2006-01-24
CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF REGULAR MEETING
Lilac Room, Civic Center
505 South Vulcan Avenue
TUESDAY. JANUARY 24,2006 at 4:00 p.m.
CALL TO ORDER/ROLL CALL
Chairman Kaiser called the meeting to order at 4: 13 p.m. following the Annual Meeting.
DIRECTORS PRESENT: Edward Kaiser, Cindy Jacob, Kerry Miller, Peter Cota-Robles
and Chris Hazeltine, being all of the Directors.
ALSO PRESENT:
Chris Calkins, Carltas Co; 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 Special Meeting of December 13, 2005.
Director Hazeltine moved approval of the minutes of the December 13, 2005
special meeting seconded by Director Jacob. Approved 5-0.
2. Review Summary of Revenues and Expenditures/Financial Statement/update on
Capital Reserves for November and December 2005 (Rod Linville/John McNair)
Rod Linville reviewed the November and December financial statements stating
that November and December were very good months.
Revenues for the month of November were $361,985 compared to a budget of
$346,159 or 105% of budget; Expenditures were $246,112 compared to a budget
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of $276,330 or 89% of budget; Net income was $115,872 compared to a budget
of $68,795 or 168% of budget; Total rounds were 5,286 or 103% of a budget of
5,147.
Net income for the year to date was $668,857 or 102% of a budget of $652,723;
Total rounds were 29,927 or 98% of a budget of 30,608.
Capital Reserves were $10,927.33 after purchases of $4,944.37 for a new phone
system. Club House reserves were $381,127.38 after purchases of $869.00;
Total all reserves were $460,892.25.
December Revenues were $370,333 or 111 % of a budget of $333,984;
Expenditures were $246,192 or 98% of a budget of $250,381; Net Income was
$124,142 or 150% of a budget of $82,569; Total rounds were 5,101 or 111% of a
budget of 4,602.
December year to date Net Income was $792,998 or 108% of a budget of
$735,292; Total Rounds were 35,028 or 99% of a budget of 35,210.
Capital Reserve at December 31 was $21,749.81; Club House Reserve at
December 31 was $381,127.38; Long Term Capital Reserve Balance was
$71,141.91; Total all reserves was $410,019.10.
3.
Review ERGA Audit.
(Nancy Sullivan)
Ms. Sullivan briefly reviewed the Larry A. Gonzales, CPA. Inc. audit report for the
years ended June 30, 2005 and 2004. She advised that the only other item she
had to report was that every five years the City goes out to bid for a new audit firm
and they suggested that they include ERGA in the RFP.
Mr. Calkins said he felt the report was better than in prior years, more readable
and a good presentation. He said he did have one observation to make relative to
the Contingencies footnote relating to repayment of sales tax advances, footnote 8
on page 21. While this is a vehicle to sort of keep a snapshot in time, it does not
affect the golf course liability. However, there has been a repayment on that so
that the balance remaining is less than $1,316,000 and it might be useful to reflect
that reduction. It is outside the golf course but does affect what ultimately might
be paid by the golf course. Ms. Sullivan said she agreed 100% and in fact they
had discussed putting that information in the report but decided not to do so. Mr.
Calkins said that basically he believes it's where they get a coherent snapshot of
what's there and its relevance from the City's point of view. Once that obligation is
paid off all the net revenues accrue to the City. It's a way to keep a snapshot in
time of what's happening. Director Cota-Robles said he agreed with Mr. Calkins
that it would be good to include the relevant information because it completes the
picture. Ms. Sullivan said she will make a note for next year to add the
information.
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4.
Report on Course Enhancements
(Kent Graff)
Mr. Graff advised that they were about to go into their aerification season again.
Starting the second week of February they will employ the technique that they
started using last year where they will aerify half of the green one week followed by
a second aerification three weeks from that date of the other half. That way they
can allow for the golf course to be played on the unaerified portion of the green
with less impact on the golfers. They have had a favorable response from a
majority of the golfers so they are going to use the same program again in 2006 at
Encinitas and all of their other JC Resorts properties. Because of the time of year
they will allow three weeks for the green side that was aerified to heal up and then
will aerify the other half and then the pin placement will be located in that portion of
the green. Cooler temperatures don't allow for healing so fast. In the spring and
fall they typically allow for two weeks for healing.
