1998-03-19
ENCINITAS
RANCH
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF REGULAR MEETING
THURSDAY, MARCH 19, 1998 at 3:00 p.m.
CALL TO ORDER/ROLL CALL
Chairman Kaiser called the meeting to order at 3:30 p.m. The public had been advised
there would be a delay due to a Director's schedule conflict.
Members Present: Directors Ed Kaiser, Kathy Riggins, Alan Archibald, Lauren Wasserman.
Absent: Director David Wigginton.
Also Present: Chris Calkins of Carltas Co.; Scott Bentley and John Mason of J.e.
Resorts; General Counsel Roger Krauel, Manager Jim Benson,
Secretary Pat Drew.
Public Present: Chris Bartsch, Clementine Hale, Jim Hagen, Bill Pultz, Tom McShane,
Buck Smith.
ORAL COMMUNICATION
Clementine Hale of the Encinitas Ranch Women's Golf Club complimented the Board on the
splendid golf course. Pointed out the need for a toilet facility on the course.
Christine Barsch also of the Women's Club spoke on the need for bulletin boards.
Concerned that the yardage is not a challenge for their better players.
Bill Pultz, President of the Men's Golf Club, reported that the Men's Club now has a
membership of over 400. Congratulated the Board members on the course, and thanked
Scott Bentley and John Mason for their support and cooperation. He indicated that the
members are requesting weekend play. They would like to have one Sunday from 6:30 a.m.
to 11 :30 a.m. for eight months of the year, and a major event on both Saturday and Sunday
during the other four months. Getting a very heavy demand from local players.
REGULAR AGENDA
1. Approve Minutes of Regular Meeting of February 19, 1998.
Director Wasserman moved approval of the minutes of the February 19, 1998
regular Board meeting, seconded by Kathy Riggins. Approved 4-0-1
2.
Wrap up Report of Dedication/Tournament.
(Kathy Riggins)
Director Riggins said she thought it was a great day and the weather was most
favorable. All feedback was very positive. 169 players participated. Said she will
have a financial report at the next Board meeting. Complimented and thanked all
those responsible for making the event such a success.
Everyone agreed that it was a terrific event and appreciated the work done by Director
Riggins and Carrie Stone, and Scott Bentley and John Mason of J.e. Resorts. Also
expressed appreciation for the work done by volunteers and City staff.
3.
Update on Major Hole Sponsors.
Uohn Mason)
"John Mason indicated that he and Kathy Riggins are still working on this project. To
date they have three sponsors signed up: Stone & Youngberg selected hole #1;
Cobra Golf chose hole #10; McHenry Metal Woods selected hole #16.
4. Potential Course Enhancements; Prioritized List.
Director Archibald advised that David Wigginton and J.e. Resorts are working on the
rest room facility for hole #6 that was approved by the Board at the February meeting.
He is also making contact with Leucadia County Water District to request permission
to put a rest room in the area of holes 13, 14, 15 and 16 where the cross over is, to tie
in with the sewer main that goes through the golf course. Rather than annexation of
the entire golf course into the Leucadia County Water District he would treat this as
an individual item.
Chairman requested that the Board come back to item 4 for further discussion after
completing item #9.
5.
Approval of Voice Mail System Purchase.
Uim Benson)
Manager Benson said he had talked with at least one other Board member before
going ahead and authorizing the purchase of the voice mail system.
Director Wasserman moved approval of the purchase of the Voice Mail System,
seconded by Director Kaiser. Approved 4-0-1.
6.
Installation of Public Telephone at Club House.
(Lauren Wasserman)
Scott Bentley said it will not cost anything to install and he will go ahead and request
the Telephone Company to install.
7. Request for waiver of green fees for a PGNSouthern California Section Tournament
June 1, 1998. Uohn Mason)
John Mason indicated that he was withdrawing this request since he had determined
it was not workable.
However, Mr. Mason said he did have a request for a reduction in greens fees from
the San Diego Chapter PGA. It would be a tournament for about 60 professionals, all
local. While the tournament will be on a Tuesday in June, he assured members that
the tournament would not interfere with the Women's Club play. Directors agreed it
would be good advertising for the course.
Director Archibald moved approval of the request, Director Wasserman seconded.
Approved 4-0-1.
8.
Report on Status of Men's Club and Women's Club.
Uohn Mason)
Chairman Kaiser asked John Mason to describe the makeup of the Clubs.
Mr. Mason said the Women's Club play on Tuesdays from 7:30 a.m. to 11 :00 a.m.
The first day of play was a tournament and went very well and was followed by
lunch. They have 188 members - about 36% are residents.
