Commission Meeting for 10/18/2012
 


Time, Date and Place:

The 175th meeting of the Idaho Lottery Commission took place on Thursday, October 18, 2012 at 10:00 AM at 1199 Shoreline Lane, Boise, Idaho 83702.

Attendees:

Commissioners Present: Chairman, Roger Jones

Commissioner, Craig Corbett

Commissioner, Jim Rehder

Commissioners Not Present:

Commissioner, Mel Fisher

Commissioners Present Via Telephone:

Commissioner, David Keyes

Lottery Staff Present:

Executive Director, Jeffrey Anderson

Chief Operating Officer, Becky Schroeder

Deputy Director of Security, Amber French

Deputy Director of Sales, Mike Helppie

Deputy Director of Marketing, Sherie MoodySt. Clair

Management Assistant, Jennifer QuinnoMiller

Chief Financial Officer, Jay Prickett

Public Information Specialist, David Workman

Lottery Sales Representative, Jill HamperleFrank

Lottery Detective, Ryan Hanks

Others Present:

Edward Moore, DaviesMoore

Carolyn Lodge, DaviesMoore

Isaac Squires, DaviesMoore

Michael Romans, CLM

Jamie Cooper, Drake Cooper

Sara Chase, Drake Cooper

Tim Davis, Deputy Attorney General

Scot Phillips, Eide Bailly

1. Meeting Called to Order

Meeting called to order by Chairman Jones at 10:00 AM.

2. Approval of the Minutes

Commissioner Rehder moved to approve the minutes from the July 24, 2012 meeting. Commissioner Corbett seconded the motion. The vote was unanimous for approval.

Commissioner Rehder moved to approve the minutes from the August 9, 2012 meeting. Commissioner Corbett seconded the motion. The vote was unanimous for approval.

3. Financial Statement Review

Chief Operating Officer, Becky Schroeder, introduced Scott Phillips with Eide Bailly who presented the financial statements and audit review to the Commission.

Scott indicated that the audit was clean and went well and there really wasn’t anything to report at this time. He reported that the financial statements looked good and the Lottery was given a “clean bill of health”.

Scott then walked the Commission through the report, pointing out areas of importance or interest.

Commissioner Corbett moved to approve the Financial Statements. Commissioner Rehder seconded the motion. The vote was unanimous for approval.

4. Advertising Contract Proposal Recommendation and Approval

Director Anderson explained that the Lottery’s advertising contract expires this year and that we went out to bid and issued an RFP for advertising agency contracts to fill three separate roles: Strategic Planning, Creative Services, and Media Services.

We had a wide variety of responses and bidders. Each was scored individually by a screening team comprised of three Lottery officials and two outside professionals. The top three respondents in each category were invited in to make an oral presentation. The price components were sealed and were not opened until after the initial screening and oral presentations for the final three in each category. Then the pricing component was added to the scoring total.

The recommendation from the screening team, accepted by Director Anderson and proposed to the Commission is to award the Strategic Planning Services and the Creative Services components to Drake Cooper and to award Media Services to CLM.

Commissioner Rehder moved to approve the recommendation of the Director to award Strategic Services and Creative Services to Drake Cooper and Media Services to CLM. Commissioner Corbett seconded the motion. The vote was unanimous for approval.

5. Director Update

Director Anderson updated the Commission on some changes coming to some of the MUSL games. The Wild Card game will now have a different matrix making the odds a little higher, but the jackpot will now start at $200,000 instead of $100,000. The Hot Lotto game will have one more participating state, totaling 12 as well as longer jackpot odds and a cashonly jackpot option as opposed to an annuity. Beginning in May the advertised jackpot will be the amount of cash players will actually win, with taxes being paid by the Lottery.

California is planning to join Powerball in April, at which time every state that has a lottery will be playing the game.

We are looking at a GeoSweep game called Treasure Hunt which will be a second chance opportunity for an internet prize reveal for the Powerball game. The MUSL group is paying to map the entire United States. Each time the jackpot resets, the Geo’s will be seeded with new prizes. Because the state of Idaho will already be mapped, if at some time in the future we decide to partner with GeoSweep, we will be ready to go.

The Mega Millions game will also become a true “national game” with the upcoming addition of Florida.

Director Anderson updated the Commission on the Warehouse RFP that has been issued. Chief Operating Officer Schroeder added that the Warehouse is not a major procurement, rather an ongoing lease which the Division of Public Works (DPW) handles for us. The current lease expires in June with options to extend for a period of two years, however, DPW thinks it’s a good idea to go out to bid.

She also updated the Commission on the RFP for the Scratch contract. She reminded the Commission that in August they gave permission to extend the current contract for six months as it was expiring at the end of August. This extended the current contract with Scientific Games to February 2013. During this time the Management Team met and through an STP process using Strategic Planning tools and we determined that going out to bid for a Scratch contract was our best option. We are requesting permission from the Commission to issue an RFP where we will seek a nonexclusive contract for Scratch ticket printing, lower fees and costs overall, and the inclusion of extras and some other things. We are also asking respondents to include all other offerings they have in a request for information included in the RFP.

Commissioner Rehder moved to approve the request to issue an RFP for a Scratch contract. Commissioner Corbett seconded the motion. The motion was unanimous for approval.

Director Anderson updated the Commission on current proposed legislation. Five pieces of the current proposed legislation have been approved to move on, which includes: online terminal instant ticket game, broaden the ability to join other jurisdictional games, debit card fee rule, tax setoff rule, and some of the OPE recommended changes. The Governor’s office and DFM did redlight two of the proposed items: OPE’s recommendation to specifically define what goes in to the advertising budget and the Honorarium increase for Commissioners.

6. Quarterly and Current Sales Report

The sales report is entered into the minutes as an attachment.

7. Sales Division Update

Deputy Director Helppie reported on the Sales Department. They are working on finishing up the Liquor Store installs and training to get them all up and selling Lottery.

He reviewed outstanding and increased sales in each division by each different rep. Jill HamperleFrank was named the Sales Rep of the Quarter and recognized by the Commission.

8. Marketing Division Update

Deputy Director Sherie MoodySt. Clair updated the Commission on what is happening in the Marketing Division.

Raffle season is starting with the launch of Raffle on October 31, 2012 with some presale promotions kicking it off.

We are shifting our media campaigns this year to include Raffle and Holiday all the way through until Christmas.

Holiday Scratch Games are out and we are promoting the holiday brand as “Holiday Cheer” for this season.

9. Security Division Update

Deputy Director French introduced Detective Ryan Hanks who reported on an undercover retailer compliance/insider win project he had been working on. Detective Hanks showed the Commissioners a couple of videos from the field and reported that all retailers passed the test and Security had 100% compliance with retailers all doing the right thing relating to big winners.

10. Set Future Commission Meeting Date

The next Commission meeting has been tentatively set for January 24, 2012.

11. Executive Session

Pursuant to Idaho Code 6723451 (f) Commissioner Corbett moved to enter in to Executive Session. Commissioner Rehder seconded the motion. The vote was unanimous to move into Executive Session.

Commissioner Corbett moved to come out of Executive Session, seconded by Commissioner Rehder. The vote was unanimous to move out of Executive Session.

12. Adjournment

Commissioner Corbett moved to adjourn, seconded by Commissioner Rehder. The vote was unanimous to adjourn.

Certification:

I hereby certify that the foregoing minutes are a true and correct record of the actions and decisions made by the Lottery Commission.

Jeffrey R. Anderson, Executive Director

Lottery Commission Secretary