2003-11-13
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CITY OF EN CINIT AS
ENCINIT AS RANCH GOLF AUTHORITY
MINUTES OF SPECIAL MEETING
THURSDAY, NOVEMBER 13, 2003 AT 3:00 P.M
LILAC ROOM
CITY HALL, 505 SO. VULCAN AVE.
CALL TO ORDER/ROLL CALL
Chairman Kaiser called the meeting to order at 3 :05 p.m.
DIRECTORS PRESENT:
Edward Kaiser, Cindy Jacob, Kerry Miller, Peter
Cota-Robles and Phil Cotton, being all of the
Directors.
ALSO PRESENT:
John McNair, Rod Linville and Mark Warren, JC
Resorts; John White, Carltas Co.; Leslie Browder
and Nancy Sullivan, City Staff; Kevin Miller,
Public member; Pat Drew, Recording Secretary
ORAL COMMUNICATION [3 minutes for each speaker. Maximum 15 minutes for
oral communication.]
Chairman Kaiser introduced Kevin Miller who is in his Rotary Club and also an Encinitas resident.
He wished to make a proposal concerning the desirability of permitting personal Neighborhood
Electric Vehic1es on the golf course. Issue to be agendized for the January 2004 meeting.
AGENDIZED BUSINESS ITEMS
1.
Approve Minutes of Special Meeting September 4,2003.
Chairman Kaiser pointed out an error on page two of the minutes: a spelling correction in
Item 3, name "Cole Brothers" should be Toll Brothers.
Director Cotton moved approval of the minutes as corrected, seconded by Director
Miller. Approved 5-0.
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2.
Review Summary of August, September and October, 2003 Revenues and
Expenditures/Financial StatementlUpdate on Capital Reserves.
(Rod Linville/John McNair)
Mr. Linville reviewed the Revenues and Expenditures/Financial Statements for months of
August, September and October, 2003.
For month of August revenues were $477,736 or 99% compared to budget of$480,589;
Expenditures were $262,266 compared or 92% of budget of $284,895; Net Income was
$215,201 or 111% of budget of$194,661; Total Rounds were 7,597 or 103% of budget of
7,362.
Year to date income was $441,436 or 105% of budget of $420,693; Total Rounds were
15,488 or 102% of budget of 15,230,
For month of September revenues were $348,222 or 98% of budget of $354,228.
Expenditures were $245,164 or 94% of budget of$261,334; Net Income was $102,557 or
112% of budget of$91,860; Total Rounds were 5,412 or 100% of budget of5,437.
September year to date Net Income was $543,993 or 106% of budget of $512,553; Total
Rounds were 20,900 or 101 % of budget of20,667.
For month of October revenues were $298,714 or 92% of budget of$325,878; Expenditures
were $249,679 or 88% of budget of$282,650; Net Income was $48,416 or 115% of budget
of$42,195; Total Rounds were 4,619 or 94% of budget of 4,895.
Year to date Net Income for October was $592,409 or 107% of budget of $554,747; Total
Rounds were 25,519 or 100% of budget of25,562
Capital Reserve and Expenditures as of October 31, 2003 were $57,608,89. Projected
2003-2004 Capital Expense is $162,000; projected capital reserve at June 30, 2004 is
5166,695 with a Capital Expense vs. Account Variance of$4,695.00,
Mr. McNair reported on the bathroom situation and damage to the road. Mr. Warren asked
about the Board's wishes concerning the appearance of the fencing around the bathrooms.
Decision was to waterproof the fencing and keep the appearance rustic.
3.
Report on Tree Enhancement/ /Markers
(Subcommittee)
Mr. Warren advised that he hopes to have the projects completed, including the hydro
seeding at holes 2, 4, 10 and 11, by the end ofthe year.
4.
Clubhouse Improvements
(John McNair)
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Mr. McNair distributed copies of a drawing of his proposed changes to the clubhouse which
he would estimate at about $70/sq.ft. The thought was that if they went out another 45 ft.
south and had the main café part of the building going up only 25 ft" the back part would
become food and beverage and the existing food and beverage would become storage. The
bathrooms would remain where they are with their own ventilation. Mr. McNair said that
he believes the changes he is proposing, and as discussed with the Board at the October
meeting, should service the needs of the golf course for the next twenty years, Costs are
estimated at $70/sq.ft. for the addition, and with the interior improvements about $150-
170/sq.ft, The existing building has 3000 sq.ft. and the proposed addition would add
another 1565 sq,ft.
Chairman Kaiser stated he liked what he saw and would like to see the concept of how the
interior would be redesigned.
Director Miller said that while he could answer his question for himself, he wonders if this
concept is consistent with the Board's vision for the facility in the foreseeable future.
Chairman Kaiser said he would think that it is. Director Miller said that reflecting on past
discussion this would seem to be a very cost effective approach. Mr. McNair said that
something he would like the Board to mull over before the next meeting is that it would seat
70 inside and a golf tournament can actually host up to 144 people. Is 70 the right number
for this facility? He said to increase the capacity the kitchen costs are going to triple...
