2002-06-27
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CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF REGULAR MEETING
Lilac Room, Civic Center
505 South Vulcan Avenue
THURSDAY, JUNE 27, 2002 at 3:00 p.m.
CALL TO ORDER/ROLL CALL
Chairman Kaiser called the meeting to order at 3:12 p.m.
Directors Present:
Edward Kaiser, Cindy Jacob, Peter Cota-Robles, Phil Cotton, and Kerry
Miller at 3:20 p.m.
Also Present:
Monica Browning, Carltas Co., John McNair, Rod Linville, JC Resorts;
Staff Leslie Suelter and Nancy Sullivan; Recording Secretary Pat Drew.
Chris Calkins, Carltas Co. arrived at 3:30 p.m.
ORAL COMMUNICATION [3 minutes for each speaker. Maximum 15 minutes for
oral communication.]
None.
AGENDIZED BUSINESS ITEMS
1.
Approve Minutes of Regular Meeting of May 23, 2002, and Special Closed Session
Meeting of May 23, 2002.
Director Cotton moved approval of the minutes, seconded by Director Cota-Robles.
Approved 4-0-1 (Miller)
2.
Review Summary of May 2002 Revenues and Expenditures/Financial Statement.
(Rod Linville/John McNair)
Mr. Linville reviewed the Financial Statement for the Month of May.
Revenues were $386,194 or 91 % of a budget of $425,627; Expenditures were
$226,102 or 85% of a budget of $267,527; Net income was $161,820 or ]03% of
a budget of$156,433; Total rounds were 6,088 or 92% of a budget of6,625
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Year to date Revenues were $4,1 ]2,381 or 97% of a budget of $4,245,148;
Expenditures were $2,616,341 or 82% of a budget of $2,848,334; Net Income
was $1,488,987 or 108% of budget of $1,378,480; total rounds were 63,574 or
97% of budget of65,220.
Director Miller joined the meeting.
Mr. Linville said that as discussed at the previous board meeting, he wanted to
bring the directors up to date with complimentary rounds and distributed a
schedule of rounds for the months of January through May 2002. For the month
of May total rounds were 6428 of which 340 were complimentary to employees
(34), Charities/ERGAlPGA (118), and Schools/1r. Golf Assn. (188). He indicated
that complimentary rounds do not affect average daily green fee rate.
3.
Update on Capital Reserve Fund.
(John McNair)
Mr. McNair said the reserve fund is in good shape for the year-end. He estimated
that there would be a surplus of anywhere from $10,000 - $15,000.
Mr. McNair reviewed the proposed capital expenses for fiscal 2002-2003 advising
that a lot of the items were those that had been tabled from the 2001-2002
budget, and in addition there were items that have been discussed during the
year.
Mr. Calkins joined the meeting at 3:30 p.m.
Mr. McNair suggested that the Board members meet at the golf course to review
capital improvements. It was agreed to call a special meeting on site to tour and
review capital expenditures/improvements and introduce the new Board members
to the course.
Mr. Calkins suggested that there is a need to do more fencing and asked if there
was a problem with the increased usage of the trails. Mr. Linville said that they are
getting more and more incidents of trespassers on the golf course to a point where
they had to call in the Sheriff's for one person (with a dog) who has been
approached ten or twelve times and flatly refused to leave. Chairman Kaiser
asked to have potential perimeter fencing to the golf course included in the Capital
Expenses without a dollar amount as something that needs to be considered.
Director Kaiser moved that the Board adopt the Capital Expenses for
fiscal 2002-2003 with the proviso that it is a living document and
subject to change, seconded by Director Miller. Approved 5-0.
Director Cotton asked about future repairs and where they are being budgeted.
What are all the items that should be put on a deferred maintenance list - e.g.
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parking lots, carpets, and painting of the clubhouse. Mr. McNair said that they will
put together a master plan for future repairs and maintenance for the Board's
reVIew.
