2003-04-15
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CITY OF ENCINIT AS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF SPECIAL MEETING
Lilac Room, Civic Center
505 South Vulcan Avenue
TUESDAY, APRIL 15, 2003 at 3:00 p.m.
CALL TO ORDER ROLL CALL
Chairman Kaiser called the meeting to order at 3:11 p.m.
DIRECTORS PRESENT:
Edward Kaiser, Cindy Jacob, Kerry Miller, Phil Cotton and
Peter Cota-Robles, being all of the Directors.
ALSO PRESENT:
Chris Calkins and John White, Carltas Co.; John McNair and
Rod Linville, JC Resorts; Staff members Paul Bussey 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 March 27, 2003.
Director Cota-Robles moved approval of the minutes, seconded by
Director Cotton. Approved 5-0.
2.
Review Summary of March, 2003 Revenues and Expenditures/Financial
Statement/Update on Capital Reserve Fund. (Rod Linville)
Mr. Linville reviewed the March financial statement.
Revenues for the month were $371,433 compared to a budget of $384,838 or
97% of budget; Expenditures were $237,304 or 95% of a budget of $250,741;
Net income was $133,604 or 100% of a budget of $133,063; Total rounds were
6,271 or 104% of a budget of 6,026.
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Year to date income was $1,059,652 or 113% of a budget of $934,043; Year to
date total rounds were 51,928 or 100% of a budget of 52,085.
Mr. McNair reviewed the Capital Reserve Fund statement. Total Capital Expense
to date is $134,270 and it is anticipated that the year will end with a balance of
$29,143 in the reserve account.
3.
Approve FlY 2003/04 Budget.
(John McNair)
Mr. McNair said that JC Resorts is suggesting a rate increase of $3, increasing
the range fees to $6, $8 and $10, to not repay the bridge and put it back into the
operating account. In addition, reduce the capital reserve funds from 4% to 3%.
With this action he feels they can get to within $40,000 variance of paying off
the CFD bonds given that they can beat budget.
Mr. Calkins said they were comfortable with this proposal and had done their
own analysis. It is rather a complicated formula because there is a different rate
at which homes get taxed. But they feel they are covered for the CFD payments.
With the Golf Course paying its share on a consistent basis, the homeowners will
not see any increase; they will be basically in the same position as the golf
course having a flat payment for an extended period.
Chairman Kaiser asked the Directors for their thoughts on the suggested budget.
Director Jacob said she felt it made sense; Director Cota-Robles said that the
clarification that Mr. Calkins had made was really helpful and he would support
what JC Resorts is proposing; Director Cotton said he also supported the
recommendation, his only concern was that if ever they had to start gearing back
on the operation that is when the golf course begins to depreciate and said he
would advise being cautious about where they may have to make cuts. Mr.
McNair said that he understands the concern and will watch the maintenance
expense on a quarterly basis to be sure they don't need to cut back.
Chairman Kaiser said he personally does not like to go down from 4% to 3% on
the capital reserve fund, the reason being that they are not really reserving for
things that they know they are going to be faced with in the future. But in view
of the bottom line he agrees they should go down to 3%.
Mr. Calkins said that ERGA is going to be looking at some surplus at least until
Carlsbad golf course comes on line. Then at the end of the year the Board could
make a decision to fund a long-term replacement reserve.
Director Cotton said that with the recommended deferred maintenance list, or as
Chairman Kaiser referred to it as the "wish list," when they get great ideas they
should look at the deferred list, as a reality check.
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8.
Director Miller said he thought it was a thoughtful, well studied
recommendation and moved approval of the recommended budget,
reducing the capital reserve fund from 4% to 3%, and not replenishing
the operating account, seconded by Chairman Kaiser. Approved 5-0.
Mr. Linville said that at the next Board meeting they would bring back a finalized
budget for the Board to look at.
4.
Report on Tree Enhancement/Markers
(SubCommittee)
Nothing to report.
5.
Update on Restrooms.
(John McNair)
Mr. McNair reported that the City's Building Department has signed off on the
plans and John Nabors expects to pull permits by the end of the week.
6.
Update on Cell Towers
(John McNair)
Mr. McNair advised that he had good news. He had had the first revisions of
contracts agreed to between JC Resorts and ERGA's attorneys and Cingular and
Sprint. There are just a few minor changes to be made but everyone has agreed
to the contents and they are ready to move forward. Contracts are for
$2500/month for each carrier with an increase of 4% or c.p.i. whichever is
greater.
Chairman Kaiser moved that either he or Director Miller be authorized
to execute the agreements, seconded by Director Cotton. Approved
5-0.
7.
Incidents and Accidents.
(Rod Linville)
Mr. Linville reported that he had received a letter from a homeowner on the golf
course at hole #2. She wrote that golf balls home have hit her approximately 36
time. He is working on a form response to the homeowners.
It was recommended that Mr. Linville write a letter to the HOA giving them
names of organizations that manufacture screenings.
Director Cota-Robles left the meeting at 4:11 p.m.
Mr. Linville also advised that a Marine Corps helicopter had made an emergency
landing on the course that morning due to engine failure. They will have to
replace the engine in the next two or three days.
Potential Course Enhancements.
Mr. McNair said he and Mark Warren had been talking about overseeding. Right
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now they have Bermuda grass on the fairways and roughs and the roughs have
predominantly turned into rye, while the fairways are Bermuda. Mark Warren
has thought about not overseeding the fairways this year. Financially this would
save approximately $12,000. The advantage is that the Bermuda gets thicker if
it is not overseeded, however it could get brown spots and he is concerned with
the players' perception especially after raising the fees. It was agreed that Mark
Warren should overseed the course but not the roughs.
Mr. McNair said they have some equipment that needs replacing. They also have
some remaining pieces of equipment that they are not going to need any more,
nor do they have room for them in the maintenance facility. They looked at
trade in values, which would have reduced the cost a little bit, but they are only
looking at 15 cents on the dollar. They also looked at selling to other companies
but would only get 20 cents on the dollar. Some of the equipment they could
use at JC Resorts but before they did that he wanted to bring the issue before
the Board. Mr. Calkins recommended that JC Resorts make an offer along with
other companies and bring the offers back to the Board.
9.
Discussion/Direction Concerning Course Operations, Conditions Needing Change.
Nothing.
10.
Directors' 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.]
11.
Next Meeting: Thursday, May 22, 2003 at 3:00 p.m.
12.
Adjournment
Chairman Kaiser adjourned the meeting at 4:35 p.m.
Respectfully submitted,
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Patricia Drew, Recording Secretary
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Edward O. Kaiser, Chairman of the Board
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