April 2021 Ocean Pines Progress

Page 1

APRIL 2021

www.issuu.com/oceanpinesprogress

443-359-7527

Community pushes back against regs on short-term rentals Although the proposed regulations are nearly identical to those implemented last year by Worcester County to control short-term rentals, property owners are pushing back against the OPA’s plan to create its own set of fees and guidelines. ~ Page 5

THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY

COVER STORY

Ballots on spending limit referendum to be sent out no later than April 8

Perrone, Trendic spar over whether annual bulkhead program would be caught up in $1 million spending limit

By TOM STAUSS Publisher he referendum on limiting Board of Directors spending authority to no more than $1 million without the explicit approval of Ocean Pines Association members is imminent. In a March 27 public hearing, OPA President Larry Perrone said the referendum ballots will be in the mail no later than April 8, with a return deadline of May 13. The Elections Committee will count the ballots the next day, Friday, May 14, Perrone said. The public hearing, conducted in-person with no live streaming in the Community Center’s Assateague Room, featured a lively debate be-

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Larry Perrone

Slobodan Trendic

tween proponents of a spending cap and five members of the board who oppose it. Two directors, Frank Brown and Tom Janasek, were absent because of other commitments. About ten OPA members joined former Director Slobodan Trendic, who waged a two-year legal battle

to bring the spending limit question to referendum, in advocating for their position. They argued that property owners are entitled to have a voice in spending large amounts of OPA resources for significant expenditures. They already do, albeit higher than $1 million. The referendum if approved would decrease the $1.8 million threshold currently in the by-laws, or 20 percent of the revenue collected from annual assessments, to $1 million, with no adjustment for inflation. The existing formula allows for an increasing spending threshold without a referendum as the assessment increases. To Page 3

Janasek effort to oust Perrone as president fizzles when Parks rescinds earlier support for special meeting ~ Page 10

Possible competition for trash collection in Ocean Pines A company called Seagull Disposal is looking at the possibility of providing once-aweek trash collection services in Ocean Pines. ~ Page 25

Daly announces board reelection bid

Director Frank Daly has become the second candidate in this summer’s Board of Directors election. Citing lots of accomplishments in three years, he says there’s more he’d like to get done if reelected. ~ Page 34

‘Get Involved’ group formed on Facebook Former OPA Director Esther Diller has organized a new watchdog group called ‘Get Involved.’ It has a Facebook presence and 500-plus members. ~ Page 28

Colby Phillips reacts to lawyers’ report

Former OPA Department head Colby Phillips has criticized a report purporting to show the results of an investigation into whether she suffered from ‘enhanced sensitivity’ to interactions with OPA President Larry Perrone. She said that witnesses who would have supported her version of events were never contacted. ~ Page 16


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April 2021

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COVER STORY From Page 1

A key element in the debate revolves around the issue of whether the OPA’s annual bulkhead replacement program, currently costing north of $1 million, would be caught up in the spending limit, thereby requiring an annual referendum costing an estimated $30,000 per year to explicitly permit bulkhead replacement costing in excess of $1 million. Perrone insisted that it would require an annual referendum, while Trendic said it would not. He said it could be avoided by drafting a five-year plan for bulkhead replacement, estimating the cost over five years, and then asking for property owner approval of the program as part of the annual board election, thereby substantially reducing the cost of a separate referendum. Perrone said a bulkhead replacement program that commits a contractor to a linear foot cost of labor and materials over five years is not realistic. Given the dramatic increase in materials cost seen in recent months because of supply and

labor shortages, Perrone said no contractor will be willing to lock in a cost for more than a year. Trendic later told the Progress that a five-year program would be based on an estimate that could factor in inflation. He said a referendum question could be drafted to allow for contingencies such as sharp escalation of costs as is occurring now. OPA attorney Jeremy Tucker said property owners need to be aware that there could be no “carve-outs” or exceptions to the $1 million fixed limit before a referendum for additional spending would be required. Perrone said the best “oversight” that property owners could exercise over board over-spending is to vote directors out who over-spend. He also pushed back on the idea that the $1 million cap could be circumvented by dividing an annual contract exceeding $1 million into phases each valued at less than $1 million. He asked property owners to keep in mind the “screamong” that would result from that kind of financial manipulation designed to avoid a referendum.

referendum cost would be minimal because the required voting may be included on the ballot for election of sirectors per our by-laws. I also wish to point out to your readers that a referendum is not required for emergency repair of existing facilities per our by-laws.” Polite skirmishing over elements of the pending referendum has not been limited to the March 27 public, which was a requirement of the referendum process spelled out in the by-laws. Prior to public hearing, Trendic had questioned whether the OPA was adhering to the timeline for completion of a referendum. In recent email to the Elections Committee, Trendic said that after reviewing a video of the committee’s most recent meeting, “it became clear to me you do not have the information about the referendum deadline. This should have been provided to you by your legal counsel and/or your board liaison.” Both parties agreed that the Association will complete its obligations within 120 days from the date of the fully executed agreement, To Page 5

On that point, Trendic seemed to agree, telling the Progress that he didn’t think such a maneuver would be consistent with language in OPA’s organizing documents or principles of good governance. But he said a by-laws change in 2008 makes reference to projects phased out over multiple years, and that bulkhead replacement and road resurfacing would seem to fit that scenario. “The OPA Charter states that the directors of the Association shall exercise their powers and duties in good faith with a view to the best interest to the Association. And our governing documents require the Association to properly maintain our critical infrastructure like the bulkheads and our private streets,” he said. “With that in mind I would handle the bulkhead replacement program with full transparency and financial approach best for the Association.” He said a five-year bulkhead replacement program approved in a single referendum is consistent with that, “That would enable the board to implement this program in full compliance with the OPA Bylaws. The

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April 2021


OCEAN PINES

April 2021 Ocean Pines PROGRESS

Trendic vs. Perrone

Community fired up in opposition to proposed short-term rental regs

From Page 3

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Board postpones vote; sets Town Hall meeting By ROTA L. KNOTT Contributing Writer lthough the proposed regulations are nearly identical to those implemented last year by Worcester County to control short-term rentals, a plethora of property owners is pushing back against the Ocean Pines Association’s plan to create its own set of guidelines and fees. Dozens of irate property owners who operate shortterm rentals from homes in the community packed a March 20 virtual meeting to berate the Board of Directors for considering regulations that will impact their property use and income. “I saw the list of what the requirements are and some of them are preposterous,” Theo Margus said. Martin Quinn agreed and said the strict regulations are going to “sweep up law abiding” short-term rental property owners and make it impossible for them to continue renting their homes in Ocean Pines. Despite repeated, but half-hearted, attempts by OPA President Larry Perrone to quell the questions and remarks on the issue during the Public Com-

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ments segment of the agenda, property owners wanted to have their say. Perrone encouraged the speakers to save their comments for an upcoming April 17 Town Hall meeting on the proposed short-term rental regulations, but many insisted on expressing their displeasure at the proposal during the regular monthly meeting. When comments became somewhat repetitive well into the meeting, Perrone called for adjournment. When Perrone indicated the in-person Town Hall meeting on April 17 would be restricted to just 50 people, property owners countered that the meeting needs to be virtual so more people can participate. Esther Diller, a former OPA director, pointed out that more than 110 people had joined the March 20 virtual meeting to listen in on the issue. The directors did not indicate whether there was any flexibility on virtual vs. in-person meetings or whether some sort of hybrid approach might be feasible. In-person encounters and virtual access were combined in the budget review process earlier this year.

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Trendic said, adding that he signed the agreement on Feb. 1 and he believes the OPA executed it within a week after that. If the OPA took 30 days after the public hearing to distribute ballots, that would mean the mailing would occur no later than April 27. But that now will happen no later than April 8, according to Perrone, well within the 30-day timeframe. The completion of the process by May 14 also is well within the 120-day timeframe called for in the agreement between Trendic and the OPA. The referendum question devised by legal counsel reads as follows: Should OPA By-Laws Section 5.13.(d)(1) be amended to read “If the total estimated cost, capitalized in accordance with generally accepted accounting principles, of any single capital expenditure exceeds One Million Dollars ($1,000,000.00), the proposed single capital expenditure shall require approval of the members by a referendum?”

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OCEAN PINES

April 2021

Short-term rentals From Page 5

Director Frank Daly, a proponent of regulating short-term rentals in Ocean Pines, submitted a motion to approve the new guidelines but withdrew it from consideration at the meeting in response to the property owners’ concerns. The board will instead hold the Town Hall and then consider the motion at a regular April 21 meeting. Perrone said the board has not made a decision on the issue despite the suggestion by some residents that it has already been decided. Defending the proposed regulations in a non-confrontational manner, Daly said the county has issued permits for 140 short-term rental properties located in Ocean Pines. However, he said there are far more than that actually being used for the purpose. The proposed new guidelines specify that single-family homes rented for less than 28 days will be considered short-term rentals and

property owners must obtain both county and OPA permits for the use. The properties would need to meet basic life safety standards including having functioning smoke detectors and fire extinguishers and are subject to home inspections. The new guidelines would allow the OPA to levy a permit fee but do not specify the amount to be charged for shortterm rental licenses. That would be determined by a separate Board resolution. Occupancy limits would be set according to Worcester County’s requirements, ranging from four people for up to a 1,200 square foot home to ten people for 4,501-plus square foot dwellings. If, at any time, the occupancy is contrary to the number of allowable renter’s life safety requirements, the OPA would have the power to revoke its permit for that property for up to a year. Salvatore Giordano said the OPA’s proposed guidelines mirror many, but not all, of those established by the county. He took particular issue with the OPA being able to revoke someone’s short term rental license for 365 days. He said that would “detrimentally

affect homeowners financially for a very long period of time,” and told the board “I am appreciative that the directors have mirrored Worcester county’s rental policies, but I would also like note it is redundant, adding additional hoops, fees, restrictions.” Daly said the OPA developed the proposed rules for short-term rentals in response to a handful of problem properties where the owner or a lessee then rented the properties out for fewer than 28 days at a time. He cited an egregious situation at 91 Abbyshire Road that hastened development of the guidelines. He said surrounding neighbors complained about noise, trash, and other problems at that property but the person leasing out the house for short-term use refused to comply. He said the county issued multiple $100 citations because there was no county rental license for the site, ultimately taking the person to court and only receiving $500 in damages for all of the violations. “Now let me tell you why it’s ineffective,” Daly said of the county enforcement mechanism. He said for years the neighbors of 91 Abbyshire

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dealt with the problem with no avenue for recourse. The property owner lived in Delaware and leased it to a corporation in Connecticut. So an enforcement notice was going to the homeowner, but the person who held the legal lease was making the money and “could care less,” Daly said. Although the county implemented controls, Daly said the OPA’s attorney told the board it is best for Ocean Pines to do everything it can as a homeowners association to regulate short-term rentals. He noted the OPA does not have the ability to issue fines for problem properties. “We have to do it through our restrictions,” he said, adding, “the best way to do it is through our architectural guidelines” essentially following the same process as for violations of the declaration of restrictions. This was a sticking point for Martin Quinn and other OPA members. “We are very responsible owners. We use a property manager. We have a county license,” Quinn said, adding “I completely, completely understand the frustration of these few homeowners.” But, he said there To Page 8

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Short-term rentals From Page 6

has to be another way to address the issue without adding another license, inspections, and more fees to the process. Quinn said the layers of regulation will make it both cost and time prohibitive for property owners to engage in short-term rentals. His fear is that it will eventually cause property owners to sell, which will not be good for Ocean Pines property values. Daly responded the OPA has had multiple conversations with its attorneys, the fire marshal, police, Worcester County, and other agencies. He said the only two viable options are to implement the proposed regulations or to completely ban short-term rentals in Ocean Pines, an action directors agreed they did not want to take. He pointed out the proposed system is complaint-driven just like that for property violations under the restrictive covenants. That means the OPA would only investigate licensees if a problem is brought to its attention, mostly likely by neighbors. “If you’re a good [neighbor]and haven’t had a complaint, you are not going to have a problem,” Daly told the rental property owners. And even if there is a violation, as long as it is only occasionally, “you’re [only]

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going to have a small problem.” Wendy Ballenger-Subasic said renting a house in Ocean Pines for a weekend is not a new concept; Airbnb and Vrbo have simply allowed more information to be distributed about how that happens. She said “for the most part everything is going very well,” and all rental owners should not be punished because a few are causing problems. “These renters that come in they contribute a large amount of revenue to our community,” Ballenger-Subasic said. Lynn Kessler asked for a full report on the data collection and investigation into short-term rentals conducted by the OPA. “No one spoke to me. I would like to see what that information is.” She said stakeholder input should be part of the public record. Daly said there isn’t a single comprehensive report from which the proposed guidelines were formed, but rather there were multiple conversations with stakeholders over the last year. James Reddy said the OPA is punishing law-abiding short-term rental property operators because of a few bad ones and implementing the proposed rules will hamper rentals in the community. He said putting them into place immediately as proposed will kill the entire upcoming season of rentals. Implementing this type of regulatory process on the heels of the COVID-19 pandemic when people have already lost revenue is unfair, Edie Hardy said. “People who have homes in Ocean Pines are going to end up dumping them,” she said. “All of Ocean Pines is going to end up suffering.” August Lindsey strongly encouraged the Board to wait until after the pandemic to make such substantial changes to how short-term rentals operate in the community. Tracy Jones questioned the occupancy limits included in the association’s proposed regulations, which appeared to some to be more restrictive than the county law. Daly said the regulations regarding occupancy exactly match what is in the county code, so the occupancy for an Ocean Pines license will be the same. “If you have a Worcester county rental license these guidelines exactly correspond to Worcester county guidelines for occupancy,” he said. To Page 10


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April 2021

Short-term rentals From Page 8 For example, if the county issues a license for eight beds, then Ocean Pines’ license will be for eight beds, he said. “There is simply no difference between what’s in these guidelines and the county’s.” Mike Lombardi said the proposed rules will have a negative impact on all property owners not just those operating short-term rentals. “I think we’re overcorrecting” for a few problem properties, he said. “People are going to have to sell their homes.” Dan Epstein said he appreciated that the board is trying to address the concerns brought about by problem short-term rentals. However, he said he finds the permit requirement and fees to be unnecessary and suggested the OPA try to find a way to do so without charging people. He asked if the board had explored the possibility of having the police department enforce the county code. “Our police force does not have that ability because we are not a municipality; we are a homeowners association,” Daly responded. But he seemed somewhat receptive to the idea of not charging homeowners with fees. He said the bottom line is that “we have people in these community who want to ban short-term rentals altogether,” but on the “other side we have people who don’t want any-

Janasek loses Parks in effort to oust Perrone as OPA president Director reserves the right to take further action if ‘bold, front and center’ challenge is not addressed and there is a ‘loss of commitment by colleagues By TOM STAUSS Publisher he effort by Director Tom Janasek to remove Larry Perrone as Ocean Pines Association president has fizzled, with Director Doug Parks deciding that he no longer wanted to second a motion for a special meeting for the purpose of removing Perrone as president. Parks had offered a second to the motion by Tom Janasek at a Feb. 20 meeting of the Board of Directors for the special meeting to consider removal. During a special meeting of the board March 1, Parks confirmed an announcement by Perrone earlier in the meeting that Parks had decided to withdraw his second. Two directors are required to request a special meeting of the board, and Janasek apparently did not have a second director willing to join him in a meeting to consider Perrone’s removal. It is not at all that there would have been four votes for removal even if a special meeting had been called. Parks described his decision to revoke his previous second a “difficult” one that required a lot of thought. He said he had received “a commitment” from his colleagues admitting that there was “a problem” that “we can’t assume will solve itself.”

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thing.” The Board has tried to draft a proposal responsive to all of those

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He said fixing the problem, which he never precisely defined,would be “a challenge” that needed “to be addressed boldly, front and center,” adding that “there can’t be a loss of commitment as we navigate through these difficult times.” Parks said that if the board “can’t make headway” to resolve issues, which seems to include a contentious relationship between Doug Parks Janasek and Perrone in particular, then “we will make decisions going forward.” Parks and Janasek are also known to be concerned about what they consider to be Perrone’s excessive involvement in day-to-day management of the OPA. Parks’s comment seemed to suggest that he would be open to a renewed effort to remove Perrone as president if Janasek proposes it again. But when later asked if that’s the impression he wanted to convey, Parks demurred, saying no one should read anything more into his statement than what he actually said. In his March 1 remarks, Parks recalled his three years serving as OPA president which were frought with diffulties among the directors. Parks was often

concerns, he added. “If someone has a better idea, not only would it be welcome, it would be refreshing if somebody has a different approach,” Daly said. Daria Uhlig suggested that prior to the Town Hall meeting on the short-term rentals guidelines the Board develop a side-by-side comparison of the county code and the

To Page 12

OPA’s proposal. She said the issue is how the two may differ and that is creating a lot of angst among property owners. “I just think that there is an awful lot of confusion about what is and is not on the table.” Daly agreed to draft such a comparison document prior to the town hall meeting and any board decision.


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Perrone ouster From Page 10 embroiled in contentious relations with former Director Slobodan Trendic, who resigned before the completion of his three-year term. OPA Vice-President Colette Horn, after praising her colleagues for pledging their best effort to resolve outstanding issues, said past means of relieving board tensions -- attriCourtesy Jan Castner - Shamrock Realty 410-641-5000

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tion, resignations or attempts to remove officers and directors -- have not succeeded in improving board relations and “sometimes have yielded greater problems.” She said there is a renewed commitment “to work on these problems, using whatever techniques ... we can to heal this board,” She asked for the OPA membership to give the board “time and space ... to accomplish what we’ve committed” to do. At the March 20 monthly meeting of the board, the broad outlines of techniques that Horn had in mind emerged. Among the tools she mentioned are self-evaluations of their performance by directors, seeming to suggest that some sort of follow-up would follow as a result of these self-evaluations, which she described as only a “small part” of the techniques that could be used to heal poor relations among some of the directors. Janasek offered his motion for a special meeting during the Public Comments segment of the Feb. 20 meeting, followed immediately by

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Parks’s offer of a second. Jansek’s motion was directed at Perrone. “There has been a pattern of behavior on this board that includes threats of legal action against directors, blatant lies to influence directors’ votes, and interference with committees managing important projects, such as drainage, and food and beverage operations, to name a few,” Janasek said in making his motion. He led the call for Perrone’s removal as OPA president in response to the recent resignation of Colby Phillips, director of amenities and logistical operations, who had filed a human resources complaint against Perrone alleging a hostile work environment. “Colby Phillips, who never met a project she didn’t give 110 percent to. Always looking to better Ocean Pines and its residents. The way she was treated was disgraceful,” Janasek said. Phillips’s complaint charged Perrone with violating Board Resolution B-08, pertaining to director and officer ethics and conduct. Her complaint of a hostile work environ-

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April 2021 Ocean Pines PROGRESS

Report says there was no support for claims of Phillips’ involvement in alleged Viola smear campaign Attorney also investigated claims that general manager favors some departments over others

By TOM STAUSS Publisher cean Pines Association President Larry Perrone on March 20 released to local media a copy of the management review report diving into the issue of whether there was a campaign prior to the 2010 Board of Directors election intended to undermine General Manager John Viola and possibly lead to his ouster. The report was an abridged version of a report submitted to the board last November by OPA attorneys after an investigation. The board in a special meeting March 1 agreed to release the abridged version after Director Frank Daly withdrew a motion to release the version

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submitted by the attorneys. There have been reports, not rebutted by Viola, that the report cost the OPA about $15,000. Perrone said in comments John Viola during the March 20 meeting that property owners could request a copy of the abridged report through Senior Executive Assistant Michelle Bennett, either through email or inspecting the document in OPA administrative offices, beginning Monday, March 22. The report says that Michael J.

