- The Breakdown
- Bad River Gaming Commission Meeting July 22, 2010
The Bad River Gaming Commission Meeting held on July 22, 2010 was slated for 15 items on the Agenda. Ten
items were heard in Regular Session, five items in Executive Session. One additional item was added to the
executive portion which was, Banking Refinancing Issues (#6).
Meeting called to order. Roll call taken, all seven Board members present.
Moment of silence observed.
Agenda approved as amended.
Regular Session:
1.) Monthly Report: Brian Mayotte - There will be no financials available for the month of June. Primarily
this month’s report will consist of Marketing & Events. Casino Manager stated we have been doing the usual
monthly promotions & events for this time of season. Highlighted a brief summary of monthly activities; Battle of
the Bad (June 26). Had a good showing, sold 220 tickets for the event. Headlined 12 bouts. Was held from 7
pm to 10:30 pm. One of our local fighters, Randall Gouge, won ‘Most Outstanding Boxer of the Night‘.
Management also mentioned our Father’s Day Drawings (June 20), 8 pm to 11 pm; drawings were held every
half hour ($100 cash prizes & BP Cards). The Grand Prize was $1,000 & $50 Gift Card for the Grocery Store &
a BP gas card in the amount of $250, which went to a local from Mellen, WI. Also to mention was the ‘King of
the Hill Tournament’, and several other various table games tournaments. Currently (as of 7-19-10) we have
220 casino employees on staff. Of that figure, 160 Tribal Members. 56 new hires, 103 terminations. 176
employees are full-time. 13 part-time staffers. 31 limited-term employees. Currently the average casino hourly
wage is $9.16.
Chairman Wiggins asked Mr. Mayotte for a brief background in regard to limited-term employment, as this
question was raised by Board Member. Board Member wanted to know specifically, of the 56 new-hires how
many were limited-term. Management stated since January we have had 32. Board Member wanted to know of
the 56 new-hires which ones are LTE. Was looking for an exact number now, not from January. Mr. Mayotte
stated the majority of the new-hires have been limited-term. Board Member wanted to know why this was being
practiced. Management stated this was a cost curbing method. Limited term employment is being utilized for the
busier portion of the season. Board Member stated as a Council Member she would like to see this practice
stopped. Board member questioned what kinds of incentives does this practice promote for the LTEs.
Management stated it gives them a chance to get their ‘foot in the door’. Board Member Ford felt this practice
is ridiculous and didn’t see the reasoning on curbing cost on the lowest end of the business. Board Member
Burns was concerned as to a ’revolving door’ of limited term employees; LTEs working their required time and
being replaced with other LTEs. Ultimately Management could not provide any data of substance because only
two LTEs have fulfilled their employment time. Management did state every department has their core level of
employees and LTEs were initialized as business trends go up with seasonal necessity.
Chairman Wiggins called upon various Department Heads in attendance to offer their perspective on LTE
staffers, from an operational standpoint. The Department Head for the Lodge indicated in his Housekeeping
Department this is the biggest crew he has ever had and right now there approximately 5-6 LTEs on staff.
Lodge Management stated if he was to hire 4 or 5 permanents during the busy season, when the slow season
comes he will be swamped with employees and no work for them. Board Member Greene stated she could see
the feasibility with the Lodge portion of the Casino, but couldn’t really agree with the practice of LTEs in the
rest of the Casino. Board Member Ford wanted to know the core number of employees for the Lodge.
Management stated the core is 6 staffers in Housekeeping and right now he’s working with approximately 10 on
staff. Custodial Maintenance Manager indicated she has a core base of 18. However due to financial restraints
this number has been cut down to 16. She stated due to attendance issues her department has a high
turnover rate. Therefore, these employees are not even making their 90 day probationary period. Further
stated the LTE practice is working for her department, as there is 4 full-time positions available if the LTEs
display good work ethic. Board Member wanted to know why there is LTEs if there are 4 openings. Custodial
Manager indicated she received notice from the personnel office that all employees coming in shall be limited-
term. Board Member stated this practice needs to stop. This is why there is such a high turnover rate. There
was a comment made by Tribal Member about low wages. Lodge Management commented that for last five
years employee wage increases have been turned down. Board Member stated it was a problem with Casino
budgeting. Management insinuated this was Council action. Wage COLA’s were mentioned in reference to
them not being merit raises. Food Service Head stated he has a core group of approximately 30 staffers, with 8
LTEs. Stated so far he thinks this practice has worked well. LTE has been supplemental dishwashers and wait
staff. The rest of the Department Heads stated they do not have any limited-term staffers on board.
