August 2016 ocean pines progress by Ocean Pines Progress

August 2016

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OPA Board Election Coverage Pages 4-10

Board endorses shift to universal sign-up for racquet sports

THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY COVER STORY

ANNUAL OPA ELECTION OPA members elect Hill, Trendic, and Supik to Board of Directors

Thompson blocks access to Election Committee’s vote count meeting

By TOM STAUSS By TOM STAUSS Publisher Hill Trendic Supik Publisher rett Hill, Slobodan Trendic and Patricia Supik were our candidates and Tom Herrick, the Board of Directors’ elected to the Board of Directors in results announced liaison to the Ocean Pines Association’s Elections during the Aug. 13 annual meeting of the Ocean Pines Committee, showed up to witness the committee’s vote Association. count of the OPA’s summer board elections on Aug. 12, only Hill was the top vote-getter with 1,900 votes, followed by to find the doors already closed and the committee conducting Trendic with 1,520 votes and Supik with 1,428 votes. They the annual count in closed session as it had always intended. were elected to three-year terms on the board, replacing reControversy over the count has been intensifying for weeks, tiring directors Tom Terry, Bill Cordwell and Jack Collins. with candidates Slobodan Trendic and Brett Hill leading the Terry was ineligible to seek reelection because of term limits, charge for an open vote count, and Tom Janasek, Doug Parks Cordwell decided not to run, and Collins was defeated in his and Steve Lind entering the fray. They were joined more reelection bid. recently by Herrick, who in a letter to his colleagues urged Frank Daly finished fourth with 1,028 votes, Steve Lind them to remove Bill Wentworth, the committee chairman, from placed fifth with 875 votes, George Simon Jr. had 816 votes the meeting in which the vote count would occur. and sixth place, and Collins recorded 782 votes and finished Herrick, highly incensed by a report in a local weekly in 7th. which Wentworth referred to the open-count candidates and Tom Janasek was in 8th place with 770 votes, Doug Parks Herrick as “nuts” and “goofballs,” asked his colleagues in finished 9th with 576 votes, and Larry Perrone recorded 342 writing whether he, as the committee liaison, was authorized votes and finished tenth. Former director Ray Unger placed to witness the count first hand. Herrick said Wentworth should 11th with 242 votes. not be allowed to oversee the count. The election of Hill and Trendic could trigger a seismic OPA President Pat Renaud, apparently with the support shift on the board, with control migrating back to a majori- of directors Cheryl Jacobs, Tom Terry and Bill Cordwell, told ty that has been skeptical of Thompson’s management of the Herrick in a return letter that they felt no sitting director OPA in recent years. Trendic in particular during this sum- should be involved in the election process, including counting mer’s election season made no secret of the fact that he wants of the ballots. Renaud’s letter didn’t address Herrick’s demand to replace Thompson as general manager as soon as possible. that Wentworth be removed as the individual overseeing the Hill stopped short of that in his public statements this count. summer. Carry-over directors Tom Herrick and Dave Stevens Herrick and the five candidates proposed a compromise of have also routinely challenged Thompson this past year, with sorts, suggesting a “neutral third party” as an alternative to Stevens’ clashes dating back much longer. Herrick attending as a witness, provided that the third party Supik, on the other hand, is thought to be a solid support- be acceptable to both sides. They continued to insist that er of Thompson, who has spoken highly of Supik’s two-year Wentworth not be allowed to attend because of concern that, tenure as chair of the influential Budget and Finance Advi- in a recent meeting of the committee prior to the counting of sory Committee. She joins the pro-Thompson wing of Pat Re- ballots, the chairman had demonstrated clear bias against naud, OPA president this past year, and Cheryl Jacobs, who some of the candidates running for the board this summer. has served as vice-president. With the departure of Terry and This time it was OPA General Counsel Joe Moore who Cordwell, what had been a pro-Thompson majority is now in responded to a formal letter from Herrick offering the “neutral the minority. A similar shift occurred last summer, only in third party” option. Moore, again not responding to the request reverse, continuing the pattern of recent years. that Wentworth be removed from the process, told Herrick that To Page 5 To Page 4

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Despite objections from the general manager, the Board of Directors narrowly voted to adopt a universal sign-up date of May 1 for all Ocean Pines Association racquet sports memberships. Under the change all memberships will run from May 1 to April 30 of the following year. ~ Page 13

Director offers reason for testy relations with golf contractor In a lengthy memo to Board of Directors colleagues and General Manager Bob Thompson dated July 31, retiring director Tom Terry blames a poorly drafted contract with “no teeth” in part for current testy relations between the OPA and the Landscapes Unlimited, the Nebraska-based company that is in second year of managing the Ocean Pines golf course for the A ssociation. ~ Page 22

Directors spar over reserve fund levels, far from agreement The Board of Directors debated at length but in the end came no closer to acting on the general manager’s recommendations for funding Ocean Pines Association reserves during a special meeting July 20. Much of the meeting was taken up with a presentation by General Manager Bob Thompson on his proposals for reserve funding. The presentation confirmed details first published in the Progress’ July 2016 edition about a “secret” Thompson memo distributed to directors in June but not released to property owners and the media. ~ Page 34

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OCEAN PINES BRIEFS The adults-only pool at the Yacht Club has cracked open a bit more for family members of all ages, with family swim nights scheduled for Monday nights from 6 to 8 p.m. through August. The cost is $3 for residents and $5 for non-residents, free for summer or yearround swim members. The Yacht Club pool, for the most part open only to those 18 and older, also has a family fun night scheduled for Wednesday nights, sponsored by the Ocean Pines Association’s Parks and Recreation Department. The new Monday family swim nights, sponsored by the Aquatics Department, are much less elaborate affairs, without games or music. Food and drinks can be ordered at the Yacht Club’s tiki bar. The two hours of additional all-ages access to the Yacht Club pool on Monday night is offset by expanded hours for adults-only use of the pool Friday and Saturday nights in August. The pool, which normally closes at 7 p.m., has been open until 8 p.m. on these two days since the first week in August.

S&R staging area irks another resident

Another property owner who lives near the Swim and Racquet Club complained to the Board of Directors during

a July 28 meeting about the use of the site as a staging area for the bulkhead replacement program. Louis Frey addressed the board during the public comments section of the agenda and said the property has been in a poor condition for the last six to eight years. He argued that utilizing of the property as a staging area for construction equipment and materials violates the Ocean Pines Association’s restrictive covenants, which limit use to that of recreation and parks. “It’s wrong and it’s illegal.” “You’ve got to do something,” he told directors. He said OPA General Manager Bob Thompson indicated that the bulkhead program will only continue for one more year and it wouldn’t be worth the expense to move the staging area to another location. Frey said it should be moved anyway, regardless of the cost, because there is no guarantee that more bulkhead work will not be needed in the future. “There’s going to be a need for something,” he said, something Thompson himself has said on occasion. Frey said the site is an eyesore that is causing devaluation of neighboring properties. Nearby property owners wouldn’t even be able to sell their houses because of the presence of the staging area, which include barges, heavy equipment, and fuels. At one time there was a

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4 Ocean Pines PROGRESS August 2016 July 28 that the Board of Directors has OCEAN PINES BRIEFS From Page 3 diesel fuel leak that required response by police, fire, EMS, local and state agencies like the Maryland Department of the Environment and Department of Natural Resources. He said he doesn’t blame the bulkhead contractor, Fisher Marine, for the problem. It’s the OPA’s fault that the company has been allowed to store equipment and materials at the Swim and Racquet Club, he said. Frey listened to a board discussion about “fast tracking” prosecution of violations of the restrictive covenants against other property owners. He said the board is seeking to enforce the rules against others but will not apply the same rules to the OPA. He said it’s the board’s job to enforce the restrictive covenants and “I don’t think you’re doing that.”

finally voted to accept the Section 17 turnover agreement and to record it in the Worcester County land records. The board voted during a June 25 closed session meeting to approve the Section 17 turnover agreement as prepared by OPA legal counsel Joe Moore. Turnover of the common areas in Section 17 that include outlots, roads and stormwater management areas was stymied by a decade-old standoff between the OPA and the developer of the Pointe, in the far south of the community. Because of the dispute, responsibility for those common areas was never officially transferred to the OPA. The dispute, which began over the developer’s insistence that property owners have individual mailboxes instead of cluster boxes like those located through the rest of Ocean Pines, has dragged on since at least 2002. Apparently still irked by the OPA’s instance that all sections have cluster boxes, including the upscale Section 17, the original developer, David Meinhardt of Bankers Development LLC, refused numerous requests over the years from the OPA to sign off on a turnover agreement. He is long gone from the area, now reportedly living in California, and the property owners in the Point inherited the turnover agreement problem. With Meinhardt nowhere to be found in recent years, Moore had to go to court

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After years in limbo, the common areas of Section 17, the Point subdivision of Ocean Pines, have finally, officially been turned over and accepted into the Ocean Pines Association. OPA Director Cheryl Jacobs, who chaired the meeting in the absence of OPA President Pat Renaud, announced

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County updates officials on spread of Zika virus

Worcester County health officials have briefed representatives from the Ocean Pines Association and local municipalities on the spread of the Zika virus, which is spread by the Asian Tiger mosquito that so far has only been found in Florida. The virus can only be spread by bites from the aggressive mosquitoes or unprotected sexual activity with an infected person. The Zika virus can cause minor flulike symptoms in some adults, but most individuals will not have any indications that they are infected. However, the virus does cause birth defects, including malformed brains and limbs. Several hundred pregnant women have contracted the disease elsewhere during travel, according to Dr. Howard Haft, deputy secretary at the Maryland Department of Health and Mental Hygiene. Haft said only 12 of those women have given birth so far, with six children being still born and six suffering birth defects. Haft encouraged everyone, but particularly pregnant women, to take precautions against the virus. He called the Asian Tiger mosquitos “lazy” but aggressive. He said they live and breed in pools in of water as small as upturned bottle caps, but they don’t travel far. He said they are daytime feeders that wait for people to walk by and then attack and bite. In order to prevent proliferation of the mosquitos, Haft encouraged people to empty or remove anything in their yard that holds water, including buckets, flower pots, children’s toys, tires, plastic tarps, and trash containers. Items like birth baths, wading pools and rain barrels should be emptied and cleaned once per week. Haft said it takes seven to ten days for the mosquitos to reproduce so changing the water and scrubbing items weekly will get rid of their larvae. OPA General Manager Bob Thompson said information about the Zika virus is posted on the association’s website To Page 36

Election over, focus shifts to next OPA president From Page 1 Thompson did himself no favors with Herrick, Hill and Trendic byhis action denying access to the board room during the vote count Aug. 13. [See separate Cover Story for details.] Hill told the Progress after the annual meeting that one of the first orders of business for the newly reorganized board this month will be consideration of Herrick’s recently tabled motion to modify Board Resolution M-06 that allows the Election Committee to count votes in closed session. The new majority is likely to favor a more transparent process, with the possibilities including allowing candidates to observe the vote count. Trendic also has expressed concerns about the chain of custody for ballots after they are received by the OPA’s Elections materials vendor, Berlin’s Ace Printing. Perhaps the most pressing matter facing the new board will be the election of officers, particularly OPA president, who is the board’s liaison with the general manager. Renaud and Terry had been grooming Jacobs to succeed Renaud, who has been battling health problems this past year. Jacobs might still be in the running, but Trendic and Hill are said to be urging Herrick to agree to serve, as is Stevens. If Herrick can be persuaded, he almost certainly would have the votes, assuming he votes for himself. Stevens apparently is playing hardball in an effort to nudge Herrick to accept the presidency, the Progress has learned. He has informed his colleagues that he would vote for Jacobs as president if Herrick can’t be persuaded to serve.