Neary, a human resources attorney with Lerch Early, the OPA’s counsel, determined after his investigation that all members of the management team, including former Director of Amenities and Logistical Operations Colby Phillips, were working to support the general manager and the interests of Ocean Pines. The management report said that “circumstantial evidence was insuffiicent to find that Ms. Phillips worked to undermine the general manager.” OPA Director Camilla Rogers said in a board meeting last August that there seemed to be a campaign under way to smear Viola and possibly lead to his removal as general manager. She did not cite Philllips at the time as a possible

13

participant in what she called an anti-Viola “witch hunt.” Neary in effect concluded there was no evidence supporting thr existence of such a witch hunt or smear campaign against Viola. However, the report indicated that some members of the management team -- none were identified -- “expressed concerns that Phillips may have been involved directly or indirectly with OPA members’ efforts to undermine the general manager leading up to the last election of the board of directors. “No direct evidence corroborated the concerns raised,” the report said. Phillips has denied any involvement in any effort to undermine or oust Viola as general manager. In a statement she issued after reading the report, she said “I believe it confirms that not only is there an extreme level of unnecessary drama in the OPA work force, but that I personally was being investigated for a smear campaign ... Someone was saying untrue things to others insinuating that I was doing this. It’s unfortunate that as a hard working, compassionate wom-

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14 Ocean Pines PROGRESS

OCEAN PINES

April 2021

Smear campaign From Page 13 an, certain people were intimidated by that and needed to find ways to try and destroy and divide. Anyone who truly knows me knows that I spend my time focusing on the positive and helping others.” She also said the report omitted references to several employees who told Neary that she had been “negatively targeted” by certain individuals within the OPA. According to the report, the board unanimously authorized Neary to conduct an investigation at an Aug. 17, 2020, board meeting. “The board was specifically interested in whether any of the management team were working to undermine the General Manager. The board was concerned about this issue as some Board Members heard concerns from Ocean Pines employees and Ocean Pines members that community members were working with employees to oust the General Manager,” the report said. Former OPA Director Steve Tut-

tle said recently that, contrary to a statement in the report, he does not remember a formal vote to investigate the allegations, adding that he regarded the discussion as amounting to little more than talk about unsubstantiated rumors that he believed didn’t amount to much. The management report also discussed alleged favortism exhibited by Viola. “Five members of the management team suggested the General Manager favors some Departments over others. “One group believed the General Manager favors the Golf Department and Recreation and Parks Department over Public Relations/ Marketing and Amenities and Operational Logistics. “Whereas another group reported the General Manager favors Amenities and Operational Logistics over others. The dividing line in these perceptions were opinions related to how the General Manager managed the identified management team member.” Neary also interviewed Viola as

part of his investigation. “The General Manager reported working well with each member of his team,” according to the report, and he “did not know whether, or not, any member of his team had worked to undermine him. “He was well aware some prior, and current, board members were critical of him. But he did not know what, if any, role any of his direct reports played in fostering animosity toward him from these critical board members.” Viola when asked by the Progress to react to Neary’s conclusions said he doesn’t play favorites, that he tries to treat all of the senior leadership equally and respectfully. Neary reported that Viola had concerns about confidential Ocean Pines information appearing in the press. “Two specific incidents where confidential Ocean Pines information made it to the press involved information only disclosed to a core group of senior managers,” the report said. “No direct evidence pinpointed

any member of the management team in particular as having leaked the confidential information to the press and the circumstantial evidence was inconclusive.” The abridged report did not identify the content of the reported leaks, but a likely suspect was an emergency organizational chart that downgraded Phillips’s involvement in running the OPA when the general manager would be unavailable. Another possible leak that may have raised the general manager’s concern involved copies of emails to Rogers by a friend prior to the 4-3 vote in August electing Perrone as OPA president over Tuttle. Neary reported that all members of the management team believed the team was working well together since the last board election in August. “The uncertainty surrounding whether a new board would retain Mr. Viola seems to have fostered some of the suspicion and discord amongst staff. The outcome of the To Page 16

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16 Ocean Pines PROGRESS Smear campaign

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April 2021

Phillips pushes back on report she had ‘enhanced sensitivity’ to interactions with OPA president

From Page 14

election appeared to have been a calming influence on the management team,” the report said. Following the submission of the report on the investigation to the board by Neary, directors decided to disclose the contents to Phillips “because [some of] those interviewed perceived that of some of her actions had the effect of undermining the General Manager. “The Board believed Ms. Phillips should know this information to allow her to take it into account as she continued to progress within the organization given that, at the time, she still sought advancement to the General Manager position,” the abridged report said. Phillips has objected to that intepretation of why she, and not other senior managers, were called in to hear the results of the Neary probe. She has said that disparate treatment was part of a pattern of workplace abuse she endured at the hands of the OPA, particularly Perrone. She said that she only wanted to work with Viola to help make Ocean Pines a better place to live and work

By TOM STAUSS Publisher summary of findings from a lawyer’s investigation that found that Ocean Pines Association President Larry Perrone committed no violations of Board Resolution B-08 in interactions with former OPA department head Colby Phillips alleged that she was afflicted with “enhanced sensitivity” that colored those interactions. A summary of the investigation by attorney Michael Neary released by the OPA on March 20 generally supported the assertion by Perrone that he had acted professionally in his dealings with Phillips. {The report summary is printed in its entirely on Page 45 of this edition of the Progress.} The report cited one instance in which someone partially corroborated her interpretation of events. Phillips had been called into a meeting to discuss her involvement, outside of normal business hours, in setting up a GoFundMe for the late Andre Jor-

A

dan, a former superintendent of the Ocean Pines golf course who was suffering from what turned out to be a fatal disease. The report summary, quoting Neary, said that “Mr. Parks recalls that Mr. Perrone’s tone came across as someone dressing down an employee and negative.” Neary concluded that Perrone “did not yell in this meeting” and “his conduct was within the bounds of reasonableness for a counseling session. The support for this is that Mr. Viola and the Human Resource Manager recounted that Mr. Perrone was professional during the meeting. While Mr. Parks felt the tone of Mr. Perrone’s comments were negative, he did not describe Mr. Perrone as acting in a condescending or demeaning fashion.” In a statement to the Progress, Phillips criticized the investigation because she said that Neary contacted only three of seven witnesses she cited in her To Page 17

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OCEAN PINES

April 2021 Ocean Pines PROGRESS

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Kiwanis kids

The Kiwanis Club of Greater Ocean Pines-Ocean City sponsors five Kiwanis Student Leadership Clubs in Northern Worcester County. The clubs learn about community services and how to do them. Pictured are Buckingham Elementary School K-Kids members with Club teacher advisor Tonya Jones. The club’s project is making baskets for residents of Berlin Nursing Home containing hand-painted mug, cozy socks, handmade ornament, tie dyed mask and cards.

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Phillips report From Page 16 original complaint. Three of the four witnesses she said would have corroborated her view of events were not affiliated with the OPA and included a county commissioner, an employee of a local engineering firm that worked on the Bainbridge drainage project, and a former OPA director. She also said that the board could have obtained a more accurate and complete picture of the scope of her complaints about Perrone “had the board taken the time to talk to me.” She said the abridged version of Neary’s report and presumably the source document “didn’t cover all the details I mentioned in my conversations with Mr. Neary.” Phillips said that even the abridged version acknowledged that she felt hostility towards her by Perrone. “Nobody, not even the GM, tried to make it better or showed they cared, even when I went to Human Resources multiple times over the course of almost two years on multiple issues. The GM should have as a leader stepped up to resolve and understand what was going on.” That did not happen because, in her view, “I was targeted. There were three people very glad to see me go as I truly believe that was their intention.” She declined to name the individuals. In one meeting where her alleged hyper-sensitivity was discussed, Phillips said that OPA Vice-President Colette Horn told her “she was too sensitive” and Viola told her she had “minimal emotional intelligence. They tried to make me look weak.” She said that in her opinion, the abridged summary makes the OPA “look worse” than if they had not responded in public to her allegations. She said that sensitivity to others and situations is not a weakness but a “superpower.”

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GM moving ahead with innovative pipe ‘enhancement’ Directors approve $207,000 contract By ROTA L. KNOTT Contributing Writer aving just celebrated groundbreaking for significant stormwater improvements in Bainbridge Park, the Ocean Pines Association is turning its attention to a dozen other aging and degraded drainage pipes in need of replacement throughout the community. During his March 20 report to the Board of Directors, General Manager John Viola said the contractor will use an innovative system that allows pipe replacement without digging up the road bed or disturbing traffic flow and that will reduce project costs. “We talked about this new type of pipe,” Viola reminded the board.

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“The county had used it. We did a lot of research on it. We got a lot of recommendations.” Viola said $500,000 was included in the fiscal year 2020-21 budget for the project and the board approved a contract for $207,167 with contractor Pelican Underground LLC, a firm based in Louisiana. “The big thing with these pipes we don’t have to cut into the road,” he said, adding,“We’ve gotten some really positive feedback” and the innovative system will save the OPA money when compared to the cost of a traditional system of digging up pipes for removal and replacement. The system allows for pipes with equal or greater capacity than exq

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April 2021 Ocean Pines PROGRESS has developed a plan to improve the area including a retrofitting Bainbridge Pond to meet current Maryland Department of the Environment standards, enlarging its capacity to hold stormwater. With nearly 10 percent of properties in the community draining through Bainbridge Pond to a culvert under Beauchamp Road, the OPA was able to secure grant funds to aid in making significant stormwater management improvements in the catchment area. The Bainbridge Pond project includes a pond retrofit and outfall improvements. The project is designed to improve water quality and increase the outfall capacity to meet current standards, improve downstream drainage at swales and ditches, and increase protection of the nearby homes. The total estimated project cost is $800,000, with the Maryland Department of Natural Resources providing nearly $550,000 in grant funds toward the improvements in Bainbridge Park. The OPA will cover the remaining cost.

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New server seems to have cured OPA Website problems So far so good, says OPA marketing and public relations director By TOM STAUSS Publisher ecent outages of the Ocean Pines Association Website apparently have been cured by new server capacity installed by OPA’s software vendor NorthStar, with OPA Marketing and Public Relations Director Josh Davis cautiously optimistic that the outages experienced during the week ending March 20 are over. “So far so good,” he said after the Website was back on line March 18 after at least two days of outages. NorthStar’s new servers were on line the same day that service was restored, which makes it like-

R

ly that the new servers were partly or solely responsible for that restoration. Frequent disruptions in the every day usage of NorthStar has been attributed, “in layman’s terms to problems with capacity,” General Manager John Viola said at the Feb. 20 board meeting. He said more or less the same at the board meeting in January. The irritations were sufficient that the OPA and its partners at the Yacht Club, the Matt Ortt Companies, decided to abandon the NorthStar Point of Sale systems with software that MOC managing partner Ralph DeAngeq

isting culverts, and installs with a space between the new and old pipes that is filled with cellular grout. The pipe joints are watertight and secure, and have an indefinite service life. Work will begin in early April to replace 12 drainage pipes, including four pipes under Ocean Parkway at Route 90, and individual pipes at 215 Ocean Parkway, 159 Ocean Parkway, 736 Ocean Parkway, 30 Offshore Lane, 102 Robinhood Trail, Fosse Grange, and the four-way intersection inside the South Gate of Ocean Pines. Viola said the Public Works yard will be used as the contractor’s project staging area for materials. Public Works employees Nobie Violante and Justin Riner will oversee the work and Public Works Director Eddie Wells will interact with the contractor to provide internal support. Meanwhile, the Bainbridge Pond project got under way the week prior to the March 20 board meeting and is expected to be complete by the end of June. Working closely with Worcester County and state agencies, the OPA

19


20 Ocean Pines PROGRESS

OCEAN PINES

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Wall that Heals exhibit

The Wall That Heals, a three-quarter scale replica of the Vietnam Veterans Memorial in Washington, D.C., will be hosted in Ocean Pines by the Worcester County Veterans Memorial Foundation from April 22 to April 25 at 1 p.m. The wall will be set up in Memorial Park, in Ocean Pines. The Worcester County Veterans Memorial committee overseeing the event is seeking volunteers, who will each be trained to guide visitors through the exhibit. The committee needs volunteers from Wednesday, April 21 at 2 p.m., through Sunday, April 25 at 1 p.m. Some overnight shifts may also be available. Most volunteer shifts are for four hours: 8 a.m. to noon, noon to 4 p.m., and 4-8 p.m. To be a part of this experience, contact Frank Bolen, volunteer coordinator, at 302-245-5216 or email frankieb@mchsi.com.

Website cure From Page 19 lus knew from experience worked well. Several weeks ago on a Saturday morning, Viola said DeAngelus texted to let him know there were significant issues with the NorthStar software at the Clubhouse. “I told Ralph we’ve got to pull the plug on it. I hate to use that term. I asked him how long before he can go back to the system that [we had used previously]. And this was all part of what we discussed. How to back up if this didn’t work out over X amounts of trial days.” Viola said it took about three days to revert to the previous pointof-sale system at the Clubhouse Grill. He noted that the facility

was closed anyway on that Monday through Wednesday so there was no disruption to service. “I believe he got it up and running by Thursday,” Viola said of DeAngelus re-implementing the previous POS software. “So we are back to the system we had there.” He said the OPA will continue to address implementation of the NorthStar software in what he called a “sandbox scenario,” instead of going live with it, outside of the food and beverage operations. As for implementation at the Yacht Club, Clubhouse Grille and the Beach Club, he said, “I put a hold on that.” Viola previously had indicated that the NorthStar POS software would be used at the Yacht Club this summer.

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Board to pursue ‘self-evaluation’ in effort to improve performance Horn’s proposal is designed to help heal turmoil among the directors

By ROTA L. KNOTT Contributing Writer earching for a way to increase professionalism and assess accomplishments, the Board of Directors seems intent on implementing a self-evaluation process that will examine the performance of individual directors and officers of the Ocean Pines Association. The proposed self-evaluation process is the board’s response to internal turmoil involving the recent resignation of Director of Amenities and Logistical Operations Colby Phillips and efforts to oust Larry Perrone as OPA president and Director Tom Janasek from the board at different times during the last eight months. Director Colette Horn presented a draft self-evaluation questionnaire during the board’s March 20 regular monthly meeting. She said the board had previously agreed that a self-evaluation process would be used as a tool to examine director and officer performance and to develop plans for any areas in need of improvement. As background, she said “the OPA membership and its board of directors recognized that it is time to take stock and refocus to ensure the board and its members are clear on purpose, roles and strategies for improvement in performance.” In the for-profit business world and well as the nonprofit world, stakeholders are increasingly expecting to see self-evaluation as a measure of effectiveness and accountability, she said. Horn said the draft self-evaluation survey included in the meeting packet aims to examine four broad categories: board mission and purpose, board and management relations, board composition and director performance, and officer performance. In response to property owner comments during the public comments section of the board meeting that the self-evaluation shouldn’t be conducted during regular meetings, Horn said the March 20 discussion was meant for transparency purposes. “This is not a process that we

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intend to take place as part of our public meetings. This is work that we as a board need to do. The board majority, the respondents to the member survey from a couple of years ago, emails we’ve received all reflect agreement that what we’re looking for here is professionalism on the board as well as running the whole operation of OPA in a businesslike way. The board’s role in that businesslike process is to raise its level of performance to the highest level of professionalism that we can.” Horn acknowledged that there has been conflict on the board in the past. “We have had conflict. We’ve been able to work through that conflict, sometimes through director attrition, through discussions on the board, through various different means,” she said, adding that self-evaluation is simply another tool the board can use to resolve conflict. “It’s not about pointing fingers, solving problems. It is about moving the board forward,” she said. During public comments, Esther Diller, a former OPA director, asked

why the self-evaluation was on the agenda. “During my brief time on the board, I never remember us doing this type of evaluation,” she said, adding, Colette Horn “stop giving yourself so much self-worth.” She advised board to “stop all the

April 2021 Ocean Pines PROGRESS

21

nonsense. Work together,” seeming to suggest that Horn’s proposal was a waste of time. Director Camilla Rogers encouraged her fellow directors to move forward with the self-evaluation process. “I think it’s going to be a very helpful tool. I think it’s going to open up some avenues for discussion,” she said. OPA President Larry Perrone said he agreed “with this approach and hopefully this will be beneficial for the entire board,” he said. He said the questionnaire will be distributed to the board and next month directors can meet in closed session after everyone has had an opportunity to complete the form q

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Self-evaluation From Page 21 and discuss the outcome of the survey. “In this business world, what’s happening is that boards are tacking a brief closed session onto their meetings to conduct this kind of self-evaluation and have these discussions. We’re not talking about setting aside huge amounts of time but that this type of thing becomes kinda of an ongoing process to keep boards focused on the accountability to the stakeholders and transpar-

ency to the membership, as well as the professionalism that the membership deserves from us as we conduct our business as a board,” Horn agreed. Director Doug Parks said the timeline for the self-evaluation process stretches from March to May of this year He questioned the need for a fourmonth long process and said that schedule doesn’t indicate any sense of urgency for the board to address its outstanding performance and professionalism issues in this way. “That schedule to me sort of dic-

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tates that maybe it’s just an ongoing thing that will be developed over time and maybe that’s the intent,” he said. Horn said the board has committed to keeping OPA property owners informed as to actions it intends to take, and tools it plans to use to increase the level of professionalism and ensure the board is operating effectively. She asked for enough time and patience from the membership to allow the process to unfold. She said she expects the closed session review of the survey results to generate some recommendations for the board that can be reported out to the membership. “I think part of our discussion is how we want to use this tool and do we want it to be an ongoing process or is it a static process,” she said. “I think that’s part of the discussion we may want to have in our closed session next month to come to some consensus agreement about how to go forward,” she said. Director Frank Daly said he has been through this type of process in the past and there are two aspects to it. The proposal before the board addresses only one of those two aspects of self-evaluation in how directors work together, he said. The second part, which is absent from the plan, is annual goal-setting and reporting out of achievements, Daly said. He said the board should at the

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beginning of the year clearly state to the community what it plans to achieve and measure results each year. “Because working well together and achieving nothing doesn’t solve any problems in the community,” Daly said. “That’s a great point, Frank,” Horn responded. “I would certainly agree with that.” She added that during the three and a half years that she has been on the board, directors have achieved a lot “but I think that we have not been explicit in articulating those goals and those accomplishments to the public.” Touting his long-time executive level experience in corporate America, Parks said he too has been through this process before both at the executive levels and interacting with boards of directors for the organizations. “I’ve seen mixed results, sustainability is one of them. As boards change as things happen within the organization the sustainability of something like that tends to wane a little bit.” Since it seems to be a long self-evaluation process, Parks wanted to know how the board will manage its environment in the meantime. “Are we just accepting it and expecting a change in four months or are we actively managing it as we go through?” He suggested an alternative approach of focusing on recent accomplishments, trying to identify some future accomplishments and measure performance against those potential objectives. “I think that in and of itself would help the interaction among us as we share opinions on where we’re going as a board and the things that are relevant to the community,” Parks said. He said he is not enthusiastic about filling out a survey and expecting results to come from that document. “I’m not saying it’s not fixable. I’m just saying that I would also want to look at other ways of getting to that point of where we are actually producing and managing ourselves appropriately for the membership.” Horn stressed that filling out the survey is a minor part of the self-evaluation process. “The survey gives us some discussion points, and I think the survey will help us identify those discussion points that are most salient to our current performance concerns,” she said.


