2007-07-31
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ENCIN ITAS
NC II
CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF SPECIAL MEETING
Golf Course Clubhouse
Quail Gardens Drive
TUESDAY, JULY 31, 2007 at 4:00 p.m.
CALL TO ORDER/ROLL CALL
Chairman Kaiser called the meeting to order at 4:07 p.m.
DIRECTORS PRESENT: Edward Kaiser, Peter Cota-Robles, and Chris Hazeltine.
DIRECTORS ABSENT: Cindy Jacobs and Phil Cotton.
ALSO PRESENT: Rod Linville and Kent Graff, JC Resorts; Chris Calkins, Carltas Co.;
Bill Dean, Member of Public; Jay Lembach, ERGA Treasurer;
Nancy Sullivan, Board Secretary Joan Woods.
ORAL COMMUNICATION
None.
REGULAR AGENDA
1. Approve Minutes of Special Meeting of June 26, 2007.
Item deferred to the August meeting, there was not a quorum present. Director Cota-Robles
was absent from the June 26, 2007 meeting.
2. Review Summary of Revenues and Expenditures/Financial Statement/update on Capital
Reserves for June 2007. (Rod Linville/John McNair)
Mr. Linville reviewed the summary of the June financial report.
Revenues for the month were $472,224 compared to a budget of $473,105 or 100% of
budget; Expenditures were $437,175 compared to a budget of$373,339 or 117% of budget;
Income for the month was $35,049 compared to a budget of $99,766 or 35% of budget;
Year to date net income was $1,409,764 compared to a budget of $1,396,154 or 101% of
budget. Total Rounds were 6,924 compared to a budget of 6,823 or 101% of budget. Year
to date total rounds were 70,959 compared to 71,500 or 99% of budget. As a comparison,
last year's FY June 30, 2006 Total Rounds were 70,392 with this year's FY June 30, 2007
Total Rounds at 70,959. This showed an increase of approximately 600 Total Rounds.
Mr. Kaiser requested Mr. Linville respond to the increases over budget on some of the
expense items, namely Administrative/General, Marketing, and Leases. Mr. Linville said
the increase in Administrative/General was due to moving the Security Guard Expense to
this category. Mr. Graff stated the maintenance expense increase was due to Water
expenses being budgeted for $25,000 and the actual was $34,000. Mr. Lindville said the
Marketing increase was due to the increase in photography expenses for advertising of the
new clubhouse. Operational Improvements increased due to air conditioning improvements
costs of $5,000 and replacement fencing costs of $4,000.
Mr. Linville stated he will have Mr. McNair further examine the lease expense increase and
discuss at the next scheduled meeting.
3.
Follow-up Review of Clubhouse Expansion Financing
(John McNair/Nancy Sullivan)
Mrs. Sullivan reviewed the Summary of Capital Reserve and Expenditures as of June 30,
2007 which reflected the Clubhouse Expansion completion. The June 30, 2007 balance in
total of all reserves indicated a deficit balance of ($295,024.49). Chairman Kaiser
indicated that the Board at the March 27, 2007 authorized $300,000 to be moved from
operating cash reserves to cover the Clubhouse Expansion and replenishment of the
reserves by a budgeted amount of $10,000 monthly for 30 months. This was adopted with
the budget on May 25,2007.
Director Hazeltine suggested that Mr. McNair provide a strategy for the replenishment of
the Capital Reserves at the next board meeting with possible mid year adjustments if
necessary .
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Mr. Lembach requested the Board's direction on the replenishment of the Capital Reserves
and the ERGA 2007 sales tax repayment amount to the City of Encinitas.
Mr. Lembach suggested that the sales tax repayment be agendized for the next ERGA board
meeting. Mr. Lembach and Ms. Sullivan stated that they would prepare the agenda item for
the board to review.
4.
