2008-05-27
CITY OF ENCINITAS
ENCINITAS RANCH GOLF AUTHORITY
MINUTES OF REGULAR MEETING
CIVIC CENTER
505 SOUTH VULCAN
TUESDAY, MAY 27, 2008 at 4:00 p.m.
CALL TO ORDER/ROLL CALL
Chairman Dean called the meeting to order at 4:04 p.m.
DIRECTORS PRESENT: Peter Cota-Robles, Phil Cotton, Bill Dean, Chris Hazeltine and
Cindy Jacob.
DIRECTORS ABSENT: None.
ALSO PRESENT: John McNair, Rod Linville, Kent Graff, JC Resorts; Chris Calkins,
Carltas (until 5:05 p.m.); City Staff Jay Lembach, Nancy Sullivan,
and Board Secretary Joan Woods.
ORAL COMMUNICATION
None.
REGULAR AGENDA
1. Approve Minutes of Regular Meeting of April 22, 2008.
ACTION:
Cotton moved, Cota-Robles seconded to approve the 4-22-08 Regular Meeting minutes.
Motion carried: Ayes: Cotton, Cota-Robles, Dean, Hazeltine, and Jacob. Nays: None.
2. Discussion of action minutes for Encinitas Ranch Golf Authority Meetings. Contact
Person: Board Member Cotton.
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There was discussion on action minutes for Encinitas Ranch Golf Authority Meetings. Board
Member Cotton proposed that only action minutes be prepared for all future meetings and audio
recordings of the meetings be retained permanently.
CONSENSUS:
There was Board consensus to direct the Board Secretary t() prepare action minutes for the
May 27, 2008 meeting and agendize this item for the June meeting for further discussion.
3. Treasurers Quarterly Investment Report. Contact Person: Treasurer Lembach.
Treasurer Lembach presented the staff report on the first installment of the quarterly investment
report.
Staff recommendation was to receive report.
4. Review Summary of Revenues and Expenditures/Financial Statement/update on Capital
Reserves for April. Contact Person: JC Resorts: Rod Linville/John McNair.
Mr. Rod Linville presented the April summary of revenues and expenditures.
Staff recommendation was to receive report.
5. Adopt Resolution No. 2008-01 to approve Fiscal Year 2008/2009 Encinitas Ranch Golf
Authority Annual Budget. Contact Person: JC Resorts: John McNair and Rod
Linville.
Mr. John McNair presented the proposed Fiscal Year 2008/2009 Encinitas Ranch Golf Authority
annual budget. This year's budget had been reviewed by the budget sub-committee, consisting of
Chairman Dean, Board Member Hazeltine, Treasurer Lembach, City Staff Sullivan and JC Resorts
Representative McNair.
Staff recommendation was to adopt Resolution No. 2008-01 approving Fiscal Year 2008/2009
Encinitas Ranch Golf Authority Annual Budget.
There was Board discussion regarding the rate structure and the proposed budget capital
expenditures. Mr. McNair stated that during the budgetary process, an evaluation of the impact of .,
reduction in rounds versus revenue was reviewed because of the concern from the golfers about the
pace of play. The results revealed that the fiscal impact was too high and the increased rates would
be prohibitive. Chris Calkins from Carltas suggested in future budgets to explore other revenue
possibilities similar to Carlsbad linked with lodging and/or corporate rate structures for a limited
portion of rounds.
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ACTION:
Cota-Robles moved, Jacob seconded to adopt Resolution No. 20Q8-01 approving Fiscal Year
2008/2009 Encinitas Ranch Golf Authority annual budget. Motion carried: Ayes: Cotton,
Cota-Robles, Dean, Hazeltine, and Jacob. Nays: None.
6. Adopt Encinitas Ranch Golf Authority Six-year Financial Plan. Contact Person:
Treasurer Lembach.
Treasurer Lembach presented the staff report which presented two alternative versions of the six-
year financial plan. At the May 5, 2008 budget subcommittee meeting, TreasurerLembach was
directed to prepare a financial plan with an option which utilized all surplus golf course net
revenues that would be distributed in accordance with the Development Agreement (Attachment A)
and a second option in which these surplus golf course net revenues would be retained to build up
the level of reserves (Attachment B) to enhance the long-term financial viability ofthe Golf Course.
Attachment B required that ERGA negotiate an agreement with the Carltas Company and the City
of Encinitas to modify or temporarily suspend the distribution requirements of Section 3.2.1.3 of
the Development Agreement (Compensation to Owner for Contribution of Golf Course Parcel).
Staff recommendation was to adopt an Encinitas Ranch Golf Authority six-year financial plan.
ACTION:
Hazeltine moved, Cotton seconded to adopt Encinitas Ranch Golf Authority six-year
financial plan (Attachment B) in which the surplus golf course net revenues would be
retained to build up the level of reserves and ERGA negotiate an agreement with the Carltas
Company and the City of Encinitas to modify or temporarily suspend the distribution
requirements of Section 3.2.1.3 of the Development Agreement. Motion carried: Ayes:
Cotton, Cota-Robles, Dean, Hazeltine, and Jacob. Nays: None.
7. Report on Course Enhancements. Contact Person: JC Resorts: Kent Graff.
Kent Graff stated that aerification was being done on the second half of the course and
continued work on hole #7.
Staff recommendation was to receive report.
8. Update on Cell Tower Discussions. Adopt Resolution No. 2008-02 to authorize Chairman
to execute Verizon cell tower agreements. Contact Person: JC Resorts, John McNair.
Mr. McNair updated the Board on the status ofthe Verizon Cell Tower negotiations. The
Option and Land Lease Agreements had been executed by ERGA and forwarded to
Verizon.
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Staff recommendation was to receive update on cell tower discussions and adopt Resolution
No. 2008-02.
Resolution 2008-02 was not necessary since the August 28, 2007 minutes reflected Board
action authorizing the Chairman to execute ERGA lease agreements.
9. Incidents and Accidents. Contact Person: JC Resorts: Rod Linville.
Mr. Rod Linville reported on one health incident, two accidents and a homeowner
complaint.
Staff recommendation was to receive report.
REPORTS FROM DIRECTORS AND/OR MANAGER REPORTS
Chairman Dean reported the Board had received correspondence from Gwenn Truax and he would
respond to her concerns.
Chairman Dean adjourned the meeting at 5 :50 p.m.
Respectfully submitted,
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Jobn Woods, Board Secretary
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Bill Dean, Chairman of the Board
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