2007-01-23
CITY OF ENCINITAS
ENCHaTASRANCHGOLFAUTHORITY
MINUTES OF REGULAR MEETING
Lilac Room, Civic Center
505 South Vulcan Avenue
TUESDAY. JANUARY 23, 2007 at 4:00 p.m.
CALL TO ORDER/ROLL CALL
Chairman Kaiser called the meeting to order at 4:07 p.m. following the Annual Meeting
of the Corporation.
DIRECTORS PRESENT: Edward Kaiser, Cindy Jacob, Phil Cotton, Peter Cota-Robles
and Chris Hazeltine, being all of the directors.
ALSO PRESENT:
Chris Calkins, Carltas Co.; John McNair, Rod Linville, Kent
Graff and Kevin Larson, JC Resorts; Staff Member Nancy
Sullivan and Board Secretary Pat Drew.
ORAL COMMUNICATION
minutes for
None.
[3 minutes for each speaker. Maximum 15
oral communication.]
AGENDIZED BUSINESS ITEMS
1. Approve Minutes of Special Meeting of November 14, 2006.
Director Cotton moved approval of the minutes of the November 14,2006
Board meeting, seconded by Director Cota~Robles. Approved 5~0.
2. Review Summary of Revenues and ExpendituresIFinancial Statement/update on
Capital Reserves for November and December 2006. (Rod Linville/John McNair)
Mr. Linville reviewed the financial statements for November and December.
For the month of November 2006 Revenues were $344,220 or 98% of a budget of
$352,187; Expenditures were $241,731 or 85% compared to a budget of $285,911;
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Net Income was $102,489 or 155% of a budget of $66,276; Total Rounds were
4,985 or 98% of a budge,t of 5,071.
Year to date Net Income was $749,397 or 131% of a budget of $573,276; Total
Rounds were 31,597 or 105% of a budget of 30,073.
For the month of December 2006 Revenues were $341,535 or 96% ofa budget of
$355,416; Expenditures were $238,335 or 91 % of a budget of $260,704; Net Income
was $103,200 or IOc)of<. of a budget of $94,712; Total Rounds were 4,685 or 93% of
a budget of 5,020.
Year to date Net Income was $852,597 or 128% of a budget of $667,988; Total
Rounds were 36,282 or 103% of a budget of 35,093.
In response to a question by Chairman Kaiser, Mr. McNair explained that security
services were reclassified into Administrative & General from Golf Operations.
Mr. Graff introduced Kevin Larson, Assistant Superintendent at the golf course.
Mr. Graff reviewed the Summary of Capital Reserve and Expenditures as at
December 31,2006 which were $169,384.42. Club House Expansion prior month's
ending balance was $248,468.34. Purchases for the month of December were
$69,403.41 giving a Club House Reserve at December 31 of$179,064.93. Long
Term Capital Reserve Balance at December 31 was $114,565.08 and Total All
Reserves was $463,014.43. He also reviewed the Sources & Uses for the Club
House: Total Capital Sources are $1,310,779.93 less Remaining Balance of
$1,314,034.81 leaves a shortfall of ($3,254.88). He said that the budget figures do
not reflect some of the construction savings to date. Total net savings are
approximately $70,000. He said they do have a couple of things pending as far as
potential extras which would be a change to the existing restrooms and also a change
to relocating the partition wall which is going to be separating the private dining
area, and a change in some electrical design work. Relative to the restroom he said
that in the original plan there was going to be a partition or privacy wall that would
separate the dining area What they are now going to do is expand into that privacy
wall and include that in part of the men's restroom to give it a little more square
footage. This will allow them to put two additional urinals and an additional sink.
3.
Receive Audit Report.
(Nancy Sullivan)
The Annual Audit Report was accepted as presented.
4.
Encinitas Ranch Golf Course Marketing Plan.
(John McNair)
Mr. McNair said there were no changes since the last meeting. He said they have a
tournament postcard that they will be launching for the opening of the expanded
club house. Next month he expects to have more information.