The Men's Club play on Wednesdays from 7:30 a.m. to 11 :00 a.m. Their
membership is currently in excess of 400, consisting of 67% residents, 33% non-
residents. There are some areas of concern, particularly with no-shows, but he and
Scott Bentley are working with the Men's Club to resolve problem areas.
9. Report on Initial Operating Revenue and Expenses.
Bob Dobek of J.e. Resorts joined the meeting.
Scott Bentley advised that revenues are 55% over plan and number of players 59%
over plan. The average greens fee is holding true to plan. Cart usage is at 72%,
about what was projected.
Bob Dobek said that demand has been very strong, the complaints he had heard
were that people co'uldn't get on because there are only so many tee times. Part of
their philosophy has been that since thegrow in period had been so great and they
did have a very strong golf course, they would try to accommodate as many players as
they could initially, and take advantage of the strong start. He has been on the golf
course every day and has noticed certain areas for concern. He reported on what is
being done to bring up the color of the grasses, the status of the new growth and
condition of the tees.
Chris Calkins expressed his concern that maybe the course is being overplayed and
asked the Board to consider giving J.e. Resorts the discretion to manage the play
should unfavorable conditions arise.
The issue is to be brought back to the Board next month.
Bob Dobek said they will have a full accounting of expenses by end of the month.
Chris Calkins requested that there be standing agenda items to cover report on
operating revenues/expenses and course condition.
10.
Status on Cost Growth.
U i m Benson)
Manager Benson said he was not ready to discuss this issue.
Expenses are continuing with Environmental Golf building the driving range. April
10 is the anticipated completion date for the driving range when the seeding is done.
The reconciliation will be done at either the April or May meeting, probably May.
11. Directors and/or Manager Reports
Manager Benson reported that in response to a suggestion by Chairman Kaiser, a
subgroup of the Board comprised of Chairman Kaiser, Alan Archibald, Jim Benson
and Bob Dobek, was set up in order to meet with J.e. Resorts to give feedback
concerning refinements to the course.
The City Council at its March 18 meeting did approve up to a $220,000 allowance
advance that will replace the loan J.e. Resorts was going out to get that had been
provided for. The City loan will be at 7 1/2% versus the J.e. Resorts' loan at the Bank
of America prime plus 3, which was 10 1/2%. The will make for about a $6600 a
year savings. We will get this transaction in place within the next two weeks. The
prepayment is regulated by the Official Statement which includes about five
conditions put in by Alliance, as the Investor. Prepayment is restricted to September
1, 1999. However, the cash will be sitting earning interest at about a 6 1/2% rate.
Chris Calkins requested this issue be put on the next agenda. Suggested inviting the
bond holder to come to the West Coast to look at the course (his investment) and for
discussions about the prepayment.
Item 4 continued -Enhancement Wish List:
Items 1 and 2 and 4 (Flowers and Trees, and restroom on hole #6) were authorized at
the February Board meeting.
Director Riggins said that she anticipates there will be about $19,000 from the
tournament and major sponsors (plus $10,000 from the two who have committed but
not yet paid).
Director Archibald said he and Bob Dobek had discussed getting some large boulders
to put in the parking lot to stop people from driving through the flowers. Mr. Dobek
said he has found 33 boulders but still needs to get permission from the owner. They
would just need to rent a dump truck to haul to the site.
Manager Benson explained for the public present, that we are having a worse
problem than anticipated with people going crazy trying to get through Leucadia
Boulevard (which is not yet open) so they are going through the landscaping, through
the cart path, through the drive through, any way they can, trying to make the golf
course parking lot part of Leucadia Boulevard.
J.e. Resorts had an additional wish list which was presented to the Board and
reviewed by Scott Bentley. Chris Calkins asked him to give the Board his view of
the most important, top priority, items on the two lists. He indicated he prioritized
the items as 1) the bag rack in front of the shop, 2) the podium for the starter, 3)
the bulletin board, and 4) the concrete between the club house and driving range
(needs to be done before opening up the driving range).
Director Wasserman moved to approve doing the concrete work around the club
house (including the additional golf cart parking and path to driving range), the
starter podium, bag rack, bulletin board and the boulders for the parking lot;
seconded by Director Kaiser. Approved 4-0-1,
12. Next Meeting - Thursday, April 16, 1998 at 3:00 p.m.
13. Adjournment
Chairman Kaiser adjourned meeting at 5:00 p.m.
Re~pectfully submitted,
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Edward Kaiser, Chairman
Patricia Drew, Secretary