BOARD OF DIRECTORS ELECTION running for the board this summer, Blocked access as evidenced by the appearance of From Page 1 OPA Controller Art Carmine had been chosen – by whom and by what process was not spelled out – to serve as the neutral third party observer. The closed door vote count is specified in Board Resolution M-06. Herrick and the five candidates who have been pushing for an open vote have argued that the board resolution as written is in conflict with the Maryland Homeowner Association Act. Herrick and the five open-count candidates were not at all appeased by the selection of Carmine as the neutral third party observer. Herrick in his response to Moore’s letter, copied to all directors, said that Carmine was not acceptable because he was a member of the OPA administration under the direct control of OPA General Manager Bob Thompson. There was no response to that prior to the vote count Aug. 12. In an email to the Progress, Herrick said that “it is a shame that this Board, under the direction of the current president (Renaud) and vice-president (Jacobs), continues to operate under a shroud of secrecy and does not even allow all of our sitting Directors to be made aware of unilateral decisions that have a direct effect on our association.” He noted that “certain directors” without naming them have openly supported some of the candidates

campaign signs in front of their homes. “I personally wonder, if the candidates certain Directors have openly supported were the candidates being disparaged by the chairperson of our Elections Committee, would they continue with such apathy for his removal,” Herrick said. The Aug. 12 vote occurred in private with at least seven individuals participating. The group included Wentworth, Carmine, committee members Judy Butler and Steven Smith, Ace Printing contractor Thom Gullyas and one or two Scantron technicians. A quorum of the committee was present. At roughly 9 a.m., Gullyas brought in a cartload of ballots through the front lobby from his colorful Ace Printing van parked in the lot in front of the administration building. There was no open session of the committee prior to the vote count, as occurred last year. Access to the board room where the count occurred was blocked by Thompson, with the door between the front lobby and the hallway leading to the board room locked. Four of the five open-count candidates – Trendic, Hill, Janasek and Lind -- were there in the lobby for roughly an hour. Herrick was allowed into the hallway where he conversed at length with Thompson. Roughly 45 minutes after 9 a.m., when the vote count commenced,

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August 2016 Ocean Pines PROGRESS Herrick emerged from his conversation with Thompson to inform the assembled group that Thompson blocked access to the hallway on his own authority as general manager, citing the “safety of OPA employees” as the reason. Herrick wasn’t buying the reason and was clearly upset by Thompson’s “unilateral” decision. None of the other candidates were happy, either, all of whom said the vote count meeting was a violation of Board resolutions and state law governing closed sessions. Before going into closed session, advisory committees are supposed to hold a vote after first disclosing the exemption under the Maryland Homeowner Association Act for why the meeting is being closed. Last year this process was followed, with Wentworth citing “personnel matters” as the reason for going private. That reason has been widely criticized, even by Jim Trummel, the former chairman of the Bylaws and Resolutions advisory committee who drafted the resolution, M-06, that governs the conduct of OPA elections. This year, the committee made no effort to begin the meeting in open session, apparently accepting the view of OPA counsel Joe Moore and Jacobs that a meeting of the Elections Committee to count votes is not a meeting, despite the fact that three committee members were present during the vote count. Hill told the Progress that the process used by the committee was clearly contrary to state law and the

OPA’s own rules for conducting an election. Trendic noted that the Aug. 12 meeting was listed on an OPA document listing important dates as one that was supposed to be open. Hill said a decision whether to challenge the election process will be made once election results are announced at the OPA annual meeting Aug. 13. The debate over closed meetings stems in part from the fact, not seriously debated by anyone, that there is an apparent conflict in M-06 language and the Maryland HOA Act. In an interview with the Progress last month, Trummel said “M-06 gives the responsibility for overseeing the vote count to the Elections Committee, but it still must do consistent with the Maryland Homeowners Act.” That means the committee, before going into closed session to count the ballots, must invoke one of the six reasons for going into closed session authorized in the HOA act, he said. Last year, when two property owners showed up for the vote count meeting, Wentworth invoked “personnel matters” as the reason the committee was going into closed session to count ballots. Trummel said in his “personal opinion” the “personnel matters” exclusion is not a proper reason for closing a meeting of the committee to the OPA membership. By not convening in open session on Aug. 13, the committee avoided doing that.

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By TOM STAUSS Publisher wo candidates for the Board of Directors in this summer’s Ocean Pines Association’s elections filed separate complaints with the office of the Maryland Attorney General’s office, petitioning for relief from the OPA Election Advisory Committee’s practice of counting ballots in closed session. The two candidates, Slobodan Trendic and Brett Hill, were facing uphill odds in obtaining action from the Attorney General’s office in time to affect this summer’s vote count scheduled for Aug. 12. On a separate track, both candidates were planning to attend the vote count meeting with supporters in tow, vowing to refuse to leave the meeting if asked to do so by committee chair Bill Wentworth. [See separate article in this edition of the Progress for details.] Hill disclosed that he would have his attorney along to make the case for an open vote count. In an article published in a local weekly, Wentworth referred to Trendic and Hill as “nuts” and “goofballs” and said if they show up at the meeting with their supporters “half of them will be locked up,” suggesting that there may have been behind-the-scenes discussions about whether Ocean Pines law enforcement should be on hand to make arrests if certain individuals show up at the vote count meeting and refuse to leave if asked. Four Ocean Pines directors – OPA

BOARD OF DIRECTORS ELECTION

August 2016

Two board candidates petition Attorney General for relief in OPA’s closed vote counting Trendic, Hill press for transparency; Elections committee chair calls them ‘nuts’ and ‘goofballs’ President Pat Renaud, Cheryl Jacobs, Tom Terry and Bill Wentworth – were backing Wentworth in his insistence that the vote count be done in closed session consistent with a board resolution that critics say violates the Maryland Homeowner Act as it relates to open meetings. Hill’s letter, sent roughly a week or so before Trendic’s, appears to have scored first blood. At the board’s July 28 monthly meeting, Hill announced that the Attorney General had agreed to investigate the complaint and had sent a letter on July 26 to the OPA disclosing that investigation. Hill said he understood the letter, which was sent by the Consumer Affairs Division of the Office of Attorney General, asked for an OPA response several days before the scheduled Aug. 12 vote count.

OPA General Manager Bob Thompson told the directors that as of the July 28 meeting, no such letter had been received by the OPA. The Progress has learned that indeed the letter arrived shortly thereafter and that the OPA was working on a response. An informed source told the Progress that OPA general counsel Joe Moore met the deadline. [See article in this edition of the Progress detailing the OPA response.] At the board’s June monthly meeting, OPA Vice-president Cheryl Jacobs said the meeting in which votes are counted by the elections committee, a duly constituted advisory committee of the OPA, isn’t actually a meeting but instead is simply a vote count, not subject to the Maryland Homeowner Association Act’s open meeting provisions. Moore, in a brief conversation with

the Progress after the July 28 board meeting, also argued that the meeting of the committee in which votes are counted isn’t a meeting as that term is legally defined. A year ago, Wentworth closed the vote count session invoking a provision of the MHA that allows a closed meeting for personnel reasons. Both Hill and Trendic have been critical of Wentworth’s action a year ago, contending that candidates are not personnel of the OPA and that Wentworth had no authority to go into closed session to count the votes by invoking the personnel exception to closed meetings. Trendic’s letter asking for intervention by the Attorney General in the OPA vote count process was dated July 2. It actually went to an entity within the AG’s office called the Open Meetings Compliance Board. Trendic received a quick response from the compliance board asking him to refile his complaint with the Consumer Protection Division within the AG’s office. He did so. Trendic said he delayed filing his letters to the AG’s office in order to give OPA President Pat Renaud, to whom he had written in June asking for board action to open the vote count, time to respond by a July 2 deadline. Renaud didn’t respond to his letter, Trendic told the Progress, prompting him to fire off his complaint to the AG the same day. In his letter to the two AG offices, Trendic said the counting of ballots in To Page 8

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8 Ocean Pines PROGRESS

BOARD OF DIRECTORS ELECTION

August 2016

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Attorney general From Page 6 closed session violates the Maryland Homeowners Association Act. He cited Board Resolution M-06, which says that counting ballots is the “responsibility of the committee, in closed session, with the assistance of a computer consultant and association staff. The committee shall exercise due diligence on obtaining an accurate count of votes cast.” He then cited Article X of the OPA bylaws that govern advisory committees that says “all meetings held by any committee duly established by the Board of Directors shall be open to all members of the Association or their agents except, when appropriate, meetings or a part thereof may be closed as permitted by provisions of Title 11B of the Real Property Article of the Annotated Code of Maryland – the Maryland Homeowners Association Act.” Trendic in his letter said that, when challenged by critics of the closed counting of ballots, the board invoked one of the exceptions in the HOA Act allowing closed meetings for “discussion of matters related to employees and personnel.” According to Trendic, “none of the board candidates are employees or per-

sonnel of the OPA; they are property owners. Further, OPA’s Board and the Election Committee position” is contrary to a U.S. 4th Circuit Court of Appeals (which has jurisdiction in Maryland) ruling, Herr vs. Aetna Casualty and Surety Co., that “a director is not an employee of a corporation.” Trendic’s letter referred to a motion offered by Director Tom Herrick at the board’s June 26 meeting to eliminate the words “in closed session” from M-06. The motion was tabled, to allow the Elections and Bylaws and Resolutions advisory committee to meet and discuss some way forward. The vote to table was effectively a vote to delay consideration of the issue until after the election this summer. Trendic concluded his letter by describing himself as a candidate for the board but also a homeowner “concerned with the lack of transparency as a result of counting the ballots in closed session.” He asked the consumer protection division to look into the matter “at its earliest convenience.” Failing timely intervention by the Consumer Protection division, Trendic said he would be advocating for reform in the OPA’s vote count procedures, regardless of the outcome of this summer’s election.

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10 Ocean Pines PROGRESS

BOARD OF DIRECTORS ELECTION

August 2016

General manager awarded OPA attorney defends closed election vote count $8,600 bonus for meeting goals in 2015-16 fiscal year By TOM STAUSS Publisher he Board of Directors has awarded Ocean Pines Association General Manager Bob Thompson $8,600 for meeting non-financial goals in the fiscal year that ended April 30. The action was taken by the board in closed session following the regular meeting of the board July 27. The vote was 4-3 in favor of awarding the bonus, with Directors Pat Renaud, Cheryl Jacobs, Tom Terry and Bill Cordwell in favor and Dave Stevens, Tom Herrick and Jack Collins opposed. There was consensus among the majority directors that Thompson had met most of the objectives that the directors approved last fall. Under his contract, the general manager could have received up to $10,000 in bonuses from meeting ten objectives. This bonus is distinct from an additional $30,000 that can be earned by meeting amenity financial goals in the aggregate. That calculation will be based on audited numbers for 2015-16. It has been suggested that, based

on unaudited numbers, that bonuses on reaching financial incentives will be out of reach for Thompson. The non-financial objectives were in force for the 2015-16 fiscal year that ended this past April 30. The board determined the extent to which Thompson has achieved these objectives in his performance review conducted during the July 27 closed session. The objectives were: 1. Working in cooperation with Representatives of Worcester County create a 2-path written plan of action for the bridges on Ocean Parkway and Clubhouse Drive, including milestones, by October 31, 2015. One path will address immediate safety repairs; the second path will address the steps to be taken for replacements, if repairs are insufficient to raise the level of the bridges to State standards. Submit monthly status reports to the Board. 2. By January 4, 2016 present a written plan of action, including milestones, for each of the Major Capital Projects (roads, police building, beach club, etc.) approved in this year’s budget.

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n a letter to the Consumer Affairs Division of the Maryland Attorney General’s office, Ocean Pines Association Counsel Joseph E. Moore has defended the counting of OPA election ballots in a closed session of the Elections Committee. The argument according to informed sources is that the OPA has been opening ballots in closed session for many years, consistent with wording in a board resolution, and that there wasn’t sufficient time to make a change in the procedure in time for this year’s vote count scheduled for Aug. 12. According to an informed source, Moore did not so much endorse the practice as simply explain the procedure and the reasons for it, telling a representative from the Consumer Affairs Division that steps could be taken in due course to bring the board’s resolution specifying a closed session into conformity with the state Homeowner Association Act’s open meeting provisions. Earlier, the source said that Moore agreed with critics that invoking “personnel matters” as a reason for counting the ballots in closed session was an invalid use of one of the HOA’s exceptions for closed counting of election ballots. In a conversation with the Progress after the board’s late July regular monthly meeting, Moore said in his view vote counting isn’t a meeting of an advisory committee, but simply a vote count, a position that OPA Vice-President Cheryl Jacobs, a lawyer, also expressed during the board’s July meeting. In Moore’s letter to the Consumer Affairs Division, he reportedly repeated the personnel matters defense as a reason invoked for closing the vote count in previous years, without necessarily endorsing its validity, according to the source. OPA President Pat Renaud in an Aug. 10 interview confirmed receipt of the letter from Consumer Affairs Division and said the OPA had met an Aug. 10 deadline for response. He said that Moore had discussed the issue with the state representative over the phone and that no enforcement action was expected as a result. The Consumer Affairs Division issued a letter to the OPA asking for an explanation of the close vote count as a result of a complaint filed by two candidates for the Board of Directors, Slobodan Trendic and Brett Hill. – Tom Stauss

August 2016Ocean Pines PROGRESS 11

BOARD OF DIRECTORS

Board fast-tracks clean-up of abandoned property on Bramblewood Drive Board instructs general manager to do whatever he can to mitigate eyesore conditions at house not far from Ocean Pines North Gate make major improvements. “We have to go to court for us to be able to do some of more in-depth things,” Terry said. Herrick said the Public Works crews can at least make the property more presentable for the neighbors. Stevens agreed and said “I think sometimes you just get to the point where enough is enough.” He asked Thompson to do best he can to improve the conditions at the property. As per OPA policy the cost of that work would be added to the owner’s annual property assessments. However, those are not being paid, according to Thompson. This is not the first time there have been violations on the lot or back assessments owed to the OPA. Violations on the property include damage to the roof that is covered by a tarp, as well as a variety of other maintenance and upkeep violations, Thompson said. The owners of the subject property are deceased and the property is held in an estate at this time, he said. That has made it challenging for the OPA to take action regarding the property. Thompsons said the OPA has an updated list of violations but just doesn’t know where to send them to at this time. However,

General manager bonus

change between prior OPA and Sandpiper stated positions. 7. Create and release an RFP on or before February 15, 2016, for the purpose of obtaining bids for the approved improvements of the Sports Core Pool and present responses and recommendation to the Board for approval no later than April 30, 2016 to enable work to begin no later than mid-June or mid-July to ensure project completion on October 1, 2017. 8. Prepare timely informational media pieces for release to news outlets to inform OPA members on the status of projects and accomplishments. 9. By January 4, 2016 present a prioritized plan with target dates with a general plan of action for the Major Capital Projects of the Association over $100,000. 10. Meet on a monthly basis with the golf management company within one week after receipt of financials from Landscapes Unlimited to evaluate the operational performance to the budget, review marketing strategies, membership growth, course maintenance/conditions and Food and Beverage operations and make that information available to the Board.

