STATE OF OKLAHOMA OKLAHOMA LOTTERY COMMISSION OFFICIAL MINUTES December 2, 2014 Date The Oklahoma Lottery Commission, established pursuant to the provisions of the Oklahoma Education Lottery Act, Sections 701 et seq. of Title 3A of the Oklahoma Statutes, held its regularly scheduled meeting December 2, 2014 at 1:30 p.m. The Meeting was held in the Conference Room of the offices of the Oklahoma Lottery Commission at 3817 North Santa Fe Avenue, Oklahoma City, Oklahoma. In compliance with the Open Meetings Act, 25 O.S. § 301 et seq., the agenda for this meeting was posted at the main and side building entrances, in addition to the main internal office window of the Centennial Business Building at 3817 North Santa Fe Avenue, Oklahoma City, Oklahoma on December 1, 2014 at 9:00 a.m. and was mailed or hand delivered to the offices of the Board members on December 1, 2014 and was posted to the website on December 1, 2014. The agenda is attached as Exhibit A. AGENDA ITEM 1: CALL TO ORDER. Chairperson Blake Virgin called the meeting to order at 1:30 p.m. The roll of Board members was called to establish quorum. Board members present were: Blake Virgin; George R. Charlton, Jr.; R. Deane Wymer; David Ostrowe; Nevyle Cable; Charlotte Edwards. Board members absent were: James Orbison. Based on the result of the roll call, a quorum was declared present by the Chair. Others in attendance were: Rollo Redburn, Executive Director; Lyn Martin-Diehl, Assistant Attorney General; and Nikki Phipps, Board Assistant. Others present were: Jay Finks; Mary Martha Ford; Greg Fields; Jim Reazer; Bryan Colbert; John Hayes; Stephen Hicks; Claudine Herrera; Brandie Reisman; Caitlin McClure; Audra Eccles; Sylvette Olmeda; Scott Moulton; Ivan Joe; Kacey Roach; PJ Roberson; and Cynthia Santos. AGENDA ITEM 2: ANNOUNCEMENT OF FILING OF REGULAR MEETING NOTICE AND POSTING OF THE AGENDA IN ACCORDANCE WITH THE OPEN MEETINGS ACT. The Chair called upon Ms. Phipps to verify that proper public notice was made with regard to the December 2, 2014 regular meeting, in accordance with the Open Meetings Act. Ms. Phipps verified that all necessary steps had been taken to remain in compliance with the Act. AGENDA ITEM 3: READING AND APPROVAL OF MINUTES. (Exhibit B) Mr. Charlton moved that the reading of the minutes of the September 16, 2014 regular meeting be waived and approved as published and distributed. The motion was seconded by Mr. Cable. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Mr. Ostrowe Yes Mr. Wymer Yes Ms. Edwards Yes Mr. Cable Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SIX VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. AGENDA ITEM 4: EXECUTIVE DIRECTOR’S REPORT: Mr. Redburn gave an oral presentation regarding the Lottery in Motion System (LIMS); Commission activities; legislation; office space lease; lottery events; retailer compliance program; PowerBall game change; new employees; Responsible Gambling Annual Holiday Campaign; and Monopoly Millionaire’s Club. No action was taken. AGENDA ITEM 5: REPORT OF AUDIT & FINANCE COMMITTEE. Mr. Wymer offered an oral report regarding the Lottery Commission’s current financial standing. No action was taken. AGENDA ITEM 6: PRESENTATION OF SALES AND OPERATIONS INFORMATION. Mr. Finks gave an oral presentation regarding FY’2015 sales overview; instant games; jackpot games; PowerBall analysis; daily games; total sales; beneficiary contribution; FY’2015 focus and FY’2016 projections. No action was taken. AGENDA ITEM 7: DISCUSSION AND POSSIBLE ACTION REGARDING THE FY’2015 AND FY’2016 BUDGETS FOR THE OKLAHOMA LOTTERY COMMISSION. (Exhibit C) A motion was made by Mr. Cable and seconded by Mr. Ostrowe to approve the FY’2015 and FY’2016 projections, as presented. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Mr. Ostrowe Yes Mr. Wymer Yes Ms. Edwards Yes Mr. Cable Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SIX VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. AGENDA ITEM 8: DISCUSSION AND POSSIBLE ACTION REGARDING CONTRACT RENEWALS: (Exhibit D) a. A motion was made by Ms. Edwards and seconded by Mr. Wymer to approve the MDI Entertainment, LLC renewal contract as presented, appending that the amount not exceed $75,000 for the next contract year. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Mr. Ostrowe Yes Mr. Wymer Yes Ms. Edwards Yes Mr. Cable Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SIX VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. b. A motion was made by Mr. Cable and seconded by Mr. Charlton to approve the Alchemy3, LLC renewal contract as presented, appending that the amount not exceed $75,000. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Mr. Ostrowe Yes Mr. Wymer Yes Ms. Edwards Yes Mr. Cable Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SIX VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. c. A motion was made by Mr. Charlton and seconded by Ms. Edwards to approve a new effective date for the contract with 38th & Santa Fe Company to begin January 1, 2015. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Mr. Ostrowe Yes Mr. Wymer Yes Ms. Edwards Yes Mr. Cable Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SIX VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. AGENDA ITEM 9: DISCUSSION AND POSSIBLE ACTION ON APPOINTMENT BY CHAIR OF COMMITTEES AND CHAIRS OF COMMITTEES AND APPROVAL BY BOARD OF TRUSTEES. (Exhibit E) A motion was made by Ms. Edwards and seconded by Mr. Wymer to approve the committee nominations as presented. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Mr. Ostrowe Yes Mr. Wymer Yes Ms. Edwards Yes Mr. Cable Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SIX VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. AGENDA ITEM 10: DISCUSSION AND POSSIBLE ACTION REGARDING CALENDAR YEAR 2015 BOARD MEETING DATES AND FREQUENCY OF MEETINGS FOR THE LOTTERY COMMISSION BOARD OF TRUSTEES. A motion was made by Mr. Wymer and seconded by Mr. Cable to approve the dates of March 10, 2015; June 9, 2015; September 22, 2015; and December 8, 2015. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Mr. Ostrowe Yes Mr. Wymer Yes Ms. Edwards Yes Mr. Cable Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SIX VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. AGENDA ITEM 11: NEW BUSINESS. No new business. AGENDA ITEM 12: ADJOURNMENT. The Board adjourned by general consent. OFFICIAL MINUTES: The action taken by the Oklahoma Lottery Commission on the items for consideration after motion duly made and seconded has been noted herein and made a part of these minutes. The Board caused the entire proceeding of the meeting, excepting any executive sessions, to be recorded on a digital audio recording device to be retained as a record in the office of the Board. Exhibits are A through E. Minutes Approved by Board of Trustees on March 10, 2015. 2 | Page Lottery Commission Minutes December 2, 2014