2006-03-28
CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF REGULAR MEETING
TUESDAY. MARCH 28, 2006 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 4:09 p.m.
DIRECTORS PRESENT:
Edward Kaiser, Chris Hazeltine, Kerry Miller and Peter Cota-
Robles.
DIRECTOR ABSENT:
Cindy Jacob
ALSO PRESENT:
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 February 28,2006.
Director Hazeltine moved approval of the minutes of the regular meeting February 28,
2006 seconded by Director Cota Robles. Approved 3-1-1 (Miller & Jacob)
2. Review Summary of Revenues and ExpenditureslFinancial Statement/update on Capital
Reserves for February 2006. (Rod Linville/John McNair)
Mr. Linville reviewed the February financial statement.
1
Revenues for the month of February were $345,466 compared to a budget of $306,685 or
113% of budget; Expenditures were $241,127 compared to a budget of$25l,597 or 96% of
budget; Net income was $104,340 compared to a budget of $54,054 or 193% of budget;
Total rounds for the month were 5,184 compared to a budget of 4,586 or 113% of budget.
Year to date Income was $1,030,817 compared to a budget of $879,102 or 117% of budget;
Total rounds were 45,556 compared to a budget of 45,397 or 100% of budget.
Mr. McNair reviewed the summary of the capital reserves. Capital reserve at February 28
was $44,857.06; Club House reserve was $376,554.88 after an expense of $2580; Long
term capital reserve balance at February 28, 2006 was $79,309.61; Total all reserves was
$500,721.55.
3.
Review first draft of Proposed 200612007 Budget.
(Rod Linville/John McNair)
Mr. Linville said that in preparing the F/Y 2006-2007 budget he would like direction from
the Board as to whether it wants to go with increases across the board. The subject was
tabled to come back after discussion of the cell sites.
6.
Update on Cell Tower Discussions.
Item taken out of order.
(John McNair
Mr. McNair handed out drawings for another concept for the Cingular cell towers.
Originally it was agreed to put the cell towers on the top of the cart barn with the hayloft all
the way across. With the cancellation of the Nextel tower, Cingular objected to the cost of
installing in the reconstructed hayloft and wanted to shrink it down. Mr. McNair said he
objected to that and didn't want to bring the idea to the Board. He said he suggested to
Cingular that they go back to the driving range pole. Cingular agreed that that would work.
They particularly liked the fact that they wouldn't have to pay for the structure of the hayloft
in supporting the roof structure of the Cali barn, and most importantly, Cingular agreed to
stucco the side of the cart barn the same as the new clubhouse and have agreed to use the
pole on the golf range for the cell tower, eliminating the need to convert the hayloft of the
cart barn.
Director Cota-Robles asked if there was any other cell provider that may wish to come in
and if so, where would they go. Mr. McNair said he has contacted all the providers in the
area and none wish to come in.
Director Hazelton moved that the Board accept the alternative Cingular cell site
proposal as submitted. Director Cota-Robles seconded. Approved 4-0-1 (Jacob)
5.
Update on Status of Clubhouse Improvements.
Taken out of order.
(John McNair)
Mr. McNair reported that he had a budget for design, engineering, site development, fees
and permits, etc. of $894,000. Paid to-date out of the clubhouse expansion/capital reserve
2
account is $64,036.62 leaving a remaining balance of $829,963.38. Sources are: Capital
Reserve balance at 2/28/06 of $44,857.06; Estimated Capital Reserve through 9/30/06 of
$94,620.00; Long-Term Reserve Balance at 2/28/06 of$79,309.6l; Estimated Long-Term
Reserve through 9/30/06 of $31,540.00; Club House Reserve Balance at 2/28/06 of
$376,554.88; Future Cingular Lease Revenue of $255,000.00; for a total of $881,881.55;
Less Remaining Balance of $829,963.38 and 10% Contingency of $89,400.00 leaves a
Projected Capital Shortfall of$37,481.83.
