By Josh Davis, Associate Editor
(April 5, 2018) The Ocean Pines Association Board of Directors last Thursday unanimously approved a contract with the Matt Ortt Companies to run food and beverage operations at the yacht club and beach club.
The board discussed a motion to approve the contract during an open session and then adjourned to a closed session for about an hour to talk about terms related to a bonus fee structure.
Association President Doug Parks introduced a motion to approve the contract, but Director Ted Moroney said there was one more item to discuss, apparently related to a bonus structure, before a contract could be approved.
Parks said it was important “the company that’s going to manage us has skin in the game.”
“They have to prove to us that they can run that environment in a way that will not continue these financial losses,” he said, referring to current fiscal-year deficits of more than $500,000. “There’s a scale of how things will get calculated and if they reach certain goals there’s a bonus structure associated with that … the last item was how you calculate that.
“I’m confident that we’ll reach an agreement,” Parks added.
The directors briefly reconvened in open session to vote on the contract.
“We went back through [the contract] via our attorney in closed session, provided information to the Matt Ortt Companies, and we came to an agreement on the final terms and conditions that were acceptable to both parties,” Parks said.
He added further discussion on the contract was “probably worthwhile for the town hall meeting,” scheduled for March 19 at 7 p.m. in the Assateague Room of the community center on 235 Ocean Parkway.
According to an association press release on Friday, “Matt Ortt Companies, which brings more than 25 years of experience to the association, has been granted a two-year contract.
“The contract objectives were to create an arrangement that empowers and economically incentivizes Matt Ortt Companies to perform well, institute financial and reporting controls, shift liability to Matt Ortt Companies and create a mechanism to address poor financial performance.
“According to the agreement, Matt Ortt Companies shall manage, control and operate the yacht and beach clubs, including all food and beverage operations, janitorial services, banquet functions (weddings, anniversaries, etc.) and special functions, and any other food and beverage function assigned by the Association, subject to the Association’s right to establish reasonable regulations with regard to the use of the facilities.
“Co-founder[s] … and Managing Partners Matthew Ortt and Ralph DeAngelus will be responsible for all day-to-day management and required to provide Ocean Pines Association with a detailed monthly report that includes real-time access to the operating expenses. Expenditures over certain dollar thresholds, depending on the expense, will require the Association’s approval.
“In addition, the management company shall conduct ongoing surveys to determine customer satisfaction and provide the results of said surveys to the Association once per month.
“The contract shall be terminated for poor economic performance without penalty.”
The release went on to say the board heard from two management firms and selected Matt Ortt Companies “based on its experience, business plan, staffing capabilities, and the fact that the terms of their proposal complied with the bylaws.”
Matt Ortt Companies have operated national chains including TGI Fridays and Hooters. Current clients include Rare & Rye in Ocean City.
According to the release, the yacht club will be open seven days a week, through Sept. 30, and operate “with a reduced schedule of a minimum of three days a week from October 1 through April 30.”
The beach club will be open seven days a week, Memorial Day weekend through Labor Day Monday.