Questions and Answers
This page has been made available for Members to ask the Board of Directors questions. The Directors will review the questions at the monthly meetings and will post the question/answers after review.
Email all questions to board@bowleysmarina.com
The below questions pertain to the Marina Protection Plan. This forum is not limited to just the MPP. Submit any questions you may have regarding the Marina!
Bowleys Marina Protection Plan (2/22/2011)
Preface
The need for this project has been recognized for several years. I hope that all members will recognize that different individuals, different boards, and different managers will have different opinions on what should be done, how to best accomplish it and what are the priorities. This is true here at Bowleys. The current Board and management has taken the information before us and made decisions that we feel are in the best interest of all members. This is what you elected us to do. The purpose of this document is to help members understand the decisions currently before us and why we are doing what we are. As new information becomes available, we will adjust and will do our best to keep members informed of those adjustments.
The following Questions and Answers are broken down into 4 categories:
· Scope
· Management/Contractor
· Financing
· Miscellaneous
Scope
1. Question: Why did we initiate this project?
Answer: The infrastructure of A pier is 30 years old. It was identified several years ago that some of the hardware and girders were failing and that the overall integrity was suffering from degradation.
2. Question: What is the current scope?
Answer: The general scope of the plan includes inspections, repairs, and upgrading of existing docks and seawalls on primarily pier A and T-heads on piers D, and E.
The scope is described in detail in a document dated 1/20/2010. It is available as a .pdf file in a link on Bowleys website. It is also available in hard copy in the office. Prior to beginning work on the D pier T-head it was thought that the piers could be reinforced without demolishing the entire pier. Once work began, it was realized that pilings, stringers, girders, and decking needed to be replaced and that a complete demolition was necessary to do so. Additionally, it was decided that cross bracing was necessary for lateral stability. The current scope of work is based on the Engineer’s specification which was only preliminary at the time work was initiated.
3. Question: How will we be informed of scope changes?
Answer: At this point, scope changes are not anticipated. However, progress (including major issues), are presented on the Bowleys website MPP page.
4. Question: How can I stay informed of the status of the project?
Answer: Ed Harwood currently posts daily progress, issues, and major milestones on the website. See http://www.bowleysmarina.com/protection
5. Question: What is our current progress?
Answer: The project started in April, 2009 and, as of 1/1/2011, it is currently about 15% complete. It was decided that the project needed to be completed much sooner than the original 7 year schedule. The new contractor is expected to complete the project in the spring of 2011.
6. Question: What about piers other than A?
Answer: We are confident that upgrades and repairs are also needed to other piers. Inspections are planned during the spring of 2011 that will identify a needed scope of work. A full evaluation and recommendations will be sent to the Board for review. The outcome will be communicated to members.
7. Question: Can additional protection be provided to other parts of the marina?
Answer: The marina is currently extended to the property lines in all directions. Additionally, the Maryland Department of the Environment and the US Army Corp of Engineers allow only for repair and replacement of existing structures.
Management/Contractor
1. Question: Who is managing/overseeing the project?
Answer: This has changed over time. Currently, Ed Harwood (Marina General Manager) and Coastal Properties are providing overall project management. Ed is involved in inspections and construction and decisions on scope changes, how to proceed, etc. Ed frequently updates the board on project progress. Steve Soule is the contracted Project Engineer. He is employed by the marina and is independent from the construction company. He performs monthly inspections and ensures construction is being done in accordance with the specifications. Joey Stansbury is a slip owner on A pier. He is, and has been, involved in all details of the project since it began. The Board of Directors provides oversight for the project and represents the slip owners.
2. Question: Who was the initial contractor and how was he selected?
Answer: The initial contractor was Murphy Marine Construction. He was selected primarily on his experience working with vinyl.
3. Question: Why did we change contractors?
Answer: Initially, the project was thought to be much smaller in scope. The recent bid package represented the current scope. Murphy did not bid on the most recent package. Additionally the timeline went from 7 years to 4 months.
