2006-09-26
ENCIN
RANCI-I
CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF REGULAR MEETING
Lilac Room, Civic Center
505 South Vulcan Avenue
TUESDAY, SEPTEMBER 26,2006 at 4:00 p.m.
CALL TO ORDEWROLL CALL
Chairman Kaiser called the meeting to order at 4:10 p.m.
DIRECTORS PRESENT: Edward Kaiser, Kerry Miller, Peter Cota-Robles and Chris
Hazeltine.
DIRECTOR ABSENT: Cindy Jacob
ALSO PRESENT: Chris Calkins, Carltas Co.; John McNair, Rod Linville
and Kent Graff, JC Resorts; 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 July 25, 2006.
Director Miller moved approval of the Minutes of the July 25, 2006 board meeting,
seconded by Director Hazeltine. Approved 3-1-1 (Cota-Robles and Jacob)
2. Review Summary of Revenues and ExpenditureslFinancial Statement/update on Capital
Reserves for July and August, 2006. (Rod Linville/John McNair)
Mr. Linville reported that for month of July revenues were $544,818 compared to a budget
of $552,678 or 99% of budget; Expenditures were $320,937 compared to a budget of
$331,404 or 97% of budget; Net Income was $223,781 compared to a budget of$221,174
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or 101% of budget; Total rounds were 7867 compared to a budget of 7,911 or 99% of
budget.
Net income for the year was $223,788 compared to a budget of $221,274 or 101% of
budget; Total rounds for the year were 7,867 compared to a budget of 7,911 or 99% of
budget.
Capital Reserve as of July 31,2006 was $111,207.80; Total Club House expense at July 31
was $35,725.58 and reserves were $326,248.83.
Long term capital reserve balance was $98,081.72; Total all Reserves were $535,518.35.
Mr. Linville handed out a corrected, final financial statement for the month of August,
2006.
Revenues were $496,021 compared to a budget of $523,577 or 95% of budget;
Expenditures were $312,355 compared to a budget of $322,225 or 97% of budget; Net
Income was $183,666 compared to a budget of $201,352 or 91% of budget; Total Rounds
were 7,329 compared to a budget of7,548 or 97% of budget.
Year to date Net Income was $407,447 compared to a budget of $422,626 or 96% of
budget; Total Rounds were 15,196 compared to a budget of 15,457 or 98% of budget.
Director Miller asked about the difference in rounds for August and August 2005. Mr.
McNair replied that it was about 90 rounds. He explained that it was supply and demand,
there are more new golf courses in Southern California. Mr. McNair said he would bring in
a sheet next month showing the new golf courses that have gone in Southern California -
there were six public C courses built since 1997 not counting the private courses. Probably
a total of around 15 courses.
Capital Reserve at August 31 was $125,647.63; Total Club House Expense for month was
$16,027.80 with Club House Reserve at August 31 at $310,221.03; Long Term Capital
Reserve Balance was $102,874.99; Total All Reserves was $538,743.65.
3.
Encinitas Ranch Marketing Plan.
(John McNair)
Mr. McNair said he was holding off on presenting his plan until next month.
4.
5.
6.
Report on Course Enhancements
Course Irrigation.
Potable Water to the Greens Project.
(Kent Graff)
(Kent Graff)
(Kent Graff /John McNair)
Items 4, 5 and 6 were taken together.
Mr. Graff said he had started aerification yesterday working half a green at a time. He said
he has also been doing a lot of work with the irrigation process. The reclaimed water has
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had some ill-effects to the turf. He said that it is well documented that as long as they are
using reclaimed water they are going to have some challenges. He has had conversations
with a group from San Elijo, Mike Thornton and his assistant Trisha. One ofthe things they
are working on is trying to develop some more data with regard to how the reclamation
water coming into the golf course and going into the reservoir is impacted by ground water
incursion and that sort of thing. They are coming up with some data determining what
might be some ongoing solutions. One of the solutions would be to at least go to potable to
the greens. That does come with a pretty significant cost and it's going to have some
disruptions. He said he did some calculations with up sizing some of the existing meters.
