1997-10-02
CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF SPECIAL MEETING
Thursday, October 2,1997
CALL TO ORDER/ROLL CALL
Chairman Ed Kaiser called the meeting to order at 3:10 p.m.
Members Present: Directors Ed Kaiser, Alan Archibald, Lauren Wasserman and David
Wigginton. Director Kathy Riggins arrived at 3:30 p.m.
Also Present: Chris Calkins from Carltas Co.; Paul Reed, Bob Dubek, Scott
Bentley and John Mason of J.C. Resorts; Manager Jim Benson, General Counsel Roger
Krauel, Recording Secretary Pat Drew; Staff member Nancy Sulliven; Jan Ferrier,
Encinitas Chamber of Commerce; Art Beardsley, Encinitas Golf Association.
ORAL COMMUNICATION
Mr. Art Beardsley reported that he and his Association had developed a sign-up list of
about 250 men in the area who have indicated an interest in forming a Men's Club. At this
time about 60 women have expressed an interest in forming a Club. He Feels very
confident that there will be no problem in forming Clubs.
REGULAR AGENDA
1. Approve Minutes of Regular Meeting of August 21, 1997.
Director Wasserman moved that the minutes be approved as presented;
Director Archibald seconded. Approved 4-0-1 (KRiggins absent).
2. Authorization to Retain the Firm of Fitzpatrick & Gonzales to Perform ERGA
Financial Audit for 1996/97. (L Suelter)
Manager Benson reported that while J.C. Resorts will be hiring a separate audit
company for their operations accounting, ERGA is required to have an accounting
firm representing the City. However, their audit will not be included in the City's
financial statement. The firm of Fitzpatrick & Gonzales has been selected from
those who bid on the project. Manager Benson recommended that the Board
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approve and authorize the retention of Fitzpatrick & Gonzales to perform ERGA's
financial audit for 1996/97.
Director Archibald moved approval, seconded by Director Wasserman.
Approved 4-0-1 (KRiggins absent)
Manager Benson introduced staff member Nancy Sullivan who' has been hired
under contract to the City to do the accounting for both the Community Facility
District for the Ranch and the Encinitas Ranch Golf Authority (ERGA). Ms.
Sullivan will be the primary detail contact with J.C. Resorts as money flows and
payments are made.
3.
Review and Approve Proposed Logo.
(S Bentley)
Scott Bentley reported that Cornerstone Communities has hired a new design
company for their logo. Because of the delays the Board agreed to go back to the
original designs presented by graphics designer Ron Miriello at the May 15 board
meeting. Mr. Bentley to bring to the next meeting new, simplified revisions, to
include the Poinsettia.
7. Discussion of Process for Acquiring a Liquor License, Catering Service (S Bentley)
Item taken out of order.
Bob Dobek of JC Resorts explained the situations and difficulties involved with a
municipality obtaining a liquor license. Since a municipality is not permitted by
law to have a liquor license in its name, he suggested that a lease arrangement be
developed for the food and beverage operation. There would be an additional
plus to this arrangement since a license would cost $6000 rather than the usual
$12,000. This would require a letter from ERGAlCity stating that the issuance of
a license in the name of The Encinitas Ranch Golf Course would be in the best
public interest. The ABC has indicated that they did not foresee any problem with
this arrangement. The proposal is for the food and beverage operation to be
under a lease agreement for a term of five years, or three years with ,one plus one
option for consecutive years. They would propose to pay 20% of gross revenue
from the operations as a lease payment. Their research indicates that the
percentage has to be from the gross amount, not the net. Manager Benson said
that to accomplish this lease arrangement it will be necessary to do a modification
to the JC Resorts/ERGA agreement and to determine, through counsel, if the
lease arrangement would be required to go to the ERGC. J.C. Resorts would pay
for ail improvements with a buyout at the end of the lease period, with a 10%
depreciation per year through the life of the lease. There would be no acquisition
at the end of ten years.
