NEW MEXICO GAMING CONTROL BOARD
One-Day Regular Board Meeting
August 22, 2007
MINUTES
The Board of Directors of the New Mexico Gaming Control Board (Board) conducted a one-day Regular Board meeting at Gaming Control Board Headquarters, 4900 Alameda Blvd. NE. Chairman David Norvell called the meeting to order at approximately 9:05 a.m., on Wednesday, August 22, 2007. Due notice was published in accordance with the Gaming Control Act and the New Mexico Gaming Control Board Open Meetings Resolution and Chairman David Norvell declared a quorum. Present were: Commissioner Arnold Rael, Commissioner Don Dutton, and Chairman David Norvell. Commissioner Carolyn Monroe was not present. Executive Director John Monforte, Deputy Executive Director Greg Saunders and General Counsel Frank Baca were also in attendance.
· Approval of Agenda
Chairman Norvell presented the agenda for approval. Executive Director Monforte noted that there were no changes to the agenda. Chairman Norvell entertained a motion to approve the agenda as presented: A. Rael. Second: D. Dutton. Vote: 3-0. All voted in favor of the motion: A. Rael, D. Dutton and D. Norvell.
1 Closed Executive Session. Chairman Norvell entertained a motion to go into closed executive session until 1:30 p.m., for the purpose of discussing tribal matters, licensing matters, issuance of finding of suitability on key and affiliated persons, pending administrative and enforcement matters, pending and threatened litigation and limited personnel matters as enumerated in detail on the agenda. (Closed pursuant to section 10-15-1(H), NMSA 1978): D. Dutton. Second: A. Rael. Vote: 3-0. A roll call vote was taken and all voted to go into closed executive session: A. Rael, D. Dutton and D. Norvell.
2 On Wednesday August 22, 2007 at approximately 1:32 p.m., a motion was made to go back into open session: D. Dutton. Second: A. Rael. Vote: 3-0. A roll call vote was taken and all voted in favor of the motion: A. Rael, D. Dutton and D. Norvell. Chairman Norvell certified the only matters that were discussed in closed executive session tribal matters, licensing matters, issuance of finding of suitability on key and affiliated persons, pending administrative and enforcement matters, pending and threatened litigation and limited personnel matters as enumerated in detail on the agenda.
3 Approval of Minutes. Chairman Norvell presented the Working Session Board minutes of July 18, 2007 and the One Day Regular Board Meeting minutes of July 24, 2007 for approval: Commissioner Dutton moved to approve the Board meeting minutes as stated. Second: A. Rael. Vote: 3-0. All voted in favor of the motion: A. Rael, D. Dutton and D. Norvell.
4 Board Chairman Announcements.
· Swearing in of new personnel:
· Chairman Norvell announced that the regular scheduled Board Meetings are the second Tuesday of each month. If a two day meeting is required, the Board will reconvene the next following morning. Mr. Norvell announced the following schedule for the next Board meetings:
· September 19, 2007 in Albuquerque, NM
October 17, 2007 in Hobbs, NM
Closed Session to be held at 9:00 a.m.
Open Session to be held at 11:00 a.m.
November 20, 2007 in Albuquerque, NM
December 11, 2007 in Albuquerque, NM
5 Pending Administrative and Enforcement Actions
· Approval of Settlement Agreement; Loyal Order of Moose #2447; Cause No. 07-010-EA. There was no one present from Loyal Order of Moose #2447 to address the Board on this issue. Commissioner Dutton moved to approve the settlement agreement with Loyal Order of Moose #2447 and grant a motion to dismiss the complaint without prejudice. Second: A. Rael. Vote: 3-0. All voted in favor of the motion: A. Rael, D. Dutton and D. Norvell.
· Approval of Settlement Agreement; Collin Priller; Cause No. 07-021-EA. Mr. Priller was not present to address the Board on this issue. Commissioner Rael moved to approve the settlement agreement with Collin Priller and grant a motion to dismiss the complaint without prejudice. Second: D. Dutton. Vote: 3-0. All voted in favor of the motion: A. Rael, D. Dutton and D. Norvell.
· Approval of Settlement Agreement; Andrea Hendrix; Cause No. 07-020-EA. Ms. Hendrix was not present to address the Board on this issue. Commissioner Dutton moved to approve the settlement agreement with Andrea Hendrix and grant a motion to dismiss the complaint without prejudice. Second: A. Rael. Vote: 3-0. All voted in favor of the motion: A. Rael, D. Dutton and D. Norvell.
