1998-04-16
ENCINITAS
RANCH
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF REGULAR MEETING
THURSDAY, April 16, 1998 at 3:00 p.m.
CALL TO ORDER/ROLL CALL
Chairman Kaiser called the meeting to order at 3.08 p.m.
Members Present:
Directors Ed Kaiser, Alan Archibald, Lauren Wasserman, Dqvid Wigginton
Member Absent:
Director Kathy Riggins - arrived at 3: 15 p.m. .
Also Present: General Counsel Roger Krauel, Manager Jim Benson, Secretary Pat Drew;
Scott Bentley and John Mason, of J.c. Resorts.
Public Present: Jean Kelly, Pres. Women's Golf Club; Bill Pultz, Pres. Men's Golf Club; J.
Mickey Scoffin, Secretary, Men's Golf Club; Tom McShane and Jim Hagen of the Men's Golf
Club; Chris Bartsch, Women's Golf Club; Donna and Brookie Westbrook.
ORAL COMMUNICATION
[3 minutes for each speaker. Maximum 15 minutes for oral communication.]
None.
AGENDIZED BUSINESS ITEMS
1. Approve Minutes of Regular Meeting of March 19, 1998.
Director Wasserman moved approval ofthe minutes, seconded by Director
Archibald Approved 4-1-1 (Director Wigginton abstained - absent from meeting)
Director Wasserman requested adding an item to the end of the agenda for something that
had come up from J.e. Resorts within last 24 hours.
Director Wasserman moved, Director Archibald seconded, adding "Appointment of
New Head Professional" to the agenda. Approved 4-0-1 (Kathy Riggins absent)
2. Men's Club Presentation Requesting Weekend Play
Bill Pultz, President of the Men's Golf Club, referred Board members to his letter of April 3
requesting the Board to consider the Club's desire to schedule monthly weekend
tournaments for their membership.
Mr. Pultz said that the club has just on 500 members and expect to be up to 600 by the end
of the year. To have a viable men's club they really need to have weekend play; not sure
how viable they can be without it. A great many members cannot play on Wednesdays but
could play at the weekend. With a potential of 144 players for weekend play, this could
generate $60,000 to $70,000 a year in income. Prize monies would be turned over to the
Pro Shop and this could build up into quite a bank of money for the Pro Shop since many
people wait until they can use their prizes.
Director Riggins arrived at 3:15 p.m.
Asked how the club would handle no-shows at the weekend, he responded that the club
could work out a policy for no-shows.
Chris Calkins arrived at 3:20 p.m.
Scott Bentley was asked how this would affect the proforma. He said they, of course, would
like to help the Men's Club to be successful and want to service them to the best of their
ability. For the month of March the residents and JC Club members made up 43% of prime
time players (of the 1470 total players). The concern, financially, with having the Men's
Club play at the weekends is that for the most part they are all residents or JC Club members,
which automatically gives them $7.00 off the greens fees. With an average of 163 players a
day, and 70 of those players being residents or JC Club members paying $7 less than the
general public, feels they would lose 50 or 60 full rate rounds which would amount to $420.
This would equal a cost of up to $450 per day in greens fees to run the tournament. The
revenues from the Pro Shop (from prizes) would probably wash out the differences from the
loss on greens fees. He advised that resident players comprise 38% of all prime play (before
twilight play), and during the week residents and JC Club play is 35% of all play - 46% of
prime time. His only other concern would be the speed of play. Normally with
tournament play the pace gets slower. Late morning or early afternoon would probably get
around this.
Director Archibald said he did not have a problem so long as the issue of no-show is
resolved. General consensus was that this problem could easily be resolved by various
means.
Director Wasserman said he could not support this request at this time. The reason being
that he is concerned about people who aren't in the Men's Club, who are residents who can't
play during the week but want to be able to play golf. Feels this would limit their ability to
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be able to play. It is something he would like to look at again in a year's time when we
have a better feel for flow and revenues.
Chairman Kaiser asked the Board to come back to the item after hearing from the Women's
Club under Item 3.
3. Women's Club Presentation re Weekend Play and Use of ERGA Logo.
Jean Kelly, President of the Women's Golf Club, said their club now has 204 members and
growing daily. They have a newsletter and roster ready to go out and would like
permission to use the ERGA logo on all their communications.
Director Wasserman requested that Board members receive a copy of their news bulletin.
Directors were unanimous in their approval of the request to use the ERGA Logo.
Second issue is that subject to ERGA Board approval, they have scheduled their
championship tournament for Tuesday, May 26 and Saturday, May 30, finishing on Tuesday,
June 2. Request is for one weekend day only - Saturday - for this annual championship.
At this time they do not have a good idea of the number of players for the championship play
- a guestimate would be 75 - 100. They provide their own marshals to keep the play
moving, with notice and warnings to get caught up. Normal play time for a championship
would be 5 - 5 1/2 hours.