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April 2021 Ocean Pines PROGRESS

Yacht Club ballroom gets touch-up courtesy of Public Works team DeAngelus optimistic following Hogan’s lifting of capacity limits

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tality in the face of declining covid pandemic numbers. With Hogan’s order, the county’s

restaurant industry is back in business, full-time, while still required to maintain social distancing poli-

The hallway between the banquet room and the bridal suite.

cies such as tables six feet apart and mask mandates when a patron is not consuming food or drinks. Generally that means that when seated patrons are not required to wear masks. DeAngelus welcomed Hogan’s announcement and said it means that the Yacht Club is more or less back to business pre-covid. “Our tables were generally set six feet apart even before covid,” he said. The strategy during the pandemic was to place more tables on the expansive outdoor deck to maintain social distancing and keep roughly the same number of tables in use. The governor’s latest directive means fewer tables outside and more tables inside, still maintaining the six feet of space between them, he said. The governor’s directive also removed restrictions on the size of weddings, and that can only help the OPA’s vibrant wedding banquet business, which he said was already likely to see improvement this year. That cause was aided and abetted q

By TOM STAUSS Publisher alph DeAngelus, cofounder of the Matt Ortt organization that manages the Ocean Pines Yacht Club and other Ocean Pines restaurant venues, is thrilled with the mid-March directive from Gov. Larry Hogan lifting capacity restrictions at restaurants in the state. He’s also thrilled with recent improvements at the venue which he believes will make a banquet business bounce-back post-covid even more likely. While the order continues Hogan’s policy of giving local jurisdictions the authority to continue more restrictive policies, Worcester County is not one of the Maryland sub-divisions prone to a lockdown men-

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The refurbished bridal suite.

The refurbished banquet room.

were a result of that conversation. Public Works Director Eddie From Page 23 Wells said the project included reby several recent renovations and moving wallpaper and painting the improvements on the upper level of ballroom and second-floor hallway, the Yacht Club, designed to enhance as well as changing all lightbulbs to the experience of weddings and oth- more efficient LED lighting. er special events hosted there. In the bridal suite, Public Works General Manager John Viola met replaced the carpet, painted, in November with DeAngelus to dis- changed out the lights, and put new cuss maintenance for the Yacht Club outlet covers on all the light switchΊΙΙΛΘΟΎ΍ ψϟ ΎϊϝχϘϊ ΕϏχϔ facilities, withGeorges an emphasis on banPrince Cnty Md es. ΍χϚϋͧ йрͿкйͿлйкт Public Works finished the work quets. The renovations that followed ΎϞϖ ϊχϚϋͧ йрͿкйͿлйлй during three weeks in January, Price: 98.500 (00.00) Ί΍и while the Yacht Club was closed. Ocean Pines had budgeted $14,500 Coupon: 3.25 (00/00/00) for the project, and the Public Works When should you07/15/2036 start receiving Social Security? Maturity Date: (00/00/00) team came in under budget. DeAngelus is hopeful that the im07/15/2028

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provements will help boost business. “Public Works did a great job with the repairs and maintenance,” he said. “They got everything completed under budget and ahead of the expected timetable. Their hard work sets us up for a record-breaking season.” Lia Isel, who manages weddings and events for the Yacht Club, said she is grateful for the efforts of Public Works. “They have been such great sports about the work and process this year,” she said. “It just goes to show what a little paint and new carpet can do to showcase this great venue.” Isel said she continued to offer

tours and book weddings while the renovations occurred. “Everyone that toured during this time didn’t mind seeing the work in progress, and they actually loved the fact that the Ocean Pines Yacht Club tries to keep it fresh and kept up for all our future events that are held there,” Isel said. “They all said it showed we cared and took pride in our venue. “The Yacht Club has also been continuing to do food sample tastings with our 2021 couples that have already booked with us, and they are completely blown away by how great the room looks and are excited to be moving forward with the wedding process this year,” she said.

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Daly says Chesapeake Waste Mgt. not interested in entering into Ocean Pines trash arena Seagull Disposal is considering offering a once-a-week alternative to Republic Services

By TOM STAUSS Publisher lthough there is nothing letally preventing Chesapeake Waste Management from providing trash collection services in Ocean Pines in competition with Republic Services, it appears that the company is not interested in entering the Ocean Pines market. That information comes from Ocean Pines Association Director Frank Daly, who’s been in contact with representatives of Chesapeake in the weeks following a unanimous vote of the Board of Directors in December to renew a contractural arrangement with Republic Services for twice-weeky trash collection services in Ocean Pines. Daly said the contract with Republic is non-exclusive, a fact that seemed not to be initially understood by a Chesapeake executive Daly spoke to. That executive was

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going to explore the possibility of competing in Ocean Pines for business, Daly said, adding that the company was going to have to make a business decision on whether competing against a company with an established customer base makes economic sense. Apparently it doesn’t, as Daly said he’s not heard from any Chesapeake executive since reaching out in January. However, the Progress has learned that there is a company based in Ocean Pines and Eden, Md., that is willing to provide trash collection services in Ocean Pines. Its called Seagull Disposal, with an address at 13 Harborview Drive in Ocean Pines. Its phone number is 443-8800809. Its Website promotes the fact that there are no delivery fees, environmental or “unnecessary” surcharges.

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Andew Duley, owner of the business with another family member, said he is very interested in providing services to Ocean Pines but, after a conversation with Daly, agreed he needed to consult with his own attorney to confirm the judgment of the OPA that Republic’s contract with the OPA is non-exclusive. Seagull Disposal has a list or more than 100 potential customers who have called in from Ocean Pines inquiring about service. Duley said the most likely scenario for his company would be to offer once-a-week collections with no recycling. This would set it apart from Republic, which offers both as part of its core services to Ocean Pines customers. He invited anyone who is interested in an alternative to Republic to call in, with the understanding that his company is still in the information-gathering mode and needs more time to decide whether to offer services to Ocean Pines. Daly said that if Chesapeake had indicated an interest in competing in Ocean Pines, he would have been willing to check with his board colleagues to see if they were willing to facilitate a separate agreement with that company. Strictly speaking, no such agreement may be necessary, as Ocean Pines roads are public-access supported by state gasoline tax revenues and the OPA is already on record believing that the Republic contract is non-exclusive. But Duley said he would want to have a cordial working relationship with the OPA and would want to make sure the OPA was on board with a competitive environment. “I was told by Public Works some time ago that the OPA didn’t want to have multiple companies picking up trash because of wear and tear on the roads,” he said. That attitude may no longer be operative, although it was a concern when the OPA first opted for a trash collection service on behalf of residents decades ago. Pines customers are paying more

April 2021 Ocean Pines PROGRESS

25

for service than they were last year. Republic’s successful bid for twice-weekly trash collection and once-a-week recycling pick-up was $24.20 monthly, billed quarterly in the amount of $72.60. The old rate was $20.27, or $60.81 quarterly, with an additional $3.60 charge for an optional 95-gallon container. Three years ago, Republic was the low and successful bidder for trash and recycling collection services for $19.68 a month or $59.04 billed quarterly. The company has availed itself of a provision in the 2017 contract that allows it to raise rates by up to three percent annually, a provision that would be included in a new contract as well. The increase from the $19.68 per month rate in 2017 over the new rate of $24.20, or $72.60 quarterly, works out to 23 percent, well in excess of inflation and by far the largest increase in trash collection services ever recorded in Ocean Pines. The bid submitted by Chesapeake was significantly lower than its competitor’s bid for residential collection services. Including both trash pick-up and recycling, it was very close to Republic’s bid from three years ago. Had the Chesapeake bid been approved by the board, residents would have been paying less for trash collection services than they had previously. In the 2020 bidding, Chesapeake submitted a proposal for annual twice-weekly trash collection and once-weekly recycling totaling $19.28 per month. It was even lower at $19.08 for six-month residential contracts. Chesapeake’s quarterly billing would have been $57.84 for an annual contract and $57.24 for a sixmonth contract. The quarterly difference between Republic and Chesapeake was $14.76. That’s $59.04 more per year that homeowners will be paying as the result of the board’s decision to retain Republic. While residential customers will be paying, the OPA will realize a reduction in fees charged by Republic for collecting trash at the OPA’s various facilities, however. Fees are being reduced from $26,525 in the 2017 contract to $25,143 in the new contract. Chesapeake would have charged the OPA $30,840, a difference of more than $5,000.


26

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April 2021 Ocean Pines PROGRESS

OCEAN PINES BRIEFS

General Manager John Viola announced at the March 20 Board of he said. “There’s a lot of information Directors meeting that the old play- there about every department ground equipment at Robin Hood [and] every amenity. It’s been put together to give an education to the 40 Ocean Pines PROGRESS July -had Early August 2014 Park in South Ocean Pines … as well as future or been demolished, with replacement homeowners the performance matters program inSchool board set to start on current board candidates that are of that equipment stead. From Page 40 Zanichtoand gaveabout brief looking getHenderson information March 22. overview of the program, how it is used, tiesHe and to have a health and wellness Pines.” said Ocean Pines budgeted for Ocean committee site coordinator who oversees and the benefits of an assessment data Viola made his comments during two committee. new playgrounds, also includ- system. this the March 20 meeting of the Board The performance matters platforms ingInone at Bainbridge Park, where the area of staff wellness, the pollink student and educator data. The icy states that the Worcester County Directors. drainage improvements have just of data is used to drive the decisions made public begun.school system will promote staff by teachers, administrators, board memhealth and wellness by providing a variety of organized programs for staff, Ocean Pines Academy designed to enrich and improve their nutritional, physical, mental and emoto roll out very soon tional well-being. General Manager Hohn Viola The Board of Education during its said 17 a meeting team also led heard by Marketing June an update on the performance mattersMalinowski program. Coordinator Julie Worcester County Public Schools recently turned in materials for the uses a variety of types of data to create Ocean Pines Academy, a “virtual, its master plan, goals, and instructional self-paced civic education course programs. “Over the yearsPines we have discovered about the Ocean Association.” that this could be an arduous task. It A workgroup led by Malinowski had become an overwhelming burden to started work the for project our teachers. We on searched a way in to December. support our teachers in the use of this data,” Coordinator of Instruction Steph“Every department was involved,” anie Zanich and Data Specialist Rebecca Viola said, including Public Relations Henderson said in their written report and Director Josh Davis, to theMarketing board. Theproduced school system usingfor a who videostarted segments program called Edusoft but quickly disthe Ocean Pines Academy. covered it was not robust enough. Using “We’re looking at a roll-out [soon],” Race to the Top funding, it purchased

OPA worker tests bers and parents to improve student learning andfor educator performance. The positive covid

system canPines be used for teacherGeneral observaOcean Association tion and evaluation. Manager John Viola early in “We believe that in using dataMarch we can issued a statement a student. worker better meet the needs about of every It is tested part of positive our success helping our who for in covid-19. students be successful Zanich “An employee in for ourlife.” Adminissaid. tration Building recently The school board also adoptedtested an uppositive for COVID-19. employdated educational facilitiesThe master plan, which required annually to be 10,” subee wasislast at work on March mitted to the Maryland Department of Viola said. “The employee has not Planning by July 1. returned to workPlan andiswill not unThe 2014-2015 presented in fiveitsections: and guidetil is safe goals, to do standards so consistent with lines; protocols. communityWe analysis; CDC notifiedenrollment the local projections; inventory and evaluation of health department of the situation school facilities; and facility needs analand cooperate public ysis. will All five sections fully have with been revised to reflect current We information, including health officials. understand that updates on the successful bidding phase the employee had no close contact and start of construction for the Snow with residents other employees. Hill High Schoolorrenovation and addi-

“We continue to stress the need to practice sound hygiene by frequently washing hands thoroughly, maintaining six feet of separation between others, and wearing masks tion project and the completion of the when indoors or when social disShowell Elementary School feasibility study. is not possible.” tancing

The plan outlines the challenges facing the schools system, including popuTerra Firma of Delmar lation growth, aging buildings, technolawarded repair contract ogy needs, and changing program needs. A major renovation and addition or Terra Firma of Delmar, De., has replacement school project at SES has been awarded the contract to combeen prioritized in both the school sysplete of pickleball courts and tem’s repairs educational facilities master plan and tennis the capital improvement the Har-tru courts inprogram Ocean for many years. Pines. The contract, which also inIn May, the school board voted to cludes striping of the courts, move forward with planning forwill the cost the Ocean Pines Association construction of a new Showell Elementary School, based on the results of the $35,738.83. Showell School study. was The A second bidfeasibility for $84,0555 board accepted the recommendation of submitted by aand Parsonsburg the architectural engineering conteam struction company. led by Becker Morgan Group to proceed with theBoard designofofDirectors a replacement school The approved at an anticipated cost of about $37 milthe Terra Firma proposal at the lion. March 20 monthly meeting that of the The consultant determined the board. construction costs were comparable for renovating and expanding the existing school versus a completely new Board OKsbuilding members facility. Because of the extensive nature of Search Committee of the renovations and expansion that would be two required, that opAfter yearstheofcost no ofappointtion was estimated at $36.8 million. On ments to the Ocean Pines Associathe other hand, the consultants said a tion’s Committee, membrand Search new school could be two constructed

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bers of the group were appointed during the March 20 monthly board meeting. The search committee is charged with encouraging property owners to run for the OPA board. OPA by-laws specify Feb. 1 as the deadline for appointing Search WORCESTER COUNTY Commtitee members. on the same SES property for slightly The board unanimously approved more at $37.4 million. TomOverall, Piatti, after a former board-appointincluding design and management fees, playground equiped director and current member of ment, movable equipment, portable the Budget and Finance Advisory classrooms, phasing of the renovations Committee, totechnology the Search Commitand additions, costs and mistee. cellaneous costs like inspection fees, it will lessbe expensive bythe about $4 milHebewill joined on panel by lion to build a new school than renovate Andie Davis, who was also appointand expand the old one. ed to the Strategic Planning AdvisoThe cost of keeping the current buildry Both appointments ingCommittee. but renovating it and adding on was $44.8unanimously million while approved the total estimatwere by the ed cost of building a new SES was just board. $40.9 million. Other committee Finally, advisory during the meeting apthe school boardapproved approved at thethe fiscal year pointments March 2014-2015 operating were budget for Worces20 board meeting Yvette Tater County Public Schools. nious to budget and finance and Bob The budget includes funding for salO’Malley to racquetforsports. ary step increases eligible employees, a longevity step, a .5 percent cost

of living allowance, a 3 percent increase Campaign continues for bus contractors and an 8 percent to cleaninmossy roofs increase insurance rates. The bud-

get also Board includesofmajor expenditures The Directors at itsof $354,000 replace gymnasium floors at March 20tomonthly meeting authoBerlin Intermediate, Pocomoke Middle rized General Manager John Viola and Snow Hill Middle schools, $144,000 to moss-or-algae-infested roofs toclean replace gymnasium bleachers at Stephen Decatur High School and $200,000 of three Ocean Pines homes, with in non-recurring costs for student technology.

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OCEAN PINES


From Page 27 the cost to be added to the annual lot assessments on these properties. The work would be completed by Public Works or a contractor hired by the OPA. Found to be in violation of Ocean covenants or guidelines were homes at 4 Raft Road, 19 King Richard Road and 9 Camelot Circle. The roof maintenance enforcement actions are similar to those taken in previous months.

Notice for board meetings clarified

There is a common perception or belief that OPA by-laws require the board to give the membership three days notice of board meetings. That’s generally been the practice, but the by-laws don’t actually require it, according to OPA Director and Treasurer Doug Parks. Parks was responding to a complaint by a property owner during the Public Comments segment of the March 20 board of directors meeting. The owner was critical of the fact that the agenda for the March 20 meeting was not posted three days prior. The agenda included a scheduled vote on shortterm rental amendments to the Architectural Review Committee guidelines. Parks said the three-day notice of pending board regular special meetings is required for board members, but that language doesn’t encompass notice to OPA members. Given the heavy degree of interest in the topic of short-term rentals expressed before and during the March 20, the vote was delayed until the April board meeting.

Platform Tennis Club to honor Freeman

OCEAN PINES

April 2021

The Ocean Pines Platform Tennis Club will host its third annual benefit tournament on April 24, at the Ocean Pines Racquet Center. The club has dedicated the tournament to Jim Freeman, a platform tennis member who passed away on March 15. The Platform Tennis Club will donate all tournament proceeds to Semper Fi and America’s Fund, a nonprofit “dedicated to providing financial support to combat wounded, critically ill and catastrophically injured members of the U.S.

