STATE OF MICHIGAN
MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING
Cadillac Place
3062 W. Grand Blvd., Suite L-700
Detroit, MI

Tuesday, August 12, 2008
10:00 A.M.

MINUTES

On Tuesday, August 12, 2008, the Michigan Gaming Control Board held a public meeting at the Board office in the Cadillac Place, 2062 W. Grand Blvd., Suite L-700, Detroit, MI.

Present:                    In attendance were the following Board members:

                                                   Mr. Damian Kassab, Chairman
                                                   Judge Benjamin Friedman
                                                   Mr. Donald Robinson
                                                   Ms. Barbara Rom
                                                   Mr. Michael Watza   

                                Also attending were:

                                                   Richard Kalm
                                                   Tom Barker
                                                   John Page
                                                   Fred Cleland
                                                   F/D/Lt. Vicki Johnson
                                                   Donald McGehee
                                                   Laurie Lander

Business:

Board Chairman Damian Kassab called the staff briefing of the public meeting to order at 10:06 a.m.  There being no preliminary business to discuss, Chairman Kassab noted for the record that all Board members were present.

Chairman Kassab stated that the first order of business was to approve the minutes from the June 10, 2008, regular public meeting and the June 27, 2008 special public meeting.  Chairman Kassab noted that all Board members had previously received the minutes, and asked if there were any questions or concerns.

Ms. Rom stated that she would like corrections made to the June 10th and June 27th meeting minutes.  The Board secretary noted the changes.

It was then moved and seconded that the minutes of the June 10, 2008 and June 27, 2008 meetings be approved.

Motion carried.

Next Mr. Kalm presented the Executive Director's report.  Mr. Kalm advised the Board that since the last Board meeting, Regulation Manager Rae Burnett had resigned from the Board and Diane Brown, Kathryn Ellis and Ken Kuehnel had been hired as CSI Section Secretary, Records Technician and Regulation Officer, respectively.  He further advised that the interview and selection process was ongoing for the remaining vacant positions.

In regards to the Board's budget, Mr. Kalm reported that for fiscal year 2008, from October 1, 2007 through July 31, 2008, the Board has incurred total expenditures of $13,793,801 leaving the unexpended balance of $6,469,109 in appropriated funding for FY 2008, which includes funds for anticipated expenditures by the Attorney General's Office and the Michigan State Police.

Mr. Kalm next reported that the casinos continue to operate 24/7 and for July 2008, the aggregate revenue in taxes for all three Detroit casinos was up by 1.98 percent and the gaming taxes were 10.38 million compared to 13.71 million for the same period last year.  Mr. Kalm explained that due to the tax rollback for MGM Grand Detroit Casino and MotorCity Casino, the taxes were lower compared to the same period last year even though the aggregate revenue was up.

In regards to employee licensing, Mr. Kalm advised the Board that the required background investigations for 107 pending Level 1 and 2 licenses had been completed and would be considered for approval by the Board at today's meeting.

Next Mr. Kalm reported on the MSP Board related activity for the months of June and July 2008.  He stated that there had been no staffing changes and that during the months of June and July 2008 the MSP Gaming Section investigated 114 criminal complaints and made 42 arrests.

Mr. Kalm further reported that as a result of a lengthy investigation, the Gaming Section Special Operations team, assisted by various law enforcement agencies and the Michigan Liquor Control Commission executed "Operation Unplugged", which was initiated by several complaints that area bars were participating in illegal gambling.  Items seized included $21,000 and 23 video poker slot machines.   Also, there was one felony arrest and several misdemeanor arrests.

Mr. Kalm also reported that the relocation of the MSP Gaming Section sergeants and troopers would take place on August 15, 2008.

Upon conclusion of Mr. Kalm's report and after Chairman Kassab's questions regarding backlog, personnel, Greektown Casino's opening date and the Vendor Comp Program were answered,  the Board considered for approval the recommendations of the Executive Director and the Licensing Division's staff regarding the 107 Level 1 and 2 occupational license applications.

