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1999-04-22 CITY OF ENCINITAS ENCINITAS RANCH GOLF AUTHORITY MINUTES OF REGULAR MEETING Carnation Room, Civic Center 505 South Vulcan Avenue THURSDAY, APRIL 22,1999 at 3:00 p.m. CALL TO ORDER/ROLL CALL Chairman Kaiser called the meeting to order at 3:05 p.m. Directors Present: Edward Kaiser, Susan Lamson, Robert Acker, Alan Archibald and David Wigginton, being all of the directors. Also Present: Jack Robson of Cornerstone; John White and Chris Calkins, Carltas Co.; Scott Bentley and Rod Linville, J.e. Resorts; J. Mickey Scoffin and Bill Pultz, Encinitas Ranch Men's Golf Club; Manager Jim Benson, Secretary, Pat Drew, and Accountant Nancy Sullivan. ORAL COMMUNICATION [3 minutes for each speaker. Maximum 15 minutes for oral communication.] None. ACENDIZED BUSINESS ITEMS 1. Approve Minutes of Regular Meeting of March 25, 1999. Director Archibald moved approval seconded by Chairman Kaiser. Approved 5-0. 2. Review/approve Signage Design for Main Entrance to Golf Course. (David Wigginton) Director Wigginton advised that he had obtained drawings and estimate of cost for the signage lettering for the entrance to the golf course. Bronze lettering would cost about $5000.00. Scott Bentley said their sign maker had recommended that aluminum painted black would be a lot easier to maintain; it could be easily touched up and wouldn't rust. Following discussion the Board agreed to go with bronze colored aluminum lettering, at a cost of about $1500 plus tax and installation charges. Sign would not include the logo. Jack Robson passed a color rendering for the Board's review and approval. Manager Benson recommended that if it does not go to Planning Commission the Board direct and authorize Director Wigginton to proceed with developing the sign to include the lighting as approved at the March 25, 1999 Board meeting. Director Wigginton moved that if this is to be a recommendation to the Planning Commission, the Board approve the sign to be constructed by Cornerstone with letters supplied by ERGA, and require lighting as part of the sign development. Seconded by Director Archibald. Approved 5-0. 3. Discuss Use of Excess Land (Hole 14). Chairman Kaiser said he had requested this item for discussion. With the realignment of hole 14 there will be excess land but to-date he hadn't seen any drawings showing elevations and how much land is involved. Jack Robson said that he and Director Wigginton and Phil Cotton from the City had reviewed hole 14 the previous week with the Cornerstone landscape architect. During the review it was determined that in the area that Hunsaker was proposing to lower and move the tees, there was a main line and communication line from controller to controller going right under the area that was to be graded. He said that because of the conflict with the lines they had been asked to redesign the area showing the limits of the grading. The landscape architect is working on the proposal to see what it would look like and has been asked to do two proposals, including costs: 1) to keep in the same direction that Hunsaker had for lowering the whole area, moving the tees back and relocating the main line and communication line; and 2) to prepare a proposal to incorporate the suggestions from David Wigginton and Phil Cotton to do a minimal amount of grading just to improve their sight-line. Mr. Robson said he would have both proposals for review at the next Board meeting. Director Archibald said that since the agenda item was to discuss the use of the excess land he felt the Board should do that first before determining what the grading should look like. If it is to be considered for parkland then the Board should bite the bullet and get the lines relocated and level out the area now. Director Wigginton stated he believes that at this time it is not necessary to get into the big issue of whether it is going to be park land, who should buy what for what, or who should reimburse who for what. The object of the exercise is to get tees relocated and make the hole safe. This can be done with what he is proposing, namely, that Cornerstone do a minimal amount of grading - enough to achieve the desired improvement to their sight line. The rest could be left in turf and irrigated as part of the course, or maybe as a leisure area. It would be quick and clean. At this time there is no reason to do massive grading as originally proposed in order for Cornerstone to achieve their sightline improvements. Chairman Kaiser asked if a partial grading would render part of the property useless. It was agreed that indeed this would occur, therefore the issue should be z discussed. As indicated, there is no reason to do massive grading as originally proposed until the use is known. Scott Bentley said that if the tee is lowered far enough so that trees could be planted, there is a good possibility that the