From Page 10 3. By November 30, 2015 deliver an overview of the maintenance and drainage work for this FY. 4. Provide Quarterly reports for the Board to include deviations equaling a variance of more than 20% from budget based on the YTD figures that address the cause of the deviation as well as the corrective actions undertaken/to be taken. (These deviations are to be monitored at the major income and expense categories within a department, not each individual line item in the budget). 5. By March 1, 2016 investigate and collect the functional, operational and information sharing needs for in, out and across OPA Departments and major administrative areas that will be the basis for a written IT plan to be delivered by April 30, 2016. 6. Complete negotiations with Sandpiper representatives by October 31, 2015 that will, upon acceptance by the Board, become the basis of a formal written agreement between Sandpiper and OPA for the deliverance of natural gas; identify all elements of suggested

Problem property

The Bramblewood Drive property that the Board of Directors in late July directed General Manager Bob Thompson to clean-up on a fast-track basis as it appeared Aug. 10, roughly two weeks after the directive was given. This eyesore is a source of increasing frustration among some directors and community residents, who believe that OPA management has dragged its feet in making cosmetic improvements to the home, reportedly in a protracted foreclosure process that eventually will produce a new owner. the disposition of the property is in the process of changing. Once the ownership issue is resolved, then the OPA will at least know with whom it needs to correspond regarding the property, he added. During the public comments segment of the board’s agenda, property owner Joe Reynolds said the issues at 3 Bramblewood are a “perfect example what goes wrong” with regard to property maintenance in Ocean Pines. He said

there have been violations on that property for about a decade and the home is marked by the county as uninhabitable. “If this were in Tern’s Landing or Colonial Village that house would have been cleaned up within months, not a decade,” Reynolds said. He said it is unfair to the neighbors that nothing has been done about the property for so long. He said it is going to cost the OPA

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By ROTA L. KNOTT Contributing Writer alling the neglected property a hazard to the health and welfare of the community, the Ocean Pines Association Board of Directors voted to “fast track” the clean-up of a lot and home at 3 Bramblewood Drive within close proximity of the North Gate. The board took the action in a unanimous vote during a July 28 meeting following an update on the status of the property by General Manager Bob Thompson. Director Tom Herrick made the motion to designate the violations on the property for “fast track” resolution by having OPA Public Works staff enter onto the property and perform the required maintenance and repairs. Director Dave Stevens gave a second to the motion. Director Tom Terry wasn’t sure there was any value in fast tracking resolution of the violations since the OPA is already working to address the concerns. He said it will not necessarily allow the OPA to “move any faster” to address some of the larger issues on the property because a judge must give the association permission to remove any items not determined to be personal property or to

BOARD OF DIRECTORS

August 2016

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By TOM STAUSS Publisher cean Pines Association General Manager Bob Thompson is “cautiously optimistic” that the Yacht Club contractor and management has solved the odor problem at the Yacht Club by closing off air intake vents on the north and east sides of the building. Thompson, during the July 28 meeting of the Board of Directors meeting, said the closing of the vents seems to have cleared up the odor problem, which leaves the issue of “how to pull in air from other sources.” Not everyone is convinced the problem has been solved for good, with Director Jack Collins suggesting that at

a recent visit to the facility there had been a “heavy odor” in the men’s room. Previously, the odor had been detected mostly in the downstairs women’s bathroom, which suggests that the mysterious odor may have multiple sources. Pines resident Steve Lind, a candidate for the OPA board this summer, suggested during the meeting that the odor issue may have pre-dated the new Yacht Club, which is more than two years old. Thompson a month earlier had said the same thing. Thompson’s remarks and cautious optimism during the July 8 meeting was a follow-up from comments he made during the board’s June 25 meet-

Bramblewood

the Realtor can do?” Collins said it would simply to see if she had any additional information that could be useful to the OPA. Thompson responded that the OPA has done what it can do at this time. “We’ve done our research. If there’s PRSRT more you want me to do direct me to do it. I think we’re appropriately following USPOS the right course of action based on last PAID month’s board guidance,” he said. “Your call,” Collins told Thompson, MAILMO adding that he was just pointing out that a neighbor provided information about a real estate agent hoping it would help. Director Cheryl Jacobs, who chaired the meeting in the absence of OPA President Pat Renaud, said one of challenges faced by homeowners associations is when properties are in foreclosure but the process is not completed. It puts the property in limbo because the owner is absent and the bank does not technically own the property. Tom Janasek, a candidate for the board, pointed out that there is a dumpster on the 44 Harbor Mist lot and asked who put it there. He said somebody is “spending some money” on the property if they put dumpster on site. The board also voted to find two additional properties in Ocean Pines in continuing violation of the restrictive covenants and to send them to the OPA attorney for further action. At 47 Harbor Mist the screen is falling off on the porch and needs to be repaired. The owners are also delinquent on their assessments by one year. At 35 Burr Hill, the property also needs maintenance, including repairs to damaged screening on the porch, screening around the bottom of a deck and removal of debris. The owners are three years in arrears in property assessments and liens have been placed on the property.

From Page 11 some significant money to repair and make the property presentative, probably $20,000. Thompson also provided an update to the board regarding violations on the property at 44 Harbor Mist Circle. He said Public Works crews would be on site that week to clean up the weeds and 11029including Racetrack grass, thatRd. which is growing Berlin, MD 21811 out of a boat on the property. The boat cannot be removed because it is considered personal property despite its poor condition. Additionally, the OPA has contacted a power washing company to clean off both the boat and the house itself. The general manager said the association has not been able to track down the owners of the property regarding either the violations or delinquent annual dues. The property is about $7,000 in arrears on assessments and the OPA “can’t find the owners anywhere.” Thompson said the trail ended in western Maryland when the OPA attempted to find the owners. The house went to foreclosure in May and there is a contract on it, Thompson said. But “we don’t know who with yet” because it hasn’t been finalized, he added. Once the transfer of ownership is final the OPA will follow up. Director Jack Collins said he believes a real estate agent is involved in the transfer of the property and suggested the association contact her to help locate the owners. Thompson said the property is still in the current owner’s name so it can’t contact anyone else about the situation at this time. He said the real estate agent wouldn’t be any help. “The Realtor can’t give me access. The Realtor can’t pay me,” he said. “What is it we’re hoping

12 Ocean Pines PROGRESS

By ROTA L. KNOTT Contributing Writer espite objections from the general manager, the Board of Directors narrowly voted to adopt a universal sign-up date of May 1 for all Ocean Pines Association racquet sports memberships. Under the change all memberships will run from May 1 to April 30 of the following year. Memberships purchased at any other time during the year will be prorated. Currently, racquet sports memberships, like golf and aquatics, can be purchased at any time and are good for 12 months from the date of sale. The change leaves current policy for golf and aquatics in place. The board approved a motion by Director Jack Collins, liaison to the Racquet Sports Advisory Committee. Col-

Yacht Club odor From Page 12 ing, when he told the directors that he was taking steps to address the problem but hadn’t had any luck determining the source of the odor. “We’re still having that recurring odor downstairs,” he told the board. Thompson said that “rumors” that nothing was being done to address the problem are “factually inaccurate.” In fact, he said he has been working diligently to address the issue. Wax seals on all of the toilets in the restroom were replaced with new ones

August 2016 Ocean Pines PROGRESS

Board endorses shift to universal membership sign-up for racquet sports Jacobs joins Stevens, Herrick and Collins in approving annual membership renewal date for tennis, platform tennis and pickleball lins originally made the motion at a June board meeting but discussion of it was tabled in order to give General Manager Bob Thompson time to meet with the committee to discuss the pro-

posal and investigate the ramifications for OPA administration. With Thompson doing only part of that – meeting with his administrative staff but not the RAC -- a majority of di-

and new check valves have been placed in the floor drain. Additionally, crews have inspected all of the trap primers to ensure that they operating properly and that all traps had liquid seals and were installed at the proper height. Finally, contractors performed a pressurized sulfur smoke test on all of the sanitary sewer lines and the venting system to determine if there were any leaks. Nothing amiss was found, according to Thompson. He said a smoke test will typically find any cracks or separations of piping in the system, “but everything was fine.” Thompson said the next step would

be to change the intake valve on the northside of the building. Thompson said the old Yacht Club had a similar problem with odors that emanated from the men’s restroom. Ultimately, it was determined that that odors were intruding into the old facility through an intake valve. He said there could be a similar cause for the odors at the new Yacht Club. The intake valve will be blocked off and tested to determine if that’s where the odor is coming from, he added. According to Thompson, the odors have not recurred since the intake valve was blocked off.

rectors said it was time to take a vote on the motion. The motion was approved in a 4-3 vote with Collins, and Directors Dave Stevens, Tom Herrick and Cheryl Jacobs in favor and Bill Cordwell, Tom Terry and OPA President Pat Renaud, who participated via conference call, in opposition. Collins said the RAC wants to eliminate the staggered memberships in favor of a universal renewal date so it is easier to determine who has a valid membership. The committee unanimously believes that the universal membership date would be beneficial to members, help staff with tracking of memberships and support the generation of new members. Collins argued that because the racquet sports facilities are not staffed year round, it is difficult to control access to the facilities. Racquet sports membership try to self-monitor usage but it is difficult because of the staggered membership dates. Cordwell opposed the proposal, saying that is will start down a “slippery slope of having advisory committees go over the general manager and the management’s head” to bring issues directly to the board. In fact, advisory committees under OPA corporate structure are set up to advise the board, not the general manager. Cordwell is a three-year member of the board who is retiring this month.

BOARD OF DIRECTORS

14 Ocean Pines PROGRESS August 2016 that is not the case for racquet sports, Universal membership From Page 13 Cordwell said the staggered memberships were created for all amenities so residents would have the opportunity to sign up at different times of year. “This committee wants to have something different than the rest of the community,” he said, adding, “I just don’t like that an advisory committee wants to go around the management that we have here and bring something to the board to get it done because they didn’t get the answer that they wanted (from management).” Stevens said that is exactly what the advisory committees are supposed to do. “This is a board,” he said with an emphasis on board, “advisory committee. Not a general manager’s advisory committee.” He said the RAC is not circumventing anything; it did exactly what it was supposed to do. “ It made a proposal to the board and submitted it through its board liaison, who then made a motion to approve the change, Stevens said. Terry said he has spoken with some racquet sports members and the real issue of concern is the ability to monitor from a distance whether or not someone’s membership is valid. The goal is to not have “interlopers” using the courts. At every other OPA amenity, members are required to check-in with staff when they first arrive, Terry said. But

he said, and requiring members to sign in and show their membership card could resolve some of the committee’s concerns. “I think there are other solutions to this besides changing the ability of someone to buy a membership at other times,” Terry said. He said the OPA shouldn’t be discouraging members from purchasing memberships throughout the year. The other issue, Terry said, is how to marry the visual tag of a membership card from a distance with when a membership actually expires. He said he thinks there are solutions that will allow for year-by-year purchase to continue and allow for a tag system to identify members. Herrick, a racquet sports member, said the change in membership timing was not just recommended as a way to monitor members. He said the OPA has “no idea of the accurate membership dates.” That means the association can never have an accurate count of the memberships because they are constantly being sold, renewed or expiring. Jacobs asked if Thompson would like to add anything to the discussion. Thompson quipped “If I’d like to or not. Was your question? No I wouldn’t like to.” “I’m being polite,” Jacobs responded. “I know. I know,” Thompson said. The general manager said the rate

BOARD OF DIRECTORS structure for the amenities is typically determined as part of the OPA’s budget process. “That’s when this should happen. Not mid-way through the summer. I just think it’s out of line with our normal course of action for these type of things,” he said. Using a universal membership date may be a better way of structuring all amenity memberships but it is not the right time to consider the change, he said, adding that the board shouldn’t be “picking and choosing” because racquet sports are “different” in some way, he said. Thompson said the change will also have an impact on the association’s membership sales strategy for the racquet sports. “I believe giving the member the opportunity to pay when they are willing to pay… is the appropriate sales strategy,” he told the board. Thompson said he was perplexed by the concerns about tagging of valid memberships. All other amenities require a sign-in process, but he said the issue with racquet sports is “ego-driven” because everyone wants to go directly to their space instead of signing in at the clubhouse. Instead of making the change mid-season, Thompson suggested reviewing the recommendation during the budget process and “maybe change them all back” – racquet sports, golf and aquatics.

