2004-10-12
RANCH
CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF SPECIAL MEETING
Lilac Room, Civic Center
505 South Vulcan Avenue
TUESDAY, OCTOBER 12, 2004 at 4:00 p.m.
CALL TO ORDER/ROLL CALL
Chairman Kaiser called the meeting to order at 4:10 p.m.
DIRECTORS PRESENT:
Edward Kaiser, Cindy Jacob, Phil Cotton and Peter Cota-Robles.
Kerry Miller joined the meeting at 4: 15 p.m. All directors present.
ALSO PRESENT:
John White, Carltas Co; John McNair, Rod Linville and Kent Graff,
JC Resorts; Staff 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 Special Meeting of August 31,2004.
Director Cotton moved approval of the minutes of the Special Board meeting of
August 31,2004, seconded by Director Jacob. Approved 4-0-1 (Miller)
2. Review Summaries of August and September, 2004 Revenues and ExpenditureslFinancial
Statement/update on Capital Reserves. (Rod Linville/John McNair)
Mr. Linville reviewed the August and September financials.
August revenues were $480,337 or 95% of a budget of $507,272; Expenditures were
$269,716 compared to a budget of $287,971 or 94% of budget; Net Income was $206,586
compared to a budget of$218,268 or 95% of budget; Total rounds were 7,448 compared to
a budget of7,362 or 101 % of budget.
1
Year to date Net Income at August 31 was $447,268 compared to a budget of $467,308 or
96% of budget; Total Rounds were 14,923 compared to a budget of 15,230 or 98% of
budget.
Capital Reserves at August 30 were $89,777.34
Long Term Capital Reserve Balance at 1 % of golf revenue is $9,816.21.
Total Clubhouse expense to date is $9,000.00 for the architect.
Revenues at September 30, 2004 were $343,389 compared to a budget of $375,550 or 91 %
of budget; Expenditures were $263,060 compared to a budget of $263,514 or 100% of
budget; Net Income was $78,479 compared to a budget of $111,003 or 71 % of budget;
Total Rounds were 5,084 compared to a budget of 5,437 or 94% of budget.
Year to date Net Income at September 30 was $528,347 compared to a budget of $582,811
or 91 % of budget; Total Rounds were 20,007 compared to a budget of 20,667 or 97% of
budget.
Director Miller joined the meeting at 4: 15 p.m.
Mr. McNair reviewed the Capital Reserve and Expenditures as at September 30, 2004
which were $33,515.08 after purchases of $66,379.84; There are approximately $89,500
expenditures left for the fiscal year. Long term capital reserve balance is $13,250.09.
Projected Capital Reserve at June 30, 2005 is $135,783.00 with a Capital Expense vs.
Account Variance of$46,283.00.
Mr. McNair said that in addition they will be getting $437,500 in cash for the purchase of
the cell site leases.
Kent Graff gave an update on the greens and landscaping improvements.
3.
Report on Tree Enhancement! /Markers
(Subcommittee)
Mr. Graff said that there was concern about the #15 tee. He did visit the area to see how
they might resolve the problem. He said there is an existing grove of Eucalyptus trees
primarily behind the 14th green, and looking at what they have existing and how they might
tie into the grove it might be appropriate to continue the grove down and around the tee area
which would then provide the height and elevation for those individuals who are trying to
hit shots down onto the street. They might want to consider adding 50 or so trees of similar
size. Mr. Cotton said the plan sounds reasonable.
Mr. McNair said they are thinking of going to the legal department to see if they can
strengthen the language of the posted signs indicating golfers hitting down towards the
houses will be prosecuted, etc.
2
4.
Clubhouse Improvements.
(John McNair)
Mr. McNair said he has asked John Nabors to give him a report on the status of the club
house improvements so the directors can be kept apprised of what is happening. This will
be about a two year process. It was agreed that John Nabors report will be attached to the
meeting agenda along with the financials.
On a question from Mr. McNair, Director Miller said that the Board would like to be
involved in the selection of colors and materials, etc.
5.
Update on Cell Towers.
(John McNair)
Mr. McNair said he is still negotiating with Nextel; they don't want to pay for the
replacement lighting in the parking lot nor provide cell phones for the operations staff. So
he told them their monthly rate would be $2600/month.
Mr. McNair said they would be getting $435,500 for the sale ofthe cell site.
Chairman Kaiser said he would entertain a motion to approve Resolution 2004-01.
Director Jacob moved approval of Resolution 2004-01, seconded by Director Cotton.
Approved 5-0.
RESOLUTION NO. 2004-01
A RESOLUTION OF THE ENCINITAS RANCH GOLF AUTHORITY
AUTHORIZING THE CHAIRMAN OF THE BOARD TO SIGN AN EASEMENT
AND ASSIGNMENT AGREEMENT WITH UNISON SITE MANAGEMENT LLC,
FOR THE ASSIGNMENT OF EXISTING CELL SITE LEASES
WHEREAS, The Encinitas Ranch Golf Authority is receiving monthly revenue from
existing cell site leases on the golf course with Spring PCS Assets, LLC, and Pacific
Bell Wireless, LLC; and
WHEREAS, the Board has determined that it would be in the best interest of the
Authority to assign this revenue to Unison Site Management, LLC, in exchange for a
lump sum payment.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the Encinitas Ranch Golf
Authority as follows:
The Chairman of the Board is authorized and directed to sign the attached "Easement
and Assignment Agreement" with Unison Site Management, LLC.
PASSED AND ADOPTED at the regular meeting of the Encinitas Ranch Golf
Authority held on this 12th day of October, 2004, by the following vote:
3
AYES:
Edward Kaiser, Cindy Jacob, Kerry Miller, Phillip Cotton and Peter
Cota-Robles, being all of the directors.
(
6.
Incidents and Accidents.
(Rod Linville)
Mr. Linville reported an accident with a cart which resulted in about $1000 in damages to
the cart.
7. Potential Course Enhancements/Direction Concerning Course Operations.
Kent Graff reported on his over seeding program.
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.]
Ms. Browder gave an update from Tom Johnsen relative to the golf course bonds. It was
agreed to hold a special meeting in two weeks to meet with Mr. Johnsen.
9. Next Meeting - Tuesday, October 26, 2004 at 4:00 p.m.
No meeting in November and December 14 meeting to be held in the Golf Course Club
House with a tour of the course prior to the meeting.
10. Adjournment
Chairman Kaiser adjourned the meeting at 5:02 p.m.
Respectfully submitted,
/) '~
(~A. /.\
Icr~.>lvL- 0'---'0.- ( )( ~vJ
Patricia Drew, Board Secretary
~~~
Edward 6. Kaiser, Chairman of the Board
4