Chairman Kaiser suggested a retractable wall. Director Cotton said that creating the
enlarged facility is going to create a new demand that they haven't experience before so he
would like to see some suggested alternatives for accommodating up to 130-144 people.
5.
Update on Restrooms.
(John McNair)
Issue covered under item 2 above,
6.
Update on Cell Towers.
(John McNair)
Mr. McNair advised that Sprint and Cingular contracts have been signed and are moving
forward, going through the process of getting approved.
He is looking at putting an additional tower for Nextel inside the cart barn, they think it can
work. Their contract is for the same terms as the other two companies - $2500 per month
with 4% increase per year or c.p.i. whichever is greater. Mr. McNair distributed copies of
the diagram for the site locations. After discussion with Phil Cotton who has had similar
situations at City parks, he said he is proposing going to the company and asking if they
would float the money up front for the first eight or nine years amounting to about $175,000
to put into the capital reserves to pay for the clubhouse. This one company would not pay
any rent for that period of time.
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Director Cotton suggested that it might be appropriate to approach the Planning Department
to see if they have any problem with the proposal. He will talk to Planning Director Pat
Murphy.
Incidents and Accidents.
(Rod Linville)
Mr. Linville said they had had a couple of thefts one being a brand new Hummer stolen out
ofthe parking lot. Also had a set of clubs stolen from behind a lady's SUV while she sat in
the car. Also had another broken windshield incident on Paseo de Los Flores from hole
number 7. Fortunately one of the player assistants was there and saw the golfer who hit the
shot and was able to connect the golfer and the lady driving the vehicle.
8.
Potential Course Enhancements.
Mark Warren said that in connection with previous discussions about the water problem he
has a test/experiment on number 14 green where they have actually installed a free flow unit
which he currently has as source to the irrigation pond and has put it on line. He said they
are not thrilled with what they are seeing with the free flow as it is entering the pond and
searching for what might be the cause of the problem. The initial outlook to what is
happening on number 14 green, with the installation of the free flow unit solely to that
green, has been very positive in lowering the salt content and dealing with issues that they
have with the green. He is going to continue with his experiment and then come back to the
board. The scenario on that is $800 per unit times 20 greens. There is a potential of not
having to discuss potable water ever again.
Mr. Warren said there is an option with potable water that is on the reservoir, to run or
extend the line down to irrigate the 18th green. The only issue is the water pressure so he
would still be looking at trying to boost the water pressure from the line. He doesn't have a
dollar amount on this at this time. If the Home Owners Associations could persuade their
members to use potassium chloride as opposed to sodium chloride for their water softeners
that would help immensely as it benefits the salts in recycled water.
Director Cotton said he would like to recommend that the Board authorize Mark Warren to
get another couple of free flow units for holes 1 and 18. Chairman Kaiser concurred.
Chairman Kaiser said he would like to ask the Committee to continue to look at hole #9
along the Leucadia Boulevard for planting,
9.
DiscussionlDirection Concerning Course Operations, Conditions Needing Change.
None,
10.
Directors and/or Manager Reports
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[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.]
Leslie Browder said she would like to update the Board on ERGA bonds. The interest rates
are starting to drop and the first callable bonds are 2006. The financial advisor who worked
on the original issuance has been working with Treasurer Jay Lembach and has come
forward with an idea of potentially doing some renegotiation with the sole bond holder that
could result in substantial savings to ERGA. They will work with the financial advisor and
come back to the Board in December.
Chairman Kaiser said that at their last meeting with the financial advisor it was agreed that
if he could come up with a plan to save ERG A $400,000 to $500,000 they would be
interested in talking again. Anything less than that would not be worth the trouble.
Ms. Browder advised that they are also working on a CFD refunding.
John White said he had an update on the Carlsbad golf course. He attended a Steering
Committee meeting and learned that the City Council is going to have an agenda item to
vote to approve/disapprove the expenditure of $24 million for the Carlsbad Municipal Golf
Course, not including the clubhouse, $29 million with the clubhouse, They are projecting
55,000 rounds at rates $2 less than Encinitas during the week for residents' rates; non-
resident rates are significantly higher than Encinitas at over $100 on weekends. The City
Council is going to be asked to write a check for over $12 million to subsidize the project-,
non repayable by the golf course. If the Council agrees to it they could start construction as
early as September 2004 or early 2005.
11.
Next Meeting - Thursday, December 11,2003 at 3:00 p.m,
Mr. McNair said that JC Resorts would like to have a holiday reception at the Golf Course
following the Board meeting,
12.
Adjournment
Chairman Kaiser adjourned the meeting at 4:40 p.m.
Respectfully submitted,
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Patricia Drew, Recording Secretary
Edward O. Kaiser, Chairman of the Board
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