Former OPA Director Esther Diller urges OPA members to ‘get involved’ in newly created watchdog group Says everything in Ocean Pines is ‘not OK’ and directors need to do better at heeding property owner concerns By SUSAN CANFORA Contributing Writer hen the newly formed group Get Involved organized in middle to late February, hundreds of Ocean Pines residents joined, eager to see change in Ocean Pines and to talk to the Board of Directors about a variety of concerns from allowing short-term rentals to dogs running unleashed. Founder Esther Diller, who was elected to a one-year term on the Board in 2018 and served for ten months before a health issue forced her to resign, strongly believes the Esther Diller scores of residents who quickly signed up to join the group will better the community. “Voices make for change. Never forget that,” Diller told about 25 members at the Wednesday, March 17, Get Involved Zoom meeting. More than 500 people had joined by March 21 and many regularly participate in Facebook page discussions, but only a couple dozen gathered for that meeting. “It can’t just be 20 or 25 people trying to speak for 500 people,” Diller told them, adding the idea is not to intimidate board members but to show them “there is a lot of talent in this group and we can help with decisions and making changes.” Diller’s husband, Stuart Lakernick, is an announced candidate for the board this summer, but in a recent interview with the Progress she made it clear she did not intend to use Get Involved as a campaign tool to help him get elected. She said she is encouraging as many people as possible to run for the board, candidates who might garner more votes than he does. She also denounced rumors that suggest Get Involved is trying to oust John Viola as general manager with the intention of replacing him with former OPA department head Colby Phillips. Phillips, in fact, has said in an online post on oceanpinesforum.com, an online message board, that she would not accept the position even if offered. When she wrote a letter to board members, telling them about Get Involved, Diller said she was disappointed that, within one hour, a board member shared it with oceanpinesforum.com, but none quickly responded to her. Board member Doug Parks posted on the Get Involved Facebook page that he and Diller have talked about the organization and he asked that “the board” not be used as a generalization “as there are some of us that are listening and do understand there are issues that cannot be addressed without membership involvement.” Parks said he had been busy but was not ignoring Diller or the group and would respond. Board President Larry Perrone shared with the Progress a letter he sent to Diller, telling her board members “encourage members to become engaged by attending our board meetings and volunteering for the many work groups, committees and initiatives we are pursuing. “We continue the practice begun last year of conducting public comments in an interactive way by answering questions and concerns raised by members We receive and respond to many emails from members seeking information or assistance,” Perrone wrote. “We work with the Public Relations and Marketing Department to publicize information through press releases, e-blasts, the OPA Website and the OPA Facebook page.” He said the board and general manager also make themselves available to the press for stories they are writing. “We have committed to holding three town hall meetings each year, a practice that was derailed this year by the pandemic restrictions. We hope to resume this practice based on the input from the Communications Advisory Committee and concerns expressed by the membership,” he said. He said board members encourage Ocean Pines residents to be active in advisory committees or run for the board and announced the new Ocean Pines Academy will provide information about operations, departments, amenities and governance. Diller, who has owned property in Ocean Pines since 2013 and lives in Bucks County, Pa., when not at her Ocean Pines home, told the Progress that frustration among homeowners is far-reaching. “The people of this community are still reeling from the loss of (Director of Amenities and Operational Logistics) Colby (Phillips. They are very turned off. The board wants us to give them time. Wait a second. You guys are working for us. (Director) Colette Horne said give them time to heal. She is asking our community, 12,000 of us, to sit around and wait? You’re here for us. You work for us. We don’t work for you,” Diller said. At the March 20 board meeting, more than 100 residents were logged in virtually, a sign Diller is convinced

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28 Ocean Pines PROGRESS Ocean Pines briefs


OCEAN PINES signals residents yearn for innovation and revision. Board members said instead of voting on whether or not to continue to allow short-term rentals in Ocean Pines at that meeting, they would host a town hall meeting on April 17 to discuss the issue in more detail. But Diller said if they do, and the meeting is in person instead of on the Zoom platform, only 50 people will be allowed to attend, due to coronavirus restrictions. She is asking residents to sign a petition calling for that meeting to be virtual. She’s hoping by March next year, communication will have improved between OPA members and board members and candidates from various backgrounds will be running for seats on the board. “Not the same demographics. We should have some family guys, business people, the stay-athome mom,” she said. Get Involved members want to talk to the board about how to regulate short-term rental properties, the succession plan for general managers and other top employees, communication and the image of the community, Diller said. “The board wants to ban all short-term rentals and people are saying that isn’t fair. We will talk about, what are some solutions?” one woman said during a Get Involved Zoom meeting, adding associated problems include noise, over occupancy, too many cars and trash not contained. “You can’t penalize everyone who owns rental properties. We have to have sanctions for people who violate rules. I have a rental property in Ocean City. There have been problems with a handful of them. We can’t just say we don’t like this. We have to give them some alternatives for a solution,” the woman said. The proposed amendment to the Architectural Review Committee guidelines pertaining to shortterm rentals are regulatory, stopping well short of banning them altogether. The proposed regulations closely track county regulations, but impose licensing and inspection rules and fees that opponents regard as overkill, given there have been only four problem properties reported compared to hundreds of rental properties in Ocean Pines. Another participant said board members generally have not had experience necessary to make effective decisions. “There is nothing wrong with somebody who has experience from the past saying, ‘Hey, you know what? I’ve been part of this before …and it looks like you guys aren’t in the right time line for getting this done.’ I think that’s a good way to offer help without just telling them to change,” she said. A 20-year resident said past general managers “bring shudders to my heart. “We had a possible successor in Colby but that’s been removed, so I would like to work on a process so we can look at these people [who want to be general manager] and not just their resumes and not just their interviews. There must be something we are missing,” she said. The discussion turned to why anyone would want to be general manager if the board is “meddling in every decision being made.” “The Board of Directors doesn’t function as a

April 2021 Ocean Pines PROGRESS

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Seacrets seeks reduction in Beach Club parking rent

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he Ocean Pines Association and Seacrets Nightclub in Ocean City are negotiating another one-off exception to the current five-year lease on OPA beachfront and bayfront property. Last year, the OPA agreed to an adjustment reflecting covid conditions in Ocean City. Seacrets owner Leighton Moore is not requesting that this year, according to OPA General Manage John Viola. But he asking for a reduction in the $75,000 estimated lease amount that would be expected with the normal three percent adjustment called for in the contract. “They say they’re not using the Beach Club parking lot after hours to the same extent as before,” Viola said. It’s mostly used for employee parking, rather than overflow parking for Seacrets patrons, he added. The board discussed the issue in closed session March 26 and seem to be holding to the position that no adjustment is warranted if the parking lot is still be used for parking, Viola said. “The ball’s in Seacrets’ court,” and it’s possible that Moore will decide to continue leasing the bayside property only, Viola said, implying that an adjustment would then be considered. OPA Director Frank Daly said the board discussion March 26 was informational in nature, with the directors receiving an unpdate on the status of negotiations with Seacrets. “We are asking for their best and final offier,” Daly said. The OPA and Seacrets have had a business relationship that stretches decades. Last year, the OPA began leasing property in Bishopville controlled by Moore for use as a bulkhead staging area.

board but instead [try] to manage the general manager,”one attendee said, adding that many long-term employees have quit, illustrating that the right general managers are not being hired. Board members, he said, seem to think once they are elected they will make all the decisions and not listen to residents. “Even when people show up at meetings and express an opinion, they can’t ask questions, there is no dialogue. It just isn’t functioning as it should,” he said. Referring to an editorial in a local weekly newspaper, a resident said the perception is the board will “work on problems in secret and ‘we won’t tell you because it’s a secret.’ Our community is looked at as a laughing stock in the area and that has to change.” Phillips, who recently resigned from her management position with the OPA and who is now Executive General Manager at Captain’s Cove in Virginia, was also at the meeting and said although said she owned a home in the Pines for years -- she now lives in Berlin -- she wasn’t always up-to-date on Board activity. “Now I tell my friends, pay attention and vote because who you are putting in that position is affecting you … when you feel like you can’t have a voice it is a very bad position to be in,” she said. Concerning the board communicating with residents, Diller suggested notes be taken during board meetings and that board members listen carefully, then reply in time, even in the community newsletter, instead of the current method of letting the public speak and not answering at all. Another woman said she feels residents can’t “voice your opinion without somebody coming after you.” “In my heart of hearts I was almost ready to move back up to New York. That’s how bad it was,” she said, recounting a negative experience contacting Public Works about drainage. After a year she was told she was on a list to address the

matter, then told her ticket was lost, then directed to call again “and it’s back to where it was,” she said. “Change will never happen, never, unless you aggressively help it to happen,” Diller said. “I understand human nature -- you get out, you get fired up about something, then you get back to your life. Before I ran for the board, I didn’t know what was going on. I came up with the name of this group because I want people to get involved. They don’t feel their voice will be heard. What I do feel, especially in large numbers, is, you will get heard. It’s in the presentation,” she said. “I have been a civic activist, and my parents have, my entire life. It is our right to question, to challenge and hold accountable our board and our general manager. The problem is with all the craziness recently, this community should be helping to right this ship. As a watchdog group, we can do that in a professional manner. I don’t want the hate. This is not a witch hunt,” she said. Instead, she called for communication, calmness and transparency. “I don’t want anybody to grab their pitchforks. You can’t do that in this group. I am hoping we grow and become long standing. When covid is over, I hope we have a big picnic. How about if we start looking at each other a little bit?” she said. “I won’t tolerate people being cruel or degrading to each other. Be honest, but if someone is belittling someone else, that won’t be allowed. I want people to know they can bring their problems. I want this group to feel comfortable,” she said. Diller said it’s important to work with the board and not be combative. “You have to have a very clear mission statement,” she added. “Maybe nobody ever thought to do this. Or maybe they didn’t think it could be done. But I’m not going to be intimidated. I’m not going to be silenced and pretend everything is OK,” she said.


April 2021

Colby Phillps thanks Bertino for shout-out during Bainbridge groundbreaking

Former department head not invited to event commemorating work in securing state grant By TOM STAUSS Publisher ormer Ocean Pines Director of Amenities and Logistical Operations Colby Phillips was not invited to the March 18 ground-breaking of the Bainbridge Park drainage project. Even if she had been, she might not have been able to attend, because she started work March 15 in her new role as Senior General Manager of Captain’s Cove, a community located located just south of the Maryland-Virginia line. But her absence was noted by one county official, County Commissioner Chip Bertino, who cited Phillips for her role in securing a state grant for the project. OPA officials, in contrast, did not mention her role during remarks delivered during the groundbreaking, reserving praise for staff other than Phillips. The Progress reached out to Phillips for comment on the ground-breaking of the Bainbridge project. “Bainbridge was a project I am very proud of and worked very hard on,” she said. “When I became involved in drainage the summer of 2019, [OPA Public Works Director] Eddie Wells and I met with several homeowners who shared with us the issues they were having. After hearing about the earlier work Commissioner Jim Bunting did on trying to help Sections 2 and 3, we looked to move forward with ways to improve the issue even more.” She said that numerous studies had been done over two decades “on the Bainbridge area so we had some some of that info to go off of. At first I was told we would never get any money to help us, because we are an HOA and not a municipality. I personally took that as a challenge,” and it was her work with county and state officials that resulted in a $549,000 state grant that is funding the Bainbridge project. “Vista Design was brought in along with Maryland Coastal Bays and Bob Mitchell from the county and as a group, to include board

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members Doug Parks and Tom Janasek and forer member Steve Tuttle, commissioners Bertino and Bunting, OPA now has started the project that we have been working on for Chip Bertino two two years,” she said. Phillips said that Bainbridge is “the backbone of many future opportunities on drainage improvements” that she said she hopes Ocean Pines will pursue. “I hope the relationships that were built with the state will be a focus and will remain strong,” she said. Since her departure from Ocean Pines, oversight of the project has been shifted to Wells and Public Works project manager Novie Violente. “In my opinion, after what I witnessed and learned the past two years, drainage and flooding issues need to be OPA management’s number one priority. Flooding will increase in OP by 50percent by 2050. The Public Works teams on the drainage issues is awesome. Being a crew of only five or six, having

to take care of community the size of Ocean Pines is a huge task,” she said. The March 18 ground-breaking was held to spotlight a project that is designed to reduce flooding in an area considered among the worst in the community in terms of drainage. Officials touted the partnerships that made the endeavor possible, and said they were hopeful this would be the first of many similar projects designed to tackle drainage problems. The Bainbridge Pond project was largely funded by a $549,000 grant from the Maryland Department of Natural Resources, with Ocean Pines contributing the rest of the estimated $800,000 total price tag. The grant was made possible thanks to a partnership with the Maryland Coastal Bays Program and help from Worcester County. Drainage improvements will include replacement of storm drain inflow and outflow pines, construction of a new forebay, re-grading the perimeter of the pond and installing aquatic benches, and building a new weir to control water levels and slow flooding during larger storms. Present during the groundbreaking were Worcester County Com-

Officals celebrate the Bainbridge Park drainage project groundbreaking.

OCEAN PINES missioners Bertino and Bunting, Worcester County Director of Environmental Programs Bob Mitchell, Vista Design Director of Engineering Rich Polk, Maryland Coastal Bays Program Watershed Coordinator Steve Farr, and Ocean Pines Association President Larry Perrone, Vice President Colette Horn, and Director Parks. “I think this is an opportunity to show how the community can come together [with] the county. We had a lot of good people who put this together,” Bertino said, singling out Mitchell, Eddie Wells and Colby Phillips from Ocean Pines, and Sen. Mary Beth Carozza. “Our community is better for it,” Bertino said. “It just goes to show when people look at the same thing and come up with ideas, anything’s possible.” Mitchell credited Bunting with earlier efforts to improve drainage in Section Three of Ocean Pines, and he said Bertino joined the cause upon his election in 2014. Mitchell also said Vista Design was instrumental on the project. “I really hope this works for the Ocean Pines Community,” Mitchell said. “We’re all working together for the same end goal here – that’s the citizens of Ocean Pines. At the end of the day [the project should] help with flood resiliency and also help with cleaning up the bay, so, it’s a win-win. Polk said the project would not have happened “without the help of everybody standing here.” “The greenlight thinking every time there was something that came up, [and] the ability to work through issues as a team and resolve them as a team, is why we’re here today,” he said. Perrone thanked the Worcester County Commissioners and Mitchell, as well as Parks, who during the project acted as a liaison to the Ocean Pines Board. “Let’s not forget our engineers who put all this stuff together, and DNR who provided all this grant money for us,” Perrone said. “Ocean Pines is very appreciative and we’re hoping that this is just the first of many [drainage improvement projects] that we can take care of, because this is a big issue. “Also, our Public Works people, Eddie [Wells] and Nobie [Violante], have done a great job for us and I know they’re going to keep on top of this project as we move forward. Thank you to all of you,” he added. q

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Viola announces organizational chart changes

ecause of the recent resignation and depature from Ocean Pines of Director of Amenities and Logistical Operations Colby Phillips, Ocean Pines Association General Manager John Viola realigned the Association’s organizational chart, distributing the duties that had been performed by Phillips. In late March, Viola released the revised organizational chart and was working on having the new chart posted on the OPA Website in the General Manager section. His announcement of revised roles for key personnel dovetailed with details first disclosed in the March edition of the Progress. The chart is notable because for the first time, department heads and their “number twos” are listed on the chart, conveying the emphasis of a team approach to managing approach, Viola told the Progress. Changes to the organizational chart include: •Aquatics Director Kathleen Cook is now responsible for Beach Parking, in addition to the Aquatics Department. She will now report directly to General Manager John Viola. Previously she had reported to Colby Phillips. •Recreation and Parks Director Debbie Donahue is now responsible for Racquet Sports, in addition to the Recreation and Parks Department and the Marinas. She is now leading the beautification projects. Racquet Sports Manager and Tennis Pro Terry Underkoffler, and Racquet Sports Program Coordinator Tim McMullen, will report directly to Donahue. Donahue will continue to report to Viola. •Public Works Director Eddie Wells and Public Works Manager Nobie Violante are now responsible for the oversight and coordination of the Bainbridge Pond drainage project, of which they were already key team members. That is in addition to their existing responsibilities running the Public Works Department. Wells will report to Viola, and Violante will report to Wells. •Director of Finance/Controller Steve Phillips will lead the strategic planning effort, in addition to his existing responsibilities of Finance, Membership, IT and Human Resources. Phillips will continue to report to

Viola. •For customer service issues, Public Works Office Manager Linda Martin and Marketing Coordinator Julie Malinowski are now “Level 1” responders, with all department heads acting as “Level 2” responders

and Viola as the “Level 3” responder. Martin reports to Viola and Malinowski reports to Director of Public Relations and Marketing Josh Davis. “This process has been my vision to simplify and ensure quality cus-

tomer service,” Viola said. “This will now give us proper tracking abilities and metric comparisons. Please join me in wishing the team continued success.” Previously, Viola announced that q

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Department ‘number twos’ listed in addition to department heads

General Manager

Senior Executive Assistant Michelle Bennett Ruth Ann Meyer (#2)

Police Chief Leo Ehrisman Shakhan Toppin (#2)

General Manager of Golf John Malinowski Justin Hartshorne (#2) Golf Operations

Director of Public Relations / Mktg. Mgr. Josh Davis Julie Malinowski (#2)

Golf Maintenance

Marketing Assistant

Director of Finance/Controller Steve Phillips Julia Johnson (#2)

Director of Public Works Eddie Wells Nobie Violante (#2)

Director of Recreation & Parks Debbie Donahue

Accounting Manager

Administration & Membership

Public Works Operations Manager

Public Works Maintenance Supervisor

Marina

Accts. Payable

IT Manager

Bulkheads

Maintenance

Racquet Center Manager

Payroll/HR

Northstar Project Manager

Roads

Common Areas

Beautification

F&B Operations

Contruction Contracts/ RFPs

Buildings

Strategic Planning

Stormwater Management

Bainbridge

Director of Aquatics Kathleen Cook Beach Club Parking

Office Manager Linda Martin Customer Service

CPI

Above, the new OPA organizational chart. Below, the one in place before the departure of Colby Phillips from the OPA. The new chart includes the names of department heads and the “number two” reports are also identified by name.

Bainbridge drainage From Page 30 Parks recalled a lunch meeting four years ago with then Maryland Coastal Bays Program Director Frank Piorko, who suggested possibly using grant funds to help with water abatement and water quality projects in Ocean Pines. “We kept those discussions going over the past couple of years and it started to get some momentum,

to the point where we involved the county for their insight and their support,” Parks said. “We also brought in Vista to [look at it] from an engineering perspective. The folks at Maryland Coastal Bays helped to guide us through the process, and it was a collaborative effort between the Maryland Coastal Bays folks, the county, and everybody else that was involved. “And I want to thank the county, because we as an HOA … could not

apply for the grant money, so we had to have somebody who was an advocate for us,” Parks continued. “If it wasn’t for that collaborative effort, we wouldn’t be here today.” Parks also thanked Ocean Pines staff, who he said were vital to the project’s success. He did not name anyone in particular. “I’m looking forward to getting this thing started and getting it completed, and seeing how well we’ve done,” he said.


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April 2021

Fisher Marine project for year to conclude by April 30

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Board to pursue building a handicap playground Funding possible through county, state or federal sources By ROTA L. KNOTT Contributing Writer iting an unspecified community need and the potential for funding support from Worcester County or federal resources, the Board of Directors has agreed to pursue construction of a handicapped accessible playground, potentially to be located at the Ocean Pines Association’s Bainbridge Park. During a March 20 meeting, OPA President Larry Perrone presented the topic for board discussion and consensus to continue investigating the potential for a playground that could be accessed by mobility challenged individuals, including people in wheelchairs. Perrone said the Recreation and

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Organizational chart From Page 31

Director of Finance and Logistical Operations Steve Phillips had been given a new, shorter title, one that his predecessor, Art Carmine, once held. Phillips will now be known as Director of Finance/Controller. He’s not the OPA’s chief financial officer although his responsibilities suggest otherwise. The title of CFO is held by OPA Director and Treasurer Doug Parks.

