Timothy Callan, the newest appointee to the Western Regional Off-Track Betting Corp. board, isn’t able to vote yet – he’s waiting for his license from the New York Gaming Commission – but that didn’t prevent him from questioning the other directors and WROTB President/Chief Executive Officer Henry Wojtaszek on several matters Thursday morning.
Callan, the Erie County Deputy County comptroller, is representing Erie County on the board after his appointment by Erie County Executive Mark Poloncarz. Callan’s boss, County Comptroller Kevin Hardwick, has been an outspoken critic of the public benefit company’s policies and practices.
He is replacing Jennifer Hibit, secretary of the Erie County Democratic Committee, who resigned due to a state law prohibiting “party officers” from serving on the WROTB board.
As Dennis Bassett (City of Rochester), who was elected unanimously today as the board chair for the remainder of his four-year term, led the meeting, Callan made his presence known, seeking answers about the corporation’s hiring practices, salary adjustments, branches, lobbying firms and insurance.
HIRING OF ASSISTANT GM FOOD/BEVERAGE
When Personnel Committee Chair Elliott Winter (Niagara County) introduced the establishment of a new position, assistant general manager for Food & Beverage, Callan sought information about WROTB’s hiring practices.
Wojtaszek said the new job is not a union position, adding that employees coming in at “Grade 6 or below are hired by me, after posting and after an interview usually with the department head, and the higher level positions are hired by the board.”
Callan said that the proposition of a new assistant general manager “prompted me to ask these general questions about who hires, interviews, makes decisions on personnel.”
Responding, Wojtaszek said that, in this case, he would be the one doing the hiring.
Callan then asked for a document showing the different positions in the corporation, with Chief Financial Officer Jacquelyne Leach pointing him to the operating plan for 2024. After that, Callan requested a copy of the WROTB organizational chart.
RAISES FOR EXECUTIVE OFFICERS
Next on Winter’s report were monthly salary adjustments for the corporation’s senior management team -- $1,250 for Wojtaszek, $1,041.67 for Leach, $625 each for VP/Administration William White and Chief Operating Officer Scott Kiedrowski and $416.67 for VP/Operations Sean Schiano.
Winter based the raises -- ranging from $15,000 per year for Wojtaszek to $5,000 per year for Schiano -- on “the success of the corporation in 2023.”
Callan asked what the salaries would be after the adjustments, with Wojtaszek answering, “we can get you those numbers.”
The Batavian received those numbers from Leach in an email this afternoon.
The increases, which were approved unanimously by the board, bump the salaries up as follows:
- Wojtaszek, $299,128
- Leach, $244,045
- Kiedrowski, $180,098
- White, $174,898
- Schiano, $142,072.
“These are considerable salary adjustments,” Callan noted.
Bassett responded, “They really aren’t,” and asked Director Jimmy Wilmot (Monroe County), who has experience in the gaming industry, to “talk big picture” about the competitive environment facing casinos such as Batavia Downs Gaming.
“I won’t get into the weeds about private businesses that I’ve participated in … but this industry in general is very nomadic; to keep people, you have to pay them,” Wilmot said.
Callan said he understood that, adding that “this is a governmental entity.”
“This is a government entity that is competing in a very competitive commercial environment,” Bassett offered. “And if we're going to -- as we talked in our committee meeting yesterday -- if we're going to keep leading-edge people that manage this business the way we would like them to manage it and lead the way we have led …”
He then cited 2023 statistics that indicate Batavia Downs Gaming increased by 11 percent in net win (the amount in the video lottery terminals after payouts), by 8.4 percent in attendance, by 14 percent in beverage and food sales and by 15 percent in hotel sales and suites.
“And we increased our distribution to municipalities which is key to me and most important to me; that was up over 9 percent,” he added. “This board felt that with those gains – and it doesn’t happen every year – and with the success this leadership had in 2023 … it was important to reward the leadership team.”
Callan then asked if each one of those officers had contracts (they do) and if the contracts provide for adjustments such as these and annual cost-of-living adjustments.
The answer he received was that there are no cost-of-living provisions in the contract and that the officers’ base compensation can be reviewed only by the board of directors.
“When was the last time that these five individuals had compensation adjustments?” Callan asked.
The board authorized contracts for each of these officers in May 2023, just prior to the reorganization of the board by the state government, and each of the five received substantial raises at that time as well.
LOOKING AT THE FUTURE OF OTB BRANCHES
Callan’s next topic was the status of WROTB’s eight branch locations, or what used to be called OTB parlors.
“It’s my impression or maybe more than an impression that the branch locations don't make a lot of money and, in many cases, are negative in the corporation’s financial statement,” he said. “The cost to operate the branches is more than the revenue coming in from the branches.”
Callan wanted to know if there is a plan in place pertaining to the branches, wondered out loud what happens to employees when branches are closed and asked whether there are plans to close more branches in 2024.
Bassett acknowledged that the branch operation side of the company is under scrutiny.
“We have been looking at the branches, and we have been closing branches that were not profitable,” he said. “And a number of employees in those branches have been retiring. And what I presented to the leadership team yesterday was a strategic plan.”
He said that part of the strategic plan is to “reinvent” the branches “because we do want WROTB out in the community and how we can work with those branches to better have them be a part of the overall look and feel of our organization.”
In previous meetings, Wojtaszek informed the board that management was taking a hard look at the branches, and he reiterated that at Thursday’s meeting.
“The answer is that we will be looking at the branches very shortly -- within the next couple of months,” he said. “We haven't made any decisions. We talked about previously meeting with the branches and the employees ahead of time, and that is what we intend to do before we make any decisions.”
Leach said that seven of the eight branches were not profitable in 2022 but did point out that revenue from branch activity does contribute to the surcharge distributed to the 17 member municipalities.
Further discussion of the branches, initiated by Callan, focused on whether the corporation owned or leased the buildings and how sales of those buildings are recorded.
QUESTIONING ROLES OF WROTB LOBBYISTS
Three resolutions before the board spelled out six-month extensions with three Albany-based lobbying firms – Bolton-St. Johns at $8,500 per month, Upstate Strategic Advisors at $3,500 per month, and Mercury Public Affairs at $8,000 per month.
On this subject, Callan asked whether the corporation was getting its money’s worth and whether there were metrics in place to gauge its effectiveness.
“Generally speaking, what are the lobbyists doing? Are they lobbying state legislators? Are they lobbying the governor’s office? Are they interacting with the Gaming Commission? Are they interacting with local governments?” he said.
“All of the above,” Wojtaszek said.
Continuing, “We discussed some topics and, as you said earlier, are not appropriate to discuss in a public forum. We have certain items that we're going to ask them to look at, and we certainly will share that with you in another setting.”
Bassett said the board desires to put metrics in place to be able to evaluate the success of the lobbyists.
“We want to … have a level of specificity around those individuals that we’re hiring and the results they provide to this board.”
All three resolutions passed without a “no” vote.
SEEKING COMPETITIVE BIDDING FOR INSURANCE
Directors passed a resolution to contract with Travelers Insurance Co. through Dec. 10, 2024, for property insurance for the Hotel at Batavia Downs. The premium is set at $59,261.
With that, Callan asked about the process of contracting with insurance companies.
Wojtaszek said management is reviewing proposals for Batavia Downs Gaming, with the intention of using a competitive bidding process. Garland Insurance of Phoenix, Ariz., has provided insurance for the facility since 2016.