4. Question: Who is the new contractor and how were they selected?
Answer: The new contractor is Marine Technology. Bids were requested from 10 companies and 6 were received. They were selected on the basis of price, their size and equipment, their reputation, their willingness to complete the job in 4 months, and their willingness to have a “not to exceed” price in the contract. They were not the low bidder. It would be unethical to publish bid amounts but slip owners wishing to know this information may stop by the marina office anytime to review the bid packages.
Financing
1. Question: What were the past and what are the present expected costs?
Answer: As of 1/1/2011, the project cost has been about $250,000 This includes final cost for Murphy Construction and for engineering. The remaining costs are estimated to be about $750,000.
2. Question: What is the future expected costs?
Answer: There are currently three significant projects on the horizon:
- Repairs and upgrades needed to Piers B, C, D, and E – after piers are evaluated, approximate costs will be provided.
- Replace fuel lines from storage tank to fuel dock – about $30K
- MDE/EPA imposed water reclamation system (equipment to prevent pressure washing waste water from going into the bay) – $70K.
3. Question: What has happened to my Operational Fees and when can I expect them to go back down?
Answer: In 2009, the Ops Fees increased to $1,330. This was viewed as a permanent increase. Of the $200 increase, $125 was to go to capital improvements of the docks (then viewed as a 7 year program). The remaining $75 was to be applied to increasing costs of general maintenance of the marina facilities. In recent letters to the members (one dated 12/23/2010, it was announced that the Ops fees would be raised an additional $250. It is currently planned for these fee increases to last until 2015. So the contribution of each slip owner should be viewed as follows:
Seven years (from 2009 to 2015) at $125 per year = $875
Five years (from 2011 to 2015) at $250 per year = $1,250
Total = $2,125
Based on Ops Fees being collected from an average of 484 slips, this would result in an income of $1,028,000 that would be used to pay for the principal and interest on the loan for the project. Based on the expectation that costs for general facility maintenance will continue to increase annually and the expected costs listed in item 2 above, it is not expected that the Ops Fees will be reduced in the foreseeable future.
4. Question: With these substantial fee increases, what makes Bowleys a marina that boat owners will want to stay with or come to?
Answer: Maintenance is often a topic owners don’t want to hear about. The current Board of Directors and Management feel that some needed maintenance has been deferred in the past and we are now in a “catch up” mode. This is something most many marinas face and must be considered by any existing and prospective slip owners. Also, Bowleys is more exposed to the weather and boat traffic than many local marinas. This is desirable in making the bay more quickly accessible. But it is undesirable in making maintenance of the docks higher than marinas in more protected area. If an owner or renter finds another local marina to be more attractive, they need to also consider that marina’s level of maintenance, in addition to other typical services and amenities. And both renters and non renters must also consider that the value of their investment will only drop if the property is not maintained. Also, members should consider the current state of the economy. Recent informal surveys have found that other Marina’s have had more trouble than Bowleys at keeping slips filled.
5. Question: Why was a one time assessment of $1,500 proposed in December, 2010 and then the assessment was retracted as an option?
Answer: Originally, a vote of the members was planned for the December, 22, 2010. Shortly before the meeting, the Board of Directors concluded that an assessment would impose a hardship on too many of the members and elected to raise the Ops fees instead.
6. Question: How is the work being financed?
Answer: Marina Operational Fees have been increased to pay for loans used to finance the project. At the April, 2010 meeting, it was announced that a 6.5% line of credit would be used to finance the project. Since then, other banks were considered. The loan has been finalized and is with First Mariner. The terms are $760,000 at 5.75% for 5 years. There will be a 6 month draw period and then it will be a conventional loan for the remaining 54 months.
7. Question: Were other methods of financing considered?
Answer: The board has, and will continue to consider other methods but the legalities and administration of other alternatives will be one of the considerations. The following alternatives were considered:
a. Assess owners a single, one time, fee in order to forgo financing charges
b. Have owners provide interest free loans
Miscellaneous
1. Question: What is the status of the Maryland DNR permit that was to have expired on 10/10/2010?
Answer: A new Maryland Department of the Environment permit was issued on 11/9/10 and will expire on 11/9/13. All permits are posted under glass outside the office door.
Baltimore County Permits are posted also.