The Breakdown
The Bad River Gaming Commission Meeting (June 24, 2010)
The Bad River Gaming Commission meeting held on June 24, 2010 was slated for 19 items on the Agenda; 10
items in General Session and 9 items in Executive. There was one item added in General to coincide with item #4
(Annual Performance Report).
Meeting called to order. Roll call taken. Vice-Chair Lemieux absent. Council Member Greene absent.
Moment of silence observed.
Approval of Agenda. Approved as amended.
1) Monthly Financial Report: Report was read as follows;
- Casino Complex:
Casino revenue: $1,261,881.09
Expense: $649,027.29
Net Profit: $602,853.82
Transfers Out: $58,829.93
Retained Earnings: $524,023.89
Accounting: (revenue +$0) (monthly expense -$25,361.06)
Bar: (revenue +$21,790.29) (cost of goods -$9,900.03) (monthly expense -$14,383.80)
Food Service: (revenue +$88,636.13) (cost of goods -$62,523.30) (monthly expense -$62,941.26)
Smoke Shop: (revenue +$55,239.01) (cost of goods -$50,507.72) (monthly expense -$9,634.20)
Lodge: (revenue +$44,256.17) (cost of goods -$118.88) (monthly expense -$47,296.31)
- Total revenue: $1,461,260.31
Cost of goods: -$122,815.47
Monthly Expense: -$808,643.30
Net Profit: $529,743.94
Transfers Out: $58,829.93
Retained Earnings: $470,914.01
Grocery Store:
Revenue: +$93,441.42
Cost of Goods: -$80,068.02
Monthly Expense -$28,001.18
Loss of: -$14,787.82
Transfers In: $28,000.62
Retained Earnings: -$14,816.34
- Gas Station:
Revenue: +$319,881.42
Cost of Goods: -$319,397.90
Monthly Expense: -$22,609.68
Loss of: -$26,126.16
Question raised by Membership as to why the Gas Station suffered such a huge loss. Chairman stated this could
be answered by the Store Manager who is scheduled later on the Agenda.
Motion to accept Financial Reports. Motion carries.
2) Monthly Report: Brian Mayotte - Casino Manager stated the month of May was a strong month. Gave a
brief summary of this past month’s promotions and entertainment venues. Also touched upon venues in the near
future. Manager reported there was a headcount of 29,360 patrons for May. As of late, there has been a stronger
concentration on budgeting. In these regards, there has been a firmer stance on centralized purchasing.
Management is working on some price changes over at the Store. Also reported there will be some changes
involving office space. The new Bar will be opening the first of July (tentatively). There will be tours made
available to the public if interested. Also mentioned was the Direct Mailing Promotion, as it will be ending with the
month of June. Manager hopes this could be a seasonal item which can be renewed.
Board Member raised question about limited term employees (LTE). Wanted to know more about this. Manager
stated we currently have 32 LTE on staff which are being utilized in the food service, vault, custodial, lodge, and
security departments. These LTE are on staff for generally up to 6 months. It is a way for these temporary
employees to ‘get their foot in the door’ so to speak. If they work well they may be given the option of more
permanent employment.
Board Member concerned about employee incentives and the quality of work performed by LTE if there were no
incentives and future involved with limited employment. Board Member asked if this has always been general
practice to use LTE. Manager stated this was a cost curbing method to save money and provide cheaper labor.
Board reviewed policies and procedures, as there was a question as to accrued leave time and benefits.
There was strong Community uproar over the current hiring practices by the Human Resources. Member made
reference to the lottery system for hiring. Member requested this to be explained, as our people are still not being
hired and she feels this system is flawed, as it seems some Tribal Members are ‘blacklisted’.
Board Member stated she has been receiving calls from concerned citizens about current hiring procedures.
Motion made to view the Casino Hire List. Motion carries. Asst. HR manager directed to go get the list and provide
copies for the Board.
