April 2014 ocean pines progress by Ocean Pines Progress

Vol. 10, No. 1

April-Early May 2014

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www.issuu.com/oceanpinesprogress Board voting on general manager’s contract extension

An email vote on the extension of Ocean Pines Association General Manager Bob Thompson’s employment contract was being conducted as this edition of the Ocean Pines Progress was going to press on April 10. Once the contract was ratified by a majority of directors, Thompson would be given an opportunity to review it and then accept or reject it, OPA President Tom Terry told the Progress via telephone. Terry said the contract extension, which would include a raise in the general manager’s base salary, includes a restructuring of the contract to include incentive bonuses should the general manager exceed budget projections in the amenity departments, with the exception of Beach Club parking. There will be no bonuses possible for exceeding budget in assessment-related departments, such as Public Works, Terry said. “This incentive feature will be the new template in general manager contracts from now on, regardless of who is filling the position,” Terry said, adding that general managers will no longer be able to assume annual increases in salary other than cost of living adjustments. Terry declined to specify the proposed salary increase for Thompson that the board was voting on but said it would be released to the OPA membership once the contract is accepted by the general manager.

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Yacht Club heading for the finish line March weather made life difficult for contractors doing the exterior work, but general manager is still optimistic about May opening By TOM STAUSS Publisher chizophrenic weather in March had an impact on exterior work on the Ocean Pines Association’s new Yacht Club. Bob Thompson, during his general manager’s report at the March 19 Board of Directors meeting, admitted that the weather did somewhat slow construction of the new amenity but said he’s optimistic that While much of the exterior siding on the new Yacht Club had been installed as of the first week of it will still be open April, this April 9 photo shows what remains to be done on the side facing east. for scheduled May events. Perhaps for the first time, a casual sight- him to believe it won’t be. Thompson “It’s really coming along. We’re very, seer could begin to have a much clear- said he’s been careful to avoid mentionvery excited about it,” Thompson said er idea on how the gray exterior siding ing specific dates in public. during an update on the project. interacts with the split block accents, “I’ve learned my lesson about that,” He said the pad site for the new out- which were somewhat controversial at he said. door Tiki bar is in place, kitchen equip- the end of last year. One local builder/contractor, Ocean ment is being installed, trim work is And for those who remember the old Pines resident Marvin Steen, told the looking good and interior design ele- Yacht Club, the new iteration seems Progress in late March that he believes ments are working out well. “We will be massive in comparison. Memorial Day weekend is a realistic able to control all of the space very effiApril is going to have to be a month of target date, assuming the weather coopciently based on when it’s open or when maximum productivity, because special erates. it’s not open,” he said. events, including weddings, have been He said county inspectors sign off on Thompson said the weather has booked for the new facility in May. OPA project components as they are completbeen a problem for exterior contractors, press releases and classified help wanted and that a certificate of occupancy is though. “The only downside we have, if ed ads have mentioned a public opening simply the last approval needed. anything, is just weather (had been) kill- for Memorial Day weekend. Outside work, from landscaping to ing us for the outside,” he said. During the first week of April, Thomp- the laying of paver stones, just need a But during the first week of April, vis- son reaffirmed his belief that the new fa- string of good days to allow them to hapible progress was evident on the instal- cility will be ready for occupancy in May pen quickly, he said. lation of exterior siding that had been and OPA President Tom Terry confirmed OPA Director Marty Clarke adoptlagging because of poor March weather. that he has heard nothing that leads To Page 24

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The Ocean Pines Recreation and Parks Department will host its annual Easter/Spring Celebration on Saturday, April 19, from 11 a.m. to 2 p.m. in White Horse Park. Egg hunts, entertainment by magician Wild Willy Woo Woo, carnival games, moon bounces, face painting, arts and crafts, visits and photos with Bugsy O’Hare, and an Easter bonnet parade are part of the festivities. Local Kiwanis Club members will be selling hot dogs, snacks, cupcakes and drinks.

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OCEAN PINES

April - Early May 2014 Ocean Pines PROGRESS

By TOM STAUSS Publisher he possibility that the Ocean Pines Association could still decide to lease out the Ocean Pines 18-hole Robert Trent Jones golf course remained in early April, as the OPA had yet to conclude an agreement with Billy Casper Golf to continue to manage the course. While odds favor some sort of arrangement with Casper at least through the summer and into the fall months, OPA President Tom Terry said that the OPA may insist on terms that in the end BCG might be unwilling to accept. In a brief conversation following the Board of Directors’ March 19 monthly meeting, Terry, speaking as one member of the board, said that any contract extension that might occur effective May 1 would include include a provision that the company would vacate Ocean Pines in the fall if performance numbers fall short of budget. In a April 10 telephone interview, Terry said he did not believe the new contract would include a provision reducing the annual contract fee of about $70,000 per year. Terry said his views have been communicated to BCG executives and that he believes they will be considered when the management company forwards a contract extension to the OPA board

Golf course lease option still alive as OPA yet to extend Casper contract for consideration. OPA General Manager Bob Thompson continues to serve as the OPA’s representative in dealing with Casper representatives, Terry said. The contract draft was expected in OPA offices by April 10 or 11. The board has scheduled a closed meeting for April 16 to review and discuss it. While extending the Casper contract appears to be way that golf course management will unfold in coming weeks, Terry said that the OPA continues to build on recent discussions with parties who have expressed interest in leasing the course. “While we attend to the current season, we must continue to build a positive alternative should our golf usage not return to trends that could lead us having a much improved financial story,” Terry wrote in a document released March 19 that summarized discussions he had with those parties. Thompson has argued strenuously against exploring any lease option, expressing concerns that it will send the

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wrong message into the marketplace at a critical time of the golf season. At the board’s March 19 meeting, Thompson presented data indicating that in the March through June period, bookings on the course had reached 3,037, compared to 740 in 2013, 134 in 2012 and 2,053 in 2011 for the same period of time. During the board’s March 5 work session, Thompson said that even discussion of a lease option could jeopardize those bookings. Terry’s written summary, which appears on page 21 in this edition of the Progress, indicates that he is more receptive to the notion of a lease arrangement than Thompson. In the early April follow-up interview, Terry said he didn’t think a lease arrangement would occur by May 1 but seemed more practical for the fall, after the conclusion of the prime golf season, and only if BCG is falling behind optimistic budget forecasts for the coming fiscal year. Terry met with local builder/developer Marvin Steen in late March to update

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him on golf course management issues, along with directors Jack Collins and Jeff Knepper. Steen is a key player in the evolving situation because he was the individual who has openly called for a petition drive and referendum on the OPA getting out of the golf business, should larger operating deficits continue. Steen, through an organization calling itself Coalition for Ocean Pines Equity, COPE, asked for a thorough exploration of the golf course leasing option in a full-page advertisement placed in the Progress in March. His advertisement included a sample petition question on whether to close the golf course should the leasing option fail to materialize. He subsequently told the Progress that he believes that Terry has embarked on a “good faith effort” to pursue the lease option and is willing to give him some time to make it happen, even if it occurs late this year. But Steen said he is fully prepared to launch a petition drive aimed to force a referendum on closing the course should that effort, in the end, fail to produce a golf course lease. Steen said there was some discussion among the four about whether Casper would be willing to accept a short term extension of its OPA contract that includes a provision requiring the compaTo Page 23

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April - Early May 2014 Ocean Pines PROGRESS

General Manager makes two high level appointments OCEAN PINES BRIEFS weddings and special events up to 800 people. His other experience also includes over eight years as executive sous chef with Aramark, specializing in the sports and entertainment and campus dining divisions. He has also run operations at John Hopkins University, Oriole Park at Camden Yards and the Verizon Center in Washington D.C., as well as assisting with large events at the Detroit Convention Center, Fenway Park in Boston and several other regional functions. In a mid-March memo to the OPA Board of Directors, Thompson disclosed to the board that Tom Perry had resigned as aquatics director effective April 11. Perry agreed to stay on in a consulting capacity to help with the transition. Thompson acted quickly to fill the vacancy, suggesting that Perry’s departure was no surprise. He hired Colby Phillips, the longtime instructor of a popular water aerobics class in Ocean Pines, as Perry’s replacement. She has had a management role with the Ocean City Beach Patrol for many of the 20 years she worked for that agency.

Her first official day on the job is April 14, while Perry’s last day on the job is April 17. She was introduced to members of the Aquatics Advisory Committee on April 2. She said she was extremely pleased with her new role and complimented the “strong team” of aquatics personnel she has inherited from Perry. Committee chair Virginia Reister, a former transitional aquatics manager for the OPA and director back in the early 1980s, pledged to lend as much assistance as possible to help Phillips succeed in her new role.

Goose control plans still under review

Despite ongoing concern among property owners that the Ocean Pines Association may start thinning the flock of Canadian geese hanging around the ponds, President Tom Terry said during a March 19 meeting that efforts have been shifted to finding less drastic methods of population control. Still, he said, no decision has been made by the board regarding how to

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proceed with curbing the influx of the transient waterfowl. Terry said the OPA staff has refocused its efforts “to find a nonlethal solution to the geese problem.” The OPA’s Environment and Natural Assets Committee is also now committed to finding a way to deter the geese that does not involve euthanizing them, he said. That committee approached the OPA board last year saying that something needs to be done about the Canada goose population, which has gotten too large to be sustainable and is causing damage to the ponds. Those waterfowl are fouling up the area around the Worcester County Veterans Memorial, causing traffic jams and polluting the water at the ponds. Excessive goose waste in the ponds was one of the reasons the OPA experienced a fish kill in 2012. The nutrients that the geese put into the pond cause vegetation and algae growth that blocks out sunlight and causes a drop in the amount of dissolved oxygen in the water and then the fish die. The committee initially recommended euthanizing some of the geese and using them to feed the homeless as one alternative.

cean Pines Association General Manager Bob Thompson made two high level appointments in March, announcing the hiring of a new executive chef for the Yacht Club and a new aquatics director. According to an OPA press release, Timothy Ulrich will oversee kitchen operations at the new Yacht Club, including those related to the banquet business. Ulrich has more than ten years of professional cooking and culinary management experience in high volume, multi-unit operations offering special event catering, a la carte fine dining and casual dining services. Ulrich graduated with a degree in Culinary Arts from Baltimore International College with an A.A.S. in Professional Cooking and Baking in 2001 and a B.A.S. in Culinary Management in 2003. Most recently, he oversaw daily food and beverage operations at Belle Haven Country Club in Alexandria, Va., where he was responsible for a 175seat, full-service restaurant focused on regionally inspired modern cuisine and seasonal menus. He also oversaw two satellite kitchens at the club’s swim and fitness centers and on-site catering for

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OCEAN PINES BRIEFS From Page 5 Now the OPA is looking more closely at methods of goose control that include sound machines, decoys, dogs to scare away waterfowl, wires across waterways to prevent the geese from landing and chemical repellants, as well as a goose poop removal machine.

Knepper named parliamentarian

Jeff Knepper, a newly appointed member of the Ocean Pines Association’s board of directors, was selected during a March 19 meeting to act as the governing body’s parliamentarian. “I said I would with the understanding that as I sit here today I don’t know much about Robert’s Rules of Order,” Knepper said. He asked the board to “cut me some slack” while he learns about it. Director Sharyn O’Hare said Knepper was tapped for the position because he assumed former director Dan Stachurski’s seat on the board when he vacated it. Stachurski also served as board parliamentarian.

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OPA wins awards for publication, Web site

The Ocean Pines Association is being honored in with two awards at the annual Maryland Recreation and Parks Association’s meeting in Ocean City in April. OPA General Manager Bob Thompson announced during a March 19 board meeting that the association won two awards this year in the categories for

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agencies serving populations of less than 50,000 people. The OPA took top honors for best website and best special events publication for the Celebrating Ocean Pines’ 45th anniversary.

Financial resolutions dropped from agenda

Two resolutions scheduled for discussion and action at the March 19 monthly meeting of the Board of Directors were removed from the agenda early in the meeting, partly in response to confusion over which advisory committee had last looked at the resolutions in question. According to the published agenda, the board was to consider Resolution F-05, which concerns the abatement of annual OPA assessment under certain distress situations. A motion was to be offered to rescind the resolution. According to the meeting agenda, the rescission has been recommended by the Budget and Finance Advisory Committee. A second motion was scheduled to be offered to amend Resolution F-02, which concerns annual budget development and monitoring. According to the meeting agenda, this motion, too, was being offered on the recommendation of the same advisory committee. In both instances it was Director Marty Clarke who placed them on the agenda for consideration. That didn’t sit well with Director Bill Cordwell, the OPA treasurer who is also the board’s liaison to the budget and finance committee. He challenged the notion that the committee was ask-

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April - Early May 2014 Ocean Pines PROGRESS 7

OCEAN PINES From Page 6 ing for board action on these resolutions because, as liaison, he would have been the one tasked with placing them on the board agenda. Clarke’s involvement stems from the fact that he is and still may be the board’s official liaison to the Bylaws and Resolutions Advisory Committee, or at least he had been; that role might now reside with recently appointed Director Jeff Knepper.

The bylaws committee traditionally reviews changes in resolutions recommended by other advisory committees. Usually, it’s this committee that serves as the direct conduit to the board when any changes are recommended. That may or may not be the case in these instances. It probably will take some administrative intervention by OPA President Tom Terry to sort out the territorial confusion.

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Foultz attended a board of directors work session recently. Despite a breach in meeting protocol intended to restrict public comments to agenda items, she was allowed by meeting chair Sharyn O’Hare to address the board on an unrelated topic. Her concern: the inability the previous day of her bridge group to get inside the Country Club for their regular bridge game. She told the board that the elderly ladies in her group were getting cold waiting for doors to open and that exposure to the elements was risking their health. Calls to OPA staffers went

unanswered, and a frustrated Anna Foultz ended up calling 911 in a lastditch effort to gain entry. That didn’t work. Calls to 911 are routed to central dispatch in Snow Hill and are intended for emergencies only. When that transgression was brought to her attention by OPA General Manager Bob Thompson during the work session, she apologized but didn’t back down on her central meme that bridge players needed a place to play and that the Country Club was working well as a venue for that purpose.

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OCEAN PINES

April - Early May 2014

OCEAN PINES BRIEFS From Page 7 It turns out that the Country Club was not working out well from the perspective of the OPA. The Parks and Recreation Department had been trying for “three months” to coax the bridge players to the Community Center, Thompson said, but had met resistance. He said the Country Club is poorly insulated and the heating system hasn’t worked well this past winter. Happy ending: the bridge players have moved to the Community Center and seem to be getting along well. No further phone calls to 911 have been reported.

House and Home Expo April 26-27 in OPCC

The Ocean Pines Community Center will be the venue for the annual Ocean Pines House and Home Expo scheduled for Saturday, April 26, from 10 a.m. to 5 p.m., and Sunday, April 27, from 10 a.m. to 2 p.m. The show will showcase over 50 companies to assist residents with a variety of home improvement projects. Celebrity guest educational seminars will be offered on Saturday. At noon and 2 p.m., Jeff Devlin, host of DIY’s I Hate My Bath, will be giving clever bathroom

renovation ideas using amazing new products and tools. He is a licensed contractor who has done complete kitchen, bathroom, and basement renovations to custom built-ins, furniture and woodwork. He has even renovated two historic Pennsylvania farmhouses. Have problems, ideas, or questions regarding a renovation project? He will be available to answer questions as time permits. On Saturday at 1 p.m., Ginny Rosenkranz from the University of Maryland will give a presentation titled, “What’s not dear to the deer!” She will talk about all things gardening. Admission is free to both seminars. The expo will also offer free paper shredding from 10 a.m. to noon on Sunday, with a limit of three legal sized boxes per person.

environment. Applicants must be full-time residents of Ocean Pines or a child or grandchild of a non-resident who is an active member of the Ocean Pines Garden Club. Applicants must agree to follow the stated purpose of the scholarship as stated above and plan to attend an accredited institution of higher learning. The award may be used by the recipient to defray expenses at any approved degree or certificate granting college or university, technical or vocational school. Applicants will be considered by a selection committee composed of members of the OPGC as designated by the president of the club. An application form must be submitted to a senior guidance counselor at Stephen Decatur High School by April 22.

Garden Club offering annual scholarship

Festival of boats planning continues

Once again this year, the Ocean Pines Garden Club (OPGC) will present scholarship funds to a qualified graduating senior of Stephen Decatur High School. The available scholarship is in the amount of $1,500. The purpose of the OPGC’s scholarship program is to stimulate interest in gardening, horticulture, agriculture, and the conservation and protection of the

Members of the Ocean Pines Boat Club have continued to plan activities and events for the Festival of Boats scheduled for July 26. A community day of family fun and entertainment, including games, balloon-making clowns and Kiwanis Club hot dogs are just some of the events planned. The day’s happenings will begin at

high noon at Pintail Park, where the boats will begin to line up. Everyone is invited to bring chairs, perhaps pack a picnic lunch, bring a cooler and enjoy the festivities. The Kiwanis Club will start cooking their famous hot dogs, which, along with soft drinks, will be on sale until 4 p.m. The boats will begin to leave Pintail Park at 2 p.m. They will be sequenced into the charted route and will eventually pass by the judge’s station located at the end of the Grand Canal close to Ocean Parkway. Plans are being formulated for additional festivities following the judging. Prizes will be awarded for first, second and third place in each category, and a grand prize will be awarded for Best in Show. To qualify, boats must be decorated, costumes should be worn and music should be supplied if possible. The theme this year is “Fantasy.” Participation in the Festival of Boats is open to all Ocean Pines residents, organizations, and businesses. Ocean Pines Chamber of Commerce businesses that would like to participate in the parade and advertise their businesses are most welcome. Visit the Ocean Pines Boat Club website opboatclub.com for a registration form or contact Steve Stein at spikerex@ aol.com, 410-641-8930, or Fred Heinlen at fheinlen5@msn.com, 410-208-3165.

