2007-03-27
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CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF REGULAR MEETING
TUESDAY. MARCH 27, 2007 at 4:00 p.m.
Lilac Room, Civic Center
505 South Vulcan Avenue
CALL TO ORDER/ROLL CALL
Chairman Kaiser called the meeting to order at 4:05 p.m.
DIRECTORS PRESENT:
Edward Kaiser; Cindy Jacob, Phil Cotton, Peter Cota-
Robles and Chris Hazeltine, being all of the Directors.
ALSO PRESENT:
John McNair, Rod Linville and Kent Graff, JC Resorts; Bill
Dean, Staff Member 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 Regular Meeting of Febnlary 27,2007.
Director Cotton moved approval of the minutes of the February 27, 2007
meeting, seconded by Director Hazeltine. Approved 4-1-0 (Jacob)
2. Review Smllillary of Revenues and ExpenditureslFinancial Statement/update on Capital
Reserves for February, 2007. (Rod Linville/Jolm McNair)
Mr. Linville reviewed the summary of the February financial report.
Revenues for the month were $302,784 compared to a budget of $341.888
or 89% of budget; Expenditures were $248,359 compared to a budget of
$264,495 or 94% of budget; Income for the month was $61,027 compared
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to a budget of $77,394 or 66% of budget; Total Rounds were 4,509
compared to a budget of 4,967 or 91 % of budget.
Net Income Year-to-date was $971, 109 compared to a budget of $839,060
or 116% of budget; Total Rounds were 45,728 compared to a budget of
45,330 or 101% of budget.
Totals for month were lower than budgeted due to a couple of rainy days.
March is looking better.
Capital Reserve at February 28 was $187,893; Club House Reserve at
February 28 was $19,261.48 after expenditures of $136,099.32; Long term
Capital Reserve Balance was $120,704.63; Total All Reserves was
$327,7 69.17.
3.
Encinitas Ranch Golf Course Marketing Plan.
(John McNair)
Mr. McNair discussed his thoughts for marketing the course with the opening
of the expanded clubhouse. Chairman Kaiser agreed with him that it may
be better to wait until after Carlsbad has opened its course to do any big
marketing. He also agreed that the announcement of the opening of the
clubhouse should go out as planned. Director Cotton said he agreed with
Chairman Kaiser. The clubhouse will be of benefit for tournaments and
local organizations that want to have their meetings there. He felt that
ERGA's money should be held back because at some point in time people
are going to get frustrated with the cost of Carlsbad. They will have played
it one time and then if we do any advertising we just want to remind people
that we are here and available.
Director Cotton asked if a grand opening with ribbon cutting etc. was
planned. He was told it definitely was planned to invite the community and
have special attractions. Council members will be invited to cut the ribbon.
It was agreed that a week day would be preferable for the opening,
followed by an open house the following day.
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Cell Tower Review
(John McNair)
Mr. McNair said he talked again with Cingular. They have two other sites in
Southern California they have been working on and all have been frozen. It
looks like they are going to try to put in 50 sites in 2007 and another 25 in
2008 with remaining 125 going away. He said he will be calling his contact
at the end of April to get a decision on where we stand. He said he has
also been trying to get in touch with Verizon to get them to go as well.
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Coming back to the budget, Mr. McNair said that with the foregoing we
are $255,000 shy of the original budget.
5.
Update on status of Clubhouse Expansion.
(Jo11l1 McNair/Kent Graff)
Director Hazeltine asked if any photographic art is planned for the
clubhouse. He referred to the line item for photography in the budget, and
was told that it was for photographing the golf course and the property or it
could be for some type of golf art.
Chairman Kaiser asked Mr. Dean if he had any thoughts. He responded
that he would prefer to keep to a golf theme and maybe do some
idealized work that people are used to. Mr. Graff suggested some historical
pictures of the ranch such as they had in the "old" pro shop. Mr. Linville
said they have two different areas and could have historical pictures in the
golf shop and have golf pictures throughout the seating/dining area.
Historical pictures could include Encinitas such as downtown.
Mr. McNair said, looking at the plans there is very little space to hang
pictures due to the mostly glass walls.
Mr. Graff said they are looking at a completion date of around May 28. He
said he wants to compliment Pacific Commercial Construction on their
efforts to man and staff the project. They have had framers literally with the
stucco company right in behind them. They have really done everything
they possibly can to expedite and make their efforts as timely as possible.
6.
Review financing of the Clubhouse Expansion.
(John McNair)
Mr. McNair said he wanted to review the Capital Expenditures/Sources & Uses for the
clubhouse. With the hold on the Cingular transaction that $255,000 of the Sources is gone.
In the past for the building of the Quail Gardens Bridge they used cash from the Operating
Funds which the way their Management Contract reads is that they are to keep two future
months of operating expenses in the cash account. Encinitas Ranch has been so great that
they have never had a problem. He said they can do that again so long as it is paid back
within a timely fashion. Since they have no other options at this point his recommendation
is to again borrow from the Operating Funds account. Chairman Kaiser said we can do that
again and program ourselves to allocate a celiain amount to replenish the cash reserves back
to a normal level before the sales tax advance.
Chairman Kaiser moved that the Board authorize the use of up to $300,000
from operating cash reserves to cover the cost shortages for the completion
of the clubhouse expansion, subject to discussion with Carltas as to how
quickly the operating funds can be replenished back to their normal level,
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and not to the detriment of the pay back of sales taxes, seconded by
Director Cotton. Approved 5-0.
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Mr. McNair suggested that they look at replenishing at the rate of $10,000 a
month for 30 months, hoping that they sell another cell tower before then.
Mr. Graff asked if the Board would like to meet at the Pro Shop for the next
Board meeting. Chairman Kaiser agreed that it was a good suggestion.
7.
Report on Course Enhancements
(Kent Graft)
Mr. Graff said that once the clubhouse expansion is completed he plans to
look at his goals for 2008 and work on further capital improvements and
asked the Board to give him some direction as to how they would like him
to proceed by way of e-mail communication. Director Cotton suggested
that it might be a good time to update the last wish list and bring back to
the Board at the next meeting to get its feedback.
8.
Incidents and Accidents.
(Rod Linville)
Mr. Linville said he had nothing to report for the month.
9. 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 said he would like to take the opportunity to thank Bill
Dean and JC Resorts for the wonderful event they put on in his behalf.
10. Next Meeting - Tuesday, April 24, 2007 at 4:00 p.m. at the Clubhouse.
11. Adjournment
Chairman Kaiser adjourned the meeting at 5: 12 p.m.
Respectfully submitted,
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Patricia Drew, Board Secretary
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Ed\vard O. Kaiser, Chairman of the Board
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