Washington Horse Racing Commission
Meeting Minutes
November 7, 2007

Present were: Carol Smith-Merkulov, Chairperson; Jeff Colliton, Commissioner; Paul George, Commissioner; Hartly Kruger, Commissioner; Robert M. Leichner, Executive Secretary; Patty Sorby, Confidential Secretary. Dr. Bud Hallowell, DVM, Commissioner, excused.

Item #1. Approval of the meeting minutes of October 11, 2007.

Commissioner Kruger moved to approve the minutes as submitted. Commissioner George seconded the motion. Unanimously approved.

Item #2. Chairperson’s report.

Chairperson Smith-Merkulov said Commissioner Colliton had been receiving many emails expressing concerns with the race surface at Emerald Downs. At the October meeting, Commissioner Colliton and Commissioner Hallowell had accepted the assignment of looking into the allegations regarding the race surface, collect data and report back.

Commissioner Colliton on behalf of himself and Commissioner Hallowell, who was unable to be present, reported that all stakeholders have the same goal and that is to have a safe facility. Commissioner Colliton said samples have been taken of the track surface, but those reports have not been received and no decisions could be made for changes, if any, before a final report is received. He and Dr. Hallowell are continuing to receive information and hope to have a final report for the December meeting.

Chairperson Smith-Merkulov thanked Commissioners Colliton and Hallowell for their work on this project.
Chairperson Smith-Merkulov was pleased to announce that Sally Calkins, DVM, had been offered and accepted the position of WHRC Equine Medical Director.

Item #3. Emerald Downs’ report.

Mr. Ron Crockett, President, Northwest Racing Associates LP, Emerald Downs, gave a favorable report on advance deposit wagering and the simulcast wagering. Mr. Crockett said Breeder’s Cup day, which is usually a good wagering day, was down but the advance deposit wagering for the event was very good.

a. Fraser Downs import signal stopped.

Susie Sourwine, Marketing Director, Emerald Downs, had received a call from Mary Ann O’Connell, Executive Director, Horsemen’s Benevolent & Protective Association (HBPA) requesting support by stopping the import of the signal from Fraser Downs. Fraser Downs was not sharing the profits from the sale of the simulcast signal with their horsemen and asked Emerald Downs to refuse the signal to show support for the horsemen. Emerald Downs did refuse the signal and Fraser Downs came to an agreement with their horsemen and the signal has now resumed.

b. Track surface update.

Jack Hodge, Vice-President, Emerald Downs updated the WHRC regarding the condition of the track surface. Mr. Hodge said a meeting to discuss the track surface, dispel rumors, update information and proposals on what to do had been held. He said the weather was a huge factor in the condition of the race track surface. The timing with this year’s rain, five inches or more than in past years when there was only one inch, completely soaked the track and left no time for the track to dry out.

Mr. Nick Peterson had been hired to evaluate the surface and he’s taken samples for evaluation and those results have not been received. Mr. Hodge said management was aware of many of the problems even before they were brought to their attention and management is about eighty percent sure of what to do to alleviate them. He said the committee will meet one more time to discuss solutions.

c. Washington bred races 2007 season.

Mr. Hodge addressed the Washington bred races conducted at Emerald Downs 2007 race meet. Mr. Hodge said the number of Washington bred advertised races were 134; the number of races filled by Washington bred horses was 29; the number of races filled by Washington bred horses not advertised was 14; and the number of races filled non-Washington breds, 40. Washington bred horses won 402 races of the 827 races offered and they were in the money payout 27.4 percent during the 2007 meet.

d. Request for handicapping contest.

Ms. Sourwine presented the rules for the handicapping contest to be held on December 8, 2007, there will be a maximum of 100 participants, each will pay $40 entrance fee.

Mr. Leichner said staff had reviewed the contest rules for compliance with WHRC rules and recommended approval.

Commissioner Kruger moved to approve the handicapping contest. Commissioner George seconded the motion. Unanimously approved.

Item #4. Hearings:

a. Gary Lonctot.

Chairperson Smith-Merkulov opened the hearing and introduced those present. Michael S. Tribble, Assistant Attorney General, representing staff. Dana Ryan, attorney at law representing Gary Lonctot. Mr. Ryan introduced five exhibits and they were admitted. Mr. Tribble introduced two exhibits and they were admitted. Testimony was taken from Gary Lonctot. After considering the testimony the WHRC rendered a tie vote and Mr. Lonctot’s request for reconsideration was denied.