“Are you suggesting an amendment to that motion?” Jacobs asked. “I don’t make amendments,” Thompson said, but added that he was suggesting the board not pass the motion to make the change now. Collins said Thompson made a good case for waiting. “But you’re asking to delay any decision until the next budget cycle,” Collins said, suggesting that waiting until the budget is approved in February is too late. Thompson responded that the OPA has already set the membership rates and structure for the year. Changing the rates mid-season is not a usual practice. “We’re parsing it for individual groups without looking at the whole just seems odd to me. And we’re also going outside the regular process when these changes typically occur,” he repeated. Collins asked about making it a pilot program for the rest of the year for racquet sports. Thompson said typically he would agree to a pilot program “to test the water.” But in this case, the proposal isn’t something new; it’s something the OPA already tried and decided to do away with, he said. The usual 4-3 split on issues that are closely divided on the board didn’t hold this time. Jacobs voted with the three directors – Stevens, Collins and Herrick – with whom she often disagrees.

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August 2016 Ocean Pines PROGRESS 15

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Collins, Jacobs spar over direction to GM on racquet sports proposal Board minority suggests Thompson ignored board directive to seek out racquet sports committee to discuss option that he opposes By ROTA. L. KNOTT Contributing Writer heryl Jacobs and Jack Collins agreed to disagree about the content of a Board of Directors discussion in June regarding switching to a universal sign-up date for membership in the Ocean Pines Association’s racquet sports clubs. At issue was whether or not General Manager Bob Thompson was directed to contact members of the Racquet Sports Advisory Committee to discuss that entity’s recommendation to move to a universal sign-up from a rolling membership structure in which members can sign up anytime during the year, or if he was just supposed to investigate the proposal and report back to the board by its July 28 meeting. Collins, who serves as board liaison to the RAC, originally offered a motion to implement the May 1 universal registration date for racquet sports, at the board’s June meeting based on a recommendation from the RAC. He said the issue has been circulating through the racquet sports community for several years and has been the subject of ongoing discussions between the RAC and the OPA administration. “Evidently this is not new,” he said. Following board discussion in June, Collins’ original motion was tabled and the directors agreed to have Thompson look into the ramifications of implementing the change in membership structure. He said the board had directed Thompson to provide additional information about the shift to a universal membership structure for racquet sports and to communicate with representatives from the RAC about its proposal. During the July board meeting he

said he would “like to know if that occurred and where we stand with that.” Jacobs disagreed with Collins regarding the board’s instructions to Thompson at that June meeting. Intimating that they were inaccurate, she said Collins was reading from the notes of the board secretary about that meeting. She, on the other hand, reviewed the video footage of the meeting and said the board agreed that the committee was to work with the general manager to further determine the impact of such a change. “And that would be communicated back to us,” she said. Stevens disagreed and said he would “be happy to sit down with you and watch” the video of the June board meeting. He said Director Tom Terry offered a motion for the general manager to investigate the committee’s proposal, talk with the RAC and present the information to the board in July. The is what is reflected in the meeting minutes drafted by board secretary Tom Herrick and is “accurate,” he said. “I haven’t heard anything about that. I haven’t heard anything new,” Stevens said. Jacobs accused Stevens of restating Terry’s motion, adding that it was “immaterial at this point.” Herrick, who has been a racquet sports member, said the issue of a universal membership date was brought to the OPA administration many times but was never acted on by the general manager or his staff. That’s why the committee finally proposed the change to the board. “It’s been over a year that it’s been To Page 18

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Thompson updates board on pending amenity projects Paving slows pickleball court conversion, Sports Core pool improvements well under way and even ahead of schedule By ROTA L. KNOTT Contributing Writer lans for the repurposing of two tennis courts at the Manklin Meadows Recreation Complex for pickleball use are being delayed by the lack of contractors willing to take on the small paving job for the Ocean Pines Association. Bob Thompson, OPA general manager, told the Board of Directors during a July 28 meeting that only one bid was received for the paving portion of the project, which simply involves straightening out the curved corners on the tennis courts. The change is necessary to create traditional pickleball courts. Thompson said it is challenging to find a paving contractor because of the small size of the project and because the companies are all behind schedule on other, larger jobs because of the wet weather earlier this summer. “It’s almost patchwork” Thompson said of the paving required for the pickleball courts. He told directors he will continue to seek additional bids for the work.

Still, the project of converting two tennis courts for permanent use by pickleball players is moving forward. “We’re managing the process,” Thompson said. In addition to the paving work to create 90-degree angles on the corners, the project includes repainting the courts and installing fencing. Three bids were received for the court painting and one for the chain link fence. The recreation and parks department has ordered the netting for the courts. However, Thompson is waiting for all of the pieces to be lined up before beginning the court conversion. He said he didn’t want to start a portion of the project and still be waiting for another part of it to be completed at a later time. In May the board approved Director Tom Herrick’s proposal to restripe two largely unused tennis courts in Manklin Meadows and make them permanent pickleball courts. The board agreed to repurpose tennis courts numbers 11 and 12 as the new home for pickleball courts at a cost not to exceed $25,000. Converting the two

Racquet sports

hasn’t had to opportunity to discuss the issue with the golf team. Thompson argued that if the board was going to consider making the change to a universal membership date for one amenity, it should consider the change for all amenities and the impact on administration. He said he has started the process of evaluating those impacts but “I’d like to completely vet that.” Regardless, he said he wouldn’t recommend making any changes to the membership structure outside of the OPA’s annual budget process. “There are other things that impact the association that need to be considered here,” he said. Thompson lost the argument. The vote to change to a May 1 universal sign-up date for racquet sports passed 4-3, with Jacobs somewhat surprisingly siding with Collins. [See separate article in this edition of the Progress for details.]

From Page 16 talked about,” he said. Terry said his original motion was for the two parties, the RAC and general manager, to talk about the issue and report back to the board. He said he “didn’t care who called who.” Since that didn’t happen, Terry said the original motion should be brought off the table and “let’s deal with it.” When finally invited by the board to comment on the proposal, Thompson tried to discourage the directors from passing the motion to implement universal membership date for racquet sports. He said he had spoken with the OPA controller, membership office, recreation and parks director, staff who runs dayto-day racquet sports operations, and the aquatics director to discuss the impact of changing the structure to a May 1 universal membership. He said he

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Thompson said there are some low spots on the pool deck that will be leveled and drilled out to improve drainage. “We’ve had water sitting around that deck since it’s been covered in certain spots,” he added. The pool expansion and improvements include replacing all 12 skimmers, tile work, depth markers, lining and demarcation and installing new Diamond-Brite plaster. Additionally the project will install a handicapped chair lift and safety rails. Facility deck improvements include installing the Rubaroc rubber chip surface around the pool area.

Sports Core pool improvements Construction is well under way on improvements to the Sports Core indoor swimming pool to create a step down entrance into an expanded pool area, to resurface the pool, and to add new rubberized decking throughout. There are even indications that the project is ahead of schedule. Thompson said the contractor is doing an excellent job and he is pleased with the work so far. It is appears the project is on track to meet the deadline of reopening the pool for public use on Monday, Sept. 12. The aquatics staff is planning a special event and will inviting all pool members to the facility prior to the official reopening. The pool contractor has been extremely helpful in pointing out any concerns that may impact the next phase of the project for the decking contractor, he said. “It’s been a good working relationship between all the parties,” the general manager told the board.

Beach Club bathrooms Bids were due to the OPA during the last week of July for renovation or construction of new bathrooms at the Beach Club in Ocean City. Thompson said all bids will be analyzed and leveled before being presented to the board for review and consideration. Director Jack Collins wanted to know exactly what information would be provided to the board prior to any vote to award a contract, particularly whether all submitted bids will be made availTo Page 20

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BOARD OF DIRECTORS

August 2016

Amenity projects From Page 18 able to the directors for review. Thompson said the association will follow the same process that it does for all projects for which bids are solicited. He said the bids will be analyzed, elements of each response will be placed on spreadsheets, the pros and cons of each bid will be listed, and staff will make a recommendation for contract award. Copies of all of the contractors’ bid documents will be attached. “When we analyze them we give them all to you,” he said. Collins is particularly interested because he has been advocate of renovating the lower level bathrooms in the belief that a new restroom building, which Thompson is said to favor, would be much more expensive than a renovation. Both options have been bid, and the results of the leveling process could help determine whether the renovation option is most cost-effective. Some critics of a new building have said that permits for a new building will be nearly if not completely impossible to obtain from Ocean City and state regulators because of the Beach Club’s close proximity to the ocean and the dunes that protect property along the beach. The board included $525,000 in the fiscal year 2017 budget for engineering and construction of a renovated or new above-ground bathhouse. The RFP solicited design-build proposals from con-

tractors and included renovation of the existing below grade bathrooms or construction of a separate bathhouse above ground. Bids for both options were received by the OPA. The Beach Club is located on the ocean between 49th and 50th streets in Ocean City. The building was constructed approximately 45 years ago and includes a bathroom facility on the ground floor. The bathroom facility is approximately 3,000 square feet and contains both men’s and women’s locker rooms, showers and toilets. Also included are areas for entry, storage and a janitor’s closet. White Horse Park bathrooms The contractor hired to build new bathrooms in White Horse Park is working with the county to acquire the final permits. Additional information about the structure was required by the fire marshal. Thompson said preliminary site work has been completed, including having a tree company trim nearby vegetation. “It does not appear we’re going to have to remove any trees based on the current location,” he added. Yacht Club awnings At the Yacht Club the OPA is still waiting on the correct on awnings to be installed on the tiki bar. Thompson said the awnings arrived but were not cut to

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Sports Core pool improvements

The Sports Core pool improvement project was well under way in early August, on track to meeting or even beating the deadline for completion. The pool is still scheduled to reopen on Monday, Sept. 12. Pictured is the new stepped entrance area in the shallow end of the pool. the correct size and had to be returned. He said they are a special order item and had to be reordered. During the public comments portion of the meeting, Tom Janasek, a property owner running for the board during this summer’s election, said the OPA should have just had the awnings installed temporarily as best it could for the remainder of the season and then have them cut to the appropriate size. He also took issue with a cracked counter top on the tiki bar. He said it is sharp and dangerous

and the OPA needs to have it filed down or fixed. Road repaving The OPA is preparing for its annual road repaving project and is soliciting a RPF, with a pre-bid meeting for contractors to be held in early August. The paving project will commence in the fall. Thompson said he is also investigating the option of incorporating a “road rejuvenation process other than just paving” into the annual road work. He said that may help stretch funding and extend the life of the community’s roads.