Mr. Graff said that he did do some research on the consideration of possibly
putting in aerification system in the reservoir that is adjacent to the homes out on
#5 tee as well as the 4th fairway. The cost to do a permanent system would be
roughly two units costing about $10,000. That would be for the hard heads, the
wire, and the pumps but does not include the installation and the ongoing electrical
cost to keep the pumps running on a regular basis. He said that they did use a
"temporary" system referred to as a "trash" pump or a water pump. They created a
device where they could float the discharge out into the body of water and then
recycle the water through the trash pump, simulating an aeration of that area of the
pond. It seemed to be fairly effective and at this time it seems as though it could
be an ongoing way of treating the reservoir, unless it was something that they saw
recurring on a regular basis and then maybe they would need to address that with
a permanent system.
Director Cota-Robles agreed that unless it becomes a frequently occurring
problem the "temporary" system would be adequate.
Mr. Graff advised that the water rate has gone up again to $1.70/unit - it went from
$1.26 to $1.56 and now to $1.70. While they are trying to keep their water usage
down, it is having some negative effects with the salt levels tending to surface.
5.
Update on Status of Clubhouse Improvements.
(John McNair)
Mr. Graff advised that the architect is finalizing some plans with regards to the
mechanical and the kitchen layout design. Plans for engineering are ready to be
submitted. He is looking at the first week in February for completion and ready to
submit to the City. He is working with the contractor who will work out a schedule
so that construction does not interfere with play and not conflict with the dormer
construction for the cell towers.
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6.
Update on Cell Tower Discussions.
(John McNair)
Mr. Linville advised that John McNair is still waiting on Sprint and Nextel signing
the Letter of Agreement to share the construction costs on the cart barn and
occupy the space. That should be signed any day and hopefully should move
forward fairly rapidly after that. In addition the Cricket people were out looking at
the area with their surveyors and engineers. They are the ones looking at putting
in another pole next to the end of the driving range and putting their antennas
inside the pole. Mr. McNair has been talking to them about either an underground
vault over near the range building or rebuilding our range building altogether
making it larger to match up to the club house with stucco effect and having their
vault on the back end of the range facility in the front part of that building. He said
they would lose one or two hitting spaces on the far left end of the range if they go
above ground.
Mr. Linville said as a reminder he had been talking to the person at Wireless
Capital and they will not buy the leases until the towers are in operation.
7.
Incidents and Accidents.
(Rod Linville)
Mr. Linville advised that another car on Leucadia Boulevard heading east was hit
by a golf ball from hole #10. The golfer was advised of his responsibility although
he denied it was his ball. When he was told that the Sheriff would be advised and
that the golf course is not responsible, he said he would contact the lady driver.
It's hoped that he did.
Mr. Linville described several other incidents involving the security guard and
trespassers and two players who were upset about the procedure for the walk-on
list.
Mr. Linville said he had talked to the security company that works for the San
Dieguito Water District and was told it would cost about $15,000 to put surveillance
cameras in the parking lot. He will do some more research and report back at next
month's meeting.
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.]
Chairman Kaiser asked Mr. Linville if he had talked to the Ladies Club. He replied
that he did talk to them and they said they do have a web site and have had it for
years. Mr. Linville said he did offer his services if they wanted help to market the
Ladies Club or if they wanted assistance with the newsletter or anything else that
he could do. They have not asked for any help at this point.
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Mr. Calkins asked if JC Resorts does anything consciously to market to women.
Mr. Linville said yes, they do it through lessons, clinics and through JC Players
card program and through tournaments. Their coordinators/managers are
constantly talking to such groups as the Executive Women Golf Association, San
Diego County chapter, who receive discounted rates at all of JC Resorts'
properties except Encinitas Ranch.
In addition they do have flyers and brochures for beginners and ladies clinics on
the counter in the pro-shop, and also do some flyers through the YMCA, and both
female instructors have flyers on their programs and they do a lot of ladies clinics
as well.
9. Next Meeting - Tuesday, February 28, 2006 at 4:00 p.m.
10. Adjournment
Chairman Kaiser adjourned the meeting at 5:20 p,m.
Respectfully submitted,
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Patricia Drew, Board Secretary
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Edward O. Kaiser, Chairman of the Board
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