1998-02-19
ENCINITAS
RANCH
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF REGULAR MEETING
FEBRUARY 19, 1998
CALL TO ORDER/ROLL CALL
Chairman Kaiser called the meeting to order at 3:12 p.m.
Members Present: Directors Ed Kaiser, Alan Archibald, Lauren Wasserman,
David Wigginton.
Director Kathy Riggins had advised she would be late and joined the
meeting at 3:19 p.m.
Also Present: John White of Carltas Company; Scott Bentley of JC Resorts; General
Counsel Roger Krauel, Manager Jim Benson, Secretary Pat Drew.
Public Present: Buck Smith; Marga Kellogg, No. County Times newspaper.
ORAL COMMUNICATION
None.
REGULAR AGENDA
1. Approve Minutes of Special Meeting of January 15, 1998.
Receive revised copy of December 2, 1997 minutes to correct a typographical error on page
three, Rate Structure - i.e. Weekends Late/Twilight rate is $28 not $18 as was shown.
Director Wasserman moved approval of minutes; Director Archibald seconded.
Approved 4-0-1
2. Discussion regarding potential loan from the City of Encinitas for golf course working capital
to replace JC Resorts working capital loan." (Leslie Suelter)
Manager Benson reviewed the purpose of the request in Ms. Suelter's absence. He
explained that they would like the Board's authorization to proceed before
approaching the City Council with a proposal that the City consider advancing ERGA
money for its initial operating cash flow. The advance would be at a lesser interest
rate than ERGA is currently paying JC Resorts under the Management Agreement for
its operating expenses until such time as they begin to make profits, but still more
its operating expenses until such time as they begin to make profits, but still more
than the City makes off its portfolio. As of the last Treasurer's Report, the City is
making just over 6%; therefore, the City could charge 7%, still make money off it and
also save ERGA 3 1/2 % off the cash flow. The projection is for $220,000 for about a
one and a half to two and a half year period at BofA rate plus two, or currently 10.5%
in effect with JC Resorts. We are looking at probably a 7% fixed rate. This would
save about 3.5% on the cash flow. The ERGA loan would in turn payoff what JC
Resorts has put out, plus their interest.
Director Riggins joined the meeting at this point. The issue was reviewed for her.
Director Kaiser moved that Manager Benson be authorized to approach the City for
a loan of working capital at no more than a 7 1/2% fixed rate of interest for a period
of not longer than two and a half years; Director Riggins seconded. Approved 5-0.
3. Potential Course Enhancements; Review Prioritized List of Enhancements.
Director Archibald reviewed the "wish list" he had prepared for consideration and
said he would like to get authorization for at least the first two items on the list.
Following discussion and review of proposed items on the wish list, the list was re-
prioritized as follows:
1.
Flowers for flower hole and entries.
This will include an additional $500 from
the Family Enrichment Program whose families
are scheduled to do a planting next week.
$ 1,710.00
2.
Additional trees for screening (Eucalyptus Robistas)
for driving range, maintenance building and
perimeter.
500.00
3.
Split-rail fencing - 3 - 4000 I.f. at $6/1.f.
24,000.00
4.
Restrooms - (a) hole #6
- (b) hole #13
6,000.00
6,000.00 + sewer
connection
5.
Patio Covers for club house.
5,000.00
6.
Rain gutters for club house.
2,000.00
7.
Stai rs for #14 hole
1,000.00
8.
Concrete Pad outside club house.
2,500.00
9.
Bag racks outside golf shop.
1,000.00
10.
Passing areas/turn-arounds on cart paths.
tba
The sewer for hole #13 will not be available for probably two years. However, there
is a sewer line between holes 14 and 15 and this is a feasible alternative. This is an
issue that Carltas and the City will address with Leucadia County Water District at the
appropriate time relative to probable annexation or de-annexation. No sewer hookup
can be done until this is resolved. In the meantime, the immediate problem will
probably be resolved with a port-a-potty at hole 13 or 14.
Director Archibald moved that the Board authorize funding of items 1, 2 and 4a
(rest room on #6 hole only); seconded by Director Wasserman. Approved 5-0.
4. Discuss split of proceeds from Inaugural Event/Fund-raiser.
Director Riggins explained that they are looking at 30% of the proceeds going to
something other than course enhancements, in particular to some program of junior
golf. Also considering doing the YMCA Golf Camps at the golf course rather than
paying Torrey Pines to do it. They could sponsor some kids who otherwise could not
afford to attend the camp.
Director Wigginton moved that the Board authorize 30% of the proceeds from the
tournament to go to junior golf programs; seconded by Director Wasserman.
Approved 5-0.
Director Riggins said that relative to the major sponsors, this is being kept separate
since the number one priority is to upgrade the tee monuments; distribution of the
balance would be determined at later date. Advised that two major sponsors have
signed up for this program.
5. Update on Dedication/Inaugural Event.
Manager Benson distributed various records and charts for the tournament showing
the latest line up of players, etc. for the tournament. Very close to being sold out
but still have some openings that have been held for the hoped-for 18 major hole
sponsors.
Director Riggins and Carrie Stone reported on where they stand with the event and
are very pleased with how it has come together. They reviewed the agenda for the
day w\th the board members.
Tape machine was turned off at 4:12 p.m. while a number of members left the room
on an emergency Issue.
Manager Benson stated that, for the record, during the time members were gone and
tape turned off, some clarification of the dedication ceremonies took place. Members
of the public were present in the room during the period the tape machine was off.
6. Status on Cost Growth.
Manager Benson advised that the final costs for the course are not in, the punch list is
still being reviewed. There is a possibility that will come back to the Board in March
but a better estimate would be a final estimate at the April board meeting, providing
the driving range has been completed. Work around the range is also still in
progress.
7.
Report on Status of Men's Club and Women's Club
Uohn Mason)
Scott Bentley reported that the clubs are developing very nicely; the Women's Club
has 120-130 members signed up, with 104 players signed up for Tuesday, March 3,
their first members' day. The Men are not quite as organized for their first day of
play, but they do have over 200 signed up for the club. Both clubs have been formed
with Boards of Directors; they are working on their bylaws and getting their structure
set up.
8. Directors and/or Manager Reports
.
Manager Benson advised that the Club House is now hooked up with telephone and
power and any enquiries/questions regarding Men's/Women's Clubs, tee times etc.
should be directed to the Club at 944-1936.
Director Archibald said there are still many details to be resolved before the opening
on the 28th. Hopes the driving range will be in condition to be used on the 28th.
Evelyn Weidner has indicated that she talked to the San Diego County Flower
Growers and they are willing to provide flowers providing we can get a florist or
someone to arrange them and return after the opening. Their person is going to be
out of town.
9. Next Meeting - Thursday, March 19, 1998 at 3:00 p.m.
10. Adjournment
Chairman Kaiser adjourned the meeting at 4:37 p.m.
Respectfully submitted,
(~-;- f /
i;3~~-"- 5'- jJ,rP-N
Patricia Drew
Recording Secretary
Edward Kaiser
Chai rman