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Terry offers explanation for testy relations between GM, golf working group and LU Retiring director blames ‘contract with no teeth’ for continuing challenges with golf course management company By TOM STAUSS Publisher n a lengthy memo to Board of Directors colleagues and General Manager Bob Thompson dated July 31, retiring director Tom Terry blames a poorly drafted contract with “no teeth” in part for current testy relations between the OPA and the Landscapes Unlimited, the Nebraska-based company that is in second year of managing the Ocean Pines golf course for the OPA. The memo in a way can be seen as a primer for directors who were not in office in the tumultuous period in which a previous board voted to remove Billy Casper Golf as the OPA’s golf course manager. The board subsequently chose LU as the replacement company after an extended vetting of alternatives, including a proposal by BCG to continue operating the course. LU, which based its proposal on a promised effort to aggressively boost golf membership in Ocean Pines, assumed its current role as course manager in June of last year. Two Casper employees, director of golf John Malinowksi and course superintendent Rusty McLendon, were hired by LU to manage the course day-to-day, meaning that, as a practical matter, not much has changed in the way most golfers experienced the course under its new corporate management. But LU has not delivered any improvement in membership since arriving on the scene; membership excluding 19 lifetime members has dropped from 118 on June 30 last year to 107 this year. While LU has not been nor fairly could have been blamed for last year’s numbers, some critics are not so forgiving with this year’s numbers, believing that the company has done very little to mar-

ket memberships to Ocean Pines property owners and residents thus far. A revised marketing plan was delivered to the OPA via email in late July, which in turn caused additional turmoil because of the way the document arrived in the inboxes of all seven OPA directors. [See separate article in this edition of the Progress for details.] The leading critics of LU’s stewardship of the course thus far include Terry, OPA President Pat Renaud, and retiring director Bill Cordwell, along with Thompson, who recently made it known he was prepared to assume in-house oversight of the course from LU if the board would agree. Terry, Renaud, Cordwell and Thompson have comprised the OPA’s golf oversight working group since last fall, when it took over the role from a previous group headed up by Director Jack Collins, one of the board members who led the effort to oust BCG as the OPA’s course manager. Collins’ oversight role, shared by two Ocean Pines golfers, was eliminated by Renaud after last summer’s board election, in which a new board 4-3 majority emerged on many contentious issues. In late July, Cordwell, perhaps the most outspoken critic of LU, proposed a special meeting of the board in which LU’s continued management of the golf course could have been put up for a vote. According to Terry’s memo, “Cordwell has removed his request for a meeting.” Terry didn’t definitely offer a reason for why the special meeting didn’t happen. But if Terry’s memo is to be taken at face value, it appears that Terry and his working group colleagues concluded that contractually the OPA has weak grounds for attempting to cancel the three-year contract this far out from its

expiration date. According to the memo, OPA has greater leverage two years into the contract. Terry spends much of his memo critiquing the contract for its lack of enforcement teeth, a claim that Collins told the Progress recently that he finds highly ironic. “The man was very much involved in drafting the (LU) contract – actually he wrote it -- so him finding fault with it now strains credulity,” Collins said. If re-elected to the board, Collins said he would like to resume his oversight role on the OPA’s golf working group, adding that it should be made up mostly of members of the golf community in Ocean Pines, rather than board members. Whatever the outcome of Collin’s re-election bid, the golf working group will be reconstituted after the new board takes over in the latter half of August. Neither Cordwell nor Terry were candidates for reelection this summer, Terry unable to run because of term limits. Cordwell was eligible but chose not to run. In remarks aimed at directors Tom Herrick and Cheryl Jacobs, two directors who were elected to the board last summer, Terry offered his version of the “history” of the golf management situation in Ocean Pines that he said would help enable them “to address its challenges. I am sure there will be conflicting views,” he acknowledged. “It is this history, as well as current performance and trends of LU which concern some people and me.” Terry said the history “all started with me I guess. I was the one who put into the last Casper contract language which required them to achieve a level performance or the Board would have

the right to terminate the contract with no harm to the OPA. The language was based on there being a reasonable assumption on the year end performance. This required in November of the year that a projection would be made on if Casper was going to achieve the fiscal year’s contractual goal for net revenue. It was the OPA who had the full authority to project the year end expectation. “With that as a background, in the spring of that year (approximately seven months before the November decision time) we also began an RFP (request for proposals) process which would allow the OPA to be ready with a replacement golf management company should the Board decide to remove Casper. This RFP was to have been concluded with companies competing for the work and the RFP was to have been done by November. “These two events, the establishment of a fiscal year end expectation and the conclusion of an RFP in November would have positioned the OPA for a solid decision. Casper would perform and other companies would compete in the RFP.” Terry said this approach was completely derailed. “First the Board did not accept the OPA staff ’s projections for the end of the year … The Board simply said Casper would not make it -- end of story. Then rather than exercise what was in the contract to terminate Casper the Board (or should I say a majority of the Board) decided to bring Casper into the RFP process where they were competing for work they already had contractually. “I have run hundreds of RFPs and I had never heard of doing such a thing,” Terry said. He acknowledged that Casper had not achieved its own budget forecasts for many years “but they were clearly on a path where the losses at the course were within some level of reason. People keep wanting to point at the year (s) where Casper lost a lot of money, while they conveniently forget to add that the course was down to nine holes while the

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GOLF

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Testy relations From Page 22 OPA invested in its course. That investment is highlighted by LU in their recent marketing document. LU brings focus to the advantage the OPA has with its new greens. These are the very same greens whose construction caused the losses.” Terry admits that he was not a “big fan” of Casper when the company kept missing its own budget projections. “But, during the RFP process there was documentation developed showing that LU was not a company focused on opportunities like the OPA. They were a high end country club support company. More than once this was presented,” he wrote. “In the end the Board missed the decision to change management companies by months. The plan to keep Casper or have a new company long before spring (of last year) was lost.” According to Terry, the board was greatly swayed in its decision to hire LU on the company’s “focus on membership growth in their presentations.” Contemporaneous reporting in the Progress bears that out, with one LU executive even telling those attending a town on golf that if his company failed to meet its membership goals, he would expect to lose the management contract. In a statement that Collins said is contrary to the facts, Terry’s memo said “to make matters worse, a contract for LU was developed with no teeth in it for the OPA for two years. There was no requirement for mem-

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sand dollars, but that has not impressed Terry or other LU critics. It was well within the threshold for poor performance. Terry in his memo asserts that LU actually is costing the OPA more money than Casper. “LU’s financial performance has only matched Casper via cost cutting. The revenues and memberships have returned to a downward trend. There is great fear in some people that this cost cutting will eventually damage the very thing which brought the OPA’s courses reputation back,” Terry wrote, adding that “the OPA has spent millions of dollars on the golf course. Casper’s trends were being achieved with the same club-

house which sits there today.” Terry went on to say that he “fully understands” Cordwell’s “passion and concern over the future of the course.” “So it comes back to me I guess. I put the language in the Casper contract which was used by folks with equal passion to Bill’s. They wanted to make a change just as fervently as Bill wants to protect the course. In the end the OPA must work with LU to achieve mutual goals. It is not the OPA’s job to protect LU. It is its job to challenge LU to perform even if there are ‘no teeth’ in the contract,” he said. “I also hope the OPA never again enters into a contract where there are so few options available for the OPA if things are not trending well.”

24 Ocean Pines PROGRESS

By TOM STAUSS Publisher he 2015-16 year of board service ended as it begin, with two factions at odds over how to manage relations with Landscapes Unlimited, the Nebraska-based company now in its second year of operating the Ocean Pines Association’s 18-hole golf course. Director Dave Stevens has slammed OPA President Pat Renaud once again for the way the president handled recent communication with LU. The most recent kerfuffle arose after Renaud, a member of the four-person group of three directors and the general manager that oversees LU, wrote an email to LU president Tom Everett in late July complaining about a recent email to all OPA directors by LU’s regional operations chief. Scott Nissley, the regional executive who has had a rocky relationship with the golf working group from early on, last month forwarded a copy of the company’s most recent membership marketing plan to all OPA directors. According to Renaud, it was supposed to go to Thompson only. At a June 23rd closed meeting between the board and LU executives, “the Ocean Pines Board and LU management acknowledged that there was some friction between the LU regional representative (Nissley) and the OP General Manager,” Renaud said in his email to the LU president. “After some discussion, you requested another 60 days to solve the problem, which OP agreed too (sic). There would be an ongoing dialogue between you and our GM, Bob Thompson.” According to Renaud, the “major grievance on OP’s part was the disruption of the line of authority.”

GOLF

August 2016

Stevens slams Renaud for sending policy memo to LU without board input Membership report goes to full board, disrupting ‘line of authority,’ OPA president says To resolve that issue, he said “it was agreed that in the future … Nissley would correspond directly with … Thompson on all matters and that … Thompson would pass onto the OP Board necessary information that (it) would need to make policy decisions.” Nissley, Renaud said in his email, “unfortunately” did not follow this procedure when he sent LU’s most recent marketing plan to all directors and Thompson in a July 21 e-mail. Renaud referred to Nissley’s communication as “an email containing marketing strategies,” when in fact it was a glossy color brochure that directly responded to another performance deadline that the directors set during the June 23 closed meeting. In point of fact the most pressing issue for directors including both factions is the apparent lack of progress LU has made in rebuilding lost golf memberships, which is now just slightly above 100 households of the 8400-plus properties in Ocean Pines. The directors gave LU 30 days to produce its marketing plan, and Nissley’s email including the membership plan effectively met that deadline with days to spare. Renaud’s letter to LU’s president

made no reference to that. “While the mail and enclosures from Mr. Nissley were interesting, they should only have been sent to Mr. Thompson because they dealt with administrative matters and the Board is not the point of contact for Mr. Nissley,” Renaud wrote. Renaud said he received a call from Nissley on July 25 “apologizing” for the email that went to all the directors along with a promise that such communication “would not happen again.” Renaud said he accepted the apology but he told the LU president that “our concerns still stand.” He concluded by asking whether “you – it was not clear whether he meant the LU president or Nissley or both – (are) going to call Bob Thompson as we discussed on June 23? Do you have any more thoughts on how to cure these ongoing problems?” The LU president reportedly has responded to Renaud’s letter, echoing Nissley’s apology and reiterating that communication in the future would be between Nissley and Thompson only. But whether that policy will remain in force once the board is reconstituted after this summer’s board election remains to be seen. If Director Dave Ste-

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vens’ July 27 email to Renaud is any indication, the entire relationship with LU may be overhauled, to one degree or another. Two of the golf oversight group, directors Tom Terry and Bill Cordwell, are no longer on the board, and presumably no longer will be on oversight committee, unless a new board majority votes to extend their roles. Stevens made it clear he was very unhappy with Renaud’s letter to the LU’s president. The at-times blistering letter to Renaud exposed the continuing ill will on the board on issues related to LU and the OPA’s interactions with it. “I need to note in sending (the letter to LU’s president), you are not speaking for the entire board, but a four-person majority who appointed three of their members to be the sold Board interaction with LU,” Stevens told Renaud. “These self-appointed ‘representatives’ have been overly hostile to LU since they were installed and for some it goes back to the point in time LU was selected to replace Casper. This overt hostility includes the GM.” According to Stevens, Renaud is part of the “self-appointed group (that) has done everything in its power to exclude the remainder of the Board from these discussions and to prevent us from obtaining access to information we require” He said reports sent to the full board by Thompson or members of the golf oversight group “are heavily biased to the point of view of the ‘representatives’ and the GM, with little or no opportunity … to question or hear what the management company’s opnions are. “This e-mail is yet another example of what has been wrong from the beginning,” Stevens wrote, telling Renaud that it “stems from an intentionally warped interpretation of the contract and what it means” as it relates to how LU is supposed to communicate with the OPA.” With respect to Renaud’s acknowledgement of friction between Nissley and the general manager, Stevens feigned incredulity, with a dose of sarcasm. “Really? When was the board notified of this?” he asked Renaud. Stevens then said that the oversight group “apparently made an agreement, without the entire Board’s knowledge or consent, that you in the next paragraph described as a ‘polivy’ that LU violated. Do you not understand that only the entire Board can make a policy?” Stevens scolded. He described himself as “happy” that Renaud “at least found” the material provided by Nissley to be “interesting,’ but he added that Renaud saying “they dealt with administrative matters is simply ludicrous.” According to Stevens, the material included “LU’s report on what they have done and how they intend to proceed” building membership and revenue. “They are critical to future Board decisions. This is information the entire Board is entitled to. There is absolutely no reason we should not see it as soon as To Page 26

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ing,” Thompson replied. Meanwhile, consultants are evaluating the structural conditions of the Country Club structure as a first step in the OPA’s planning process for improvements, renovations or eventual replacement of the building. The Becker Morgan Group is updating an engineering report that the firm completed on the Country Club in 2011 at a cost of approximately $5,000. Thompson said he hopes to have the completed report, which will include an executive summary of the findings encompassed in the document, within 30 days. Director Bill Cordwell asked if the engineering firm will also be evaluating the existing cart barn at the golf course. Initially Thompson said he did not know “for sure” whether the cart barn had been part of the original engineering study that was completed in 2011 and would therefore be reevaluated as part of the work under way by Becker Morgan Group. But he quickly then said that the cart barn had not been included. However, he said since the consultants are on site reviewing the Country Club, they could also look at the cart barn. Cordwell said “absolutely.” He said the OPA is considering potentially merging both the cart barn and the Country Club into a single structure if it is rebuilt in the future. It would be helpful to have a full evaluation of the condition of the cart barn, he said. Thompson said not including the cart barn as part of the updated evaluation was an “oversight on my part.” Director Jack Collins said the board has discussed construction options for a new Country Club and wanted to know if that would be part of the engineering report. Thompson said it is not time yet to consider replacement options for the structure. That will happen in the future and the board will make the deciq

