GENERAL MANAGER’S REPORT to OPA Board
September 16, 2009
Sales through the end of August show several shortages in membership activity. Beach parking passes fell $4,930 behind plan, Aquatic memberships ended August $47,000 behind budget and golf memberships are $32,000 below budget estimates. In addition, swim coupons were below plan by $19,000.
As mentioned in my previous report, population estimates through the July 4th Holiday showed lower traffic levels throughout the Pines. We expect that the reduction in the population has affected the volume of membership sales as well as swim coupon sales. A challenging economic environment coupled with a slow real estate sales market are impacting return memberships as well as the opportunity to attract new members from recent real estate transfers. During our quarterly financial report, I’ll detail some of the many expense reductions undertaken during the last few months to offset the short fall in revenues.
COMMUNITY CENTER UPDATE
We celebrated the Grand Opening of our new facility on September 12, 2009. My sincere thanks goes out to the Board of Directors, and our membership for their support of this project. I especially want to thank our Community Center Task Force Team who were diligent in shepherding the project during the last 10 months. Task Force team member, Ted Moroney will be present at October’s meeting to present a final report to the Board detailing total costs of the project, and the timeline which completed the building two months ahead of schedule.
The drainage project approved by the Board in June is well underway and should be completed in October. We’ve had many compliments this year on course conditions and the continuation of this program will help to position our course as one of the top golf courses in the years to come.
The Golf Task Force appointed by the Board will be presenting a recommendation today to increase sales of both memberships and outside play activity. Our goal is to become more competitive in this economically challenging environment.
WOOD DUCK II DRAINAGE
The pre-bid conference was scheduled for September 14, 2009. Bids will be received and opened on September 24th. We would like to have the bids reviewed with a recommendation for contractor selection as soon as possible after September 24th, in order that work could be scheduled before colder weather arrives. I’ll be updating the Board on the bid results as soon as they are analyzed.
ROAD FUND CUTS
We are awaiting official notice from Worcester County that the State has again cut road funds that would benefit Ocean Pines. Traditionally we would receive approximately $494,000 to be applied to road and drainage projects. We were notified earlier in the year that our allocation was being reduced to slightly more that $100,000. With this further reduction, our allocation is expected to be reduced to less than $20,000. The management team is in the process of revising our 10 year road paving plan to absorb lost funding. We will be reviewing options that will include extending the program to schedule roadways for repaving on a 12 or 15 year schedule to reduce our annual costs. In turn we expect to see more degradation of roadways before improvements are completed. We will be reviewing the funding adjustment plan with the Budget & Finance Committee after it has been finalized.
OPA VS SPN
The case has been continued with a new trial date set for October 28, 2009.
OPA VS YMCA
Trial date has been scheduled for November 25, 2009.
Briefs have been filed by the Association and the IRS, no trial date has been set.
We are exploring funding options available through the County, with a goal of replacement within the next two years. In the meantime, recommendations by the bridge engineers indicate that some routine maintenance on the bridges will help to extend their utility until replacement is completed. We are reviewing the maintenance recommendations now to begin making the recommended repairs.
SWIM AND RACQUET POOL DECK
As a follow up to our recent discussions, demolition of the pool deck was scheduled for the week of September 14th. You will recall that our structural inspection showed piling deterioration similar to that found at the Yacht Club. Demolition will be completed in-house and after completion, qualified contractors will be asked to inspect the property prior to submitting their bid proposals. At the same time, work will be scheduled to upgrade plumbing, electric and pool resurfacing. Our goal is to complete all work before Memorial Day weekend 2010 on the pool and pool deck to extend pool life for long term service. The facility will have to be revisited sometime in the future to complete rehabilitation work of the bath house.
BEACH CLUB BIDS
Bid proposals for the Beach Club bath house and parking lot engineering are expected by September 21, 2009. Once received, the proposals will be reviewed and analyzed by the 10- Year Planning Task Force. A recommendation will be made to the Board to either go forward with the projects or schedule them for a future date. In either case, we need to be sensitive to timing the project to avoid conflicts with the operating season that runs from Memorial Day to Labor Day.
You may recall from our Annual meeting presentation that we are partnering with Worcester County in an attempt to assist the residents of the Pinehurst section with drainage problems that occur during heavy rains. The choke points that appear to be the source of the water backup are beyond the borders of Ocean Pines. We will be meeting with County officials on September 24th to review preliminary design drawings. Work to execute an approved project would be completed by the County with the assistance of our OPA public works team.
SPORTS CORE CONCRETE WORK
You may recall that the Association intended to improve the concrete finish around the interior perimeter of the indoor pool. The work started the week of September 14th together with replacement of exterior sidewalks. As the construction activity will restrict traffic to the pool, we will take this opportunity to close the pool completely, drain, clean and re-balance the chemicals to prepare the facility for fall and winter operations. The pool is now re-opened.