2001-01-25
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CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF REGULAR MEETING
Carnation Room, Civic Center
505 South Vulcan Avenue
THURSDAY. JANUARY 25, 2001 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, Alan Archibald, Kerry Miller and David Wigginton.
Susan Lamson.
John White, Carltas Co. (joined meeting at 3:20 p.m.); Rod Linville and
Mark Warren of JC Resorts; Accountant Nancy Sullivan and Board
Secretary Pat Drew.
ORAL COMMUN ICA TION [3 minutes for each speaker. Maximum 15 minutes for
oral communication.]
None.
AGENDIZED BUSINESS ITEMS
1.
Approve Minutes of Special Meeting of December 14, 2000.
Director Miller moved approval of the December 14, 2000 Minutes, seconded by
Director Kaiser. Approved 4-0-1 (Lamson absent)
2.
Information item: Certification of Annual Report for ERGA Revenue Bonds, 1996
Series A. (Nancy Sullivan)
Ms. Sullivan advised that the Certification of the Annual Report was an informational
item. There were no questions.
3.
Review Summary of December 2000 Financial Statement and Summary of Capital
Reserve and Expenditures. (Rod Linville/John McNair)
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Mr. Linville reviewed the December 2000 financial statement. Total revenue was
$331,936 compared to a budgeted amount of $288,610 or 115% of budget;
expenditures were $218,453 compared to a budgeted amount of $208,786 or 105%
of budget. Net income was $111,198 compared to budgeted amount of $77,540 or
143 % of budget. Total rounds were 5,083 compared to budgeted 4,900 or 104% of
budget. Year to date rounds are 36,281 or 102 % of budget.
4.
Continue Discussion of Rate Issue.
(Rod Linville)
Chairman Kaiser recommended that the issue be continued to the next meeting when
John McNair and Chris Calkins are present.
5.
Approve Proposed 2' Drainage Easement along Holes 2, 3 & 4.
(Alan Archibald)
Director Archibald moved that the Board authorize Kerry Miller to sign the revised
easement document, seconded by Director Kaiser. Approved 4-0-1 (Lamson absent)
John White joined the meeting at 3:20 p.m.
6.
Approve Easement for Encinitas Ranch/New Alignment of Paseo De Las Flores/ERGA
(Lot 53) (Alan Archibald)
Director Archibald moved that the road easement be approved and authorize Kerry
Miller to sign, seconded by Director Kaiser. Approved 4-0-1 (Lamson)
7.
Fountain in Pond at Hole 8
(Mark Warren)
Chairman Kaiser asked what impact a pond would have on the energy use. Although
there would be a timer on the pond which would allow for it to be shut off, and it
would not affect the aeration of the pond because there is a secondary system, it was
agreed that now is not the right time to proceed with this project. Mark Warren was
requested to put it on the capital expenditures for 2001-2002.
8.
Status of Requirement for a Landscaping Plan for Hole 14 and Slope Area
(Mark Warren/Phil Cotton)
Mark Warren advised that he has put together a plan and submitted it to a City
representative to take to the Planning Commission. The project on Hole 14 is now
completed. The cost was $93,831, less the $35,000 from Cornerstone, for a total of
$58,831 which was a little higher than the budgeted amount.
9.
Incidents and Accidents.
(Rod Linville)
Nothing to report.
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Capital Improvement Issues/Discussion (Wish List):
(a)
Restrooms; Preliminary Design/Sewer Line for Restrooms at the south end of
the golf course.
Club House
Other
(b)
{c)
Chairman Kaiser reported that John McNair and Mark Warren had brought to his
attention a I ist of various capital expenditure items that had been approved by the
Board during the year. This included $106,601 worth of items that matched the
amount at the beginning of the year from the capital expense total of 2.5% of
budgeted gross revenue. Director Wigginton said that he understands that the 2.5%
was for capital replacement not for buying new things. Director Archibald pointed
out that the capital reserve account, as prescribed in the financing documents, reads,
"ERGA shall be the sole authorized user of capital reserve funds and it shall be used
to pay for the capital expenditures identified in the approved annual business plan.
ERGA shall not withdraw funds from the capital reserve account for any other purpose
and shall not co-mingle the capital reserve funds with any other accounts of ERGA or
the City. Provided, however, ERGA may withdraw funds from the capital reserve
account on a temporary basis to cover deficiencies in the operating expenses." So,
his understanding is that these funds are for capital improvements.
Chairman Kaiser said that his understanding of capital improvements would be new
purchases or replacements. Accountant Nancy Sullivan agreed that it would be
replacements and equipment. She said that the agreement states anything over $1000
is capitalized. Mark Warren advised that except for the 2 Cool Covers for the
Equipment storage ($8,000 - which may increase to $10,500) in progress, the only
item that is in the process of being acted upon is the central irrigation system ($3,000)
that was ordered in December. Ms. Sullivan advised that $6000-$9000 is added to
the capital reserve account each month. E.g. $8,082.78 was added for the month of
December 2000. Consultant fees for the Quail Gardens bridge is also being charged
as a capital ization cost for the bridge.