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OPA moves ahead with pool fixes Aquatics community members hope Yacht Club pool will be accessible by Memorial Day weekend By TOM STAUSS Publisher

he OPA is moving ahead with the projects at the Mumfords Landing and Swim and Racquet Club swimming pools that should be complete by the time these facilities open for the summer on Memorial Day weekend. Outgoing Aquatics Director Tom Perry told the Progress that he understands that checks have been cut and work orders issued to the relevant contractors so that they can begin work at their separate pool venues. In the case of a new splash pad and related improvements at the Swim and Racquet Club pool, Perry said he thought it would be “close” but that the contractor should be able to make the Memorial Day weekend deadline. The Mumford’s Landing pool improvements are more extensive than those at the Swim and Racquet Club, but here, too, Perry said he thought the deadline would be met. Recently, some members of the Ocean Pines aquatics community have wondered whether access to the Yacht Club pool completed last year will be problem free given the fact that access to the pool is within the construction zone for the new Yacht Club. As of April 10, roughly a month and a half separated from Memorial Day weekend, it appears much remains to be done to complete the new facility. At least portions of the parking lot close to the pool will need to be paved before pool users will be able to gain access to the pool. Perry said he simply didn’t know whether the pool will be accessible by Memorial Day weekend. He said that his experience in dealing with building and health department inspectors prior to the opening of the new Yacht Club pool late last summer indicates that they will not be willing to allow the pool to open if it’s close to a construction site.

Prospects at the Mumford’s Landing and Swim and Racquet pools are less murky. The Mumford’s Landing pool repairs will be preceded by a pressure test of the pool’s piping. The purpose of the pressure test is to determine whether there are previously unidentified leaks in the pool. Other improvements to the complex include changes to the baby pool to make it ADA (American with Disabilities Act) compliant and new fencing to accommodate the baby pool’s new sloped “zero entry” ramp. The Mumford’s Landing pool project is not included in either the current fiscal year’s budget or the FY 2014-15 budget that goes into effect May 1. But the board of directors has approved the reallocation of $60,000 that had been budgeted this year for repairs at the Sports Core swimming pool to the Mumfords Landing facility instead. New funds for Sports Core pool repairs have been included in the 2014-15 capital budget, but it’s unclear whether Thompson will be ready to make Sports Core pool fixes this summer. Perry said he’s heard nothing from Thompson indicating that he is seriously considering any Sports Core improvements this summer. The Mumford’s Landing pool has a floor crack running the entire width of the pool and several vertical cracks on the pool walls running from the floor to the coping tile. One of the cracks involves a pool skimmer. The contractor will cut and grind out the cracks, repair the expansion joint that adjoins two separate sections of the pool and re-tile the affected areas. The entire pool then will be resurfaced with a Diamond Brite finish, similar to that at the new Yacht Club pool. Thompson has said the main crack is actually caused by the pool’s expansion joint “that really should not have been

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Property owners owe OPA $1.1 million in back assessments Delinquency rate of about 3 percent better than other area associations By ROTA L. KNOTT Contributing Writer

ore than 96 percent of property assessments for the 2014 fiscal year have already been collected by the Ocean Pines Association, and more than 97 percent of the fees have been paid by property owners for each of the two preceding budget years. Pete Gomsak, a member of the OPA committee that annually reviews accounts receivable, during a March 19 Board of Directors meeting presented an update on assessment collections through Jan. 31 of this year. The OPA has two kinds of accounts receivable, those related to prior year assessments and those for the current fiscal year, he said. Overall, the OPA has an average annual delinquency rate on property assessments of just 3 percent but, with fees and interest added, that currently amounts to more than $1.15 million owed to the association. About $200,000 of that amount is still outstanding from property owners for the current fiscal year, and the remainder is from fiscal years 2009 through 2013. On Jan. 31 of last year, the OPA had $951,018 in receivables. The $163,982 year-over-year increase is attributable in large part to the increase in lot assessments approved as part of the Fiscal 2014 budget, Gomsak told members of the OPA’s Budget and Finance Advisory

Pool repairs From Page 10 quite finished the way it was”, according to “what two of the engineers told us.” As initially conceived, pool repairs were to include hydraulic pressure injection of concrete sludge slurry under a section of the pool that has subsided, to “bring the pool up to the level it should be,” Thompson said. But there has been recent concern that such an injection might cause other problems, including possible stress on the expansion joint, so the approved project apparently will not attempt to address the subsidence. At the Swim and Racquet Club, the board on the recommendation of Thompson and the Aquatics Advisory Committee decided not to make the baby pool ADA accessible but is opting to replace it with a new splash pad, leaving the existing baby pool mushroom feature. The OPA does, however, have to make other changes to comply with ADA, but the work will be completed in-house by the public works department at a cost of just $4,700. That project involves construction of a wooden ramp that will extend from the club deck to the new splash pad, allowing easy access to parents with strollers.

Committee recently. For 2014, the OPA billed property owners for $8.429 million in annual assessments and wrote off $7,335 of that amount for a net of $8.421 million. As of Jan. 31, about $8.125 million of that amount had been paid, leaving $295,667 due to the OPA. Data through Jan. 31 also showed that $194,299 remains outstanding from the 2013 assessments, $138,932 from 2012 and a total of $167,238 for the years 2009 through 2011. Adding interest, lien fees and other charges brings the amount due to the OPA from its property owners up to $1.155 million. Still, Gomsak touted the OPA’s high collection rate of around 97 percent for the last four years and 98.3 percent av-

erage overall for 2009 through 2014. He added that almost 60 percent of Ocean Pines property owners pay their annual assessments prior to the due date of May 1. “We feel very, very good about where we are,” General Manager Bob Thompson said. He took a look at how the OPA matches up to other homeowners associations when it comes to collecting assessment revenue and found that Ocean Pines is at the top if the list. Locally, he said the delinquency rates are 8 percent for Mann Properties, 9 percent for GlenRiddle and 15 percent for Captain’s Cove. Online data from Houselogic indicates that 65 percent of homeowner’s associations have a delinquency rate

of more than 5 percent, while City-data says the average in 9.6 percent and HOATalk indicates that it is even higher at 15 percent. Thompson said the OPA works with property owners in a variety of ways to maintain that high collection rate, including offering delinquent owners a payment plan and providing the opportunity for residents to pre-pay the next year’s assessments. OPA President Tom Terry thanked property owners for being diligent in paying their assessments. He said few businesses have as high a collection rate on their receivables as does the OPA. “We have a phenomenal record here,” he said. “I’m very proud of this organization and its members.”

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OPA targets problem accounts for collection efforts, results mixed Gomsak says time better focused on those owing less than $5,000 By ROTA L. KNOTT Contributing Writer

total of 363 property owners owe the Ocean Pines Association more than $1.155 million in back assessments, and 95 of them are in debt to the OPA for more than $5,000 each. Pete Gomsak, assistant treasurer and a member of the OPA financial team that annually reviews delinquent accounts, presented an update on the collection of past due assessments to the board of directors during a March 19 meeting. He made a point to distinguish between those who owe over $5,000 or more and those who are under that amount. Gomsak’s report shows that 95 property owners owe the OPA $5,000 or more; that 26 percent of delinquent members owe 59 percent of the outstanding assessments due to the OPA for a total of $684,924. The average amount owed by those in the $5,000 or more range is $7,210. Another 51 members are in debt to the OPA for $3,000 to $4,999 and owe a

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total of $200,108. In the $1,000 to $2,999 due range are 142 members, who owe a cumulative total of $247,936. Finally, another 75 property owners are behind in paying the OPA by less than $1,000 and owe a total of $23,046. Last year the board of directors decided to begin pursuing legal action against property owners with $5,000 or more in outstanding assessments, exclusive of late fees and other charges. That motion instructed the general manager to publish the names of association members who have failed to pay the charges levied by association in excess of $5,000 and initiate legal action against those members for all money due and reasonable attorney fees. For collection purposes, that resulted in a breakdown of past due accounts into the categories of $5,000 or more and less than $5,000, Gomsak said, adding that amount only includes back assessments, not attorney’s fees, lien fees or other charges. The OPA can only file suit in small claims court to collect up to three years of back assessments. Gomsak said during the first year of trials collecting from those who owe $5,000 or more the OPA did not have good results. Two cases were dismissed

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by the court system. Another property owner agreed to set up a payment plan with the OPA, forestalling any judgment in favor of the association, but so far only $400 has been collected. He said there were various problems with all of the other accounts of $5,000 or more that prevented the OPA from pursuing collections, primarily that the property owners “owe a lot of money to a lot of other people.” Gomsak said pursuing claims of $5,000 or more requires representation by an attorney even in small claims court, and that means the OPA incurs additional costs to pursue them. However, for amounts less than $5,000 anyone can represent the OPA in small claims court. The OPA took action to collect back assessments owed by 20 property owners with outstanding accounts of less than $5,000. Gomsak said that resulted in eight court judgments in favor of Ocean Pines. Still, he said, “that doesn’t do anything except enter it into court record.” Only one of those property owners has completely paid off his debt, and a few others have entered into payment plans with the association. Even if the court finds for the OPA in small claims there is no guarantee that it will be able to collect the outstanding assessment money. The OPA may need to work with a collection agency to try to garnish the wages of the property owner or their bank account in order to actually collect the funds. Still Gomsak said the OPA had better luck trying to collect money from those who owed smaller amounts. “Our committee concluded that we ought to focus on those under $5,000 amounts,” he said. He added that placing liens against a property “are the most effective tool we have to ultimately collect these outstanding assessment dollars.” But doing so “may take some time” because the federal government in particular wants to protect consumers and that makes it more challenging for those owed money. The OPA is in the same situation as banks trying to collect on mortgages,

Gomsak said. It is also following on the heels of some banks that are foreclosing on properties in Ocean Pines, and sometimes that means the OPA gets nothing in the end. He cited one case where the bank foreclosed, and it forced the property owner to declare bankruptcy. As a result, the OPA was not able to collect any of the money owed to it. Gomsak said there has been an increase in the number of properties in foreclosure in Ocean Pines during the last year. That is because it has taken years for financial institutions to begin action against the OPA members who are in arrears. In some cases, even if a lender holding a first mortgage does not want to foreclose a property, the OPA can, although it has no standing over a first mortgage holder. However, first mortgage holders are generally content to allow foreclosure proceedings to occur as long as the entity pursuing the action is willing to pay off their debt too, Gomsak said. “When do you get to a charge off situation?” Board member Jack Collins asked regarding uncollectable assessments due to the OPA. Gomsak responded that the association is not required to charge off debt that it cannot collect. He said even when a property owner is in bankruptcy or when the debt is discharged through foreclosure, the OPA does not write off the amount that it is owed. Instead, the association turns over the accounts to a collection agency to pursue. “Are we doing everything we can to go after those that haven’t paid? I think we are,” Terry said. Currently, any property owner who has not paid their assessment bill, which is due on May 1, is sent an initial late payment notice on July 1 and a second in August. In September, they receive a certified letter that the OPA intends to file a lien on the property, and in October such notices are posted on the property itself. Come November the OPA can actually file liens, and legal proceedings get under way within a few months. In an effort to reduce the number of To Page 14

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April - Early May 2014

B&F chair criticizes report on OPA’s handling of reserve funds By TOM STAUSS Publisher he new chairperson of the Ocean Pines Association’s Budget and Finance Advisory Committee has taken exception to a recent report in the Ocean Pines Progress regarding a provocative assessment of the way the OPA handles money from its allocated reserve funds. Pat Stupik, the chair, was reacting to an article in the March-Early April edition that dealt with earlier comments from a committee member who suggested that if regulators from the State of Maryland were to audit spending from OPA reserves, they would find violations of state law. Committee member Dale Buley made those comments during the committee’s February meeting. At the committee’s March 21 meeting, Stupik was highly critical of the article, calling it “not true.” Buley also said he was “not happy” with the reporting, alleging that it had implied “malfeasance” on the part of the OPA when he had suggested no such thing. Stupik suggested the article put the committee in a bad light. Buley said the article was written in a way intended to increase Progress

readership. Buley, during the committee’s February meeting, had not offered any specific examples of where the OPA runs afoul of state law. Nor did he assert that the violations would be egregious enough to result in OPA officials being arrested and prosecuted. In a follow-up interview with the Progress, Buley said that the OPA has over the years spent money out of its major replacement reserve fund for purposes other than replacement of assets. State law is very specific on that point, he said. When pressed later in the March 21 meeting when that portion of the article was read to him by Pete Gomsak, the OPA’s assistant treasurer, Buley stood by his view that such reserve spending is a violation of state law. He told Gomsak that he would provide him with specific provisions in state law or regulations that support that contention. The Progress extended an invitation via email to Buley requesting him to supply to the publication the same information he promised to supply to Gomsak. The Progress had not received a re-

ply by press time in early April. Gomsak told the Progress in a April 9 telephone conversation that he had not received any follow-up communication from Buley but added that perhaps some might be forthcoming at the committee’s next meeting. During the February meeting, Buley said that in the OPA’s 2014-15 budget approved by the OPA Board of Directors, there are examples of certain proposed capital expenditures that are more accurately described as new capital projects that should be funded out of next year’s lot assessments rather than out of the replacement reserve. According to the capital expenditure project list, the funding source for four new pickleball courts and two new platform tennis courts is the replacement reserve. None are replacing existing assets. In addition, the board has approved a new splash pad at the Swim and Racquet Club from the replacement reserve; at least in this instance, the approved splash pad is replacing the old baby pool. Buley said that when an existing amenity is upgraded, the upgraded amenity, or the difference in cost between a base amenity and an upgrade,

should be paid for as “new capital” out of current assessments rather than the replacement reserves. That is the policy in the Parke section of Ocean Pines, he said, and the OPA should follow suit. Gomsak told the Progress that the Parke procedures don’t necessarily apply to the OPA. The approved list also contains two capital expenditures, bridge repairs and a new or remodeled police station, which To Page 16

Collections From Page 12 delinquent accounts, the OPA has made numerous enhancements to its collection process including trying to contact property owners who are in arrears by phone and additional mailings, searching county records and websites, and even performing Internet searches to locate absentee owners. All of that is done to try to at least get them on a payment plan with the OPA. Delinquent property owners who have established a payment plan with the OPA are exempt from legal action.

April - Early May 2014 Ocean Pines PROGRESS 15

16 Ocean Pines PROGRESS

OCEAN PINES

April - Early May 2014

Gomsak says $15 million reserve balance isn’t his target number Assistant treasurer calls OPA a ‘municipality organized as a homeowners association’ By TOM STAUSS Publisher e’s not a member of the Ocean Pines Association’s Board of Directors. Nor does he sit on the OPA’s influential Budget and Finance Advisory Committee. But he was appointed last summer for another term as OPA’s assistant treasurer. From that perch former Director Pete Gomsak continues to play an influential role in Ocean Pines affairs, both as an informal advisor to OPA General Manager Bob Thompson and someone who is frequently called upon to advise OPA policy-makers on financial matters. His tutorials range from arcane discussions about funded depreciation, which is the way the OPA historically has paid for most of its capital expenditures, to the status of lot assessment delinquencies. To say that his role is an outsized one would be an understatement. As a retired certified public accountant who served on the board for three years, after a stint on the budget and finance committee, he’s someone who, if not universally adored, is nonetheless listened to. One critic last year referred to him snarkily in a public board meeting as

Thompson’s “Rasputin”. Thompson has said he respects and relies on Gomsak for advice and, indeed, the assistant treasurer was given an opportunity to vet Thompson’s draft 2014-15 OPA budget before it was presented to the board of directors in early January. Gomsak has drafted motions that his nominal overseers, OPA treasurers, have presented for board review and action. Former Treasurer Terri Mohr, now a director in the final year of a threeyear term, apologized to him at one public meeting last year for not giving a detailed and informed explanation of the subject at hand. He wasn’t even there at the meeting to accept the apology; had he been, no apology would have been necessary as he probably would have made the presentation himself. More recently, Mohr’s successor as treasurer, Bill Cordwell, freely admitted that a motion he presented on a finance-related resolution had been drafted by Gomsak. A subsequent proposal presented for a board vote by Cordwell was, he said, based on a “template” drafted by the assistant treasurer. Cordwell’s background is in law en-

VOTE FOR

forcement; Mohr’s is in medical administration. It’s not too difficult to see how it’s possible that an unelected former board member with a lifetime of experience in accounting would continue to have a behind-the-scenes role as an assistant treasurer and a drafter of policy proposals involving his area of expertise. At the board’s regular monthly meeting on March 21, Gomsak was the point man on a detailed presentation on the OPA’s continuing efforts to deal with de-

linquent lot assessment accounts. He’s on the committee tasked with delivering an annual report on the subject of delinquencies. He’s the one who prepares detailed charts on whatever subject he is addressing, sometimes overwhelming those who are not as well versed in the subject under discussion as he is. Even his critics give him credit for doing his homework. He’s articulate, fast on his feet, and To Page 18

Reserve funds

Buley also said the OPA has not yet resolved the difficult question of how much funding should be in the OPA’s allocated reserve funds over a 30-year period. He said it’s time that the OPA hire experts to conduct another reserve study to resolve that issue, once and for all. To that end, during discussion at the committee’s March meeting, Stupik indicated interest in inviting experts on reserve studies to attend a future committee meeting to provide insight on what issues should be addressed should the committee recommend a reserve study in the future.