Jacobs grills Thompson over apparent contradictions; By ROTA. L. KNOTT Contributing Writer engineers evaluate condition of Country Club lans for the creation of a patio outside of the Tern Grille at the door seating area for the Tern Grille, moved up to the top of the OPA’s list of Ocean Pines Country Club have make cosmetic changes and buy furni- priorities yet because crews had been been abandoned by the Ocean Pines As- ture, with the goal of generating addi- busy preparing other facilities for the sociation for now but new outdoor fur- tional revenue from food and beverage summer season and making other necessary repairs, such as fixing a leak at niture will still be added in an effort to sales to support the golf club. entice golfers to dine at the restaurant. Thompson said staff has met with the County Club and failing bulkheadOPA General Manager Bob Thomp- representatives from Landscapes Un- ing, Thompson said. “I understand,” Jacobs said, but son, during his monthly report at a July limited, the golf course management 28 meeting, told the Board of Directors firm, to discuss the expansion of the pa- whether anyone else in the room did was that staff is evaluating the options for tio area. Two options were under consid- hard to gauge. She added that Thompnew furniture and associated pillows for eration, one to remove an existing glass son gave a good explanation of the situaoutside the Tern Grille. Last month, he wall of the Tern Grill and another was tion at that time, a month previous. She asked if LU has changed their plans and said no furniture would be ordered until to expand the existing pavered area. after the patio area expansion was conHowever, at their monthly meeting will not be expanding the patio. Thompson said that when staff met structed by Public Works, but that plan with the OPA, LU representatives rehas temporarily postponed. quested proceeding with the purchase with the LU team, they advised that exCheryl Jacobs, chairing the board of the furniture but not constructing the pansion of the patio was not a priority meeting for OPA President Pat Renaud patio expansion at this time, Thompson but that they would like the new furniture. who participated by conference call, said said. “That’s where we are right now,” he she was confused. She said she asked the Jacobs asked for clarification that it general manager during the June board is at LUs request that the furniture has said. Director Dave Stevens asked one meeting why the furniture had not yet not yet been ordered. been ordered. At that time Thompson Thompson said that is incorrect. He more time for clarification that LU told her that the purchase was delayed reiterated that the golf management wants to proceed with buying the furnibecause the best approach to expand- company’s request was not to expand ture but not build the expansion of the ing the patio area was still being deter- the patio area but to proceed with pur- outdoor seating area. “Correct and that’s what we’re domined. Now, a month later, the furniture chasing furniture. has still not been ordered, she said. Jacobs said that was the reason of“That’s correct,” Thompson respond- fered the previous month for why that ed. furniture had not been ordered. Policy memo Funding was included in the OPA’s Thompson again said “No.” Last OP-progressmagicad-0615_Layout 1 6/29/15 4:24 PM Page 1 fiscal year 2016 budget to create an out- month, the project had simply not From Page 26 it is available.” Stevens then criticized Renaud for H O L I D A Y I N N 6 7 T H S T R E E T P R E S E N T S the fact that, “excepting budget discussions, the entire Board has not had a single meeting on LU’s future plans during your tenure (as president). Instead, we we have systematically been denied access to LU and the ability to ask them questions.” Stevens concluded that in his view the golf oversight group “violated the terms of the contract (with LU) and our own bylaws by giving LU direction on behalf of the entire Board” without its “participation or consent.”

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andscapes Unlimited, the Ocean Pines golf course management company, was recently given a 30day deadline to submit a detailed marketing plan including specific proposals to boost Ocean Pines’ sagging golf membership rolls. The company came through in an emailed document to the Board of Directors July 21, which set off several days of dueling emails between OPA President Pat Renaud and Director Dave Stevens on the propriety of LU providing copies to all directors. [See separate article in this edition of the Progress for details.] The document says that the golf club under LU will increase the frequency of events targeting various customer types, including a free open house event that will be designed to “appeal to the vast majority of OPA members.” Free lessons, range balls and food and beverage specials will be included. “Eventually this could be a monthly event on Sunday evenings when the course is typically slow. This event will drive engagement from OPA Residents and incremental F&B sales,” the report suggests. LU proposes to increase the frequency of “social” golf events that focus on the experience more than competition, appealing more to non-core-golfers and casual golfers. “They serve to elevate these customers’ relationship with Ocean Pines,” the report says. Social events include “nine and wine” happy hours, couples events, “big cup” tournaments, scrambles, family golf days or nights, and non-golf events at the Country club, such as movie nights, bocce ball and croquet. The document says that LU will “increase frequency and improve communication of traditional golf events and leagues. These events are designed to increase casual golfer’s engagement with the brand and to drive beginners to play more frequently.” Listed under this category are weekday leagues, couple’s events, competitive tournaments and multi-day tournaments. LU intends to “highlight certain events that are only available to mem-

LU submits report, includes proposals to increase golf membership in Ocean Pines bers in order to add value to memberships and drive sales.” Events under this member’s only category are member-member tournaments, horse races (this one is not explained), inter-club matches, and destination events. The document says the Ocean Pines golf club “will improve its strategy to attract local outings and events. These are great ways to partner with the community, and great ways to offer additional opportunities for customers to play social golf.” In what appears to be the heart of LU’s to rebuild memberships, the company is proposing a number of new golf products “between a single green fee and a membership. This leaves a large hole in the customer journey that must be addressed. Proposed new products include: • An OP Loyalty Card, described as an “entry level” opportunity to engage residents. For a onetime $39 fee, the resident would receive a bag tag, five range tokens, 5 BOGOs in the Tern Grill, a $10 fee for golf after 5 p.m. and more. • An intermediate punch-card membership. According to LU, in the last 12 months, 73.5 percent of Ocean Pines customers have played four rounds or less, with nearly 900 customers playing three or four rounds. “A punch card of 5 or 6 rounds is an ideal way to move these customers to play more golf and drive more revenue. The pass should be offered at an attractive rate with certain black-out days/times to protect daily-fee revenue,” the document says. • A range/practice membership, “where members pay a low monthly fee of around $30 per month to get unlimited access to the range and deep discounts on twilight tee times. “This type of membership is a great way to get a customer using the facility regularly

and eventually move them into a full membership,” LU says. • Bounce-back incentives. According to LU, “just over 40 percent of Ocean Pines’ customers played two rounds or less in the last 12 months. Many of these are golf vacationers and were limited to

Golf membership From Page 26 sion as to how to proceed, with building repairs or replacement. Right now, the OPA is only asking for an evaluation of the current condition of the County Club and an estimation of its useful life. “We’re just not quite at that step yet,” Thompson said. Several repairs have also been made to the Country Club recently, according to Thompson. He said Public Works fixed a leak in the irrigation system in front of the building where water was “bubbling up,” repaired an area of bulkhead that

playing during their trip, but more than 600 of these customers were Maryland and Delaware Residents. These customers will be incentivized to return to Ocean Pines via a bounce-back for a stay and play package or infinity golf (all you can play in 1 day). • A new 20-round pass to replace the existing 30-round pass. According to LU, “the 30 play pass is in direct conflict with annual memberships at very similar price-points. Ocean Pines should reduce the price and convert to a 20-round package to incentivize full memberships and create another “step” in the customer journey. covered over air ducts and did some painting. The OPA has also had repairs made to address water intrusion that had occurred at the Country Club in recent months. The side of the building where the golf carts are parked suffered significant water damage as a result of missing and improperly installed flashing under the siding. Repeated repaving around the Country Club raised the level of the asphalt adjacent to the building above the level of the siding. That also allowed stormwater to run off the pavement, under the siding and into the building, Thompson said.

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August 2016

Comprehensive Plan Committee closing in on 40-question survey Questionnaire to probe property owners on future capital projects, expectations for current amenities By TOM STAUSS Publisher s part of its continuing efforts to develop a new comprehensive plan for Ocean Pines, the Comprehensive Plan Advisory Committee is closing in on a 40-question survey of property owners and residents that could be ready for presentation to the Board of Directors for review and revision soon after a new board is organized in September. At the board’s July 28 monthly meeting, committee chair Frank Daly told the directors that 25 questions had already been agreed upon by the committee, with another ten or 15 to be reviewed and possibly adopted by the committee at a meeting scheduled later that day. As it turned out, the meeting didn’t move the process along, as a quorum of members didn’t show up to consider the remaining potential questions. Daly, a candidate for the board in this summer’s election, said e-mail communication among committee members or a special meeting of the committee could be held to consider the remaining questions. He acknowledged that not much would be accomplished by the committee before a new board takes over in August. If Daly is elected to the board, the pro-

cess of developing a survey could either be delayed further as the committee is reorganized without Daly as chairman or might be expedited if he is named the committee’s board liaison. During the July 28 board meeting, Daly told the directors that the committee soon would be forwarding to the board a recommendation on how to proceed with the survey, specifically whether it would be conducted in-house or by an outside firm. A related issue is whether the survey will be mailed to property owners or conducted on-line, or some combination of both; another issue is whether renters will be included. After Director Bill Cordwell questioned Daly on what kind of response percentage from property owners is needed for a valid survey, Daly said that a 15 to 20 percent response would be “expected.” In response to a question from Director Dave Stevens, Daly said he didn’t have a good handle on the percentage of Ocean Pines property owners who aren’t full-time residents, but he acknowledged the conventional wisdom is that roughly half of the Ocean Pines 8400-plus lots are owned by property owners who don’t live year-round in Ocean Pines. OPA president Pat Renaud, the

board’s liaison to the committee, introduced Daly as someone who, in his short time as chair after his predecessor was asked to resign, was working hard to make sure the survey was forward-looking. An earlier iteration of the survey developed by a research arm of Salisbury State University was not well received by the board, which came close to abolishing the committee because of its sluggish pace at developing a survey. Renaud and OPA Vice-president Cheryl Jacobs argued strenuously for retaining the committee under new leadership but without the assistance of the Salisbury State research arm headed up Memo Dericker. A copy of questions approved by the committee so far seems to back up Renaud’s contention that questions are forward-looking. As one example, draft survey question 16 asks about priorities for capital improvements and whether those improvements should be renovation or replacements. That question is at the heart of an ideological division on the current board of directors, with one faction generally preferring renovation to new replacement buildings. OPA General Manager Bob Thompson is for the most part in the replacement camp, as

is a current board majority. With a new board about to begin a term in office, it’s unknown how board factions will take shape with respect to the renovation-replacement divide. Draft question 16 lists ten proposed capital projects that it would like survey-takers to rank in order of priority, but lacks information on what each encompasses, which, without further explanation, could make it challenging for property owners not well versed in details. The projects include the Ocean Pines Golf Course complex (not specifically the Country Club, which has been the focus of much recent board discussion), the Beach Club complex, the Yacht Club complex, the Mumford’s Landing complex, the indoor aquatics complex (Sports Core), Swim and Racquet Club complex, the Manklin Meadows/Racquet Sports complex, the Administration and Police headquarters complex, the Community Center complex, and White Horse Park complex. Some of these amenities have already received a lot of OPA investment, such as the Community Center and the Yacht Club, both new within the past five years. New bathrooms for White To Page 31

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July 2016

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August 2016 Ocean Pines PROGRESS

Prominent local Realtor, one of the earliest Ocean Pines full-time residents, passes on

erome P. “Jerry” Richards, a prominent local Realtor and one of the earliest full-time residents of Ocean Pines, passed on July 12 from an injury sustained in a Jerry Richards fall. He is survived by Gloria, his wife of 52 years. Together, they were the last of the earliest Ocean Pines pioneers, moving to Ocean Pines in 1969, where their first residence was a camper in White Horse Park. Jerry Richards began as a weekend real estate salesman for Boise Cascade, commuting from Baltimore where he worked during the week, eventually becoming a full-time agent. The Richards were among the first eight families that moved into single-family homes in Ocean Pines. All have long since passed on. Gloria continues to live in Ocean Pines in the Parke section, where she stays busy with various charitable activities. A practicing Catholic and an active member in his church, he served the congregation during services as a lector. He was also a member and participant in the Knights of Columbus. While in college he had aspirations to be a naval officer until, while on his first cruise, illness forced him to withdraw. On many national holidays, like Memorial Day, he would distribute miniature American lawn flags throughout his neighborhood. In his community he was one of the founding members of the Ocean Pines fire department and was a life-long member. He helped persuade Boise Cascade executives to donate money for the purchase of the first fire engine used by

