2002-08-01
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CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES of SPECIAL MEETING
1440 Paseo de las Flores
THURSDAY, AUGUST 1,2002 at 3:00 p.m.
RESCHEDULED MEETING
CALL TO ORDER/ROLL CALL
Chairman Kaiser called the meeting to order at 4:00 p.m. Meeting was delayed due to length
of time it took Directors to review the course capital improvements at the earlier meeting.
Directors Present:
Edward Kaiser, Cindy Jacob, Kerry Miller, Phil Cotton and Peter Cota-
Robles.
Also Present:
Chris Calkins and John White, Carltas Co.; John McNair, Rod Linville
and Mark Warren, JC Resorts; John Nabors, Board Consultant; Staff
Members Leslie Suelter and Nancy Sullivan; Pat Drew, Recording
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 June 27, 2002.
Director Miller moved approval of the minutes of the June 27, 2002
meeting, seconded by Director Cotton. Approved 5-0.
2.
Review Summary of June 2002 Revenues and Expenditures/Financial Statement.
(Rod Linville/John McNair)
Mr. Linville reported that the fiscal year ended with a big bang for the month of
June. Total revenue was $462,028 compared to a budget of$434,1]6 or 106% of
budget; Expenditures were $250,067 compared to a budget of $294,783, or 85%
of budget; Net income was $207,109 compared to a budget of $134,067 or 154%
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of budget. Total rounds for month were 7,215 compared to a budget of 6,805 or
106% of budget.
Year to date for end of fiscal year, net income was $1,709,776 compared to a
budget of$I,5l5,048 or 113% of budget; total rounds were 70,789 compared to
a budget of 72,025 or 98% of budget.
Mr. Linville compared last year's total revenues of $4,476,299 to $4,574,409 for
year-end June 30, 2002. For the year net income was $62,000 more this year
than last year, and rounds actually increased this year by 462 over last year.
Mr. Linville also reported that for the month of July they have been sold out from
6:00 a.m. to 5:00 p.m. almost every day. He anticipates more than 8000 rounds
for the month. There have been a lot of compliments about the greens and the
new bridge and the general condition of the course.
3.
Update on Capital Reserve Fund.
(John McNair)
Mr. McNair reported that the capital reserves for year-end were $145,161.06,
$120,000 of which is for the Quail Gardens Drive Bridge. This leaves $25,000 in
the Capital Reserve Fund for the year-end.
Mr. McNair distributed copies of a preliminary list of projected capital expenditures
for the period 2003 through 2009 and asked the board members if, after their tour
of the golf course earlier, they saw anything that should be added to the list. For
discussion at next board meeting.
Mr. White asked about the safety fencing at holes 2 and 4. It appeared to him that
there could be some concerns. The developer is responsible for installing the
fence but once it is in it will be ERGA's and the golf course's responsibility. Now
that the trails are in it does appear to be more hazardous than the architect signed
off on. Mr. Calkins recommended that the architect be invited to come back and
take a look at the safety issues. Director Miller agreed and said that at the same
time they should get the City's Risk Manager involved. Mr. McNair suggested that
he and Mark Warren meet with Director Cotton to check out their "level of
comfort." Director Cotton said that the fence at hole 2 had not been constructed
and recommended that they look at a full set of plans and have it staked out. He
said there is a seven-foot fence with a cantilevered top on it in the area of hole 2.
The plans call for trees to be planted as a knockdown barrier. If they still consider
it to be hazardous they should look into what changes should be made.
Mr. McNair said he will bring back a list for the Board indicating the life span and
replacement of various components of the course, and maybe set up a separate
fund for long-term items. Mr. Calkins said that his concern was that the Board
would be faced with major costs and not have the funds to address it.
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4.
Cell Towers.
(John McNair)
Mr. McNair said that Nextel is still interested and will start the process in another
couple of months and is looking to 2003 to complete the process. Verizon is
tentatively interested. He is requiring $2000/month with 4% annual increase for
cost of living. He asked how many cell towers would be acceptable to the Board.
It was agreed he should keep it to one or two towers, or whatever the Planning
Department will allow.
5.
Bridge UpdatelFinancial
(John McNair)
John Nabors distributed his written report to the directors.
He said the bridge is almost completed. They are down to just a few issues on
irrigation, landscaping and retaining wall. Will schedule a walk-through in the
middle of the month. Hazard has agreed to the Board's request for a three-year
guarantee on the concrete, and he has suggested that they write a letter to the
Board outlining their guarantee.
The contract is about done and has come in at approximately $21,000 under
budget.
6.
Restrooms Update.
(John McNair)
Mr. Nabors handed out a report on the restrooms. He reviewed a site plan and
landscape plan that he had submitted to the City's Planning Department on July
30th. The City has accepted it as a design review package that will go to the
Planning Commission -- they are estimating three or four months. Planning
Department's Diane Langager has stated that she will not take it to hearing unless
the Golf School building precedes it, and the renewal of that design review. What
he has agreed with staff is that he will just take them coincidental and they'll be
heard back-to-back at probably the same hearing. So, basically the City won't go
anywhere with the restrooms until he gets the golf school building submitted.
Chairman Kaiser asked Mr. Nabors who had engaged his services for the golf
school and was told that Director Cotton had asked him to do it for the Board. He
also asked who owns the golf school and was told that JC Resorts owns the school
with a percentage of the gross profit going to ERGA. Chairman Kaiser said that JC
Resorts applied for a conditional use permit for a year to use the trailer so
technically the application for the renewal of the golf school design review permit
needs to be done by JC Resorts with the consent of the owner, ERGA.
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In response to a question about the fee involved, Mr. Nabors responded that it
would take about $5000-$6000. Also, right now it takes about six weeks to just
get an application submitted to the City. Mr. McNair stated it would take about
seven years to get a return on his investment.
Mr. Nabors indicated that even if the City extended the permit for three or four
years it would cost another $6000 to prepare the new application, and so on each
extension.
Mr. Nabors suggested that he could go back to Planning staff and say the golf
school building will be removed by a certain date. At this point staff should let the
restrooms go forward while JC Resorts clears up the violation in connection with
the golf school's expired design review permit of its temporary building.
Director Cota-Robles recommended a sub-committee to explore the issue a little
further if it doesn't cause too much of a delay in the restroom construction. Mr.
Nabors said they have a week or so before the project would be held up.
Director Miller said he is feeling comfortable with abandoning the school, realizing
that there are probably alternatives that can be explored. The lessons could be
continued and JC Resorts could figure out how to creatively fill the gap.
Director Miller made a motion to abandon the golf school building and
proceed expeditiously with processing the restroom application,
seconded by Director Cotton.
Director Cota-Robles offered an amendment to the motion to form a
sub-committee to work with JC Resorts to consider other alternatives for
siting the golf school or a similar function. Amendment seconded by
Director Kaiser. Motion and Amendment Approved 5-0.
Chairman Kaiser said that he and Director Cota-Robles would work with John
McNair on alternative options.
Mr. Nabors passed out a schedule of cost estimates for the restrooms and
reviewed his numbers and the work involved. He said that he would work with
Mr. McNair and Mr. Warren on the numbers. Chairman Kaiser asked Director
Cotton to also be involved.
7.
Course Fencing.
(John McNair)
Discussed under Item 3 above. Subcommittee to review the plans for holes 2, 3
and 4 and bring back to next meeting.
8.
Incidents and Accidents.
(Rod Linville)
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9.
Mr. Linville advised that the only thing he had to report was that they had three
vehicle break-ins in the parking lot. Two attempting to steal the vehicle and the
third one a smash and grab of a wallet. The Sheriff's were notified.
Potential Course EnhancementslDiscussion/Direction Concerning
Course Operations, Conditions Needing Change.
Covered in earlier items.
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.]
None.
11.
Next Meeting: Thursday, August 22,2002 at 3:00 p.m.
12.
Adjournment
Chairman Kaiser adjourned the meeting at 5:20 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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