From Page 14 show the five-year-plan funding stream as their funding sources. The five-yearplan funding stream is one of two funding components of the major maintenance and replacement reserve. Previously, OPA President Tom Terry has insisted that the five-year-plan funding stream is restricted in its use, to be used only to finance the construction of the new Yacht Club, consistent with pledges made to property owners in the run up to the referendum that approved $4.3 million for a new Yacht Club.

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Gomsak From Page 16 few directors or others with an interest in OPA policy matters are willing to take him on in any meaningful way. At the March 21 meeting of the budget and finance committee, Gomsak was there, weighing in on a variety of agenda topics. An observer might even have come away from the meeting with the perception that Gomsak had dominated it. He was certainly not shy in expressing his opinions. During committee discussion of the OPA’s reserve funds, he repeated past pronouncements on the purpose of OPA reserve funds, especially the Major Replacement and Maintenance Reserve. Then he served up an observation that seemed somewhat out of context. He called the OPA a “municipality organized as a homeowners association.” That was a characterization that no one on the committee challenged or even commented on. Gomsak went on to rebut a recent report that he supports a reserve fund balance in the amount of $15 million, a claim attributed to him by former OPA Director Dan Stachurski in a Progress interview published in February. “$15 million isn’t Pete’s number,” Gomsak said, adding that the current

reserve balance is “more like $5 million, and declining.” He’s correct about that – the reserve balance as of Feb. 28 was $3.99 million – but Stachurski was addressing reserve balances over the next ten years, not the current balance, which has been steadily eroding over the past year as expenditures for the new Yacht Club project have been made out of the replacement reserve. In his February remarks, Stachurski said he disagrees with Gomsak on how much in assessment dollars will need to be allocated to the OPA’s replacement reserve to fund future capital needs. “He’ll tell you we’re about $10 million short of where we should be,” Stachurski said. An additional $10 million from the February reserve balance of $5.36 million suggests that, according to Stachurski, Gomsak wants a balance of somewhere close to $15 million or more, which would be roughly half of the OPA’s current asset base as shown in recent balance sheets. Stachurski said he believes that reserves don’t need to be anywhere close to that level, and that Ocean Pines property owners would never tolerate assessments that would produce reserves in the neighborhood of $15 million. In a recent telephone interview, Gomsak said the $15 million is the number that, according to the OPA balance sheet, reflects current assets less accu-

mulated depreciation on those assets. For many years, the OPA has had a policy of funding depreciation through the annual lot assessment. He acknowledged that the OPA is not required to fund depreciation but that doing so has resulted in a financially healthy homeowners association. Stachurski has said it’s very possible that the OPA is overfunding the replacement reserve over the long term by a substantial amount. Under current policy, the OPA is collecting $2.75 million per year for the replacement reserve, consisting of $1.1 million allocated to the five-year funding revenue stream and $1.65 million in funded depreciation. Over the next ten years, absent any change in policy, the OPA will be collecting from annual lot assessments $27.5 million in replacement reserves. The draft capital improvement plan (CIP) presented by Thompson last year projected $16.8 million in capital expenditures over that same ten years, but Stachurski said he believes some of the items that make up Thompson’s rackand-stack are too grandiose for Ocean Pines and too expensive. “I think Bob to some extent wants to remake Ocean Pines” into something it doesn’t “need or want to be,” Stachurski said. “Going forward, we need to renovate some facilities to get another 30 or

40 years out of them.” Exhibit A for what Stachurski said is too grand a plan: a proposed $3 million natatorium that the general manager proposed for Fiscal Years 2021 and 22. Stachurski said he also believes that the Country Club, which has an estimated renovation cost of $3.2 million in the draft CIP, should be replaced with a much smaller pro shop and snack bar building. “Given our substantial investment in a new Yacht Club, with two separate kitchen and dining venues, I don’t believe we need a Country Club,” he said, adding that he believes it’s possible to put up a smaller replacement building for much less than $3.2 million in renovations proposed for Fiscal Years 2017 and 18. The board has not taken up Thompson’s proposed CIP for public review and discussion. A previous rack-and-stack, approved by the board in June of 2011, is substantially out-of-date but remains “official” board policy until it is replaced by a later iteration. OPA President Tom Terry has informed the budget and finance committee that he believes it’s possible that the OPA can collect less from property owners in the future if it turns out that anticipated collections exceed planned expenditures.

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Pines seeks legal resolution to Point turnover stalemate Dispute with original developer kept OPA from assuming legal control over common areas sign off on a turnover agreement. He is long gone from the area, now reportedly living in California. Moore said he has “lived with the Point and its turnover agreement” longer than any other person in Ocean Pines. Moore said initially “everything was fine” as Meinhardt began development of the Point, but then he got into an argument with the OPA board of directors as to “whether the Point would be able to have individual mailbox delivery,” with mailboxes at the end of each individual driveway. The board at that time declined to approve a declaration of restrictions for the section because they contained a provision for home mail delivery. Meinhardt took the issue to court when the OPA objected, but the homeowners association prevailed and persuaded the postmaster to reject the proposal for home delivery. “That’s when, I suggest, that things got to be a little dicey with Mr. Meinhardt,” Moore said. “Therefore, he unilaterally filed a declaration of restrictions,” marking through any authority

over the Point on the part of the OPA Board of Directors. But Moore said that mark-through was invalid because the Point is part of Ocean Pines, and restrictions are enforceable by the OPA. The association unilaterally ratified the restrictions so that property owners in the Point would be obligated to pay annual property assessments and enjoy the amenities and services provided by the OPA. Still, Moore said, “I couldn’t get him to do a turnover agreement.” Such agreements exist in all section of Ocean Pines to provide for the methods by which open spaces, drainage and streets become property of the Ocean Pines community. He said he has submitted requests to Meinhardt’s attorney repeatedly since 2004 asking for the developer to sign off on a turnover agreement. “I’m not even sure why he didn’t do it. All I do know is that, as we speak, the turnover agreement for Section 17 is not effective because the developer has not signed it,” Moore said. He again contacted Meinhardt’s attorney in 2009

asking for the developer’s signature on a turnover agreement and offering to have the OPA cover all associated costs. Again there was no response. Finally, several months ago, Moore said a potential method for resolving the issue surfaced based on a 1995 agreement among Balfour Holdings, Ocean Pines LLC, which were the developers of the Village of Ocean Pines including the Point, and the OPA. The provisions of that agreement, “which was a development plan and a roadmap to the development of the Villages of Ocean Pines was binding upon and enforceable by OPA and all successors to Ocean Pines LLC,” Moore said, including the Point’s eventual developer. “It is therefore legally possible to ask the Circuit Court for Worcester County, in a declaratory judgment, to determine that the open spaces, the drainage and the roads be turned over to Ocean Pines,” he said. Because the records already designate Worcester County as a “referee” between the OPA and Boise Cascade, the original developer of Ocean Pines, regarding whether or not the roads and drainage structures are adequate, Moore said it should be a fairly simple process to get a declaratory judgment. When the county accepted the roads and stormwater management as adequate, then a turnover could be enacted. One issue that needs to be addressed

By ROTA L. KNOTT Contributing Writer decade-old standoff between the Ocean Pines Association and the developer of the Point, Section 17 in the far south of Ocean Pines, regarding a turnover agreement for common areas that include outlots, roads and stormwater management areas, could finally be coming to an end. Because of the dispute, responsibility for those common areas has never officially been assumed by the OPA, but now there may be a way for the OPA to get around the original developer’s refusal to sign off and take control anyway. Attorney Joe Moore said the OPA, working with representatives from the Pointe’s homeowners association and their attorney, can ask the court system for a declaratory judgment turning over the common areas to the OPA. He addressed the OPA Board of Directors during its March 18 regular monthly meeting. The dispute, which began over the developer’s insistence that property owners have individual mailboxes instead of cluster boxes like those located through the rest of Ocean Pines, has dragged on since at least 2002. Still irked by the OPA’s instance that all sections have cluster boxes, including the upscale Point subdivision, the original developer, David Meinhardt of Bankers Development LLC, refused numerous requests over the years from the OPA to

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April - Early May 2014

From Page 16 is the potential for unpaid mortgages on the roads and open spaces in the Point. “We would be buying property possibly encumbered by the remnants of Mr. Meinhardt’s development corporation,” Moore said. He can determine what liens, if any, are held against the subject properties and talk with the lien holders about executing partial releases. He said no one will foreclose on roads, opens spaces and drainage because they are not developable and therefore have no real value to developer interests. During the meeting, representatives from the Point homeowners association were asked to comment on the situation with the turnover agreement. “It was as much of a surprise to us as it was to anyone” that the turnover agreement had never been signed, said Kathy Brennan, president of the association, adding that the current situation is “just not acceptable.” Brennan said the Point association tried many times to get Meinhardt to sign a turnover agreement but has also not been able to get his cooperation. It has retained attorney Pete Crosby to work with Moore toward a resolution. Director Jack Collins asked Moore if there is a “downside by doing nothing” to correct the problem in the Point. Moore said the downside of doing so is that the streets, outlots and drainage are all in the name of Bankers Development LLC. While they are not in danger of being in tax sales or foreclosure

Split vote stalls advisory committee reappointments By ROTA L. KNOTT Contributing Writer n a split vote on March 19, the Board of Directors once again opted not to extend the terms of members of an Ocean Pines Association advisory committee beyond the six year limit imposed by resolution. The six directors on hand for the meeting were divided 3-3 on the issue, with Jack Collins, Bill Cordwell and Sharyn O’Hare in favor and Tom Terry, Jeff Knepper and Teri Mohr opposed. But the topic could come up again if Director Marty Clarke, who missed the March 19 meeting to attend a funeral, asks that it be reconsidered and a board majority agrees. He then would be a position to cast a deciding vote in favor of the reappointments. Clarke, board liaison to the Com-

because they have a zero assessment, if someone were to try to reform Bankers Development LLC they “could have an issue.” He said finding a resolution is “more a preemptive avoidance of any future problems” and that is because there is no turnover agreement. “It’s an incomplete thing.” Director Sharyn O’Hare offered a motion to allow Moore to move forward with the process, starting with determining the status of any liens on the common areas in the Point. It passed with no dissent.

Every year in the United States, about

munications Committee, requested an extension of the terms for three sitting members of that committee because their terms had expired due to an association error; the terms listed on the association’s master committee list for those members were incorrect, and no one in the OPA discovered the problem until it was too late to correct. Under Clarke’s proposal the committee members extended terms would have been short and staggered, with Don Clagett adding seven months, Don LaFond nine months and Margaret Long 11 months. However, instead of reappointing the timed-out members, the board ultimately just confirmed the committee membership of Chairman Bernie Flax and members Elaine Brady, Bill Straka and Suzanne Brooke. OPA President Tom Terry lobbied for the term extension saying it would provide for a “transition period” so some seasoned members would remain to help build up the committee. He said he does not take extending the terms lightly but added that “at the same time she (Flax) has to have somebody to work with. We accidentally allowed this to happen so we need to fix it,” he said. While O’Hare argued for the reappointments on Clarke’s behalf saying there are “just not enough members” on the committee, opponents said four members is more than enough for now and others can be added in the future. Thus, the stalemate. Clearly irritated that the board

wouldn’t make such an exception for a member of the Environment and Natural Assets Advisory Committee two years ago when she suggested it, Director Terri Mohr brought up “the Dave Blazer incident.” In 2012 the board opted not to extend the appointment of Blazer to that committee beyond the six years of continuous service currently mandated by OPA resolution. Although she was absent from the meeting when that proposal was discussed, it was Mohr who asked that Blazer’s term be extended for a period not to exceed two years. Her motion failed to garner any support among the other six board members and was unanimously defeated when put to a vote. At that time, directors said that extending Blazer’s term would set a precedent for similar requests from other members of the OPA’s advisory committees, and that it would be difficult to determine when it is a good idea to extend someone’s term and when it is not. OPA General Manager Bob Thompson said that even after their terms expire, former committee members can attend each meeting and offer comments; then after one year they can then be reappointed if a seat is available. “I don’t think the action has ever been taken to extend terms,” he said. Mohr said if the OPA is going to continually “run into this problem,” then it needs to make an overall policy decision to “either do it or get it out of here,” referring to the enabling resolution.

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Terry releases document detailing his interviews with prospective golf course tenants The memo below is in response to a request from Ocean Pines Association Director Jack Collins that OPA President Tom Terry provide an overview of the current golf situation in Ocean Pines and possibilities related to leasing out the Ocean Pines golf course. Terry released the document, which contains detailed information from interviews conducted with parties interested in leasing the course, to the Progress. Background: Approximately three and a half years ago, the OPA decided to outsource the management of our golf operations. This decision was in recognition of the need to achieve better financial performance, reducing operating losses and, over time, achieving breakeven, or slightly profitable operations. The selection of Casper was based, in part, on their demonstrated ability to successfully market to a wide geographic area (“outside play”), to improve financial performance. During the first quarter of Casper’s initial fiscal year, the financial results improved dramatically over the prior year, due to significant increases in revenue (23 percent), both from outside play (34 percent) and from Ocean Pines play (12 percent). Unfortunately, soon after, in major part, the greens were a victim to an environmental event. To evaluate the condition of the greens and to identify solutions to the problem, Dr. Hummel, a well-respected agronomist from New York, was retained. The USGA was also hired to conduct a separate evaluation. The conclusion of both was that the condition of the 40+ year old greens was very poor and subject to future severe damage from weather conditions, as a result of the deterioration of the sub-surface drainage infrastructure and soil conditions. Their recommendations were to undertake a long-term solution and replace all 18 greens. It is argued still by some, as to what happened and what level of response was needed. The Board of Directors made the decision to address the sustainability of the greens on the course. This work on the greens placed our course into, in essence, being a ninehole course. This caused a significant decrease in rounds played and revenue, resulting in much greater-than-budgeted operating losses. FY 2013 was the most dramatically impacted period, as revenue declined 17 percent from the prior year and the operating loss nearly doubled to $537,000. The operational budget, developed by Casper Golf, failed to recognize the extent of the fallout from the course problems and the budgeted loss was significantly understated. Unfortunately, the original budget was later reaffirmed by Casper at a spe-

cial meeting. These budgetary errors did not provide the Board with an opportunity to take different action to mitigate losses. The course remained open and stumbled into a loss of $537,000 dollars. If that loss had been avoided, due to adjustments the OPA might have made, closing the course during work or other adjustments that might have been made, the OPA would not see this level of spirit against the course. The concern over these losses is real and relevant. The loss of money caused great concern in the community and very recently saw the rise of an effort to address the golf financial issues. I was approached by (Ocean Pines resident) Marvin Steen and asked if I would be willing to discuss one of the options to address the issue. That approach was to lease out the course. I said I would be open to the idea. Marvin stated he had a contact who might be interested. I said I would contact them and see what they had to offer. Subsequent to my conversation with Marvin, I had communications from (OPA Director) Marty Clarke who stated he had other interested leasing individuals/companies as well. These possibilities included companies in the golf business and individuals with some financial backing who might want to re-enter the golf business as well as one individual local professional. All four of these interested parties were contacted. Three of them, from the initial contact calls, presented solid interest in learning more about the opportunity. The fourth was a single person with no apparent financial backing and was mostly interested in getting the Head Professional’s job at our course. Mission: Hold discussions with these interested parties to see what they wanted to offer. That effort was done through initial contact calls and subsequent forty five minute to one hour long discussions with three of the four parties. There also were follow up communications with them post the discussions. The results of these discussions are summarized below. These summaries of the discussions do not contain all that was discussed nor were the discussions taped. They simply provide the essence of the discussions. Names are currently being withheld …

Discussions: One of the discussions was face to face and two were via conference call. One of the parties was a local company who owns courses in the area. One was a golf company who mostly provides golf course management but did show course leasing as one of the products. The third was an individual with a history in the golf business with a financial partner. The interesting thing about all three of the interviews was their knowledge of our course and its history in OPA. Each had either run our course, consulted on our course, or were currently competing with our course. Each of the discussions involved us sharing information on the recent large investment we had made improving the course (the greens project) and our continued interest to maintain the course and keep it available to our organization. In addition, we shared the story of the financial impact the work on the course had caused and our belief that with the course returning to 18 holes with new greens, etc. we were in a position to again reclaim the usage trend that had been achieved when Casper was first brought on board. There was no way to avoid sharing the financial history of the course. Not only would it have been incorrect to do so; all three had knowledge of the course we could not deny. Party A: The face to face discussion started with the representative saying they do not lease courses as a part of their business model; but was open to hear what we had to offer. Their primary business was being the owner of and/or managing courses. We moved on in the conversation with us presenting that our course could be used to round out their current course mixture. Our course would add a new course to their local mix and could be packaged for skilled golfers coming to the area as well as groups wanting an outing. They could also utilize economies of scale in staffing we could not achieve alone. Inevitably, the discussion turned to the financial history. This history did not contain itself to just recent years. The financial troubles of our course have been trumpeted in our media for many years in many ways. The meeting closed with the representative going back to his company for discussions.