Item 2 Continued:
Chris Calkins said he felt we should be able to accommodate future requests - e.g. a Juniors
tournament will eventually be planned. Would suggest to the Board the idea of allowing a
limited number of weekend tournaments, particularly championships, for the Men's and
Women's Clubs, with the understanding there will be a Junior tournament of some kind or
another. This would be important for two reasons: The Men's Club, in particular, needs a
weekend day since the championship is their premier event and everybody who can play
needs to be able to play. And, secondly, believes it would be good for the course as a whole
to permit this. Maybe instead of going to every month, moving into it gradually by allowing
for the championship and one other, knowing that two or even three groups would wish to
have the same privileges. This would also encourage people locally to participate in the club.
Look at how play goes and maybe add to it as time goes on.
Director Wasserman said he would rather deal with the issue as they had done with the
Women's Club, and have the request come in and deal with it at that time rather than just
"setting up" at this point.
Director Wasserman moved to let J.e. Resorts schedule dates for the Men's Club's
Poinsettia Cup Championship and approve the two-day tournament for whatever
dates and times work. Director Riggins seconded. Approved 5-0.
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Director Archibald moved that the Men's Club be asked to come back to the Board
with a formal proposal based upon the parameters just discussed, i.e. along the lines
of six tournaments a year, and two of those tournaments could be Saturday and
Sunday (4 single day tournaments, two double days), and to work with J.e. Resorts
to come up with days that work. Chairman Kaiser seconded. Approve 5-0.
Item 3 continued:
Director Wasserman moved that the Women's Golf Club be allowed to do their
Club Championship at a date, or dates, to be worked out with J.e. Resorts.
Director Archibald seconded. Approved 5-0.
4.
Financial Accounting on DedicationfTournament.
(Kathy Riggins)
Director Riggins advised that the bottom line from the Tournament fund-raiser is $31,104.20.
Referred back to the Prioritized Wish List with approved items and authorized expenditures
of $15,610.00; this leaves $15,494.00 to be assigned. Still have to get costs for the rest
rooms and the boulders for the parking lot.
Director Wigginton said that they had gone ahead with the split-rail fencing for a cost of
$15,900. According to a letter he had received from Bob Dobek, the increase in revenue
would cover cost of the fencing.
Item 10 covered at this point.
Director Wigginton handed out an agenda report titled "Upgrade of Existing Public Restroom
Facilities at Encinitas Ranch Golf Course" which he reviewed for Board members and
referred directors to the attached map indicating the proposed portable restroom sites.
Attachment B showed a list of facility types and costs. The most desirable style would cost
$40,000 but this is not within the budget figures. He and his staff had looked at all the
alternatives and felt that what the course can afford is the portable (Biffy's) restrooms with
portable hand washing stations. The area would be enclosed by a trellis or lattice work
covered with vines or shrubs. This would give a semi-enclosed restroom area. The first year
cost will be $6,792.00. Subsequent years would be $5,292 because of the deduction for the
initial cost of $1500 for installation at the two locations, i"ncluding cost of the trellis' and
plants. Planning to have ladies and men's portable Biffies, two at each location (north and
south sites). This cost would come out of operating funds. The portable handwashing
stations would be rented for an annual cost of $1,656. Biffies would be serviced three times
a week.
Asked what the preferred long-term structure would be, Director Wigginton said it was the
Masonry/wood structure of 250 sq. ft. but this would have a first year cost of $40,000.
Director Wasserman said he wanted to be sure it was understood the "Biffy" solution was not
the long-term solution.
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Director Archibald moved that the Board authorize $1500 plus contingencies to
install men's and women's portable restrooms with handwashing stations at two
locations as shown on the report map. Director Wasserman seconded.
Approved 5-0.
These monies are out of the tournament income.
5. Distribution of Funds from Tournament.
Earlier discussion had been that the Board desired 30% of the proceeds from the tournament
to go to junior golf. Chairman Kaiser requested that this issue be placed on the agenda for
the next board meeting and requested John Mason to do the research to bring back to the
Board.
Director Riggins said that deducting 30% for junior golf would bring the amount for
distribution from the opening tournament down to $4,600. In addition, $5000 is still to
come in from Cobra Golf. It was clarified that the 30% was from the tournament, not the
major sponsors. It was agreed that these funds would be held in abeyance for the time
being.
6.
Update on Major Hole Sponsors.
Uohn Mason)
John Mason advised that he and Director Riggins had sent out thank you letters to the three
major sponsors for holes 1, 10 and 16. Cobra Golf is waiting to receive their letter before
sending their $5000. Rocks are being prepared together with flower beds, and the flags for
the three holes are being ordered. Wants to get the three holes completed so that he can
show the sponsors what they are getting, as well as the plaque. After that he will actively
begin selling the other holes.