Parks Advisory Committee has been reviewing the potential for establishing a handicapped accessible playground in Ocean Pines “to help provide some recreational activities for wheelchair-bound individuals, not just children but adults, as well as individuals who may be additionally physically handicapped.” He said Debbie Donahue, Ocean Pines’ director of parks and recreation, has completed some preliminary investigation into the potential for developing and funding such a project. During a recent groundbreaking ceremony for the Bainbridge Park drainage project, Perrone said the Worcester County Commissioners who represent Ocean Pines, Chip Bertino and Jim Bunting, queried him about the OPA’s plans for additional uses at that park. He said he shared with them the idea of a handicapped accessible playground and that the Recreation and Parks Advisory Committee is looking at the possibility of creating such an amenity and of using Bainbridge Park as the site. “The county commissioners were very excited and enthused,” Perrone said of his conversation with Bertino and Bunting regarding a handicapped accessible playground. He called the proposed project “a very preliminary thing” but said

he wanted to bring it to the attention of the full board in order to get consensus that the OPA continue to explore the possibility of creating a handicapped accessible playground. He added that the Commissioners Bertino and Bunting encouraged the OPA to seek funding assistance from Worcester County and from the state and federal sources because it will likely be an expensive project. Perrone said that just since that brief conversation with Ocean Pines’ commissioners a week earlier, both he and Donahue have already received correspondence from individuals in county government about moving forward with this project. “So I just wanted to bring this to the Board’s attention to see if we’ve got a consensus to move forward at this point to determine whether or not this is something that we want to do in Ocean Pines,” he said. Director Camilla Rogers asked “if anyone has done any sort of data gathering about the for need for this in the community.” She wanted to know how many people who live in Ocean Pines may use such an amenity. “I, of course, think it’s an absolutely wonderful idea, but as we’re prioritizing expenditures, what is the need for this in the community, if you know?” she asked Perrone.

“I don’t think we have that information,” Perrone responded, saying he wasn’t sure how many people in the community may have need of such an amenity. “At this point, we don’t know but that’s certainly something we will look into.” He added that a handicapped playground could be used by “individuals here in the community, which we know we have some that are wheelchair-bound, but also it would be a benefit for families who come down here during summer vacations, or grandparents who have children who may be in this situation.” Perrone pointed out that Worcester County does not have a handicapped playground located anywhere in the county. He said that increases the likelihood of a potential partnership and funding from the county to support the project. “So if we’re gonna move forward with this certainly contributions from the county, and possibly the state or federal government, will be involved,” he said. Director Doug Parks supported continuing to investigate the possibility of building a handicapped accessible playground within Ocean Pines. “I think we should pursue it, especially if there are opportunities for other funding sources other than OPA,” he said. Parks added he too had spoken with Bertino and Bunting at the Bainbridge Park groundbreaking about the potential project and the opportunity for financial support from the county. q

Source: General Manager’s report, March 20 Board of Directors meeting

n reviewing the ongoing bulkhead program for this year, General Manager John Viola at the March 20 Board of Directors meeting said work is being completed by the contractor this year on 16 odd number lots from lot 19 through lot 49 on Pintail Drive. Additionally, the bulkheads are being replaced on 19 lots on North Pintail Drive, lots 4, 8, 12, 16, 18, 20, 22, 24, 26, 28, 30, 32, and 33 through 39, as well as on Pintail Drive Canal at the corner of Pintail Drive and Ocean Parkway. Viola said the contractor has already completed installation of sheeting, tie backs and pilings at all properties except lots 29 and 32 through 38 on North Pintail Drive. That work is scheduled to be finished within a few weeks, he said. Once completed, all of the new bulkheads will be backfilled and sodded. The $1.182 million contract with Fisher Marine specified that the bulkhead work would begin by March 15 and wrap up by April 30. The contractor is replacing a total of 3,330 linear feet of bulkheading.


OPA seeks $740,000 in county grants for police, roads, and tourism

Perrone represents Ocean Pines in annual pilgrimage to Snow Hill By ROTA L. KNOTT Contributing Writer o assist with funding public safety services, infrastructure improvements, and amenities and events, the Ocean Pines Association is seeking $740,000 in special grants from Worcester County. OPA President Larry Perrone presented the association’s annual funding request to the Worcester County Commissioners during a March 2 meeting and asked for money to pay for police, roads and bridges, and tourism activities. “We believe the commissioners and other members of the leadership team recognize the association for the asset that it is to the county through its consideration of funding for this upcoming year,” Perrone said in presenting his funding request before the county. In fiscal year 2020, the commissioners approved a grant of $475,000 in police aid and $10,000 in tourism funding specifically to help cover the cost of Ocean Pines’ annual Fourth of July celebration. He said a major portion of the OPA’s funding request to Worcester County deals with public safety, at $525,000. He thanked the commissioners

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Playground From Page 32

He said both commissioners mentioned the “possibility that the county and or the state could contribute funding towards that project.” “I think we absolutely should pursue it,” Parks said. He also pointed out that if the board decides to move forward, the OPA will need to cover its portion of the project cost via its new capital reserve fund. Parks said the board will need to make sure it has the appropriate amount of money in the new capital reserve and follow the proper procedures for allocating dollars from

for previous grants to help cover the cost of providing police services in the community. “The money is being put to good use, and it is critical for Ocean Pines.” For several years, the coun- Larry Perrone ty has provided grant funding for the dedicated purpose of supporting the Ocean Pines Police Department. “We appreciate this financial support and request that the county continue to provide a level of funding commensurate with the importance of this public safety service,” Perrone said. In 2020, the OPPD provided mutual aid and assisted other agencies in 332 calls and handled a total of 13,193 calls for service. These service calls include by criminal and non-criminal incidients. “Throughout most of the year the department was challenged with COVID-19 issues that restricted our opportunity to upgrade equipment or supplies. Your help in providing

much needed funding is imperative to meet the related and growing needs for recruitment, training, and time,” Perrone said. He argued that the 8,452 properties within Ocean Pines include a year-round population of approximately 12,000, which represents a significant percentage of the overall county population. In addition to the county residents that live and own property in Ocean Pines, the association shares the use of its physical assets with thousands of guests who come to Worcester County to visit each year, he said. These physical assets include 82 miles of roads, associated bridges, five pools, a golf course,, several restaurants, and numerous parks and playgrounds. Additional services that the association provides to the residents of the county when they are in Ocean Pines include public safety services and various recreation programming that include classes for physical fitness and wellness, educational forums, along with children’s camps and other activities, he said. To assist the OPA in meeting the infrastructure needs, the association is seeking a $150,000 county grant.

that fund to new projects. “Yeah, that’s exactly correct,” Perrone agreed. “This is a perfect project for that.” Director Colette Horn said she also supports continuing to look into the opportunity to create a handicapped playground for Ocean Pines. “I support this project as well.” Horn pointed out that the only other amenity located in Ocean Pines that specifically provides access to individuals with disabilities is the aquatics facilities, with handicap chair access to pools. She noted that the OPA’s swimming pools do have Americans with Disabilities Act required access. She cited the regular use of the

handicapped accessible pools by residents as demonstrated need for more accessible amenities in Ocean Pines. “We don’t have exact numbers. I think we can get data on that,” she said. “I think it’s a very worthy project, particularly since there is likely to be support from the county, the state and possibly the feds.” Perrone asked for a show of hands from board members who were present at the virtual meeting “that this is a worthwhile project” and that they supported continuing to pursue the opportunity. Directors unanimously agreed to move forward with exploring the project

April 2021 Ocean Pines PROGRESS

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Perrone argued that the roads in Ocean Pines carry the traffic load for thousands of both resident and non-resident vehicles every day. Along with the responsibility to maintain four bridges to comply with the appropriate safety standards, the OPA also has 387 drainage pipes that cross under existing roads. “As that infrastructure is more than 50 years old, much of it is in dire need of replacement. We must also maintain each of the residential driveway pipes throughout our community,” he said. This past year, Ocean Pines has taken a more aggressive approach in maintaining its roadways and repairing draiange pipes, according to Perrone. “Specific plans have been developed and work is being done in these areas in conjunction with those plans. “If funding from the county were to be made available, these proejcts could continue and we would be able to alleviate road and drainage problems that currently impact many of our property owners.” Perrone added that should the county open any discussions regarding available casino funds and the impact associated with the establishment of tables games, “Ocean Pines would be very interested in participating in the hopes that we could potentially share benefits with the county residents in Ocean Pines if such funding became available.” The association’s grant request also includes tourism funding of $25,000 and recreation and parks funding of $40,000, which is largely designated for the annual Fourth of July fireworks and celebration, to assist the OPA “in continuing to execute high-quality events and programming for the community atlarge and our visiting guests to the county,” he said. Perrone said tourism is a vital part of the economic engine of Worcester County and the assets of Ocean Pines play a key part in helping the county with its tourism objectives. Thousands of tourists stay in Ocean Pines and participate in events and activities throughout the year, not just during the summer, he said. “Besides our proximity to the beach, visitors are drawn to Ocean Pines by our many amenities, programs, sporting events and special events. q

OCEAN PINES


34 Ocean Pines PROGRESS County grants

OCEAN PINES

April 2021

Frank Daly to seek reelection to Board of Directors

From Page 33

The Fourth of July celebration is one of such special events that has been lauded as one of the best fireworks shows in the area and draws over 20,000 spectators, many from other parts of Worcester County and beyond,” he said. He noted that the Ocean Pines Recreation and Parks Department operates seven days a week, year round, to meet the needs of both residents of the community as well as visitors and tourists. The OPA offers many no-fee amenities and activities, including concerts and movies in the park, holiday events, basketball courts, soccer fields, playgrounds, a skate park, walking trails and other special event programs that are open to the public and well attended by residents and non-residents alike, he said. However, he pointed out that there are considerable maintenance and operational costs associated with these “free” amenities, most of which are borne by property owners of Ocean Pines while benefiting the county. “I just wanted to let you know how much money Ocean Pines spent last year on our advertising budget for parks and rec and for tourism,” Perrone said of how the associaiton used last year’s county grant to the OPA. “We spent $30,000 for our local papers. We also spent $12,000 for Google and Facebook targeted ads. And in addition to that we spent $31,000 targeting to promote our golf operations,” Perrone said. While the OPA’s special grant funding request for fiscal year 2022 totals $740,000, the county also provides several pass-through grants each year for emergency services, including specific designations for ambulance support and fire department operations. Support for the police department is substantial. In FY 21 the total of all grants provided to Ocean Pines was $1.455 million. If the commissioners agree to fully fund the OPA’s FY22 special grant requests as part of the county budget process, the total funding package for Ocean Pines would top $1.697 million. If past is prologue, the commissioners will fund OPA requests at more or less the same level as in previous years. A decision awaits the county’s 2021-22 budget now in its draft phase.

Cites accomplishments, but says more needs to be done By TOM STAUSS Publisher s expected, incumbent director Frank Daly will be running for reelection to the Board of Directors this summer, becoming the second candidate to announce his intentions. Daly said in an interview confirming his candidacy that while he is pleased that much of his to-do list when he was elected to the board three summers ago has been accomplished, there remains much to be done to make Ocean Pines an even better-managed community He ran on the premise that the OPA was not being well run, that there was a culture of accepting less than organizational excellence. Under General Manager John Viola, Daly contends that conditions overall are much better than they were three years ago, with a lot of community progress, including a new golf clubhouse and cart barn and a renovated and enlarged police station, new craft clubhouse, and substantially renovated Beach Club in Ocean City. Also notable is the turn-around in the OPA’s financial condiion, from a $1.5 million operating fund deficit just a few years ago to a projected surplus this year ranging from $250,000 to $1 million depending on the timing of several capital improvement projects, Daly said. While pleased with the progress achieved during his tenure, Daly said there’s still much he hopes to see accomplised, citing the community debate over regulating shortterm rentals, the need for continued significant work to improve drainage, and the need to substantially reform or abolish what he called the deeply flawed B-08 ethics policy. “I’m definitely looking for covid to be over, so we can return to more or less normal operations and achieve break-even or near break-even in all of our amenities,” he said. “We’re getting there,” but he acknowledgedthat key amenities like aquatics has been severely impacted by covid. Daly said it’s yet to be determined whether the board will take action to regulate short-term rentals with the outpouting of opposition at

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the March 20 board meeting. A Town Hall meeting on the subject days before a scheduled vote on the issue at the April board meeting may provide clues on which way the board is Frank Daly going. “We have been trying to strike a balance between protecting property owners’ rights with the right of neighbors to live in peace and tranquility,” he said. “It’s a question of how do you preserve property rights but still have enough regulation in place to take care of the bad apples.” He acknowledged only three out of four “problem” properties out of hundreds of homes in Ocean Pines that are rented out. With respect to drainage, Daly said the jury’s still out on whether an innovative method of coating the insides of deteriorating pipes with a resin-like material will prove effective. Five and a half miles of drainage ditches would be extremely costly to replace if this innovative approach doesn’t work. Meanwhile, he said the estimated cost of building a second outfall and means of getting excess stormwater out of Ocean Pines in the area of Bainbridge Park is also very steep. “I’ve seen the estimates and we’re looking north of $10 million,” Daly said. Daly said that drainage problems if not addressed can lead to reduced property values very fast. “With 2800 homes experiencing issues to some degree, we need a continuing focus on this problem,” he said. “Over the past three years, the drainage budget and expenditures have increased in each year. This year we will spend more money on drainage than was spent in the prior six years combined.” Daly said the OPA will need to sustain its current efforts to maintain 210 miles of ditches, thousands of under driveway pipes and 30,647

feet of underground drainage while keeping assessments “as low as himanly possible.” He also said the OPA will need to continue to improve the financial performance of amenities. Over the past three years, amenities have shown significant improvement, but “we still have a way to go” to bring each amenity into compliance with Board Resolution M-02 that requires them to break even. “Even with covid-19, the amenities, in total, contributed to a reduction of $73 to the base assessment,” Daly said. He remains a staunch opponent of the B-08 board ethics and conduct resolution as it’s written and applied because he said its three most recent applications -- separate cases involving investigations of OPA board members and a department head -- have been manifestly unfair and unsuccessful in resolving cases. “In some cases the B-08 process made the outcome worse,” he said. “In most situations, these can be handled as HR (human resources) cases.” Whenever a situation is so dire that it escalates to the point where removal of a director is under consideration, then the OPA by-laws may be sufficient to govern how the matter is handled, Daly said. But he said he’s willing to see what a work group of his colleagues can come up with to rewrite B-08. If he’s not satisfied -- and he said he’s not sure B-08 can be rewritten to address his concerns -- he’s prepared to present a motion to abolish it. Daly says the base lot base lot assessment needs to strike a balance between keeping it as low as possible while properly maintaining OPA facilities. “I am committed to having an assessment level that maintains our facilities and infrastructure in good working order and not collecting one penny more,” he said. “Over the past three years the base assessment has been under the rate of inflation.” While a stable assessment under the rate of inflation has been maintained, Daly said the OPA has been “able to replace old, dilapidated facilities that had been neglected for


OPA FINANCES

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OPA records nominal negative operating variance to budget in February Positive variance for the year so far is $1.13 million By TOM STAUSS Publisher he Ocean Pines Association performed better than expected in February, avoiding the substantial operational loss relative to budget typical for this winter month. The actual loss was $660,618, with a negative variance to budget of only $16,726. For the fiscal year so far, with March and April remaining, the positive variance to budget is $1.13 million. Through February, revenues are over budget by $124,552 and total expenses are under budget by $1,005,699. Without federal grant money received as part of the covid pandemic, the operating loss for the year would be in the $400,000 to $500,000 range, according to OPA General Manager John Viola. He said that Director of Finance/Controller Steve Phillips has initiated the process that he hopes and expects will result in the foregiveness of the Payroll Protection Program loan that was so instrumental in the OPA avoiding substantial operational losses this year. For the month of February, revenues were under budget by $105,427 and total expenses were under budget by $88,701. Of the major amenities, the Yacht Club led the way with an $11,001 negative variance to budget for the month, followed by Aquatics with a $4,410 negative variance. All three racquet sports recorded nominal negative variances for the month. Golf operations, in contrast, managed a $1,256 positive variance to budget, as did the Clubhouse Grille with a $4,073 positive variance. Both amenities recorded actual operating deficits for the month, but this time of year more attention is generally given to performance relative to budget. The Clubhouse Grille has been a popular venue for golfers and non-golfers since opening last year, with financial results reflecting that support. After 12 months, the positive or negative variance to budget translates to the operating fund surplus or deficit for the year. Although estimates for the year-end operating surplus have varied in recent months, Viola has said he expects a respectable surplus and the elimination of the inherited operating fund deficit. Departments that did better than budget for the month included the manager’s office, finance, fire/EMS, police, recreation and parks, golf operations and the Clubhouse Grille, the Beach Club, and marinas. The latter two departments are not operational this time of year. For the year so far, Aquatics has recorded the largest negative variance to budget, $204,004, against an actual operating deficit of $227,339. The Yacht Club’s negative variance to budget for the year is $80,185, but through February the actual

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decades. Critical renovations have been completed at the Beach Club. We have a new police station. The old, unusable golf clubhouse and dilapidated cart barn have been replaced. We have a new craft building, and our bulkhead replacement program is now back on schedule.” Daly said his approach to serving on the board has been one of independence and keeping property owners foremost in mind when making decisions. He’s not part of any board faction, sometimes regarded as a “swing vote” on controversial issues that go before the board. He’s voted against the removal of Tom Janasek from the board in a B-08 proceeding. He said the board should exercise “strong oversight, not micromanagement” of the general manager and staff, acknowledging issues with that approach has been evident in recent months. Emphasizing that he has good relations with all of his colleagues, Daly said that “collaboration, not confrontation” is the way forward for the board and OPA management. He said he has seen “major improvements in virtually all aspects of our operations, even during a once-in-alifetime pandemic.” He said during much of that time, collaboration among board members and the general manager was “amongst the best in the history of the association.” More recently, though, that colloboration has been tested, pledging his best effort to continue to work with colleagues “to get back on track.” To the extent that the board or some of its members have veered too much into “micromanagement I can work with my fellow board members to get back to our oversight role.” Daly joins Stuart Lakernick as the two early candidates to announce their intentions to run for the board. A Search Committee headed up by Tom Piatti has been appointed, with the intent of avoding last summer’s embarrassment of having an insufficient number of candidates to comply with OPA by-laws. The bylaws say there are supposed to be at least two more candidates than the number of board seats to be filled. Last summer there were only three candidates to fill two seats, while in some years the number of candidates initially filing have soared into the double digits. Two more candidates will need to emerge to meet this minimum.