Tribal Member stated under the Gaming Act, which is why we have casinos, this is supposed to help our Tribe
economically and how can this be accomplished when we practice this LTE and offer our people and their
families nothing.
Tribal Member felt this practice was flawed because it gave no incentives to our limited-term employees.
Tribal Member raised question as to LTE probationary period; LTE term is 6 months. Is then another
probationary period enforced after this LTE term. Wanted clarification as to common practice. LTE term is
generally six months. Probationary period is 90 days.
Tribal Member advised these LTEs are not eligible for medical insurance so then we essentially hurt ourselves
as we as a Tribe foot the bill for the uninsured.
Custodial Management stated she hired four employees, of those four one fulfilled their probationary period.
The other three were let go due to attendance issues. Stated attendance problems burden fellow workers and
disrupts day to day departmental operations. Board Member stated, ‘then you get rid of them and fill the
position again.’ Reiterated her stance on LTEs. Management stated she was following her orders per the
personnel office and once the employee fulfills their probationary period then they are entitled to full benefits
and leave time.
Brief discussion on disciplinary action in regard to employee absenteeism and sick leave in accordance to
casino policies and procedures; doctor’s notes. Tribal Member’s interpretation is that policies indicate an
excused absence requires prior approval with a doctor’s note and the employee is required to call in every day
regardless of the doctor‘s note. Member is asking for clarification on this because a lot of terminated
employees are stating they were let go even with doctor’s excuse because they failed to call in every single day
of their excused medical leave.
Another Tribal Member wanted verification as to when an employee calls in sick, if they don’t get a medical note
that same day it is counted as an unexcused absence.
It was verified that when an employee falls ill they must have a doctor’s note from the time they are absent and
must communicate with the employer throughout their illness.
Chairman Wiggins stated Casino Management’s LTE summary was a first step in an in-depth look into the LTE
practice and there are several sides to look at which circulate this topic such as the financial and social
aspects. Chairman directed management to get everything in order as he foresees more discussion in these
regards.
Chairman directed Mr. Mayotte to continue on with his presentation.
Manager stated the financial reviews haven’t been completed yet. Head count was 28,380 compared to 31,000
last year. We’re still in the budgeting process. Moccasin Trail Center has completed 2010 budget which was
presented at the last meeting. 2011 budget is nearing completion. We are also working on centralized
purchasing in regard to cigarettes. Also working on software upgrades. Also looking into various marketing
ideas and strategies. Also looking at gas and grocery discounts. Waiting on a firmer pricing control with gas
before this is initialized. Also currently working on inventory proposals. Management stated we have made a lot
of positive progress and success.
Brief discussion on internal controls and procedure development specifically in regard to cash handling. Store
Manager stated this an area we are currently working on to develop written procedures to bring before Council.
Manager spoke about the new Casino lounge. It opened its doors on July 1. Would like to have the grand
opening possibly on September 18. There was concern raised by Board Member about the bar top. It was
stated the ultimate product was not the one originally designed, will address the problem by resurfacing. It was
expressed by the Board that this should be resolved before the grand opening.
Board was concerned about the method Casino venues are being announced and advertised. Stressed we
must improve on this area.
Tribal Member suggested to shorten up our announcements on our Casino Marquee. Stated it is difficult to
read our Marquee postings at highway speed.
Mr. Mayotte stated we are preparing for the upcoming Pow-Wow and looking into possible table game
tournaments and other activities that would bring in business. Also looking into picture frames for our historical
photographs. Currently checking out contractors for some cement work in the Casino walkways. Getting
proposals for restrooms and some software upgrades.
Question was raised as to buses. Management stated they are currently trying to develop cost effective
solutions to bus packages.
Board Member requested clarification as to whether or not all new-hires will be presented to Council for
approval. Management stated all new-hires will be presented for Council approval.
Tribal Member wanted an update in regard to the RV parking situation.
Vice-Chair wanted to know about the Direct Mail Promo. It was to his understanding Council abolished this with
the upcoming summer months. Casino Management stated ‘this was done internally so we made the decision to
end it ourselves.’ It is the Vice-Chairman’s stance it was a Council decision. Chairman stated that wasn’t the
case.
Motion made by Board Member Burns to end the Direct Mail Promotion. Chairman stated he will not entertain
the motion. Chairman stated she is making a motion without any financial review of the promotion.
Tribal Member wanted to know how our Chairman can deny a motion. Chairman’s stance is there has been no
proper financial review to make an informed decision. Board Member Burns reiterated her motion. Chairman
asked her ‘in lieu of what?’ Further stated this hasn’t been put up for full financial review in front of Council.