It was moved by Mr. Watza and seconded by Judge Friedman to accept the recommendations of the Executive Director and the Licensing Division's staff for the 107 Level 1 and 2 occupational license applications.  A voice vote was taken.

Motion carried.

Next the Board considered the Executive Director's Reports and Licensing Division's staff recommendations regarding the pending transfers of interest in Ebel Signorelli Welke, L.L.C. and Wolverine Stone Company.

There being no questions from Board members, it was moved by Mr. Robinson and seconded by Ms. Rom that the Board enter orders approving the proposed transfers of interest in Ebel Signorelli Welke, L.L.C. and Wolverine Stone Company, under the licensing standards and requirements of the Act and Rules of the Board.   A voice vote was taken.

Motion carried.

The next agenda item was consideration of the Executive Director's Reports and Licensing Division's staff recommendations regarding the pending supplier license applications of The Mina Group, L.L.C. and Wing Construction, Inc.

There being no questions from Board members, it was moved by Judge Friedman and seconded by Ms. Rom that the Board enter orders finding and concluding The Mina Group, L.L.C. and Wing Construction, Inc., and their qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Act and Rules of the Board.  A voice vote was taken.

Motion carried.

Next the Board considered the Executive Director's Reports and Licensing Division's staff recommendations regarding the supplier license renewal requests of ComSource, Inc. and LaBelle Electric Services, Inc.

There being no questions from Board members, it was moved by Ms. Rom and seconded by Mr. Watza that the Board enter orders finding and concluding that ComSource, Inc. and LaBelle Electric Services, Inc., and their qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Act and Rules of the Board.  And accordingly, granting these requests for renewal of their annual supplier license for a new one-year period beginning August 12, 2008.  A voice vote was taken.

Motion carried.

Next the Board considered the Executive Director's Report and Licensing Division's staff recommendation regarding the supplier license renewal request of Compsat Security, Inc.

There being no questions from Board members, it was moved by Mr. Watza and seconded by Ms. Rom that the Board enter an order denying the supplier license renewal application of Compsat Security, Inc. for the reasons stated in the written recommendation of the Executive Director and the Board's Licensing Division staff.  A voice vote was taken.

Motion carried.

The Board next considered the Executive Director's Report and Licensing Division's staff recommendation regarding the request to withdraw the supplier license application of Inteligente Solutions, Inc.

Again, there being no questions from Board members is was moved by Mr. Robinson and seconded by Ms. Rom that the Board enter an order granting the request of Inteligente Solutions, Inc. for withdrawal of its supplier license application, based upon the Board's staff report and recommendation.  A voice vote was taken.

Motion carried.

The Board next considered Plaka Café, Inc.'s appeal of the denial of stay of order of summary suspension.

Chairman Kassab noted for the record the presence of Assistant Attorney General Jessica Hodgson, and Michael Gordner and Saul Green, counsel for Plaka Café, Inc.

Chairman Kassab then asked Ms. Hodgson to give a summary of the case.

Upon conclusion of Ms. Hodgson's summary, Mr. Gordner requested permission to address the Board.

Upon conclusion of Mr. Gordner's and Mr. Green's comments and Board members' questions were answered, it was moved by Ms. Rom and seconded by Mr. Watza that the Board enter an order denying the appeal of the denial of stay of order of summary suspension for Plaka Café, Inc. for the reasons stated in the written recommendation of the Executive Director, the Board's Licensing staff and the comments of the Board at today's meeting.  A voice vote was taken.

Motion carried.

Next Chairman Kassab expressed concerns regarding the Vendor Comp Program and made a motion for the revocation of Resolution 2006-1, which allowed vendor exemptions and waivers from the supplier licensing requirements of the Rules of the Board.

After Board discussion, Chairman Kassab withdrew his motion for the revocation of Resolution 2006-1 and requested that the Attorney General and Board staff review the Vendor Comp Program and present a report to the Board at its next regularly scheduled meeting.

