2002-04-25
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CITY OF ENCI N IT AS
ENCI N IT AS RANCH GOLF AUTHORITY
MINUTES OF REGULAR MEETING
Lilac Room, Civic Center
505 South Vulcan Avenue
THURSDAY. APRIL 25, 2002 at 3:00 p.m.
CALL TO ORDER/ROLL CALL
Chairman Kaiser called the meeting to order at 3:05 p.m.
Directors Present:
Director Absent:
Also Present:
Edward Kaiser, Cindy Jacob (replacing Susan Lamson), Kerry Miller, and
Phil Cotton (replacing David Wigginton).
Alan Archibald
John White, Carltas Co.; John McNair, Rod Linville and Mark Warren,
JC Resorts; Staff members Leslie Suelter and Nancy Sullivan; 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 Regular Meeting of March 28,2002.
Unable to approve minutes due to the absence of a quorum from the March 28,
2002 meeting.
2.
Review Summary of March 2002 Revenues and Expenditures/Financial Statement.
(Rod Linville/John McNair)
Mr. Linville reviewed the March Financial Statement.
Total revenues for the month were $381,893, or 98% of a budget of $387,959;
expenditures were $223,719 or 93% of a budget of $241,364; net income was
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$158,l43 or 109% ofa budget of$144,9292; total rounds were 6087 or lOO% of
a budget of6,095;
Net income for year to date was $1,150,205 or 109% of a budget of $1,051,7] 8;
total rounds year to date were 51,495 or 99% of a budget of 52,0 12.
3.
Capital Reserve Fund.
(John McNair)
John McNair reviewed a summary of the capital reserve and expenditures forecast
for the year ending June 30, 2002.
Capital reserve account balance was $155,887.51 plus $14,950.27 for month of
March. Purchases were landscape entry for $25,000 leaving a balance of
$145,837.76
Estimated future capital reserves for April, May and June, 2002 are $50,073.92.
Total estimated capital purchases for year ending June are $188,500 for an
estimated balance at June 30 of$7,411.70
Purchases moved to year ending June 30, 2003 are $85,000 leaving an estimated
balance of$57,588.30.
4.
FlY 2002/2003 Budget.
(John McNair)
Mr. Linville handed out copies of three proposed budgets for fiscal year
2002/2003: one for no green fee changes, one for an increase of $l to residents
and JC Resorts members, and one for plus $2 for residents and JC Resorts
members. The resident fees were not changed last year. He reduced the total
budget rounds to 7l,171 from 72,000 for fiscal 2001/2002. His recommendation
was that no increases be given to the public.
Director Miller said that looking at the numbers he didn't see any compelling
reason to make a rate adjustment. He said he felt the Board would be in a much
better position next year to take a comprehensive look at maybe some general fee
adjustments across the board. He said he felt that the current rate structure is
serving quite well.
Mr. White said that Carltas could support that. He said he was concerned about
the overall trend of golf rounds in the county being in decline, so probably not a
good idea to raise fees.
Director Miller moved, seconded by Chairman Kaiser, that staff be
directed to prepare the fiscal year 2002-03 budget for ERGA consistent
with the no-green fees change strategy; and that they be authorized to
make whatever revenue or expenditure adjustments necessary to
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accommodate that and bring back to the Board at the next meeting for
review. Approved 4-0-1 (Archibald)
Chairman Kaiser said he would like to set a target of 7l ,500 rounds for the year.
5.
Update on Potential Refinancing of Bonds.
(.John McNair)
Ms. Suelter summarized the issue for new Directors Jacob and Cotton and gave an
update for the Board. She said the short-term treasury rates, which is where
ERGA would be investing the dollars from the refinancing, have not come back up;
in fact they keep getting worse. So, ERGA is not in a condition today to do a
refunding. She said they had also looked at whether or not they could get the
refunded bonds insured, since if they are insured they are more marketable.
Stone & Youngberg talked to an insurance company, but they declined.
6.
Bridge Update.
(John McNair)
Mr. McNair said that construction is going very well. It's on time and on schedule.
The City Council approved closing Quail Gardens Drive for two weeks from April
29.
Mark Warren advised that John Nabors had come across an as-built for that area
and that there is a very good chance that there will not be a need for the pipe
under the road beneath the bridge to carry the water to the restrooms. There was
a sleeve that was put in, on paper, to carry the water across. They hadn't found it
and need to get with Phil Cotton to get approval to do it. lf they can find that
sleeve then there will not be a need to install pipe under the road.
7.
Restrooms Update.
(John McNair)
Chairman Kaiser said he had received a letter from John Nabors dated April 12,
2002, which stated that he had been approached by John McNair with a request to
assist with the processing of the two new restroom buildings planned for the 21ld
and 14th tees. He was requesting a new professional services authorization from
the Board similar to that executed for the coordination effort for the re-grading of
the l4thtee.
