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2004-05-27 . . . CITY OF ENCINIT AS ENCINITAS RANCH GOLF AUTHORITY MINUTES OF REGULAR MEETING Lilac Room, Civic Center 505 South Vulcan Avenue THURSDAY, May 27, 2004 at 4:00 p.m. CALL TO ORDER/ROLL CALL Chainnan Kaiser called the meeting to order at 4: 07 p,m. DIRECTORS PRESENT: Edward Kaiser, Philip Cotton, Peter Cota-Robles and Kerry Miller. DIRECTOR ABSENT: Cindy Jacob ALSO PRESENT: John McNair, Rod Linville and Kent Graff, JC Resorts; Leslie Browder and Nancy Sullivan, Staff; Pat Drew, Board Secretary. ORAL COMMUNICATION [3 minutes for each speaker. Maximum 15 minutes for oral communication.] None. AGENDIZED BUSINESS ITEMS 1. Approve Minutes of Regular Meeting of April 22, 2004, Chainnan Kaiser pointed out an error on page three, second to last line in item 6; "buyout" should read "sell." Director Cotton moved approval of the minutes with the correction noted, seconded by Director Cota-Robles. Approved 4-1 (Jacob) 2. Review Summary of April 2004 Revenues and ExpenditureslFinancial Statement/update on Capital Reserves, (Rod Linville/John McNair) Mr. Linville reviewed the April financial statement. . . . Revenues for the month of April were $430,328 compared to a budget of$398,985 or 108% of budget; Expenditures were $260,618 compared to a budget of $260,000 or 100% of budget; Net Income was $169,041 compared to a budget of $137,951 or 123% of budget; Total rounds were 6,534 compared to a budget of6,123 or 107% of budget. Year to date Net Income was $1,355,671 compared to a budget of $1,139,399 or 119% of budget; Total Rounds were 58,382 compared to a budget of58,371 or 100% of budget. Capital Expense for year to date was $95,500; projected capital Reserve through June 30, 2004 is $130,652 with a Capital Expense vs, Account Variance of$35,152. Mr, McNair also distributed a list of Capital Projects together with a list of Deferred Maintenance/Replacement Projects for years 2003-2004 through 2020-2025. 3. Review and Approve Proposed FlY 2004-2005 Budget. (John McNairlRod Linville) Mr, Linville distributed copies of the budget proposals: 1) a complete budget with $0 increase; 2) with a $2 increase across the board; 3) with a $2 increase for Residents and $3 for everyone else. Ms, Sullivan explained a Golf Course Revenue Flow chart that she had prepared in ciOnnection with the CFD bond payments, the Five- Year Look Back numbers, and the Carltas repayment of Sales Tax Advance to the City. Director Miller said that it appeared that anyone of the scenarios is fiscally positive, so the question is, do we want to make some kind of incremental increase in the fees to basically maintain the cost of doing business ability so we are not coming back in anyone year and hitting the players with huge greens fees. Mr. McNair recommended that the Board increase the Capital Reserves by 1 % (to 4%) to keep as a kitty for major projects in the future. Ms, Sullivan pointed out that the Development Agreement states that the Capital Reserve can be up to 4%, Director Cota-Robles said that as a home owner in the golf course Ranch properties, he felt he may have a conflict of interest relative to the Look-Back and CFD payments, and agreed to abstain from the vote on the budget. Given the discussion, Director Miller said he felt that probably a $2 increase across the board is appropriate for this year, or even a $3 for general and $2 for residents, Chairman Kaiser moved that the rate increase be $2 for residents and $3 for non- residents, seconded by Director Cotton. Approved 3-1-1 (Cota-Robles abstained and Jacob absent). 2 . . . 7. Effective July 1 new rates will be: Residents Non-Residents JC Weekends Fridays Week Days $64 w/cart $55 w/cart $49 w/cart $91 wlcart $76 w/cart $71 w/cart $66 w/cart $57 w/cart $51 w/cart Juniors No change 4. Report on Tree Enhancement/!Markers (Subcommittee) Nothing to report. 5. Clubhouse Improvements. (John McNair) Mr. Linville said he had put the proposed improvements for an additional 3500 sq.ft. out to bid to four companies and hopes to have some ball-park figures by the next meeting as to what it will take for the addition, He has contacted several local companies about installing a fire sprinkler suppression system throughout the building once the add-ons are in place, It will have to have its own water line which they can tap into a City water line at the fire hydrant at the Starters Booth. They will have to run piping about 100 feet both above and below ground, and for that alone it will cost approximately $15,000, The total cost will be anywhere from $35,000 to $50,000 to install a sprinkler system. Mr. McNair handed out a list of FF&E requirements together with costs. Total Food and Beverage Equipment costs estimated at $35,771; total fixtures $12,600; furniture $18,560; transfer/construction costs $2,500; Grand total of $69,431.00. The Board was unanimous that a grill should be included in the equipment list. Mr. McNair said he will talk to the architect and ask for an official set of blue prints for the next Board meeting. 6. Update on Cell Towers, (John McNair) Mr. McNair said he has had another offer from a cell tower company the income from which could help pay for the extras for the clubhouse improvements, such as the sprinkler system, He should get something locked in by the next board meeting. Nextel did not think putting their tower on the range pole is going to work for them, Incidents and Accidents. (Rod Linville) 3 . . . Respectfully submitted, ); - IL«(:('~.._J, !("L:C", ~ "-' "'- v~ Patricia Drew, Board Secretary 8. 9. 10. 11. Mr. Linville reported a couple of incidents for the month: a stolen vehicle and an attempted break-in, The stolen vehicle was recovered in EI Centro and had been used by a Mexican Coyote for smuggling. In addition, had graffiti painted on the retaining wall right before crossing the Quail Gardens Bridge from holes 13 to 14, The Board discussed the possibility of putting a sign up saying "This facility under camera surveillance" in connection with stolen vehicles and break-ins. Director Cotton said that they might want to consider enlisting the help of COPS, He said he meets with the COPS Unit once a month and could ask for their help in patrolling the golf course parking lot. Potential Course Enhancements/Direction Concerning Course Operations. Mr. Linville advised that he had met with the PGA for Southern California and they told him they probably won't be asking to use the course for the qualifying rounds for the Buick Open. An inside source told him that they felt the course was too easy. 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 reported that construction on the golf cart crossing is supposed to start Tuesday, June 1 st. Next Meeting - Thursday, June 24, 2004 at 4:00 p,m. Director Cotton moved that the meeting date be changed to the fourth Tuesday of each month at 4:00 P.M., seconded by Chairman Kaiser. Approved 4-1 (Jacob) Next meeting will be Tuesday, June 22, 2004 at 4:00 p.m. Adjournment Chainnan Kaiser adjourned the meeting at 5:30 P,M, / / / /- , ",' /' ':,- Edward O. Kaiser, Chainnan of the Board 4