(Feb. 4, 2016) The Ocean Pines Association has less than 25 percent of the reserve funds it should in order to maintain all of its current facilities.
That’s according to Virginia-based firm Design Management Associates Inc., which last week delivered a first draft of a study of Ocean Pines’ replacement reserves.
The study was given to the board of directors during a public meeting on the following day, and General Manager Bob Thompson asked for comments. A public meeting dedicated specifically to the study was hinted at.
This week, the Gazette obtained a copy of the study, which was produced using standards created by the Community Associations Institute.
The document reveals that “site visits” were conducted by reserve specialist Douglas L. Greene, as well as analysts Jude Steele and Chris Cornelison, in September and October of last year.
The association also provided “various design and construction” drawings, and Greene apparently did most of the analysis that appears in the draft.
A 30-year “cash flow funding model” was used as the basis of the document, which assumed that major facilities would have three decades of “useful life.”
According to the study, OPA’s replacement reserves had a balance of $3.043 million at the time it was conducted. The annual income rate on the reserve account was .1 percent, and budgeted contributions for fiscal year 2017 project at approximately $1.3 million.
DMA said annual upkeep of Pines facilities is also about $1.3 million, although the expected balance – what the association should have – was $14.4 million.
The study projects reserves into fiscal year 2046, by which time it is estimated Ocean Pines would have negative $5.7 million in reserves.
Also included in the “interactive reserve study” are several detailed “component life cycle [sic] and costing” analysis of the community center, yacht club, country club, beach club, swimming pools, public works and “parks and infrastructure.” Roads and bulkheads were also examined.
That’s according to Virginia-based firm Design Management Associates Inc., which last week delivered a first draft of a study of Ocean Pines’ replacement reserves.
The study was given to the board of directors during a public meeting on the following day, and General Manager Bob Thompson asked for comments. A public meeting dedicated specifically to the study was hinted at.
This week, the Gazette obtained a copy of the study, which was produced using standards created by the Community Associations Institute.
The document reveals that “site visits” were conducted by reserve specialist Douglas L. Greene, as well as analysts Jude Steele and Chris Cornelison, in September and October of last year.
The association also provided “various design and construction” drawings, and Greene apparently did most of the analysis that appears in the draft.
A 30-year “cash flow funding model” was used as the basis of the document, which assumed that major facilities would have three decades of “useful life.”
According to the study, OPA’s replacement reserves had a balance of $3.043 million at the time it was conducted. The annual income rate on the reserve account was .1 percent, and budgeted contributions for fiscal year 2017 project at approximately $1.3 million.
DMA said annual upkeep of Pines facilities is also about $1.3 million, although the expected balance – what the association should have – was $14.4 million.
The study projects reserves into fiscal year 2046, by which time it is estimated Ocean Pines would have negative $5.7 million in reserves.
Also included in the “interactive reserve study” are several detailed “component life cycle [sic] and costing” analysis of the community center, yacht club, country club, beach club, swimming pools, public works and “parks and infrastructure.” Roads and bulkheads were also examined.