The Board next considered the Acknowledgment of Violation of occupational licensee Olisaeloka Dallah.

Chairman Kassab acknowledged for the record the presence of Assistant Attorney General Bethany Scheib, Mr. Dallah and Mr. David Waddell, counsel for Mr. Dallah.

Upon Chairman Kassab's request Ms. Scheib gave a brief summary of the case, with rebuttal from Mr. Waddell.

Upon conclusion of Ms. Scheib's and Mr. Waddell's comments and questions from Board members were answered, it was moved by Mr. Watza and seconded by Ms. Rom that the Board accept the proposed Acknowledgement of Violation as agreed to by the Michigan Gaming Control Board staff and occupational licensee Olisaeloka Dallah, and issue an order adopting, accepting and incorporating the Acknowledgment of Violation as the Board's final decision.  A voice vote was taken.

Motion carried.

The Board next considered the Acknowledgment of Violation of supplier licensee The Right Productions, Inc.

Chairman Kassab acknowledged for the record the presence of Assistant Attorney General Jessica Hodgson.  Chairman Kassab further noted that there were no representatives for the licensee present at the meeting.

Upon Chairman Kassab's request Ms. Hodgson gave a brief summary of the case.

Upon conclusion of Ms. Hodgson's summary, it was moved by Judge Friedman and seconded by Mr. Watza that the Board accept the proposed Acknowledgement of Violation as agreed to by the Michigan Gaming Control Board staff and supplier licensee The Right Productions, Inc., and issue an order adopting, accepting and incorporating the Acknowledgment of Violation as the Board's final decision.  A voice vote was taken.

Motion carried.

Chairman Kassab recessed the meeting at 12:20 p.m.

Chairman Kassab reconvened the meeting at 12:30 p.m.

Upon Chairman Kassab's request Mr. Chuck Moore of Conway MacKenzie & Dunleavy, financial advisors for Greektown Casino, gave a brief status report pursuant to the Board's June 10, 2008 show cause order.

Upon conclusion of Mr. Moore's presentation, the Board considered the proposed public meeting schedule for FY 2008-09.

After Board discussion, it was moved by Chairman Kassab and seconded by Judge Friedman to cancel the September 9, 2008 regularly scheduled Board meeting, due to the fact the Governor would be holding the City of Detroit Mayor's hearing in the Board hearing room beginning Sept. 3, 2008.  A voice vote was taken.

Motion carried.

Next it was moved by Chairman Kassab and seconded by Mr. Watza that the Board adopt the proposed schedule of its regular public meetings for the FY 2008-09, in accordance with the Open Meetings Act, and amend the schedule to reflect the change of the October and November 2008 Board meetings to October 8, 2008 and November 5, 2008, with the remainder of the schedule to remain the second Tuesday of the month.  A roll call vote was taken.

                                              Chairman Kassab:                     Aye
                                              Judge Friedman:                       Aye
                                              Mr. Robinson:                           Aye
                                              Ms. Rom:                                 Aye
                                              Mr. Watza:                               Aye

Motion carried.

Next Chairman Kassab requested a motion to recess and go into closed session.

Therefore, it was moved by Ms. Rom and seconded by Mr. Robinson, that the Board recess and go into closed session for the purpose of receiving legal advice and counsel from the Board's attorney regarding pending Board litigation, and receiving confidential notification regarding the names of the individuals placed on the Board's Dissociated Persons List since the Board's last public meeting as required by the Act.  A roll call vote was taken.

                                                      Chairman Kassab:            Aye
                                                      Judge Friedman:               Aye
                                                      Mr. Robinson:                   Aye
                                                      Ms. Rom:                         Aye
                                                      Mr. Watza:                       Aye

There being no other business to discuss, Chairman Kassab adjourned the meeting at 1:18 p.m.

________________________________________________

Laurie Lander, Board Secretary