April 2021 Ocean Pines PROGRESS

Net Operating by Department, February 2021

Source: Ocean Pines Assodciation, Finance Department


Viola adjusts projections for year-end surplus

Current estimate is $250,000, reflecting new capital expenditures and a transfer of funds back into the roads reserve By TOM STAUSS Publisher eneral manager John Viola and Finance Director/Controller Steve Phillips are now projecting a $250,000 operating surplus for the year after February results were posted. Two months in the fiscal year remain, March and April. The prior estimate was a projected surplus of $650,000. After some better than anticipated operating results in February and lower estimates for maintenance repairs at the Beach Club, the estimated “pre-adjusted” operating surplus for the year was $1 million. But Viola said that Chris Hall, from the OPA’s auditing firm, has agreed to several anticipated adjustments which would reduce that $1 million projection. Viola said that $350,000 in casino funds shifted out of the roads reserve for Bainbridge Park drainage would be moved back. Another $200,000, which Viola rounded up from actual, would cover the inherited operating fund deficit. Another $200,000 in New Capital Reserve funding for four new pickleball courts and one junior court would be booked into 202021 business even if not the courts are not built in the current fiscal year, Viola said. The board approved the expenditure in the current fiscal year. One potential adjustment that remains is the costs of Yacht Club marina expansion with transient-use t-docks. Viola said that there are permitting delays with the t-docks. The proposed marina expansion, which Viola and Yacht Club manager Ralph DeAngelus from Matt Ortt Companies strongly support, has not yet been formally approved by the board. The Budget and Finance Advisory Committee is less enthused. So far the board has only authorized Viola to

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seek the needed permits. If the t-docks new capital spending can’t be shoehorned into 2020-21, then Viola said it would be up to the Board of Directors to decide whether to approve them for next year. They were not part of the capital budget approved by the board this past February for 2021-22..

Viola gets salary adjustment to resolve 401(k) tax issue In closed session March 26, the Board of Directors voted to resolve a sticky tax issue affecting General Manager John Viola related to the OPA’s 401(k) pension program in which the OPA matches a percentage of an employee’s pension contributions. According to Director of Finance/Controller Steve Phillips, a 401(K) qualified retirement plan must pass various compliance tests. One of those tests consists of a comparison of the tax deferral of matching contributions to non-highly compensated vs. highly-compensated employees. “OPA never had to undergo this test in the previous ‘safe-harbor’ plan, and this was not an issue in [Viola’s] first year of employment as he was still ineligible to contribute to the plan per the plan document,” Phillips said. There is an issue now that Viola is eligible for the plan and he is considered a highly compensated individual, Phillips said. A highly compensated individual, defined as someone who earns more than $125,000 per year, is not allowed to receive a matching tax-free contribution above the tax-deferral percentage of other employees, which is 6 percent of earned income. But Viola has exceeded that limit with the OPA’s matching contribution, which creates an unanticpated tax liability for him. “As a result of our plan changes over the last

February financials From Page 29

surplus is $104,382. Covid has had an impact. Through February of 2020, the year-to-date surplus at the Yacht Club was $155,907. Through February, golf operations are in the red by $9,680, with a negative variance to budget of $9,071. But that is offset by a cumulative surplus of $19,781 at the Clubhouse Grille, ahead of budget by $19,657. Of the three racquet sports, tennis has the largest deficit for the year, $46,326, and is behind budget by $21,144. Platform tennis is behind budget by $10,856. In contrast, pickleball through February is in the black by $13,526 and is ahead of budget by $2,179. Departments notable for positive variances to budget for the year through February include the manager’s office, finance, public relations, compliance and permits, Public Works, fire/EMS, police, recreation and parks, the Clubhouse Grille and marinas.

OPA FINANCES few years, we have done the appropriate research and consulted with our investment advisors to try to find solutions to this issue,” Phillips said. Two options considered were a return to the previous “safe harbor” plan and the opening up a so-called 457(b) plan for Viola. The first option requires a substantial rewrite of the OPA retirement plan and could not be completed in the current fiscal year, and both options cost the OPA more than a third option, Phillips said. The board approved a third option as a way of offsetting Viola’s additional tax burden. The approved option adjusts Viola’s reguar compensation to cover the partial loss of the tax deferral contribution for him. “The difference in the maximum deferral election ($26,000) versus the “estimated” 6 percent salary deferral ($9,300) is approximately $16,700. If you utilize a conservative effective tax rate of 25 percent, you get $4,175. If you then ‘gross-up’ this amount for taxes, you have a compensation adjustment of $5,567,” Phillips said. That’s the one-off salary adjustment for Viola in 2020-21. To avoid this kind of the problem in the future, the board could consider a return to a “safe harbor” plan, but that will take some time and consultation with the OPA’s financial advisors, Viola told the Progress.

Assessment collections rise to 98 percent

OPA Treasurer Doug Parks reported during the March 20 meeting of the Board of Directors that collections on 2020-21 lot assessments had risen to 98 percent at the end of February, with about $182,000 in arrearages remaining. That’s fairly typical for year’s end, which means that the covid pandemic ultimately did not adversely affect OPA assesment revenues during the year. The board extended the payment deadline to Aug. 1 in response to covid. The usual payment deadline is May 1, with interest on late payments beginning to accrue a month later. Covid did susbstantially affect revenues in key amenities, particularly Aquatics, beach parking and food and beverage operations to a lesser extent. Parks said that the OPA had $9.9 million in cash in various investment and operating q

36 Ocean Pines PROGRESS April 2021

Reserve summary: The OPA’s reserves through Feb. 28 stood at $6.51 million. The replacement reserve had a balance of $4.025 million. The bulkheads and waterways reserve had $1.51 million in it. The roads reserve stood at $215,782, drainage at $672,659, and new capital at $85,342.


OPA FINANCES

Ocean Pines addresses questions about bulkhead assessments ome Ocean Pines waterfront property owners have expressed concerns about a $100 increase in the waterfront differential reflected in assessment notices recently sent to the Ocean Pines Association members. General Manager John Viola acknowledged that the increase perhaps could have been made more explicit in the 2021-22 budget process this past winter. But he said it was well understood by participants in the process and was included in all the budget documents that the OPA published on its Website. The Progress did not pick up on the increase until sometime after the budget was approved. Viola siad that recent increases in the annual assessment for Ocean Pines waterfront lots are due to the higher cost of materials and labor, a new staging area, and an effort to address prior bulkhead funding levels. The waterfront differential was increased $50 over the prior year in 2020-21, and Viola said it was always intended that it would increase again in 2021-22 to offset rising replacement costs. Waterfront lots in Ocean Pines historically have been assessed a fee, in addition to the base assessment, to replace and maintain the community’s bulkheads, according to Director of Public Works Eddie Wells. Bulkheads are located on individually owned lots as well as on property owned and maintained by the Association. In total, Ocean Pines maintains just under 98,000 linear feet of bulkheads. “It takes about 30 years to do all of the bulkheads if we do 3,000 linear feet a year,” Viola said, meaning the Association has replaced all bulkheads at least once since the community was developed. Bulkhead replacement is completed in fouryear increments, which includes time needed to obtain permits required by the state, the county and the U.S. Army Corps of Engineers before work can begin. The Association is currently finishing the second year of a four-year permitted plan, said Nobie Violante, who leads the bulk-

Assessment collections From Page 36 accounts as of Feb. 28, and was earning 1 percent on CDARs.

Assessments due May 1, no covid extension this year

Although billing statements for this year’s OPA lot assessments said the deadline for payment was March 1, the deadline is actually May 1, as it is most year’s. The OPA’s NorthStar software was blamed for the error, for reasons that have not been fully explained by the OPA. Unlike last year, there is no covid-related extension to Aug. 1.

head program for Ocean Pines. Ocean Pines has also been proactive in making sure that replaced bulkheads last as long as possible. “Some of the steps that the Association has taken to extend the life of the bulkheads is to use vinyl instead of wood. This will add 10-20 years of life expectancy to the bulkheads and takes care of the issues we have had with worm damage in some areas,” Violante said. The cost to replace a bulkhead has increased drastically over the last ten years due to an increase in labor and materials, Wells said. “The state has made it harder to work in the waters of the bay, which requires more work from the Association and the contractor,” he said. Fees for required permits have also increased. The biggest reason for the increase in assessments for waterfront lots, however, has been in the cost of materials. “The cost per linear foot in 2013 was $220. That increased to $355 last year. This year the price went up to $365. The Association signed a contract early in the process to hold that price. If we hadn’t done that, we could have been paying as much as $450 per linear foot by 2022,” Viola said. Assessment increases are given careful consid-

Board OKs Level 2 reserve study Contract award includes on-site inspection of OPA assets

By TOM STAUSS Publisher he Board of Directors at its March 20 monthly meeting took another step to update its inventory of assets and projects funded out of replacement reserves, approving a contract with DMA Reserves of Richmond,Va., for what’s called a Level Two reserve study. The contract award includes project fees of $16,590. According to a copy of a bid form included with the agenda for the March 20 meeting, the DMA contract was awarded with no other company submitting a bid. DMA was cited of having completed a Level 1 resrve study several years ago. The level two study includes an on-site review of assets, and proprietary software will be used to update the ledger of assets. The level two study will lead to the OPA developing and revising its capital reserve funding plan, and DMA is offering additional services to assist the OPA in managing its asset replacement after the level two review is completed. DMA performed the original level one reserve study in 2015 and early 2016. The Community Association recommends reserve study updates every five years, so the awarding of the contract is consistent with this practice. In 2018, DMA followed up with an update with no on-site inspection of assets. Because the OPA has added many new assets since then, the company recommended a level two review, which includes on-site inspection of assets. “As a level two study, [we will] start with the component list and quanities as developed in the previous reserve study, but we will add and revise components on the list based on our site inspection in order to achieve a complete scope and assessment of reserves,” the company wrote in its proposal. The proposal also referenced an OPA request to include stormwater culverts in the study, which had been excluded in the earlier studies and updates.

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Increase caught some waterfront owners by surprise

April 2021 Ocean Pines PROGRESS 37 eration, Wells said. “I know that times are tight with everyone, especially over the past year.” However, Wells said that those increases are far below what the average property owner would pay to replace bulkheads at their own expense. He also pointed out that some sections in Ocean Pines are already responsible for maintaining and repairing their bulkheads. “The average waterfront lot in Ocean Pines is 60-80 feet of bulkhead. When they fail or need to be repaired, it could cost the resident $30,00$40,000 to replace out of their pocket,” he said. Although the Association works to control costs, increases will most likely be unavoidable, Wells said. “We’re working to keep the price as low as possible, but market costs are beyond our control.” Based upon prior years’ funding history, Ocean Pines is working to cover current and future bulkhead maintenance and replacement costs, Viola said. The bulkhead program was addressed during the public budget review process with the Budget and Finance Advisory Committee and the Board of Directors, in accordance with the Association’s governing documents. “We’ve been proactive in controlling costs. In addition to signing contracts earlier in the replacement process to lock in lower prices, we also entered into an agreement to use a third-party commercial property as a bulkhead staging area once the Swim and Racquet Club property was no longer feasible for that purpose,” Viola said. “The Association tries everything it can to keep costs low.”


OPA FINANCES

38 Ocean Pines PROGRESS April 2021 Reserve study From Page 37 “You have also requested that we include a reference column in the study to link asset list numbers to reserve components,” the proposal stated. “These scope additions are included in the fee.” The project scope, in addition to the visual inspection of the entire OPA property, and any resulting updates or revisions to the asset schedule, includes: • a DMA-developed component replacement and life-cycle analysis. • a DMA-created 30-year cash flow funding model for OPA assets using the company’s proprietary Reserve Navigator. • establishment of an interactive working session with a reserve specialist to arrive at a reserve funding plan tailored to Ocean Pines. • transmittal in a PDF format a complete reserve final analysis development during the interactive session with selected funding plans. The board action March 20 follows up on a recent announcement by General Manager John Viola that Linda Martin, office manager for OPA’s Public Works Department, will lead the effort to update the reserve study. He made the announcement in a meeting of the Budget and Finance Advisory Committee in late January. “Linda will be reporting to me as we review and update the fixed assets register,” Viola said. Viola said Martin would interact with Director of Finance/Controller Steve Phillips, Accounting Manager Julia Johnson, and the Ocean Pines Budget and Finance committee. “She will also meet with all department heads to receive their input on the updates,” Viola said. “Following that, she will engage with Doug Greene from DMA, who will use their software to update our calculations and determine the overall status.” After Ocean Pines and DMA update the register and confirm the calculations, Viola will host a virtual town hall, when Martin and the Budget and Finance committee will present the results. She worked for the Public Works/ CPI Department from 2006-2017 as an office coordinator. Last October, Viola reached out to Martin and asked her to return to Ocean Pines as an office manager in the Public Works department, which she accepted. A expedited review of the reserve

Viola still looking to come up with Aquatics cost reductions Projected losses still too high for OPA president By TOM STAUSS Publisher cean Pines Association President Larry Perrone will receive some sort of plan by General Manager John Viola and Aquatics Director Kathleen Cook for a reduction in budgeted losses in the Aquartics Department, Viola told the Progress in late March. Hard hit by the covid pandemic, the Ocean Pines Association’s Aquatics Department has concluded that revenues, membership and pool usage won’t return to pre-pandemic levels in the 2021-22 fiscal year. Viola told Perrone during a Jan. 8 budget review meeting that the “department can’t come back all at once,” in effect urging forebearance during a recovery year. But that wasn’t good enough for Perrone. He urged Viola and his team to come up with a plan for additional reductions. The 2021-22 budget includes a $236,000 loss in Aquatics for next year, but Perrone expressed the fear that it could be closer to the $380,000 or $400,000 loss expected this year because of covid. During the March 20 board of directors meeting, Perrone reitterated that he does not blame any individual for current or projected losses in Aquatics. But Viola told the Progress recently that he knows Perrone is still expecting some sort of cost reduction plan. Cook and Viola are “making progress” on details of a plan, Viola said, declining to provide details. During the concluded budget process, Cook had said that closing the Sports Core pool this summer would save about $40,000. But neither she nor Viola have indicated any support for a total closure, so it seems unlikely that any such closure would be proposed in a cost reduction plan. The department ia already realizing a cost savings from the recent resignation and departure from Ocean Pines of Amenities and Logistical Operations Director Colby Phillips, whose salary was partly allocated to Aquatics. Viola offered a “no comment” to the suggestion that her departure and the resulting cost savings would be sufficient to satisfy Perrone. During the budget review process, Phillips and Cook said that challenges that continue to face the department, including a state covid mandate restricting pools to under 50 percent of capacity. They said the Aquatics team expects the department to return mid-way between where it was financially before the pandemic and where it expects to be at the end of the fiscal year on April 30. “We’re going to have to rebuild,” Phillips said. “We’re not anticipating a rush. We hope we’re wrong.”

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study has been a top priority of the budget and finance committee. Martin’s appointment by Viola is an ef-

More recently, there was the hope that a relaxation of capacity rules at indoor fitness facilities announced by Gov. Larry Hogan in mid-March would allow the OPA pools to operate at full capacity, but that has not happened. Cook said that the “fine print” in the governor’s directive referred to the Center for Disease Control’s guidelines for pool operations. Those guidelines continue capacity limits of 50 percent or so, and the county Health Department is bound to enforce CDC guidelines, she said. She said that working with county health officials, she might be able to obtain some relaxation of current rules, and that perhaps by July 1, when peak usage at all OPA pools kicks in, there will be new guidance in place. Only when the OPA is able to operate pools at full capacity can there be realistic prospects for a return to normal revenue streams, she said. Swim lesson revenue alone in the current fiscal year was down $130,000 over the prior year, and that some refunds had to be issued for exercise classes because of covid. Swim team revenue is down somewhat, with Stephen Decatur High School having a one-month season rather the normal three months, costing the departmen about $20,000 in revenue. The department lost the county school system’s 4th grade aquatics program this year. After Perrone complained about the looming deficit, Cook replied that time is needed to “restore the confidence” of members and pool users during the pandemic, adding that it’s also necessary to restore the confidence of instructors who teach swim lessons and other classes. Perrone pushed back at the idea that rebuilding confidence is the answer. “I’m not sure rebuilding classes is valid (as a way of reducing deficits),” he said. Cook responded that some decisions are “out of our hands,” most notably when the governor and state health officials will allow Ocean Pines pool to return to full capacity. The Beach Club pool, for instance, had a maximum capacity of 40 individuals, including guard staff, last summer. Cook said that this year, at least when the pools opens Memorial Day weekend, it’s possible that the Beach Club will be able to operate with a maximum number of 40 users, not including staff. “It’s a big deck there (at the Beach Club),” she said. Perrone said that a “normal procedure” under these circumstances would be “to look at revenue increases,” but he then said “what else can you do. Maybe some hard decisions [are needed]. This is a big number,” he said of the projected deficit.

fort to accommodate, as is the action to launch a new update. Viola said at the March 20 board

meeting that he expects DMA to begin work on the reserve study in May.