There was a follow up call placed to the representative to first assure he had been given access to any data he wanted. He stated he had all he needed. They were not ready to make a proposal but wanted to keep the door open for us to come back once we had a chance to demonstrate a reversal of our financial trends. The door was kept open for future discussion. Party B: A conference call was held with the primary individual. He shared his background not only with the OPA course but also the development of other local courses. He knew our market well, but had been out of the direct golf business for many years. He stated he might have interest in re-inserting himself and his partner back into the business. He stated he had a strong ability as a turnaround business person. He stated he loved Ocean Pines. The discussion started with his memory of the golf experience at the OPA course as not being conducive to a positive golf experience. More currently, he was also aware that many of our members have left to play and become members of other local courses. All of these environmental impacts would need to be addressed by anyone leasing the course. He stated he would have to do a better job, and the big question was - can he make a profit. This, of course, led us to the inevitable discussion of the financial history. The call ended with him promising to look at the numbers. There was a follow-up call with him to assure he had the information he needed. He stated he had studied the numbers and talked to his partner. They wanted to be insulated from losses for at least the first year, and we would need to commit to improving the Country Club building and facilities to be in a position to better compete with the higher end courses in the area. We discussed the recent commitment of the community to its facilities in the approval of the Yacht Club and its cost which we were currently addressing. I asked if we could keep the door open for future discussion once we had turned our financial trends around and we had made a final decision on what actions might be taken with the Country Club and golf facilities (i.e. cart barn etc.). He agreed he wanted to stay in touch on an ongoing basis to keep the leasing option open in the future. Party C: This discussion started with the representative stating he had done consulting for the OPA course in the past. He also stated, from his view, most of his recommendations had not been followed. However, he had not been in the Pines for the last five years. He stated the golf industry economy was very hard right now. He shared examples of communities who had tried to lease their courses with no luck. Like Party B he also referenced the environment of the golf experience at the OPA course. He stated he was aware of the marketplace in the Ocean City area To Page 21

22 Ocean Pines PROGRESS Terry golf memo

OCEAN PINES

April - Early May 2014

From Page 21 with the multiple competing courses. The discussion moved to our ﬁnancial record with similar results. In the interview, he did share an interesting bit of data which linked to the follow-up emails that came after the call. He stated that 9 percent of the population of the USA play golf, but 30 percent live in communities with golf courses. There is a clear advantage to homeowners in “golf communities”. We again kept the door open for future discussion, but the representative spent most of the time on the call telling us how poor the golf industry was right now and how hard investment was for golf courses. In a follow-up email, the representative sent us a story of a community in Arizona where they had passed the equivalent of a referendum to keep their course open by raising the dues 20 percent. All three of these parties came to the discussions with interest. None of them closed the door on the possibility, and neither did we. Unfortunately, when you have three out of three saying our ﬁnancials could be a barrier, and/or the reference to the poor condition of the golf industry, the ability of our OPA to approach a leasing option right now is not easy. Further, this is the beginning of the golf season and by announcing we would be trying to get out of the direct golf business, we would have a negative impact on golf bookings. The action to

lease our course should be positioned for another time. While a lack of performance on the part of Casper, if that happens, will not correct our financial trends as noted above, we can prepare for the future. As a part of our strategy, we would continue the discussions with the interested parties above to better prepare them and us for acting on a leasing option. These parties clearly came to the discussions to find out what might be available. This would be the action of any smart business person (let’s take some time to take a look). They did that. Like any reasonable party it is proposed that the OPA keep these lines of communication open to build a solid alternative. The lengthy conversations with the parties further studying our numbers along with follow-ups among us, was a good faith effort from all. Along with building leasing options, right now we need to be focused on this amenity’s coming season. The good news is that FY 2014, after 10 months of actual results, is expected to have an operating loss of approximately $237,000, a decrease of $300,000 (56%) from FY 2013. This financial improvement is scheduled to continue in the FY 2015 Budget; which calls for a further significant decrease in operating loss to $73,000. Direction: While we attend to the current season, we must continue to build a positive alternative should our golf usage not return to trends that could lead to us having a much improved financial story. Tom Terry, President, OPA

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April - Early May 2014 Ocean Pines PROGRESS From Page 3 ny’s exit from Ocean Pines if it fails to meet its budget. Steen said that Terry indicated in the meeting that he thought there was a “50-50 chance” that Casper will decide not to accept an extension with that the provision. Terry, however, declined to discuss his meeting with Steen and said only that he stood by comments he made in the summary he released March 19. The take-away from the memo is that neither the OPA nor the interested parties were closing the door on a lease arrangement. At the same time, the memo set out some practical difficulties in securing a lease arrangement when three of the four interested parties “said out financials could be a barrier” and that the golf industry nationally is in “poor condition.” Terry’s memo said that “the ability of the OPA to approach a leasing option right now is not easy.” He also wrote that the spring golf season is beginning and “by announcing we would be trying to get out of the direct golf business, we would have a negative impact on golf bookings.” The memo said action “to lease our course should be positioned for another time,” presumably with the fall as the more optimal time. But because a contract renewal with BCG had not been secured as of early April, by the time this edition of the Progress went to print, it is at least conceivable that

“another time” might arrive sooner than seemed possible even a month ago. The OPA president made it clear in his memo that he is opposed to launching a very public RFP (request for proposal) to find a party to lease the golf course. “To enter into a very public RFP process right now would give the incorrect appearance we were trying to get out of the golf business just as the season was beginning,” he wrote. OPA Director Marty Clarke has favored such a RFP initiative, and he had intended to offer a motion calling for one at the board’s March 19 regular monthly meeting. It turned out he didn’t attend that meeting, but he said later that had he been there to offer a motion for an RFP, he doubt it would even have received a second. Terry said of the four parties he interviewed, two stand out as excellent fits for Ocean Pines. These latest developments in the Ocean Pines golf situation deviate somewhat from the impression given by board discussion at a March 5 work session, in which a super majority of directors signaled their lack of interest in leasing out the course this summer. Terry himself fed that perception by telling his colleagues that the interest of prospective tenants waned once they learned of golf’s financial performance in Ocean Pines in recent years.

Clarke doesn’t act on previous plan to invite golf course lease proposals Director says OPA hasn’t made a good faith effort to pursue golf lease option By TOMSTAUSS Publisher hen a super majority of Ocean Pines directors in a work session March 5 indicated a preference for continuing to run the Ocean Pines golf course as it has for the last three years, through Billy Casper Golf,

Director Marty Clarke was alone in his insistence that the Ocean Pines Association should aggressively pursue the lease option and not renew the Casper management contract. He told his colleagues that he planned to offer a motion at the board’s March 19 regular meeting that would have required the OPA to draft a Request for Proposal (RFP) inviting golf course management companies to submit proposals to lease the course from the OPA, with the purpose of relieving

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24 Ocean Pines PROGRESS

OCEAN PINES

meeting. I actually thought that we, the board, might be provided with a couple of alternatives from which to make an educated decision. Apparently, if Sharyn is correct, this has already happened.” It was in the Dec. 5 work session that a board majority indicated disinterest in a lease option in the immediate future. Some directors said it could be pursued at a later time. But as is customary at work sessions, no vote was taken on the matter. The Casper contract extension was not raised at all during the board’s March 19 regular meeting. Clarke said the old contract indicated that a renewal was supposed to have been executed by Jan. 30. Driving Clark’s push for an immediate lease option is his assessment that golf operations have not fared well fi-

nancially during BCG’s three years of operating the Ocean Pines golf course for the OPA. He cited a missed budget in the first year of 231 percent, 235 percent in year two and 58 percent in year three, if the latest estimated loss of $237,000 holds. Clarke doesn’t think it will, suggesting that if the 2013 financial performance for March and April is repeated this year, then the loss this year will exceed $400,000 . In 2013, the loss was more than $100,000 in March and about $80,000 in April. March numbers had not been released by the time this edition of the Progress went to print. Clarke also said in his email to Terry that under BCG golf membership has declined by 40 percent on Casper’s watch.

Yacht Club opening

that appears on the Gant chart. “Does anybody really believe that?” Clarke said. “Originally, the building was going to be ready for a New Year’s Eve party and that didn’t happen. If we can blow through the April 22 date, then why should I believe that the May prediction will turn out to be any more accurate?” Clarke declined to state that he believes the building won’t be ready by scheduled events in May. “I simply don’t know,” he said. “I hope so.”

April - Early May 2014

Clarke golf proposal From Page 23 Ocean Pines property owners of costs related to subsidizing persistent operating losses and related expenditures at Ocean Pines’ 18-hole Robert Trent Jones golf course. Because of timing and other concerns, directors pushed back against the proposed RFP, and its defeat seemed virtually assured had Clarke presented it for a vote at the board’s March 19 regular meeting. Only Director Jack Collins seemed interested in joining Clarke to pursue the lease option, and he, too, told the Progress that he had concerns about launching an effort to solicit proposals through the RFP process this close to the launch of another season of golf. As it turned out Clarke did not attend the March 19 meeting, having decided instead to attend the funeral of former OPA Food and Beverage Manager Pudge Ruppert, who had died the previous week from a heart attack that both shocked and saddened the OPA director. But Clarke told the Progress that even if he had been at the meeting to present his motion, he was sure it would have gone down to defeat. “I don’t think it even would have gotten a second,” he said. While a board majority during its March work session seemed resigned to the idea of renewing a contract with BCG, later Terry seemed to be suggest-

ing that a lease arrangement might be still be on the table at some point should the OPA and BCG be unable to reach a mutually acceptable contract extension. [See separate story in this edition of the Progress for details.] Clarke told the Progress that he is not pleased with the way in which the OPA president has handled the leasing option, criticizing Terry for earlier comments that seemed to suggest that there was little or no interest in that possibility. “That’s a misleading statement, at best,” he said. “There was plenty of interest early on and there continues to be.” He said he doesn’t believe the OPA president made a “good faith effort” to pursue a lease arrangement. “I know for a fact that at least two of the four potential companies to date are extremely interested in leasing our golf course,” Clarke said. Clarke said he has not been informed of any possibility that the BCG and the OPA won’t agree to a contract extension. “If you are really going to release an honest appraisal of the golf situation to our membership, perhaps you should tell them that the agreement with BCG is going to be extended,” Clarke wrote in some recent e-mail to Terry. Clarke said that according to Director Sharyn O’Hare in a recent telephone conversation, “the board has made up its mind. Silly old me, I don’t even remember the motion, the second or the vote. Hell, I don’t even remember the

From Page 1 ed a more skeptical stance, telling the Progress that the so-called Gant chart, a schedule of when various project components are supposed to be completed, has been running behind schedule on a number of items. In a conversation with Thompson sometime around the middle of March, Clarke said he was told that the facility would receive its certificate of occupancy on April 22, which apparently is the date

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April - Early May 2014 Ocean Pines PROGRESS

B&F Committee to recommend curb on board spending authority By TOM STAUSS Publisher fter spending much of the past year grappling with ways to either coax or coerce the Ocean Pines Association Board of Directors to cede some of its spending authority over big ticket project spending, the Budget and Finance Advisory Committee may have come up with a way to persuade the board to do so voluntarily. Billed as a compromise solution to an issue that has vexed the committee for some time, former committee chair and current member Dennis Hudson during the panel’s March 21 monthly meeting suggested that the committee draft a letter to the board that would ask the directors to adopt a new resolution, or amend an existing one, that would impose a new restriction on the board for spending in the $1 million to $1.6 million range. The new requirement, as conceived by Hudson, would ask that the board agree not to spend money or approve any project in that range without a super-majority of five directors. Any spending above $1.6 million, which is roughly 20 percent of the revenue collected in annual OPA lot assessments, would continue to require a majority approval of property owners voting in a community-wide referendum. The change would not require any

change in OPA bylaws but instead could be effected by a board vote amending an existing board resolution, or perhaps adopting a new resolution, Hudson told the Progress following the March 21 meeting. The committee members in attendance voted unanimously to authorize Hudson to draft a letter explaining what would amount to a voluntary curb for consideration at the committee’s April meeting. After any word-smithing, the letter recommending the policy change would be forwarded to the board of directors for consideration. Discussion of ways to curb board authority was raised by Hudson during the committee’s March 21 meeting, who cited the issue as one that he had dealt with as committee chair this past year without a satisfactory resolution. This past July, the committee had voted 6-0 with two abstentions to forward a recommendation to the board calling for a reduction in the board’s spending authority from 20 to ten percent of annual assessment revenues, with any project spending over 10 percent requiring a community-wide referendum. The change would have required a referendum of property owners to amend OPA bylaws, with the board taking the initiative to conduct the vote. No formal recommendation to that effect ever went to the board for dis-

cussion or a vote, with Hudson saying that informal discussions with certain directors led him to conclude that a board majority would not endorse a curb in its spending authority from 20 to 10 percent of annual assessments. The ten percent number is roughly $800,000. At the March 21 meeting, Hudson said he had been encouraged by Ocean Pines residents in recent weeks to keep the issue alive. Initially, he said he was not inclined to offer any motion to do so when prompted by his colleagues, but later in the discussion he offered what he said was a “compromise” that could attract a board majority. In a conversation with a Progress reporter after the meeting, Hudson acknowledged that amending an existing board resolution did not have the “teeth” of a change in the bylaws but that a voluntary curb through a resolution was better than no curb at all. He seemed disinclined to head up a petition drive that could result in forcing the board to hold a referendum on a bylaws change. “I don’t have time for that,” he said. He acknowledged that any future board absent a bylaws change could simply vote to change its resolution restoring the status quo ante with respect to board spending. But again he said his proposed compromise is better than doing nothing at all. During committee discussion, mem-

ber John O’Connor recapped the reason the committee had voted last year to recommend a reduction in the board’s spending authority, citing board action to approve the Sports Core pool enclosure back in 2006 and 2007 and a more recent offer to purchase the Pine Shore Golf property north of Ocean Pines. He said alternatives to a simple reduction in the spending threshold from 20 to 10 percent would be “too complex” to get through the board, and that he will be “long gone” before a board majority would support that approach. He also said he was not in favor of the OPA collecting large amounts of money to be parked in reserves. “I don’t like giving pools of money to politicians” to spend, he said. Stupik, in contrast, seemed more reluctant to impose limits on board spending authority. “I struggle with spending limits,” she told her committee member. Hudson’s compromise seems more likely to capture board majority support in much the same way it seemed to bring contrasting views on the committee into a rough consensus. “We don’t need to change the bylaws,” he said. “That will go a long way” toward helping to convince a board majority to support his compromise. The compromise represents a bow to To Page 28

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April - Early May 2014

April - Early May 2014 Ocean Pines PROGRESS

28 Ocean Pines PROGRESS

OCEAN PINES

April - Early May 2014

Sandpiper contract talks continue; another extension looms By TOM STAUSS Publisher s a mid-April deadline loomed for an extension of Sandpiper Energy’s contract with the Ocean Pines Association that allows it to provide propane and natural gas services to Ocean Pines, attorneys for Sandpiper and the OPA will be unable to complete a draft agreement that can be approved prior to the deadline. According to OPA President Tom Terry, the solution will be a 60-day extension of the contract, compared to the two previous six-month extensions. The original contract expired on April 13 of last year. At an OPA Board of Directors meeting April 9, the board conceptually approved the short-term extension. While Terry offered little detail on

the record of what the OPA hopes to achieve as negotiations continue, it’s been clear for some time that the OPA wants a better deal on rates for Ocean Pines customers than that which is provided for in a rate package for the entire county approved by the Maryland Public Service Commission last year. It’s not clear whether the OPA has any standing in which to negotiate a better deal for Ocean Pines ratepayers, but it won’t be for lack of trying. The directors hired Salisbury-based attorney, Steven Smethurst, last year to represent the OPA in talks to extend the company’s existing contract to provide propane and natural gas services in Ocean Pines. During discussion of the Sandpiper contract at General Manager Bob Thomp-

son’s town meeting in October of last year, a number of details of what the OPA hopes to obtain in negotiations emerged. Thompson told property owners who assembled for the town meeting that one objective the OPA hopes to achieve is a commitment by Sandpiper to have a full-time company employee on staff in Ocean Pines to handle issues with the natural gas conversion, once it begins in earnest. There is still no indication when natural gas roll-out will begin in Ocean Pines, Thompson said. “We don’t know their conversion plans,” he said, alluding to speculation that nearby Berlin might be targeted before Ocean Pines for natural gas. Because of the blended rate structure approved for Worcester County by the

Maryland Public Service Commission, neither community would benefit in lower rates from being first in the rollout. That, at least, is the common understanding that may be tested in negotiations. Thompson said that the OPA may ask that Sandpiper provide free natural gas to the Sports Core swimming pool. That idea, and others have been suggested in emails or other communications to OPA officials in recent weeks, Thompson said, and he encouraged residents to continue to come up with ideas that the OPA could present to Sandpiper executives during contract talks. Smethurst was asked to research whether it is possible for the OPA to negotiate a rate structure for residents lower than that approved by the PSC.

Spending authority

and other issues was beginning to wane. The former director is now a resident of Florida, and he’s leased out his Ocean Pines home to a long-term renter. The board’s former liaison to the committee, Director Terri Mohr, had said she would forward the committee’s recommendation to the board of directors for consideration at its regular September meeting. But that did not happen, either. Mohr was subsequently replaced as committee liaison by OPA Director and Treasurer Bill Cordwell, who has expressed some skepticism about curbs on board spending authority. Mohr, the former OPA treasurer, has never said publicly during committee meetings whether she favors or opposes the recommendation to curb spending authority, or if she would vote to let property owners decide the issue in a referendum. OPA Director Jack Collins, during the March 21 committee meeting, said had the committee’s earlier recommendation been forwarded to the board for consideration, the issue of whether to take the issue to referendum would have been decided in a 4-3 vote. He didn’t say which way he thought the vote would go, but he said he had a “problem” with deciding such an important question by a slim majority.

