2007-05-12
CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF SPECIAL l\/lEETING
Golf Course Clubhouse
Quail Gardens Drive
TUESDAY. MAY 15,2007 at 4:00 p.m.
CALL TO ORDER/ROLL CALL
Chairman Kaiser called the meeting to order at 4:06 p.m.
PRESENT:
Edward Kaiser, Cindy Jacob, Phil Cotton; Chris Hazeltine alld
Peter Cota-Robles being 011 of the Directors.
Director Cota-Robles arrived at 4: 15 p.m. and Director Cotton
at 4:25 p.m.
ALSO PRESENT:
John McNair, Rob Oosterhuis, Rod Linville and Kent Groff, JC
Resorts; Bill Dean, Nancy Sullivan, Joan Woods and Board
Secretory Pot Drew.
ORAL COMlVIUNICA TI ON l3 minutes for each speaker. Maximum 15 minutes for
oral communication.]
AGENDIZED BUSINESS ITEMS
1. Approve Minutes of Regular Meeting of March 27, 2007.
Director Jacob moved approval of the minutes of the March 27, 2007
meeting seconded by Director Hazeltine. Approved 3-0-2 (Cotton and
Cota-Robles arrived later)
2. Review Sununary of Revenues and ExpenditureslFinancial Statement/update on Capital
Reserves for March and April, 2007 (if April available). (Rod Linville/Jolm McNair)
Mr. Linville reviewed the financials for the months of March and April 2007.
For the month of March revenues were $411,754 compared to a budget of
$417,217 or 99% of budget; Expenditures were $278,615 compared to a
budget of $272,388 or 102% of budget; Net Income was $133,139
compared to a budget of $144,829 or 92% of budget; Total Rounds were
5,877 compared to a budget of 6,068 or 97% of budget.
Year to date Net Income was $1,104,247 compared to a budget of
$983,889 or 112% of budget; Total Rounds were 51,605 compared to a
budget of 51 ,398 or 100% of budget.
For the month of April Revenues were $404,070 compared to a budget of
$457,503 or 88% of budget; Expenditures were $216,370 corllpored to a
budget of $288,229 or 75% of budget; Net Income was $187,700 compared
to a budget of $169,274 or 111 % of budget; Total Rounds were 6,255
compared to a budget of 6,554 or 95% of budget.
Year to date Net Income was $1,291,946 compared to a budget of
$1,153,163 or 112% of budget; Total Rounds were 57,860 compared to a
budget of 57,962 or 100% of budget.
Total Capital Uses paid through April 30, 2007 were $753,264.51 compared
to a budget of $1 ,579,318.65 with a remaining balance of $845,209.74;
Projected Capital Reserve through June 30, 2007 is $27,554.00; Long-Term
Capital Reserve Balance through April 30, 2007 is $59,984.86; Projected
Long-Term Capital Reserve through June 30,2007 is $9,185.00;
Total Capital Sources from Clubhouse Lease $371,000.00, Lease #2
$160,000.00, Operation Funds $300,000.00 for a total of $927,723.86 Less
Remaining Balance of $845,209.7 4 for 0 Projected Capitol Surplus/ (Shortfall)
of $82,514.12.
Items 5 and 6 taken out of order.
3.
Review Budget for fiscal 2007-2008.
(John McNair/Rod Linvil1e)
The Board reviewed the proposed budget presented by Mr. McNair alld
determined they could not approve the rates and budget until the next
meeting (in line with the agenda). It was agreed to 0 $2 rote increase
across the board. Mr. McNair said he was concerned about raising the
week day rates and would prefer to raise weekend rates by $3 or $4.
Chairman Kaiser asked that a new scenario be put together for $2 across
the board with the exception of Southern California for Friday, Saturday and
Sunday. Everything else would be raised $2 across the board. He also
asked for a scenario to include $2 across the board with the exception of
the Men's and Ladies' clubs meetings on Tuesdays and Wednesdays.
Two scenarios to be presented at the special board meeting:
1. $2 across the board.
2. $2 across the board except for Men's and Ladies' Clubs
Chairman Kaiser said he would call a special meeting by the end of the
month to discuss and approve the budget.
4.
Encinitas Ranch Golf Course Marketing Plan.
(John McNair)
Mr. McNair distributed a revised marketing plan and explained the
changes.
5
Cell Tower Review
(John McNair)
Mr. McNair reported that he had made contact with a senior member of
Cingular's staff who was very positive that Encinitas would not suffer from
their cutbacks. He said that Verizon is not looking good.
6.
Update on status of Clubhouse Expansion.
(John McNair/Kent Grall)
Mr. Graff reported that the only thing the general contractor has to
complete is the carpeting. He said the contractor has done a fantastic job.
He is hoping that by June 8 the building will be handed over and will allow
JC Resorts to move in furniture etc. They are looking at maybe having the
grand opening Friday June 15 for the media and Thursday, June 28 for the
grand opening and ribbon cutting. The Board would meet prior to the
grand opening.
Mr. McNair explained what they are considering for the snack bar service.
They are suggesting that they do a sit-down service - lunch from 10:30 - 4
p.m. - as in a restaurant. They will have a breakfast menu for work in
service. He feels that whatever we want to do in the long run we should
start off doing. Will do china, glass and silverware but not linens. He said
that instead of calling it a "snack bar" they will call it "The Grill."
All room charges will go to ERGA. They will make an addendum to their
operating contract. Mr. McNair discussed prospective wedding events on
Saturdays. Chairman Kaiser said if they had a wedding that wished to use
the whole room to let them do so as long as golfers get service. The Board
agreed that they should start slowly and see how it works out. Director
Hazeltine explained what Parks & Recreation do with their parks and special
events.
Mr. McNair pointed out where they plan to install television sets.
7.
Update on financing of the Clubhouse Expansion.
(John McNair)
No discussion.
8
Report on Course Enhancements
(Kent Graff)
Mr. Graff reported on some of the action he is taking on the greens.
9.
Incidents and Accidents.
(Rod Linville)
Mr. Linville reported that he had one incident with a windshield on
Leucadia Boulevard.
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.]
Mr. Linville and Mr. Graff were excused from the meeting.
Chairman Kaiser said he would like to propose a bonus for the gentlemen
considering the tremendous job they have done with the construction of
the new clubhouse, the inconveniences and keeping the daily operation
running smoothly. The Board agreed to put the issue on the agenda for the
special meeting at the end of the month.
11. Next Mecting- To be determined by a poll oflhe Directors.
12. Adjournment
Chairman Kaiser adjourned the meeting at 6:05 p.m.
Respectfully submitted,
&~b~
L> . ..j/ I
I ".. /0// /-<LI..
\.. (Z t 1,'!,(/iJ/ ( /.( ~---~
I
Patricia Drew
Board Secretary
Edward O. Kaiser
Chairman of the Board