Casino Manager continued on with his monthly report. Reported management is currently working on new
marketing strategies involving our signs and marquee. Currently taking photos for flyers and a new marketing
endeavor. Looking into possible television commercials if they are cost effective. Currently doing market surveys
and working on gas promos. Also reported they are working on preparation for our upcoming annual Pow-Wow.
Manager mentioned the job posting for a restaurant manager and marketing director. Mr. Mayotte also stated the
Casino is looking for any historical photos from the Community which display an outdoor theme; the lake, falls,
etc. For use in the new Bar and Lounge. Stated the gas prices are down so this may increase tourist traffic and
bring more business in. Manager is looking forward to a good busy season and projects a good year ahead.
Board Member wanted to know why the HR Manager job was never posted, as this was Council directive to do so
at the March 3 meeting. Board Member would like to make a motion to reaffirm the Council’s previous motion.
Chairman argued the motion and contended his reasoning behind the non-postment. Chairman’s stance is we
have a budgeting process being dealt with and very little money to work with. Board Member reminded the
Chairman the Council held a vote and it was a directive to post the HR job. Board Member seconded the motion
on the floor and explained it is only because the Council already made this motion and it wasn‘t followed.
Chairman reiterated his explanation to the Board Member. Secretary Ford explained to the Chairman, “there is
already a motion made by Council and it stands unless the Council withdraws that motion, but it was never done,
you did that yourself.”
The Tribal Attorney advised that the Council made a directive and it was never rescinded, so it still stands.
Tribal Member stated this was a Council directive so someone was derelictive in their duty. Chairman stated that
depends if you’re looking at it from a budgetary perspective. Stated back in March there wasn’t a budget process
taking place and he wasn’t hearing the type of passionate display of advocacy he’s hearing tonight from the
Council on the posting of this position and if the Council chooses to post the job, he doesn’t have a problem with it.
Board Member stated she received a phone call about a certain person not being able to get on the Hire List,
even after several applications. Board requested Asst. HR manager to explain the process after an application is
handed in. Mr. White explained that applications get sent to the background investigator for processing. Further
stated things may have gone wrong on that side. Member stated he was in fact the person mentioned. Member
went on to say he filled out an application and handed it directly to the background investigator’s office. Further
stated he has also filled out several applications and averages about two per month, with no record of any of
them being turned in for the past two years. Member felt this was very strange, as he even handed his
applications to Mr. White personally. The Asst. HR could give no answer.
Asst. HR explained the hiring process was put together to fill the needs of the Casino. The process is very
intensive and costly. HR spoke of the random lottery system and its implementation in the hiring process, but
didn’t delve into the specifics. 86% of hired employees have been Tribal Members, 14% has been non-members.
Discussion on the lottery system protocol involving employees which have been terminated and the length of the
duration before being added to the lottery. Typically the waiting time is 4 months from termination.
Tribal Member stated he has handed in at least two applications per month for the past 2 years and finds it hard
to believe not one has made it back to the background investigator. Also stated according to his notes taken at a
previous meeting, the lottery system is only being implemented on ’some key positions’. Pointed out this statement
is totally contradictory to what is being said tonight. Member further stated the management speaks about the
needs of the Casino and questioned what’s being done about the needs of our Nation. Member requested
implementation of a temporary freeze of all non-member applicants in efforts to get our people to work.
Chairman stated the employment statistics of hiring our own people speaks for itself (86%). Tribal Member stated
even with these statistics, if even one non-member is hired before our own Membership, it is ‘a slap in the face.’
Asst. HR stated the random lottery system is indeed at the discretion of Casino management. Tribal Member
stated then the system is still flawed. Chairman instructed Mr. White for a more stringent effort to implement this
strategy instead of leaving it up to a discretionary call. Furthermore, some sort of acknowledgement to let our
Membership applicants know where they stand in the hiring process would be appropriate in these regards.
Member wanted an update about the RV park. Wanted to know if these services are free. Member also felt very
strongly against providing these services with no charge. Further stated some form of discount could be
administered if the customers spent a certain amount of money, this could possibly be tracked through the
Player’s Club Card. Management stated they are looking into this situation.
Motion to accept the Monthly Report. Motion carries.
