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2004-08-31 . . . CITY OF EN CINIT AS ENCINITAS RANCH GOLF AUTHORITY MINUTES OF SPECIAL MEETING Lilac Room, Civic Center 505 South Vulcan Avenue TUESDAY, AUGUST 31, 2004 at 4:00 p.m. CALL TO ORDER/ROLL CALL Chainnan Kaiser called the meeting to order at 4: 10 p.m. DIRECTORS PRESENT: Edward Kaiser, Cindy Jacob, Phil Cotton, and Peter Cota-Robles DIRECTOR ABSENT: Kerry Miller ALSO PRESENT: John McNair, Rod Linville and Kent Graff of JC Resorts; Staff members Leslie Browder and Nancy Sullivan; and Board Secretary Pat Drew. ORAL COMMUNICATION [3 minutes for each speaker. Maximum 15 minutes for oral communication.] None. AGENDIZED BUSINESS ITEMS 1. Approve Minutes of Regular Meeting of June 22,2004. Director Cotton moved approval of the minutes of the June 22, 2004 regular meeting, seconded by Director Cota-Robles. Approved 4-0-1 (Miller) 2. Review Summaries of June and July, 2004 Revenues and ExpenditureslFinancial Statement/update on Capital Reserves. (Rod Linville/John McNair) Mr. Linville reviewed the summaries ofthe June and July financial statements. For the year-end report of June 30, 2004, revenues were $445,900 compared to a budget of $450,406 or 99% of budget; Expenditures were $270,656 compared to a budget of $287,228 or 94% of budget; Net income was $175,244 compared to a budget of $162,144 1 . . . or 108% of budget; and Total Rounds were 6,857 compared to a budget of 6,977 or 98% of budget. Year end income was $1,663,784 compared to a budget of $1,425,595 or 117% of budget; Total rounds for the year were 71,536 compared to a budget of71,500 or 100% of budget. Capital Reserves at June 30, 2004 were $126,785.98. For the month ending July 31, 2004, revenues were $501,284 compared to a budget of $547,038 or 92% of budget; Expenditures were $257,503 compared to a budget of $291,964 or 88% of budget; Net Income was $243,282 compared to a budget of $254,041 or 96% of budget; Total Rounds were 7,475 compared to a budget of 7,868 or 95% of budget. Capital Reserve account balance at July 31,2004 was $60,537.29 after a payment of $9,000 to the architect of the new club house. Mr. McNair and Mr. Linville agreed that there appeared to be an error in the numbers and will have it checked. The regular accountant has been out on medical leave. Mr. McNair said there was an additional error in the report. This year the Board had talked about reserving 1 % for long tenn improvements so that when a rainy day comes they have protection. He said he would like to have that item on the schedule so it can be tracked. He will also have the club house expenses listed so they can be tracked. Mr. McNair presented a list of Capital Expenses for 2004-2005 as reviewed at the last meeting. Projected total Capital Expense of $207,500 with total Capital Expense vs. Account Variance of$63,619 at June 30, 2005. 3. John Nabors Proposal for ERGA Clubhouse Expansion. (John McNair) Mr. McNair said that after talking with the City and the architect he would highly recommend hiring John Nabors to help with the process. Estimated total is approximately $18,000. The whole process will probably take about two years. Chainnan Kaiser said that from his experience with John Nabors and his connections to the City and the work outlined, he would fully endorse the contract with John Nabors. Directors Cotton and Jacob agreed. Director Cota-Robles moved that the Board accept the contract with John Nabors to manage the processing of the modification of the use permit for the pro shop/club house, and authorize the Chairman to sign the Letter of Agreement, seconded by Director Cotton. Approved 4-0-1 (Miller) 2 . . . 7. 4. Report on Tree Enhancement/ !Markers (Subcommittee) Chainnan Kaiser and Director Cotton agreed that the golf course has never looked better and complimented Kent Graff on his work. Mr. Graff gave a brief status report. He advised that they have completed the planting along Quail Gardens. The only thing they still have to do is to mulch everything. They are in the process of finishing up the planting along number two tee and will be going ahead to complete the planting around the restrooms area. They will also be looking at doing something around the maintenance building to screen the area. He said that with the development of homes along hole numbers six and seven there will be an interest in doing some planting etc. there. 5. Clubhouse Improvements. (John McNair) Mr. McNair distributed updated copies of the drawings for the clubhouse improvements as had been discussed previously by the Board. The conceptual drawings will be taken to the City's Planning Department for review before requesting architect's final plans. Mr. McNair reported that he had finally got a check from the insurance company of the crane company for the curb damage in connection with the restrooms installation. 