2003-01-23
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CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF REGULAR MEETING
Lilac Room, Civic Center
505 South Vulcan Avenue
THURSDAY. JANUARY 23, 2003 at 3:00 p.m.
CALL TO ORDER ROLL CALL
Chairman Kaiser called the meeting to order at 3:06 p.m.
DIRECTORS PRESENT:
Edward Kaiser, Phil Cotton, Cindy Jacob and Peter Cota-Robles.
DIRECTOR ABSENT:
Kerry Miller.
ALSO PRESENT:
John White, Carltas Co.; John McNair, Rod Linville and Mark
Warren, JC Resorts; Bill Carli and Bill Eler, ERMGC Men's Club;
Staff members Paul Bussey and Nancy Sullivan; and Recording
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 December 19. 2002.
Director Cota-Robles moved approval of the minutes of the December 19, 2002
special meeting, seconded by Director Cotton. Approved 4-0-1 (Miller)
2.
Encinitas Ranch Men's Club - Proposal for "Paul Ecke Jr. Memorial"
The representatives from the Men's Club gave a brief presentation of their
thoughts for a plaque in memory of Paul Ecke, Jr. The consensus is that the
plaque should be placed at the first tee. They anticipate a bronze plaque would
cost approximately $1500 and what it would be placed on would be up to the
Maintenance Department of the golf course. Mr. White suggested a time limit
for completion of May 13, being the first anniversary of Mr. Ecke's death. They
will come back at the March meeting with working plans and draft language
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3.
Review Summary of December, 2002 Revenues and Expenditures/Financial
Statement/Update on Capital Reserve Fund. (Rod Linville)
Mr. Linville reviewed the December 2002 financial statement.
Revenues were $314,552 compared to a budget of $329,254 or 96% of budget;
expenditures were $245,953 compared to a budget of $263,792 or 93% of
budget; net income was $68,598 compared to a budget of $64,428 or 106% of
budget; total rounds were 4,789 compared to a budget of 5,048 or 95% of
budget.
Year to date net income was $729,274 compared to a budget of $653,037 or
112% of budget; total rounds were 35,811 compared to a budget of 35,690 or
100% of budget.
Mr. McNair reviewed the updated capital reserves and expenditures for 2002-
2003. Total Capital Expense was $179,270. Total Budgeted Capital Expenditure
at 4.0% was $89,962.00 with a balance of capital budget at January 1, 2003 of
$101,742.00 for a Total Balance Capital Reserve of $191,704.00 with a variance
of $12,434.00. He feels this variance will be made up by the end of June (the
end of the fiscal year). Operational/Course Improvements are $24,000.
Director Cota-Robles reported that the issue of the cart crossing on Paseo de las
Flores had gone before the Traffic Commission at their January meeting and it
will be recommending to the Council that they authorize 50% contribution from
the City.
4.
ERGA Annual Report dated January 1, 2003 - info only.
Ms. Sullivan explained that the annual report is required by the 1996 Revenue
Bonds and is just for the Board's information.
5.
ERGA Audited Financial Statement for Year Ending June 30, 2002.
Larry Gonzales of Fitzpatrick & Gonzales, ERGA's Auditors, reviewed the
financial statements for the years ended June 30, 2002 and 2001. He reported
that he had no adjustments to make in the course of his audit and that there is
liquidity to meet the current operating demand and very ample liquidity for
payment of the liabilities, in particular debt service. He explained the reason for
the large difference in the CFD Assessments of about a half million dollars. He
said that basically the Authority is operating as it is supposed to do. It is
generating cash and its excess cash is made available to pay down CFD debt
service, and in the future will be available to pay down sales tax advances.
In response to a question by Chairman Kaiser about payments on the CFD and
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retroactive payments, Ms. Sullivan explained where the money had gone and the
reasons why.
Mr. Gonzales thanked Ms. Sullivan saying she is very valuable not just because
of what she does but because of her knowledge base of not only the Authority
but also the CFD, the Community Facilities District. She has a very intimate
knowledge of how the two interact and how the components of the Development
Agreement intersect.
Mr. Gonzales also advised the Board that there is a new governmental
accounting standard, GASBY 34 that basically requires different reporting for
governmental entities and the Authority is a governmental entity. The City has
implemented it as have a lot of other governmental entities. The Authority has
not implemented it as yet but is required to do so no later than June 2004. The
basic financial statements will look similar to what they do now, however the big
difference will be that there is a required management discussion and analysis of
the entity. It is fairly extensive and needs to cover a lot of territory and needs to
be written by management. The other addition is some required supplemental
information and condensed financial statement analyses. Mr. Bussey said that
they have discussed implementing the report for the next audit.