Chairman would like to know what’s going to replace the slow business of the winter months.
It was Board Member Ford’s belief that this was also stopped by Council action. Chairman Wiggins felt strongly
the Council should review the financial information before making a decision. Board member Burns stated the
Community has voiced concerns over this promotion and there is a motion on the floor. Chairman stated ’who
are financial experts?’ as he made reference to Community Members.
This statement seemed to ignite Tribal Members’ emotions as they took offense and stated the Chairman is out
of order. Membership called for the motion on the floor to be heard.
Chairman stated he is trying to make rational business decisions and felt very passionate about bringing in
Casino revenue during the slow season. Tribal Member stated that’s what the Board is for, to make these
business decisions as a whole, not just one person.
Motion by Board Member Burns on the floor. Chairman calls for a second. Seconded by Board Member Ford.
Vote taken, Board Members Connors and Corbine stated they would like to have seen more information before
their decision. Motion to end the Direct Mail Promo passed 4-2.
Motion to approve Monthly Report. Motion carries.
2.) Monthly Report: Joe Bates - Store Manager gave a brief summary of the monthly business activities
and goals involving the Store. Management stated it has been a very exciting month and he continues to enjoy
working with the current employee base at the Store. Currently there are some marketing ideas being worked
on. The 2011 budget is nearing completion. Also been working on identifying outdated price tags and updating
them accordingly. The budget is based on proper Store markup, so we need to establish the proper pricing.
Management also stated we have currently accomplished a method of centralized purchasing with regard to
cigarettes (the Store will be the main purchaser). Inventory taking proposals still a work in progress. Currently
these proposals are under review by our Legal Department. Management also mentioned some software
upgrades, which will enable us with better inventory control. The new Thursday 10% off promotion continues to
be well received, as is the new extended Store hours. Management is finding higher traffic volumes during the
evening hours just before closing. Mr. Bates feels this is a strong positive indication the word is getting out to
the public. Spoke about our weekly in-house specials which are advertised on in-house flyers which are
available at the end of the service counter near the entrance. The in-house emails and in-house postings have
also increased traffic to the Store. Management also stated they have a portion of bulletin space just outside
the Store entrance, where new items are posted for the customers. Mr. Bates also offered a comment in regard
to a Community Member’s question about the RV Park. Stated they do utilize the gas/grocery store and bring in
strong business. They have stated they enjoy their time here and will be back. Management is also working on
the Store’s current bar coding system. Compatibility issues discussed with the new inventory control
contractors. Mr. Bates also discussed his recent radio appearance. It was enjoyable. He received air time to
discuss Casino events and Store promotions.
Tribal member had a question about the inventory control with regard to the bar code implementation. It was
explained inventory would be taken 4 times a year (bi-quarterly). This system would better recognize the sales
and movement of products store-wide.
Tribal Member wanted clarification as to what type of security/preventive measures are in place with regard to
possible shoplifting. It was explained the Store utilizes our Casino Surveillance system to combat this. The
Store is also separate from gaming however it is still utilized in this fashion. Member cautioned that Surveillance
has a lot to watch and perhaps things may not be watched as carefully as they could be. Management stated
the new inventory bar code system could be used to determine if things were indeed being taken and with this
information they could make adjustments to combat these situations.
Tribal Member asked if this inventory control could be implemented internally after some initial training. Mr.
Bates stated this could be a possibility but right now we need to get a proper handle on things.
Vice-Chairman questioned why a Tribal Member was turned away with his request to set up a food vending
stand outside in the Store Parking lot. Mr. Bates explained there were previously scheduled requests by other
Tribal Members to use the exterior Store Lobby for food vending purposes. These Members had gone through
the proper procedure and filled out a prior request form. Mr. Bates stated any Member may have access and
utilize the exterior lobby as long as proper paperwork is filled out with prior notification. Management felt if he
approved the request for the stand in the parking lot this may hinder the other Member’s food stand.
Board Member Connors would like to know the status of our current BP gas contract. Mr. Bates stated we are
nearing the end of our third year of a ten year contract. We are locked into this as it is a legal binding contract.
There was some upfront monies paid in the amount of $50,000. In order to buy out of this contract we would
have to pay off the remaining percentage of the ten year contract which is $32,500.