Comprehensive plan From Page 28 Horse Park are awaiting county permit approval before construction can begin. The board shortly will be considering proposals for renovation or replacement of the Beach Club bathrooms, with the survey unlikely to be completed before the board decides which option to choose. The board and Thompson also have been wrangling over the scope of racquet sport improvements at the Manklin Meadows complex. The survey, if completed by the end of the year, could give the board some guidance on several capital projects proposed by Thompson but not yet acted upon by the directors. One such project

the department during its founding. He later came up with the idea for Condo Lotto, one of the department’s primary fund-raisers that survives today as an annual lottery for a home in Ocean Pines. He started the Cub Scout pack in Ocean Pines and later strongly supported Boy Scouting with logistical support. For 12 years he was one of the directors for Habitat for Humanity in Worcester County. He quietly and generously supported many charities. For 46 years he was a licensed Realtor and a broker, founding one of the earliest real estate companies in Ocean Pines that he later sold. He remained an active Realtor at an age when others would have retired. He was licensed as an agent with Shamrock Realty on Route 589 at the time of his passing. In the last 45 years of his career, he was always a million dollar producer. In 1976 he was Realtor of the year and in 1998 the Distinguished Sales associate of the year and a past president of the Greater Ocean City Multiple Listing Service. Having received awards and recognition from every company he was ever associated with, he still continued with advanced education earning GRI, CRS and RRES industry certifications. With a degree from Marquette University in political science, he stayed current in political affairs and world happenings. He was intellectually curious, loved learning and languages and had a solid command of world geography. His exploits on the accordion during parties and holidays, in “The Key of C”, were well known among family and friends. He loved playing music and cherished playing in his senior community’s “all-star band.” In addition to his wife Gloria, he is survived by his children, Mark, Paul and Elizabeth, and two grandchildren. is Thompson’s proposed Public Safety building on OPA property west of the post office and library on Route 589. He has suggested that the new building include space for a new Ocean Pines police department, a new Southside firehouse, and offices for OPA administration departments (GM, controller, membership and public relations). Another Thompson proposal is for a new indoor pool complex to replace the existing Sports Core pool. The survey questions approved so far by the committee also includes one that attempts to gauge acceptable financial performance for each of the amenities in Ocean Pines, whether they must be profitable or break-even to continue, subsidized by assessments, or offered “free” as part of the annual assessment.

Fishing contest winners

Last month, 88 youth participated in the 20th Annual Art Hansen Memorial Youth Fishing Contest at the South Gate Pond in Ocean Pines hosted by the Ocean Pines Anglers Club. A record 237 fish were caught, measured and released. Trophies were awarded for biggest fish and most fish in three age categories. Winners were, left to right, biggest fish, age 12-16, Dyllan Arnold, 9 ½-inch bass, age 8-11, Noah Toadvine, 15 7/8-inch bass, age 4-7, Savannah Ohrel, 8-inch bluegill. Most fish: age 12-16, Emily Stitely, 13 fish, age 8-11, Hunter Schultz, 20 fish, and age 4-7, Ruby Manos, 24 fish.

Bridge repairs begin but questions linger about replacement More serious problems may be found on undersides By ROTA L. KNOTT Contributing Writer ontracts have been awarded and work is about to begin on two Ocean Pines Association-owned bridges but still some people are questioning the plan to repair the structures instead of replacing them. General Manager Bob Thompson reviewed the status of numerous projects, including repairs to the Ocean Parkway and Clubhouse Drive bridges, during his July 28 general manager’s report to the Board of Directors. He said contractors will begin working on the underside of the bridges later in August and will go topside in September. Director Dave Stevens wanted to know exactly what the status is of the bridges and what will be done to them. “While we’re fixing the top part of the bridge the understructure may have some serious problems,” he said. He suggested the contractor take the time to evaluate “what has to be done or could be done underneath.” Thompson reiterated that the contractor will begin the project in August with the work on the underside of the bridge. He said the OPA retained a third-party engineer to evaluate the condition of the bridges and develop a scope of work for their repair. Based on the engineer’s work the OPA solicited a Request for Proposals and awarded a contract. The contractor is now set to begin work. During the public comments segment of the meeting, Slobodan Trendic, a candidate in this summer’s board election, lobbied for replacing the bridges instead of making repairs. Trendic repeated comments that he first made to the board months ago, saying that he is concerned that the OPA is launching

repairs to the bridges without considering their substructure. He said the condition of the substructure is “still an unknown.” Director Jack Collins asked about the State of Maryland’s participation in paying for repairs to the bridges. “That’s for bridge replacement. Maintenance and repair is on us,” Thompson said. Collins wanted clarification that the maintenance and repair work set to begin in August is required for safety reasons. Thompson said the state inspects the bridges and sets their rating based on the condition. Both bridges have fallen below the minimum level of 50 on the state’s bridge safety rating system, allowing for their replacement if the OPA and county can find a way to cover the cost. Currently the bridges have BSRs of 41.3 and 47.2 respectively. Thompson said there are two primary funding mechanisms for bridge replacement – state grants and federal grants. The plans for repairs have been based on that state inspection. Thompson said the engineer retained by the OPA used the state inspection as the basis for its recommended improvements. Collins asked if the repairs will extend the life of the bridges. Thompson said when the state evaluates the condition of the bridges during its next inspection cycle the rating will change. He said the repair work done will start a new life cycle for the bridges based on the upgrades. Eventually both bridges, which are part of the Worcester County roads inventory, need to be completely replaced. While the OPA is planning for their replacement, it will be the county that decides when that work will be done and how to pay for it. During the bridge repairs boat traffic will still be passable but will be limited to one boat at a time.

32 Ocean Pines PROGRESS

OPA FINANCES

August 2016

OPA in the red after two months of new fiscal year Aquatics off to solid start, not so much for Yacht Club and golf By TOM STAUSS Publisher he Ocean Pines Association recorded its second consecutive negative month in the new fiscal year in June, missing its departmental budget target by $33,157. Year-to-date through June 30, the OPA has a negative operating variance to budget of $94,651. The actual operating loss in June was $277,639, compared to the budgeted loss of $244,482. The operating fund balance actually was actually less than $33,157 because the OPA did not spend all of what had been budgeted in new capital expenditures. With new capital expenditures under budget by $14,000, the OPA registered a negative $19,157 variance to budget for the month, with revenues under budget by $73,838 and expenses under budget by $40,681. For the year through June, the OPA has a negative variance to budget of $74,775, but that rises to a $94,651 negative variance without new capital expenditures, which can be delayed or adjusted as a way of attenuating losses. All amenities with the exception of tennis and platform tennis recorded operating surpluses for June, led by

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month and tennis lost $1,498. Compared to budget, golf was the best performer in June, with a $10,656 positive variance. The Yacht Club was the worst performer of the major amenities compared to budget, with a $48,895 negative variance, driven primarily by revenues that fell significantly short of forecasts. Amenities that exceeded budget for the month included Beach Club parking ($5,894), marinas $3,818) and tennis ($110). Amenties that missed their budget targets for the month included aquatics (-$8,874), Beach Club (-$5,157), platform tennis (-$647) and pickleball (-$304). For the first two months of the fiscal year, aquatics is the best performer relative to budget. With net operations at $140,843 against the budgeted $128,734, aquatics has a $12,109 posi-

tive variance for the year through June. Member dues were off by $9,300 relative to budget in June, but that was more than offset by May’s performance. For the year so far, aquatics is roughly $1,800 better than budget in the member dues category. Year-over-year, aquatics is roughly $6,000 behind where it was through June of last year ($146,808 compared to $140,843 this year). In the fiscal year that ended April 30, aquatics came close to breaking even, the best year ever since the Sports Core pool was enclosed to create a year-round pool for Ocean Pines. In contrast, the Yacht Club has stumbled out of the gate thus far this fiscal year. The Yacht Club has lost $5,010 through June and is behind budget by $113,874. The amenity is also faring q

Beach Club parking ($96,447), Aquatics ($14,347), Yacht Club ($12,867) and golf ($8,177). Marina operations were in the black by $7,880 and pickleball made $309. Platform tennis lost $1,088 for the

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OPA FINANCES

August 2016 Ocean Pines PROGRESS

B&F committee member frets over decrease in Yacht Club food revenue Thompson says expanded menu, half-price lunch specials should boost business, and less negativity would help, too By TOM STAUSS Publisher cean Pines Association General Manager Bob Thompson isn’t known for highlighting worrisome trends in Ocean Pines amenities – except perhaps for golf – but he was put on the defensive during a July 29 meeting of the Budget and Finance Advisory Committee when one member expressed concern about declining revenue at the Ocean Pines Yacht Club. Committee member Jim Beisler cited April and May numbers that showed food and beverage numbers substantially off from a year ago. He said he was less concerned about June because it’s early in the prime summer season, when non-resident owners descend on Ocean Pines and are willing to spend money at Ocean Pines’ major restaurant amenity. But in fact June numbers continued the trend, and perhaps even accelerated the negative year-over-year com-

Financial summary From Page 32 poorly compared to a year ago. For the first two months of the 2015-16 fiscal year, the Yacht Club was in the black by $83,239. The primary reason for the Yacht Club’s relatively poor performance so far this fiscal year is a precipitous drop in revenue year-over-year. Through June of last year, gross revenues were $509,232. This year, that number is only $397,401, a negative swing of $111,831. For the year through June, Yacht Club gross revenues are $219,699 under budget. Net revenues after costs show a similar pattern, but not as dramatic, as management trimmed costs relative to budget in most of the line items. Year-to-date through June, golf is in the black by $28,601, compared to the budgeted $45,279, for a negative variance of $16,678. Golf net operations are also off year-over-year. Through June of last year, golf was up for the year by $106,809, compared to this year’s cumulative surplus of $28,601, representing a $78,208 negative swing. Racquet sports are performing close to budget, modestly falling short of goals. Tennis is $3,867 behind the budget for year, platform tennis is $1,690 under budget, and pickleball has missed its budget target by only $358 through June 30. Reserve Summary – The OPA through June 30 had $8,969,638 in reserves, comprised of $6.15 million in major maintenance and replacement reserves, $1.86 in bulkheads and waterways, $549,132 in roads, and $408,189 in operating recovery reserves.

parison. Through June of last year, the Yacht Club had generated $509,232 in revenue for the 2015-16 fiscal year. This year’s cumulative revenue number is $397,401, an $111,831 swing to the negative. Beisler’s interpretation of the decrease in revenues is that year-round residents in Ocean Pines “aren’t supporting” the Yacht Club to the extent they had previously “and I wonder why.” He said it was “troubling” to him that one of Ocean Pines’ major amenities does not have the loyalty of the community’s year-round population base. That relative lack of interest in the Yacht Club as a restaurant destination of choice also showed up in the substantial losses racked up by the amenities in the closing months of the 2015-16 fiscal year that ended April 30, more than wiping out substantial surpluses generated by the amenity last summer. Committee chair Pat Supik acknowledged that the “top line” revenue number isn’t increasing and that asking why is a “legitimate question” even though the Yacht Club’s “bottom line was better.” Indeed it was for the 2015-16 fiscal year over the previous year, but the start to the 2016-17 fiscal year points to a worrisome trend for the bottom line as well. Through June 30 of last year the Yacht Club’s bottom line was $83,239 positive, but this year’s June 30 bottom line is a negative $5,010. That’s a $88,249 yearover-year negative swing, covering the first two months of the fiscal year Beisler noted that Yacht Club management has done a good job of reducing labor costs relative to revenue, but that still doesn’t answer the question about declining revenue numbers. “We ask questions but nobody is answering,” he said. That prompted Supik to suggest that General Manager Bob Thompson could be brought in to offer his take on declining revenue numbers. Assistant OPA

treasurer Pete Gomsak, attending the meeting as a spectator, left the meeting to see if he could find Thompson. He returned to the meeting shortly after with Thompson in tow. Committee member John O’Connor said the answer to Beisler’s question might be found by “looking at the pricing offered by the competition,” later adding that in his “experience at the Yacht Club is below average” in the areas of quality and service. Thompson then joined the discussion after Beisler repeated his assertion that “year-rounders aren’t going to the Yacht Club.” The general manager said he had discussed declining revenues with Yacht Club Food and Beverage Manager Jerry Lewis. Thompson said one reason for declining revenues is weather-related, citing the large number of rainy days in May and June which affected business on the outside deck. He said that Memorial Day weekend last year was a week earlier, which means one less week of post-Memorial Day business this year. He also said he had checked with the Ocean City Chamber of Commerce and was told that resort restaurants generally have gotten off to a slower start this year than prior years. Later in the meeting he blamed media negativity for the downtown, specifically reporting in the Progress. He said the Yacht Club probably was affected by the opening of the South Gate Grill, a new restaurant with waiting lines at times, aggressive pricing and well-trained wait staff. “Anything new, people will tend to gravitate toward it,” he added. Thompson said one of the ways the Yacht Club is combatting the declining revenues is “looking at expanding the (dinner) menu,” which he said could be too limited. He also mentioned half-off lunch specials were recently added as a way to attract business. Gomsak echoed Supik’s earlier com-

