2002-05-23
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CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF REGULAR MEETING
Lilac Room, Civic Center
505 South Vulcan Avenue
THURSDAY. MAY 23, 2002 at 3:00 p.m.
CALL TO ORDER/ROLL CALL
Chairman Kaiser called the meeting to order at 4:15 p.m. following a Closed Session
meeti ng.
Directors Present:
Edward Kaiser, Cindy Jacob, Phil Cotton, and Peter Cota-Robles
Director Absent:
Kerry Miller
Also Present:
John White, Carltas Co.; John McNair and Rod Linville, JC Resorts;
Leslie Suelter, City Finance Manager; Nancy Sullivan,
ERGA Accountant, and Pat Drew, Board 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 April 25, 2002.
Director Cotton moved approval, seconded by Director Jacob.
(Cota- Robles/Miller)
Approved 3-1-1
2.
Approve Management Agreement with JC Resorts.
(John McNair)
It was agreed that Chainnan Kaiser received authority from the Board to execute
the Agreement at its March 28, 2002 meeting. The Chairman is to discuss a slight
modification to the language with JC Resorts and awaiting receipt of an Opinion
Letter from the Tax Counsel.
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John McNair reviewed the Food and Beverage Agreement for the café and the Golf
School Agreement. He explained that JC Resorts leases the café from ERGA at a
rate of 20% of revenues, and ERGA receives 10% of the revenues from the golf
school. All expenses related to the golf school are carried by JC Resorts. The
proposed Food and Beverage Agreement is the same as the original executed four
years earlier, except for some language modification since it is not a start-up
agreement. The term has been changed to coincide with the Management
Agreement. Mr. McNair explained that there would not be a tax implication to
either agreement since JC Resorts pay all personnel, they are straight leases,
Chairman Kaiser said he would like General Counsel Glenn Sabine to review the
contracts.
nirector Cotton moved that the Board move forward with the Food and
Beverage Agreement and the Golf School Agreement and give the
Chairman the authority to sign the agreements. Seconded by Director
Cota-Robles. Approved 4-0-1 (Miller)
3.
Review Summary of April 2002 Revenues and Expenditures/Financial Statement.
Rod Linville/John McNair)
Mr. Linville reviewed the April Financial Statement for the Board members.
Revenues were $385,797 or 91 % of a budget of $426,157; Expenditures were
$208,8335 or 82% of a budget of$254,161; Net Income was $176,962 or 104%
of a budget of$170,329; Total rounds were 5,991 or 91 % of a budget of 6,583.
Year to date Net Income was $l,327,167 or 109% compared to a budget of
$1,222,047. Year to date Total Rounds were 57,486 or 98% compared to a
budget of 58,595.
4.
Update on Capital Reserve Fund.
(John McNair)
Mr. McNair reviewed the Summary of Capital Reserve and Expenditures Forecast
for the Year Ending June 30, 2002 showing an estimated balance of$12,468.48.
5.
F/Y 2002/2003 Budget.
(John McNair)
Director Kaiser moved that the Board adopt the budget for the coming
year 2002/2003, seconded by nirector Cota-Robles. Approved 4-0-1
(Miller)
6.
Bridge Update.
(John McNair)
Mr. McNair reviewed the report from the Project Manager, John Nabors.
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He reported that the bridge was erected on April 29 and he expects the cart trat1ïc
to use the bridge on Thursday morning, May 23. The project will be substantially
complete by June 1 with fencing, bollards, and the gates to be the last items to be
constructed in early June. The costs remain under budget by about $20,000.
Restrooms Update.
(John McNair)
Mr. McNair reviewed the report from John Nabors, Project Manager. He reported
that he (John Nabors) had held a team meeting on May 7 with the City, ERGA, the
civil engineer and representative of the building contractor. If Planning issues do
not hold up the process, they should have the restrooms permitted and approved
for installation in October and completed by November.
Report on solutions for Landscaping/Irrigation of the Monument Site
At comer of Leucadia Blvd. and Quail Gardens Drive (Phil Cotton/Mark Warren)
Director Cotton advised that the issues have been straightened out with Jack
Robson of Cornerstone Communities.
9.
Incidents and Accidents.
(Rod Linville)
Nothing to report.
10.
Potential Course Enhancements/Discussion/Direction Concerning Course
Operations, Conditions Needing Change.
Nothing to report.
11.
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 advised that with the resignation of Vice Chairperson Susan
Lamson it was necessary to appoint a new Vice-Chair and he was recommending
naming Cindy Jacob.
Chairman Kaiser moved that Cindy Jacob be nominated for the position
of Vice Chairperson, seconded by Director Cotton. Approved 4-0-1
(Miller)
12.
Next Meeting - Thursday, June 27, 2002 at 3:00 p.m.
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13.
Adjournment
Chairman Kaiser adjourned the meeting at 4:55 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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