OBSC General Membership Meeting
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- Marianna Freeman
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1 August 30, 2014 OBSC General Membership Meeting Roll Call: Trustees Present: Greg Canniff - President Tina Hungrige - Secretary Susan Lambariello - Treasurer Bob Menzel - Beach Al Nugent - Vice President / Membership Mike Serafin - Buildings & Grounds Pete Van Nest - Marina Trustees Absent: None Call to Order: Greg Canniff called the meeting to order at 10:00 a.m. and led the Pledge of Allegiance. Moment of Silence: Mr. Canniff held a Moment of Silence for Ruth Cullen, 206 OBB, who passed away earlier in the year. Approval of Minutes: May 24, 2014 General Membership Meeting: On motion by Joe Lambariello, 48 OBB, and seconded by Ann Rowland, 104 OBB, the minutes were approved as presented. Communications: Mr. Canniff stated that Toms River Twp. will have meeting Friday Morning, Sept. 5 for all the presidents of the beach associations to provide a status report on the roads and the beaches. Membership: o Al Nugent stated $6540 has been collected to date from the McDonough (aka Ocean Beach Sales & Rental) agency and $2000 has been collected from members renting to date. o The Wagner s, 125 OBB, are back as their home is complete (to which a round of applause ensued). o Mrs. Diane Smith was introduced as the new owner to the Welle home, 125 OBB. 1
2 Beach: o Some owners have not picked up their badges and Mr. Nugent stated they would still be available through the end of the season. o Bob Menzel stated that we had a good year and more people than anticipated attended this year. o There has been a rough surf this past week. o Next year we will return to 3 guards on duty from 9:30 a.m. 5:30. p.m. o Tomorrow (Aug. 31) from 2:00 p.m. 3:00 p.m., we will need volunteers to pick up the walkway. o The beach has been cleaned once/week by the township (at no cost to the Club). Marina: o Pete Van Nest stated that we had a bad year and earned $11,400. o He stated that changes have been suggested such as decreasing the non-member slip rental rate from $950 to $800 for the season; let more wave runners rent as long as they go on platforms; allow dry boxes to be stored (at the foot of each slip) and to provide a Port-a-Potty (in a hidden, wooded area), along with increased advertising. o We are not at break even with the reason of high taxes. o At this point, Susan Lambariello stated that we had previously hired an attorney and the taxes were lowered a few times and we will be hiring an attorney to appeal. She also referred to the expense of the lease (as a reason for not breaking even). o Jerry Ciciola, 3124 Ocean Road, stated that an increase (in the budget) of $11,000 equates to approximately 20 slips and what would bring in more slip rentals? He also asked where the real estate taxes were allocated for the Marina on the budget: in Marina or in Real Estate Taxes. Ms. Lambariello stated they were all lumped together in the Real Estate Taxes. She added that if we are aggressive by allowing the Port-a-Potty, dry boxes and more advertising, we can be 2/3 vs. 1/3 occupied. o Ann Rowland, 104 OBB, asked if the taxes were combined (for the other common areas such as parking lots & beach) to which Ms. Lambariello explained that our taxes are for the Marina only. o Bob Menzel stated let s go to the County, OB1 pays $0. Ms. Lambariello replied that we lost the first time but we are changing attorneys. Mr. Menzel stated that between the lease and the taxes, it s almost impossible to make money (on the Marina). Buildings & Grounds: o Mike Serafin reminded everyone that there is parking only allowed on the North side of OBB and this is for commercial vehicles only. No vehicles are allowed on Sundays. He further stated there is no overnight parking allowed of on street dumpsters, vehicles or equipment. o For major renovations and rebuilding, there is a new requirement: the initial height certification must be obtained prior to construction of the walls. 2
3 o Mr. Serafin stated that all current active projects meet the court ordered guidelines. o Since August 2013, we have 19 major projects: two rebuilds are complete and two lifts are complete. o For 2015 there will be no new starts permitted after May 22 (no new starts during the Summer), to September 7 th, and no construction on Saturdays, Sundays or Holidays during this period. o The weeds are an enforceable issue. o When houses are demolished, the hole must be filled for safety reasons as well as township requirements. Treasurer Report: Susan Lambariello discussed the financial highlights and offered the following details: o Net receipts over expenses are presently at $6,225. o We have $32,000 in the bank. o With the remaining payroll and taxes, we will end up at approx. $2,500 over budget. o Membership exceeded expectations with total collections thus far of $8,690 and we are still collecting (for badge fees). o We had expected a better year with the Marina. We were over-priced for what we offered and the condition. We will get more aggressive to at least break even. The break even is $22,000 and we were at 50% of this. o The proposed budget is $575, with assumptions of increased guest badge fees to $90 for 8 badges; higher marina rentals and higher payroll for the beach. Mr. Menzel added that our captain has instituted a mandatory experience level of 4-5 years for the life guards. He added that we need to be more generous with our payroll. o Ms. Lambariello stated that the professional fees are for a contingency and that there were none this year. However, we will have expenses associated with the lease, which expires in We will do as much as we can (to negotiate ourselves). She added that OBII and III have their leases based on $5 and $10/house, while OBSC pays closer to $200/per house. OBSC lease started at $30/house with an increase of the greater of Cost of Living Index or 15% every 5 years. Our objective is to get back to the original levels (similar to OBII and OBIII). o Mr. Menzel asked if he (Mr. McDonough) want s a Marina? o Ms. Lambariello stated the Mr. McDonough was generally receptive to multiple ideas as to how to make our lease more reasonable (by our standards), including the possibility of purchasing the beach, and that once there are more solid options to discuss, we will have a Special Meeting to give the Club all of the options along with the Board recommendation. This meeting will probably be some time in o Dennis Bellars, 31 OBB, stated that the original lease was a take it or leave it situation. o Mr. Canniff explained that Mr. McDonough has a partner in the OBSC, but does not believe that is true in other Clubs. o Ms. Lambariello stated that we will try to renegotiate as much as possible and then hire an attorney to properly document the terms/review the new lease. 3