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From Page 25 political reality. Hudson told the Progress in a subsequent phone call that he thought that former board member Dan Stachurski, who resigned from the board earlier this year, was going to carry the committee’s water on a referendum to change the spending threshold from 20 to 10 percent. That never happened. Stachurski told the Progress in an August telephone interview that he was willing to take the issue to referendum, in a somewhat different form than that proposed by the budget committee. Stachurski said that rather than reducing the threshold to ten percent of the annual assessment, he would favor a referendum allowing property owners to establish an upward limit on board spending authority at $1 million per project. At current assessment rates, a $1 million threshold would allow the board to spend roughly $200,000 more than the $800,000 allowed under the committee proposal. By the latter portion of last year, it was becoming increasingly clear that Stachurski’s interest in pushing this

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OCEAN PINES

April - Early May 2014 Ocean Pines PROGRESS

Second candidate announces bid for seat on OPA board of directors By TOM STAUSS Publisher ust as the Ocean Pines Association’s search committee announces what an OPA press release calls an “informative” public meeting on the functions of the committee, qualifications for candidates the committee searches for, board responsibilities and “input from attendees about finding interested candidates,” a second Ocean Pines candidate has emerged without much assistance or prompting, if any, from the search committee. This year’s board of directors election will fill two vacancies created by the expiring terms of Terri Mohr and Jeff Knepper, the latter of whom replaced Dan Stachurski, who resigned from the board early this year. Knepper has already announced his intention to seek a three-year term in his own right. He made that disclosure at the same time as his appointment to fill Stachurski’s seat, weeks if not months before the search committee was up and running. Mohr has told acquaintances that she won’t be running for reelection this summer. The second Ocean Pines property owner to announce his intentions to

Pat Renaud announces intentions to run, joining Knepper; former director Dave Stevens is still considering seek a board seat is Pat Renaud, who said he’s been considering a board candidacy for some time. What “tipped the balance” in favor of running, he said, was the letter published in the March-Early April edition of the Progress by local builder and Ocean Pines property owner and resident Marvin Steen, under the umbrella of COPE (Citizens for Ocean Pines Equity). Renaud said he agrees there needs to be a community dialogue on whether the OPA should be in the golf business or the restaurant business, topics covered in the COPE letter. Renaud said he agrees with the thrust of the COPE letter that a way needs to be found to run the golf course more economically, and that includes a thorough pursuit of a lease alternative. He said if that effort fails, he would favor a referendum on the question of whether the OPA should remain in the golf business. He said he had not yet made up his mind on whether there would be any circumstance in which he would close down the golf course, and turn it into a park.

He said the biggest issue facing Ocean Pines is food and beverage management at the new Yacht Club, which he said will need to get off to a good start with quality food and consistent service if it is to succeed as a restaurant option for Ocean Pines residents. He said the need for an OPA-operated restaurant isn’t as acute as it was 40-plus years ago when Ocean Pines was first developed. Since then, he said, there are many excellent restaurant choices in the area, managed by professional restaurateurs with a track record of success. He recalled an experience at the Yacht Club this past year in which he was part of eight individuals seated at two tables. One was served and presented with a check even before the second one was served, he said. He said he’s worried that many of the same individuals who were responsible for inconsistent service last summer will be around again when the new amenity opens. He said if his fears are borne out by actual experiences once the new facility

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is open, he will be ready to advocate for the OPA opting to lease it out to an experienced restaurateur. “I’m willing to give the new chef a chance to make it work this summer,” he said. The candidate said that he supports efforts to control the community’s goose population but said he believes it can be done in a non-lethal manner, which is the current stance of the OPA board. Renaud is a retired federal government and private sector consultant who specialized in employee benefit management. His resume included stints with Bethlehem Steel, Rockwell International, Baltimore County and Prince George’s County in addition to the federal government. In the meantime, former OPA director Dave Stevens said he has not decided to seek another board term this summer after retiring from the board last summer. He’s assumed the presidency of the Mid Atlantic Symphony and told the Progress that he didn’t think he could do both jobs successfully. He said he didn’t know when he’d be making up his mind on whether to seek another term on the board.

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30 Ocean Pines PROGRESS

OCEAN PINES

April - Early May 2014

Search panel at work under new resolution

OPA FINANCES

OPA records eighth straight positive operating variance

Clarke says the golf deficit might exceed $400,000 this year because, through February, it already is in excess of $235,000 and March and April last year produced a loss of more than $180,000 By TOM STAUSS Publisher he Ocean Pines Association’s financial report for February, ten months into the 2013-14 fiscal year, showed another positive operating fund variance, the eighth consecutive

month the OPA has performed better than original budget forecasts. ecause the OPA budgeted for a break-even operational bottom line for the year, the cumulative variance at the end of 12 months will translate into the OPA’s operational sur-

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plus or deficit at the end of the year on April 30. At the ten-month mark, it would appear virtually assured that the OPA will generate an operational surplus for the year, even while certain departments, notably golf and aquatics, are substantially off budget. General administration, compliance and permits, fire and ambulance, police and recreation are on a path to performing better than expected relative to budget by substantial margins. February’s operating variance to budget was $25,812. Revenues were under budget by $16,363, but total expenses were under budget by $42,175. That result adds to the cumulative surplus for the year. According to the financial summary for February prepared by OPA Controller Art Carmine and distributed to the Board of Directors in mid-March, the variance to budget through Feb. 28 of this year is a positive $145,079, compared to the Jan. 30 variance of $119,268, up from the cumulative surplus of $96,105 recorded through December and November’s $78,768.

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By ROTA KNOTT Contributing Writer he Board of Directors on March 19 finally approved resolution M-09 establishing guidelines for the Search Committee that solicits candidates to run for the Ocean Pines Association’s governing body. During a lengthy discussion in February, OPA President Tom Terry expressed concern that since the Search Committee is required to hold meetings that are open to the public, names of property owners who are being solicited to run for the board or who have expressed interest in doing so would be mentioned during those meetings, before anyone officially becomes a candidate. Terry regarded it as a potential violation of personal privacy. His comments suggested that M-09 still needed work before he considered ready for final approval by the board. The Search Committee resolution has been in the review process for almost two years. During that time, there was no official resolution in place that governed the committee’s responsibilities, and the occasional issue arose. The Search Committee replaced the OPA’s old Nominating Committee. While the Nominating Committee was charged with actually vetting candidates and recommending a slate, the Search Committee does not have that responsibility. Any property owner can file for election; the Search Committee’s job is to encourage property owners to do so. The resolution passed in March states that the search committee is not authorized to release any application, potential candidate or candidate information to the public or media. It says the OPA secretary will notify applicants of acceptance or rejection as a candidate prior to the public release of the candidate slate no later than June 1. With a plan of attack now in place, the committee is getting to work. It will hold a meeting for anyone interested in running for the board this year and other property owners on Tuesday, April 15, at 6:30 p.m. at the Ocean Pines Community Center in the Assateague Room. Topics will be the purpose of the committee, qualifications for candidates, responsibilities of OPA board members, and public input about finding interested candidates. The committee is seeking a minimum of four candidates to run for the board in the 2014 election. To be eligible a candidate must be the owner of record of property in Ocean Pines as of Jan. 1, 2014, eligible to vote as of May 15 and have completed and submitted an application to the Search Committee or Administration Office by 5 p.m. on May 10. An application is available at www. oceanpines.org, from any Search Committee member or the OPA Administration Office at 239 Ocean Parkway.

OCEAN PINES OPA finances From Page 30 All of the fee-based amenity departments were in deficit for February, as is expected this time of year, but golf operations managed a slight positive variance to budget as did marina operations, which are shut down for the winter but still record some financial activity. The Yacht Club, which had operations shifted temporarily over to the Country Club until early February, when they were shuttered for the winter season, produced a $1,056 negative variance to budget for the month, with an actual loss of $21,687. Through the end of February, the Yacht Club has lost $129,041 for the year, $10,449 more than the original budget forecast. Of the three major amenity departments, golf and related food and beverage operations lost the most in February, with a $53,429 actual deficit. But that beat budget forecasts by $4,563, a positive variance to budget that does little to offset the rather bleak cumulative results for the year. Through February, golf has lost $235,281 compared to budget expectations of $138,299, for a yearto-date negative variance to budget of $96,982. The $235,281 actual loss in golf is roughly equivalent to the year-end forecast issued at the year’s three-quarter mark by Carmine. March probably won’t be much of an improvement over February because of all the snow fall, although the course had some good days when temperatures soared into the 60s and low 70s. April, if the weather cooperates, might produce improvements over February and March, but it would appear that golf operations could be heading toward a loss somewhere north of $300,000 for the fiscal year. Carmine told the Progress that April bookings are up substantially year-overyear and that it’s possible that April surplus will offset whatever loss is generated in March. OPA Director Marty Clarke told the Progress he thought the golf deficit might even exceed $400,000 this year, based on actual performance in March and April of last year. He noted that the March golf deficit in 2013 was in excess of $100,000 and that April’s deficit a year ago was more than $80,000. If $180,000 in red ink is added to the $235,281 loss recorded through February, then the actual loss will be more than $400,000, “the second worst result” in the history of Ocean Pines, Clarke said. Golf had been projected to lose only $150,000 for the year, which means actual losses could be more than twice what the original budget had called for, depending on actual results in March and April. Aquatics lost $28,638 for February, $3,191 more than budget, and through February had an actual loss of $147,546 and a negative variance to budget of

April - Early May 2014 Ocean Pines PROGRESS $96,982. Tennis, marinas, Beach Club parking and Beach Club food and beverage operations are for the most part closed for the season, and Carmine’s report shows only minimal or no financial activity for them. Status of reserves – The reserve summary released as part of the February financials shows that the OPA’s allocated reserve balance stood at $3,998,678, about $500,000 less than the January balance of $4,508,280. December’s balance was $5,584,632 and November’s was $5,922,921. The balance in October stood at $6,114,039 and at $6,721,113 in September. Expenditures related to the new Yacht Club account for the steady erosion. Lot assessment dollars flow into the reserve accounts at the beginning of the new fiscal year each May, boosting re-

serve totals that then decline over the course of the fiscal year as expenditures occur. The balance in the roads reserve through Jan. 31 was $67,352, virtually unchanged from prior months. The bulkhead and waterways reserve through February stood at $723,351, compared to $730,164 in January, $857,992 in December, $899,332 in November and October’s $1,028,043 balance. The golf drainage reserve carried a $679,001 deficit through February, the future projects reserve was $60,023 in the red, and the operating recovery reserve stood at zero, changed little or not at all from the previous month. The major maintenance and replacement reserve remains as the OPA reserve most flush with earmarked assessment dollars. Its Feb. 28 balance

OPA Net Financial Operations through Feb. 28, 2014

was $3,946,999, which compared to January’s $4,444,051 balance. The $3,946,999 balance was comprised of $5,259,656 in funded depreciation (the so-called “historical” funding stream) and a $1,312,657 deficit in the five-year-plan’s revenue stream. This reserve will be substantially reduced by the end of the year as expenditures related to the new Yacht Club continue. Status of balance sheet – The February balance sheet showed operating cash in the amount of $2,074,056 and short-term investments totaling $2,041,751. In January, the balance sheet indicated $3,180,465 in operating cash, which means the OPA’s operating cash decreased by $1.1 million in one month. The OPA had $28,074,067 in total assets as of Jan. 30.

32 Ocean Pines PROGRESS

WORCESTER COUNTY

April - Early May 2014

Commissioners approve Pines’ bond resolution

n March the Worcester County Commissioners approved the sale of consolidated capital improvement bonds of a total $48.3 million to finance various improvements to the Ocean Pines water and wastewater system and renovations and additions to Snow Hill High School. The portion of the bond allocated for the Ocean Pines Service Areas improvements totals $5.3 million, while SHHS accounts for the majority of the funds at $43 million. The proposed OPSA improvements include $300,000 for pump station B wet well replacement, $800,000 for the force main replacement from Station A to the treatment plant, $400,000 for pump station A rehabilitation, $300,000 for pump station E rehabilitation, $400,000 for pump station F rehabilitation, and $400,000 for reconstruction of pump stations S and P. Proposed wastewater treatment plant facility improvements include $400,000 to repair treatment unit 3 aeration system, $400,000 for a new operations center, $150,000 for repairs to the sludge greenhouse, and $50,000 for generators at stations I and G. Water system repairs include $300,000 for blue tubing replacement. Other estimated expenses include

AROUND THE COUNTY $600,000 for engineering and other soft costs and $800,000 for project contingencies.

Worcester County bond rating improves

Worcester County’s bond rating improved after Standard and Poor’s upgraded the county to AA+, and recent reports from both Moody’s Investor Service and Fitch Ratings confirm county finances are still in good health. “During our meetings with Fitch Ratings, Standard and Poor’s and Moody’s Investor Services, they each carefully examined the county’s tax base, financial reports, recent economic trend data, as well as our debt burden and financial policies,” Finance Officer Phil Thompson said. “These ratings clearly indicate that the county continues to make prudent financial decisions during challenging economic times. The relationship and cooperation between our leadership, the staff and our community leaders is something to be very proud of.” In March 2014, Standard and Poor’s raised its rating on Worcester County’s general obligation debt one notch, from AA to AA+, based on recently im-

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$3.17 million in January, and its gross gaming revenue per unit per day was $127.83. The Casino at Ocean Downs’ January revenue increased by $241,298 or 8 percent from the same period in 2013. So far in fiscal year 2014, the Casino at Ocean Downs has generated a total of $31.16 million in slot machine revenue, with $12.23 million of that going into the education trust fund, $13.4 million to the casino operator, $2.18 million dedicated for horse racing purses, $1.71 million for local impact grants, $545,372 for racetrack facility renewal, $623,283 for Maryland Lottery and $467,462 for the small, minority and women-owned business fund. The Maryland Lottery and Gaming Control Agency announced January 2014 revenue numbers for the state’s four casinos -- Casino at Ocean Downs in Worcester County, Hollywood Casino Perryville in Cecil County, Maryland Live Casino in Anne Arundel County and Rocky Gap Casino Resort in Allegany County. January 2014’s combined statewide revenue totaled $66.2 million. In a yearto-year comparison — excluding Rocky Gap Casino Resort, which opened in May 2013, January 2014 casino revenue increased from January 2013 by $18.86 million or 43 percent.

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WORCESTER COUNTY By ROTA L. KNOTT Contributing Writer ith significant portions of Worcester County, including Ocean Pines, being downgraded as part of updates to the coastal floods maps by the Federal Emergency Management Agency, property owners now have an opportunity to appeal the designation of their land. Better known as the Flood Insurance Rate Maps, or FIRMs, they show the flood prone coastal areas in Worcester County, and insurance companies use them to determine flood insurance rates for buildings and contents. The proposed changes will affect property owners’ insurance rates. In most cases the base flood elevations on Worcester County’s maps have been reduced significantly, in some cases by several feet. However, there are areas in the county that will have an increase in base flood elevations. As a result of these map updates, some properties may be removed from a flood zone entirely, including lots in Ocean Pines, while others may, for the first time, be included in a high risk flood zone, known as the Special Flood Hazard Area, which may result in the mandatory purchase of flood insurance. The properties contained in Ocean Pines are located on maps 45 and 65 of the new FIRMs. Now FEMA has placed Worcester County and incorporated areas in a 90 day appeal period, which runs from March 14 - June 11. During this time, property owners may appeal the mapping designation of their land if they

April - Early May 2014 Ocean Pines PROGRESS

Property owners can appeal FEMA flood insurance rulings Property owners will need to supply scientific information that the preliminary FIRMs are wrong can supply scientific information that the preliminary FIRMs are incorrect. Preliminary FIRMs are available for review at www.mdfloodmaps.com. The Worcester County Commissioners are encouraging all property owners to investigate how the FIRM changes apply to their individual properties and to maintain adequate flood insurance protection regardless of the changes. “The county’s primary message continues to be to encourage Worcester County property owners to consider retaining their flood insurance coverage, even if their properties are no longer officially mapped in the flood plain once the new maps are adopted,” Commissioner President Bud Church said. “While it may be tempting to save a few hundred dollars by dropping flood insurance, the savings will pale in comparison to the thousands of dollars in potential losses caused by flooding in a major storm.” Property owners can keep their flood insurance if they already have it even if their property has been removed from the floodplain. Owners of property that has been removed from the high flood risk area will likely see a reduction in their insurance rate if they opt to keep flood insurance. Another impact of the revised maps

will be increases in flood insurance rates for second homes. Over the next four years, the rates will go up 25 percent each year and then insurance on those properties will be phased out. To file an appeal, property owners must be able to provide information to FEMA showing that the preliminary FIRMS dated July 19, 2013 are scientifically or technically incorrect. Applicable information would include hydrologic studies, hydraulic analyses and topographic or elevation information certified by a Maryland licensed Surveyor or Professional Engineer. To file an appeal, those who live in unincorporated areas of Worcester County, including Ocean Pines, must follow the forms “Worcester County Application Information for Appeal of a FEMA Preliminary Flood Insurance Rate Map” and “Criteria for Appeals of Flood Insurance Rate Maps” on the Worcester County Web site. Both the application and the FEMA publication are available under the current news section of the county’s website. Anyone who lives in the incorporated areas of Ocean City, Berlin, Snow Hill or Pocomoke City should contact their town offices for information on filing an appeal.

Appeals should be submitted first to Worcester County Development Review and Permitting for review. Following that review, the county department will assist applicants with submitting valid appeals to FEMA. For information about the FIRMs or the appeals process, contact DRP at 410-632-1200. The preliminary maps are an update of the existing FIRMs, which date back to 1979 in some locations. These preliminary FIRMs and the associated Flood Insurance Study provide the basis for flood risk education and floodplain management measures. Worcester County and towns located therein are required to adopt updated maps to continue participating in the National Flood Insurance Program, which makes flood insurance available to the community. FEMA hired a contractor to complete the flood studies using new datum and best available technology to determine base flood elevations. The result for Worcester County is that across the board these elevations are decreasing, which will result in a large number of properties being removed from the floodplain and the coastal high hazard flood area designations. That means those properties will no longer be required to carry flood insurance. The FIRMs are digitally converted flood insurance rates maps that will be compatible with GIS. FEMA claims the improvements in spatial accuracy provided by the new base map, and the availability of electronic floodplain information should greatly enhance the ability to use the maps for planning, permitting, and insurance applications.

