(Feb. 25, 2016) The Ocean Pines Association Board of Directors discussed the following items during a public meeting in the administration building on Friday:
Park sculpture
Resident Jack Levering gave the directors a bird sculpture he helped construct, which he said could replace one that once sat on top a gazebo in Pintail Park. In exchange, he asked for $100 payment.
The board asked General Manager Bob Thompson to look into the matter and present a recommendation during the next public meeting, on Feb. 25.
Budget: Food truck
Directors Tom Terry and Dave Stevens each brought a list of items for review from the fiscal year 2017 budget draft.
By a 4-3 vote, the directors agreed to keep the proposed food truck in the budget. Terry said the financial impact of removing the item was $1 increase in assessments, because of revenue projections.
He said he thought the board wanted to remove the item because public rancor, adding that many critics represented the idea as “a hotdog truck for the yacht club.”
“I think [that] was a very unfair presentation of what this thing is,” he said. To pay for purchase of the truck, designed to feed guests at events in Ocean Pines, the board earmarked $55,000 from its general fund.
Budget: IT upgrades
A new computer and phone system for the administration building, costing $250,000, will also stay in the budget. Thompson said that number, which he said represents a starting point for a communitywide IT upgrade, will likely go up, although that would require board approval.
Money for the project will be taken from historical reserves.
Budget: Yacht club additions
Two items related to the yacht club will remain in the budget. Unanimously, the board agreed to keep $4,770 for glass tabletops by setting aside that amount from the general fund. Controller Art Carmine said the glass would go on top the existing tablecloths, and could help bring down linen costs.
Outdoor café furniture, using $5,467 from historical reserves, will also stay in the draft. Thompson said the furniture would be set up early in the morning, between 5:30-6 a.m., and would allow boaters to buy café-style breakfast and lunch items. The final vote was 3-2, with two directors abstaining.
Budget: Work trucks
Director Tom Herrick asked to discuss several public works vehicles in the budget, including a Chevy Tahoe, a dump truck, a tractor and a skid steer. Those items, totaling $297,000, would be paid for through the general fund.
Herrick said the Tahoe was too extravagant and asked if any of the vehicles, all replacement items, could be put off for a year or two. Thompson explained that a sample Tahoe, shown in the budget with leather seats and an expensive navigation system, was merely an example.
“We’ve never bought anything with leather seats,” he said. “It’s just not practical for us, but it was the only one [that] one of the local dealers had on the lot when we tried to get pricing.”
He said because the vehicles were all replacements, they would have no impact on assessments. The board voted unanimously to keep all four items in.
Budget: Golf carts
The board nixed a $297,000 request for new golf carts by golf management company Landscapes Unlimited. Instead, the board will spend $50,000 to refurbish its existing fleet of carts, using money in the historical reserves.
Several directors were concerned that Landscapes was not performing proper maintenance on the fleet, which includes 65 owned carts and another 75 that are leased.
“Until somebody shows me they can care of what we already have, I don’t want to spend any dollars for brand new carts,” Terry said.
The final vote was 6-1, with Stevens opposed.
Budget: Fairway mowers
The board voted 5-1 to buy three new mowers to trim fairway grass on the golf course. Herrick voted against the motion and Stevens abstained.
The mowers were not originally in the budget, and several directors suggested Landscapes did not request them because the company prioritized replacing the cart fleet. Requests for the mowers had been in two prior budgets.
“We’re being told that they’re breaking down quite a bit,” Terry said. “We have the supposition that LU … would not want to ask for a half million dollars worth of capital the first year they’re here. It makes sense.”
Director Bill Cordwell said the three current mowers all broke down last year, and axles on each had to be welded back together “just to get them through the season.”
Replacing a single mower would result in “differences of pitch” in the fairway, Cordwell said. Money for the mowers will come from historical reserves. A specific amount was not given during the meeting.
Budget: Tennis courts
Improvements to the swim and racquet club tennis courts will stay in the budget. The $140,000 improvements, which include resurfacing, will come from historical reserves.
The board voted 6-0 for the budget request, with Director Cheryl Jacobs abstaining.
Budget: Facility studies
A $75,000 study will explore three options for a better police building: expanding the current one, building a standalone structure, or putting a combined fire and police building on association-owned land on Route 589.
Cordwell proposed the board budget $3 million for a new country club, but the directors opted to conduct a $50,000 feasibility study first to determine whether to replace or repair the existing building. An additional $30,000 was set aside for cosmetic repairs.
Thompson warned that waiting to build a new structure could cost the association several hundred thousand dollars, including more than $100,000 for a new HVAC system, which is needed immediately.
“We’re going to start upping [estimates for immediate repairs] to $300,000 pretty quick,” Thompson said. “That’s just getting it operational, so you’re not sitting in jackets during a meeting.”
The board voted 5-2 for the study, with Terry and Cordwell voting against.
Budget: Reserve changes
The directors discussed addressing a deficit of more than $700,000 in its operations recovery fund that is largely a carryover dating back several years – and possibly decades.
Because Ocean Pines is a nonprofit, Terry said that number did not need to be “zero,” although he admitted he was not sure what an appropriate deficit would be. A consensus was reached that the board would study the issue, specifically what the average operating recovery deficit was at the end of each year, and address it during the next fiscal year, 2018.