3) Monthly Report: Joe Bates - Store Manager reported it has been a very good month for the Store. He
professed his excitement in working with the employees. Stated they have some good ideas for change and also
some really great marketing ideas. Mr. Bates reported he has worked on budgets and proposals for 2010.
Reported both the C-Store and Grocery Store budgets will be up for review next week. Also working on the price
structuring to ensure proper prices are being implemented. Manager stated he is working with the Casino Gift
Shop in structuring a centralized buying system in regard to cigarettes. He has spoken with cigarette supplier and
worked out a discount plan with the sale of large volume purchases. Management is also currently reviewing and
processing inventory taking proposals. These proposed vendors (North Star Inventory service, RGIS) will be up
for review at the next Gaming Commission Meeting. Looking at doing annual inventories and also quarterly
inventories so we can develop a better policy for inventory taking. Management is also working on the special
discount promotion change. Starting July 1, new Thursday courtesy discount will be 10 percent. Also have
increased Store hours. Mon-Sat now open from 8am-9pm, Sundays open from 8am-8pm. Also touched base on
marketing. In-house flyers were mentioned along with possible future E-mail distributions to various administrative
offices.
Chairman Wiggins brought forth a standing question from the Membership in regard to our Gas Station losses.
Management explained this was in fact, due to some pricing issues. Management said the problem could be
addressed by implementing better pricing policies, which are currently being worked on.
Tribal Member wanted a more specific answer as to the Gas Station losses. Mr. Bates explained the gas pricing is
‘volatile’ and the gas price fluctuates very rapidly from a daily basis. Stated this has to be monitored closely with
the idea of remaining competitive yet generating revenue. Further stated he gets price change reports on a daily
basis and they are reviewed daily.
Tribal Member questioned our BP contract. Member felt very strongly opposed in doing business with BP and
feels we should end our contract and divorce our business ties with BP in light of the recent environmental
devastation this company caused. Member felt as Native Americans, we should take a firm stance in not
supporting this company.
Management stated as far as the legalities of this contract, he does not have an answer at this time and he would
have to direct that to the Legal Department. Further stated we were under contract with Conoco but BP has
assumed this contract since BP has bought out Conoco.
Tribal Member called for a legal review of our contract and asked that we switch our companies as soon as
possible.
Chairman Wiggins commented concerns over the negative environmental impact created by this company and
directed management to review our contract and see our status.
Chairman asked for a status in regard to internal controls at the Store. Management stated there are some
changes being made to our internal policies. This is a work in progress, however big changes just can’t happen all
at once. Also these changes are being met with good reception with our current Store staff.
Motion to accept Monthly Report. Motion carries.
4) Indian Housing Plan, Annual Performance Report: Paul Hackerson - Reviewed proposed annual plan
for the current fiscal year. Discussed the ramifications and impact the proposed plan will have on our Nation.
Discussed some Council questions about the plan. Question raised as to the Boys & Girls Club contribution. It was
explained this was line itemed under ’Community Service’. Discussion on the totals of these contributions.
Community Services received $169,734, of that $5,880 went directly to the Boys & Girls Club. $21,500 went to our
Community House, which is used for general operations. Some concern raised as to doing the Budget as its in
already motion.The ‘Green Project” was discussed briefly. This project currently involves 18 units. Also looking
into rehabbing an additional 24 units. The estimated completion date for this project is next spring. It is projected
that the project may be completed anywhere from 60-90 days early. Mr. Hackerson stated ‘we don’t have a lot of
money, but we do have some seed money’ we could use to create additional revenue. Some of this ‘seed money’
may be used for home ownership projects. Once we have our physical needs assessment on file, we can build on
that to create more for our Community (program training, entertainment concepts, go-cart tracks, education & job
skills for our youth).
There was question raised by Council in regard to the ‘Transitional Housing’ (the modular unit purchased in
Aspen acres for the Domestic Abuse Shelter). It was stated that non-program monies were used for this
purchase. The shelter in Aspen Acres replaces the old idea of utilizing the ‘Wake House’ for this program. There
already has been a 50% down payment on the modular unit. Mr. Hackerson stated he had to restructure HASDA
funds to meet this payment.