7. Consider Request for Greens Fee Reduction for Encinitas/La Costa Rotary Golf
Tournament May 1. Uohn Mason)
John Mason said he had been a member of the Encinitas/La Costa Rotary Club for the past
two years and is planning a shot-gun tournament fund raiser for Friday afternoon, May 1.
He is requesting a reduction in greens fees and presented three examples for consideration,
so that the club can increase the net proceeds for helping local charities.
Director Wigginton indicated he saw this as a dangerous precedent setting issue. While it
may not have an impact on the financial proforma overall, twenty or twenty five of these in a
year could have quite an impact. How do you differentiate between causes. Director
Wasserman concurred with the concern.
Director Archibald said that he didn't see the need for reduced rates since by melding the
two afternoon rates it could be brought to the same figure John Mason was using.
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Chairman Kaiser and Director Wasserman said that they didn't see that there was a need to
bring this to the Board since by using Director Archibald's formula he could get to the
desired dollar amount.
It was agreed that J.e. Resorts should have the responsibility for setting the greens fees for this
and future requests from organizations. These requests do not need to come to the Board.
8. Request from City of Encinitas to hold their Annual Mayors/Managers Luncheon
Meeting at the Course Thursday, June 18, 1998, and to Offer Tee Times to Interested
Mayors and/or Managers. Uim Benson)
Mr. Benson said that once a year the City of Encinitas hosts the Mayors and Managers from
the North County Cities and Legislative Offices at a luncheon and program. This year it will
be held on Thursday, June 18. In order to do a little PR for the course, we are planning to .
hold it this year at the Club House, probably under a tent. We know there are a number of
people who play golf so we are looking to host and dedicate tee times for them. Not
proposing camp play. 5Pi Jq~
Chairman Kaiser ~oved t~at the B~ar~ approve comp times for this ev~nt for -r~os.e.... fQ
-anyone from the City/"-* Director Rlggms s~colJded. ......Ap~roved 3-2 (DIrectors .
Wasserman and Wigginton abstained) 7r r!..~oJv~r;L-I/IA..--., Il.o-;:f~ 1~--wL." .., ,cr-rS
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9. Potential Course Enhancements - Prioritized List. T
Held over to next meeting.
10. Discussion of Alternatives for the Provision of Restrooms at Golf Course.
(David Wigginton)
item covered above
11.
Discussion of Proposed Security Improvements.
(David Wigginton)
Director Wigginton asked what had been done since the Pro Shop was burglarized a few
weeks back. Wanted to be sure that everything is OK now and J.e. Resorts comfortable
with what has been put into operation.
John Mason responded that they have now included outside horns, before they were only
inside because they felt the security guard would be right on the property. When the break-
in occurred the security guard was out dealing with the traffic. He has now been instructed
to stay by the golf shop, between the shop and cart barn, all night and every night. Bright
lights with motion sensors have now been installed around the building. The split rail fence
left of the number 10 fairway will prevent any truck being able to come up the back way as
they did before. Have also requested an increase in Sheriff's patrols during the hours the
club is closed. Advised that he had also asked the security guard to keep a lookout over the
hill for anything that might be happening on the bridge. Replacements for the vandalized
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broken I ights are on order. Steel poles for the swinging gates at the two parking lot
entrances have been installed. The gates should be installed and operating within next few
days. Sti II to be installed are the rocks.
12. Discussion/Direction Concerning Course Operations, Conditions Needing Change.
Director Archibald said there are places out on the course where the cart paths are too
narrow, especially on turns. Feels cobble rock needs to be added to some of the areas for
protection. This also would encourage people to stay on the cart paths.
Chris Calkins said that he continues to be concerned that the course is getting too much play
- the course looks fine right now but feels that it should be watched very closely to see if
steps will be needed to reduce play.
13.
Report on Operating Revenue and Expenses.
(Bob Dobek/Scott Bentley)
Scott Bentley distributed and reviewed the March 1998 financial statement for the golf course
and said it reflects the budget in the proposals. The working capital and operating
equipment item was $1,341.85 over budget, Maintenance Facility Equipment was
$4,848.50 over budget, for a total of $6,190.35 over budget. Leased equipment was
$17,453 under budget; pre-opening expenses were $4,357.61 under budget. Revenues
were 45% over budget - golf cart income was 65% over budget. He summarized by
saying revenues were way up and expenses basicallyon plan.
Mr. Bentley reviewed the daily volumes. Five days of rain slowed things a little. Big
surprise to them was that weekday play was up 64% over plan. Fridays were 16% over
plan. Weekend revenue was 17% over plan. Play was up 43% at 2037 rounds over plan.