4 o Kevin Shields, 233 OBB, asked if the Beach and the Marina are interconnected. Ms. Lambariello explained that all of the club properties, bay lot & beach, beach lot & beach, walkway and marina are all bundled in the lease. o Mr. Shields stated there is no incentive for Mr. McDonough to get the taxes down. o Marilyn Klubenspies, 248 OBB, asked since the Marina is not working, why are we keeping it? and why do we have to maintain the bay to which Ms. Lambariello replied that we don t have a choice at this time. We have one more year on the current lease. o Scott Fralley, 260 OBB, Has McDonough lost ground?...we don t want the Marina, Bay & Lots. Ms. Klubenspies stated everyone talked about letting the Bay and Marina go, not so many slips were taken this year, are we opening to all water vessels? o Mr. Van Nest responded that we opened for more wave runners and lowered the price to nonmembers. Members pay only $750. o Ms. Lambariello added that also allow for weekly renters and that we put together a good business model with lower fees along with the addition of items that renters have asked for, like a Port-a-Potty. The plan going forward is aggressive advertising. o Mr. Fralley suggested to put fliers on boats in other marinas before the season is over to advertise to which Mr. Canniff responded that we are already doing that. o Paul DePetrillo, 245 OBB, stated that if the Marina paid for itself before the Storm, we need to give it another chance to which Mr. Menzel replied that we don t want to have the same conversation next year. o Mr. Ciciola stated it was his recollection that the Marina is considered a business and therefore we were being taxed on it. why not abandon it? o Michael Cavanaugh, 236 OBB, summarized that we will have $24 - $25 thousand in the bank; we are locked into the Beach; we think we will bring in $11 thousand more for the marina this probably won t happen. I suspect we won t cover the Marina and if so, will we go below $20 thousand in cash? How does that look historically? Ms. Lambariello replied it would hit our reserve or we could have an assessment of $ Mr. Cavanaugh then said by May 2015 we will know where we stand. o Ms. Lambariello explained that part of the reason guest badge fees were being increased is because other beaches are charging more: Sea Crest increased their fees to $125 (but may lower them to $100) while OBII and OBIII charge $85 for 2-bedroom units. OBSC guest badge fees will increase to $90 for o Catherine Lentini, 237 OBB, asked what are they now, to which Ms. Lambariello responded $80. o Mr. Menzel added that he did a marketing survey five years ago (when he was in charge of Membership) and explained that in Sea Crest, they get flags (vs. badges) per house and an unlimited # of people can go under the flag. o Ms. Lambariello asked if she had a motion to accept the $575 in annual OBSC dues. Ed Coogan, 19 OBB made the motion and Mr. Cavanaugh seconded. All were in favor. o Ms. Lambariello also asked if she had a motion to re-visit the Marina in May to see if a special assessment would be necessary to which Darlene Pereksta, 207 OBB, made a motion to revisit the dues with the caveat of the timing of the Special Meeting. o Mr. Ciciola objected to the special assessment for operating expenses. The motion did not carry. 4
5 o Brian Kramer, 238 OBB, asked what the maximum size of the boats was to which the answer was He asked if we could increase the size of the vessel (which would attract more slip renters). Mr. Menzel responded that we could ask for special approval from Mr. McDonough. o Mr. DePetrillo asked if we were a taxable entity. Ms. Lambariello explained that on the federal level we are taxable, but have a long standing NOL (about $45 thousand) and for NJ we are a non-profit. Old Business: o Mr. Canniff discussed the construction fees of $300 for new houses and $200 for house raising and reminded the Membership that a motion needed to be made if these fees are to be retroactive to the Court Order (following Superstorm Sandy). This would affect the Smith house, 136, and all houses built or raised after that. o Janet DeBenedett asked how many people would be affected by the retro-active fee to which Mr. Caniff responded 18 plus one going forward. o John Piret, 27 OBB, made a motion to implement the construction fees on a retroactive basis. Mr. Fralley seconded the motion. o Ms. Pereksta wanted to clarify if we were handling this properly for tax purposes to which Ms. Lambariello responded yes. o Mary Pfaff, 39 OBB, asked Have we been eliminated that we are not on the internet? I am legally blind. o Tina Hungrige responded that the minutes were mailed out to those not on the internet. o Kevin Shields, 233 OBB, suggested that the Club contract with Mike Serafin s company. o Mr. Fralley stated that if we didn t have Mike (Serafin), we would have to get an outside consultant and the fee would be closer to $1,000. He added that the Club needs to have control of collecting the funds to which Ms. Lambariello agreed. o The motion passed. Vote Results: After Ann Travers, 210 OBB, and the Nominating Committee tallied the votes, Mr. Canniff provided the results. The following were elected in order of most number of votes received: Al Nugent (2 year term) Cathy Gonzalez (2 year term) Greg Canniff (2 year term) Mike Serafin (1 year term) Gary Smith received two write in votes and Bill Reinhold received three write in votes. Giuliano Franciscovic, 213 OBB, made a motion to end the meeting. Ben Mitchell, 20 OBB, seconded and the meeting ended at 11:10 a.m. 5
6 The next meeting to be held over Memorial Day weekend at the Ocean Beach Volunteer Firehouse on Kittiwake Ave. The exact day and time to be announced. Respectfully submitted, Tina Hungrige, Secretary 6
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