Chairman Kaiser advised that per Mr. Warren's original enquiry, the bottom line is
that ERGA has $128,017 less the $8000 being spent on cool covers, plus about $8000
per month so at the end of the fiscal year should have about $160,000. $100,000 of
that amount must be reserved for the bridge. Therefore, it is necessary for the Board
to make adjustments to the 2000/2001 capital expenditure budget for the anticipated
$60,000 left at the end of the fiscal year (June). He asked Mr. Warren to come back
to the next meeting with a revised list for this year and to carryover the balance of the
list to 2001-2002. Chairman Kaiser asked the Board if they would approve a policy
that stipulates that the Board approves the budget at the beginning of the year but in
order to spend it the Board must approve each item before it is acted upon. In this
way the Board can keep a better control of the expenditures. Director Miller said he
was not comfortable with this since it appeared to him that the Board is attempting to
micro-manage. He suggested that a better way would be to look at it as a mid-year
budget review at the next meeting. In the future, at the start of the next fiscal year the
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Board needs to be conscious of the possibility of overspending so that when items like
the bridge or the rest rooms come to the board for discussion there would be some
financial disclosure as to cost and impact on capital expenditures. Chairman Kaiser
agreed that this would be a good procedure to follow.
Mr. Warren reminded the Board that they have already approved some additional
expenses: $15,000 for hydro-seeding the slopes and $10,000 to reinstall irrigation at
holes 2 and 4 for a total of $25,000. He can hold off on this until July if the Board so
wishes.
It was agreed that there should be an item on the next agenda to cover a mid-year
review of the 2000-2001 capital expenditure budget.
Potential Course Enhancements.
Director Archibald said his issue might be a course correction rather than an
enhancement. He had received a report that when they graded the school district site
which is west of the south pond, there was water coming through the slope on the
school site. They tested it and tested the water in the pond and it appeared to be the
same water. He believes that the pond was built about 1954 and no leaks have been
reported since that time. According to the Corps of Engineers the pond had six feet of
clay linin.g. Director Arc~ibald ~'1~!d. h~:( thinks that what might have. h.appened is that a '?J/b ¡Of
rodent, either ground squirrel or"g~, may have dug through the lining and created a ')'9
leak. He believes it should be investigated but is not sure whether it is an ERGA issue \ I
or not. The lake is ERGA property. The water belongs to the Eckes. Mr. Warren said
he believes the leak is at the surface.
John White advised that there was significant irrigation on the top mesa before it was
graded so there could be leftover water. Mr. Archibald said they also had springs
coming out of the slopes on hole #2 between 2 and 5. It may be just ground water
following the sandstone until it perks up.
Discussion/Direction Concerning Course Operations, Conditions Needing Change.
Mr. Linville reported that:
a)
They need to start looking at what can be done with the parking lot lights
because trucks and cars keep bumping into them and breaking the lights.
He keeps getting complaints from first time golfers about the lack of signs.
They don't have any monuments yet.
b)
Director Archibald advised that he has talked to the Planning Department. They have
not made the signs or monuments for the whole project a very high priority. Probably
won't go to the Planning Commission before March.
Director Archibald said that relative to the parking lot lights, the foundations that were
put in were for overhead lights. However, because certain citizens did not want the
parking lots lit up at night, they went to bollards. They are low-level lighting.
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Patricia Drew, Board Secretary
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However, maybe the whole issue should be revisited. It would be very expensive to
have overhead I ights. Mark Warren advised that they had obtai ned a quotation for
nice looking generic--type low lighting, no-flood lights (similar to street lighting) and
utilizing the monuments already installed, for $46,000.
Director Wigginton said they had experienced the same thing in the City's ballparks.
They have the tall lights. The cars are going to hit them whether they are tall
overheads or low. The solution is similar to what has been done at the Ralph's
shopping center parking lot. About 3-3 Yz feet up they have surrounded their parking
lot lights with brown concrete and cobble fascia. So, if a car hit the bollard they
wouldn't hit the lighting.
Chairman Kaiser asked Mark Warren to work with Director Wigginton to come up
with some suggestions and bring back to the Board for consideration.
Since this is a potential safety issue it was agreed that it should take priority.
Directors and/or Manager Reports
Chairman Kaiser said that according to John Nabors the bridge goes before the
Planning Commission on February 22 and he will be able to report back at the March
meeting.
[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.]
Next Meeting - Thursday, March 1, 2001 at 3:00 p.m.
March 1 It meeting is the rescheduled February meeting.
Discussion of date for March meeting (Directors Miller, Archibald and Wigginton
have conflict with March 22.)
No meeting in March unless a need arises.
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Adjournment.
Chairman Kaiser adjourned the meeting at 4:06 p.m.
Respectfully submitted,
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Edward Kaiser, Chairman
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