2003 Cal-bred News

HIGHLIGHTS OF THE CTBA BOARD OF DIRECTORS
SEPTEMBER 19, 2003

The meeting was called to order at 9:40 am. The president, Daniel Schiffer conducted the meeting and announced that a quorum was present:

Minutes of the meeting of August 12 were approved.

President’s Report:

President Dan Schiffer deferred giving a report; instead he introduced John Unick of the insurance agency, MOC Insurance Services, Inc. The agency is working with AIG Insurance Company in providing a captive worker compensation insurance program at the tracks. Mr. Unick provided his background with the industry and outlined a plan of action to ascertain if employees at thoroughbred farms would fit into the industry program at the tracks. There is a presumption that widening the number of employees would be a benefit to the track program by sharing the risk. Before an actual proposal can be made, farms would have to supply recent year’s experience and representatives of AIG would have to visit a number of farms. It was suggested that Mr. Unick, contact the membership to ascertain their interest in joining the industry workers compensation program, if they were in fact allowed to join it.

General Manager’s Report:

The date and site of the next annual meeting was brought up for discussion. The board believed that the Sacramento area would be a fitting choice for the next meeting, tentatively set for the second Monday in February or a day during the preceding weekend. Directors whose terms are up need to inform Doug Burge of their interest to stand for re-election. The nominating committee will make their recommendations at the next board meeting.

Handle and related incentive revenues were reviewed year to date. Total incentive revenues are up nearly 1%, through early September.

The meeting of the preceding Wednesday of the Liaison Committee with the TOC and CTT was well attended and believed to be quite productive. The goals of the attending organizations are the same. Issues covered were: workers compensation, instant racing machines at tracks, racing and purses (including Cal Cup), owner and breeder seminars, an increase in claiming prices, and medication costs.

Treasurer’s Report:

John Barr, Treasurer, presented the financial statements for the month of August. Discussion of the financial results of the auction at Del Mar was deferred to the Sales Committee report.

Magazine Committee:

Trudy McCaffery stated that there are no new issues to consider at this time. The first CTT quarterly insert will appear in the October California Thoroughbred magazine.

Education Committee:

Leigh Ann Howard stated that the Harris Seminar would begin later in the day and she had heard of considerable enthusiasm for the farm manager panel. The panel had met the night before and the members were excited about their part in the upcoming event. The board was pleased that there were finally some farm managers coming to our educational event.

Leigh Ann Howard also said that the Stallion Tours had all been scheduled and the first one of the season will be in the Sacramento area on Saturday, October 18, 2003. She praised the work each year of member Bill Nichols in making that one tour very special. Bill started, several years back, having raffles of stallion seasons at each farm which has proven to be very popular.

Racing Committee:

John Barr stated that November 7 has been scheduled for the annual meeting with the Racing Secretaries, TOC, and CTT. Agenda items for this meeting will include the coordination of the 2004 Cal-bred Stakes schedule, as well as a discussion on various racing issues.

Cal Cup Committee:

Keith Card reported that the early bird nominations were up 20% for this year’s Cal Cup Day, to be held on November 8, 2003. The theme is California Heroes. Dodge has joined as a new sponsor for the 2003 day.

The Committee intends to further discuss an increase in purses for Cal Cup Day 2004.

Legislation Committee:

John Harris announced that legislation was passed to enable certain out of state races, such as the Sunshine Millions, to qualify for breeder and stallion awards. We are now waiting for action on this legislation, by the Governor, who is expected to sign it. He also stated that SB2 that requires employers to pay for employee medical care had passed; this requirement will be effected in two phases: one in 2005 for employers with 200 or more employees and the other in 2006 for employers with 20 or more employees.

The bill (AB 900) to increase the takeout on exotic wagers by ½% to supplement workers compensation costs was not heard prior to the deadline and will thus be considered in January. The industry will be considering the best strategy and final language for it in the interim.

SB 2, a bill that would mandate employers either pay into a fund or provide health insurance for employees and dependents, passed out of the legislature in the final hours, but has not as yet been signed by the Governor. Concern was expressed that it was another job killer bill that would make California less business friendly than it already was. Harris was somewhat hopeful that the bill might be vetoed.

There was as discussion of the heightened political involvement by the Native American gaming interests and their large clout in state politics.

Membership Committee:

Pat Hurley stated that a letter was due out soon to attract new members.

Horse Welfare Committee:

There are no new issues to discuss at this time.

Sales Committee:

Scoop Vessels went over factors that the Committee believed contributed to the lowering of the sale average this year. The primary factors are the increase in costs associated with horse ownership, concerns that the yearling crop, both physically and on paper, was not as good as prior years, and that there was an overall smaller pool of buyers at the sale. The internal procedures of CTBA Sales in hosting the sale appeared to be sound. Additional discussion centered on the Mission of the sale.

Financial results of the August 2003 sale were reviewed. The results are very close to budget.

The meeting was adjourned at 12:30 PM