1996-03-28
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CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF SPECIAL MEETING
THURSDAY, MARCH 28,1996,1:30 P.M.
505 SOUTH VULCAN AVENUE
CALL TO ORDER/ROLL CALL
City Manager/Director Wasserman called the meeting to order at 1 :40 p.m.
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PRESENT: Directors Ed Kaiser, Zathy Riggins, Lauren Wasserman, Alan
Archibald, David Wigginton, and John White
ABSENT: None
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ALSO P~ESENT: '1'2~~/.v--. ,tiUA<;...V--.
t~l){l(:) ~rn~y Roger Krauel, Asst. City Manager Jim Benson, Chris
('\) Calkins and Secretary for the Meeting Pat Drew
There being a quorum present the meeting was in order.
REGULAR AGENDA
1. Selection of Temporary Chairperson.
On motion made by Alan Archibald and seconded by David Wigginton, it was
unanimously agreed that Lauren Wasserman would act as temporary Chairman
until the permanent Chair is selected,
Chairman Wasserman stated that the Board would have a policy that all meetings
will, in the future, start on time as scheduled,
2. Briefing by City staff and Carltas on the origin of the Encinitas Ranch Golf
Authority (ERGA) and the relationship between ERGA and the overall
Encinitas Ranch project.
Assistant City Manager Benson gave an overview briefing on the development
agreement and explained that item 2.16 of definitions of the agreement outlined
the authority and requirements for the Golf Course governing entity (ERGA) and
explained why someone who works for the Ecke Company or a member of the
family has a built-in conflict of interest which eliminated Chris Calkins and John
White as voting members of the Authority. They therefore wanted a representative
to whom they could communicate about proposed board action.
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Mr. Benson gave a brief review of the golf course project using overhead
projections. Mr. Calkins pointed out the errors in the aerial map of the Ranch
Planning Areas - said they hadn't been noticed until after the printing. Mr.
Benson briefly reviewed the Encinitas Ranch property project stating that there will
be from 834 to 1031 residential units with a power center covering 73.8 acres and
. . J r~) described the differences between land use alternatives A and B. The '*1'0.(
UtI l.~', commercial area will cover 475,000 sq. ftfand any additional will require further PA . T
I traffic studies. He also gave a description of the Williamson Act which had Ct;;r:w..
governed the use of the land involved, and outlined its constraints which delay the fD
sale of homes. If the Williamson Act is canceled the homes can be sold much
faster.
Spring '98:
Fall '98:
'99
To date the project is on schedule. The major dates are:
May: Award construction contract and issue revenue bonds.
One of the main functions of the Board will be the selling of the golf
course revenue bonds.
Open the Green Valley Commercial center.
Construction begins on Green ValleylWest Saxony
Construction begins on Leucadia Boulevard interchange upgrade.
Community Facility District (CFD) bond sale #2 - $8.8 million.
Complete Leucadia Boulevard and interchange open to through
traffic.
Open Phase II of Ranch Commercial Center (RCC)
Ecke's decide on location of flower business - stay where they are
and upgrade or move entire operation to new site.
CFD Phase III bonds - amount tbd.
October:
2000
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2001
Golf Course Financial Structure: Jim explained that Carltas develops the golf
course and turns it over to the City in July of '97. That will be 178 acres of valuable
land being turned over to the City.
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In years 1-10 surplus revenue will be credited to the Ranch.
Years 10-16 - 50% of surplus to City/50% to Carltas.
Years 16 until bonds mature - 100% to City
After bond maturity; for 25 years - 50/50 sharel
After 50 years, 100% of net revenues flow to the City.
A portion of the Mellow Roos will be paid by the golf course revenue.
The golf course will be a 6700+ ft. Championship course. There will be access
from both sides of the parking lot but there will not be a through-way until Leucadia
Boulevard interchange is completed. They anticipate having reclaimed water
available from the San Elijo JPA to service the course. The golf course has the
capacity to pay for the bonds and the road construction needed. Anticipate greens
fees will average $27. Mr. Calkins stated that the course is supposed to generate
a lot of economic strength.
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Briefing by the City .~.ttorney on the Requirements of the Brown Act (Open (~h'
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Meeting Law) and Conflict of Interest Code.
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Roger Krauel introduced himself as Counsel to the ERGA.
Reviewed for the Board the requirements of the Brown Act and the responsibilities
of the Board members. Discussed rules of operating as a government and public
official. The Brown Act is not a limitation on the exercise of official duties. It
should not be looked at as an impediment to governing and making decisions.
Conflict of Interest Rules were explained. Political Reform Act is a set of rules
which determines when a government official is disqualified.
4. Review Status of the Golf Course Project.
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Director Alan Archibald gave a brief overview of the status of the golf course
project. Said they had interviewed contractors on Wednesday, March 27. The
contractor will be hired by Carltas and will provide financing to build the course.
Once constructed the course will be purchased with Revenue_ B9nds..fun,!s issu:d pI tltlD
by ERGA. Constructed will begin in May and will be~ Bermuda GrassWFiich f-\\ J
needs to go in by September. The one contractor will be completing both the 'i.l)
course and the roads. Following the completion of everything - about end of
October - will have a six months grow-in period. Will then turn over the course to i:<" rP c':'\
~ the operator who will prepare for play. David Wigginton is doing an RFfiIRRequest 1)/
() <7'JJ for ~s) for operators. Responses are due Friday. The Operator will
~ \v\f \\qb take over the golf course in June/July '97 and have ready to go in September '97.
t>;\~ \ A requirement is that the course must be easily maintained and within the budget.
j) \)' It depends on how much money there is as to how we do the cart barn and club
\ house. Car/tas will pick the contractor but ERGA will select the operator.
Contractor will finance the project until we take over in July '97.
Schedule:
May:
October:
Oct.-June:
June '97:
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Begin construction
End construction on Course.
Construction of Cart Barn and Club House.
Turn over the Course to the Operator.
5. Review Draft Bylaws and the Joint Exercise of Powers Agreement that
established the ERGA.
Chairman Wasserman briefly reviewed the draft Bylaws. Counsel Krauel advised
that we would have consolidated Bylaws and Joint Exercise of Powers Agreement
for the next meeting, or certainly the following meeting.
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6.
Consider Approval of Bylaws, setting Regular Meeting dates, and
Compensation amounts for Category 2 Board Members.
Chairman advised that the Bylaws had some work to be done on them but would
have available for consideration at the next Board meeting.
Arrived at no conclusion relative to compensation for Category 2 Board Members.
It was unanimously agreed to set regular Board meetings for 3:00 p.m. on the first
and third Thursdays of the month. The proposed Bylaws call for two Board
meetings in the month. The expectation is to go to one meeting per month once
the course is constructed.
7. Next Meeting
3:00 p.m., Thursday, April 4, 1996.
8. Adjournment
The Chairman adjourned the meeting at 3:12 p.m.
Respectfully submitted,
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Patricia Drew, Secretary
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Lauren M. Wasserman, Temporary Chair
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