April 2021 Ocean Pines PROGRESS

Colby Phillips looking ahead to new management role Lauds inherited team in Captain’s Cove, fondly recalls her time in Ocean Pines By SUSAN CANFORA Contributing Writer hese days, Colby Phillips is a woman of contentment, pleased with her new position as Senior General Manager at Captain’s Cove Golf and Yacht Club, Inc., in partnership with Indigo Golf Partners, and anticipating the future. “My new job is going very well. I’m very happy. It’s great,” she said during a recent upbeat and open conversation with the Progress. “It’s a very different feeling, a different environment at Captain’s Cove. The community at Captain’s Cove and the work environment feel healthier, and that’s a good feeling. “The drive (from her home in Berlin) is easy. The team has been welcoming and knowledgeable. Overall, they’re just a great group of people, and I’m really looking forward to building those relationships. One thing I like is they are very involved in their community and committees. Committees are important, because you have valuable volunteers in that specific group and their knowledge and background are important. They are volunteering to make the community better,” she said. This is how Phillips’ friends –- and there are many – want to see her, appreciated, respected, in an atmosphere of professionalism. She accepted the position at Captain’s Cove after seven years in management with the Ocean Pines Assocition and left determined to succeed in a new role, proud of her accomplishments and hopeful positive change will occur within the Ocean Pines Association government. “I think the culture [within the OPA] needs to be fixed from within,” the 46-year-old former Director of Amenities and Operational Logistics in the Pines said. She was a welcome presence within Ocean Pines because of her considerate nature and eagerness to assist frustrated homeowners hungry for a listening ear. She resigned in early February, after alleging that Board President Larry Perrone had created a hostile work environment. Her complaint under arcane rules was dismissed following an investigation by the OPA’s law firm and in closed meetings of the OPA Board of Directors in late January and early February. Board Member Colette Horn, during a virtual meeting, read a brief announcement stating that no violation of ethics and conduct was found, effectively absolving Perrone of any wrong-doing. Since then, Phillips posted on the Facebook Page for members of the newly formed group Get Involved, that the report released by the OPA concerning her complaint stated she was too “sensitive” to Perrone’s direct if not abrasive approach to obtaining information. Phillips shot back, writing that sensitivity is nothing less than a “super power” and that sensi-

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Senior General Manager Colby Phillips

“The team [in Captain’s Cove] has been welcoming and knowledgeable. Overall, they’re just a great group of people, and I’m really looking forward to building those relationships. One thing I like is they are very involved in their community and committees.” COLBY PHILLIPS

tivity is “a trademark of the truly alive and compassionate.” In conversation, though, Phillips didn’t focus on recent OPA turbulence but, instead, remembered her accomplishments with a sense of pride and gratefulness for dedicated OPA employees. “I will say, I offered to stay in Ocean Pines and help with the transition because I thought I could help. I was one of the biggest pieces on the Bainbridge Pond drainage project so I was going to work with Public Works in getting that transition,” she said, referring to planned improve-

39

ments to reduce flooding in the Bainbridge Park area by enlarging Bainbridge Pond. The OPA held a ground-breaking on the $800,000 project in mid-March. She was not invited to attend. Phillips was hired as Director of Aquatics in 2014 and subsequently served as Director of Aquatics and Recreation and then Director of Operations. The title of amenities and logistical operations directors followed and was the last title she had before resigning her management position in Ocean Pines. She is continuing to teach a water aerobics class that ends March 31. “I loved my job in Ocean Pines. I loved the team I got to work with,” she reflected. “I go into everything I do with as much as I can give it. I have a lot of passion for what I do. The Ocean Pines community is amazing. I’ve always loved to put things together and to fix things and find solutions. With Ocean Pines and with drainage I thought, ‘Maybe I can find a way to fix things.’ I like to come up with plans. My purpose in life has been to make a positive impact and to help others. Ocean Pines has really given me that opportunity. I am very grateful for that. “For me, it’s important to not make things about me. I will say that I really hope, from this situation, that the community will really look at the culture that is established. “The team there in Ocean Pines is phenomenal. You have people who come in and absolutely love what they do. It’s not always easy, but they don’t always have the resources they need to accomplish those things, which makes it difficult. “You have people who are really trying to do things for the community, for the better ... Imagine being an employee who owns a home there. You can’t speak up. There’s that fear factor. If there’s anything I hope from my departure it’s that there is a way to make things better for the team that is there as a whole. I think not only pieces of the association need to be fixed from within, but also the employee portion of it,” she said. “Everyone has a difference of opinion but when John Viola first came in, they put together a transition management team and had different board members involved in different areas. They weren’t making decisions just based on one person’s thought process, but on what they all wanted to see,” she said, adding that this structure produced some constructive results for Ocean Pines. “Our committees are amazing. I was on several committees and I would love to give a shout out to them. It really takes the volunteers in this community who are passionate about the individual committees they are on. There have been directors over the years who run on a platform of what they believe and when they get in they see how it really is. To the directors’ credit as a whole, there are so many pieces behind the scenes that nobody sees, so many different things that you q

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think you know and you come in and 3BR/2.5BA you’re like. ‘Oh, I had •no idea.’ www.jabuildersllc.com New Construction “I have been truly honored to be • 1497 Sq ft. able to work for the community for • Screen porch the last seven years. Everything • 1 Carthe garage that I’ve learned within Ocean • Hardwood Pines community has helped me Floors 37290 Doubloon Drive grow. Doubloon I can take 37316 Drivethat and hopefulwww.jabuildersllc.com ly join in with the team down here $134,900 $171,900 and help bring Captain’s Cove to the next level,” she said. Captain’s Cove, located just outSea Robin Dolphin Wahoo Tarpon side Greenbackville, Va., is bordered Ranch Style Home on the west by the Chincoteague 3BR/2 BA • 1657 sq ft. Bay and on the north by Maryland. 1 Car garage It is a growing community with two outdoor pools, one indoor pool, a nine-hole golf course, yacht club, Sea Robin Sailfish Dolphin 2012 Skipjack marina a successful food and bever$160,000 $216,900 $197,500 $225,900 age operation and is governed by a board of directors. Ranch Style Home Ranch Style Home Ranch Style Home Two-Story said Contemporary Homeif anyPhillips she hopes 3 BR / 2 BA 1288 Sq Ft • $127,600 3 BR / 2 BA 1349 Sq Ft • $141,600 3 BR / 2 BA 1408 Sq Ft • $158,300 3 BR / 2.5 BA 1607 Sq Ft • $169,500 thing comes from the situation that led to her departure from the OPA, that it’s awareness of the need for Marlin Barracuda Skipjack Tarpon II positive change. Ranch Style Home Ranch Style Home Ranch Style Home Ranch Style Home “The biggest thing I’m taking way 3 BR / 2 BA 1525 Sq Ft 3 BR / 2 BA 1527 Sq Ft 3 BR / 2 BA 1288 Sq Ft 3 BR / 2 BA 1496 Sq Ft from Ocean Pines is definitely the friendships I have made along the way. As far as accomplishments, I Tarpon Striper Tarpon Plus Marlin am extremely proud of the aquatics $206,900 $283,900 $224,900 $235,500 team that will now be led by Kathleen Cook, who will do a fabulous job,” she said. Two Story Contemporary Home Ranch Style Home Two Story Contemporary Home Two Story Contemporary Home isBApleased 3 BR / 2.5 BA 1818 Sq Ft • $191,400 3 BR / 2BA 1525 Sq Ft • $189,200 3 BR / 2.5 BA 1874 Sq Ft • $193,800 4She BR / 2.5 2050 Sq Ft •permanent $212,900 steps were built to step down in the indoor pool at the Sportsin Core, to sales replace J&A Builders specializes spec home Tiger Shark Thresher Mako what “throw-in and new she homecalled construction. All of oursteps.” models 2-Story Contemporary Home 2-Story Contemporary Home 2-Story Contemporary Home 2-Story Contemporary Home Hiring Underkoffler as tenare “stick built”Terry and feature a first floor master 3 BR / 2.5 BA 1774 Sq Ft 3 BR / 2.5 BA 2243 Sq Ft 3 BR/2.5 BA 1607 Sq Ft 3 BR / 2.5 BA 1874 Sq Ft nis director the Pines’ suite with standardatappliance package,Racquet and Center on Manklin Low-E windows. These are a Creek few of ourRoad modelsand Tim McMullen as facilities manager we can build on your lot. Mako Tiger Shark Hammerhead Thresher were excellent said. Prices DO NOT includemoves, the cost ofshe clearing a lot $296,900 $205,900 $267,500 $269,500 makes meof feel OR “It the lot. Homes are similarvery designproud. and may You have upgrades. Prices goodwho for Captain’s Cove, pashave two people are very Greenbackville, Only. 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Prices good for Captain’s Cove, Patrol, where she was sergeant and Greenbackville, Va. Only. Prices subject to change without notice. MHBR #4790 the second female officer in the organization’s history. “The Beach Patrol taught me so much. There is so much more behind the Beach Patrol than just the lifeHall Realty guards – emergencies, purchasing, 4323 Captain’s Corridor ©2017 BHH Affiliates, LLC. An independently owned and operated franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices are registered service workedsymbol on budgeting. The marks behind Housing Opportunity. VA. 23356 of HomeServices of America, Inc.® EqualGreenbackville, the scenes of that job is so much 302-381-6910 (cell) more than just a lifeguard on the 757-854-1604 (office) beach,” she said, crediting Captain 757-854-1606 (fax) Butch Arbin for his knowledge.

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April 2021 Ocean Pines PROGRESS 41

CAPTAIN’S COVE She also worked for Carl Freeman Associates for a couple of years. Throughout, the most important lesson she learned is the importance of listening and “taking the time to show that you truly care about whatever it is that people are talking to you about.” “It’s not about if it’s important to me. It about what they are sharing is important to them. It’s important to really pay attention and acknowledge them. I might not know the answer but I’m going to take the time to help them try to get the answer. I genuinely care about other people,” she said. The Annapolis native and her husband, Duane, a career paramedic and fire fighter in Ocean City, have two daughters, 20-year-old Remy, a college student, and Sadie, a freshman at Stephen Decatur High School who is active in lacrosse. Phillips, who studied at Anne Arundel Community College and completed management classes through the Community Associations Institute, credited “lots of amazing mentors that I have had in my careers who helped me to grow and learn to become who I am now.” Since leaving the job in Ocean Pines, she has stayed in touch withformer co-workers. “Your work team becomes your family. Just because you move to a different family doesn’t mean you don’t take some of those relationships with you and that is the beautiful thing about phones and Facebook and everything else that lets you have those contacts with people. I still care about the community. Whatever the issue is, we all want somebody to hear what we say,” she said. “Now I have moved on and I’m excited and I want to put all my energy and passion into this new position. That’s why the windshield is so big and the rear view mirroris so small.” Or as some have said, Ocean Pines’ loss is Captain’s Cove’s gain.

Taylor Bank conditions Marina Club financing on $1400 lot assessment Colby Phillips to head up working group to look at short-term rentals

By TOM STAUSS Publisher aptain’s Cove association President Tim Hearn at the March 23 Board of Directors meeting updated the community on efforts to secure new financing for the $2.45 million balance on the Marina Club/Exhibit X mortgage loan. Taylor Bank and Captain’s Cove Yacht and Golf Club are negotiating a loan package, which Hearn said would be conditioned on the board’s voting to increase the base lot assessment from $1200 annually to $1400. Hearn had signalled the need to increase the assessment even before the Taylor Bank refinancing package was disclosed. The board formally adopted the $1400 assessment for the 2021-22 budget now being drafted.

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Short-term rental working group

Senior General Manager Colby Phillips has been appointed by the Board of Directors to head up a working group to consider regulations to deal with short-term/Airbnb rentals. There are a few problem properties that constitute nuisances to their neighbors, and Hearn and his colleagues want to get out ahead of the problem before it worsens. Phillips said she has already fielded calls from more than ten residents expressing interest in serving on the committee, which she said might take up to six months to come up with suggested changes in the way the Cove deals with short-term rentals. Phillips appointed assistant secretary Recently appointed Senior General Manager Colby Phillips has been given an additional title. The board at the March 23 meeting designated her as assistant secretary of the Cove association. In brief remarks at the meeting, she lauded advisory committees as critical to the smooth functioning

of Captain’s Cove. She’s been busy attending committee meetings since starting her new job March 15. She’s already reaching out to Accomack County officials, including county supervisor Ron Wolff. Phillips prepared the slides for the meeting that recapped the agenda, and has pledged to work on a more user friendly way to present monthly financial data to Cove members. She and General Manager Justin Wilder will be jointly hosting a manager’s meeting April 8. The next board meeting is set for May 25, as the board returns to a bi-monthly schedule. Meetings will be held via Zoom, Hearn said, saying that the board is not yet ready to resume in-person meetings.

Capital reserve study draft disclosed

The draft of the 2021 capital reserve study is available for those interested in details. The 122page draft was prepared by DLM Archiects of Virginia Beach, and lists all the capital assets held by the Cove association, along with current age and expected life expectancy. The draft is available through a link provided in the slides Phillips prepared for the meeting. Other attachments available are the January 2021 financial statements and an Accomack County resiliency statement for vulnerable flood areas. Recognizing that the Website is not as user friendly as it could be, Phillips told the Progress that she and Wilder would be working to improve it.

Consent agenda items approved

Secretary Pat Perino announced two consent items approved by the board prior to the March 23 meeting. The first item was the sale of a CCGYC-owned lot at Section 1, Lot 1142 for $6,250. The second was a land swap Section 14, lot 15 for a Section 7, lot 131 owned by CCGYC with the property owner covering all costs required for the exchange.


OPINION

42 Ocean Pines PROGRESS April 2021

COMMENTARY Replicating corporate America is no solution to board woes

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he best thing that can be said about the Board of Directors’ latest excursion into time-wasting narcissism is that those of us who watch our community leaders as watchdogs or for edification won’t have to witness the newly hatched process of self-evaluation. Mercifully, the directors will be filling out self-evaluation forms and rating and assessing themselves in closed session, so the rest of us won’t have to subject ourselves to the sheer stupidty of it. Director Colette Horn, who really should leave her therapy techniques back at the office, says corporate boardrooms are increasingly using “self-evaluation” as a way of improving group cohesion and teamwork. Alluding to recent turmoil on the board, which really is no worse or better now than it has been in past decades, she seems to believe filling out forms and then discussing the results -- group break-out sessions and ‘intensives’ to follow -- will help to heal some of the self-inflicted wounds of recent months. If this is what corporate America is doing to improve its performance, let it; that’s hardly an advertisement for why the OPA has to follow suit. There’s plenty about corporate America these days that is cringe-worthy. Big Tech anyone? Director Doug Parks, no stranger to boards whose directors skirmished among themselves, seemed less than thrilled with the prospect of filling out forms as an initial step in group therapy.

But in the somewhat convoluted way he has of expressing himself -- the lost art of diagramming sentences might be a useful tool when he strives to articulate a point -- he stopped well short of a breathtakingly simple way of responding to Horn’s proposal. “No, Colette, I’m not going to fill out one of your damned forms. It’s silly, a waste of time, and we as directors already are spending countless hours on the members’ business. Let’s figure out ways to make our meetings shorter instead of longer.” Sadly, we didn’t hear that from Parks or any other director. It’s hard to see how the proposed selfevaluation process will cure the board of its most recent woes. Everybody knows what the problem is: The OPA president aided and abetted by the vicepresident (who happens to be Colette Horn) is spending too much quality time micro-managing day-to-day activities within the OPA. That’s the contention of Director Tom Janasek, and even Parks, before he changed his mind on a motion proferred by Janasek to rein in President Larry Perrone, seemed to think Perrone needs to give the general manager more space to perform his duties. Perrone may or may not agree with that sentiment. If he doesn’t, no degree of formfilling or self-evaluation or self-flagellation if

GUEST COMMENTARY

it comes to that is going to change his mind. Perrone is going to be Perrone, and if a majority don’t like it, they can vote to replace him with someone else. This option already has been tried, unsuccessfully, so essentially this means he’s going to be president at least until the annual meeting in August, and maybe longer. And he’s going to exercise his perogatives as president as he sees fit. Deal with it. Elections have consequences, and four directors voted him as president last August. There will be another board reorganization after this summer’s board election is concluded. Until then, allow buyer’s remorse to percolate if it must. If there are tensions on the board because of differing perspectives and opinions on certain issues, or Perrone’s job performance, so be it. Directors aren’t robots, and some lively debate and contentiousness is more honest and desirable than the passionless dystopia envisioned by Horn’s latest therapeutic confection. The First Amendment is still in force, and that should mean that all directors have the right to express themselves, disagree when warranted, and then NOT genuflect to majority sentiment after an issue is resolved. Buried in the fine print of the self-evaluation process is a tyrantical impulse to suppress minority sentiment by the majority once an issue is voted on. Drearily depressing about all of this is that, so far, no director has stepped up to expose selfevaluation as the self-evident, self-indulgent claptrap that it is. - Tom Stauss

Coastal Association of Realtors president criticizes proposal on short-term rentals March 20, 2021 To the members and residents of the Ocean Pines Association: t is our understanding that the Ocean Pines Home Owners Association is considering legislation that would severely restrict a property owner’s ability to conduct short-term rentals in the HOA’s residential zoning districts. On behalf of the 1,000 members of the Coastal Association of Realtors, I write to ask for your reconsideration. Among the core rights that a property owner has is the right to lease or rent their property. This right has long been recognized by the courts. For example, the Supreme Court of Connecticut has explained that the “right to rent” is one of the important “sticks” in the bundle of property rights. According to Gangemi v. Zoning Bd. Of Appeals of the Town of Fairfield, 763 A.2d 1011, 1015-16 (Conn.2011): “[It] is indisputable that the right of property owners to rent their real estate is one of the bundle of rights that, taken together, constitute the essence of ownership of property…. Owners of a single-family residence can do one of three economically productive things with the residence: (1) live in it; (2) rent it; or (3) sell it.” This right very much applies to short-term rentals which, according to the Maryland Court of Appeals, are a residential use, not commercial use. In 2006, the Court rejected a claim that because a restrictive covenant required that all lots in a subdivision be used for “single-family residential purposes only,” that meant short-term rentals were prohibited. The court concluded that the covenant plainly allowed residential rentals regardless of whether the rental was for a short term or a long term, explaining that the transitory or temporary nature of a short-term rental does not change the residential status of the use. As stated in Lowden v. Bosley, 909 A.2d 261, 267 (Md. 2006): “Residential use,’ without more, has been consistently interpreted as meaning that the use of the property is for living purposes, or a dwelling, or a place of abode…. The transitory or temporary nature of such use does not defeat the residential status.” To Page 44

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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. 127 Nottingham Lane Ocean Pines, MD 21811

PUBLISHER/EDITOR Tom Stauss stausstom@gmail.com 443-359-7527

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April 2021 Ocean Pines PROGRESS

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44 Ocean Pines PROGRESS April 2021

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Time to move on from Colby affair

OPINION

he release of two abridged versions of lawyer-drafted reports summarizing two investigations involving “former employee (Colby) Phillips” puts a nice ribbon on a package of delights that, perhaps, are mercifully behind us, except as might be invoked as campaign fodder in this summer’s OPA board elections. “Former employee Phillips” is in quotes inflected with snark because that’s the way it was used by OPA President Larry Perrone in a recent public reference. One takes away from that Perrone and a few others under the OPA umbrella are not lamenting the loss of this very valuable, effective and popular employee. News flash: Many OPA members are not happy and will have long memories, even as they and Colby move on to more positive and productive uses of time. No sanitized summary of a deficient investigation, one that was stacked against Colby with a predictable result, is going to erase the bad taste this entire debacle leaves. But no reason to wallow in the outcome, as it’s turned out well for Colby and for Captain’s Cove, her new employment venue of choice.