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By ROTA L. KNOTT Contributing Writer

orcester County is planning to use $4.7 million that it has had socked away for years to help offset expenses in the proposed fiscal year 2014-15 operating budget. County Administrator Harold Higgins provided the Worcester County Commissioners with a summary of the requested operating budget during a March 19 meeting and emphasized that this is only the requested budget. He said the estimated general fund revenues based on the current tax rates are $176.4 million, which is an increase of $7.75 million or 4.5 percent more than the current year. However, Higgins said that the requested departmental general fund operating ex-

Proposed county budget tops $176 million in funding requests Commissioners plan to budget stabilization funds to help cover the gap between revenue and expenditures penditures total $184.77 million, leaving a shortfall of $8.37 million that must be reconciled by either reductions in expenditures, additional revenues or a combination of the two. A public hearing on the proposed real property tax rate decrease will be held Tuesday, May 6 at Snow Hill Middle School. The hearing is open to the public, and public testimony is encouraged.

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For the tax year beginning July 1, the estimated real property assessable base will decrease by .9 percent from $14.44 million to $14.32 million. If Worcester County maintains the current tax rate of $.77 per $100 of assessment, real property tax revenues will decrease by .9 percent resulting in a $966,667 reduction in real property tax revenues. In order to fully offset the effect of decreasing assessments, the real property tax rate could be increased to $.7768, the constant yield tax rate. The county is considering not increasing its real property tax rate enough to fully offset decreasing assessments. Instead the commissioners are considering retaining the existing tax rate of $.77 per $100 of assessment value. Higgins told the commissioners that, based on the current tax rate of 77 cents per $100 of the real property assessment, net property taxes are projected to increase by $252,584, primarily as a result of Homeowners Tax Credits and decreased property assessments. Income tax revenues are anticipated to increase by $500,000 at the current rate of 1.25 percent based on actual receipts and increased estimates. Other local taxes are expected to increase by $1.76 million primarily due to the Ocean City room tax, which is a pass-thru to the Town of Ocean City to pay the debt on the Roland E. Powell Convention Center. Funding generated by the Department of Liquor Control distribution is expected to decrease by $363,371 based on anticipated revenue reductions. Federal grants are anticipated to increase by $21,561. Licenses and permits will increase $33,000 due to an estimated boost in building permits. Interest on investments are expected to remain level at $225,000. Revenue transfers in the budget will increase by $4.73 million because the county plans to use budget stabilization funds to cover planned revenue shortfalls.

State grants have increased in the upcoming budget by $265,860 due primarily to additional funds of $644,030 for the waterway improvement grants and local impact grant funds from the Casino at Ocean Downs increased by $499,213 and are earmarked for the Worcester Career and Technical High School debt payment in FY 15. Worcester County department and agency requested expenditures increased in the proposed budget as compared to the current fiscal year. They include the following: $468,446 for other general government, primarily for building repairs; $752,041 for the Sheriff ’s Office for additional deputies and vehicles; $92,346 for the roads division for road paving; $643,684 for boat landing repairs to be offset by grant funds; $1.063 million for the Health Department largely due to the state health benefit costs for contractual employees; $130,488 for library books and computers; $250,000 for beach maintenance; $1.64 million in pass-thru room taxes to Ocean City; and $1.012 million in increased grant requests from the towns and Ocean Pines. The Board of Education’s operating budget request is $79.46 million, plus school construction debt of $11.74 million that is paid by the county on behalf of the school board, for a total county contribution of more than $91.2 million. That figure represents about 51 percent of the county’s total estimated revenue for the fiscal year. Both the county and the school system’s requested budgets reflect a proposed payroll increase of 3.5 percent. The county’s salary, insurance and benefits package reflects an increase of $3.04 million, which includes a salary hike of $845,482 and longevity bonuses for those eligible employees. Additionally insurance and benefits will increase in the requested budget by $1.23 million based on an estimated increase of 12 percent for health benefits and an increase of $717,138 for retirement contributions due to changes in the state rates. The school system’s salary package reflects a step, longevity step for those eligible Board of Education emq

34 Ocean Pines PROGRESS

WORCESTER COUNTY County budget From Page 34 ployees and a 1 percent cost of living adjustment. The salary package totals $1.91 million. It also contains a 3.4 percent increase for bus contractors, which includes an increase in the hourly rate, mileage rate and per vehicle allotment, totaling $175,000. Worcester County public schools the requested budget also contains an in starting teacher salaries from $42,222 to $42,644. Commissioner Jim Bunting said he would like the Board of Education to provide a five-year cost estimate for implementing the new Common Core standards. His fellow commissioners concurred and requested that the school system provide the information for discussion during their budget work session with the county. Commissioner Virgil Shockley expressed concern that health insurance costs have increased by $2 million for Board of Education employees and $1.2 million for county employees, equating to a 12 percent increase for FY 15. In response, Higgins said the county’s human resources office is still in the process of negotiating health insurance costs for the coming year. County Budget Officer Kathy Whited added that the Health Department has also confirmed that as a result of changes to the health care system in Maryland the county will incur a half-year expense for providing health coverage to contractual employees of that agency.

April - Early May 2014 Ocean Pines PROGRESS

Snow makes an impact on school calendar, shortens spring break for students Last day of school could be June 13 or 16, depending on fate of waiver request By ROTA L. KNOTT Contributing Writer

eeling the pinch from the plethora of snow days this winter, the Worcester County Board of Education has tweaked the school calendar to shorten spring break. The school board voted in February to change the first day of spring break, April 17, from a full vacation day to a half-day of school. Since half-days are considered full-days for the purpose of satisfying the 180-day requirement, the modification will serve to shorten the already extended school year. April 17 will be a half-day of school for students, teachers, and ten-month staff. “The winter of 2014 has been atypically cold and snowy for Worcester County,” Jerry Wilson, superintendent of schools, said. “Road and weather conditions have precipitated the close of schools for a total of nine days to date. Without additional modifications to our calendar, the school year would extend well into the third week of June.” Based on a recommendation from

Wilson, the school board had also agreed to make March 28 a half a-day of school for students. That day had been scheduled as a professional day for teachers and staff but instead half of the day was professional development and half was used to make up some of the missed school time for students. Making March 28 a half-day of school for students helped the school system recoup lost days and shorten the extended school year, Wilson said. “Because our school system far exceeds the 1,080-hour requirement for students to attend school over a 180day period, half-days are able to qualify as full-days,” said Barbara Witherow, school system spokeswoman and facilitator of the calendar development process. However, at the March 18 Board of Education meeting, Wilson also received approval from the school board to seek a waiver for three days when schools were closed and a Snow Emergency Plan was issued by the Maryland State Police and the State Highway Administration in Worcester County. During Snow Emergency Plans, only vehicles with snow tires or chains are permitted on roadways in order to help ensure safety. The

snow days for which the school system is seeking waivers are Jan. 29, March 3 and March 17. “If the State Superintendent of Schools approves our request to waive three days from the 180-day requirement,” Wilson said, “our school system will have recouped five of the nine missed days.” The last day of school is temporarily scheduled for Monday, June 16. With three inclement weather days already built onto the end of our calendar, if the waiver request is granted then the likely last day of school would be Friday, June 13, but this is not yet official. “We have to wait for waiver approval … before making the last day of school official,” Wilson said. It is unclear whether or not the Maryland State Department of Education is inclined to granted waiver requests for the three remaining snow days. In March MSDE rejected a similar request from Anne Arundel County’s school system. Instead MSDE simply told the school system to find other ways to recoup the lost school days; the state said Anne Arundel needs to make up more of the instructional time that students missed because of school closings.

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WORCESTER COUNTY

April - Early May 2014

Completing Rt. 113 remains top transportation priority By ROTA L. KNOTT Contributing Writer

idening of Route 113 from Berlin to Snow Hill remains the top local transportation priority, the Worcester County Commissioners told the Maryland Department of Transportation in a March letter to the state agency. County officials said future priority transportation projects, in no particular order, include improvements along Route 589 near Ocean Pines, widening to four lanes of Route 90 and replacement of the Harry W. Kelly Memorial Bridge on Route 50 into Ocean City. Based on a staff recommendation and the Town of Ocean City’s input, Commissioner Jim Bunting made a motion at a March 18 meeting to have county staff draft a letter to Maryland Department of Transportation for incorporation into the Consolidated Transportation Program. In that letter the commissioners stressed that the county’s continued top priority highway project is dualization of Route 113, followed by the necessary improvements on routes 589, 90 and 50. An earlier motion by Commissioner Judy Boggs to submit only the widening of Route 113 and making improvements to Route 589 as county priority projects died for lack of a second. The county contacted all of the municipalities for input on transportation priorities but only received correspondence from the Town of Ocean City. In a letter to the county, David Recor, city manager, says the town’s priority continues to be widening to four lanes of Route 90. With the right-of-way already in place, a major time consuming hurdle on such a project is a non-issue and should position the state to expedite the project.” In March of 2013, Ocean City asked the SHA to perform a project planning study for dualization of the Route 90 bridge into Ocean City. SHA told the town to talk to the county and ask that the Route 90 dualization request be included in the priority letter this spring. The Route 90 bridge is also included in the SHA’s highway needs inventory, which is a non-fiscally constrained longrange plan. Inclusion in the highway needs inventory is a required step before any project planning study can begin. The state agency said the town’s input will be kept in mind when SHA works with the Department of Transportation to develop future plans for the highways in the county. The more than 40-year-old bridge is 1.42 miles long and carries approximately 18,000 vehicles each day, with significant traffic volumes during the summer months. SHA said progress continues towards completing the planning study for a future replacement of the Route 50 bridge instead. That bridge will have a fixed span and will be higher than the existing bridge to minimize the number of openings for water vessel passage and wider to better accommodate bicyclists

Route 589 improvements, Route 90 dualization included on commissioners’ transportation wish list and pedestrians. However, Recor said recent studies and alternatives analysis have determined that the eventual replacement of the Route 50 bridge has the potential and reality of causing severe traffic congestion issues for multiple summer seasons. “Relative to long-range planning and the effects the replacement of the Route 50 bridge will have on overall accessibility to Ocean City, we truly feel it is far more prudent to complete the dualization of the entire MD90 corridor, from US50 to MD528, prior to replacement of the US50 bridge,” he said. The SHA initiated the Route 50 bridge study in order to address operational inadequacies and structural deficiencies of the bridge and improve the safety of the structure. In addition to motorists, the new bridge needs to accommodate pedestrians, fishermen and cyclists, all of whom currently share the same narrow five foot sidewalk causing potential conflicts. The bridge serves as one of three evacuation routes for emergency situations. The State Highway Administration is moving toward the design of phase 3 and 4 improvements to Route 113 between Berlin and Snow Hill, while the proposed phase 5 interchange at the intersection of Routes 113 and 12 has been placed on hold indefinitely On March 26, SHA held a public meeting to reacquaint the public with the project and review plans for those upcoming phased of the Route 113 projects. The state said about 11,500 vehicles per day travel Route 113 between Snow Hill and Berlin and that figure

are completely separate projects and are both design-build projects currently in the design process to establish right-ofway needs and obtain required federal is projected to increase to 25,000 per and state approvals. day over the next 20 years. The traffic Once SHA has completed the design counts couple with the high number of phase and secured construction funding, fatal accidents that have occurred along each project will separately procure a the highway over the years prompted team to finalize the design and construct the state to widen it to four lanes. the improvements. Work on phase 3 will By 2003, Route 113 was dualized include dualization along the east side between Pocomoke and Snow Hill and of the existing roadway while phase 4 between Berlin and the Delaware state will widen along the west side of the exline to the north. The completion of isting roadway. phases 1, 2A and 2B dualized about half Commissioner Virgil Shockley said of the 16.3 mile portion of the highways he plans to ask the commissioners to between Berlin and Snow Hill. send on a letter in support of the SHA’s We have the best The next two phases will widen the prices request to the Maryland Department of repairswith andphase sales3of cars and remaining 8-mile section, Transportation to waive the signal warincluding the stretch of highway from rant requirement for the intersection of trucks. Only 10 minutes from north of Massey Branch to north of Five Route 113 and Langmaid Road. Instead Ocean Pines on 113.he wants the state to install a traffic sigMile Branch Road and phase 4 running from File Mile Branch Road to north of nal rather than the previously proposed Public Landing Road. The two phases J-turns at that intersection in Newark.

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WORCESTER COUNTY

April - Early May 2014

Helvey self-identifies as a defender of individual liberty and property rights By SUSAN CANFORA Contributing Writer s one of four candidates running for Worcester County Commissioner in District 5, Grant Helvey has ambitious goals. Most important, though, is representing constituents by doing “what the people want me to do,” he said. “And what I hope people want are individual property rights, free enterprise for business owners, a school curriculum that leads to gainful employment,

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youth that want liberty and opportunity and elders that want to pass on liberty to live free, as they received from their forefathers,” he said. If he’s elected to the seat being vacated by longtime Commissioner Judy Boggs, he wouldn’t try to “implement a government plan for how citizens live,” but “implement a citizen plan for how government should live.” Helvey, a 72-year-old West Virginia native retired from the telephone company, is running against Ray Unger,

former Ocean Pines board member, and Chip Bertino, publisher of the Courier newspaper, in the Republican primary. The winner of that contest will face Tom Wilson, president of Diakonia’s board of directors, the lone Democrat in the race, in the November general election. The primary is June 24, and the general election is Nov. 4. The deadline to file as a party standard bearer has passed, but independents have until July to file. Pines residents are telling Helvey they want more funding from the county for the Ocean Pines Association and a new Showell Elementary School. He is interested in seeing Route 589 improved, but not in favor of the major renovation proposed by the State Highway Administration that the commissioners rejected. “The state’s plan for biking and walking trails and four lanes, that was totally unnecessary,” because he opposes taking land taken from property owners to widen the new road, he said, sitting in the second-floor office of the home he shares with his wife of 53 years, Erma. They have three children and three grandchildren. Helvey also dislikes commercial development regulations that could drive away prospective businesses. Architectural guidelines shouldn’t be so strict that a restaurant, for example, with signature building characteristics like color and facade, can’t open in Worcester County without making major changes. Sometimes, he said, the county government overreaches. “I’m business friendly because it creates a good economy. It creates jobs for the kids coming out of Stephen Decatur High School,” he said. A Pines resident since 1993, Helvey retired from Bell Atlantic as power engineering methods manager after 24 years and is now self-employed in private mortgage lending and as a real estate investor. He has been chairman of the Worcester County Tea Party, an aide to Delegate Mike McDermott and member of the Worcester County Republican Central Committee. Currently, he is a member of the Maryland Conservation Action Network, Constitutional Sheriff’s Association and an associate member of the Republican Women of Worcester County. His decision to run for commissioner is connected to real estate and property rights. “Government has a lot to say about that. I am interested in how the government affects individual property rights,” he said. He has studied the county’s and state’s land use plans and is confident he understands federal plans. Worcester’s most recent comprehensive plan, adopted in 2006, guides land use, but

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April - Early May 2014 Ocean Pines PROGRESS

Pine’eer Craft shop opens

Grant Helvey From Page 38 Helvey thinks it forces growth into concentrated areas and sets aside large areas that may not be developed. “The rights of people should be considered in land planning because it affects the economy. The government in those cases controls the economic value of personal property, and that affects free enterprise,” he said. The county hosts public hearings to hear comments on proposed comprehensive plans, but Helvey said officials “need to do a better job.” “The county should have a better way of getting broad public input instead of just having public hearings,” he said, proposing “very carefully recruiting people from all walks of life to review the plan.” They should represent a variety of interests, including agriculture, environment, business, real estate and conservation, he said. “If they don’t all agree, they can reach a consensus and the county commissioners can decide,” he said. Concerning the county budget, Helvey said most of it goes to fund education, “and yet we have about a 14 percent unemployment rate in the off season. “I’m not sure the schools are teaching skills needed because then they (gradu-

The craft and gift shop sponsored by the Pine’eer Craft Club is now open for the season. The shop is located in White Horse Park, opposite the Community Center. Local crafters place their handmade items in the shop for sale at very reasonable prices. You can find unique jewelry, handstitched items, items with shell and beachy themes, and much more. The shop is open from 10 a.m. to 4 p.m. every Saturday and Sunday. On Saturday, April 12th a special Spring Open House will be held with door prizes and refreshments. Pictured are Jackie Kollar, shop manager (left), and Luz Castillo, shop treasurer (right), in front of the shop. ates) have to leave this area. I want to see kids come here and prosper,” he said. Further, he believes county government should “push back more against the state with things that affect our people and push back when the state is infringing on rights and liberties in development and the watershed implementa-

tion plan and farmers’ nutrient level. It could hurt our farmers. There needs to be a reasonable approach that is acceptable to the agricultural industry and poultry industry. We can’t allow them to not be sensitive to our needs here,” he said. Helvey stressed he would cooperate

with fellow commissioners and continue hosting quarterly town meetings as Boggs did. But he will also, as his campaign flier states, “defend individual liberty and property rights against oppressive regulations and oppose unnecessary spending.”