He will have some costs regarding capacity fees which he estimates to be about $70,000,
installation of more back-flow devices, the actual piping and irrigation to the greens
themselves all of which he estimates to be about $209,000. In a comparison to get a cost
analysis with regard to how much more water they would have to use, he did a relationship
to what they call "leeching," for the months of June, July and August. The leeching costs
for those three months came to approximately $9000. The irrigation costs just for irrigating
the greens would be normally about $3000. So just because of the importance of the
reclaimed water they are having to put out about an additional $10,000. So they would be
looking at a 30 year return on the investment of a potable system.
Mr. Calkins asked if some of the greens were more easily converted to potable water. For
example, some closer to where the meters are put. Mr. Graff said yes, particularly some
more adjacent to the streets would be easier.
Mr. Calkins said he was thinking that something that might be looked at was instead of
converting all of the greens see if he could find maybe seven that could be discretely done
and not have to hand bleach the others. He said the other thing is if the issue is with meters
he, Mr. Graff, may be able to buy capacity from the Ranch. He believes they have fifteen 2
or 3 inch meters. They can't be used for residential housing; they can only be used for
either agricultural or parks for landscape. The golf course could certainly buy them cheaper
from the Ranch than from the Water District.
Mr. Graff said there are still some things that they haven't touched upon but San Elijo is
very willing to help and support with the problem. He believes this is a big plus because
they don't want to be bad mouthed about reclaimed water any more than he does. He said
his focus right now is to ask them to help him. He has some options that he would like to
discuss at a future meeting to see ifthere are some other solutions.
7.
Update on Status of Clubhouse Improvements.
(John McNair)
Mr. Graff reported that the process is that he knows there have been two contractors
interested and possibly more today. There will be a pre-bid meeting on Tuesday so that if
there are any questions before opening the bids they can be answered. There will be a
public bid opening on October 9 at 10 o'clock. At that time they will proceed to the next
step of awarding the contract and are hoping to start construction by the 1st of November.
Based on construction and the schedule that they have proposed they have a completion
date of around the middle of March 2007.
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Mr. McNair handed out a revised capital expenditures list for 2005-2006, with Sources and
Uses. It showed a budget of $1,483,522.90 with a shortfall from income sources of
$42,908.87. He said that from these numbers they had pulled out $70,000 for golf shop
fixtures and $40,000 for trellises. These can be done later on. Mr. Calkins said that it had
been his experiences that there would be an issue/problem with the City Planning for design
review if the trellis is not included to begin with. Mr. Graff said that with the expansion
they have to put in a fire service to the club house.
8.
Update on Cell Tower Discussions.
(John McNair)
Mr. McNair reported that Cingular is still waiting on the design approval by the City. He
advised that he is still working with Verizon.
9.
Incidents and Accidents.
(Rod Linville)
Mr. Linville said it had been a quiet two months. He only had one homeowner on hole #4
who said his home has been hit approximately 60 times by balls from off the tee. He has
suggested realigning the tee box and point it at the lake instead of straight down the fairway.
He also suggested planting Italian Cypress trees along the tees to block any shots that could
go left. Mr. Linville said he told the homeowner that they would look into his suggestions
and give it considerable thought.
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.]
Director Miller said that he just wanted to say he would miss everyone. He is leaving the
City to become the new City Manager of the City of Folsom. Chairman Kaiser said there
was cake to celebrate that event. Everyone wished Director Miller well in his new venture.
11. Next Meeting - Tuesday, October 24,2006 at 4:00 p.m.
Mr. McNair said he won't be able to attend the October 24 meeting. The Secretary was
asked to look into when the meeting could be held.
12. Adjournment
Chairman Kaiser adjourned the meeting at 5:00 p.m.
Respectfully submitted,
r:L~~~
Patricia Drew, Board Secretary
~~...
Edw'ard O. Kaiser, Chairman of the Board
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