Council raised issue with our Nation’s ‘overcrowded and under housed’ conditions. Mr. Hackerson stated that
getting reliable and accurate data from our Community is almost impossible because there is a ‘secretive aspect’
in regard to our citizens divulging information to our government census workers. Further stated in order for our
Nation to get proper funding we need full disclosure of information from our Community.
Council Member Connors raised concern as to nondisclosure of information in regard to our funding sources.
Stated that tax credit & ARRA monies were not identified. Council Member wanted to know the reasoning behind
this nondisclosure. Mr. Hackerson stated these are separate issues and it was his firm stance these funding
sources did not meet disclosure requirements. Mr. Hackerson further stated the deadline is Wednesday so he
needs approval tonight.
Chairman Wiggins also questioned Mr. Hackerson about this issue of nondisclosure. Mr. Hackerson remained firm
in his stance and reiterated previous statement of reasoning.
Council Member Connors is not comfortable with this issue. Mr. Hackerson reaffirmed his stance and advised
Council this move will not affect us.
Chairman Wiggins instructed Mr. Hackerson to present this next year in a timely manner so our Council can
review and add input properly. Mr. Hackerson projects no problems with this for the upcoming year.
Motion to approve authorization for Chairman’s signatory for IHP. Motion carries.
Motion to approve the APR with one amendment in regard to date discrepancies. Motion carries.
5) One Year Raffle Permit: Barb Bell - American Legion seeking Council approval to conduct charitable
raffles throughout the year. Motion to approve request starting on tonight’s date and ending one year from
tonight. Motion carries.
Side Note: Chairman Wiggins announced there will be a Veteran’s Honor Wall at Indian summer. They are
currently seeking historical photographs of our Nation’s Veteran’s to be honored and acknowledged on the Honor
Wall.
6) Tribal Transit Program Resolution: Hope Miller - Looking for Council resolution to allow submittal of
annual grant (5311 Grant). This is a supplemental grant which will be utilized to purchase a new handicapped van.
Tribal Member questioned why we continue to have a partnership with BART, when we can do this on our own.
Further stated according to administrative rules we are eligible, as this is based on population criteria of 2,500,
which we pass, as our Community is a ‘unique composition‘. Mr. Hartlev advised he will look into this matter and
report back. Authorization to submit grant application to DOT. Resolution read and passed.
7) Bid Selection 3 Road Construction Projects: Ben Connors - Seeking Council Approval to Accept Mr.
Connors contractor recommendations. In regard to the Old Odanah Roads Culvert Project, Mr. Connors
recommendation is Jolma Construction.
Council Member Connors advised future contracts should contain some form of liability assumptions. Stated the
roads used to get to the project site should not be damaged or left in disrepair. This was duly noted by Mr.
Connors.
Motion to approve Jolma Construction. Motion carries.
Ackley, Macdonald, and Kegerville; recommendation is Northwoods. Motion to accept Northwoods. Motion carries.
Chip Sealing & Signs Bid; recommendation is Scott Construction Co. Motion made to accept recommendation.
Motion carries.
8) Health & Wellness Center Contract Dispute Resolution: Erick Arnold - Looking to pass some form of
dispute resolution plan to ensure proper enforcement should a dispute arise. The proposed plan would utilize our
own tribal court mechanisms. However the way the proposed contract is set up, it would allow a third party entity to
enforce the resolution.
Membership was very adamant about the waiver of our sovereign immunity in any way. It was the general
consensus of the Council that there will be zero waiver. Tribal Member informed the Secretary in his notes, these
same contractors promised zero waiver of sovereign immunity at the last meeting. Further stated the whole
reason behind us not utilizing tax credit funding through housing was the waiver of our immunity.
Chairman Wiggins instructed the Tribal Attorney there would be no action on this matter and its time to get back
to the negotiation table’.
