1996-11-21
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CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF REGULAR MEETING
THURSDAY, NOVEMBER 21,1996
CALL TO ORDER/ROLL CALL
Vice Chair Kathy Riggins called the meeting to order at 3:04 p.m.
Members Present: Directors Kathy Riggins, Lauren Wasserman, Alan Archibald and
David Wigginton.
Also Present: Chris Calkins, John White, Manager Jim Benson, General Counsel
Roger Krauel, Secretary Pat Drew, and Bob Dobek of J.C. Resorts
Member of the Public Present: John Conover
Absent (temporarily):
Chairman Ed Kaiser, Chris Calkins and John White.
. There being a quorum the meeting was in order.
ORAL COMMUNICATION
Mr. John Conover brought to the Board's attention some of the ideas he has for an
enhancement program for the golf course. In particular he is thinking of soliciting
donations of plant materials (trees, flowering plants etc.) and calling upon volunteers to
put the program into effect. He was asked to discuss further with Directors Archibald and
Wiggi nton.
REGULAR AGENDA
1. Approve Minutes of Special Meeting of October 17, 1996
Director Wigginton requested that the word "sod" in the last paragraph on page 2,
sixth line, be removed since his department had only had experience with Yuma Bermuda
seed and not with sod.
On motion by Director Archibald, seconded by Director Wasserman, the minutes
were approved with the above noted "correction." - 4.0
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2. Briefing on Concepts for a Public Relations/Marketing Plan for the Golf Course
(Paul Reed)
. Chris Calkins and John White arrived at this point in the meeting.
In the absence of Paul Reed, Bob Dobek reviewed the guide list for the marketing plan
his company had prepared for promoting the golf course. He indicated that press
releases will be a critical element in the public relations program and for public
awareness.
Director Ed Kaiser arrived at this time.
One part of their program will be to create some synergy with J.C. Resorts and their on-
going public relations and publicity activities - they do a lot of things in the media for
various activities. It is a good buy in with golfers in other areas. They have a very
focused plan for advertising the course. The Encinitas Ranch Golf Course will be
introduced in their next monthly golfing calendar as "coming soon."
Director Kaiser asked if they were going to be including gift packages for pre-opening
round prizes for non-profits to auction off. It would give the winners a chance to play the
course before the general public and promote public awareness. The moneys would go
to the charities, of course. Item was referred to next meeting for discussion by the Board
as a possible additional item for the promotional plan.
3.
Report on a Time Frame for Addressing the Course Rating Issue
(Bob Dobek)
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Mr. Dobek briefly discussed the issue of course rating. He explained that the actual
rating takes place close to when the course is opened to the public. A committee could
be set up to handle the rating issue. He has made some enquiries to both SCGA and
Southern California Public Links Golf Association. Public Links is more prominent in Los
Angeles and Orange Counties. They do not have any courses in San Diego. Every
course in San Diego is a member of the SCGA. Mr. Dobek distributed a handout which
showed the differences between the two organizations. Both groups are very capable in
what they do. They are not really in direct competition, they both almost support each
other.
Chris Calkins suggested that Bob Dobek from J.C. Resorts meet with Mr. Beardsley of
the Encinitas Golf Association, to get a better feel of the two organizations from a golfers
point of view.
Director Wasserman made a motion recommending that both groups be invited to
come in successive months to make a presentation and to be sure to invite the
people who have indicated their interest by attending previous board meetings.
Motion seconded by Director Wigginton. The recommendation was unanimously
accepted.
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Bob Dobek requested time for discussion of a non-agendized item regarding an
equipment leasing item. Manager Benson asked the Board to add the item to the end of
the agenda since it was an issue that had come up in the last 72 hours based on
discussions with the vendors between Bob Dobek and David Wigginton. The item
related to some potential bids for proposals from equipment operators that, in the process
of doing the proposals, made proposals that are contingent upon commitments by the
end of November. General Counsel Krauel advised the Chairman that since this
information had come up in the past 72 hours it could not have been on the agenda which
had to be posted 72 hours ago, the Brown Act permits the addition of this item if action
has to be taken before the next meeting, on a 4/5th vote.
