HIGHLIGHTS OF THE MEETING
OF THE CTBA BOARD OF DIRECTORS
JULY 10, 2002
ARCADIA, CALIFORNIA

The meeting was called to order at 10:05 am. The president announced that a quorum was present.

1. Approval of Minutes. The minutes from May 15, 2002 meeting were approved.

2. President's Discussion. Workmen's Comp situation. The CTBA board is very concerned with the current worker's compensation crisis in California. The board invited Gene Davis an insurance agent representing Weaver and Associates to discuss worker's compensation insurance, both at the racetrack and farm level. Mr. Davis gave some insight into the past, present and future of the worker's comp situation. It was Mr. Davis' opinion that the stock farm rates will increase, but at a moderate percentage.

3. General Manager Report. Vote on TOBA Breeder of the Year. Breeders, Carl & Olivia Cannata were nominated and the motion was unanimously carried. The Cannata's bred horses that started in 257 races in 2001 with 36 wins, including 3 by Eclipse Award winning Gourmet Girl.

Eddie Gregson Award, which is awarded annually for the top Del Mar sales grad of two years prior. John Barr nominated "Officer", Dan Schiffer seconded. Choice was unanimous. 

Mr. Burge updated the board on the Mr. Walter Thomson land donation in Santa Ynez to be used as a thoroughbred retirement facility. Mr. Burge and directors of the California Thoroughbred Foundation will meet with Mr. Thomson July 21 to discuss further. The chief concern is the funding of such a facility.

4. Treasurer's Report. John Barr reported that through May, the association is operating ahead of budget.

Mr. Barr reported that the audit committee met with PricewaterhouseCoopers,LLC to review the 2001 financial statements. The auditors and CTBA board were very pleased with the results from last year. Mr. Barr praised Jim Murphy and staff for a job well done.

5. Sales Committee Report. Scoop Vessels reported that the Del Mar Sale catalogs had been mailed to members, consignors, and potential buyers. The quality of the catalog continues to improve. Mr. Vessels and Mr. Burge reviewed the advertising for the sale as well as the Internet broadcast and online bidding planned for the upcoming sale. CTBA will work with Equine Spectrum to allow the Internet bidding. Also improvements to the sale site include permanent rest rooms, painted barns, and new concession stand. 

6. Racing Report. Mr. Burge updated the board on the prospects of the Sunshine Millions. Discussions are ongoing and the CTBA is hopeful that the Inaugural runnings of the event will take place January of 2003 at both Gulfstream Park and Santa Anita.

7. Cal Cup Report. John Barr reported that ticket prices for Cal Cup XIII would increase $5.00 to $70.00 each. The price increase is due to higher costs of food services. There were additional discussions on the giveaway item, table decorations and other particulars regarding the event.

8. Legislation Report. Chairman John Harris. Discussed various legislation that is still in process in the state capitol. Bills of interest include 1. SB 1376, which mandates that agriculture employers be subject to binding arbitration that could force them into a non-negotiated labor contract. CTBA opposes this bill. 2. SB 1465 the CTBA sponsored bill that would allow more flexibility in the allocation of race fund and stakes dollars, and 3. AB 2931 the bill that somewhat addresses the workers comp issue by allowing marketing funds to subsidize workers comp expenses. The details of the mechanism to be used to do this are not as yet defined, which is of concern. Mr. Harris also reported that Account Wagering is currently accounting for about 5% of total handle, and while it is too early to be sure, it appears that cannibalization of existing handle is not a serious issue.

9. Web Site and Internet Report. Ken Gurnick reported traffic was up 30 - 40%. Traffic on Del Mar Yearling Sales Section is up 40% from 2001. Mr. Gurnick contributed the increase to the newsletter and its links. The site is assisting with marketing the sale, by posting yearling photos, catalog pages, and articles on sires and horses in the sale.

10. Magazine Report. Rudi Groothedde announced that California Thoroughbred received two awards at the recent American Horse Publication award banquet in June. This was the third consecutive year the magazine won a 1st place honor and the publication also received an honorable mention in the general excellence category. The magazine has received a number of complimenting letters especially for the CTBA member profiles. Mr. Groothedde confirmed that the publication continues to be the highest quality possible both on time and on budget. The latest issue included the 2nd edition of the pull out Del Mar sale supplement which is a great feature.

The August meeting will held on August 13th at the Del Mar Horse Park.
The meeting was adjourned at 1:30 pm.