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1997-06-26 CITY OF ENCINITAS ENCINITAS RANCH GOLF AUTHORITY MINUTES OF SPECIAL MEETING THURSDAY, JUNE 26, 1997 at 3:00 p.m. CALL TO ORDER/ROLL CALL Chairman Ed Kaiser called meeting to order at 3:10 p.m. Members Present: Directors Alan Archibald, Ed Kaiser, Lauren Wasserman, and David Wigginton. Director Kathy Riggins joined the meeting at 3:55 p.m. Also Present: Chris Calkins and Charlie Kahr of Carltas Co.; Scott Bentley of J.C. Resorts. Staff: Manager Jim Benson, General Counsel Roger Krauel, Finance Manager Leslie Sue/ter and Recording Secretary Pat Drew. ~ Public Present: John Conover representing a Rotary Club group, Buck Smith, and Art Beardsley, President of the Encinitas Golf Association. ORAL COMMUNICATION Mr. Art Beardsley thanked Director Archibald for conducting three members from his association on a tour of the golf course. He said he would also like to have an LPGA Seniors Tournament held here, and thanked the board for its courtesies while the discussions on representation were going on. REGULAR AGENDA 1. Approve Minutes of Regular Meeting of May 15, 1997 Director Archibald moved, Director Wasserman seconded, that the minutes be approved as presented. Approved 4-0. 2. Review Proposed Logo for Final Decision. (Scott Bentley/Ron Miriello) Scott Bentley advised that he has been coordinating design of logo with Cornerstone Communities (agency for Car/tas Co.) in order to establish some continuity with logos that will be used on the Ranch development and Golf Course. Has another meeting set for next week and expects to have a logo to bring back to the Board for final approval at July Board meeting. Mr. Calkins explained the advantages of having a consistent logo for the area. 3. Authorization to Set up Joint Bank Accounts with Operations Manager (J.e. Resorts) for Capital Reserves and Operating Accounts (Leslie Suelter) Ms. Suelter explained that the need for the joint bank accounts was strictly for housekeeping purposes. The Board's authorization is needed in order to set up these accounts and to include names of Jim Benson and Leslie Suelter on the account for reviewing purposes only. J.C. Resorts would be the corporate authority for signatures, etc. and overall responsibility. Director Wasserman moved, Director Archibald seconded, that the Board authorize the establishment of the necessary joint bank accounts and to include Jim Benson and Leslie Suelter on the account (but not as signers). Adopted 4-0. 4. Continue Discussion of Waivers of Greens Fees. (Scott Bentley) Reviewed proposed Policy on Waivers of Greens Fees. Mr. Bentley was requested to change the wording at the beginning of Section C to indicate the Head Professional and his Assistant's authorization/approval responsibility, and also, in the same section, to show "Each Encinitas Ranch Golf Course employee" rather than "Encinitas Ranch employee." Director Wasserman requested that the Board review the records of complimentary games and use by employees at the end of the first six months of course operations. Mr. Bentley reminded the Board that in previous discussions on pricing it did not involve giving discounts to residents at prime times. Director Wasserman asked if the Board was expected to adopt the policy at this meeting. He said he felt the policy was good overall although he was still somewhat concerned about complimentary rounds. He is prepared to go with it providing it comes back to the Board in six months regarding preference/discount issue. The Board reviewed the other issues covered by the policy, particularly donations, and indicated they did not have any immediate problem with the;:! policy as written but as with employee use, daily records will be kept and brought back for review by the Board in six months after the course opens. Moved by Director Archibald, seconded by Director Wasserman, that the Policy on Waivers be approved, with the noted amendments, and brought back to the Board for review six months after the opening of the course. The Policy was unanimously approved. 4-0 Manager Benson reminded the Board that Community Services is the contract manager and will have a copy of all the managing policies created by the Board. 5. Report from Task Force on Grand Opening/Dedication. (Kathy Riggins) John Conover requested to speak to the issue. He said that the joint Rotary groups (Encinitas and Encinitas/La Costa) have been working together for sometime on the landscaping project and holding off until the grand opening arrangements have been compiled. If there is money to come from the grand opening for golf course enhancement, their group would like to be a part of this and propose growing the plants and replanting later. The Chairman recommended that his group put together their proposal as to how they would grow, nurture and transplant, including costs and potential sources for funding, and present to Manager Benson to bring to the Board. In the absence of Director Riggins, Manager Jim Benson presented a proposed program for the grand opening day and reviewed each issue. including discussion of number of players and starting time. Director Riggins joined the meeting at 3:55 p.m. Also discussed whether event should be a quality tournament or a celebration fun day. Whether to start later (9:30 a.m.) and have more than the proposed 144 players. It was the consensus of the Board that they would stay with 144 players and a quality tournament with prizes, with the ability to upgrade after sales start. Director Archibald moved, Director Wasserman seconded, to have the opening event asa quality tournament. Approved 4-1 (E. Kaiser) Manager Benson reviewed the Task Force's projected budget figures with the Board, including the estimated upfront (before course opens) costs of approximately $2200 that J.C. Resorts will incur. Scott Bentley to evaluate after Board's input of what it wants covered. They will be asked to handle the scoring, the bag attendants, the handicapping, pairings if they go this direction, the marshals, the snack bar, and the range attendants. Manager Benson advised that because Environmental Golf is having some problems with grow-in, planting and weeds, this presents a question about when they are going to be done with the course so that grow-in can start. Combining that