Director Wasserman moved that the item regarding equipment leasing be added to
the agenda and was seconded by Director Riggins. Unanimously approved.
Item was added as 3a.
3a. Mr. Dobek projected on the screen a list of equipment pieces that were included in
the original RFP.
Both Companies (Toro and Jacobson) have agreed to hold to their 1996 prices until next
year if given a verbal commitment. However, if we go through with the lease
arrangement everything still has to work out in favor of the City before actually committing
to it. The lease agreement does not need to be signed until we take delivery. Will
furnish the Board with a copy of a blank lease agreement for review and approval.
Director Wasserman made a motion that the Board accept the low bid proposal as
outlined with the terms and conditions, and that staff or JC Resorts be authorized
to send a letter of commitment locking up the offer. Motion seconded by Director
Riggins and unanimously approved.
It was noted that no lease payments will be due until equipment is received.
4. Methods/Structure to Deal with Cost Overruns on Golf Course Construction.
(John White/Chris Calkins)
Manager Benson explained that this item was placed on the agenda at the request of
Carltas.
Chris Calkins said he felt the subject issue should be reviewed as to how they will be
approached.. Plans have not been signed yet although they only have irrigation to go.
He stated that everything will be reviewed by City staff and after final pricing received will
come back to Board with request to approve. Explained that whether approved by Board
or not, Carltas is "on the hook" for the costs since they are on a fixed-bid contract.
Director Riggins asked how much are we looking at right now. Mr. Calkins said he
currently has about $150 - 180,000 in cost over-runs for grading, remediation, clearing
and grubbing, and miscellaneous work. However, work is going well. In general it is all
going along fine.
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Director Wasserman asked how the over-runs are paid back and when. Advised that it
comes out of cash flow after paying the revenue bond, but before paying the CFD.
Manager Benson explained the payback process. It was concluded that a report on the
final signed contract, and any overrun issues, should be brought back to the Board at a
future meeting.
5.
Approval of Change Orders
(Jim Benson/Alan Archibald)
Manager Benson read from the contract between Environmental Golf/Hazard and Carltas.
Under the General Condition, item 1.14 defines change orders as: ".......... all change
orders relating to golf course work shall also require the prior written approval of the
Authority and all change orders relating to the public work (Leucadia Blvd.) shall be
subject to the approval of the City to the extent required by Section 406 to the Acquisition
Agreement (part of the CFD). Only the President of Carltas Management, which is the
partner of the Company, shall be authorized to execute change orders on behalf of the
Company."
We are now setting up the process for procedurally getting the ERGA Board to approve
the Change Orders.
Manager Benson suggested that the Board authorize staff, Alan Archibald, to approve all
change orders that have no impact on the quality of the course. It was clarified that all
cost implications of change orders are the responsibility of Carltas.
Director Wasserman said he is comfortable if we get something on the agenda that
outlines change orders that resulted in more costs.
Director Wasserman made a motion that change orders be brought back for Board
approval on a consent calendar for any changes that result in cost over-runs or
quality issues. Directors Riggins and Archibald seconded and motion was
unanimously approved.
6. Discussion of a Memorandum of Understanding (MOU) between Carltas/Ecke
Family and the City of Encinitas, to Include "Why the Need for an MOU."
Chris Calkins/Jim Benson)
Chris Calkins presented an oral report on why Carltas feels that an MOU is needed to
clarify the intent of the Development Agreement. After discussion, the Board agreed to
continue the consideration of the MOU at a future meeting.
7. Directors and/or Manager Reports
No reports.
8. Agenda Items for Next Meeting:
a) Review of Budget Costs and Change Orders. (make a standing item)
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b) Discussion of Policy related to requests from the public (including non-
profits) for donations of golf packages.
c)
Continue Discussion of the Content/form of a Memorandum of
Understanding (MOU) between Carltas/Ecke Family and the City of
Encinitas.
d) General Discussion of other Policies that ERGA should consider adopting.
9. Next Meeting - Thursday, December 5, 1996 at 3:00 p.m.
10. Adjournment
Meeting adjourned by the Chair at 4:45 p.m.
Respectfully submitted,
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Kathy Riggins
Chairperson
Patricia Drew
Meeting Secretary
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