Director Riggins arrived at this point.
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Director Archibald moved, Director Wasserman seconded, that the Board
approve the basic economic concept and authorize Manager Benson to work
out the details of the food and beverage concession lease arrangement
consistent with the September 25, 1997 Memorandum and foregoing
discussion. This includes a modification to the Contract between ERGA and
JC Resorts under Item 6.2 of the Contract, to reflect the adjustment of taking
the concession contract out of the J.C. Contract and handling separately.
Approved 4-0-1 (KRiggins abstained because she had not been present for
all discussion).
4.
Approve Proposed Rate Schedule.
(S Bentley)
Manager Benson reviewed the organization of the presentation material and the
mechanics of the spread sheets.
Scott Bentley reviewed the assumptions and the summary sheet.
Chairman Kaiser said he would like a couple of weeks to review the schedules and
to bring the issue back to the next meeting for final approval.
Board agreed to go with option 6 on the pro forma but to change the
weekend rate to $49.00. Manager Benson is to work out a revised projection of
the impact on a ten year basis.
5. Approve Plan for Dedication/Tournament for Grand Opening of Golf Course. (KRiggins)
Director Riggins reviewed the proposed arrangements for the dedication and opening
tournament, and the proposed budget.
Director Wigginton moved that the format be approved at the $250 rate for
tickets. Director Kaiser seconded. Approved 5-0
Chris Calkins said he would like to request an agenda item for a future meeting for
discussion of an open day for City residents et al to walk the course.
6.
Status Report on Hole Sponsorship.
(K Riggins)
Director Riggins reviewed the proposal for hole sponsorship that had been
prepared in conjunction with John Mason of J.C. Resorts, together with the list of
prospective major donors from the local area. Members discussed the proposed
sponsorship price and the term length.
Director Riggins moved, Director Archibald seconded, that the Board
approve a three year term for $5000. Approved 5-0.
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Item 7 was taken out of order.
8. Update on Course Budget Cost Growth and Approval of Change Orders
Director Archibald reviewed the schedules of change orders, explaining the
reasons for the enhancements and deciSions to spend more money up front rather
than later. Because of these decisions the course will be of a higher quality than
originally anticipated. In negotiations with Chris Calkins of Carltas Co., they have
agreed on the total over budget cost of $962,101. This total was arrived at after
taking into consideration the contingency amount of unanticipated interest income
of $111 ,733.
On motion by Chairman Kaiser, seconded by Director Riggins, the Board
approved the change orders for total overruns of $1,073,834.
Approved 4-1 (DWigginton opposed)
9. Discuss Potential Course Enhancements.
Mr. Jan Ferrier, representing the President of the Encinitas/North Coast Chamber
of Commerce presented a letter from the Y's Men International with a proposal for
donating 40 Torrey Pine trees to be planted at the golf course and presented a
check in the amount of $1100. The Board accepted their donation with thanks.
Director Wasserman suggested that at the time of planting there be a photo
opportunity for public acknowledgment. Issue will be placed on the October 16,
1997 agenda for official recognition and acceptance together with discussion of a
suitable plaque.
10. Directors and/or Manager Reports
Manager Benson reported on the condition of the course during the last of the
grow in season and their concerns with Environmental Golf. The company has
now increased the number of people cleaning up the course (weeding etc.) with
corresponding improvements.
11. Next Meeting - Thursday, October 16,1997 at 3:00 p.m.
12. Future Agenda Items:
a) Approve form of Monument and Plaque Signs.
b) Approve logo.
c) Approve rate schedule.
d) Approve following Policies:
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i) Cash Controls
ii) Inventory Controls
iii) Waiver of Green Fees
iv) Use of Course by Groups and Tournaments
e) Discussion/Consideration of an Open Day for City Residents et al to Walk
the Course.
13. Adjournment
Chairman Kaiser adjourned the meeting at 5:26 p.m.
Respectfully submittedl
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Patricia Drew
Recording Secretary
Chairman
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