Chairman Kaiser moved that the Board accept and file the report,
seconded by Director Cotton. Approved 4-0-1 (Miller)
6.
a)
b)
Approve Amended Bylaws.
Appointment of Treasurer and Auditor.
(Paul Bussey)
Mr. Bussey summarized the need for the change in the Bylaws saying that the
City had recently reorganized the Administrative Services Department and
created a Finance Department. In creating the Finance Department some titles
were changed - the Financial Services Manager title no longer exists, there is
now a Director of Finance. Because both the Bylaws and the Joint Powers
Agreement referred to the Financial Services Manager it was necessary to
change that. Both the Water District Board and the City Council, who were the
two agencies that created the Joint Exercise of Powers Agreement, have made
an amendment so that the Auditor's position is now referred to as Finance
Manager/Investment Officer. Jay Lembach who is very superb and does an
excellent job holds that position. He has done auditing work in previous jobs so
the Board is in good hands.
State law provides that the treasurer of one of the member agencies, the Water
District or the City, be the treasurer of the Authority. That means that the City
treasurer is the Authority's treasurer. The Authority's Bylaws, in its last
amendment, named the Financial Services Manager as the Treasurer. Since the
Finance Director is the City Treasurer now with the reorganization, the Bylaws
should be amended.
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Director Cota-Robles moved that the Board approve the
recommendation being made to amend the Bylaws to show the Finance
Director as Treasurer and the Finance Manager/Investment Officer as
the Authority's Auditor, seconded by Director Jacob. Approved 4-0-1.
7.
Report on Tree Enhancement/Markers
(Phil Cotton/SubCommittee)
Mark Warren reported that the committee agreed upon using a bush rather than
a tree as a marker. Director Cotton recommended that they move ahead with
the markers. Mr. Warren said he would like to get the trees organized and on
order so as to make sure he can get them. Mr. McNair said that payment is
crucial and in the capital budget there is $15,000 allotted for trees. He feels that
the subcommittee should move on this and not wait for Board approval.
Chairman Kaiser agreed that the subcommittee should make the decision on
trees and move ahead. There was unanimous agreement.
Chairman Kaiser said he would like the Committee on Tree Enhancement to
continue as a permanent committee and to appear on each agenda.
8.
Update on Restrooms Status
(John McNair)
Director Cotton moved that once the Planning Commission approves
the design review they authorize JC Resorts to have the project
move ahead as fast as possible, seconded by Chairman Kaiser.
Approved 4-0-1.
9.
Update on Cell Towers
(John McNair)
Mr. McNair reported that Cingular is looking to move forward and hopes to have
plans by the next Board meeting. With the Board's permission he would like to
move forward with the contractual arrangements. Permission given.
Mr. McNair advised that Sprint has also come to him, however they would prefer
to put a repeater on the driving range.
10.
Incidents and Accidents.
(Rod Linville)
Mr. Linville reported they had had a power outage from the high winds from
approximately 5:00 a.m. to 5:00 p.m. In conjunction with that the signal lights
were out and Mark Warren was in an accident crossing Leucadia Boulevard
going back to Maintenance from the Pro Shop area - a lady ran the stop signs.
His truck was pretty badly messed up.
In addition, a lady was killed near the bridge on Leucadia Boulevard during the
same week and Mr. Warren had to assist with the rescue. The Pro Shop also
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responded with defibrillators, however there was a doctor on the scene and he
didn't need the defibrillator.
11.
Potential Course Enhancements.
Chairman Kaiser said that in playing the course there is a problem with Bermuda
grass at holes six and seven. Mr. Warren said the salt in that area is pretty high
and he continues to work on it. The Bermuda grass will come back.
12.
Discussion/Direction Concerning Course Operations, Conditions Needing
Change.
Director Cota-Robles said he had a request from SB&O who are working on the
grading plans for the custom lots that Cornerstone set up. As part of their
grading plan they need a Letter of Permission to Grade off site, to do some
grading on the golf course side immediately adjacent to those parcels. It's quite
minor, basically doing a little re-contouring and re-vegetation along those
parcels, and in addition there is a storm drain line, which would also discharge
onto the site. He would like the Boards permission to work with maybe the
Committee, and with Mark Warren to determine whether the plan is consistent
with what they would want to see and make sure that there aren't any conflicts
that would arise with the drainage line they want to put in. And if they are
satisfied give them the requested Letter of Permission.
Chairman Kaiser moved that the Board give the committee
authorization to act on behalf of the Board, seconded by Director
Cota-Robles. Approved 4-0-1.
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.]
None
Next Meeting - Thursday, February 27, 2003 at 3:00 p.m.
Adjournment
Chairman Kaiser adjourned the meeting at 4:36 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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