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April - Early May 2014 Ocean Pines PROGRESS

General Assembly session draws to a close Wildlands preservation law affects Worcester and other Eastern Shore counties By ROTA L. KNOTT Contributing Writer s the 2014 General Assembly session came to a close on April 7, legislators were scrambling to make sure that all of the priority issues for the year were addressed. These include increasing the minimum wage, decriminalizing marijuana and setting the state’s spending priorities. Legislators passed a bill consenting to the expansion of the state’s wildlands preservation system by 50 percent in nine counties, including Worcester. The wildlands are natural areas that support ecosystems, plants, and animals. The move will permanently protect the wilderness character of 22,000 acres of sensitive state-owned lands. Governor Martin O’Malley formally proposed the legislation at the beginning of the General Assembly session in January. The last new wildlands designations were made 12 years ago and expanded the system to 29 areas in 15 counties, covering 43,779 acres. Since then, the Department of Natural Resources has acquired new properties that meet the criteria, with additional areas identified upon completion of an old growth forests inventory and mapping of high conservation forests and environmentally sensitive areas on DNR-managed lands. The final version of the bill designates new or expanded wildlands in Allegany, Baltimore, Calvert, Charles, Frederick, Garrett, Montgomery, Somerset and Worcester counties. A contentious bill in both houses of the General Assembly was SB364 that will decriminalize the possession of small amounts of marijuana. The legislation ultimately won majority approval. The legislation will alter the penalty for the use or possession of less than ten grams of marijuana and make the use or possession of less than ten grams of marijuana a civil offense. It also establishes that a person who violates the law may be issued a citation instead of being arrested. That will require a court to summon that person to appear in court if they are found to have committed a third or subsequent violation of law involving the use or possession of less than ten grams of marijuana. Finally, the bill authorizes a police officer to issue a citation for possession of a small amount of marijuana instead of arresting them. The approved Pre-Kindergarten Expansion Act of 2014 expands pre-kindergarten to more families through a competitive grant program called the Pre-kindergarten Expansion Grant Program and Fund. With $4.3 million included in the FY15 budget to help expand and start programs across the state, the legislation is expected to support half-day or full-day kindergarten for approximately 1,600 children statewide.

The legislation also builds on the state’s current pre-k program by expanding the number of pre-K slots available to include Maryland children whose families make between 185 percent and 300 percent of the federal poverty guidelines, which was $70,650 for a family of four in 2013. Additionally, the bill ensures that the long-term plan for funding provides access to pre-kindergarten for all Maryland children. Legislators voted near the close of the session to increase Maryland’s minimum wage to $10.10. Another bill provides enhanced pro-

tections for victims of domestic violence. It increases penalties for committing an act of domestic violence in front of a child; makes it easier to get a protective order by changing the standard of proof; and adds second-degree assault to crimes for which a person can obtain a final protective order. A hotly debated piece of legislation was the transgender rights bill, which provides transgender persons the ability to use bathrooms designated for the gender to which they identify. With passage of the bill, Maryland joins 17 states and the District of Columbia in banning

gender identity discrimination. One of the most pressing issues during the final weeks of the legislative session was reviewing, amending and passing Governor Martin O’Malley’s state budget. This year’s budget includes $760 million in spending cuts and includes no tax or fee increases. The budget includes $621 million in balancing actions, closes the revenue shortfall, ensures there is $795 million in the Rainy Day Fund while securing cash reserves of $879 million. It also aims to help retire the $1.7 billion structural deficit.

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42 Ocean Pines PROGRESS April - Early May 2014 FOCUS ON BUSINESS

BUSINESS

New Ocean Pines kitchen and bath showroom takes on the big boxes Shop doubles as a gallery featuring the work of panoramic photographer David Orbock of Baltimore By TOM STAUSS his showroom. He’s the local exclusive Publisher ne thing that you can say about dealer for Fabuwood Cabinetry, a New Don Fiedler, proprietor of the Jersey-based manufacturer of kitchen Newport Kitchen and Bath cabinets using solid hardwoods imported showroom that recently opened in the from China. Fabuwood is complemented at Village Square shopping center just inside the Ocean Pines South Gate: Newport Kitchen and Bath by a range He’s not in the least bit afraid of big box of countertops by Counter Intelligence, competition or the fact that the local a leading Mid-Atlantic supply house economy, while showing signs of life, is based in Silver Spring, Md. Fiedler, a local who graduated from still not as healthy as many would like. Given the competitive and economic Stephen Decatur High School in Berlin, realities, is this really the time to be has been in the building business for more than 30 years. starting a new business? He continues to own and operate Fiedler thinks so, even while he Newport Homes, a building business acknowledges that, on the surface, such a bold move might seem a bit counter- begun in 1990 in which he was partnered with Dave McAllister, who’s now retired. intuitive. Fiedler looked around extensively “I’m confident in my product and my in area for just the right place to pricing,” he said during a recent tour of 1012 OP Progress ad_Layout 1 3/18/14 11:59 AM the Page 1

The Newport Kitchen and Bath showroom in South Ocean Pines features lots of displays of cabinets and countertops for those looking to do a make-over. open his kitchen and bath showroom, deciding on the Village Square location adjacent to the popular Taylor’s Family Restaurant. He said he wanted to be within the confines of Ocean Pines because he knows that some Ocean Pines residents

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prefer the convenience of a business that doesn’t require leaving the community. He also said he decided on Ocean Pines over other options because it is the largest community in Worcester County and somewhat underserved commercially. As for why he chose kitchen and bath hardware over other product lines, Fiedler said that one is easy. “Every house has a kitchen. It’s where people spend most of their time,” he said. “It’s probably the first room in the house that people look to improve when they’re feeling better about their economic situation.” It’s conventional wisdom in the real estate business that a modern, top-ofthe-line kitchen is a feature that many new buyers will look for in a search for a new home. Fiedler said that a community that is more than 40 years old, such as Ocean Pines, will have many older homes that are in need of a kitchen and bath make over to bring them out of the 1970s and 1980s. “We’re here to help them do it,” he said. He’s well aware that people interested in updating their kitchens and bathrooms will shop the big box competition, but he believes that the Fabuwood product line in particular will grab the people who are interested in quality. “There’s no particle board in any of Fabuwood products,” he said. “Even the toe-kicks are hardwood.” But customers will be surprised by the fact that his pricing is competitive with the big-box stores. “Our least expensive value line is actually less expensive than particle board cabinets sold by the big boxes,” he said, again inviting prospective customers to comparison shop. Before opening Newport Kitchen and Bath in early February, Fiedler said he To Page 44

April - Early May 2014 Ocean Pines PROGRESS

The Sale Must Go On!

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BUSINESS

April - Early May 2014

Newport showroom From page 42 did a lot of investigating before deciding on Fabuwood cabinets. “I didn’t want to be like everyone else,” he said. “I wanted the product to be assembled in the U.S., and I wanted it to be of excellent quality.” He went to the company’s Web site, and a company rep came down to Ocean Pines with samples. The hardwood imported from China met all of his requirements, and then some. “I was sold,” he said. “It’s an import product but also American-made.” Kitchen make-overs also involve new countertops, of course, and here Fiedler offers a wide range of surfaces, from granite, silestone, quartz and soapstone to less expensive Corians and laminates. His supplier, Counter Intelligence, is about as high tech as they come. It’s the largest countertop supplier in the MidAtlantic, he said. Those who’ve replaced countertops before are used to contractors coming to a house, taking measurements and sending them out to a supply house, and then a long wait before installation occurs. Fiedler promises a much faster turna-round. The project template is emailed to Counter Intelligence’s shop in Silver

The ribboncutting for Newport Kitchen and Bath in south Ocean Pines was held in early March. Spring and the company guarantees delivery within seven days. “It’s all very high tech and precise,” he said. “I’m really glad to be partnered with this company.” He invites anyone interested in a kitchen or bath make-over to visit his shop in the Village Square, where samples of cabinets and countertops abound.

Customers will also notice an extensive collection of panoramic photography throughout the showroom, most of it for sale. It’s unusual for a bath and kitchen showroom to double as a photography studio, but Fiedler’s believes the combination works. The photography is the work product of Fiedler’s father-in-law, David Orbock

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of Baltimore, the president of the International Association of Panoramic Photographers. There are photos of landmarks from all over the world, but it’s obvious that Orbock has a special fondness for baseball parks, including Oriole Park at Camden yards, Fenway in Boston, and the home field of the Los Angeles Dodgers. “People are very impressed with his work,” Fiedler said of his father-in-law.

Hamster Ball races at White Marlin Mall

Local hamsters will be rolling their way to victory on Saturday, April 12, at the White Marlin Mall’s PetCo store in West Ocean City, said Matt Mittenthal, vice-president and assistant director of asset management at Greenberg Gibbons Commercial, the mall’s leasing and property management firm. "All are invited to register their furry friends for the 1 p.m. Hamster Ball Derby races on April 12 to earn bragging rights as the beach’s fastest hamster.” PetCo, a leading pet specialty retailer, will host its annual, and very popular, Hamster Ball Derby at all of the company’s more than 1100 locations across the country on Saturday April 12 at 1 p.m. Using hamster balls as their vehicles, hamsters and other small pets race down eight-foot tracks in heats of four en route to the finish line for a chance at derby glory. “It's heats of four, so we'll set it up, and it's just like our college basketball tournament bracket,” said Amy Connor, the manager of the Companion Animal Department at the White Marlin Mall PetCo. “So the heat of four, whoever wins will move on to a bracket, and then they'll play the winner of heat number two, and then so on and so on, and then we'll actually get our champion,” she said.

LIFESTYLES COUNTY WORCESTER Saturday, April 12 Ocean Pines Anglers Club’s monthly meeting, 9:30 a.m., Ocean Pines library. Guest speaker, Ocean Pines resident Steve Habeger, who worked for the US Navy at Wallops Island for 23 years and dealt with federal and state activities that make up the Wallops Flight Facility Complex. All welcome. Easter egg dive, Sports Core indoor pool, 11 a.m.-1 p.m. $6 per person. Spring flea market, Ocean Pines Community Center/White Horse Park, 8 am-noon. Thursday, April 17 Pine’eer Craft Club’s monthly meeting, Ocean Pines Community Center, refreshments 9:45 a.m., business meeting 10 a.m. Stuffed bear craft to follow, $3, guests welcome. Contact Sharon 410-208-3032 for information. Saturday, April 19 Easter/Spring Celebration, Horse Park, 11 a.m. to 2 p.m.

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Wednesday, April 23 Ocean Pines Association, regular meeting of the Board of Directors, 3 p.m., Ocean Pines Community Center. Saturday, April 26 & Sunday, April 27 Ocean Pines Home Show and Expo, Ocean Pines Community Center, 10 a.m.-5 p.m., Saturday; 11 a.m.-4 p.m. Sunday, booths and displays featuring home improvement contractors. Free paper shredding 10 a.m.-noon Saturday. Guests include Jeff Devlin, of DIY, speaking on “I hate my Bath” noon and 2 p.m. on Saturday; Ginny Rosenkranz, of the University of Maryland Cooperative Service, speaking on “What’s Not Dear to Deer” at 1 p.m. Saturday. Free admission. Friday, June 6 Wor-Wic Community College’s 13th annual golf tournament, Ocean Resorts Golf Club, Berlin. Registration 11 a.m., followed by lunch at noon and shotgun start 1 p.m. Dinner and awards 5:30 p.m. Proceeds benefit WorWic’s child development center. For sponsorship or player registration forms, visit the college website at www.worwic. edu or contact Paula Thomas-Shipley at (410) 334-2810. Friday, June 13 Ocean Pines Garden Club’s annual garden tour. The club is asking Ocean Pines homeowners to consider placing their garden on the tour. Large or small, cultivated or “natural,” formal or informal -- all gardens are given consideration. Homeowners will be given the opportunity to have an artist painting “plein air” in their gardens during the tour and will also be invited, as guests of the garden club, to the luncheon immediately following the tour. Those interested in placing their garden

April April--Early EarlyMay May2014 2014Ocean OceanPines PinesPROGRESS PROGRESS

HAPPENINGS on the tour or with questions about doing so, contact Marian Bickerstaff, 410-208-2508. Ongoing Pine Tappers free adult tap dance classes, Tuesdays, 2-3:30 p.m., Ocean Pines Community Center. Exercise and have fun with choreographed tap dancing routines. From 2-2:30 p.m., brush up on basic techniques and a review of the routines, then join the regular class from 2:30-3:30 p.m. Every week or drop-in as convenient. Lori at 410-251-2162 or tntandcompany@gmail. com. Ocean Pines Ping Pong Club, Ocean Pines Community Center, Monday noon to 2 p.m, Wednesday and Friday noon to 3 p.m. In the summer schedule changes to evenings. All levels of players welcome. Neil Gottesman, 732-773-1516. Suicide Grievers Support Group, 3rd Wednesday every month, 6 p.m., Worcester County Health Department, Healthway Drive, Berlin, adjacent to Atlantic General Hospital. Open to anyone who has lost a friend or loved one to suicide. Free of charge. Quiet listening, caring people, no judgment. 410-629-0164.

The Kiwanis Club of Greater Ocean Pines - Ocean City meets weekly at 8 a.m. on Wednesdays in the Ocean Pines Community Center. Doors open 7 a.m. October through April. Sanctioned duplicate bridge games, Ocean Pines Community Center, Sundays 1 p.m., Mondays noon, Tuesdays 10 a.m. Partners guaranteed. $5, special games $6. Third Sunday of every month is Swiss teams (no partner guaranteed for teams). Felicia Daly, 410208-1272; Pat Kanz, 410-641-8071 The U.S. Coast Guard Auxiliary, Flotilla 12-05, meets the first Monday of each month at 7:30 p.m. in the U.S.C.G. Station, Ocean City. Visitors and new members are welcome. Dennis Kalinowski, 410-208-4147. Web site http://a0541205.uscgaux.info. Kabbalah class with Saturday services, coffee, juice and bagels, 9:30 a.m., Saturdays, Temple Bat Yam, 410641-4311. Life after loss support group, second and fourth Tuesday of each month at the Community Church at Ocean Pines, 11227 Race Track Road, Berlin, 11 a.m. Help in coping with any type of loss. 410-641-5433. Worcester County Democratic Club meeting, fourth Thursday of

45 45

each month, 7 p.m., Marlin Room of Ocean Pines Community Center. No December meeting. Club membership is not required. All those interested in Democratic platforms and agendas are welcome. Beach Singles, every Thursday, 4-6 p.m., Castaways, Coastal Hwy. at 64th Street, Ocean City, 45+ singles for socializing and monthly activities, 302436-9577. Republican Women of Worcester County, fourth Thursday of each month, 11 a.m. meeting (doors open at 10:30), lunch at noon, local restaurants. For information, call membership chair Barbara Loffler at 410-208-0890. January through June, and again September and October. Dinner meeting in November. No meetings July, August and December. YOGA, James G. Barrett Medical Office Building, Berlin, rotunda, Tuesdays 5:30-6 p.m. All levels welcome. Contact Georgette Rhoads at 410641-9734 or grhoads@atlanticgeneral. org with any questions. Cost: $72 for 8 sessions, or $10 drop-in fee for first time. T.O.P.S. of Berlin, Group 169, Atlantic General Hospital, Conference Room 1. Mondays 5-6:30 p.m. Take Off Pounds Sensibly is a support and educational group promoting weight loss and healthy life style, meeting weekly. For more information contact Edna Berkey, 410-629-1006.

