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2015-06-23 ENCINITAS RANCH GOLF AUTHORITY REGULAR MEETING MINUTES Encinitas Ranch Golf Course Clubhouse E N C 1 N I TAS 1275 Quail Gardens Drive, Encinitas, CA RANCH TUESDAY,JUNE 23,2015, at 4:30 p.m. CALL TO ORDER/ROLL CALL Chair Houk called the meeting to order at 4:42 P.M. Directors Present: Chair Richard Houk, Vice Chair Cindy Jacob, Directors Glenn Pruim (Director of Public Works) and Larry Watt(Interim City Manager) Absent: Lisa Rudloff(Director of Parks and Recreation) Also Present: Erik Johnson, John McNair, Kent Graff, JC Resorts; Chris Calkins, Carltas; Tim Nash (Finance Director), Nancy Sullivan, Kathy Hollywood (Board Secretary), Jace Schwarm (Risk Manager), City of Encinitas; 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 the minutes of the May 26, 2015 regular meeting. RECOMMENDED ACTION: Approve the minutes. Board Secretary Hollywood reported that the minutes had been corrected to reflect Director Glenn Pruim as absent. ACTION: Watt moved, Jacob seconded to approve the minutes of the May 26, 2015 with corrections as noted. Motion carried. Ayes: Houk and Watt. Nays: None. Absent: Rudloff. Abstain: Jacob and Pruim 2. Review of ERGA Financial Summary of Revenues, Expenditures, and Capital Reserves for May 2015. Contact Person: JC Resorts, Erik Johnson RECOMMENDED ACTION: Receive the report. Mr. Johnson and Mr. McNair reviewed the financial summaries and the Capital Reserves for May 2015. 3. Discussion regarding General Liability& Directors Error and Omissions insurance coverage for ERGA effective 7/1/15 to include discussion of existing liability insurance coverage provided by manager, J.C. Resorts. Contact Person: City Risk Manager Jace Schwarm RECOMMENDED ACTION: Receive the oral report, discuss and provide direction as needed. City Risk Manager Jace Schwarm presented the report and responded to questions. ACTION: Consensus to direct staff to revisit the contingency reserve policy to include payment of deductible from the reserve fund and.to bring back suggested language if necessary. 4. Calculation of Estimated Excess Golf Course Net Revenues for fiscal year 2014-2015. Contact Person: Finance Director Tim Nash RECOMMENDED ACTION: That the Board of Directors approve the allocation of $100,000 to fund the Encinitas Ranch Golf Course contingency reserve and approve payment of $55,923 towards the golf course share of the Encinitas Ranch Community Facilities District (CFD) #1 special assessments from excess golf course net revenues as of June 30, 2015. City Finance Director Tim Nash presented the report. ACTION: Watt moved, Pruim seconded to approve the allocation of $100,000 to fund the Encinitas Ranch Golf Course contingency reserve and approve payment of $55,923 towards the golf course share of the Encinitas Ranch Community Facilities District (CFD) 91 special assessments from excess golf course net revenues as of June 30,2015.- Motion carried. Ayes: Houk, Jacob, Pruim and Watt. Nays: None. Absent: Rudloff. Abstain: None. REPORTS FROM DIRECTORS AND/OR MANAGER REPORTS Kent Graff stated that the golf course staff had reviewed the City's Integrated Pest Management program and there did not appear to be any impacts to the golf course. Interim City Manager Larry Watt provided an update on the recruitment for a new City Manager. ADJOURNED Chair Houk adjourped the meeting at 5:35 P.M. - —al Kathy Hollywood, Board Secretary Richard Houk, Chair