2004-04-22
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CITY OF ENCINIT AS
EN CINIT AS RANCH GOLF A UTH 0 RITY
MINUTES of REGULAR MEETING
Lilac Room, Civic Center
505 South Vulcan Avenue
THURSDAY. April 22, 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, Cindy Jacob, Kerry Miller, Phil Cotton and Peter Cota-
Robles, being all ofthe directors.
ALSO PRESENT: John White, Carltas Co.; Bob Dobek and Rod Linville, JC Resorts; Staff
member 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 Special Meeting of March 25,2004.
Director Cotton moved approval of the minutes of the special meeting of March 25,
2004, seconded by Director Miller. Approved 5-0
2.
Review Summary of March 2004 Revenues and ExpenditureslFinancial Statement/update
on Capital Reserves. (Rod Linville/John McNair)
Mr. Linville reviewed the March financial statement.
Revenues were $419,416 compared to a budget of $389,278 or 108% of budget;
Expenditures were $235,063 compared to a budget of $249,500 or 94% of budget; Net
income was $184,037 compared to a budget of$138,745 or 133% of budget; Total Rounds
were 6,474 compared to a budget of6,032 or 107% of budget.
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Year to date Net Income was $1,186,630 compared to a budget of $1,001,448 or 118% of
budget. Total Rounds were 51,848 compared to a budget of 52,248 or 99% of budget (only
about 400 rounds behind).
Capital Reserves at March 31, 2004 were $97,131.19 after an expense of $4,949,98 for
restoring Hole #18. Bob Dobek reported that the work had been done and the cost came in
quite a bit less than anticipated.
3.
Review Proposed Draft of FN 2004-2005 Budget.
(John McNairlRod Linville)
Mr. Linville reviewed the historical pricing survey he had prepared for the Board's
information. He also distributed copies of three scenarios for consideration of the 2004-
2005 budget.
#1 scenario:
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#3 "
+ $2 Green fee all categories.
+ $3 Green fee all categories
+ $3 Green fee Public and So. California
+ $2 " "All other categories
Mr. Linville said he still believes that the Ranch Golf Course doesn't have any competition
until Carlsbad course comes on line,
Director Jacob asked when the last green fee increase took place and when told just last
year, asked why the proposed increase for this year. Mr. Linville responded that he felt an
increase should be considered each time the budget is up for review.
Director Miller said he kind of shared Director Jacob's concern although he doesn't have
enough information to evaluate whether an increase is important right now. Chainnan
Kaiser asked Ms. Sullivan about the current payment on the CFD bonds. She responded
that for the CFD alone she was estimating it to be about $420,000. For the "look back"
there is still $1 million due and $400,000 due this year. Ms. Sullivan explained in great
detail the payment plan for the bonds, the "look back" monies and the sales tax refunding.
Director Cotton said that he would rather go with small increases than down the line having
to jump the rates by $10 or $12 and shock the playing public. He said that as time goes on
the course is going to cost a lot more to maintain. Bob Dobek said he agreed totally.
Director Miller said he would like to know what JC Resorts thinks is an appropriate
increase in consideration of operations etc. He would like to see what their
recommendation would be and a list of the top ten reasons why. From Ms. Sullivan he
asked for a similar kind of recommendation based upon the evaluation of the cash flow and
all the debt obligations, in her opinion, not looking at the golf course operation but in light
of all the "buckets" and with the idea that the Board wants to honor its commitment to fill
the buckets over the course of operations. And what she thinks, based on the scenarios,
best produces that kind of outcome. Director Miller said he is not averse to raising the rates
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but if it is done he would like to know it is for a real good reason and that the Board is
comfortable with the amount of the increase, that it makes sense and not purely arbitrary.
Ms. Sullivan was asked to do a five-year projection. JC Resorts was asked to bring back
the budget ready for adoption at the May meeting.
Report on Tree Enhancement/ /Markers
(Subcommittee)
Director Cotton reported that he had been notified that Cornerstone had completed the two
signs for Leucadia Boulevard and Quail Gardens Drive that say "Golf Course,"
Bob Dobek said the trees are all in. With regard to course improvements they have finished
the greens that had been discussed. They will be proceeding to begin work on the driving
range which is their next project. They are still working on the 4th hole along the cart path.
5.
Clubhouse Improvements.
(John McNair)
4:45 p.m. John McNair joined the meeting via telephone.
Mr. McNair said that for any improvements over 5000 sq. ft. they would have to put in a
fire sprinkler system at a guesstimated cost of about $13,000. The plans that were looked
at last month are for 5790 sq. ft. He said they have talked to City officials and it looks as
though they are going to be OK with the space on the south side. They will have to build a
small retaining wall because of the restrooms. The key was that at the top of the slope, as
long as they were on the clubhouse side of the slope, they were OK, the City didn't want
them going on the other side ofthe slope. They have plenty ofroom, about 20-30 ft.
Director Cota-Robles asked Mr. McNair if he had had story poles erected to indicate height
,md visibility from Leucadia Blvd. Mr. McNair said he had not as yet but planned to have
them up for the next board meeting.
A concern of the City was that there would not be enough parking spaces. As Mr. Linville
explained, the parking lot has never filled up and banquet requirements are for after the
players have finished. They are not planning to take on more golfers, just to enlarge the
banquet/dining area.
Director Cota-Robles said that the City would prefer that the club house not be referred to
as "temporary" since it would appear that it will be pennanent for some years.
Mr. McNair said he will come back to the Board at the next meeting with three bids
including FF&E costs and will get a better estimate for a fire system.
6.
Update on Cell Towers.
(John McNair)
Mr. McNair referred to a memo he had sent out to the Board members relative to the cell
tower lease buyout. He indicated three options: 1) 84 month for $125,000; 2) 120
months for $162,500; 3) 180 months for $196,000. His recommendation is to ~.ût the
lease and take the money up front from Cingular. ,'; lL
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Chainnan Kaiser said his inclination was to sell both leases (Cingular and Sprint) and take
the cash. Director Cotton told Mr. McNair that there seemed to be a consensus for him to
go ahead and proceed with the one and also see if the other lease can be bought out.
Chairman Kaiser moved that the Board ask Mr. McNair to proceed with the sale at
$196,000 each for both leases, seconded by Director Cotton. Approved 5-0.
Mr. McNair discussed an illustration that had been distributed showing Nextel's request for
a flagpole arrangement for their tower beside the cart barn. The Board agreed they did not
like the proposal and feel they should be using the driving range.
Incidents and Accidents.
(Rod Linville)
Nothing to report.
Potential Course Enhancements.
Director Miller said that the course is gorgeous; he's never seen it looking so great.
Mr. Linville advised that the course has been rated by the SCGA and new score cards have
been received. Now all they have to do is get the green stripe on the markers. The Men's
Club is delighted with the improvements.
DiscussionlDirection Concerning Course Operations, Conditions Needing Change.
Nothing.
10.
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 they are getting close to getting the golf cart crossing
installed on Paseo De Las Flores.
11.
Next Meeting - Thursday, May 27,2004 at 4:00 p.m.
12.
Adjournment
Chainnan Kaiser adjourned the meeting at 5:30 p.m.
Respec~~lly submi,~ted,
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Patricia Drew, Board Secretary
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Edward O. Kaiser, Chainnan ofthe Board
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