1998-07-23
CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES of REGULAR MEETING
Carnation Room, Civic Center
505 South Vulcan Avenue
THURSDAY, July 23, 1998 at 3:00 p.m.
CALL TO ORDER/ROLL CALL
Chairman Ed Kaiser called meeting to order at 3:08 p.m.
Directors present:
Ed Kaiser, Alan Archibald, Susan Lamson
Directors absent:
p.m.)
Lauren Wasserman, David Wigginton (Mr. Wigginton arrived at 3:45
Also present: Scott Bentley, Rob Powell and John Mason of J.e. Resorts; Ardyce
Jarvis and Jack Ritchie of Carltas Co.; Manager Jim Benson and Secretary Pat Drew.
Publ ic Present:
Sheila Cameron (at 3:55 p.m.)
At 3:10p.m. Chairman Kaiser adjourned the meeting into closed session in the Rose Room
in accordance with Special Meeting Notice of July 17, 1998 and Govt. Code Section
54956.9b; Circumstances: 1) Alleged unsafe condition of public property, and 2) Demand
for Indemnity Concerning Golf Course Development.
Chairman Kaiser reconvened the meeting in the Carnation Room at 3:42 p.m. stating that
there were no reportable actions from the closed session.
Manager Benson explained that Director Riggins had submitted her resignation. Since
Director Riggins was an appointee of Carltas Company, on July 21, 1998 Chris Calkins of
Carltas advised that in accordance with the By-laws, Susan Lamson is the new Carltas
appointee to the ERGA Board of Directors. Ms. Lamson was introduced and welcomed to
the Board.
ORAL COMMUNICATION [3 minutes for each speaker. Maximum 15 minutes for
'oral communication.]
None.
AGENDIZED BUSINESS ITEMS
1. Approve Minutes of Special Meeting of June 11, 1998.
Approval of June 11 minutes was deferred to the next meeting when all Directors
are expected to be present.
2. Review Summary of Monthly Revenues and Expenditures/Financial Statement for May
and June, 1998 (Scott Bentley)
Scott Bentley reviewed the May and June summaries of revenues and expenditures.
In May did 6674 rounds which were 134% over the budgeted number of 4992.
Excess revenues were $70,000 over plan, primarily from play during the week.
Director Wigginton arrived at 3:45 p.m.
Expenditures were a little over plan which reduced the net income to $56,000 over
plan.
Mr. Bentley advised that the course is holding up very well. Play during month of
June was 28% above plan. Revenues were $40,000+ over, most of that in green
fees. Cart rentals were at 77% (this was first full month when non-mandatory carts
was in effect). Change from previous months was negligible. Driving range not
open yet so short the budgeted amount of $16,585. Total revenues were 117% over
budget. Expenditures were at 105% over budget, mostly due to increased
maintenance costs.
Director Kaiser questioned the numbers on the June balance sheet for fixed assets,
furniture/fixtures and equipment. Mr. Bentley will check the numbers with his
Accounting office and respond to question at next board meeting.
3.
Status of Major Hole Sponsors.
Uohn Mason)
John Mason advised that Holes 1, 10 and 16 had been completed and showed a
picture of the completed tee signs. He explained that he is waiting on the flag for the
signs and will then go out and actively sell to major hole sponsors.
4.
Status of Cost Growth.
(A. Archibald/J. Benson)
Director Archibald gave a quick background review on the need for the cost growths.
Since the numbers were last approved by the Board he has, with Board's
authorization, approved some $200,000 in additional costs. Director Archibald asked
the Board to approve the additional hard and soft costs outlined in his presentation
report.
Manager Benson explained, for the benefit of Director Lamson, the process that has
been followed in developing policies and actions.
z
Director Wigginton pointed out that for a $7 million budget, normal contingencies for
a project that size are 15%. This project is just a hair over that 15% and thus falls
within the industry's standards for a project of this nature.
Director Wigginton moved approval of the $1,136,303 as presented in Director
Archibald's report, seconded by Director Archibald. Approved 4-0~ 1 (Wasserman
absent).