Averaged 219 players a day. However, eliminating the five rain days this brings the average
to 233 per day. Cart usage was up 65% over the budgeted 78% usage. Golf Shop sales
. were $4300 or 20% over plan. Play was at 6,779 rounds vs. a plan of 4,742 for an
increase of 43%. Average green fee was slightly above plan at $33.95, plan was $33.72,
even with the high number of resident rounds. Resident play was 1,958 rounds, for 29% of
all rounds, 38% of prime time. The projection was for 525 for an over plan increase of
223%. The total for residents and JC Club members was 2348 vs. plan of 750; they were
35% of all play and 46% of prime time. At the weekend they were 43% of weekend play at
prime time.
Chairman Kaiser asked for an explanation of the $29,000 in accounts receivable and was
advised that this was basically amounts owed to ERGA by hotels for guests and which are
paid on a monthly basis. In order to get off their books they did charge the merchandise and
the fees for the inaugural event to this account. This will be paid and cleared from this
account.
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14. Discussion of Changing Handicap Yardage (Women's Golf Club).
Chris Bartsch said there was some concern in the Women's Golf Club about changing the
yardages and not being aware of it. Director Archibald said there had been no discussion
since last month relative to this issue. However, he said that he still feels that the white tees
at 5900 are too short for the men but perfect for the women. The course superintendent said
they set up the 5900 markers for all tournaments. There are already two women's markers
and they also use the men's tee. The Men's tee is the third tee. Chris Bartsch's concern is
that they have a number of low, single digit handicappers in their club who don't feel the
challenge from low yardage (i.e. 5200); it does make a difference where the tee boxes are
placed - and if they are playing from different yardage from what it is rated they are not
reflecting their proper handicap.
Scott Bentley indicated that it is normal to have changes and be rerated from time to time.
This has already been done twice. It would take a detailed study to change anything.
15.
Report on Men's Club and Women's Club.
(John Mason)
In the Men's Club the no-show situation is much better. Have had a Tournament every
Wednesday. The Club knows that they are required to get their sign-up sheet in by Friday
afternoon prior to their Wednesday play time so that the times that aren't taken can be filled
by the public. They are discussing filling in with standbys which is being encouraged. Also
discussing shutting off the tee at lOam, as they do with the ladies.
Has talked to the Ladies Club about tee times and has recommended that they do early, mid
and late sections, and he, Virginia of the Women's Club, or a staff person put them in for
times. At this point they are filling in names on a hit and miss basis throughout the 7:30 to
11 am time frame. Consequently, men are filling in and intermixing with the ladies. So, to
see if it will work better they have reduced the ladies' time from 7:30 am to 10:00 a.m.
All in all the two clubs are doing very well.
16.
Discussion of Prepayment to Alliance (the Bond holder).
(J i m Benson)
Manager Benson discussed plans to meet with a representative of the bondholder to discuss
prepayment to allow more flexibility on the money that is held, based on the success of the
course and their comfort level. One of the benefits of having a single investor is being able
to negotiate with only that single investor for some kind of a change to the bond covenants,
something that would give us a little more latitude and not tie up all the additional revenue
we are talking about as the Official Statement calls for. Just wanted to let the Board know we
will be doing this.
17.
Status on Cost Growth.
(Jim Benson)
No report.
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17b. Appointment of New Head Professional. Item added atbeginning of meeting by
motion and consent. (Lauren Wasserman/Scott Bentley)
Scott Bentley advised that because John Mason wishes to be in more of a teaching position,
this opens up the Head Golf Professional position. They have found a replacement who has
met their criteria and would like the Board's permission to appoint Robert Powell as Head
Golf Professional. ERGA's contract with JC Resorts requires that they bring to the attention
of the Board when they wish to make changes in staffing. They are prepared to hire Mr.
Powell who is a PGA member; grew up in San Diego and played junior golf here and since
that time has moved around the Southwest as a professional. He was Head Professional at
Glendora Country Club for eight years and decided to get back into this area.
Director Wigginton moved to accept the appointment, seconded by Director
Riggins. Approved 5-0.
John Mason will be Director of Instruction, taking over the golf school when it opens. This
will be a full time position in itself.
18. Directors and/or Manager Reports
[For reported topics not described on this agenda, State law prohibits Board
discussion, responses, and action. A Boardmember may ask questions, but only to
clarify what the speaker is reporting.]
Director Wasserman advised that on May 18 they will be bringing some federal officials to
the golf course as part of the dedication of the reclaimed water grant, since the course will be
a prime example of where and how the water will be used.
19. Next Meeting - Thursday, May 21, 1998 at 3:00 p.m.
20. Adjournment
Chairman Kaiser adjourned the meeting at 5:08 p.m.
Resg,ectfully submitted,
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" Edward Kaiser
Chai rman
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Patricia Drew
Meeting Secretary
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