GM John Viola says positive variances anticipated to be retained through April

By Greg Ellison

(March 24, 2022) Ocean Pines General Manager John Viola updated the Budget and Finance Committee on Monday on year-to-date revenues and spending and gave a progress report on capital projects.

Viola reported the month of February is anticipated to close with a $635,000 operating loss, which is less than the budget forecast of $662,000.

“We’re probably about $20,000 favorable to budget for February,” he said.

Viola said the association’s current positive operating variance of roughly $1.4 million is not expected to change much over the final two months of the fiscal year.

“The February projection is not a major change,” he said.

To this point, Viola said the financial performance of the amenities have accounted for about half the budget overage, with the inclusion of marinas and beach parking pushing the total to roughly $800,000.

Outside of assorted cost-cutting measures, Viola credited “organic growth” from amenities for the financial windfall.

“When I say organic revenue growth, I’m not talking about price increases, I’m talking about revenue that wasn’t there before,” he said.

Turning to capital projects, board liaison Larry Perrone asked what might be done to update the golf course irrigation system in the wake of Worcester County deciding not to fund the wastewater spray irrigation project.

“Since the county decided they weren’t going to do the irrigation system, we were going to look at doing it in phases,” he said.

Photo by Greg Ellison
Future moves to address aging irrigation infrastructure at the Ocean Pines Golf Course were discussed this week by the Budget and Finance Committee in light of Worcester County opting against funding a proposed project at the site.

Viola said following the recent change of course at the county level, association officials examined how to address the situation.

“We talked about a contingency plan if something did break [and] what to do if the system went down,” he said.

Viola said irrigation pump stations are the greatest concern.

“I’m told now it won’t take that long for the type of parts we would need,” he said.

Ideally, replacing pump stations could be included in subsequent budget cycles, Viola said.

In some instances, underground irrigation lines dates back several decades.

“Some of those pipes, the fittings … if we increase the pressure  … that’s where had past problems,” he said. “We don’t put that kind of pressure on it anymore.”

Perrone suggested the board could vote to approve the overall project, which would be completed in phases.

“If we get a proposal, the board can vote … on replacing the system in phases,” he said. “We can approve that and then the spending would be approved as it’s done over years.”

Committee Chair Dick Keiling asked if the county had offered any explanation for backing out of the project.

While Viola acknowledged not receiving any reasoning, Perrone offered one possibility

“If I had to guess, it probably had to do with the $10 or $11 million bond they’re asking for the sports complex,” he said.

On other fronts, Viola said efforts are still underway to install new pickleball courts at the Racquet Sports Center.

“We have had challenges,” he said.

After sending out a handful of requests for proposals, problems surfaced about needing to have site work completed prior to construction.

“We did get back two [bids] and they just wanted to do the courts, not the site work,” he said.

Recognizing the need to divide duties, association officials subsequently contacted several firms to bid on site work details.

Viola said an alternative plan to separate site work and construction is expected to be presented at the board meeting on Wednesday.

“We want to get installed this season,” he said.

Also on tap for the board meeting on Wednesday is an approval to spend about $40,000 to replace lighting at the North Gate Bridge.

Viola said the upgrades include four main lights at the bridge entrance, as well as side illumination.

“Taking the guard shack down and cleaning it up — I think it looks better,” he said.

Several upgrades to dock facilities are also on the horizon, including public works replacing ramps at Mumford’s Landing and contractors building T-docks.

Viola said the T-docks are being built in Florida and remain on track for installation by Memorial Day.

“We lined up with Fisher Marine to put them in,” he said.