The Breakdown  
                      Bad River Gaming Commission Meeting (April 22)

    The Bad River Gaming Commission Meeting scheduled for April 22, 2010 was slated for 6 items on
    the Agenda; 3 in General Session & 3 in Executive Session. 1 Agenda Item (BIA Transportation
    Priority List) added to General Session (#4). 1 Agenda Item (Executive Discussion) added to
    Executive Session (#4).

    Call To Order:  Roll call taken. All seven Board Members present.

    Moment Of Silence

    Approval of Agenda as amended.

    #1. Monthly Report: Brian Mayotte -  Gaming Manager presented monthly report for the
    Casino, Lodge & Enterprises. Gaming Manager reported March was a month of progress and
    accomplishments. In regard to finances, we produced a total revenue of $1.5 million, net revenue
    of $534,378 for the Casino Complex. Manager stated it was a very good month resulting in the
    highest gross revenue in the past five years. Manager gave a brief summary of the Casino Events
    and Marketing Strategies. Some of the activities included; Luck Of The Irish, Leaping Leprechauns
    (which included a variety of cash drawings, food specials, tournaments), also had entertainment;
    Otis & The Alligators on March 13th (150 patrons participated in the event), Grand Prize Winner
    ($1,000) Rose Wilmer. Gaming Manager was happy to report much Community participation and
    lots of excitement in regard to Casino Events. March 17th Food Special was Corned Beef Dinner
    at $5.05 per plate. Another food special was the Man vs. Steak Dinner on Thursdays. Other
    activities mentioned were the Bonus Poker Tournament (March 3rd), also Luck Of The Irish
    Drawing.

    Currently there are 221 Employees, 153 Tribal Members, 20 other Members, 56 New Hires, 102
    terminations. Currently we are down 48 Employees from last year as a result of downsizing and
    minimizing labor costs. Average Employee Hourly Wage is currently $9.09.

    March Gross Revenue was $1,511,375.49 compared to last years $1,324,000.45 (+14.12%)
    Gross Revenue for month of March. Jackpot payouts were $5,161,379.50. On an annual rate,
    average win per machine generates $78.20 daily, and the daily average win, per machine for the
    month of March was $85.57.

    Year to date, Gross Revenue from October thru March is $7,831,629.77 compared to
    $7,296,596.62 last year (+7.33%).

    Net Revenue, expenses included, we have a total of $2,319,771.84 compared to last year’s total of
    $2,326,238.18 (-$6,000).

    Items to mention are; Slots is up 14.02%, Tables is up 1.5%, Lodge is up 25.71%, Gift Shop is up
    1.75%, Food Service is up 23.78%, Beverage is up 11.69% over last year in March. So we really
    had a good month business wise.

    Head Count for patrons for the month of March was 28,051 compared last year’s head count,
    which was 28,024.

    Question raised in regard to the expense increase from last year. Casino Manager pointed out
    several contributing factors in relation to the expense increase, such as; rise in labor cost &
    insurance, more aggressive advertising strategies, 4 old bills which were resolved in the month of
    March, equipment & vehicle service repairs, a $5,000 increase in lease bucket payments, and
    there were also audit fees which were paid. Some Casino roof repairs were also mentioned.

    Casino Manager stated we are refiguring our pricing & spending in several ways to curb costs in
    regard to Entertainment and Promotions. We are also starting to show progress in relation to
    spoilage and waste control in the Restaurant. The phone cost is down $263 in comparison to last
    year.    

    Question raised as to how we can have a $1.5 million Revenue if we paid out $5.1 million in
    Jackpots. Manager stated the numbers are due to people putting the money back in the machines.
    Higher patron volume and increased business, as we had a drop count of $6.7 million.

    Question was asked about Direct Mailing Promo and when it was last updated. Direct Mailing
    Promo was explained again. Promo is updated monthly and based on player’s daily spent.
    $252,146 was generated from Direct Mailing Promo. Manager stated we are strategizing and will
    be scaling back our Direct Mailing due to the higher patron volume in regard to the busier summer
    months.

    Casino Manager stated the Shuttle services were reviewed back in February and a decision to
    suspend services commenced on March 15th. Two Employees were affected by the decision and
    offered jobs through our Transit System, those offers were declined.  

    Also mentioned was another Boxing Entertainment Event to be showcased sometime in third week
    of May. The new Billboard and design for the IGA Store was also discussed.