· Approval of Settlement Agreement; American Legion #25; Cause No. 07-012-EA. There was no one present from American Legion #25 to address the Board on this issue. Commissioner Rael moved to table the settlement agreement with American Legion #25 and send it back for negotiation. Second: D. Dutton. Vote: 3-0. All voted in favor of the motion to table the settlement agreement: A. Rael, D. Dutton and D. Norvell.
· Approval of Settlement Agreement; Veterans of Foreign Wars #1547; Cause No. 06-020-EA, 07-011-EA, 07-018-EA. There was no one present from Veterans of Foreign Wars #1547 to address the Board on this issue. Commissioner Dutton moved to table the settlement agreement with Veterans of Foreign Wars #1547 until a future meeting and send it back for further negotiation. Second: A. Rael. Vote: 3-0. All voted in favor of the motion to table the settlement agreement: A. Rael, D. Dutton and D. Norvell.
· Approval of Hearing Officer’s Recommendation; SunRay Park & Casino; Cause No. 06-22-EA. Byron Campbell was present from SunRay Park but did not address the Board on this issue. Commissioner Rael moved not to fine SunRay Casino but to adopt the hearing officer’s report as stated, that SunRay should continue its proactive training of its front-line security officers to directly and effectively control access to the gaming floor by diligently carrying out their responsibilities by ensuring that only those patrons twenty-one years or older gain access to the restricted area where gaming machines are “available for play.” Second: D. Dutton: Vote: 3-0. All voted in favor of the motion: A. Rael, D. Dutton and D. Norvell.
6 Licensing
New Applications:
· American Legion Post #118, Nonprofit Operator’s License (Rio Rancho, NM). A representative for American Legion Post #118 was present but did not address the Board on this issue. Commissioner Dutton moved to grant the license to American Legion Post #118, (Rio Rancho, NM) with the following conditions: that the American Legion Post #118 must pay, in full, all licensing and investigative fees and costs arising out of the gaming license application within 30 days of receipt or a final accounting of such fees and costs from the Board or according to the terms of the payment plan approved by the Board or its designee. Second: A. Rael. Vote: 3-0. All voted in favor of the motion. A. Rael, D. Dutton and D. Norvell.
· Happ Controls, L.L.C., Distributor’s License (Elk Grove, Illinois). There was no one present from Happ Controls to address the Board on this issue. Commissioner Rael move to grant the license to Happ Controls, LLC, (Elk Grove, Illinois) with the following conditions: That the distributor must pay, in full, all licensing and investigative fees and costs arising out of the gaming license application within 30 days of receipt or a final accounting of such fees and costs from the Board or according to the terms of the payment plan approved by the Board or its designee. Second: D. Dutton. Vote: 3-0. All voted in favor of the motion. A. Rael, D. Dutton and D. Norvell.
- Renewals of Gaming Licenses for 2007:
a American Legion Post #13 (Albuquerque, NM)
b. American Legion Post #49 (Albuquerque, NM)
c. Aries Gaming (Albuquerque, NM)
d. B.P.O. Elks #969 (Roswell, NM)
e. Fraternal Order of Eagles #3526 (Logan, NM)
f. Loyal Order of Moose #2016 (Alamogordo, NM)
There was no one present to address the Board on the issue of these renewals. Commissioner Dutton moved to issue the renewals of gaming licenses to the licensees as read by Chairman Norvell. Second: A. Rael. Vote: 3-0. All voted in favor of the motion. A. Rael, D. Dutton and D. Norvell.
- Issuance of Findings of Suitability on Key and Affiliated Persons
New Applications:
There was no one present to address the Board on these applications. Commissioner Rael moved to issue findings of suitability for key and affiliated persons for the new applications without conditions as follows:
a. Jose O. Martinez – Assistant Gaming Manager – American Legion Post #99 (Albuquerque, NM)
b. Nora Curtiss – Gaming Manager – American Legion Post #118 (Rio Rancho, NM)
c. Rick Curtiss – Assistant Gaming Manager – American Legion Post #118 (Rio Rancho, NM)
d. Dawn Moore – Gaming Accountant – American Legion Post #118 (Rio Rancho, NM)
e. Earl Powers – Assistant Gaming Manager – American Legion Post #118 (Rio Rancho, NM)
f. Jo Ann Thomas – Gaming Manager – B.P.O. Elks #1244 (Clovis, NM)
g. Ralph Lucero – Assistant Gaming Manager – B.P.O. Elks #2053 (Grants, NM)
h. Charles E. Turnbill – Chief Executive Officer – HAPP Controls (Illinois)
i. Tracy Lynn Roybal – Gaming Manager – Loyal Order of Moose #1517 (Albuquerque, NM)
j. Thomas N. Auriemma – Vice President and Chief Compliance Officer – Penn National (Wyomissing, PA)
k. Margaret Zeck Britt-Netcher – Assistant Gaming Manager – Veterans of Foreign Wars #3015 (Clovis, NM)
l. William B. Hayles – General Manager – Zia Park & Black Gold Casino (Hobbs, NM)
Second: D. Dutton. Vote: 3-0. All voted in favor of the motion. A. Rael, D. Dutton and D. Norvell.
