2001-11-15
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CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES of SPECIAL MEETING
Lilac Room, Civic Center
505 South Vulcan Avenue
THURSDAY, NOVEMBER 15, 2001 at 3:00 P.M.
CALL TO ORDER/ROLL CALL
Chairman Kaiser called the meeting to order at 3:10p.m.
Directors Present:
Directors Absent:
Also Present:
Edward Kaiser, Susan Lamson, David Wigginton.
Director Miller joined the meeting at 3:30 p.m.
Alan Archibald.
John White, Carltas Co.; John McNair, Rod Linville and Mark
Warren of JC Resorts; Staff Members Leslie Suelter, Nancy
Sullivan and Board 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 Meetings of August 30, 2001 and October 11, 2001.
Director Lamson pointed out that in Item 5 of the October 11 minutes there was
duplicate language. The Secretary agreed to remove the duplication.
Chairman Kaiser moved approval of the two sets of minutes, seconded by Director
Wigginton. Approved 3-0-2 (Miller, Archibald)
2.
Approve Revisions to Management Agreement.
(Leslie Suelter/John McNair)
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Ms. Suelter reviewed the changes and language of the proposed revised Management
Agreement including the tax resolution, which had been written by Bond Counsel Bill
Madison, and reviewed and approved by JC Resorts' Attorney. This item will also
approve the Board's desire to increase the Capital Reserve amount that is set aside
each month.
i)
Resolution No. 02-02 Approving:
1) an Amendment to the Definition of "Operation and Maintenance Costs" in
the Indenture of Trust Agreement with U.S. Bank Trust; and
2) an Amendment to the Golf Course Consulting and Management Agreement
with JC Resorts Increasing the amount of the Capital Reserve and Clarifying
the Calculations and Release of the Annual Percentage Fee.
Chairman Kaiser moved that the Board approve resolution No. 02-02 and that a
(:opy of the correspondence from the legal counsel be attached to the minutes,
seconded by Director Lamson. Approved 3-2 (Archibald and Miller absent)
3)
i)
Authorization to Fund the Construction of a Golf Cart Bridge and Other Related
Improvements using $240,000 of the" Reserve for Operating Expenses;" and
ii)
Approval of a Plan to Restore the Reserve for Operating Expenses Over Time.
(Leslie Suelter/John McNair)
Chairman Kaiser distributed a copy of an e-mail report from John Nabors on the status
of the Quail Gardens Road Bridge including the current status of the budgeted items
according to the contract between ERGA and Carltas Companies. The Chairman
requested the Secretary to make the report a part of the minutes. Mr. White advised
that Carltas had issued a check in the amount of $11,783 for the permit and
inspection deposits.
Ms. Suelter advised the Board that the issue before them is formal authorization to use
the operating cash reserve for the purpose of financing the construction of the bridge
and other necessary capital improvements that the Board would like to do. Legal
Counsel Bill Madison had advised that this was a legitimate use of these funds. His
one recommendation was that the Board does in fact restore the operating reserve
within a reasonable amount of time. This time period was not specifically defined.
However, the finance team felt that given previous direction by the Board that ii
wished to get this paid off within four years, they used that as the way to what they
felt would be reasonable to restore the operating reserve. This would work out to be
about $5000 per month. Payments to begin after finishing paying for the bridge.
Director Miller joined the meeting at 3:30 p.m.
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4.
Chairman Kaiser moved that the Board approve the proposed plan as outlined in the
agenda report prepared by Ms Suelter and Mr. McNair, seconded by Director
Lamson. Approved 4-1 (Archibald)
Review Summary of October 2001 Revenues and Expenditures Financial Statement.
(john McNair/Rod Linville)
Mr. Linville reviewed the Summary Financial Statement for the month of October
2001. Total revenue was $322,566 compared to a budgeted amount of $359,267 or
90% of budget; Expenditures were $266,753 compared to a budget of $273,257 or
98% of budget; Net income was $$55,814 compared to budget of $84,343 or 66%
of budget; Total rounds were 4,943 compared to a budget of 5,360 or 92% of budget.
Year to date revenue was $1,644,505 compared to a budget of $1,671,840 or 98% of
budget; expenditures were $1/058,436 compared to a budget of $1,075,856 or 98%
of budget; year to date net income was $582,140 compared to budget of $589,317 or
99% of budget; Total rounds were 24,981 compared to a budget of 25,803 or 97% of
budget.
Mr. Linville advised that for the month of November they believe they are seeing a
turn around. For the first ten days of November they are ahead in number of rounds.
Director Miller asked Mark Warren about the condition of the greens. Mr. Warren
described what they had done to the problem greens and hoped it would be good for
a considerable time to come.
Chairman Kaiser complimented Mr. Warren on the great job he had done on the 15th
green.
In response to a question Mr. McNair said that Encinitas is doing the best in the whole
county. Other courses in the county are down 25%.
5.
Capital Improvement Adjustment and Budget
(john McNair)
Mr. McNair passed out the schedule for the Capital Budget based on 3%, and one on
4%, for the rest of the year of capital expenditures. After reviewing the two
schedules Mr. McNair said he would recommend a 4% reserve.
Mr. McNair said he had good news about the bathrooms. He had discussed with the
Board the desire to put a concession stand out on the course due to the fact that liquor
could not be transported across the road. That law has just been appealed and they
can now transfer alcohol across the road. The guests, however, cannot buy
something and take it across the road. They would put a sign at the road crossings that
1/ open containers are not permitted past this point." They could therefore sell liquor
on the other parcel where the roads cross. His suggestion is that they do not have to
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go with a bathroomlconcession on that parcel of land which would save about
$20,000.
Mr. McNair said that rather than buying new equipment they could lease any new
equipment.
Chairman Kaiser moved that the Board adjust the reserve from 2 112% to 4% for the
balance of the fiscal year and include items listed on the Capital Expenditure Budget
presented, seconded by Director Lamson. Approved 4-1 (Archibald)
Landscape: Entry Way
(Mark Warren)
Mr. Warren introduced Landscape Architect Greg Stone. Mr. Stone said they had
looked at existing material and tried to stay with it. He described various trees and
bushes he was recommending using. (Director Miller stepped out from the
meeting.) Mark Warren is to prepare an irrigation plan.
Chairman Kaiser moved that Mark Warren proceed with the landscaping plan as
presented, seconded by Director Wigginton. Approved 3-0-2 (Archibald and Miller).
7.
Cell Towers
(John McNair)
Mr. McNair gave a brief report on the cell tower and said he is looking at a feasibility
plan. He will know more for the next board meeting.
8.
Update on Quail Gardens Road Bridge
(John McNair)
Item covered in item 3 above.
9.
Incidents and Accidents.
(Rod Linville)
Mr. Linville reported one incident of a physical altercation on the golf course where
they had to call in the Sheriff's Department.
10.
Potential Course Enhancements.
None.
11.
Discussion/Direction Concerning Course Operations, Conditions Needing Change.
Mr. McNair advised that they would be charging holiday rates for the day after
Thanksgiving. This would amount to another $3500 in additional revenue.
Chairman Kaiser said this was left to the discretion of JC Resorts as to when they
charge hol iday rates.
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12.
13.
14.
Directors Reports.
[F:or 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.]
t'Jone.
Next Meeting - Thursday, December 20, 2001 at 3:00 p.m.
Unanimous decision to cancel the December meeting.
Adjournment.
Chairman Kaiser adjourned the meeting at 4:45 p.m.
Respectfully submitted,
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Patricia Drew
Reporting Secretary
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Edward Kaiser
Chai rman of the Board
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