46 Ocean Pines PROGRESS

April - Early May 2014

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CAPTAINS’COVE

April - Early May 2014 Ocean Pines PROGRESS

Traditional lenders want to see another solid year of financial performance

tion-owned lots also should be targeted. The Cove association also continues to await approval of road engineering schematics that had been submitted to Accomack County for review. Without that approval, which has been languishing for months, all the financing in the world won’t expedite new road construction in Captain’s Cove. Community liaison – The Cove’s liaison selection committee met three times in March to move ahead on the

process that will conclude with the selection of a community liaison, who would serve on the board of directors as a representative of the year-round residents in the Cove. The individual filling the position would not be able to vote on matters before the board but could participate fully in discussion. Several of the selection committee members, who were considered good candidates for the new position, have taken themselves out of the running.

made no decision on whether the liaison should be a paid position. Hearn said that the board will probably give a lot of weight to whatever the selection committee recommends on that point. In early April, Hearn disclosed that the search committee had been unable to find a volunteer to fill the position and that the committee seems unwilling to recommend that the position be a paid one, which might have produced an acceptable candidate. Hearn said that the matter of a community liaison will be temporarily ta-

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By TOM STAUSS Publisher ith yet another traditional lender indicating that it may not be ready to commit to a line of credit for the construction of new roads in Captain’s Cove, the president of the Captain’s Cove property owner association’s board of directors said recently that he’s now ready to pursue an alternative. At the Cove board meeting in February, Tim Hearn, the Cove association president, indicated he’s prepared to authorize the board’s point man on road financing, Jim Silfee, to investigate the possibility of obtaining a so-called “hard money” loan as a way of jump starting road construction. Silfee teed up discussion of financing alternatives by informing his colleagues on the board that Howard Bank, the traditional lender that in recent months seemed the last, best chance for traditional financing, still had been unwilling to commit to a $250,000 line of credit without a co-signer. The presumed co-signer in this instance has been previously identified as Captain’s Cove Group Note, LLC, the Cove developer, whose principals so far have been unwilling to participate in the way preferred by Howard Bank. “At this point, I’m not confident that they’re ready to say yes,” Silfee said, indicating that Howard Bank might be more inclined to commit after the Cove association produced two consecutive years of solid financial performance. That second year wouldn’t become apparent until the conclusion of the Cove’s fiscal year in September and the resulting financial audit. Hearn indicated that he was not inclined to wait until late this year to secure financing from a traditional lender. He said there are hard money lenders who would be willing to lend $250,000 to the Cove at an interest rate of 10 to 12 percent, roughly five points higher than the rates offered by traditional commercial lenders when they actually commit to lending. Hearn said that the additional five points on a loan of $250,000 only amounts to $12,000 in additional annual interest expense, which he said he believed the Cove association could absorb. When pressed by Hearn to indicate whether he would be willing to investigate a hard money loan on behalf of the Cove, Silfee agreed “to look into it.” Hearn said that areas of Sections 1, 7 and 10 have been previously identified as at “the top of the list” for road paving, but he also said that sections with “the deepest penetration” of associa-

According to posted meeting minutes, the committee will recommend that the community liaison once selected should be assisted by two volunteers. At the board of directors’ February meeting, the directors discussed but

Cove to pursue ‘hard money’ financing for road construction

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OPINION

April - Early May 2014

On natural gas and closing the golf course

LETTERS

Just came home from an extended trip to Puerto Rico and read your March edition. I was disappointed that there was nothing on my favorite subject, natural gas, but I also thought your coverage on Marvin Steen’s idea to close the golf course was excellent. I think an in-depth review of our dealings with Sandpiper Energy is certainly in order, particularly when everyone is terribly upset at the huge propane bills they are receiving from this terribly ugly winter. Some salient points: The original contract with Eastern Shore Gas was over last May. We allowed Sandpiper to continue operating in Ocean Pines for six months and then

hired an outside attorney to renegotiate. At that time we had the opportunity to put pressure on them to get some Ocean Pines special privileges, such as the expediency to convert to natural gas as soon as possible. (I suggested this to Bob Thompson before the renegotiation started.) What was the result of that outside attorney’s activities? (We couldn’t use Joe Moore because he sits on the board of Chesapeake Utilities.) What action, if any, has taken place with the initial proposal to start the conversion in the autumn of 2013? If and when the Ocean Pines gas network is fully converted to natural gas,

will we still be on the special “propane/ natural gas” rate structure the Public Service Commission gave Sandpiper during Worcester County conversion, or will we be on the much lower statewide natural gas rate other fully converted areas are on? Is Sandpiper dragging its feet on our conversion because it is making a bundle selling us propane? Unlike Eastern Shore Gas, which was a distributor and not a supplier of propane, Sandpiper is both, as its parent Chesapeake Utilities owns the supplier Sharp Energy. I believe a majority of Ocean Pines homeowners would like to get some of these hot items answered, and the sub-

Captain’s Cove

what he believed to be false and misleading statements made about him in an email that was received by members of the board last year. The incident roiled relations among members of the Cove’s waterfront committee and probably contributed to a decision by the Cove board to suspend the committee for a period of time. In his complaint to the state agency, Stoudt alleged that he had been denied due process under the Code of Virginia. According to Gillespie, Stoudt did not indicate that “any assessments were charged to him nor is there any allegation that services were denied him based on the information contained in the email.” Gillespie wrote that “it appears that the complainant has incorrectly applied Section 55-513 (of the Code) to the situation at hand. This section is only intended to provide due process in those situa-

tions where an owner has failed to abide by the rules or regulations of an association, and the association is attempting to enforce such rules or regulations. “Nowhere in this portion of the Property Owners Association Act is there any language that would suggest an association owner would be provided any form of due process in the event that another member of the association, or a board member, has made what was interpreted as a false or misleading statement. “Nor is there any such provision elsewhere in the Property Owners Association Act,” she wrote. Based on the “information contained in the complaint, the “misapplication” of Section 55-513, and a lack of evidence supporting any violation of common interest community law or regulations, the Office of the Common Interest Community Ombudsman does not find that there has been a violation of any law or

From previous page bled but may be reconsidered as part of the 2015 fiscal year budget, when funds could be allocated for it. Stoudt complaint decided – The complaint against the Cove board filed in late December by Cove resident Jerrold Stoudt with Virginia’s Office of Common Interest Ombudsman has been decided in favor of the Cove board, according to a letter posted on the Cove’s Web site. The decision is similar to a decision handed down late last year by the Cove board, which conducted a hearing on the matter at the request of Stoudt at the board’s December meeting. Heather S. Gillespie, the ombudsman assigned to the case, in the posted letter recapped the case as one in which Stoudt submitted a complaint regarding

ject of natural gas should be kept in the forefront. Allow me to give you my personal feelings about the golf course. No one likes the idea that it is a losing situation, but I certainly don’t want to see it closed. I was a member for some time and watched as the membership deteriorated with the introduction of competition from the growth of courses in the area. When I left with six other guys (because of difficulty in obtaining tee times for a group of 35 players I headed up), the membership level was over 700; now it is less than 200. At that time, I suggested to the Board of Directors (Dick Brady was the OPA president at the time) that the amenity could not be maintained as a semi-private facility,

48 Ocean Pines PROGRESS

regulation governing common interest communities,” she concluded. Due process -- the Cove POA recently posted on its Web site a revised policy governing due process that will be taken up for discussion at the board’s scheduled meeting April 24. It’s designed to govern the manner in which the Cove board will deal with alleged violations of restrictive covenants or other regulations at the same time it gives property owners an opportunity to respond to the alleged violations or to cure them. Under Virginia law, unlike Maryland, the Cove has the right to impose fines on property owners who continue to violate certain regulations. Cindy Welsh reappointed – Cindy Welsh of Prudential PenFed Realty in Captain’s Cove has been reappointed by the Cove POA to handle sales of association-owned lots. In a mid-March letter to the board, Welsh said she had been encouraged by the activity and phone calls from people interested in Captain’s Cove despite “the wet and cold winter.” She said that once prime selling season picks up in May, she expected a good year for sales. Based on prices attached to vacant lots put on the market by private sellers, she recommended against the Cove raising prices on any lots in its inventory. She said there’s a “year’s worth of inventory” priced $5,000 or less on the market, and that raising prices will only result in fewer sales and fewer buyers who will become “dues-paying” members of the Cove association. The Cove board did not act on the recommendation, but it appears likely it will be accepted. Egg Hunt – Captain’s Cove will host an egg hunt for Cove kids on Saturday, April 19, at 3 p.m. at the Town Center. The Social Committee is seeking volunteers for egg stuffing and related activities; teens are welcome. The committee chair Jim Hayes can be contacted at jjhayes1@verizon.net.

OPINION

April - Early May 2014 Ocean Pines PROGRESS

COMMENTARY OPA should drive hard bargain on golf contract renewal

Letters From previous page but should be changed to a municipal structure, where a low membership fee for residents is charged and fees are assessed for each round of play, according to the day of the week and the time of the day. This would make it much more accessible to everyone in Ocean Pines, not just those who live here full time. It could facilitate, in some manner, renters as well. I do believe that under that situation the course would be utilized much more. With proper business management, having it open to the public with some restriction and utilizing hotel/golf packaging, we would reduce the losses greatly. There is no reason why the Billy Casper group couldn’t manage this successfully. Unfortunately when they were brought in, they were told how to run it, that is, in the same old losing way. I am afraid this type of changing managers applies to the Yacht Club as well. That is, “run it like this, but make it profitable!” It is “Samo, Samo” with just a new face in front of it. Keep up the fine reporting, I look forward to the Progress every month. Budd Shea Ocean Pines

immediate effort to lease out the golf course, but so far no other director seems prepared to go along with Clarke’s proposal to send out a request for proposals (RFP) for a golf course lease. Clarke’s agitation might gain some traction if, as he believes is likely, the latest $237,000 projected loss turns out to be wildly optimistic. The March numbers, due out in mid-April, could feed a narrative that under Casper management Ocean Pines golf operations have not thrived, leaving aside the complicated and nuanced reasons why that might have occurred. It’s not all Casper’s fault, and indeed the company has learned from some initial mistakes. Golf Pro John Malinowski is well regarded by most, a thorough-going professional who caters to the aging membership corps while conducting clinics for junior golfers with regularity. Course superintendent Rusty McClendon also improved his game considerably after some early miscues. Then there’s the effort recently by local builder/developer Marvin Steen and a group called Coalition for Ocean Pines Equity (COPE) that could, at some point, push for a petition campaign designed to force the OPA to conduct a referendum on closing the golf course and converting it into a park open to all. Steen’s initial flier/advertisement asking the provocative question -- Should Ocean Pines Be in the Golf Business? – resonated within the community. Many residents flocked to Steen’s Ocean Parkway offices in Ocean Pines to volunteer for the petition effort when he’s ready to launch. Some are frustrated that he’s not done so already. Steen seems willing to give Terry and the board time to fully explore the leasing option, even if it means simultaneously giving BCG a last opportunity over the coming

Goose overpopulation has humane solutions

I have been living in the Pines for over 15 years and continue to love the area, the people and the environment (recent cold notwithstanding). Seeing the local fauna – the squirrels, rabbits, deer, occasional fox, and the various birds – are part of this enjoyment. However, when the animals/birds become a problem to our way of life, actions are needed. I am here specifically talking about our resident Canada geese population, not the migratory geese or the domestic white geese that have resided here for years, the latter of which were mistakenly sighted by a local paper as a target for removal. Reading recent letters to the editor in the papers, I see a lot of misunderstanding by some Pines residents about Canada geese in general and potential control options in particular. These readers have let their love for nature’s animals affect logical thinking. First, let’s consider the realities. Canada geese normally are migratory – flying south in winter and returning to their homes in summer. But many (some knowledgeable sources, such as the Internet Center for Wildlife Damage) say 60 percent decide to stay south when they find food and non-threatening en-

months to turn the golf operation around financially. But Terry and his board colleagues seem fully cognizant of the fact that Steen’s patience won’t last forever. If a lease opportunity fails to materialized, he is fully capable of revving up a petition drive that would force the course closure petition to a referendum. Terry and board colleagues Jeff Knepper and Jack Collins met with Steen recently in Ocean City to apprise the COPE leader of Terry’s exploratory efforts on the lease option. Steen regards the efforts thus far to be in good faith, in need of time to play itself out. How much time is still very much up in the air. In the meantime, though, there is the matter of whether to extend the BCG agreement and for how long and under what financial terms. Terry for quite some time has been skeptical of the generous terms of the existing agreement. If he’s able to bring Collins and Knepper along to his way of thinking, so that all three directors present a unified front in their interactions with their colleagues on this subject, there ought to be a fourth vote somewhere in support of driving a hard bargain with BCG in a contract renewal negotiations. “Skin in the game” is the catchphrase of choice these days with respect to the golf contract, and we should hope that Terry and a board majority won’t “go squishy” as they iron out details of a contract extension, assuming that BCG wants to stay under conditions acceptable to the OPA board. Many residents won’t be happy with a simple extension of the status quo. If that happens, the directors may be dealing with a petition sooner than they thought possible. – Tom Stauss

vironments there. These same sources say that a well fed Canadian goose will excrete between 1 and 2 pounds a day of feces. Taking the middle of the spread, a goose will defecate 1.5 times 365, or over 500 pounds of poop a year. Estimates vary, but my observations say about 300 resident Canadian geese stay at the South and North ponds, golf course and other open areas, which adds up to around 80 tons of poop per year. One can adjust the numbers of birds down, but it’s still a lot of stuff that contains chemicals (nitrogen, phosphorous, and potassium), diseases (parasites, bacteria, viruses, fungus, etc.), and other noxious slippery things. These outputs eventually run off into our local ponds and bays, supporting algae growth which in turn causes oxygen depletion and fish kills. Speaking of slippery noxious things, I help run two kids’ events for the Ocean Pines Anglers Club that involve the grounds near the Veterans Memorial. I can personally attest that the walkways and grass areas are littered with large amounts of goose poop. The effect is disgust and concern about possible contact of kids and feces. Recent letters to the local papers have spread inaccurate or highly opinionated information. Examples: The Ocean

Pines Association Board of Directors has decided to euthanize the geese (wrong, they have only agreed to look into the problem); the geese have more rights here than people who have moved in on their territory (wrong, the geese stop and stay at the Pines because we have built a perfect place for them – ponds, open grassy areas, safety from predators – that would not have existed had the OPA not been developed. Remember the area was once forested). I attended a recent OPA board meeting dealing with this issue and heard even more disheartening things, such as physical threats to President Terry and members of the board. The bottom line of this meeting was that the OPA is still fact finding about the problem, particularly looking into humane ways to control the population. No decisions have been made! However, in my mind the resident Canadian geese are a significant nuisance, are polluting the waters, and are a potential health hazard; and our community needs to act in their control. The web sites identify a number of humane goose control mechanisms, and I support the OPA board for taking the actions needed to find an appropriate solution to the geese overpopulation. Walt Boge Ocean Pines

As a lingering winter turned into a April, and the spring golf season appeared poised for a break-out, the Ocean Pines Association had not yet concluded a formal contract extension with Billy Casper Golf. While presumptively it would appear that the company will be given some sort of extension by the OPA, it remained possible in the early days of April that the parties would not be able to conclude a contract extension acceptable to Casper and a majority of the OPA Board of Directors. OPA President Tom Terry finds himself in a difficult position having to navigate on choppy waters buffeted by competing pressures. On the one hand there are his own statements over the course of a year or more: He said he would not favor a contract renewal if the company failed to meet its budget in the third year of its three-year management contract. Not to put too fine a point on it, but in fact BCG is on a path to missing its budget by a significant margin. The current projected loss is $237,000, compared to the original budget forecast of $150,000 in red ink. But March was hardly a good month for golf; the course was closed for play as much as it was open. In March of 2013, the golf operating loss was more than $100,000, and if it turns out as ugly this year the likely result will be operating losses for the year in excess of $300,000. Much is riding on a good April, in which bookings from outside are said to be robust. But bookings still require good weather to be fulfilled. April is notoriously fickle in that regard. More recently, Terry has warmed to the idea of a contract renewal in concept – details, of course, matter -- but that’s hardly the end of the pressure he’s under. One of his board colleagues, Marty Clarke, has been agitating for an

50 Ocean Pines PROGRESS

OPINION

April - Early May 2014

Trusting but verifying geese control

ack in early December, when the Board of Directors met in a work session to hear a report from a member of the Environmental and Natural Assets Advisory Committee about the expanding resident goose population, OPA President Tom Terry remarked that “it is getting to be rather overwhelming when you see them out there,” referring to the birds, not the proliferation of tone-deaf proposals from advisory committees or the public relations black this proposal produced for the Ocean Pines Association. In something less than his most stellar moment atop the OPA food chain, Terry said the OPA should further study the committee’s recommendation to euthanize the birds and feed them to the homeless and “investigate this opportunity for adjustment” of the resident waterfowl. What a phrase, opportunity for adjustment. Cringe-worthy, something the OPA president realized instantaneously had needlessly crossed the line into gaffe territory.

different hymnal, having retired the “opportunity for adjustment” lyrics into a more melodious “non-lethal means” for An excursion through the curious cul-de-sacs An excursion through theby-ways curious and by-ways and cul-de-sacs dealing with the goose problem. of Worcester County’s County’s most densely community. of Worcester mostpopulated densely populated community. He said the environmental committee By TOM STAUSS/ is cooperating with this non-lethal apBy TOM Publisher STAUSS/Publisher proach and is exploring ways and means of resolving the matter without employing the wildfowl equivalent of killing By using the term “opportunity” to community. Advisory committees historically Bambi. describe a potential program of euthaThe most recent statement by the nizing resident wildfowl, Terry conveyed have suffered from an abundance of selfthe impression that the idea might be fa- doubt: doubt about roles and relevance OPA president might be interpreted as vorably considered. Hence, the out-pour- and a feeling that the board doesn’t lis- an attempt to defuse the controversy or ing of angst among a segment of Ocean ten, ignores recommendations or fails to “energy”, as he likes to call it, without provide much if any information about actually taking the possibility of goose Pines. euthanasia off the table permanently. In fairness, matters weren’t helped why certain suggestions are rejected. To overcome those lingering insecuriIn the end, the sooner that happens much by some reporting in the local print and television media suggesting ties, the board for some time has been the better. Talking about exploring non-lethal that a decision to reduce the resident inviting advisory committees to make periodic presentations at meetings of means is an improvement over the altergoose population through euthanasia native, but still falls short of an absolute had already been made, or soon would the directors. One such presentation was made at commitment NOT to pursue a reduction be. the Dec. 5 work session of the board, and in the goose population as proposed last Consideration of advisory committee recommendations is part of a concerted months of festering controversy over the December by the environmental committee. effort by Terry and directors to treat the fate of resident geese is the result. At the board’s March regular monthUntil that happens, vigilance on the panels as incubators for ideas and policies and as mirrors into the Ocean Pines ly meeting, Terry was singing from a part of advocates for the resident goose population is justified. Or as an esteemed late former president used to say, trust but verify.

LIFE IN THE LIFE INPINES THE PINES

The Ocean Pines Progress, a journal of news and commentary, is published monthly throughout the year. It is circulated in Ocean Pines, Berlin, Ocean City, and Captain’s Cove, Va. Letters and other editorial submissions: Please submit via email only. Letters should be original and exclusive to the Progress. Include phone number for verification. 127 Nottingham Lane Ocean Pines, MD 21811

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Rick Menard

Letters From previous page I’d like to add to the gaggle of voices dismayed by the proposal to exterminate our resident goose populations at the OP entrance ponds. If there is truly an avian waste problem, the tiny ratio of

resident gray geese to transient waterbirds suggests that the former are taking blame for the latter. Likewise, traffic woes on Racetrack Road have many causes, of which goose crossing seems to me to be a minor one. The resident geese, gliding and waddling, provide part of the charm of the entrance ways. If something must be

done about putative waterfowl problems, then I urge consideration of less draconian means. These might include dropping-rake tractors, enhanced pond water exchange/filtration, and physical separators such as wildlife underpass culverts. Glenn Pearson Ocean Pines

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