CALIFORNIA STATE LOTTERY COMMISSION Minutes Sacramento, California 1. Call to Order Vice Chair Gregory Ahern called the public meeting of the California State Lottery Commission to order at 10:03 a.m. at the California State Lottery Headquarters, 700 North 10 th Street, Sacramento, CA 95811. 2. Pledge of Allegiance Ahern led the Pledge of Allegiance. 3. Roll Call Ahern asked Elisa Topete to call the roll. Commission Members Present: Vice Chair Gregory Ahern Commissioner John Smolin Commissioner Rowena Libang-Bobila CSL Staff and presenters: Paula LaBrie, Acting Director Nicole Soluri, Chief Counsel Nicholas Buchen, Deputy Director of Finance David Cole, Deputy Director of Sales John Koyama, Sr. Marketing Specialist, Business Planning Christopher Riesen, Deputy Director of Information Technology Services Roberto Zavala, Deputy Director of Internal Audits Terry Murphy, Deputy Director of Operations Paula Negrete, Deputy Director of Legislation & External Affairs Jim Hasegawa, Deputy Director of Business Planning Elisa Topete, Assistant to the Commission Kim Crestelo, Recording Secretary 4. Closed Session No Closed Session scheduled. 5. Consider Approval of the Agenda Vice Chair Ahern asked if any of the Commissioners wanted to make changes to the agenda as proposed. Smolin made the motion to approve the agenda. Seconded by Libang-Bobila. The agenda passed unanimously (3-0).
Page 2 6. Approval of Minutes Ahern asked if there were any additions or corrections to the January 29, 2015 minutes. Libang-Bobila made the motion to approve the minutes. Seconded by Smolin. The minutes passed unanimously (3-0). 7. Director s Report The following oral reports were presented: a. Acting Director s Comments Paula LaBrie b. Status of Retail Recruitment David Cole & Nicholas Buchen c. Status of Gift Card Request for Information John Koyama d. Presentation of Draft Fiscal Year 2015-16 Budget Nicholas Buchen 8. Consent Calendar a. Scratchers Core Game Profile Templates Due to expansion of higher price points, growth in the Lottery s $10 and $20 games and the upcoming introduction of the first $30 game, staff recommends approval of the Scratchers Core Game Profile Templates to provide increased flexibility, improved profitability and additional features to the types of games the Lottery will launch in the coming years. Ahern asked if anyone from the audience had any questions on Consent Calendar Item 8(a). No one came forward so he proceeded to the motion of approval. Smolin made the motion to approve Consent Calendar Item 8(a). Seconded by Libang- 9. Action Items a. Business Analytics Support Contract Staff requested approval of a competitive procurement to acquire analytics software support. The contract will continue to provide support for the Lottery s existing Predixion analytics software by providing a data scientist along with additional support options. Presented by Christopher Riesen, Deputy Director of Information Technology Services. Ahern asked if anyone from the audience had any questions on Action Item 9(a). Libang-Bobila made the motion to approve Action Item 9(a). Seconded by b. Multi-Function Printer Support Contract Staff requested approval to purchase the Xerox Maintenance Agreement to provide the Lottery with maintenance for all of the multi-function printers. The
Page 3 agreement also provides for Xerox trained technicians to service all Lottery Xerox printers on a monthly basis. Presented by Christopher Riesen, Deputy Director of Information Technology. Ahern asked if anyone from the audience had any questions on Action Item 9(b). Smolin made the motion to approve Action Item 9(b). Seconded by Libang- c. Amendment to Department of Rehabilitation Interagency Agreement Staff requested approval of an amendment to the Department of Rehabilitation Interagency Agreement exercising its one-year renewal option and adding funds for Fiscal Year 2015-16 inspections. The Lottery s Retailer Access Program provides guidelines and requirements to Lottery retailers ensuring that retail locations provide individuals with disabilities, access to all Lottery Products. Presented by Roberto Zavala, Deputy Director of Internal Audits. Ahern asked if anyone from the audience had any questions on Action Item 9(c). Libang-Bobila made the motion to approve Action Item 9(c). Seconded by d. Amendment to Draw Auditing and Review Services Contract Staff requested approval for an extension of the draw auditing and review services contract with KPMG for one additional year. The Lottery is required to engage an independent lottery contractor to ensure that all drawings are independently inspected and witnessed before and after drawings. Presented by Roberto Zavala, Deputy Director of Internal Audits. Ahern asked if anyone from the audience had any questions on Action Item 9(d). Libang-Bobila made the motion to approve Action Item 9(d). Seconded by e. Purchase of Real Property to Replace Santa Ana District Office Staff requested approval to purchase real property to replace the Santa Ana District Office in order to provide a facility that supports the Lottery s current and future operational needs. Presented by Terry Murphy, Deputy Director of Operations. Ahern asked if anyone from the audience had any questions on Action Item 9(e).
Page 4 Smolin made the motion to approve Action Item 9(e). Seconded by Libang- f. Ratification of Purchase of Real Property to Replace the Van Nuys District Office On September 25, 2014, the Commission authorized the Lottery to purchase real property to replace the current Van Nuys District Office with a cost not to exceed $4.5 million. Because of passage of time, competitive commercial real estate market conditions in the Van Nuys region and ideal specifications of an identified property, Lottery staff executive a Letter of Intent for a parcel on May 18, 2015 with a purchase price of $5.07 million. Presented by Terry Murphy, Deputy Director of Operations. Ahern asked if anyone from the audience had any questions on Action Item 9(f). Libang-Bobila made the motion to approve Action Item 9(f). Seconded by Smolin. The motion passed unanimously (3-0). g. Problem Gambling Prevention Contract Renewal Staff requested approval of a new two-year Interagency Agreement with the California Department of Public Health for problem gambling prevention and treatment services provided by the Office of Problem Gambling. Presented by Paula Negrete, Deputy Director of Legislation and External Affairs. Ahern asked if anyone from the audience had any questions on Action Item 9(g). Smolin made the motion to approve Action Item 9(g). Seconded by Libang- h. Fiscal Year 2015-16 Business Plan Staff requested approval of the final year of the three-year strategic plan where key objectives and strategies were identified and prioritized with more detailed plans established each year to reach organizational goals. Presented by Jim Hasegawa, Deputy Director of Business Planning. Ahern asked if anyone from the audience had any questions on Action Item 9(h). Smolin made the motion to approve Action Item 9(h). Seconded by Libang-
Page 5 10. Commissioner General Discussion Ahern expressed his gratitude toward staff for their achievement of the Level IV WLA Certification; the first lottery in the United States to be accredited that level. 11. Scheduling Next Meetings The next Commission Meeting is tentatively scheduled for June 25, 2015 in Sacramento. 12. Public Discussion Ahern asked if anyone from the public had anything to discuss. No one had signed up prior to the meeting and no one came forward so he proceeded to the next item on the agenda. 13. Adjournment Meeting adjourned at 11:49 a.m.