STATE OF MICHIGAN
MICHIGAN GAMING CONTROL BOARD
PUBLIC MEETING
Cadillac Place
3062 W. Grand Blvd., Suite L-700
Detroit, Michigan
TUESDAY, November 19, 2002
6:00 P.M.
MINUTES
On Tuesday, November 19, 2002, the Michigan Gaming Control Board held a public meeting at the Board office in the Cadillac Place, 3062 W. Grand Blvd, Suite L-700, Detroit, Michigan.
Present: In attendance were the following Board members:
Judge Roman S. Gribbs, Chairman
Rich Davis
Judge Geraldine Bledsoe Ford
Also attending were:
Nelson Westrin
Patty James
Eric Eggan
D/F/Lt. Darwin Scott
Business: The meeting was called to order at 6:05 p.m., by Board Chairman Roman Gribbs. Chairman Gribbs noted for the record that Mr. Larry Garberding was not present due to prior commitments. Chairman Gribbs further advised that copies of tonight’s agenda were available for the public at the receptionist’s desk.
Chairman Gribbs stated that the Board members have received copies of the minutes from the last Board meeting and there being no comments, changes or corrections to the minutes, he requested a motion to approve the minutes from the October 15, 2002 meeting.
It was moved and seconded that the minutes of the October 15, 2002 meeting be approved. Motion carried.
Nelson Westrin next presented the Executive Director’s report. With regards to staffing, Mr. Westrin reported that 2 key positions have been filled. Board Accountant, Bob Simon, was selected for promotion to the position of Manager of the Budget and Procurement Section. In addition, Theresa Willis, Board Auditor was selected for promotion to Audit Manager. Mr. Westrin further advised that the hiring process has begun to fill their vacated positions. Mr. Westrin also advised that John Leen has been hired as a regulation officer in the Indian Gaming Section and Jason Wiard has been hired as a new auditor in the Board’s Audit Section within the Enforcement Division. Also, Tami Pullen has resigned as a regulation officer in the Investigation Section of the Licensing Division. Mr. Westrin further advised the Board that the MGCB staff now total 91 and that the Board was in the process of filling its remaining 16 approved vacant positions.
Mr. Westrin proceeded to give an update regarding the Board’s budget. Mr. Westrin reported for fiscal year 2002, ending September 30, 2002, the Board incurred expenditures in the amount of $14,116,473, leaving the unexpended balance of $2,772,227 in appropriated funding for FY 2002. Mr. Westrin further advised the Board that recent legislative adjustments to the appropriations for fiscal year ending 2002 and fiscal year ending September 30, 2003 required that any unreserved balance remaining in the State Services Fee Fund, which was created by the MGCB, was to be transferred to the state’s general fund. Mr. Westrin continued to report that the legislature has placed provisions within the Fiscal Year 2003 appropriations legislation, which would ensure that the Board will be fully funded by the State Services Fee Funds that are transferred to the general fund before they are used for any other purpose.
Mr. Westrin next advised the Board that October was the first month in calendar year 2002 in which the aggregate casino revenues for all three Detroit casinos did not exceed the revenues generated in the same month of 2001. The aggregate revenue and taxes for all three casinos in October were down just under one percent at .92 percent, compared to the same month last year. Mr. Westrin further stated that assuming there are no further revenue increases for the remainder of the year, the total aggregate revenues for calendar year 2002 should reflect a 10-12 percent increase and exceed $1.13 billion, which compares to $1.007 billion generated in calendar year 2001.
Mr. Westrin then proceeded to update the Board on the status of the issuance of temporary supplier licenses, full supplier licenses, vendor registrations, and supplier licensing exemptions, as well as the status of the issuance of temporary and permanent occupational licenses for the three casinos.
Mr. Westrin also reported that the Licensing Division has completed its investigations on 5 occupational license renewal requests, which he has approved pursuant to Board Resolution #2002-02, and 117 pending Level 2 occupational license applications which the Board would be considering during the business portion of the meeting.
Mr. Westrin next introduced Assistant Attorney General, Jack Cahill, who gave a brief summary of the recent court decision regarding the Papas-Gatzaros lawsuit brought against the Board.
Upon conclusion of Mr. Cahill’s summary and Mr. Westrin’s comments thanking the Board and his staff, Judge Gribbs proceeded to the first item on the business agenda.
The Board proceeded to consider the Licensing Division’s staff recommendations regarding 117 pending Level 2 occupational license applications. Staff recommended issuance of 112 license applications and denial of 5 license applications for reasons specified in the related background investigative reports and Exhibit 1.
Chairman Gribbs advised the Board that Ben McMakin, Deputy Director of Licensing, was present to answer any questions the Board members might have regarding the Licensing Division’s staff recommendations regarding the pending occupational license applications.
The Board having no questions, it was moved by Judge Stacey and seconded by Mr. Davis that the Board enter an order accepting and adopting the Licensing Division’s staff recommendations regarding the 117 Level 2 occupational license applications as summarized in Exhibit 1, and also directing that the Executive Director issue occupational licenses or notice of denial to the named applicants in accordance with the staff’s written recommendations. The following roll call vote was then taken on the motion:
Chairman Gribbs: Aye
Mr. Davis: Aye
Judge Ford: Aye
Judge Stacey: Aye
Motion carried.
