Everybody thank you for all your help, a lot of the terminology is above my head. Also I may have not been clear but to clarify:
The grass was not installed this winter, it was installed February 2012. Furthermore I water twice a week, (Wed and Sat) with my sprinkler system. This is for 12 minutes in each zone. I do NOT water everyday.
At this point it seems like I guess I have to hire a local pesticide company to see what can be done. Are you guys suggesting that I let the grass grow out for a long time before cutting it again?