by Greg Ellison

(May 20, 2021) Along with discussing possible financial outcomes for the year just passed,  Ocean Pines General Manager John Viola updated the Ocean Pines Association Board of Directors Saturday on projects and amenity openings.

Providing closing projections for the association’s fiscal FY 20/21 operating budget, which ended on April 30, can’t be done with any precision, Viola said, until the association receives word whether the $1.1 million Paycheck Protection Program loan received last year would be forgiven by the Small Business Administration.

“This would be a big effect on our operating profit and balance sheet if it’s not forgiven,” he said.

Noting 100 percent of the funds received were used for Ocean Pines payroll and salaries, Viola said the association in March sent paperwork seeking loan forgiveness through the Bank of Ocean City. The SBA response is anticipated within 90 days.

“It would likely be determined prior to issuance of year-end audited financials,” he said.

If the PPP loan is not forgiven, the OPA would have to repay the sum at an interest rate of 1 percent.

“That would have a $1.1 million effect on our operating profit for this year.”

Viola said the Matt Ortt Company was recently forgiven roughly $270,000 in PPP loans.

“That will be reflected in the food and beverage numbers,” he said.

On a similar note, Viola said of the $105,000 the association received in Affordable CARES Act relief funding, about $70,000 has been forgiven to this point.

If the PPP loan is forgiven, Viola said the past year could close with roughly $1.1 million in budget favorability.

If it needs to be repaid, however, the OPA operating budget for FY20/21 would come in $369,000 under budget projections.

The most significant losses suffered due to the covid-19 pandemic last year were in aquatics at nearly $200,000 and beach parking at $180,000.

“Food and beverage operations came in flat, but would have posted losses if not for a federal grant,” he said

Viola said operational losses were offset by departmental cost-cutting measures, most notably in Recreation and Parks.

Turning to infrastructure issues, Viola said Louisiana-based contractor Pelican Underground wrapped up repairs earlier this month on 10 sections of failing corrugated metal piping employing a trenchless rehabilitation method.

Viola said the cured-in-place pipe (CIPP) process involves inserting linings containing an inflatable epoxy-saturated felt tube that cures within a day.

Once the resin cures, it forms a tight, joint-less seal, which has proven both more cost-effective and less disruptive than total pipe replacement.

In February, the board of directors approved roughly $207,000 for the pipeline project to address a list of sections crossing under Ocean Parkway.

“We did a lot of research on them and what we’ve seen is very positive,” he said.

Although final costs came in a bit higher at $212,000, Viola said the work is anticipated to last for an extended period and was completed at half the cost of traditional approaches.

“The pipes are flowing and the water is flowing,” he said. ‘We’re going to get this company back next year, hopefully.”

In other drainage-related news, Viola said the Bainbridge Pond improvement project is continuing to make progress.

“It is on track and it is on budget. “

In addition a Department of Natural Resources grant of more than $480,000, the association chipped in $235,000 for the effort to reduce flooding and improve water quality.

Viola said work should be completed by the end of June and should improve the natural filtration of stormwater heading out to the Isle of Wight Bay.

Switching to a different water source, Viola reported that the association will reopen outdoor pool facilities on Saturday, May 29.

Viola said the only remaining restriction at this point is a mask mandate for bathrooms, which could change by later this month.

“Pool hours will return to pre-covid hours,” he said.

Resuming for 2021 is Family Fun Night at the Yacht Club Pool at 6 p.m. on Wednesdays.

“This is a return to pre-covid life,” he said. “It’s good to see.”