Review and approve Golf Cart Lease
(Rod Linville)
Mr. Linville presented a Golf Cart Analysis on different Golf Cart Lease options between
both E-Z Go and Club Car. The EZ-Go proposal was for 92 cars including a "single point
watering system" (for batteries) with no incentive cars offered, so an additional lease would
be needed for the Range Vehicle and two Player Assistant Cars. The proposed 48 month
lease amount totaled $459,640.48. The Club Car proposal was for 92 cars, incentive cars
(for no charge) included were the Turf Utility Range Vehicle and two Player Assistant Cars.
The Club Car proposed 48 month lease totaled $355,145.76 which included the additional
option of "single point watering system" (for batteries). Both proposals included two year
warranties for the batteries.
Mr. Linville also reviewed maintenance costs for March 04/05 ($9,684.00), March 05/06
($10,284.00), March 06/07 ($13,679.00), with estimated maintenance costs of $6,200.00 for
March 07/08. The actual maintenance costs for March - June 2007 was $1,682.00. Mr.
Linville suggested the decrease in maintenance costs was due to the replacement of parts
(batteries) in the prior year 2005/2006 and not replacing broken windshields. It was
suggested by Chairman Kaiser to pursue avenues with EZ-Go on the warranties for the
batteries' replacement, or an alternative for EZ-Go could be to let ERGA out of the lease
prior to April 2008.
Mr. Linville stated that the current lease with EZ-Go ends in April 2008. Mr. Hazeltine
asked if the pricing could be different in April of 2008. Mr. Linville stated that it could, but
Mr. McNair would re-negotiate pricing at that time.
Chairman Kaiser advised Mr. Lindville to move forward to negotiate the new leases.
Mr. Dean asked if there were trash dispensers available on either of the carts. Mr. Graff
said that there was on the Club Car. Mr. Graff advised against this option as the trash can
was located under the seats and so are the batteries, which may cause maintenance
problems. Mr. Graff stated that the trash issues are due to the packaging of the food not
being as compact. He stated that larger trash cans on the course may be needed. Mr. Dean
said he would check with EDCO to see if they would be interested in providing larger trash
cans with advertising as an offset to the added expense.
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5.
Report on Course Enhancements
(Kent Graff)
Mr. Graff reported on Course Enhancements, that they had been actively spraying and
fertilizing the course every two weeks. Mr. Graff reported that they had increased water use
to compensate for the salt level of the recycled water. Chairman Kaiser commented that the
greens looked good, and the "not over seeding" tactic used this last year seems to be a trend
with other golf courses.
Mr. Lindville said he had received great comments regarding the Clubhouse. Mr. Lindville
said lunch service had been busy. Chairman Kaiser passed on some comments he received
about food costs and increasing the patio service coverage.
6.
Update on Cell Tower Discussions.
(John McNair)
Mr. McNair was absent; this item would be addressed at the next meeting.
7.
Incidents and Accidents.
(Rod Linville)
Mr. Linville reported on two items.
The first item was the Security Guard surprised some vandalism suspects and his flashlight
struck one suspect on the shoulder. There was no police report, and no one came forward to
report an injury.
The second item was a golfer who was accidentally hit with a golf ball. No incident report
filed.
8. Directors and/or Manager Reports
Chairman Kaiser announced that he was resigning as Chairman; he stated he plans to attend
the meetings while he was still in the area. He provided written notification to be forwarded
to Director Cotton. Director Cota-Robles said that he valued Chairman Kaiser's
leadership.
Director Hazeltine suggested that the selection of both a Chair and Vice-Chair be agendized
for the next meeting. Director Hazeltine also suggested electronically (e-mail) notifying
members of the agendas with the supporting documents. Director Cota-Robles requested
that there be copies provided at the actual meetings.
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9. Next Meeting - Tuesday, August 28,2007 at 4:00 p.m.
10. Adjournment
Chairman Kaiser adjourned the meeting at 5:15 p.m.
Respectfully submitted,
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J~~ Woods, Board Secretary
Edward O. Kaiser, Chairman of the Board
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