2005-02-22
CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF REGULAR MEETING
TUESDAY, FEBRUARY 22,2005 at 4:00 p.m.
Lilac Room, Civic Center
CALL TO ORDER/ROLL CALL
Chairman Kaiser called the meeting to order at 4:04 p.m.
DIRECTORS PRESENT:
Edward Kaiser, Cindy Jacob, Peter Cota-Robles and Chris Hazeltine
Director Miller joined the meeting at 4:16 p.m., being all of the
Directors present.
ALSO PRESENT:
John McNair, Rod Linville and Kent Graff, JC Resorts; Staff
members Leslie Browder and 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 January 25,2005.
Director Jacob moved approval of minutes of January 25 meeting, seconded by
Director Hazeltine. Approved 4-0-1 (Miller)
2. Review Summary of Revenues and ExpenditureslFinancial Statement/update on
Capital Reserves for month of January 2005 (Rod Linville/John McNair)
Mr. Linville reviewed the financial statement for the month of January.
Revenues for the month were $288,959 compared to a budget of $358,126 or 81 % of
budget; Expenditures were $236,208 compared to a budget of $256,314 or 92% of budget;
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Net Income was $51,792 compared to a budget of $106,779 or 51% of budget; Total
rounds were 4,441 compared to a budget of 5,464 or 81 % of budget.
Year to date Net Income was $732,604 compared to a budget of $870,762 or 84% of
budget; Net Income Including Cell Tower Income was $1,181,538 compared to a budget of
$905,762 or 130% of budget; Total Rounds were 38,314 compared to a budget of 40,723 or
94% of budget.
The rain played havoc with the number of rounds for the month.
Director Miller joined the meeting at 4:16 p.m.
Ms. Sullivan asked if the Board would like to ear-mark the cell tower income specifically
for the clubhouse improvements and explained her reason for the enquiry. She said that the
Board may wish to replenish the JC Resorts' Operating Reserves for the month that was
used for the Quail Gardens Bridge construction. The Chairman requested that the issue be
agendized for the next meeting.
Mr. McNair distributed a copy of the Capital Expense for 2004-2005. Have $60,000 to
spend on itemized projects before the end of the year in June. At end of year will have
$45,734 in the account.
3.
Report on Course Enhancements
(Kent Graff/Subcommittee)
Kent Graff reviewed the report from ISTRC System on the core samples that they had taken
from Greens 1, 4, 9 and 17 relative to the program of aerification. It was recommended that
he continue with the program of aerification every four months.
Mr. Graff reported that he had met with Directors Cota-Robles and Hazeltine regarding
some erosion damage at #17 and received some good advice from them. Assistant Golf
Course Superintendent Duane Conta engineered it and it's holding great.
Mr. Graff said he has met with the City's Inspector relative to problems at #6 and has met
with people from Barratt Construction who acknowledge that they have some problems to
rectify. They are going to go back and review their original grading and planting plans.
Some of their planting has not come in as it was supposed to do. Mr. McNair suggested
that they put in some trees before the new homeowners move in.
Mr. McNair discussed areas that they could make cuts such as in staff, to make up some of
the deficits. Director Miller said that he for one does not want to see any cut backs of
service or staff. The golf course is perceived as a quality course with quality personnel and
excellent maintenance. He believes that any cut backs because of budget projections will
hurt the course in the long run. The Directors were unanimous in their agreement with his
comments.
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Chairman Kaiser said he had never seen so much cooperation between the maintenance and
sales staff and congratulated both Kent Graff and Rod Linville. Mr. Graff said that he had
had tremendous support from Mr. Linville and his staff and that was key to their success.
4.
Update on Status of Club House Improvements.
(John McNair)
Mr. McNair said he wanted to talk about the interior design fee. He has two designers in
mind, one he has worked with before. Her fee was going to be $7,500 to do specification
sheets, elevation drawings, floor selections, countertop selections and color boards for
presentations.
In addition he has received another proposal from someone that Director Jacob knows. She
estimated it at about 60 hours to consult with her at $95/hour plus expenses. It would be
pretty close to $7,500 also. Mr. McNair said he will go back to her and see if she would
give a flat fee of, say, $6000. Director Jacob said she is really good and recommends her
highly. Chairman Kaiser said he doesn't mind going with the hourly rate. The Board
agreed on going with Bre' Ann Fox.
5.
Update on Cell Tower Site Discussions.
(John McNair)
Mr. McNair passed out an architectural drawing as well as a schematic of what Nextel is
proposing. He said that Kent Graffhad suggested using the idea of a barn with a hayloft as
seen at the Ecke Ranch. Mr. McNair got the architect to reduce the height from 25 feet to
23 feet which is more acceptable and which he would recommend the board going with.
Director Miller asked if they could get a rendition as seen from Leucadia Boulevard.
Chairman Kaiser said he liked the proposal but would also like to see what it would look
like from Leucadia Boulevard. Mr, McNair will bring the requested renditions to the next
meeting and a drawing showing a windmill for future consideration.
6.
Report on Condition of Windmill and Proposed Improvements.
(Peter Cota-Robles)
Mr. Graff said he has been trying to contact a person that Director Cota-Robles
recommended to do the repairs on the windmill. They have been playing phone-tag.
7.
Discussion of Holiday Rates.
(Ed Kaiser/John McNair)
Mr. McNair handed out a holiday-rate survey showing clubs' actions on holidays. The
Board determined that the club was competitive and would stay with charging holiday rates
in the week between Christmas and New Year. Chairman Kaiser said that he would also
suggest going with holiday rates on Martin Luther King Day and Veterans' Day.
8.
Incidents and Accidents.
(Rod Linville)
Mr. Linville said they had had an incident of graffiti, even though there was a guard on duty.
Board members agreed that he should stay with the current guard service.
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9. Potential Course Enhancements.
Already discussed under item 3.
10. DiscussionlDirection Concerning Course Operations, Conditions Needing Change.
Nothing.
11. 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.]
Nothing.
12. June 30, 2004 audit and the ERGA Bonds Official Statement - Info only. (Nancy Sullivan)
Ms. Sullivan briefly discussed the reports and said that if Directors had any questions she
could ask the auditor, Larry Gonzales, to come to a meeting. No action necessary.
13. Next Meeting - Tuesday, March 22,2005 at 4:00 p.m.
14. Adjournment
Chairman Kaiser adjourned the meeting at 5:24 p.m.
Respectfully submitted,
~ J}J<</
Patricia Drew, Board Secretary
~aL
Edward O. Kaiser, Chairman ofthe Board
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