Mr. McNair reviewed the needs for help from John Nabors saying there will be
three challenges that they have to get through with the two restroom facilities: 1)
they have to get electricity to the restrooms because the Board decided to use
electric hand dryers; 2) they need to have sewer lines located and connected
within ten feet of where the buildings are going to be placed; and 3) they have to
have potable water for the basins.
Me McNair said he felt it would be a good idea to get John Nabors involved since
he is already involved with the bridge project. Mr. Nabors believes it would not
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take any more than 30 hours of his time, and he would bill at $l25 an hour, which
is the same as his contract for the bridge, but not to exceed $4000.
Chairman Kaiser said he was in favor of accepting John Nabors' services.
Chairman Kaiser moved, seconded by Director Miller, that the Board
authorize him, as Chairman, to sign the letter of engagement from John
Nabors. Approved 4-0-1 (Archibald)
8.
Incidents and Accidents.
(Rod Linville)
Mr. Linville reported on an incident whereby an individual playing hole No.2 was
looking for his ball down between hole No.2 and No.5 in the rough when he was
hit on the head with a golf ball hit from No.5 tee. The player did yell "fore" and
the player in between the holes did duck but the ball caught him in the head
causing much bleeding. His playing partner called 911 on his cell phone and within
three or four minutes the paramedics from the fire department were there, treated
him and took him to Scripps Emergency. Mr. Linville did call him at home the next
day. He said he was feeling fine although very sleepy.
Mr. Warren reported on a second incident at hole l6, which occurred between a
gentleman and his wife who were playing in a foursome. The wife didn't get her
ball over the crest of the hill. The husband went to the top of the crest of the hill
and indicated to his wife the direction that she needed to play. She played and hit
her husband right in the eye. They took him to the emergency room where he
needed stitches and an x-ray in case there was bone damage.
Mark Warren also reported on an incident where a young boy who had just got his
driver's license, proceeded (in his words) to lose control of his truck on the straight
part of Quail Gardens between Leucadia Boulevard and Club House Drive. He
proceeded into the golf course going through the split rail fence and onto No. l1
tee. Still out of control, coming back off the golf course through the median and
taking out a bunch of hill trees, going up the slope on the left side of Quail
Gardens Drive, coming back down and taking out two more trees before he came
to a stop. The boy's father has contacted the golf course and will reimburse the
course for the damages.
Mr. Linville reported that one morning at 4:00 a.m. he found a vehicle parked at
the golf course and three men on the course coming from difIerent directions. He
called the Sheriff s Office who came and took the report. The men said they were
playing night golf but his (Mr. Linville's) contention was they were casing the area
to see what they could steal. They were threatened with arrest for trespassing if
they come back.
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9.
Potential Course Enhancements/Discussion/Direction Concerning Course
Operations, Conditions Needing Change.
Mr. McNair asked Mark Warren to discuss a letter received from Jack Robson of
Cornerstone regarding what is supposed to take place with the landscaping around
the new sign at the comer of Quail Gardens and Leucadia Boulevard. In the letter
he states that "the Encinitas Ranch Golf Authority will assume the responsibility for
supplying the water source for the irrigation at the site and for paying the monthly
water bill." An incident came up while he (Mr. Warren) was on vacation where the
irrigation water was running at 8 0' clock in the morning. Being reclaimed water,
that is a no-no because it was unmanned so San Elijo Joint Powers Authority
contacted him since he is the certified reclaimed water supervisor for the entire
Encinitas Ranch irrigation system. Because of the agreement with Cornerstone for
them to take the Ranch water, that irrigation system became "our" system. The
San Elijo Joint Powers Authority is uncomfortable with this situation. Mr. Warren
said he wanted to bring to the Board's attention that it has three options: 1) he
shuts off the water, cuts the pipe and discontinues giving them the source, and
Cornerstone then comes back to the City and finds a new point of connection and
meter, etc. 2) leave it the way that it is and the maintenance crew of the golf
course take care of the maintenance of that area and the Homeowners Association
then reimburses the golf course. and 3) leave it as it is and the Board and he
assume the responsibility of that irrigation water - all aspects of it from irrigation
heads not being broken, leaks not running down into the storm drains system, it
not running during the day when pedestrians are on the trail using the water to
wash their faces off, dogs drinking it etc.
Chairman Kaiser asked Mr. Warren to work with Mr. Cotton to see what they could
figure out and report back at the next meeting.
10.
Directors and/or Manager 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 Susan Lamson had sent him a resignation letter
effective December 2001.
Next Meeting - Thursday, May 23.2002 at 3:00 p.m.
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12.
Adjournment
Chairman Kaiser adjourned the meeting at 4:26 p.m.
Respectfully submitted,
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Patricia Drew, Recording Secretary
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Edward Kaiser, Chairman of the Board
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