Tribal Member commented that BP has been ordered by the Government to set up a $20 billion plus fund for
businesses affected by their recent oil spill disaster. Member further stated that our gas station business is
being affected by this disaster so this does leave discussions open for possible contract outs. Mr. Bates stated
there are certain stipulations in this contract which could be identified as possible outs, such as; BP’s inability
to supply us fuel. This has happened on several occasions. Mr. Bates spoke of one of these incidences just
this past Sunday. We were running dangerously low and promised by BP gas would arrive Sunday morning.
The Tanker truck never showed and we ultimately ran out of unleaded fuel on pumps #3, #2, & #8. Mr. Bates
called BP and was told they were experiencing ‘some problems’.
Chairman Wiggins stated there are proper incident reports on file and hinted we could possibly use this
documentation as legal reasoning for divorcing our contract.
Tribal member wanted to know how the $50,000 sign on bonus was spent and what exactly was it spent on.
Management stated he doesn’t have this information at this time. Tribal Member stated he believed this was
actually in credit to future tribal purchases or product orders. It was another Tribal Member’s understanding the
money was used for our sign changeover as it was stated in the contract. Board member Ford was led to
believe the Tribe foot the bill for that.
Motion to approve Monthly Report. Motion Carries.
3.) Casino Anniversary Marketing Proposals: Brian Mayotte - Anniversary Proposals for September
would most likely encompass various prize drawings, entertainment venues, and food specials. In respect to the
overall cost, in 2008 the cost was roughly $19,000. Last year was approximately $20,000. This year’s estimate
is $19,300. The proposed drawings would revolve around a ‘punch board’. The idea of this would be a
progressive system with a higher end and a lower end with respect to prizes. The projected cost of the
drawings would be approximately $14,550, this figure would most likely be significantly less due to player odds.
The decoration cost throughout the Casino is estimated to be around $500. Also the estimated cost for radio
airplay, advertising, etc. is around $1,500. Approximate cost for food is $1,100. For entertainment we are
currently looking at Riverside DJ. This is the same DJ that has provided karaoke for us in the past. The DJ will
be from 5pm-9m. We also will have Phoenix Rising which will be in the Entertainment Center from 9pm-1am.
Between the two venues the cost will be $1,650. The grand prize for the drawing will be $2,500. Management is
looking to finalize the entertainer’s contracts. Reviewed with legal department to bring before Council for
approval and then submit after a signatory by the Chairman.
Motion to approve the request. Motion carries.
Meeting recessed for 5 minute break.
4.) Cigarette - Notice Sign Posting - To Tribal Members: Joe Bates; Chris Bell - Management is
presenting a problem before Council/Board in regard to loss revenue caused by Tribal Members buying
cartons of cigarettes at discounted rate for taxable parties. Currently the ordinance states Tribal Members
residing on the Reservation are the only individuals who are eligible to receive this discounted rate. There was
a lengthy discussion as to revising our current ordinance with regards to taxability issues for off-reservation
Tribal Members. Tribal Attorney felt this is worth looking into. Tribal Member felt that we should use caution
when setting up these types of ordinances for our Members living off-res that penalize them needlessly for
where they live due to choice or force of burden. The Management also mentioned within the parameters of the
ordinance (dated 1996) which states Tribal Members are only entitled to 20 cartons of cigarettes per person,
per month. Tribal Member cited the Interstate Commerce Act which is federal law. Taxability issues have been
addressed and litigated with this federal law by certain tribes. This would ultimately allow tribal people to
purchase gas or cigarettes tax free on any given reservation lands, as long as the purchaser possess a tribal
enrollment number. As the clause states; [States are powerless, to regulate commerce with Indian tribes.]
Therefore the tenth amendment to the U.S. Constitution does not apply. Chairman Wiggins instructed Tribal
Legal Department to research this matter further and bring before Council for presentation. Management has
stated they currently keep detailed records on cigarette sales in order to document ordinance adherence.
Chairman called for a more educational information effort to the Community with regards to abusing our tax
exemption status. Tribal Member stated she has witnessed Casino personnel purchasing cartons at the tax-
exempt rate for non-member customers. It was stated Surveillance Department needs to enforce these
incidences more closely. Tribal Member suggested tagging these unstamped cartons with a fluorescent sticker
which will enable Surveillance to police this more closely. Member was informed this was just put into motion
approximately 2 weeks ago. Chairman advised Management to reaffirm the ordinance by postings and continue
upon the firm approach that has already been initiated. Chairman Wiggins further indicated a lot of this could
be stopped at the registers and called for a continued proactive approach with the enforcement of policy.
Casino Management stated these sign postings will enable our Casino employees to defend themselves
against non-member customer badgering to buy them discount cigarettes.