hole could be changed back to a par 4 later should the par 3 not be well received by the golfing public. Director Archibald said that this site should also be considered in connection with the proposed bridge and the cart paths. It would be an excellent place for a restroom because it would be convenient for players going between holes 13 and 14 and from 15 to 16. Chairman Kaiser suggested that the meeting be reconvened at the hole 14 site in order to get a better feel for what Director Archibald is suggesting. All directors agreed and requested the Manager to poll the directors for a mutually convenient time. 4. Progress Report from Bridge Sub-committee. (A. Archibald/D. Wigginton) Director Archibald advised that in addition to the suggestions he had laid out in item 3, based on the letter he has received from Simon Wong, the bridge engineers, the Board should be prepared to spend $250,000 for the bridge. The dollar amount is based on a prefabricated bridge as previously discussed. 5. Review Summary of March, 1999 Revenues and Expenditures/Financial Statement. Scott Bentley) Scott Bentley reviewed the financial statement for March and advised that all revenue categories were positive. Expenses were 111 % of plan, with about $20,000 over plan. The major areas that were over were Administrative & General for a $6500 audit; in the golf area the payroll was $8000 due to loss of income and benefits of about $2500. 6. Golf Course Budget for FY 1999/00. (Scott Bentley) Mr. Bentley distributed four different scenarios for the FY 1999/2000 budget and indicated that the only difference in each one was the proposed rates. Each budget scenario projects the rounds at 73,900. The first full year of business the course did about 71,000 rounds. Changes to the budget would include $25,000 in golf shop payroll to handle the additional rounds, equaling about one more person per day and some raises. Now that the course is in its second year they will start incurring additional costs for two weeks accrued vacation for employees. They want to initiate a safety bonus program to encourage safe work habits, and a pinnacle award, which acknowledges those employees that go above and beyond their normal responsibility level. The employees nominate candidates and vote on the :) nominees for this award. This is something that they do at their other courses and want to have Encinitas consistent with them. In the Maintenance Department wages and salaries have gone up a little; they gave the superintendent a raise during this past year in recognition of the great job he is doing. The department has been understaffed during the entire year but they are projecting to be fully staffed during the coming year, which will mean an increase over last year's costs. In addition, an Increase in wages will be necessary, along with accrued vacation costs for people who have been there for a year. As with the Golf Department, Maintenance employees are now accruing two weeks' vacation. Safety and Pinnacle Award programs will also be instituted for this department. Also projecting for the chemical 'bioject system to help with the maintenance of the golf course. Still have some cart path expenses for expansion and improvements, and they are also projecting for a complete overseeding of the course. In Administrative & General have allocated about $2500.00 in increased payroll and benefits; also an increase in legal and accounting to pay for an outside auditor. Have allocated costs for a new MIS department to maintain the computer system at the golf course. Not a budgeted item last year. Chairman Kaiser asked that the Board give Manager Benson time to work with Scott Bentley to review the figures and to bring back to the Board for review at the May board meeting. Also requested that the Directors have sufficient time to review the material prior to the board meeting. Scott Bentley reviewed the income numbers for all scenarios using the three different rate increase examples ranging from $1 to $5. He said he would recommend increases of between $3 and $4. Chris Calkins requested review of the revenue projections given to the purchaser of the revenue bonds. His recollection was that the projections contemplated an increase every year. He also suggested referring to the numbers on the debt service for the CFD share, and any other administrative costs so that the bottom line can be compared with what was represented at the time the bonds were sold as net revenues. Manager Benson reminded the Board that there is an amount of $2.2 million that needs to be generated by June 30, 2000 on the net revenue calculations as part of the bonds; need to ensure those funds get released. That number probably drives what is done with rate increases as much as any others. He will bring the calculations back to the next board meeting. 