9) Approval of 2010 Consolidated Tribal Budget: Ken Nemec - Mr. Nemec presented the proposed budget
for Council review. He did address some modifications which were made during the last review. Adjusted known
intercepts from the state due to non-payment of unemployment. IRS 941 non-payments were in the third quarter
(2009) and the fourth quarter in January. Also adjusted the IDC salaries. The administrative secretary was
adjusted back up to 2,080 hours. Also added the projected shortfall for the year. Mr. Nemec stated he got the
shortfall figures from Midwest Professionals and used that to formulate his figures. The Fire Department,
although it did not change in the overall dollar amounts, it was adjusted to reflect the Space Cost. Also adjusted
fringe benefits to reflect some staff changes. Mr. Nemec raised concern over some departments not paying Space
Cost in the past. Also reported Accounting was working on the 2011 Budget and were asserting a more stringent
approach in the collection of Space Cost payments. Mr. Nemec stated he has received notice from the IRS in
regard to the non-payment of the 941’s (UEI). Which in turn, there is interest accruing and we are being
penalized. Mr. Nemec did incorporate this into the budget which totals $32,160, however this figure does not
include the missed third/fourth quarter payments. Mr. Nemec is asking for this amount to make payment to
Unemployment. Further stated the state is willing to forgive some of these penalties if we make our payments
accordingly (if we have documented justification as to why it happened and follow corrective action). Mr. Nemec
referenced his adjustment packet and stated the adjustments were highlighted within this packet, The total
amount for the budget on the general side is $5,128,136. Mr. Nemec stated there are some recoverable monies
out there such as the 941 payments and also programs we have yet to be reimburse from, however this dollar
amount cannot be determined at this time. Mr. Nemec stated he has been working with the programs to achieve
the absolute ‘nitty gritty’ needs of programs.
Council Member Connors inquired as to where GLIFWC is in the budget. Mr. Nemec explained that it is reflected
in the Space Cost and in the shortfall at the Chief Blackbird Center. Council Member Connors wanted more
information. He will stop by the Accounting office and view the information requested.
Chairman Wiggins announced an open book policy. The Financials will be made available for public viewing by
our citizens. The books will be available in the library starting tomorrow. The monthly financials will also be posted
as they become available. Tutorial sheets on how to read the financials will be readily available. Some personnel
info will be censored however. The audits will also be displayed for public viewing.
Council Member reminded the Chairman of the standing motion in regard to the HR manager for the Casino.
Chairman asked for motion to rescind the motion made by Council on March 3. No motion made.
Mr. Nemec stated he would like to see this position passed, has there is plenty of room to budget this position in.
It is the Chairman’s stance to save money by not posting the HR manager job. His remedy would be the HR
manager from the administrative government level can oversee the HR department at the Casino.
Tribal Member advised the Chairman this was a very ill idea because that would be mixing government and
business. The HR manager would be paid from our government side for performing duties on our business side.
Chairman advocated there could be two rates of pay then.
Motion to table the budget failed. No second. Motion dead.
Council Member reminded the Chairman the Council voted and gave directive to post for this job and it wasn’t
followed. Tribal Member stated the Executive Director failed in his duty and disregarded Council action. Chairman
Wiggins stated the Council didn’t seem as passionate when they made the motion.
Motion to approve the 2010 Budget with the addition of a HR Manager for the Casino. Motion carries.
10) Space Allocation Plan: Ken Nemec - Presented the space plan. Discussed the new 10% ‘capital outlay‘.
Some concern raised as to these charge increases. Concern that the program’s services will suffer, as there will
be a lacking in funds. It was explained this plan was just a way to help our budgeting process by determining real
figures. Also in turn, the programs have a basis for new monies, grants, etc. Right now we’re still working with
Space Cost figures from 2005. Mr. Nemec also addressed building maintenance needs. Stated we could add a
$15 dollar an hour maintenance position by a small increase in square footage. Chairman stated we are not going
to talk about this issue at this time. Motion to approve the Space Cost Allocation Plan. Motion carries.
The meeting went into Executive around 11 PM.