5.) Waiver fee and Criteria Finalization: Tammy Schwiesow - During the Gaming Meeting back on April
2, Mrs. Schwiesow previously presented a draft to the Gaming Commission on a 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. At that time Mrs. Schwiesow was
seeking Council support in her efforts to formulate a strategy for reimbursement. Aside from the waiver fee
there were seven criteria guidelines. On April 2 there was a consensus vote taken by the Board which
restricted eligibility exclusively to Bad River Tribal Members in regard to applicability to the felony waiver
process. It was also Board recommendation the waiver fee would be worked into the actual criteria guidelines.
Mrs. Schwiesow has completed this task and brought the plan back for review. Motion to approve the waiver
fee and criteria guidelines. Motion carries.
6.) Ad Hoc Election Committee Selection - Election held by secret ballot. Selections are; G. Secord, D.
Wolfe, C. Pero.
7.) Summer Youth Program: Mary Kaulaity - Seeking Council approval for the 2010 Summer youth
program. Submitted written summary which listed program details; transportation, number of youth participants,
number of adult supervisors and related costs. $1,600 estimated gas cost; based this on estimates from the
driver. Worked with Tribal Operations Manager in the budget construction process. Budget is estimated at
$7,800; which includes projected labor, number of applicants, etc. If the Council is willing to go over the budget,
they would be asking for additional help. Mrs. Kaulaity stated the month of August is going to be extremely
busy, especially since this program has been pushed so far back. The need for additional supervisors is
definitely there. There were several options available with respect to how Council wishes to proceed with
budgeting. Chairman Wiggins stated the Council’s wishes are what’s best for the kids. Discussion on who this
program will serve; on-res Members only, on & off-res Members only, *other on & off-res members & tribal on &
off-res members*. It was suggested less supervisors and more kids. Chairman stated there would be a $1,500
savings however, there is a need for more help with regard to ’kid control’, plus the creation of another much
needed job for our people. Motion to approve the 2010 Summer Youth program (option #1). Motion carries.
8.) DSGW Interior Design Contract: Jackie Rose - Looking for Council approval to approve DSGW an
interior design contract in the amount of, but not to exceed $30,000. This contract consists of interior design
work, aesthetic beautification, furnishings, carpets, chairs, tables, desks, brochure racks etc.
Tribal Member wanted clarification as to what the contract was exactly. Wanted to know if this was another
contractor that was saying they could get us the best price on this service.
Mrs. Rose indicated this was another extension of the architectural firm that is contracted for the construction
of our Health & Wellness Center to provide work that was not included in the original bid.
Tribal Member was under the impression this was an extra and stated at previous meetings it was mentioned
there would be no extras. Chairman explained that this was interior design and not construction.
Member cautioned against contractors coming in and giving a complete bid and then adding extra work.
Membership felt the cost of these services was excessive.
Tribal member questioned if this was an add-on to the contract or a separate contract. Mrs. Rose stated it was
a separate contract. Member wanted to know if RFP Procurement was involved. Mrs. Rose stated RFP was not
involved with this contract due to the construction of the building being sole sourced to the same firm that is
designing it and this also being a specialized area of work.
Tribal Attorney advised there is a challenge to determine the competitiveness of the contract without any bid
comparisons.
Motion to initiate RFP Procurement in regard to the Interior Design Contract. Motion carries.
9.) Housing Resolutions - There was some discrepancy as to previous Resolutions filed. Council Members
believed they had previously voted and passed Resolutions during a prior meeting. Several minutes passed as
Housing & Council worked to clarify this situation. Several more minutes passed with no clarification Sitting in
the audience it was difficult to determine what was transpiring as Housing & Council talked amongst
themselves. Item tabled.
10.) 401(k): Erick Arnold - Presented amended documentation that is a follow up with the Council’s earlier
decision to terminate the 401(k) plan and how to go about the procedure for close out and distribution of trust
funds. The 2 main points about the amendment are; (1) trying to make the distribution run smoothly and
quickly; the main challenge here would be trying to locate the beneficiaries; especially those with small
amounts. So this is addressed with the ability to roll these amounts into another retirement account. After
attempting to locate beneficiaries unsuccessfully, these amounts would automatically be rolled over. (2)
Documentation of letter to not request a review by the Internal Revenue Service (letter of determination). This
process is not required but discretionary and also takes a lot of time to obtain. In this regard, the law changed
back in 2006 which doesn’t require a review to close out this account. Resolution to adopt and execute the
termination of the retirement 401(k) plan read and passed.
Meeting went into Executive session around 9:30 pm.