Item #5. Washington-Bred owner’s bonus and breeder’s award distribution update.

Chairperson Smith-Merkulov thanked the WHRC staff for all the hard work in getting the awards and bonuses out in such a timely manner.

Mr. Leichner had received a letter from Mr. Vacca and Mr. Vacca’s issue concerned the breeder award checks were distributed without a breakdown of what the funds constituted. Mr. Leichner said it was the intention of the WHRC to calculate the breeder awards in three ways, by tracking the data in conjunction with the WHRC auditor, Ms. Debbie Hopkins and Ms. Amanda Benton and Emerald Downs’ in-compass ???? reports. The WHRC intended to have the checks distributed within fifteen calendar days after the close of the meet, but due to last minute problems we were unable to meet that time frame. The owner’s awards were mailed on October 17, 2007 and the breeder’s awards were mailed on October 19, 2007. The total distribution of owner bonus checks mailed was approximately 400 and approximately 263 breeders’ award checks were mailed. Mr. Leichner stated that in an effort to save staff time, it was decided to not have the owners checks returned to the WHRC office to insert breakdown sheets with each check. Mr. Leichner asked the HBPA and, after that conversation, decided to not post the names and amounts on the WHRC webpage.

Mr. Vacca asked why it was not possible to have the breakdown go out with the check. Mr. Leichner said the automated process allows only one item to be inserted with a check and that item must be the same item for each check. Since each owner or breeder would have to be a different account listing, the decision, in an effort to save staff time and to mail the checks out to the recipients as soon as possible, was to mail the checks without the breakdown.

Dana Halvorson also asked why they could not include the breakdown with each check.

Mr. Crockett said in the future, his suggestion would be to include a breakdown with each individual check and not post them on the website.

Item #6. Class C jockey incentive fund update.

Mr. Leichner said all the participants had received their incentive checks except for five persons and they have been sent an additional letter notifying them of their incentive check and request them to complete the W-9 form.

Item #7. Executive secretary’s report.

a. Accountant’s recap October 2006/2007.

Mr. Leichner explained the comparative statements for Emerald Downs race season 2006 vs. 2007 and the year-to-date wagering.

b. Annual review of source market fee (SMF) distribution.

Mr. Leichner said WAC 260-49-070(3) requires the WHRC to review annually the distribution of the source market fee and changes if any to the distribution be adopted by rule. Staff recommended no changes to the rule.

Susie Sourwine requested Mr. Leichner change the title of the report “Annual Review of Source Market Fee (WAC 260-49-070(3))” to “Annual Review of WAC 260-49-070(3).” Mr. Leichner said he would.

c. Steward’s Emerald Downs end of meet report.

Mr. Doug Moore, Presiding Steward gave the end of meet report for the 2007 Emerald Downs meet. He commended Bret Anderson, Emerald Downs Racing Secretary, for an excellent job. He also commended Debbie Hopkins for stepping up and completing new duties added this year.

Mr. Moore reported a very good meet this year, the facilities as always were well kept, even though the jockey colony was short, Emerald had good riders. Mr. Moore reported overall the meet went very well.

Mr. Crockett said the staff had done very good job handling inquiries this year and thanked them.

Mr. Leichner said a copy of the report would be mailed to Mr. Crockett and Mr. Hodge.

d. 2007-2009 Budget update.

Mr. Leichner explained the revenues and expenditures for the WHRC.

e. U of A, Race Track Industry Program Symposium, December 3-6, 2007.

Mr. Leichner said he had received the announcement for the Race Track Industry Program Symposium to be held December 3-6, 2007 in Tucson, Arizona.

Chairperson Smith-Merkulov said due to the budget, there would not be anyone from the WHRC attending this year, but if someone wished to attend they could on their own.

Commissioner George stated he felt it was important for the WHRC to be represented at the symposium.

Mary Ann O’Connell, HBPA, agreed this symposium was the better of all conferences offered and wished the WHRC could attend.

Item #8. Any other business that may be properly brought before the Commission.

Mr. Leichner announced the December 13th meeting would be held at Emerald Downs, on the third floor, since the WHRC had been notified that the Auburn City Council Chambers is unavailable for the meeting. Other locations were checked and were unavailable.

Mr. Crockett offered to host the WHRC anytime the Council Chambers became unavailable. The offer was accepted.

Meeting adjourned.

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Robert M. Leichner, Executive Secretary