Park sculpture
Resident Jack Levering gave the directors a bird sculpture he helped construct, which he said could replace one that once sat on top a gazebo in Pintail Park. In exchange, he asked for $100 payment.
The board asked General Manager Bob Thompson to look into the matter and present a recommendation during the next public meeting, on Feb. 25.
Budget: Food truck
Directors Tom Terry and Dave Stevens each brought a list of items for review from the fiscal year 2017 budget draft.
By a 4-3 vote, the directors agreed to keep the proposed food truck in the budget. Terry said the financial impact of removing the item was $1 increase in assessments, because of revenue projections.
He said he thought the board wanted to remove the item because public rancor, adding that many critics represented the idea as “a hotdog truck for the yacht club.”
“I think [that] was a very unfair presentation of what this thing is,” he said. To pay for purchase of the truck, designed to feed guests at events in Ocean Pines, the board earmarked $55,000 from its general fund.
Budget: IT upgrades
A new computer and phone system for the administration building, costing $250,000, will also stay in the budget. Thompson said that number, which he said represents a starting point for a communitywide IT upgrade, will likely go up, although that would require board approval.
Money for the project will be taken from historical reserves.
Budget: Yacht club additions
Two items related to the yacht club will remain in the budget. Unanimously, the board agreed to keep $4,770 for glass tabletops by setting aside that amount from the general fund. Controller Art Carmine said the glass would go on top the existing tablecloths, and could help bring down linen costs.
Outdoor café furniture, using $5,467 from historical reserves, will also stay in the draft. Thompson said the furniture would be set up early in the morning, between 5:30-6 a.m., and would allow boaters to buy café-style breakfast and lunch items. The final vote was 3-2, with two directors abstaining.
Budget: Work trucks
Director Tom Herrick asked to discuss several public works vehicles in the budget, including a Chevy Tahoe, a dump truck, a tractor and a skid steer. Those items, totaling $297,000, would be paid for through the general fund.
Herrick said the Tahoe was too extravagant and asked if any of the vehicles, all replacement items, could be put off for a year or two. Thompson explained that a sample Tahoe, shown in the budget with leather seats and an expensive navigation system, was merely an example.
“We’ve never bought anything with leather seats,” he said. “It’s just not practical for us, but it was the only one [that] one of the local dealers had on the lot when we tried to get pricing.”
He said because the vehicles were all replacements, they would have no impact on assessments. The board voted unanimously to keep all four items in.
Budget: Golf carts
The board nixed a $297,000 request for new golf carts by golf management company Landscapes Unlimited. Instead, the board will spend $50,000 to refurbish its existing fleet of carts, using money in the historical reserves.
Several directors were concerned that Landscapes was not performing proper maintenance on the fleet, which includes 65 owned carts and another 75 that are leased.
“Until somebody shows me they can care of what we already have, I don’t want to spend any dollars for brand new carts,” Terry said.
The final vote was 6-1, with Stevens opposed.
Budget: Fairway mowers
The board voted 5-1 to buy three new mowers to trim fairway grass on the golf course. Herrick voted against the motion and Stevens abstained.
The mowers were not originally in the budget, and several directors suggested Landscapes did not request them because the company prioritized replacing the cart fleet. Requests for the mowers had been in two prior budgets.
“We’re being told that they’re breaking down quite a bit,” Terry said. “We have the supposition that LU … would not want to ask for a half million dollars worth of capital the first year they’re here. It makes sense.”
Director Bill Cordwell said the three current mowers all broke down last year, and axles on each had to be welded back together “just to get them through the season.”
Replacing a single mower would result in “differences of pitch” in the fairway, Cordwell said. Money for the mowers will come from historical reserves. A specific amount was not given during the meeting.
Budget: Tennis courts
Improvements to the swim and racquet club tennis courts will stay in the budget. The $140,000 improvements, which include resurfacing, will come from historical reserves.
The board voted 6-0 for the budget request, with Director Cheryl Jacobs abstaining.
Budget: Facility studies
A $75,000 study will explore three options for a better police building: expanding the current one, building a standalone structure, or putting a combined fire and police building on association-owned land on Route 589.
Cordwell proposed the board budget $3 million for a new country club, but the directors opted to conduct a $50,000 feasibility study first to determine whether to replace or repair the existing building. An additional $30,000 was set aside for cosmetic repairs.
Thompson warned that waiting to build a new structure could cost the association several hundred thousand dollars, including more than $100,000 for a new HVAC system, which is needed immediately.
“We’re going to start upping [estimates for immediate repairs] to $300,000 pretty quick,” Thompson said. “That’s just getting it operational, so you’re not sitting in jackets during a meeting.”
The board voted 5-2 for the study, with Terry and Cordwell voting against.
Budget: Reserve changes
The directors discussed addressing a deficit of more than $700,000 in its operations recovery fund that is largely a carryover dating back several years – and possibly decades.
Because Ocean Pines is a nonprofit, Terry said that number did not need to be “zero,” although he admitted he was not sure what an appropriate deficit would be. A consensus was reached that the board would study the issue, specifically what the average operating recovery deficit was at the end of each year, and address it during the next fiscal year, 2018.