2012-09-25 ENCINITAS RANCH GOLF AUTHORITY
MINUTES
CITY OF ENCINITAS CIVIC CENTER—LILAC ROOM
{l N A, 505 S. VULCAN AVENUE,ENCINITAS N CH TUESDAY, SEPTEMBER 25, 2012, at 4:00 p.m.
CALL TO ORDER/ROLL CALL
Chainnan Dean called the meeting to order at 4:01 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, Rod Linville, Kent Graff, JC Resorts; Chris Calkins,
Carltas Company; Jay Lembach, Nancy Sullivan, Kathy Hollywood
(Board Secretary); Dick Stern, Encinitas Ranch HOA
There being a quorum present,the meeting was in order.
ORAL COMMUNICATION
There were no oral communications.
AGENDIZED BUSINESS ITEMS
1. Approval of Minutes of the 08-28-12 Special Meeting. Contact Person: Board Secretary
Hollywood.
RECOMMENDED ACTION: Approve the minutes of the 08-28-12 Special
Meeting.
Chairman Dean requested that the phrase "Dick Stern spoke" be added under Item 45 on
page 3 of the minutes.
ACTION:
Jacob moved, Rudloff seconded to approve the 08-28-2012 Special Meeting Minutes as
amended. Motion carried. Ayes: Dean, Jacob, Rudloff, Shields, Vina. Nays: None.
Abstain: None. Absent: None.
September 25,2012,ERGA Board Meeting Minutes Page 1 of 4
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2. Review Summary of Revenues and Expenditures/Financial Statements/Capital Reserves for
August 2012. Contact Person: JC Resorts: Rod Linville.
RECOMMENDED ACTION: Receive the report.
Mr. Linville reviewed the Summary of Revenues and Expenditures, and Financial
Statements for August 2012
Mr. Graff reviewed the Capital Reserves for August 2012.
3. Request from Dick Stern to have an HOA representative on the ERGA Board. Contact
Person: Chairman Dean
RECOMMENDED ACTION: Review the request and provide direction to staff.
Mr. Calkins stated that ERGA membership was determined by the Development Agreement
between Carltas Company and the City of Encinitas. He stated that the board should only
hear the commentary but is not authorized to take action on the membership of the ERGA
Board and suggested that the ERGA Board consult with legal counsel to determine the
mechanism for amending the ERGA Board membership.
Dick Stern presented his request for an HOA representative on the ERGA Board.
Mr. Calkins suggested that the HOA continue working with ERGA and staff for the next six
months to see if communication improves before initiating their request.
ACTION:
Consensus to direct staff to investigate the mechanism for amending the ERGA Board
membership.
4. Encinitas Ranch Golf Authority — Financial Reserves Policy. Contact Person: Jay
Lembach
RECOMMENDED ACTION: Adopt the Encinitas Ranch Golf Authority Financial
Reserves Policy(Number ERGA001) as presented in Attachment A of the agenda report.
Mr. Lembach presented the Financial Reserves Policy.
Mr.McNair reviewed debt coverage ratio.
Dick Stern requested that the following language be added to the policy: " The Golf Course
has no current capacity to borrow funds in the case of an emergency, and they have no
unencumbered assets available to pledge, that would allow the Agency to obtain any type of
credit arrangement."
September 25,2012,ERGA Board Meeting Minutes Page 2 of 4
ACTION:
Jacob moved, Shields seconded to adopt the Encinitas Ranch Golf Authority Financial
Reserves Policy (Number ERGA001) amended to include the language suggested by
Mr. Stern. Motion carried. Ayes: Dean, Jacob, Rudloff, Shields, Vina. Nays: None.
Abstain: None,Absent: None.
5. Consideration of the establishment of a Rate Stabilization Fund for the Encinitas Ranch
Golf Course in connection with the proposed issuance of the Encinitas Ranch Golf
Authority Revenue Bonds, 2012 Series A (Encinitas Ranch Golf Course Refinancing and
Improvement Project.) Contact Person: Jay Lembach.
RECOMMENDED ACTION: 1) Approve the establishment of the Encinitas Ranch Golf
Authority Rate Stabilization Fund; and 2) Authorize the reclassification of$100,000 from
the Operating Reserve, $149,084 from the Capital Reserve (Account), and $916 from the
undesignated category(total$250,000)to the Rate Stabilization Fund.
Jay Lembach presented the report and Mr. McNair responded to questions regarding
operating reserves.
Dick Stern, James Greco, and Thomas Brophy spoke.
ACTION:
Rudloff moved Shields seconded to: 1 Approve the establishment of the Encinitas
Ranch Golf Authority Rate Stabilization Fund; and 2) Authorize the reclassification
of $100,000 from the Operating Reserve, $149,084 from the Capital Reserve
(Account), and $916 from the undesignated category (total $250,000) to the Rate
Stabilization Fund. Motion carried. Ayes: Dean, Jacob, Rudloff, Shields, Vina.
Nays: None. Abstain: None. Absent: None.
6. Report on course enhancements. Contact Person: JC Resorts: Kent Graff.
RECOMMENDED ACTION: Receive the report.
Mr. Graff reported on course enhancements including aerification and overseeding.
Mr. McNair reported that the Encinitas Ranch Golf Course will be the site of Taylor
Made/Adidas' new product launch.
7. Report on incidents and accidents. Contact Person: JC Resorts: Rod Linville.
RECOMMENDED ACTION: Receive the report.
Mr. Linville and Mr. Graff reported on vandalism and objects being thrown off the bridge
onto the street.
September 25,2012,ERGA Board Meeting Minutes Page 3 of 4
Dick Stem reported on complaints received from homeowners regarding"lawn surfing."
REPORTS FROM DIRECTORS AND/OR MANAGER REPORTS
There were no reports.
ADJOURNMENT
ACTION:
Jacob moved, Vina seconded to adjourn the meeting. Motion carried. Ayes: Dean, Jacob,
Rudloff, Shields,Vina. Nays: None. Abstain: None. Absent: None.
Chairman Dean adjourned the meeting at 5:16 p.m.
Kathy t Board Secretary Bill Dean, Chairman
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September 25,2012,ERGA Board Meeting Minutes Page 4 of 4