2004-05-27
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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.
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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).
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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)
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Respectfully submitted,
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Patricia Drew, Board Secretary
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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,
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Edward O. Kaiser, Chainnan of the Board
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