Mr. McNair asked the Board if they wanted to increase the Capital Reserve Account, or the
Long Term Capital Reserve Account, for next year's budget. Or, the other way to do it
would be to borrow from the Operating Account as was done for the bridge. Chairman
Kaiser said that would be his personal preference versus the Long Term Reserve Balance.
Mr. McNair said to do that he would have to add another $100,000 to the shortfall balance.
Director Hazelton asked if a ten year lease with three renewals with Cingular would be
more productive. Mr. McNair said he would look into it.
Mr. Graff estimated that he should have the permits in by the first of May and estimates that
they will be able to break ground by May 22nd.
Mr. McNair asked the Board to give him some direction as to how it prefers paying for the
construction. Chairman Kaiser said he would prefer using some of ERGA's own cash and
leaving the long term reserve alone. He said there is $250,000 that could be earmarked for
the proj ect.
Mr. McNair said that the clubhouse will take priority for the operating costs. However,
Chairman Kaiser said they should not overlook the golf course, it should also have high
priority. Mr. Graff said that in his opinion he doesn't see any capital improvement that is
critical.
Mr. McNair noted that the major improvements have been taken care of - i.e. the bridge
over Quail Gardens, the bathrooms on the course and the cart paths. So, with reference to
the budget he will take the Long-Term Reserve out in both categories which will give a n
egative balance which they will worry about when they get to it around September.
Mr. McNair distributed diagrams of the proposed tables and chairs for the clubhouse and
patio. It was agreed to go with square tables seating four people and with rounders for
banquets seating eight.
3. FY 2006/2007 Budget.
Item continued from above.
Mr. Linville said he wanted the Board to have a clear picture of what they might be facing
this year before it comes out with any greens fee structure. Recently he had had the Ladies
Club request lower greens fees. The Men's Club was very interested in the answer from the
Board on that because they wanted to tag right along, they wanted the same thing that the
3
Ladies Club got. He said he felt that this year if the Board goes in with some future
increases they are going to hear about it.
Mr. Linville said he would do a course survey to see what neighboring courses are doing
this year, and will bring his recommendations back to the Board.
4.
Report on Course Enhancements
(Kent Graff)
Mr. Graff reviewed some of the on-going turf conditions and how they relate to the soils
and the water on a daily basis. One of the big things they are finding in most of their
samples is the sodium levels are going up, especially since they haven't had the type of
rainfall that they normally have. There is some real concern as to how they should address
this problem. He and Bob Dobeck and some of the agronomists that they work with are
trying to nail down some ideas that they might work with to get themselves back in line.
Mr. Graff reviewed some of the lab tests he had received back indicating the various sodium
levels on the course. They are looking at readdressing some of their programs for 2006-
2007 to focus more on the sodium issues. They have to now attack the soil. The
aerification program seems to be really working.
(a) Discussion of Over-Seeding for coming year.
Mr. Graff said he would like to table this issue, the reason being that he wants to do some
additional research in order to give the Board the best information he can get. He has a
meeting with a couple of superintendents next week who have gone from the old over-
seeding process to the non-aver-seeding process to learn the benefits and the things that
have not worked out for them, and the things they have had to do to recover from the loss of
the turf in the wintertime. He is looking at all his options to come up with a long term
program, and will bring a report back at the next Board meeting.
Chairman Kaiser said the focus should be on what is best for the course.
7.
lncidents and Accidents.
(Rod Linville)
Mr. Linville said he had one incident to report. A gentleman was coming into the parking
lot at 6:30 in the morning and was blinded by the sun and totaled his car when he hit a
concrete light fixture
8. 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.]
None.
4
9. Next Meeting - Tuesday, April 25, 2006 at 4:00 p.m.
10. Adjournment
Chairman Kaiser adjourned the meeting at 5:40 p.m.
Respectfully submitted,
~()~ -
Edw~rd O. Kaiser, Chairman of the Board
<0 );y,
:CVh-;~~Q..cAJ--
Patricia Drew, Board Secretary
5