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5.
Report on Course Enhancements
(Kent Graft)
Mr. Graff said that in hind sight it was a good decision not to over seed the course
He said the course is really playing well. While some parts of the course are "golden
brown" from the frost, as are all other courses, only one player has complained and
quit after nine holes.
In response to a question from Director Cotton about high salt, Mr. Graff said that he
had actually worked with San Dieguito Water District over the last three months.
He had them do some tests with the water at their source and the water that the golf
course actually receives at the sprinkler heads so they would have a comparison of
what was coming out of the plant and what they were actually receiving. He said
that they did have some changes after the water got into the reservoir and after they
irrigated through the system. He said he would bring all the information to the next
meeting at which time he will do his best to explain what was discovered.
Mr. Graff said that right now they are using a system to determine a better way to
see where they dry down in the soil. On three of the greens he has three sensors that
are actually sensoring the soil moisture. It's new technology that has come out that
is web-based so that the information is transferred via processors to a web page. In
this way they can actually access the water or the moisture level, the sodiwn levels
or salt levels in the soil and the soil temperature. They are determining how this
technology might be applied to the future. Right now it is on a test basis with no
charge to the golf course. This technology is being used quite a bit on some of the
higher end private clubs where obviously the expectations are much greater.
Mr. McNair announced that JC Resorts has signed an agreement with the Sheraton
Corporation to manage the Sheraton Hotel at the Carlsbad golf course.
6.
Update on status of Club House improvements.
(John McNairlKent Graft)
Mr. Graff advised that everything is on schedule and the completion date for the
Club House is May 11.
7.
Cell Tower Review
(John McNair)
Mr. McNair said that the telephone company is moving very slowly with the cell
tower construction and operation consequently this will delay the monies for the
club house expansion that had been budgeted. He said he did have an idea how to
get around it. The thought was that when ERGA paid for the bridge we borrowed
two months of funds from the operating account which was paid back at $10,000 per
month over 24 months. His thinking is that if he could do the same type of program
that was done five years ago for the Quail Gardens bridge for the club house they
could borrow one month from the operating account until they get the money back
from the cell tower to pay it back. He just wanted the Board to be aware of this so
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that come April and there is no cell tower money in hand the Board won't be
surprised. This is a possible course of action in that event.
Director Cotton asked what would happen if the lease did not come through. Ms.
Sullivan responded that it would just be a matter of paying back the cash to
ourselves. She said that the 5-year Look Back is finished now and we are paying the
golf portion of the CFD Bonds now on an on-going basis. As long as we keep doing
that the extra money will go to pay the sales tax. She wasn't quite sure whether it
was 50% or 100% would pay off part ofCarltas' bill and the balance would go to the
City. If we had to repay the operating account it would reduce that amount by about
$25,000/month.
8.
Incidents and Accidents.
(Rod Linville)
Mr. Linville said he had two incidents to report. One was a young man who came
around the comer from Quail Gardens onto Paseo de too fast and lost control
and swiped the fence. The only other incident was a complaint from a resident who
lives on hole #4 about his house being hit. He asked that a fence be put up along the
tee box blocking the home and a sign that the golfers should yell "fore" if they hit a
shot toward the house. He was referred back to his CC&R and the Homeowners
Association. He tried to say he didn't accept the CC&Rs.
Mr. Linville advised that they have put on a second security guard at this point
because of the construction; the south wall is completely off the building so there
is access to the building where they have their file servers and still run the Pro
Shop computer and register.
9. Directors and/or Manager Reports
[For reported topics not described on this agenda, State law prohibits Board
discussion, responses, and action. A Board member may ask questions, but
only to clarify what the speaker is reporting.]
None.
10. Next Meeting - Tuesday, February 27,2007 at 4:00 p.m. at City Hall.
11. Adjournment
Chairman Kaiser adjourned the meeting at 5:10 p.m.
Respectfully submitted,
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Edward O. Kaiser, Chairman of the Board
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Patricia Drew, Board Secretary
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