(March 9, 2017) The Ocean Pines Association paid former golf management company Landscapes Unlimited an undisclosed amount in a settlement last month that ended the company’s contract with the community and allowed the association to assume management of the course as of March 1.
OPA Board Vice President Dave Stevens declined to give a specific dollar figure related to the settlement, but suggested it was far less than the roughly $80,000 Ocean Pines would have paid in an annual management fee.
“Without finding cause [for termination], we would have continued and been liable, basically, for the third year of the contract,” Stevens said. “A settlement was reached wherein we would not be liable for the entire contract amount.”
The original contract, signed in May 2015, had Ocean Pines paying a base management fee of $6,500 per month with an annual 3 percent increase. There was reportedly an opt-out clause if fiscal year 2017 budgetary projections were off by more than $50,000.
The most recent budget projections showed Landscapes was about $100,000 off, although Stevens said there was some concern Landscapes still could have reached its target by the end of the fiscal year, May 1, by reducing costs.
“We don’t know that they would have, but I think the bottom line was to look at an amicable settlement where both parties come out better off,” Stevens said.
It was believed the association would retain both Golf Director John Malinowski and Golf Course Superintendent Rusty McLendon, both of whom preceded Landscapes.
However, McLendon was apparently made an offer to stay on, but did not immediately accept it. He was replaced by Andre Jordan, who had been with Ocean Pines public works and previously worked at the golf course.
“An offer was made [to McLendon]. It wasn’t accepted. [Interim General Manager] Brett [Hill] moved quickly forward to make sure the transition was happening with Andre, who was given the offer and did accept immediately. That’s where we are, going forward,” Stevens said.
According to Stevens, Malinowski did accept an offer to stay.
Another recent departure, Facilities Manager Jerry Aveta, has yet to be replaced. Aveta, who had an office inside the Ocean Pines Golf and Country Club building, was reportedly laid off last month.
The association had been in the process of hiring an assistant to Aveta and one of those candidates could be made an offer for the facilities manager job, Stevens said.
Stevens said he did not expect any other personnel changes related to golf, but added, “I can’t say what’s going to happen six months from now.”
Fiscal year 2018 budget projections for golf, a roughly $90,000 loss, will remain in place, according to Stevens. The budget passed last month also includes a new, lower rate structure for golf membership.
“I think we’re going to stick with what’s there and do our best,” Stevens said. “The feedback I’m getting is that golfers are pleased. They seem to think what we’ve done makes sense. I haven’t heard any negative feedback.”
OPA Board Vice President Dave Stevens declined to give a specific dollar figure related to the settlement, but suggested it was far less than the roughly $80,000 Ocean Pines would have paid in an annual management fee.
“Without finding cause [for termination], we would have continued and been liable, basically, for the third year of the contract,” Stevens said. “A settlement was reached wherein we would not be liable for the entire contract amount.”
The original contract, signed in May 2015, had Ocean Pines paying a base management fee of $6,500 per month with an annual 3 percent increase. There was reportedly an opt-out clause if fiscal year 2017 budgetary projections were off by more than $50,000.
The most recent budget projections showed Landscapes was about $100,000 off, although Stevens said there was some concern Landscapes still could have reached its target by the end of the fiscal year, May 1, by reducing costs.
“We don’t know that they would have, but I think the bottom line was to look at an amicable settlement where both parties come out better off,” Stevens said.
It was believed the association would retain both Golf Director John Malinowski and Golf Course Superintendent Rusty McLendon, both of whom preceded Landscapes.
However, McLendon was apparently made an offer to stay on, but did not immediately accept it. He was replaced by Andre Jordan, who had been with Ocean Pines public works and previously worked at the golf course.
“An offer was made [to McLendon]. It wasn’t accepted. [Interim General Manager] Brett [Hill] moved quickly forward to make sure the transition was happening with Andre, who was given the offer and did accept immediately. That’s where we are, going forward,” Stevens said.
According to Stevens, Malinowski did accept an offer to stay.
Another recent departure, Facilities Manager Jerry Aveta, has yet to be replaced. Aveta, who had an office inside the Ocean Pines Golf and Country Club building, was reportedly laid off last month.
The association had been in the process of hiring an assistant to Aveta and one of those candidates could be made an offer for the facilities manager job, Stevens said.
Stevens said he did not expect any other personnel changes related to golf, but added, “I can’t say what’s going to happen six months from now.”
Fiscal year 2018 budget projections for golf, a roughly $90,000 loss, will remain in place, according to Stevens. The budget passed last month also includes a new, lower rate structure for golf membership.
“I think we’re going to stick with what’s there and do our best,” Stevens said. “The feedback I’m getting is that golfers are pleased. They seem to think what we’ve done makes sense. I haven’t heard any negative feedback.”