Mr. McNair said that currently they are leasing the equipment rather than buying it
with capital. They want to continue that practice and hoped it was all right with
the Board. The lease on the golf course equipment is a lease to buy - when the
lease is finished in January the equipment is then owned by the Golf Course.
Chairman Kaiser said that any time ERGA is going to be asked to spend money like
that they should see a comparison of costs - lease vs. purchase.
Mr. Calkins said he recalls that there is some nuance in the bonds about leasing
equipment vs. buying and it being an operating expense. He suggested this be
checked out.
4.
Presentation/Over View of the Financing of the Golf Course.
(Leslie Suelter/Chris Calkins)
Mr. Calkins and Ms. Suelter gave a presentation for the benefit of the new directors
relative to the background of the Development Agreement and the creation of the
golf course. Ms. Suelter reviewed the position relative to the recent attempt to
refinance the bonds.
5.
Cell Towers.
(John McNair)
Mr. McNair stated that the Board's original direction was that they would be
interested in leasing space at $2000/month. They have now come back with an
offer of $2000/month and JC Resorts is in contract negotiations.
6.
Bridge Update
(John McNair/John Nabors)
Mr. McNair reviewed a report from Project Manager John Nabors. He advised that
the bridge was opened to cart traffic on May 23. Still a few minor items to be
completed but expect the job cost to come in at a savings of about $15,000, or
about $307,000.
Chairman Kaiser said he wanted to bring up an issue about the bridge. John
Nabors reported that he had an oral agreement with Hazard to put in some
meshing in the concrete. Hazard did not do that. A letter from Hazard addressed
to Chris Calkins states that "due to an error in placing the order for the concrete to
be used for the cart path, the fiber-mesh was not included in the concrete mix.
We believe the concrete will perform in the desired manner and should not be
removed and replaced. We will warranty the concrete against cracking, other than
in designated joints, for a one-year period. Should cracking occur we will return to
replace the cracked panels at our expense." Chairman Kaiser said he didn't want
to take the responsibility of agreeing to this.
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7.
Mr. Calkins stated that his recommendation is to go back and ask for at least a
three-year warranty and the Board accepts the proposal.
Director Cotton moved that the Board go back to Hazard and ask for a
three-year warranty on the concrete. If they will accept that the Board
will accept the concrete without the mesh. Director Miller seconded,
approved 4-1 (Jacob abstained).
Restrooms Update.
(John McNair/John Nabors)
Mr. McNair reviewed a status report he had received from Project Manager John
Nabors. He advised that the restrooms are on schedule and have been completed
but they have to wait to get approval from the Planning Commission. Estimating
they will be installed in December of 2002.
Relative to the Design Review, Director Cotton suggested going back to the original
plans for the golf course to see if some verbiage about restrooms or amenities was
included in the design review. If so, a design review would not be required - it
would be an administrative review.
Tape garbled at this point and through balance of meeting.
8.
[ncidents and Accidents.
(Rod Linville)
Mr. Linville reported that a golf cart had been stolen and then reported recovered
by the Sheriff's Office.
Mr. Linville said he had to call the Sheriff on Mr. Hill for trespassing on the golf
course with his dog.
There was discussion of appropriate signage around the perimeter of the course on
the trails.
Director Miller moved that Mr. Linville work with Director Cotton
regarding new signage for the course/trails, seconded by Director
Kaiser. Approved 5-0.
9.
Potential Course Enhancements/Discussion/Direction Concerning Course
Operations, Conditions Needing Change.
Mr. Linville advised that the Men's Golf Club had approached him to determine if it
was possible for them to put a monument or plaque on the course in honor of Paul
Ecke, Jr. and if the Board would like to join them in such a monument. He will
invite them to a future meeting to make a presentation to the Board.
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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.]
Chairman Kaiser reported that he had executed the contract with JC Resorts.
11.
Next Meeting: Thursday, July 252002 at 3:00 p.m.
12.
Adjournment
Chairman Kaiser adjourned the meeting at 5 :00 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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