Renewal Key Persons:
There was no one present to address the Board on these applications. Commissioner Rael moved to issue findings of suitability for key and affiliated persons for renewal key persons as follows:
a. Frank M. Sapien – Gaming Accountant – American Legion Post #7 (Carlsbad, NM) with the condition that he only review paperwork.
b. Kathyrine Carmen Montoya – Assistant Gaming Manager – American Legion Post #13 (Albuquerque, NM)
c. Mary M. Jenkins – Gaming Manager – American Legion Post #19 (Conchas Dam, NM)
d. Donald Ray Holland – Assistant Gaming Manager – B.P.O. Elks #1440 (Gallup, NM)
e. Anna “Gracie” Matthews – Assistant Gaming Manager – B.P.O. Elks #1558 (Carlsbad, NM)
f. Robert L. Batley – Assistant Gaming Manager – B.P.O. Elks #1747 (Farmington, NM)
g. Toby M. Vigil – Assistant Gaming Manager – Loyal Order of Moose #1517 (Albuquerque,
NM)
h. Thomas W. Reese – Slot Director – Ruidoso Downs Racetrack (Ruidoso, NM)
i. Bradley Robert Boehm, CPA – Chief Financial Officer – SunRay Gaming of NM (Farmington, NM)
Second: D. Dutton. Vote: 3-0. All voted in favor of the motion. A. Rael, D. Dutton and D. Norvell.
7 Gaming Control Board Audit 2006 Presentation by Gary Gaylord, CPA
Mr. Gaylord presented the June 30, 2006 Audit Report for the Gaming Control Board:
Mr. Gaylord:
- There were no significant errors or irregularities found in the Gaming Control Board’s operations.
- In fiscal year 06 the revenue generated from gaming was 160 million dollars while the operation of the Gaming Control Board was less than 8 million dollars.
- The Board’s State appropriation last year in June 30, 2006 was 8,400,511.00 dollars of which only 5,992,000.00 was spent. So all of the appropriated monies were not spent. A lot of that was tied up in the update of the centralized monitoring system that didn’t get completed during the 06 year as it had been budgeted but it carried over into 07 and now has finally been completed so all the monies have been expended.
- Under the Supplementary Information there is a schedule of changes in assets and liabilities, agency fund, licensing, background fees, where the Gaming Control Board as a pass-through entity collected on behalf of the State over 350,000.
- The other cash that is collected on behalf of gaming is billed through the Gaming Control Board but is remitted directly to the State so those numbers are not reflected in the report, because the Board never has access to those monies.
- Mr. Gaylord also noted that the Board had a very good staff, they’re very dedicated, and they work hard and do their job very well. He found no indication of any wrong doings in the way of collusion, embezzlement or anything like that.
- Mr. Gaylord also noted that the main concern in the audit had to do with the way the update on the centralized monitoring system was contracted. He felt that the relationship between the Board and the contractor could have been better defined, that there could have been a little bit more oversight on the contractor. Rather than having the contractor dictate the way the things were going to progress if there could have been a better oversight on that it would have been more helpful to the organization. He stated that although he did not know what all was involved that he was speaking of what was contracted against what was received and the timing of it, that it had been dragging on a lot longer than was originally anticipated. He also noted that this was a brand new software system that had to be created from scratch, and was sure there were a lot of unanticipated problems.
Chairman Norvell thanked Mr. Gaylord for presenting the audit. Chairman Norvell entertained a motion to accept the audit of Mr. Gaylord for the Gaming Control Board for the fiscal year ending June 30, 2006: Commissioner Rael. Second: D. Dutton. Vote: 3-0. All voted in favor of the motion. A. Rael, D. Dutton and D. Norvell.
8 Public Comments. Mr. Panlener commented that the Compulsive Gaming Council meeting for August 23, 2007 has been postponed.
9 Adjournment. There being no other business to come before the Board, Chairman David Norvell entertained a motion to adjourn. A. Rael. Second: D. Dutton. Vote: 3-0. All voted in favor of the motion: A. Rael, D. Dutton, D. Norvell.
/s/ David Norvell, Esq. Date Approved: 09-19-07
Chairman