MEMBERSHIP – Through June 30, we have collected $845,432 in membership fees. Beach parking, swim and golf remain behind budget. Tennis and platform tennis show increases in member purchases. Although golf memberships are below budget expectations, we are seeing increases in outside play that offset lower membership sales.
JULY 4TH ACTIVITY - As you are aware the Holiday weekend was hot and rain free.
The Worcester County Department of Water and Wastewater estimates the population of Ocean Pines during the holiday to be 17,720 (roughly 700 people more than last year). Sales activity at our amenities showed strong results with the Yacht Club exceeding last years holiday sales for the 5 day period (Friday 7/2 through Tuesday 7/6) by more than $7000. Golf sales exceeded last year by more than 1,300, Beach Club by $7,200.
COMMUNITY CENTER STORAGE SHED – We recently received a request by a neighboring property to consider removing a POD container located behind the Community Center. As the Board is aware, a temporary storage container was placed behind the Community Center during construction of the building last year. It remained on the property housing Parks and Recreation supplies and records. The container has been emptied and was removed from the property on July 8th.
WATER & WASTEWATER UTILITY EASEMENT – I’m pleased to report that we have finalized the utility easement agreement with Worcester County Water and Wastewater to utilize the North Gate entrance area for installation of utility lines. This will enable the County to bring Showell Elementary School on-line with waste water treatment. Special thanks to my contract review task force – Ted Moroney, Tom Terry and Jeff Knepper for their extensive review of the documents.
10 YEAR PLAN TASK FORCE RECOMMENDATION – The 10 Year Plan Task Force has recommended the postponing of a referendum initiative to seek approval to replace the existing Yacht Club. The recommendation is intended to allow time for further study. Critical decision points include: programming needs dictating the size and layout of a new building and the long range plans for the Country Club. It’s important to consider the Yacht Club and the Country Club together to avoid space duplication and insure that the facilities compliment one another rather than compete against each other. Although grill dining service is an expectation at all golf facilities catering facilities that compete with other OPA venues may not be in the community’s best interest. The additional study time is expected to resolve such conflicts and present a cohesive, thoughtful approach to planning for facility improvements within OPA.
YACHT CLUB OPERATION IMPACTS – The delay of the Yacht Club referendum will cause a 2 part operational problem as we complete the 2010-2011 fiscal year and begin planning for the 2011-2012 fiscal year. Our original plan for this year scheduled an operational move to the Country Club after Labor Day and a complete shut-down of food and beverage operations after January 1, 2011. We reduced anticipated revenues this year and lost bookings for several weddings and large group activities. We will need to re-evaluate the plan which is expected to include a continued operation at the Yacht Club throughout the fall and Holiday season. When the Board meets in September, the food and beverage team will present an operating plan recommendation for the January – April period.
The second part of the problem is the scheduling of catered events for the fall/spring 2011-2012 season. The delay of the Yacht Club building project will inevitably mean that catered events will not be booked again next fall, impacting sales for a second consecutive year. It’s important to acknowledge that these revenue shortfalls are tied to planning and not to a lack of effort on the part of the food and beverage team.
GOLF DRIVING RANGE STORAGE FACILITY - As you are aware, we re-bid the golf driving range storage facility after our last meeting to comply with revised bidding procedures and the policy to secure at least 3 bids for the project. After re-bidding, Beach Construction of Ocean Pines presented the low bid at a total cost of $15,700. After polling the Board by telephone, I’ve notified the company and we’ve begun securing permits for construction. To memorialize the decision, I am asking that the Board consider a motion to rescind the motion passed during our June 16, 2010 meeting and approve the award of the project to Beach Construction.
We will be under budget on the project. The 2010-2011 budgeted amount is $46,000 with total anticipated expenses of $35,428. The budget variance for the project is estimated to be a positive (under budget) of $10,572.
In a related matter, the Golf Driving Range is expected to re-open in August. A Grand re-opening celebration for the Driving Range will be scheduled in September.
OPA VS YMCA – No trial date has been set.
IRS VS OPA - No trial date has been set.
FURLOW VS OPA – No trial date has been set.
Bridge Assessment – As reported last month, we received copies of the engineering reports secured by Worcester County assessing the condition of the Ocean Parkway and Yacht Club Drive bridges. Existing conditions indicate that replacement of the structures will be delayed for several years. In the meantime interim repairs have been identified. The needed repairs are categorized into 2 sections: