2007-08-28
CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF REGULAR MEETING
Lilac Room, Civic Center
505 South Vulcan Avenue
TUESDAY, AUGUST 28, 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 (until 4:45 p.m.), Peter Cota-Robles, Cindy Jacob,
Phil Cotton and Chris Hazeltine.
DIRECTORS ABSENT:
None.
ALSO PRESENT:
Rod Linville and Kent Graff, JC Resorts; Chris Calkins (until 4:55
p.m.), Carltas Co.; Bill Dean, Member of Public; Jay Lembach,
ERGA Treasurer; Nancy Sullivan, Board Secretary Joan Woods.
ORAL COMMUNICATION
Alex Kyman spoke r~garding the Senior Golfrates at Encinitas Ranch Golf Course.
REGULAR AGENDA
1. Approve Minutes of Special Meeting of June 26, 2007 and Special Meeting of July 31,
2007.
ACTION:
Hazeltine moved, Kaiser seconded to approve the June 26, 2007 special meeting minutes.
Ayes: Cotton, Hazeltine and Kaiser. Nays: None. Absent: Cota-Robles and Jacob.
Hazeltine moved, Kaiser seconded to approve the July 31, 2007 special meeting minutes.
Ayes: Cota-Robles, Hazeltine, Kaiser. Nays: None. Absent: Cotton and Jacob.
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Item #9 was taken out of order.
9. Election of Chair and Vice Chair for ERGA Board.
Director Cotton invited Bill Dean, a member of the public who had been attending the
ERGA Board meetings, to join the ERGA Board. Mr. Cotton stated that an official letter
had been sent to Mr. Dean this month. Mr. Cotton then presented a nomination of the
'Chairman and Vice Chairman for the ERGA Board. Mr. Cotton elected Bill Dean as the
Chairman and Cindy Jacob as the Vice-Chairman. Mr. Graff stated that an appointment
was also needed for a designated signer for lease agreement documents. Director Hazeltine
suggested the designated signer be the Chairman.
ACTION:
Cotton moved, Cota-Robles seconded to appoint Bill Dean as the Chairman and Cindy Jacob
as the Vice Chairman ofthe ERGA Board. Ayes: Cota-Robles, Cotton, and Hazeltine. Nays:
None. Abstention: Dean and Jacob.
Chairman Dean then resumed the ERGA Board Meeting.
ACTION:
Cotton moved, Hazeltine seconded the appointment of the Chairman to be the authorized
signatory for all lease agreements. Ayes: Cota-Robles, Cotton, Dean, Hazeltine, and Jacob.
Nays: None.
2. Approve Resolution 2007-01 updating Bylaws amending the ERGA Board meeting day,
time and location and updating the name change from City CommUnity Services Director to
Parks and Recreation Director of the City.
ACTION:
Cotton moved, Jacob seconded the approval of Resolution 2007-01 amending Bylaws with
ERGA Board meeting day, time and location and updated name change from City
Community Services Director to Parks and Recreation Director of the City. Ayes: Cota-
Robles, Cotton, Dean, Hazeltine and Jacob. Nays: None.
3. Review Summary of Revenues and Expenditures/Financial Statement/update on Capital
Reserves for July 2007. (Rod Linville/John McNair)
Mr. Linville reviewed the summary of the July financial report.
Revenues for the month were $552,286 compared to a budget of $563,156 or 98% of
budget; Expenditures were $335,222 compared to a budget of $343,899 or 97% of budget;
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Income for the month was $217,064 compared to a budget of $219,257 or 99% of budget.
Total rounds were 7,838 compared to a budget of 7,924 or 99% of budget.
Mr. Linville reported on August projected financials. Mr. Linville stated that the August
totals were right on budget, with an average of 250-270 rounds per day. He stated that the
Carlsbad Golf Course had been only open for two weeks, and he had not seen a downturn in
rounds. Mr. Linville stated that the rounds in August were steady due to some late play
leagues (Calloway, Taylor Made and Viasat) that were locked in earlier this year and that
revenue may be impacted next year if they move to the Carlsbad course.
