said.
On June 20, VANOC reported some $15 million in revenue and $47million of deferred operating expenses for the three months ending April 30. There was a foreign exchange loss of $4.4 million, compared to $14.2 million for three months ended Jan. 31, 2008. The Canadian dollar's value has fluctuated slightly above and slightly below the U.S. dollar.
The workforce increased to 683 full-timers. A balanced $1.6 billion operations budget remains forecast, but an update will be published in early 2009. Life Unusual in 2010
The central theme of VANOC's Game Plan 2008 community meetings is to expect life to be "business as unusual" during the Games.
VANOC began the series of information presentations June 17 in Whistler, offering an overview of Games venue operations, transportation, security and public safety.
Attendees were told to expect longer operating hours, peak occupancy, heavy volunteer presence, increased use of public transit and chartered buses, decreased vehicle access and parking and security differences.
"Life will be busy but functional -- getting to work, getting groceries," said the script.
It said Whistler Mountain, host of alpine skiing, would be 95 percent open, while Blackcomb, site of the sliding centre, would be 100 percent open.
Whistler residents will not have a change in neighborhood zoning laws, which means nightly rentals will be allowed only in approved areas. There will be opportunities for residents to join the VANOC homestay program for athlete families and volunteers, which will be announced after the Beijing Games. Tourism agencies will manage spectator accommodation.
A Games-time accommodation workshop is June 25. The Paralympic Torch Relay will come on Aug. 29 on its way to Beijing.
Furlong Denies Cross-Border Deal with Washington
VANOC CEO John Furlong denies reports that he’s been contacted by B.C. insiders trying to broker involvement with Washington state involving the Olympics.
"We haven't had any meetings about anything to do with Washington state, plain and simple," Furlong says.
"With an office in the heart of downtown Vancouver, a hand in British Columbia's provincial capital Victoria, and a foot into the 2010 Organizing Committee (VANOC) our organization is the only public affairs, Olympic affairs and sport marketing firm in the province,” boasts the president of British Colombia consultancy Progressive Group in a 2006 letter seeking a contract with Washington state.
Furlong denies meeting with Progressive president Mark Jiles, or chairman Patrick Kinsella to talk about other issues.
Jiles also is said to have told Washington in 2007 that VANOC was keen to bring the 2010 Olympic torch relay to the state. The Washington border is about 50 miles south of Vancouver.
"We have no plans to run any legs of the relay in another country," Furlong said.
Jileas and Kinsella are both well-connected to the ruling Liberal party in B.C. and Premier Gordon Campbell.
Official complaints about Jiles and Kinsella acting as unregistered lobbyists for Washington state have been filed by Canadian legislators.
2010 Audit Delay
The latest report by the "Real fans buy real", according to the tagline of a new Vancouver consumer campaign. (VANOC)British Columbia government spending watchdog is delayed by another month, due to B.C. Auditor General John Doyle suffering an undisclosed illness. Spokesman Michael Macdonell says that means the report would be released in late July instead of late June.
Previous auditor general Arn van Iersel pegged the "minimum taxpayer cost" of the 2010 Games and projects needed to make it happen at $2.5 billion in a September 2006 report. Doyle's follow-up was originally expected in autumn 2007.
Counterfeit 2010
VANOC is not flattered by the imitation souvenirs found by a Toronto law firm.
Investigators from Kestenberg Siegal Lipkus seized unauthorized Vancouver 2010 hats, T-shirts and stuffed bear dolls from 16 stores in the Lower Mainland in mid-June. They were among thousands of items displayed at an anti-counterfeiting training conference in Vancouver from June 17 to 19.
None of the items were knock-offs of real VANOC merchandise that contain the Ilanaaq inukshuk logo or five Olympic rings. But the items did use VANOC trademarks Vancouver 2010 and Vancouver Whistler 2010.
KSL partner Lorne Lipkus, who said China is the biggest source of fake goods, expects a wave of forgeries later this year.
"They wouldn't want to be making a lot of Vancouver Olympic product when they're still trying to pump out counterfeit Beijing Olympic product," Lipkus says.
Lipkus said CanadaCypress Mountain hosts Olympic snowboarding. (Getty Images)needs stronger brand protection laws, enforcement and education to stop counterfeiting. It's primarily an intellectual property issue, but Lipkus said fake goods can also pose health dangers. Bombardier joins 2010
The Quebec company known as the pioneer of the snowmobile will make the torches and cauldrons for Vancouver 2010.
Bombardier, now a global giant in manufacturing commuter trains and airplanes, will provide cash and goods worth more than $15 million to sponsor the Games plus some $3 million to be the first second-tier sponsor of the Olympic torch relay.
When the deal was announced on June 17, VANOC said Bombardier aerospace and transportation experts had been working secretly for six months on the torch design, which was approved on June 4 by the International Olympic Committee. The design will be unveiled in early 2009. Bombardier chairman Laurent Beaudoin said the torches and cauldrons will be made in Canada.
"We have a lot of good designers, engineers in every aspect of engineering," Beaudoin said. "We have all the talent necessary."
VANOC may follow Beijing 2008 organizers and sell smaller replicas of the torch to the public. The 35,000 km relay from Olympia, Greece to Vancouver will include 12,000 runners through 1,000 communities over 100 days. WestVANOC
Six West Vancouver families have joined forces to raise $1 million to buy venue city status from VANOC. The Allard, Brodie, McLaughlin, O'Neil, Southcott and Warke families agreed to donate cash or volunteer time to fundraise.
West Vancouver, which is officially a district municipality, is already hosting snowboarding and freestyle skiing during the 2010 Winter Olympics at Cypress Mountain. The June 16-announced deal allows West Vancouver to use the Vancouver 2010 logo and get a stop on the Olympic torch relay.
"It was the view of this council and the community in general that property taxes shouldn't go to VANOC," said Mayor Pam Goldsmith-Jones, who is seeking re-election in November.
Among the donors are Andrea Southcott, president of TBWA\Vancouver, the advertising agency behind Vancouver's successful 2010 bid, and Grouse Mountain resort president Stuart McLaughlin.
"We live in West Vancouver and our business looks over it." McLaughlin said.
Grouse was supposed to host the sliding center in the original domestic bid, but could host an NBC studio and be open around the clock for skiing, snowboarding and snowshoeing during the Games.
Economy Buffets 2010 Sponsors
General Motors is delaying closure of its Oshawa, Ont., truck plant. The plant is now expected to close in 2009.
The Canadian Auto Workers union blockaded GM's Canadian headquarters for 10 days after the layoff of 2,600 workers was announced in early June.
Airline sponsor Air Canada says it will lay off 2,000 workers beginning this fall.
With reporting from Bob Mackin in Vancouver.
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