do so, Colby has good reason to question the fairness, completeness and An excursion through the curious cul-de-sacs objectivity of the investigation. An excursion through theby-ways curious and by-ways and cul-de-sacs of Worcester County’s County’s most densely community. As do Ocean Pines property ownof Worcester mostpopulated densely populated community. ers who foot the bill for it. Publisher By TOM STAUSS/ By TOM STAUSS/Publisher It is also true, as noted by HemA toxic environment is in the rear scribe this issue, serving the inter- mick, that the fatally flawed B-08 view mirror for her. For malefactors est of basic fairness ... Left undone, complaint process did not give Colby who made it easy if not imperative this would serve to hide and to per- the right to make her case before the board voted to reject her claim that that she leave, with mostly good petuate ... unfairness.” Absent the ability to compare the OPA President Larry Perrone had memories intact despite the toxicity, karma has a way of imposing justice original reports by the lawyers and created a hostile work environment the abridged version prepared by for her. The investigation relied as in the fullness of time. Pines resident Tom Hemmick in the lawyers again (and reviewed by its starting point notes compiled by a recent post on oceanpinesforum. directors), it’s probably true that the Colby to document her travails. She was never afforded the opcom captured the essence of the summaries are reasonable facsimikangaroo justice reflected in these les of the originals, with names de- portunity to supplement these notes and provide context to those decidtwo management reports, both of leted to protect the innocent. The problem is not the summaries ing the validity of her assertions. which are published elsewhere in Is this denouement to a sevbut the thoroughness of the investithis edition of the Progress. “I believe any summary would be gations, which should not have been en-year tenure with the OPA for more complete if it mentions that conducted by lawyers employed by Colby? Perhaps it is, as she has said Colby was not even allowed to be at the OPA, a party to this disputation. rather definitively that she’s not interested in returning to Ocean Pines the board meeting where her griev- That’s inherently conflicted. As noted by Colby in her response to fill the GM position when it next ances were being discussed and voted on. Nor to bring any witnesses to the B-08 complaint summary, becomes vacant. But time does heals wounds, and [nor their written statements] sup- four of seven witnesses she profporting her side. Nor to challenge fered in support of her contentions Perrone and Vice-president Colette the other side’s assertions. Deck was were not interviewed by the lawyer Horn are not going to be on the stacked against her by the board’s conducting the investigation. Since board forever. Horn has two and a procedures. This gross miscarriage some or all of these witnesses were half years left on her second term, ... stinks to high heaven. Seems it likely to corroborate Colby’s version and Perrone’s first term is set to would be a good gesture to amend of events, and the ones contacted expire in August of next year. that summary to point out and de- and interviewed were less likely to

Guest commentary

proposed legislation that are troubling for property owners including the vagueness of some of its language. Some key phrases that need more explanation include “promptly address and resolve issues,” “events prohibition,” “sleeping areas.” We are concerned about the requirement for parking that is in the legislation. People who rent short-term often do not have the same need for cars that a homeowner with the same amount of people would. A family of four on vacation may only need one car and a group of eight may only have two. Requiring 4 parking spaces for 8 occupants is overkill for most areas and could be unattainable. Although the issues outlined above are major and concerning the issue that is most alarming to our members and the homeowners of Ocean Pines is limiting the number of people that can live in a rental. By regulating who can live in a home you as an Association are infringing on a homeowner’s right to fair housing. You are legislating who can live in a home and who can not and what

From Page 42 Further, the Maryland Court of Appeals also rejected the argument that short-term rentals are not a residential use because the homeowner earns rental income by renting out his or her home, stating: “While the owner may be receiving rental income, the use of the property is unquestionably ‘residential.’ The fact that the owner receives rental income is not, in any way, inconsistent with the property being used as a residence.” Ocean Pines may be a great place to raise a family, but it is also a wonderful vacation destination and a destination for tourists. The dynamic of the family vacation is changing. The modern tourist is unable to take a weeklong vacation and needs affordable options. The surge in popularity of rental platforms that provide short-term options should not be disregarded by a popular tourist destination like Ocean Pines. There are many aspects of this

q

LIFE IN THE LIFE INPINES THE PINES

their marital and family status has to be. You are violating a homeowner’s fundamental private property rights. By creating this ordinance you are going to discourage people from buying homes in Ocean Pines. They are instead going to look to other beach communities. This will lead to home prices dropping, business closing, and your property losing value. The Coastal Association of REALTORS® is concerned that this legislation was developed in a vacuum and is addressing a problem that doesn’t exist. According to your own board member, in an article dated February 25, 2021, in the Dispatch “The vast majority of these properties cause no problems what so ever…” It seems that there are only a few properties creating problems within the HOA but instead of addressing those specific properties and using the tools that you already have for code enforcement you have opted to take drastic measures and punish all of the homeowners within the HOA.

Since this legislation became public knowledge and appeared in the newspaper homeowners and Realtors members have been reaching out to us. They are concerned that they had no idea this was coming. Many homeowners have their summer rentals booked up already and don’t know how this will affect them. There are also many buyers who are considering not purchasing homes in Ocean Pines until they know more about how this ordinance will affect them. We strongly urge the Ocean Pines HOA to put the brakes on this and meet with the Coastal Association of Realtors and the general public to examine this issue and come up with a common-sense approach. We are more than happy to host any meetings to help facilitate this. I appreciate your consideration. Please let us know if we may be of any assistance. We can provide valuable input from local professionals who work in the rental industry every day. Joni Williamson, President Coastal Association of Realtors


OPINION

April 2021 Ocean Pines PROGRESS

Moreover, John Viola may well decide to negotiate an extension of his contract before its expiration in June of next year. Given the current make-up of the board, it’s a good bet that he would find majority support for a contract extension. It would seem like there won’t be a vacancy any time soon. There’s a lot that’s gone well under his administration, notwithstanding how the Colby affair was handled. Viola should have made Colby his deputy general manager, but for reasons of his own he did not intervene aggressively to protect her in the face of her difficulties with Perrone. Could he have done more? Probably, but any general manager has to have the freedom to make his own personnel decisions and also to navigate relations with the board of directors. His tenure should not be judged solely on the basis of how he handled the Colby affair. One interesting snippet from one of the investigative reports: Perrone admitted he told a property owner that Colby was not ready to serve as general manager. There would be hundreds of Ocean Pines property owners, and probably a majority of his colleagues on the board, who disagree with that negative assessment. Did that assessment of Colby’s worthiness color his interactions with her since he became OPA president? It doesn’t take a huge leap of logic to conclude it probably did.

2020 Management Review Report Summary The Board of Directors of Ocean Pines Association, Inc. (“Ocean Pines”) releases this summary of the 2020 Management Review Report as part of its commitment to transparency. At the direction of the Board of Directors of Ocean Pines Association, Inc. (“Ocean Pines”), Lerch, Early & Brewer, Chtd. (“Lerch Early”) conducted a review of the management operations under General Manager John Viola to determine if the management team was functioning effectively for the betterment of Ocean Pines. The Board unanimously authorized this review at an August 17, 2020 Board meeting. The Board was specifically interested in whether any of the management team were working to undermine the General Manager. The Board was concerned about this issue as some Board Members heard concerns from Ocean Pines employees and Ocean Pines members that community members were working with employees to oust the General Manager.

Summary of Review Process

Michael J. Neary, an attorney at Lerch Early, conducted the management review. Mr. Neary determined the process for the management review. No one influenced the individuals Mr. Neary spoke with, the documents he reviewed, or the questions he asked during the management review. Mr. Neary scheduled time to interview each member of the man-

LETTER TO THE EDITOR Support for Colby Phillips

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Last month’s Ocean Pines Progress contained an article titled “Phillips complaint details revealed”, in which it is stated that director Perrone challenged Colby Phillips’ actions of dragging the GM, John Viola into a meeting with a homeowner when other avenues were available. I was that homeowner and I’d like to provide clarification. Last February 2020, I was analyzing aquatics’ income figures to demonstrate that the policy change for cards purchased starting May 2019 to “use it or lose it in the fiscal year” was leading to a significant revenue decline over the previous fiscal year when swim cards had no expiration date. I shared these figures with the board and was vocal on oceanpinesforum.com at the time. More importantly, I shared these figures with Colby and John along with suggested alternatives beginning in March. Both acknowledged my concerns and it was John and Colby together who expressed interest in meeting face to face once we got a break from Covid. I accepted an invitation to meet in the Admin building on June 30. To clarify, Colby did not act alone in setting up the June 30 meeting. John came to the meeting ten minutes or so late apologizing for an unexpected issue requiring his attention. Not sure why director Perrone would say there were other avenues available not requiring the GM’s attention when it was the GM who suggested the meeting. Ken Koroknay, Ocean Pines

agement team. At the conclusion of the review, Mr. Neary submitted a report to the Board of Directors. No member of the management team or the Board of Directors reviewed the written report prior to its submission to the Board of Directors on December 7, 2020.

Summary of Findings

The management report concluded that all members of the management team were working to support the General Manager and the interests of Ocean Pines. Several members of the management team, however, expressed concerns that Ms. Phillips may have been involved directly or indirectly with OPA members efforts to undermine the General Manager leading up to the last election of the Board of Directors. No direct evidence corroborated the concerns raised. The circumstantial evidence was insufficient to find that Ms. Phillips worked to undermine the General Manager. Five members of the management team suggested the General Manager favors some Departments over others. One group believed the General Manager favors the Golf Department and Recreation and Parks Department over Public Relations/Marketing and Amenities and Operational Logistics. Whereas another group reported the General Manager favors Amenities and Operational Logistics over others. The dividing line in these perceptions were opinions related to how the General Manager managed the identified management team member. The General Manager reported working well with each member of his team. The General Manager did not know whether, or not, any mem-

ber of his team had worked to undermine him. He was well aware some prior, and current, Board Members were critical of him. But he did not know what, if any, role any of his direct reports played in fostering animosity toward him from these critical Board Members. The General Manager did report concerns about confidential Ocean Pines information appearing in the press. Two specific incidents where confidential Ocean Pines information made it to the press involved information only disclosed to a core group of senior managers. No direct evidence pinpointed any member of the management team in particular as having leaked the confidential information to the press and the circumstantial evidence was inconclusive. All members of the management team believed the team was working well together since the last Board election in August. The uncertainty surrounding whether a new Board would retain Mr. Viola seems to have fostered some of the suspicion and discord amongst staff. The outcome of the election appeared to have been a calming influence on the management team. Following submission of the Management Review report, the Board decided to disclose the contents of the report to Ms. Phillips because those interviewed perceived that of some of her actions had the effect of undermining the General Manager. The Board believed Ms. Phillips should know this information to allow her to take it into account as she continued to progress within the organization given that, at the time, she still sought advancement to the General Manager position. Board of Directors Ocean Pines Association, Inc.

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46 Ocean Pines PROGRESS April 2021

OPINION

Perrone B-08 Complaint Investigation Report Summary The Board of Directors of Ocean Pines Association, Inc. (“Ocean Pines”) releases this summary report as part of its commitment to transparency surrounding the recent complaint logged by Colby Phillips against the President of Ocean Pines, Larry Perrone. Ms. Phillips tendered her resignation on February 16, 2021. Following Ms. Phillips’s resignation, community members raised a number of concerns about this matter. The Board hopes this report answers many of the questions raised about Ms. Phillips’s complaint and the Board’s response to it.

Summary of the Response

Mr. Perrone denied harassing or demeaning Ms. Phillips. He specifically denied yelling at Ms. Phillips. Mr. Perrone acknowledged that he had significant concerns about the Bainbridge project. He acknowledged asking direct questions about the project. He believes that Ms. Phillips often failed to address his questions. He believes it is his duty as a Board member to scrutinize the project thoroughly to protect Ocean Pines.

Findings of Fact

The following is a summary of the factual findings from Mr. Neary’s report: 1.Ms. Phillips subjectively perceived her interactions with Mr. Perrone as harassing and hostile. She experienced Mr. Perrone as yelling at her in two meetings. The evidence supporting this finding was that Ms. Phillips contemporaneously reported general concerns about Mr. Perrone to another employee in June 2020. Ms. Phillips routinely reported her specific concerns about Mr. Perrone harassing her to two other employees since then. 2.At the June 2020 meeting, Mr. Perrone counseled Ms. Phillips on his view that she should be able to handle certain types of matters without escalating them up the chain. Mr. Perrone did not yell at Ms. Phillips in the June 30 meeting. The evidence supporting this finding is that the independent witness present at the meeting recalled that Mr. Perrone did not yell at Ms. Phillips during the meeting. Mr. Perrone was firm but professional in the June 30 meeting. The evidence supporting this finding is that the independent witness present at the meeting recalled that Mr. Perrone was not condescending or demeaning to Ms. Phillips. 3.Mr. Perrone told a resident in August 2020 that he did not believe that Ms. Phillips could perform the job of General Manager for certain reasons. The evidence supporting this is that Mr. Perrone admits it happened. Mr. Perrone subjectively believed this resident was serving as an informal advisor to Ms. Phillips. He therefore felt it appropriate to disclose the information so this individual could use the information to help Ms. Phillips improve her performance. Ms. Phillips confirms that through 2019 this resident was informally mentoring her. She also confirmed that the leadership at Ocean Pines generally knew of the informal mentorship. She indicated that the informal mentorship ended at the end of 2019. Ms. Phillips stated that she made the General Manager aware that it had ended in summer of 2020. Ms. Phillips believed this is the first time she advised management the informal mentorship ended. This conversation happened shortly after the result of the last Board election was announced. Thus, it is reasonable for Mr. Perrone to have concluded the resident in question was informally mentoring Ms. Phillips when he relayed his opinions about Ms. Phillips’s performance on the day that votes from the last election

were counted. 4. Mr. Perrone was present at two meetings in August 2020 to discuss the Bainbridge project where Ms. Phillips was present. At the first meeting at Public Works, Mr. Perrone asked a series of questions about the project. The questions were critical of the work to date on the project. At the second meeting on August 25th, County officials, another employee, and Doug Parks were present. Mr. Perrone again asked a series of questions about the Bainbridge project that were critical of the process and status of the project to date. Mr. Perrone admits asking direct questions seeking answers to alleviate his significant concerns about the status of the project. 5. Ms. Phillips perceived that Mr. Perrone was yelling at her during the meeting on August 25th with County officials. Another employee present shares this view. A second employee present recalled no such yelling. This second employee recalls that Mr. Perrone was direct and firm, but he did not view Mr. Perrone’s tone as yelling. Mr. Parks recalls that he never witnessed Mr. Perrone yelling at Ms. Phillips, but that Mr. Perrone was animated and was attacking the project. Mr. Parks found the target of the questions and criticisms about the project was Ms. Phillips. 6. Based on the various accounts of Mr. Perrone’s conduct during the August meetings it is likely that he was frustrated and agitated with the project and the answers he received to his questions. It is unlikely that he was yelling. But during the August 25th meeting it is likely his voice was animated at times such that the tone could reasonably be interpreted as yelling. The support for the determination that Mr. Perrone was not yelling during the meeting is the he denies it, another employee present does not recall yelling, and Mr. Parks does not recall yelling. 7. Mr. Perrone attended a meeting with Ms. Phillips, Doug Parks, the Human Resource Manager, and John Viola in October 2020. The purpose of the meeting was to discuss Ms. Phillips’s Go Fund Me account for a former employee. The group sought to educate Ms. Phillips the need to clear such activity with her superiors given her position within Ocean Pines. Mr. Perrone responded to Ms. Phillips questions by providing additional guidance. Mr. Viola and the Human Resource Manager felt Mr. Perrone was professional during the meeting and appropriate in his tone. They both recall Mr. Perrone was respectful with the message and acknowledged he knew Ms. Phillips was trying to do a good thing for a friend. Mr. Parks recalls that Mr. Perrone’s tone came across as someone dressing down an employee and negative. Mr. Perrone did not yell in this meeting. His conduct was within the bounds of reasonableness for a counseling session. The support for this is that Mr. Viola and the Human Resource Manager recounted that Mr. Perrone was professional during the meeting. While Mr. Parks felt the tone of Mr. Perrone’s comments were negative, he did not describe Mr. Perrone as acting in a condescending or demeaning fashion. 8. Ms. Phillips, John Viola, another employee, and Mr. Perrone had a meeting regarding Bainbridge on January 4. Ms. Phillips was present through Microsoft TEAMS. The other three individuals were in the same room. During the meeting, Mr. Perrone again asked direct questions about the status of the Bainbridge project. Mr. Perrone was particularly focused on the status of the grant money. He and Ms. Phillips had a difference of opinion as to what Ms. Phillips had represented previously. Mr. Perrone continued to push for the answers to his questions. Ms. Phillips pushed back on Mr. Perrone. She pressed Mr. Perrone

on why he is against the project and said “Why are you always yelling at me?” Mr. Perrone denied yelling, and indicated he did not believe Ms. Phillips was answering the questions. It is unlikely that Mr. Perrone yelled in this meeting. Mr. Viola and the other employee present do not recall Mr. Perrone yelling. They both recall that Mr. Perrone asked direct business oriented questions. Given that Ms. Phillips was present through Microsoft TEAMS it is possible Mr. Perrone’s voice may have come through differently over that platform than it appeared to those in the room. 9. Mr. Perrone attended a meeting on January 11 to give Ms. Phillips the results of the Board’s management review as approved by the Board. Mr. Viola, Ms. Horn, and the Human Resource Manager were also present in the meeting. Mr. Perrone’s role in the meeting was limited. At the end, he reiterated some points Ms. Horn made during the meeting. Mr. Perrone conducted himself professionally in this meeting. The support for this finding is that Mr. Viola, Ms. Horn, and the Human Resource Manager all recount that Mr. Perrone acted professionally during the entire meeting. 10. Mr. Perrone’s actions toward Ms. Phillips throughout this period were motivated solely by legitimate business reasons. The evidence to support this is that no witness suggested Mr. Perrone made any comment referencing a protected characteristic of Ms. Phillips. The closest any witness came to suggesting Mr. Perrone’s actions were motived by unlawful reasons was Ms. Phillip’s suggestion that Mr. Perrone treats another male employee and “everyone else” differently than her. Most of the witnesses, however, suggested Mr. Perrone’s usual communication with everyone he comes across professionally is direct and can be abrasive if Mr. Perrone feels his concerns are not being adequately addressed. Mr. Parks noted one instance in particular where Mr. Perrone acted in a direct and abrasive manner toward a male employee of Ocean Pines. 11. Ms. Phillips believes that the Board started a process to investigate her in mid-summer for attempting to undermine John Viola. She believes Mr. Perrone was the leader of these efforts on the Board. Ms. Phillips has formed this view from community members who she believes had knowledge of the Board’s deliberations. Based on this perception, Ms. Phillips seems sensitive to any interaction with Mr. Perrone. Ms. Phillips’s enhanced sensitivity surrounding her interactions with Mr. Perrone is shown by her general complaint that Mr. Perrone treated her in a demeaning fashion during the recent open budget and finance meetings. A review of the relevant portions of those videos does not objectively support a conclusion that Mr. Perrone was harassing, demeaning, or acting condescendingly toward Ms. Phillips. Ms. Phillips’s subjective belief that they were harassing and/or demeaning suggests she is sensitive to these issues given her general belief that Mr. Perrone was working to undermine her.

Conclusion

In addition to the above findings of fact, the Board received a legal analysis and recommendation from Mr. Neary. Based on the findings of fact and legal analysis, the Board determined Mr. Perrone did not violate Resolution B-08. Board of Directors Ocean Pines Association, Inc. Editor’s Note: Some sections of this report were deleted because of space limitations.


April 2021 Ocean Pines PROGRESS

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48 Ocean Pines PROGRESS April 2021


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