concern with the predicted EI Nino and inclement weather, he feels that maybe February 28 is not a realistic event date and Board should be thinking about an alternative date. Maybe the last weekend in MCjlrch. Director Archibald said that there will be six months to plan once they decide that the grow-in period has begun. It was agreed that the date should stay flexible at this time. Director Wasserman suggested that in the event the tournament is rained out a "rainy day" date should be selected and included in the invitation. Board agreed this was an excellent idea. 6. Status Report on Hole Sponsorship. (Kathy Riggins/Scott Bentley) Director Riggins advised that following research and enquiries to prospective sponsors they have determined there is definite interest in sponsorship of permanent hole signs. Asked Board if her committee should continue to pursue this, with the understanding that a couple of tickets to the tournament event would be a part of their recognition. The cost would come out of the sponsorship income. General Counsel Krauel addressed the issue of who should or should not be permitted to sponsor holes. He suggested that parameters be set limiting what could be said on the sign: e.g. a sign could only say "this hole sponsored by (organization name)" - it could possibly incorporate a logo but would recommend starting program without logos and also for a limited period of time, say two or five years. All directors indicated they supported the program. The Task Force will continue to refine and keep within legal boundaries. 7. Presentation on Change Orders. (Jim Benson/Alan Archibald) Manager Benson described the implications for cost growth on the golf course construction and reviewed the schedule of cost growth/soft costs and explained why and where they came from. Director Archibald reviewed the schedule of Change Order Construction Costs explaining that there were still a few items that needed to be negotiated. He expected to have completed this by next Board meeting. Director Archibald explained that he and Carltas still have a lot of work to do on the numbers and particularly several of the soft costs. He added that Mr. Calkins was correct in that a lot of the changes were made in order to make the course better. A lot of the anticipated future costs are associated with problems discovered after construction started. Mr. Benson added that if the changes had not been done up-front, a lot of them would be needed while the course was in operation which would have made it even more costly. Chairman Kaiser reminded the board that at an earlier meeting they had agreed that it would be too cumbersome to meet to review each change order as it came up but would be brought ) to the board on a regular basis. Director Archibald, as City Engineer, would have the power to work with Carltas and handle the changes. And that, in good faith, is what has been happening in this regard. Director Wasserman excused himself at 5:45 p.m. for a prior engagement in San Diego. Mr. Calkins said they were going to go ahead and do the change orders on the understanding that the Board members concur. Directors Kaiser and Riggins concurred with the actions that had been taken. Director Wigginton made a statement that he will not support the changes and will not vote for it (payment). 8. Presentation on Club House Design Rendering (Jim Benson) Manager Benson presented an overhead depiction of what the 3100 sq. ft. club house will look like from the parking lot looking towards the north east. The building is not intended to be beautiful; it is intended to be functional and flexible in terms of eventually expanding to the permanent club house. The plans have been approved by the Planning Commission and is being brought back to the Board to make members aware of what has been approved. One of the advantages of the building is that it is free-standing and when time comes to construct the permanent club house it can be rearranged any way desired; in addition it could be stuccoed. 9. Memorandum of Understanding with City of Encinitas (Jim Benson) Manager Benson advised that the Memorandum of Understanding was approved by the City Council at the previous night's Council meeting without changes. City staff has been directed to look at Council representation on the ERGA board. This, of course, would require an amendment to the Development Agreement in which Car/tas would have to participate because the composition of the board was prescribed by that Development Agreement. At least one Councilmember expressed an interest in the rates that there be a component for a residential reduced rate over the average rate. Another member is interested in the financing and wishes to go back through the structure. This has been done before but can be done again. This issue has been placed on an August Council agenda to do a briefing. Requested the Board authorize the Chair to accept the MOU in behalf of ERGA. This would become basically City staff's authorization to continue working on the things they have been doing in support of ERGA, over the coming years. On motion by Director Archibald, seconded by Director Kaiser, the Memorandum of Understanding with the City was approved and the Chairman authorized to Accept on behalf of ERGA. 4-0-1 (Wasserman absent) 10. Directors and/or Manager Reports Director Archibald stated that he had walked the course that day with Architect Cary Bickler and Mike Yukon, the field superintendent, who have some real concerns about the way that Environmental Golf is progressing on establishing the greens. They are growing more algae '" ,/ than grass right now. Other observations backed up their concerns. Mr. Calkins said that in response to these observations they had advised senior management at Environmental Golf and are supplying them with a specific list of the areas where they are not following specifications. He stated they will build a weekly paper trail so that there are no issues that are not covered. 11. Next Meeting - Thursday, July 17,1997 at 3:00 p.m. 12. Adjournment - Chairman Kaiser adjourned meeting at 6:00 p.m. Respectfully submitted, t' \ \i;:.'~:1.' \ / I .,1 .' ~,~, , ,. .- 1 .~-, .I" i., ',~. _l/.'".' 11.A/Ij<'1/i,(>t_U\. "':',::>i ,,(:'/U'J (~~O~ Eclward Kaiser, Chairman Patricia D,rew, Recording Secretary