    Discussion on the Elderly Day Promotion. Elderly Advisory Committee asked to review plan of
    action and give opinion in regard to new Promo Guidelines.

    Discussion on the Grade School Children’s Mural. Board Member stated the Mural was done by
    our Children and given to the Casino for public display. Currently Children’s Mural is on display at
    Head Start. Casino Manager took responsibility as he thought it would’ve been a great idea for
    Mural to be displayed at Head Start. Possibilities on Community locations to display the Mural
    discussed. Management will look into it.

    Short discussion on Casino Anniversary and IGA Store’s 9th Anniversary.

    Better Marketing strategies were discussed in regard to advertisement. Manager professed the
    need for a Professional Marketing Director. Chairman of the Board Stated those needs are being
    addressed and reiterated the importance of a Marketing Director to help curb the projected
    business drop in relation to the Hwy. 2 road construction taking place next year.

    Discussion on the Lodge. The month of March was a good month. The Lodge is up 37% from this
    time last year. Starting preparation for the busy season. New rate packages are being reviewed.
    Seasonal packages are being analyzed. Also reviewing a better incentive package for overnight
    buses to help bring in more business. Currently we only have a day package. Items to mention; the
    pool floor resurfacing contract, room renovations are in the process, drain upgrade not completed,
    but being addressed. Actually looking to schedule drain upgrade to coincide with pool resurfacing
    to minimize downtime (6-7 days). Drain upgrade is a federal requirement. Question raised as to if
    there would be any fines levied because the drain upgrade isn’t up to federal standards and if so
    is there a grace period. Management stated that we actually have until June 2010 to get up to
    code. However, some places down state have in fact been shut down but the health inspectors are
    more strict in that area. It was understood by Management, as long as the Tribe is making a valiant
    effort, we should be in good standing in those regards.

    Chairman of the Board requested an update on a corrective plan of action in relation to the Casino’
    s Internal Audit findings. Management is confident a corrective plan of action will be presented at
    next Gaming Commission Meeting for Board review and observation.

    Board Member questioned why Mechanical Maintenance Report wasn't included. Was informed by
    Management they will be submitting one.

    Motion to accept monthly report passed.

    #2. Pool Floor Resurfacing: Mike Wiggins Sr, Mark Principato -  2 Bid proposals presented
    for Board review and determination (Heart Of The North, AccuFlux). 2 Bids are near identical.
    Board reviewed the 2 proposals and did some comparisons. Board decided on AccuFlux. Bid
    Proposal consists of installing a multi-layered vinyl coating over pool deck. Sanding epoxy to
    original concrete surface. Identifying low spots and possible cracks on base of pool floor and
    remedy with topping pour to desired level. Installation of a finished surface with a gritted
    broadcast/protective coating. Discussion on removal of dust particles caused by removal of old
    finish. Also a brief discussion on warranty lengths and liability. Resolution passed to approve
    AccuFlux to resurface pool.

    #3. Waiver Process: Tammy Schwiesow -   Presentation of Draft to Commission on formalized
    process in regard to the handling of the employment process for convicted felons who wish to seek
    a waiver of their convictions. Currently the waiver process costs the Tribe an estimated $65 per
    waiver. Looking to formulate a strategy for reimbursement. Aside from the waiver fee there are
    seven criteria guidelines in order to facilitate a successful waiver. NIGC does not have to approve
    the waiver.

    Discussion on hypothetical scenarios involving sex offenders and minors who may be working in
    Casino Restaurant. Also discussion on criteria for waiver applications. Tribal Members or any and
    all applicants. Consensus vote taken by Board to only allow Bad River Tribal Members to apply for
    felony waiver process.    

    On Board recommendation the waiver fee is to be worked on and added to the actual criteria
    guidelines. In the meantime, any request for felony waivers will be handled as they have in the
    past. The Board will be reviewing the proposed Draft, as work is still needed on the addendums of
    Draft Proposal. Board will reconvene on this issue next month.

    #4. BIA Transportation Priority Improvement List: Ben Connors -   Due to short time
    restraints looking to approve Priority List in regard to road improvement needs to be submitted to
    the BIA tomorrow. The list for 2009-2010 will be locked into place after approval. 2011-2012 will
    still be flexible as addendums can be made. Resolution to approve Priority List passed.


    Gaming Commission Meeting went into Executive Session shortly after 8 PM.  
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