Mr. McNair stated that projected rounds for September were very good, with 1080 booked
rounds derived from tournament play. Mr. McNair said that of the booked rounds, 596
rounds were booked for Monday through Thursday business which was a concern of the
Board in the projected rounds. Mr. McNair said that October had booked approximately
400 rounds; and that November and December had light booked activity which was normal
activity for those months.
Mr. Linville addressed the issue on the increase in lease expense brought up from the last
board meeting on July 31, 2007. The increased lease expense was the normal lease
expenses of the cart and fleet maintenance equipment and additionally included a portion of
the clubhouse lease. Mr. Linville stated July lease expenses were back to normal at
$11,543.
Mr. Graff presented the summary of capital reserve and Expenditures for July 31, 2007
which reflected a deficit balance of ($379,099.01). Former Chair, Mr. Kaiser as a member
of the public stated that the deficit was to have been paid by a $300,000 loan authorized by
the Board out of the operating cash reserves account. ERGA Treasurer Lembach stated
that the display ofthe Capital Reserve would be reconciled and presented at the next Board
meeting in September. . Mr. McNair stated that JC Resorts would provide a July balance
sheet to assist with the reconciliation.
Mr. Lembach asked JC Resorts when the auditors could set up the review of documents and
discussed the deadline dates. Mr. Graff stated that the auditors had already met with Rod
Linville and himself for the golf operations, but still needed to meet with the accounting
department. Mr. Graff further stated that the accounting offices in Rancho Bernardo had
flooded and only moved back in the offices last week causing the delay. Mr. Lembach
stated that the accounting department needed to be ready for the auditors by early to mid
October. \
4.
Encinitas Ranch Golf Course Marketing Plan.
(John McNair)
Mr. McNair distributed a marketing plan for July 2007 through June 2008. Mr. McNair
recapped what had been done in the last couple of months which included a tournament
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mailer, a Union Tribune advertisement in June, and a JC mailer which was sent to 11,000
members. Mr. McNair stated the Union Tribune advertising specifically targeted to the
golfer market segment, had been on hold until later in the year to compensate for the
Carlsbad Golf course impact. Mr. McNair recommended updated photographs of the golf
course for print advertisements. Mr. McNair stated the advertisements would focus on the
different experience of Encinitas Ranch course compared to other courses and what sets it
apart.
5.
Review and approve Golf Cart Lease
(Rod Linville)
Mr. Linville updated the Golf Cart Lease status. E-Z-Go (golf cart lease) sent their
mechanics who reviewed the battery issues with the carts. E-Z-Go mechanics felt it was a
battery cable issue and stated they would replace all the cables. Mr. Linville stated that
negotiations on the lease would continue in March 2008 when leases are due.
6.
Report on Course Enhancements
(Kent Graff)
Mr. Graff reported that he met with the Men's Club and updated them on the course
enhancements. Mr. Graff stated there was a difficulty with the poor water quality issue
which caused the continual need of fertilizing. Mr. Graff suggested that the Board provide
some clarity to the Men's Club on the ERGA Board functions as related to the City of
Encinitas and the administrative decisions. Mr. Graff recapped that the fertilizer was a time
release formula and there was a measurable difference with the fairways being extremely
healthy. Mr. Graff stated there were not plans for "over seeding" next year.
7.
Update on Cell Tower Discussions.
(John McNair)
Mr. McNair stated there were no changes or updates.
8.
Incidents and Accidents.
(Rod Linville)
Mr. Linville said he had nothing to report for the month.
9. Election of Chair and Vice Chair for ERGA Board.
This item was addressed before item 2.
10. Directors and/or Manager Reports
Director Hazeltine reported that he received a compliment letter on D.R. Benson, a golf
instructor at the golf course.
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11. Next Meeting - Tuesday, September 25,2007 at 4:00 p.m.
12. Adjournment
Chairman Dean adjourned the meeting at 5:30 p.m.
Respectfully submitted,
(~ / ~/tv yJ~
J oal Woods, Board Secretary
JId)~ ja.-
William T. Dean, Chairman of the Board
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