7. Liquor License. (Scott Bentley) "l~ Scott Bentley said he would check with the former ABC person Director Archibald had previously mentioned, in order to seek help in getting the license. 8. Non-Golfer Access to Golf Course. (Scott Bentley) Rod Linville asked if it is possible to mark the course as "private property - for golfer use only" in order to ,have more leverage in keeping non-golfers off the course. Has had a problem with people allowing their dogs to run loose on the golf course, and also young people on their bicycles. At some of their other courses they have had a problem with skateboarders on the cart paths and greens. Director Archibald requested J.C. Resorts to come back with proposed signage and have the course marshals take names and keep a record. If it becomes habitual then we may need to adopt an ordinance to be able to cite them. Chris Calkins suggested that they might want to consider extending the split rail fence on Leucadia Boulevard as a deterrent. Director Wigginton left the meeting. 9. Men's Club's Year 2000 Tournament Schedule. (Pres. Mickey Scoffin) Men's Golf Club President Mickey Scoffin gave the board an update on the Club's activities. He advised that Wednesday's play is doing well with between 40 and 50 players each week. 'Last year they requested seven tournaments; this year they are asking for twelve, since many members cannot play weekdays. Director Archibald recommended that JC Resorts review the proposed dates and bring back to the Board at the next meeting. Should also determihe what date or dates the Women's Golf Club may be considering for their tournament(s). Chairman Kaiser recommended that the board permit the Men's Club to put a tentative hold on the dates they are requesting and bring back to the next board meeting for the Board's approval. 10. Approve Request for USGA Public Links Qualifier June 14 (Rod Linville) Rod Linville said that before former golf pro Rob Powell left J.C. Resorts, he had given a verbal approval to the request for a June 14 qualifying event and the promoters had gone ahead with their flyers for June 14 showing tournament fees of $25.00, etc. Director Kaiser moved approval of the arrangements made by Rob Powell, seconded by Director Archibald. Approved 4-0 (D Wigginton had previously left the meeting) 11. Potential Course Enhancements. 5i Rod Linville advised that because the clubhouse facility is so overcrowded there is a need to expand. They have obtained a quote from Home Depot for a 10 x 12- foot storage shed at $1,230.00. This shed could be put out in back of the clubhouse. This would free up space inside the clubhouse and enable them to get things off the floor, Director Archibald recommended that if JC Resorts feels it is necessary, he would move that the Board authorize them to proceed, seconded by Director Kaiser. Approved 4-0. Jack Robson said their landscaper had advised that the five Canary Island Palm Trees the Board had previously approved being temporarily relocated into boxes would not survive being returned to the boxes. He asked permission to plant them in the ground in the area where they are scheduled to go. Director Archibald reminded Mr. Robson that the trees would need to be watered since the irrigation system on the corner where they are to go is not for ornamental trees. 12. Discussion/Direction Concerning Course Operations, Conditions Needing Change. John White said he had received some complaints from people who have family members who are junior players. What is the policy for weekend play for juniors? The complaints are that they cannot walk on before noon. Mr. White was advised that the young people could pay adult rate and make a tee time anytime during the day. However, before 1 :00 p.m. they cannot make a tee time with the special junior rate. 13. 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.] Manager Benson distributed copies and briefly discussed the contents of a letter received by David Wigginton from Cary Bickler, 14. Next Regular Meeting - Thursday, May 27, 1999 at 3:00 p.m. 15. Items for future agendas: a) b) c) Approve Landscape Maintenance Agreement Approve Notice of Completion of Golf Course Discussion of Use of Excess Land at Hole 14. (Mgr. Benson) (Alan Archibald) 6 d) Update from Bridge Sub-Committee (A Archibald/D Wigginton) e) Review Summary of Revenues and Expenditures (Scott Bentley) f) Potential Course Enhancements 16. CLOSED SESSION: CONFERENCE WITH REAL PROPERTY NEGOTIATORS. AUTHORITY: Govt. Code 54956.8 PROPERTY: AREA ADJACENT TO TEE OF GOLF COURSE HOLE 14. AUTHORITY NEGOTIATOR: MANAGER BENSON TO NEGOTIATE WITH: CORNERSTONE COMMUNITIES UNDER NEGOTIATION: TERMS AND CONDITIONS OF USE. Closed session not required. 17. Adjournment Chairman Kaiser adjourned the meeting at 5:04 p.m. to 3:15 p.m. on Tuesday, April 27, 1999, at Hole 14 on the golf course. Respectfully submitted, Or ~ ~~-u/~_^-;_/(+~/J Patricia Drew, Secretary ~dL.' Edward Kaiser, Chairman 71