6. Update on Cell Towers. (John McNair) Mr. McNair reported that Nextel still has a strong interest in putting their tower on top of the maintenance barn and their unit down by Sprint; they are just very slow in doing anything. They did not have an interest in re-doing the parking lot lights. Mr. McNair said he will keep gently pushing them for the lights. Mr. Linville suggested that if they didn't want to contribute for the lights, maybe they would be interested in supplying cell phones for the staff Mr. McNair will run some numbers on it and will work on the idea, it may be a better deal. He said he will get some estimates for the next meeting to raise and repair the damaged parking lot lights. Regarding Sprint, Mr. McNair said he was hoping to have a check for $437,500 for the transaction between ERGA and Unison Site Management. The Unison agreement has been negotiated and the Letter of Intent has been executed that references a purchase price of $437,500. A Title Commitment has been ordered and is expected to be received by Unison in the next week or two. Once Unison receives the Title Commitment final documents will be drafted and a document signing will be scheduled. It is anticipated that this transaction will be completed and funded in the next two to three weeks. Incidents and Accidents. (Rod Linville) Mr. Linville reported that they had an incident where a foursome of seniors were playing at hole 16 and one of them hit a member of his party in the right temple with a ball. They had not heard how he was doing as of the board meeting time. 3 . . . 10. Arlother incident occurred at night at the bridge from hole 13 to 14 where someone dropped water balloons on a car below and shattered the driver's windshield. He did call the Sheriff s department. He asked if the golf course could fence the bridge higher to stop kids throwing things off it and that the bridge be lit at night so that motorists could see people on the bridge who might be throwing things. A man and his wife who live on Swallow Tail reported about balls being hit from the 15th tee box across the canyon into his yard and his car being dented by a golf ball. Now he had a shattered windshield and wanted the golf course to reimburse him. They asked that action be taken to put bushes or trees behind 15 to prevent a long shot being hit from that area. He said his neighbor has removed golf balls from his swimming pool. Mr. Linville said that he believes they should look at doing some screening behind the tee box to at least prevent low trajectory balls from going down the hill into the yards. He said his recommendation was to reimburse them for the windshield and to be proactive in doing something behind number 15 tee box. Chainnan Kaiser said Mr. Linville should go ahead and pay the man for his windshield and tell him that he is looking for ways to prevent it from happening again. Director Cotton agreed and said they should work on a solution. 8. Potential Course EnhancementslDirection Concerning Course Operations. Director Jacob asked how tournaments had been going. Mr. Linville responded that they had lost a couple of big tournaments due to a lack of indoor banquet facilities. Mr. McNair said that he wanted to be sure they were doing what the Board wanted relative to tournaments. He said they have them and promote them but don't make the hard push as they do at Twin Oaks. Chainnan Kaiser said that they should definitely have all the local tournaments. 9. Directors and/or Manager Reports [For reported topics not described on this agenda, State law prohibits Board discussion, responses, and action. A Boardmember may ask questions, but only to clarify what the speaker is reporting.] Director Cota-Robles said he had a report concerning the golf cart crossing on Paseo de Las Flores. He said they had decided to do some speed surveys to detennine the impact of the new speed table and compare it with data they had before the crossing was installed. He said it appears that the speed had dropped off approximately 5 mph to 30.75. Next Meeting - Tuesday, September 28, 2004 at 4:00 p.m. By unanimous consent the meeting date was changed to October 12 at 4:00 p.m. This would combine the September and October meetings. 4 . . . 11. Adjournment Chainnan Kaiser adjourned the meeting at 5:30 p.m. Respectfully submitted, )< /[ - I, Patricia Drew, Board Secretary - Edward O. Kaiser, Chainnan ofthe Board 5