2012-07-17 ENCINITAS RANCH GOLF AUTHORITY
SPECIAL MEETING MINUTES
CITY OF ENCINITAS CIVIC CENTER—LILAC ROOM
505 S. VULCAN AVENUE,ENCINITAS
1. TUESDAY JULY 17 2012 at 4:00 m.
RANCH
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CALL TO ORDER/ROLL CALL
Chairman Dean called the meeting to order at 4:00 p.m.
DIRECTORS PRESENT: Chairman Bill Dean, Cindy Jacob, Gus Vina (City Manager), Lisa
Rudloff(Parks and Recreation Director), and Greg Shields (Interim
Director of Engineering)
DIRECTORS ABSENT: None
ALSO PRESENT: John McNair, JC Resorts; Jay Lembach, Nancy Sullivan, Kathy
Hollywood(Board Secretary); Dick Stern, Encinitas Ranch HOA
There being a quorum present,the meeting was in order.
AGENDIZED BUSINESS ITEMS
1. Determination of methodology to be utilized to calculate Golf Course's annual contribution
to the payment of the Community Facilities District #1 Bonds (The "CFD Golf Course
Bonds.") Contact Person: Jay Lembach
RECOMMENDED ACTION: 1)Approve the recommended methodology {Method(3)1
to calculate ERGA's required contribution to the CFD for the next fiscal year,to be applied
consistently going forward; and 2)Authorize the payment of the $331,364 of Excess Golf
Course Net Revenues (EGCNR)to the Community Facilities District#1 Special Tax fund
by the due date of August 1 st,2012.
Mr. Lembach presented the staff report.
ACTION:
Jacob moved, Vina seconded to approve a policy to require the use of the
recommended methodology #3 from the agenda report, base the contribution on the
estimated actual results of the prior fiscal year, to calculate ERGA's required
contribution to the CFD for the next fiscal year and for the methodology to be applied
consistently going forward. Motion carried. Ayes: Dean, Jacob, Rudloff, Shields,
Vina. Nays: None. Abstain: None. Absent: None.
Mr. Lembach provided a summary of the golf course's estimated actual results (provided by the
Golf Course Operator) for FY 2011-2012, in a handout.
July 17,2012, Special ERGA Board Meeting Minutes Pagel of 3
Dick Stern spoke.
Sheila Cameron spoke.
ACTION:
Vina moved, Jacob seconded to: 1) authorize allocating $100,000 to the contingency
fund; 2) authorize a payment of $253,127 of Excess Golf Course Net Revenues
(EGCNR) to the Community Facilities District#1 Special Tax fund by the due date of
August 1, 2012; and commit that the leadership team will continue to work on
explaining all of the reserves and their purpose for communication back to the
homeowners. Motion carried. Ayes: Dean, Jacob, Rudloff, Shields, Vina. Nays:
None. Abstain: None. Absent: None.
2. Refinancing of ERGA 2004 Golf Course Revenue Refunding Bonds. Contact Person: Jay
Lembach
RECOMMENDED ACTION: Receive oral report, discuss, and take action as appropriate.
Chairman Dean reported on the possibility of refinancing the ERGA 2004 Golf Course Revenue
Refunding Bonds.
Donna Westbrook spoke.
Mr. Lembach stated that the bond refinance team Financial Advisor is Fieldman Rolapp and
Associates, the Attorney is Best, Best & Krieger, and the Underwriter is Stone & Youngberg.
These are professional services contracts,where the providers only get paid if, and when,the related
bond issues close.
ACTION:
Vina moved, Jacob seconded to authorize the signing of documents necessary to put
the bond refinance team together so the process of refinancing can begin. Motion
carried. Ayes: Dean,Jacob, Rudloff, Shields, Vina. Nays: None. Abstain: None.
Absent: None.
REPORTS FROM DIRECTORS AND/OR MANAGER REPORTS
There were no reports from directors and/or manager reports.
ADJOURNMENT
ACTION:
Jacob moved, Shields seconded to adjourn the meeting. Motion carried. Ayes: Dean,
Jacob,Rudloff, Shields,Vina. Nays: None. Abstain: None. Absent: None.
July 17,2012, Special ERGA Board Meeting Minutes Page 2 of 3
Chairman Dean adjourned the meeting at 4:42 p.m.
Kathy Ho Ood,vf3oard Secretary Bill Dean, Chairman
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July 17,2012, Special ERGA Board Meeting Minutes Page 3 of 3