5. Potential Course Enhancements.
Director Wigginton reported that he had obtained estimates for the shade structure for
the patio made from the same steel material as the club house. The costs are
extremely high - in the range of $50-60,000. He is now getting cost estimates for a
wooden structure. He will also have estimates for the pump house for next month's
meeting which will include several options. He is working on the rain gutters, and
they have made some adjustments to the pedestrian path, enlarging it and separated
the path to allow the maintenance people to be off the street. They are making
improvements so that Mashburn can pick up trash more conveniently without having
to drive up the road.
Director Wigginton asked the directors to go out to the golf course and consider what
should be the major entrance to the course. He does not feel that at this time there is
an obvious main entrance. Would like the directors' thoughts and input on the
subject.
Chairman Kaiser reviewed the Wish List with the Board and made some adjustments
to the numbers. The Prioritized Wish List was revised accordingly.
Chairman Kaiser moved, Director Archibald seconded, approval of the $800 for the
Tinting of the West Facing Window of the Club House, enclosing the Irrigation~
Fertilization Equipment and improvements to the Passing areas/turn-arounds on cart
paths. Approved 4.-0~ 1 (Wasserman absent)
Estimates for the cost of the pump station enclosure and the passing areas are in
process of being obtained by Director Wigginton. Also the patio covers previously
approved.
6. Discussion/Direction Concerning Course Operations, Conditions Needing Change.
Scott Bentley said they are concerned with the hardness of the ground on the greens
and fairways. In their original contract they had budgeted for capital improvements
in the 2nd and 3rd years for installing various pieces of equipment, one of them was a
hydrojet for $24,667. This is a piece of equipment used on the greens which has
small, needle-like jets for injecting water and nutrients right into the green. It's a way
of loosening up the soil, allowing more air to make healthy and softer greens. All
their courses have the system.
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In addition, the other budgeted items are a Jacobson Turf Sweeper and two Jacobson
Haulers, which are utility carts. They have a national account with Jacobson which
runs on a yearly basis and ends August 31. Prices will change after that date. On
the turf sweeper they could get 30% off and the utility carts 24.5% off. This would
bring the cost of the turf sweeper to $7,587. ($10,800 normal price); the haulers to
$4925 each (normally $6150); the Fairway Aerofier is $5000, for total capital
improvements of $47,104.
Director Archibald moved, Director Kaiser seconded, to authorize J.e. Resorts to
purchase equipment out of operating funds dependent on testing the aerofication
unit and with Director Wigginton's final approval. Approved 4-0-1 (Wasserman
absent)
Scott Bentley advised that they are getting a lot of requests for different types of
functions where a tent would be very valuable. Asked the Board for some feedback
as to whether this would be a desirable investment. It would enhance the golf course
in the type of events that could be held there, and would also bring people who might
not normally visit or' use the course. For a tent the size they would need the cost
would be $12,000 to purchase,plus $1000 per year to have quarterly repairs and
maintenance/cleaning service.
Manager Benson was asked to work with J.e. Resorts on putting together a formal
proposal and bring to the next meeting.
7. 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 Wigginton advised that the San Diego Symphony has contacted staff and
advised that they would like to do a free concert in North County at the end of the
year. Scott Bentley said they are also working with the S.D. Symphony.
Director Archibald advised that the only thing holding up item 8(b) is submittal of the
As-Builts.
8. Items for future agenda:
a) Scheduling November and December Meetings which conflict with the
Thanksgiving and Christmas holidays. Uim Benson)
b)
Approve Notice of Completion of Golf Course.
(A. Archibald)
c)
Tent for Banquet Usage.
(Rob Powell)
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d)
Policy on Charging for Residents' Cards.
9. Next Meeting - Thursday, August 27, 1998 at 3:00 p.m.
10. Adjournment
Chairman Kaiser adjourned the meeting at 4:53 p.m.
Respectfully submitted,
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Patricia Drew, Secretary
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't~O!L-'
. E8ward Kaiser, Chairman
(Rob Powell)
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