(Feb. 16, 2017) By unanimous consent, the Ocean Pines Association approved sweeping changes to the golf membership fee structure during a budget meeting on Friday.
Board Vice President Dave Stevens said he met with President Tom Herrick and homeowner Bob Kessler the day before, and the trio banged out a three-page plan for golf that included all-new membership rates.
The board voted 6-0 to adopt that plan after only a few changes. One director, Slobodan Trendic, was not present during the meeting.
Effective May 1, the new annual cost for an individual will be $1,200. An annual individual membership that allows play only after noon is $800.
By contrast, the individual membership rate was $1,315 and the afternoon rate was $875.
Annual family rates will be $2,000 per year, or $1,200 after noon. Adding a cart package would increase the family rate by $1,600 and the individual rate by $1,100.
All memberships come with preferred tee times, discounts at the Ocean Pines Golf pro shop and, a new feature, free play on the golf range.
The junior membership rate, 16 and under, was set as $225. Golfers 16 and under can play for free with a paying member, after 3 p.m.
A limited membership package was also approved that would allow 30 18-hole rounds or 60 nine-hole rounds for $1,200 – good for the entire family.
All membership packages are restricted to homeowners and year-round renters.
A single-day rate for homeowners was set at $25 during the summer and $15 during the offseason, which includes a cart rental.
For the first time, Ocean Pines will also sell an all-amenity membership: good for golf, the pool and racquet sports, for $2,500.
In order to make up for the across-the-board decrease in fees, Herrick said golf would have to add about 22 new memberships and 1,200 rounds of individual play. That’s assuming current budget projections for fiscal year 2018 are accurate, which show a $90,000 loss.
Herrick said he believed that was a reasonable goal.
“I, personally, think we need to make an impact,” Herrick said. “We’ve got to show the association members we mean business. We want [homeowners] to come play our golf course.”
“If that’s not a reasonable target, then we might as well pack up and go home,” Stevens said. “The general objective of this is to make memberships more attractive … all of these things, put together, are worth trying.”
The board agreed to leave the budget projections in place and reevaluate the rates during the budget process next year for fiscal 2019.
Interim General Manager Brett Hill worried the sudden change – coming at the end of budget talks for fiscal 2018 – would absolve golf management company Landscapes Unlimited from any culpability.
“At the end of the day, if we make changes to LU’s proposal then all accountability to their budget goes out the window,” he said. “They are accountable for their budget, by their contract, for their fee structure. And they’ve advised a fee structure to us and if we change it, by their contract, then they wipe their hands of their responsibility to make any money there.”
Golf has traditionally not been a moneymaker in Ocean Pines. Last year homeowners subsidized the amenity by $16 each, according to the fiscal 2017 budget. Projections have homeowners paying $11 in assessment dollars in the proposed 2018 budget.
At the end of the meeting, the directors adjourned to a closed session to discuss Ocean Pines’ contract with Landscapes Unlimited, which expires this year.
The company took over, replacing Billy Casper Golf, in May 2015.
Board Vice President Dave Stevens said he met with President Tom Herrick and homeowner Bob Kessler the day before, and the trio banged out a three-page plan for golf that included all-new membership rates.
The board voted 6-0 to adopt that plan after only a few changes. One director, Slobodan Trendic, was not present during the meeting.
Effective May 1, the new annual cost for an individual will be $1,200. An annual individual membership that allows play only after noon is $800.
By contrast, the individual membership rate was $1,315 and the afternoon rate was $875.
Annual family rates will be $2,000 per year, or $1,200 after noon. Adding a cart package would increase the family rate by $1,600 and the individual rate by $1,100.
All memberships come with preferred tee times, discounts at the Ocean Pines Golf pro shop and, a new feature, free play on the golf range.
The junior membership rate, 16 and under, was set as $225. Golfers 16 and under can play for free with a paying member, after 3 p.m.
A limited membership package was also approved that would allow 30 18-hole rounds or 60 nine-hole rounds for $1,200 – good for the entire family.
All membership packages are restricted to homeowners and year-round renters.
A single-day rate for homeowners was set at $25 during the summer and $15 during the offseason, which includes a cart rental.
For the first time, Ocean Pines will also sell an all-amenity membership: good for golf, the pool and racquet sports, for $2,500.
In order to make up for the across-the-board decrease in fees, Herrick said golf would have to add about 22 new memberships and 1,200 rounds of individual play. That’s assuming current budget projections for fiscal year 2018 are accurate, which show a $90,000 loss.
Herrick said he believed that was a reasonable goal.
“I, personally, think we need to make an impact,” Herrick said. “We’ve got to show the association members we mean business. We want [homeowners] to come play our golf course.”
“If that’s not a reasonable target, then we might as well pack up and go home,” Stevens said. “The general objective of this is to make memberships more attractive … all of these things, put together, are worth trying.”
The board agreed to leave the budget projections in place and reevaluate the rates during the budget process next year for fiscal 2019.
Interim General Manager Brett Hill worried the sudden change – coming at the end of budget talks for fiscal 2018 – would absolve golf management company Landscapes Unlimited from any culpability.
“At the end of the day, if we make changes to LU’s proposal then all accountability to their budget goes out the window,” he said. “They are accountable for their budget, by their contract, for their fee structure. And they’ve advised a fee structure to us and if we change it, by their contract, then they wipe their hands of their responsibility to make any money there.”
Golf has traditionally not been a moneymaker in Ocean Pines. Last year homeowners subsidized the amenity by $16 each, according to the fiscal 2017 budget. Projections have homeowners paying $11 in assessment dollars in the proposed 2018 budget.
At the end of the meeting, the directors adjourned to a closed session to discuss Ocean Pines’ contract with Landscapes Unlimited, which expires this year.
The company took over, replacing Billy Casper Golf, in May 2015.