The next order of business was to consider the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the pending gaming-related supplier license application of Bally Gaming, Inc., dba Bally Gaming and Systems, Board File No. SL000003-02-002.
Judge Gribbs once again acknowledged Mr. McMakin’s presence and further noted that Mr. Robert Stocker, counsel for Bally Gaming, Inc. and Mark Lerner, Senior Vice President, General Counsel and Secretary of Bally Gaming, Inc. were present at the meeting.
After a few brief comments by Mr. Lerner and the Board having no questions for Mr. McMakin, Mr. Stocker or Mr. Lerner regarding Bally Gaming, Inc.’s application, it was moved by Judge Ford and seconded by Mr. Davis that the Board enter an order finding and concluding that Bally Gaming, Inc., dba Bally Gaming and Systems, and its qualifiers are eligible and suitable for their licensure under the licensing standards and requirements of the Act, and Board Rules, and, accordingly, granting the gaming-related supplier license application of Bally, Gaming, Inc., dba Bally Gaming and Systems, based upon the background investigation report and recommendation of the Executive Director and the Board’s Licensing Division staff. The following roll call vote was taken on the motion:
Judge Gribbs: Aye
Mr. Davis: Aye
Judge Ford: Aye
Judge Stacey: Aye
Motion carried.
The Board next considered the Executive Director’s Report and Licensing Division’s staff recommendation regarding the pending gaming-related supplier license of Konami Gaming, Inc., Board File No. SL001249-02-001.
Judge Gribbs again noted for the record that Deputy Director McMakin was present to answer any questions the Board members may have. Judge Gribbs further noted for the record that Mr. Robert Stocker of Fraser, Trebilcock, Davis & Dunlap, counsel for Konami Gaming, Inc. was present at the meeting.
After brief comments from Mr. Stocker and there being no questions from the Board for Mr. McMakin, Mr. Davis moved and Judge Ford seconded that the Board enter an order finding and concluding that Konomi Gaming, Inc., and its qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Michigan Gaming Control and Revenue Act, as amended, and Administrative Rules of the Board, and accordingly granting the gaming-related supplier license application of Konami Gaming, Inc., based upon the background investigation report and recommendation of the Executive Director and the Board’s Licensing Division staff. The following roll call vote was taken on the motion:
Judge Gribbs: Aye
Mr. Davis: Aye
Judge Ford: Aye
Judge Stacey: Aye
Motion carried.
The Board next considered the Executive Director’s Report and Licensing Division’s staff recommendation regarding the pending nongaming-related supplier license application of MI-Mich, Inc., doing business as Chef Source, Inc., Board File No. SL001276-02-001.
Judge Gribbs noted for the record that there were no representatives for MI-Mich, Inc. present at the meeting. Judge Gribbs further noted that there were no questions from Board members for Deputy Director, Ben McMakin.
Judge Stacey moved and Judge Ford seconded that the Board enter an order finding and concluding that MI-Mich, Inc., dba Chef Source Inc., and its qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Michigan Gaming Control and Revenue Act, as amended, and Administrative Rules of the Board, and accordingly granting the nongaming-related supplier license application of MI-Mich, Inc., dba Chef Source, Inc., based upon the background investigation report and recommendation of the Executive Director and the Board’s Licensing Division staff. The following roll call vote was taken on the motion:
Judge Gribbs: Aye
Mr. Davis: Aye
Judge Ford: Aye
Judge Stacey: Aye
Motion carried.
The next order of business to consider was the Proposal for Decision after Remand In the Matter of the Denial of Ambrose Cosey’s Application for an Occupational License, Case No. OLH-2001-13.
Judge Gribbs noted for the record that neither Mr. Cosey nor his counsel were present at the meeting.
After a brief summary of the case file by Chairman Gribbs, and there being no questions from the Board members, Judge Ford moved and Judge Stacey seconded that the Board enter a final decision and order In the Matter of Ambrose Cosey’s Application for an Occupational License, Case No. OLH-2001-13, accepting, adopting, and incorporating the Hearing Officer’s Proposal for Decision after remand in this matter in its entirety and denying the occupational license for which Ambrose Cosey made application. The following roll call vote was taken:
Judge Gribbs: Aye
Mr. Davis: Aye
Judge Ford: Aye
Judge Stacey: Aye
Motion carried.
Next, it was moved by Mr. Davis, and seconded by Judge Ford, that the Board go into closed session immediately following the conclusion of the public meeting for the purpose of receiving legal advice and counsel from the Board’s attorney regarding pending Board litigation, and receiving confidential notification from the Executive Director regarding the names of individuals placed on the Board’s Disassociated Persons List since the Board’s last public meeting as required by the Act. The following roll call vote was taken:
Judge Gribbs: Aye
Mr. Davis: Aye
Judge Ford: Aye
Judge Stacey: Aye
Motion carried.
There being no other questions or comments from the public, the meeting was adjourned by Judge Gribbs, at 6:55 p.m.
______
Patricia S. James
Board Secretary
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