ments about the bottom line improvement in performance of the Yacht Club in the fiscal year that just ended compared to the year prior. According to the unaudited financial summary for April of this year, the Yacht Club lost $76,219 in 2015-16, compared to the $181,875 loss for the year prior. That’s a $105,656 positive swing. But Beisler didn’t seem persuaded. He said May year-over-year revenues showed a $102,000 decrease, which he again asserted is proof that “locals aren’t coming to the Yacht Club.” Thompson offered no explanation for why locals in particular might be turned off to the Yacht Club, or even whether he agreed with Beisler’s conclusion. Thompson said the Yacht Club is being promoted in e-mail blasts and Web site advertising. O’Connor suggested more advertising in the local papers might help. The Progress, distributed monthly to homes in Ocean Pines, has not had an advertisement promoting the Yacht Club for several years. With coverage not always to the liking of Thompson, that probably won’t be changing anytime soon. O’Connor commended Lewis for doing a “good job” in “managing what he has, but revenues are down” and he seemed to suggest that nothing that has been tried to date was likely to change that fact. Gomsak defended Thompson, suggesting that the general manager had “answered the question” about reasons for declining revenue and adding that “there are things being done” to attract more revenue. The Clubs Advisory Committee also is offering suggestions on how to boost revenue, Gomsak said. Thompson then offered another explanation for declining revenue. “There’s a lot of media negativity out there, turning people against” the Yacht Club, he said. “If one thing is negative, and the negativity continues, then everything becomes negative,” he said. “We need to focus on the positive.” Beisler said he agreed with that. Thompson singled out the Progress as a source of the negativity. The Progress routinely reports on financial results of the OPA, and in its July edition reported on odor issues at the Yacht Club. Thompson didn’t cite specific examples of negativity in the Progress.

Budget and Finance Advisory Committee leaking members

nyone with a financial background in their previous or current lives needing a volunteer outlet or an excuse to get out of the house may find existing or pending vacancies on the Budget and Finance Advisory Committee to be of interest. At the July 29 meeting of the committee, which meets on the fourth Thursday of every month, it was disclosed that the committee is in dire need of fresh faces. Committee chair Pat Supik successfully ran for the OPA Board of Directors., which means she will be resigning from the committee. Her seat on the

committee and the chairmanship will need to be filled. Definitely leaving the committee because of term limits is Dale Buley, and John Trumpower has informed Supik that because of his job, he can’t attend committee meetings from May to October. Supik said she was inclined to keep Trumpower on the committee “for now” pending other candidates stepping forward to replace him. “We don’t want to add people for the sake of adding people,” Supik told the committee during discussion. But she

encouraged those with financial backgrounds to apply for a position. Her election to the OPA board makes that even more urgent. The committee also is losing its board liaison, OPA director and treasurer Tom Terry, who is retiring from the board after six years of service this month. The OPA treasurer traditionally has served as the board’s liaison to the budget and finance committee. Whoever is elected treasurer in the new board’s organizational meeting later in August will mostly likely be appointed liaison to the committee.

34 Ocean Pines PROGRESS

OPA FINANCES

August 2016

Directors spar over reserve fund levels, not close to agreement

Board takes no action on recommendation by general manager to establish “percentage” policy, leaving contentious issue for next board to resolve decision, but the directors have been in no hurry to do so, to Thompson’s apparent frustration. If the current percentage of about 20 percent is maintained, with or without a formal policy establishing a percentage target, then the current assessments rates would not have to be adjusted higher. “The assessments may not have to go up at all,” retiring Director and OPA treasurer Tom Terry said at one point, but it’s clear that if Thompson is able to secure a board majority that agrees with his recommended 50 percent target for most assets, assessments would need to be gradually increased to meet it over the number of years the board might decide is acceptable. If, on the other hand, the directors decide the target should be reached in a single year – Thompson is not recommending that – then the impact on assessments could be dramatic. Among the directors who sat at the table at the July 20 meeting it seemed evident they were not ready to set any particular percentage, or even continue the 21 percent level of funding in place at the end of the 2015-16 fiscal year this past April 30. Previously, some directors have said they favor eliminating the legacy funding stream in next year’s budget, which could have the effect of reducing the funding level below 21 percent. Director Jack Collins suggested that before the board considers Thompson’s recommendation, the board should first finalize a capital improvement plan, a draft of which Thompson presented to the board this past November, with no action or even consideration of it by the board since then. Thompson had former director and current assistant treasurer and former OPA director Pete Gomsak on hand to bolster his arguments for a board decision with technical details, but Gomsak didn’t seem any more able to nudge the board forward than Thompson had been. In initial remarks, Gomsak said the current 20 percent level of funding is too low while 100 percent is not needed. As he has maintained consistently over the years, Gomsak said reserve funding needs to take into account the impact of inflation on the OPA asset base and that Ocean Pines’ method of collecting money for reserves over many decades through funding depreciation (the Historic Reserve) is raising funds at a rate insufficient to pay for major replacement projects. While agreeing that 100 percent funding is not needed, Stevens was not ready to concede that the OPA even needs to set a percentage of annual component costs as a matter of policy, despite Thompson and Gomsak’s clear preference for one. “Over five years or so we’ve spent significantly less than what we collected” from funded depreciation (and sup-

plemental funding once known as the five-year-plan and currently labeled the Heritage reserve),” Stevens said. Moreover, he said that funds raised through funded depreciation or supplemental Heritage reserve resources have been used “for things other than depreciated items,” citing new golf greens as an example. Stevens said the board needs to “figure out” a capital improvement plan before deciding the level of needed reserves. He also said the OPA needs to adjust the list of depreciated or depreciating assets in the reserve study to eliminate items, such as the Country Club kitchen, that don’t need replacing. “If you don’t have to buy new kitchen equipment, then you don’t care if you have 20 percent (of the annual component cost) in reserve,” Stevens said. He called the $14.4 million number inaccurate because it hasn’t been updated since it was first unveiled this past winter and “it hasn’t been looked at” with respect to the “reasonableness” of the assets included in it. “DMA suggested we create teams to update” the components in the asset list “three months ago. It’s not been done,” he said, and yet the board is being told “that percentage decisions need to be made.” Terry agreed that the asset list needs to be culled of items that don’t need replacement, but he argued that it could be done at the same time that a capital improvement plan is completed. Terry said that “you have to do both” simultaneously. Terry acknowledged that the cash flow methodology of funding reserves is sometimes seen as an alternative to the “percentage construct,” but he made it clear that he’s in the Thompson and Gomsak camp calling for reserve funding tied to a percentage of the annual component cost. “You don’t need 100 percent but 20 percent is too low,” Terry said, without specifying what percentage he favored. He said the board needed to make a decision on the percentage soon and “that it needs to be in place before next year’s assessment is set.” Terry is retiring after six years on the board and will be in no position to advocate for a policy setting a percentage goal. Director Tom Herrick in effect said that Terry is recommending a course of action without the board having all the information it needs to make an informed decision. He said the board needs to figure out “what we need and don’t need” with respect to future capital projects and that “we can’t take as gospel” the $14.4 million estimate for components costs associated with assets other than those that are golf-related. According to Thompson, another $3 million in golf course assets brings the total annual component cost to $17.4 million.

“It’s too fluid,” Herrick said. As an example of additional information that the board needs for an informed decision, he cited a survey of property owners that the Comprehensive Plan Advisory Committee is working on to help determine what new or renovated assets are favored by property owners. Stevens agreed that much more work is needed to determine the accuracy of the “$14 million or $17 million number” and that trying to set a percentage of that as a goal is premature and may even be unnecessary. “50 percent of an invalid amount is still an invalid amount,” he said, again arguing that reserve funding should be based on needs identified in a capital improvement plan rather than some arbitrary percentage of a number that may be invalid or not particularly useful. Since Thompson unveiled his draft capital improvement plan last November, Stevens said “this board hasn’t done anything on it since January,” adding, “I don’t recall being asked to provide feedback” on what Thompson proposed in his draft CIP. Director Cheryl Jacobs, who was presiding over the meeting, asked what the next steps should be to move the process forward. Collins suggested that there may be more agreement on next steps than seemed apparent during the meeting. “The CIP and the reserve study (updating) should be done on dual tracks,” he said, adding, “but the CIP drives the reserve study.” That comment suggested that Collins, too, regards the CIP as the more important driver in determining the proper level of reserves. Gomsak made one last try to persuade the directors to adopt a percentage of the annual component cost, with no apparent success. “It’s not as complicated as it sounds around this table,” he said. “The reserve study is just a snapshot. If 20 percent (the level as of April 30) is acceptable, then OK. If you want to go higher as DMA recommends, do that.” He said he wouldn’t send out teams to validate the reserve study but rather suggested the board “just accept it” as it is and “focus on cash flow” and deciding on a capital improvement plan and “deciding how we’re going to finance it” and “what kind of assessment and percentage (of the annual component cost )” is needed. “You could spend three years doing this,” he said. Jacobs and Herrick sparred over the comprehensive plan committee’s pending community survey, with Herrick calling it a crucial component in helping the board arrive at an acceptable CIP. Jacobs asked Herrick whether he wanted to wait for its results before moving on Thompson’s percentage recommenq

By TOM STAUSS Publisher he Board of Directors debated at length but in the end came no closer to acting on the general manager’s recommendations for funding Ocean Pines Association reserves during a special meeting July 20. Much of the meeting was taken up with a presentation by General Manager Bob Thompson on his proposals for reserve funding. The presentation confirmed details first published in the Progress’ July 2016 edition about a “secret” Thompson memo distributed to directors in June but not released to property owners and the media, on the grounds that it was a “working document.” Early in his presentation Thompson confirmed that, excluding golf, the annual component cost of OPA assets as of April 30 of this year was $14,408,712, and that reserve funding for these assets was $3,043,000, a difference of $11 million. Current reserves cover about 21 percent of the annual component cost of these non-golf assets, Thompson said, lower than the 30 to 70 percent purportedly recommended by the accounting profession. That revelation was met by a skeptical observation by Director Dave Stevens, which more or less set the tone for the rest of the meeting. Stevens in effect called the $14.4 million a misleading or irrelevant number because it includes assets, such as Country Club kitchen equipment, that probably will never need to be replaced. He also said the $14.4 million number will need to be updated by the consultants conducting the ongoing OPA reserve study, DMA Associates, with new assets, such as Beach Club bathrooms that will be added to the asset base very soon. Thompson, who is recommending funding the annual component cost at 50 percent for most assets, including those related to golf, said the percentage could be much lower for roads and bulkheads because both have dedicated funding sources that have been adequate over the years to pay for annual maintenance or replacement costs. He is recommending 10 percent funding for roads and bulkheads, 50 percent for everything else. It is generally assumed that raising the annual component cost percentage of 30 to 70 percent for assets other than roads and bulkheads will involve unpopular assessment increases, and Thompson’s presentation did not nothing to dispel that assumption. But how quickly and at what rate assessments would have to be increased to reach the desired percentage is flexible, Thompson said, one of the decisions that he hopes the board will make very soon. The other one is the actual percentage target, 30 to 70 as is recommended by the accounting profession, or even the current 20 percent. He’s been encouraging the board for some time to make that

OPA FINANCES

August 2016 Ocean Pines PROGRESS

Terry investment initiative runs into board resistance

By TOM STAUSS Publisher n perhaps his last major initiative as an Ocean Pines Association director, Tom Terry at the July 28 Board of Directors meeting presented a revision in OPA investment policy designed to increase the rate of return on reserve funds. Terry, the retiring treasurer of the OPA, faced resistance to his idea for increasing returns on roughly $3 million in longer-term invested capital from less than 1 percent now to 1.5 percent, without adding significantly to risk. Terry’s proposal involved dividing the $3 million in reserve funds – an amount not deemed likely to be needed in the short-term for major maintenance or replacement – into three $1 million segments, one invested in three-year CDARS (certificates of Deposit Account Registry Service), another in two-year CDARS, and the last $1 million segment in a one-year CDAR. “It’s about half of what he have had in the historic (funded depreciation portion) of the reserves,” Terry said of the $3 million that would be invested in CDARs, a continuation of current practice. The primary change would be investments in three-year CDARs with higher yields, Terry said. OPA Director Jack Collins, a retired banker who was running for reelection to the board this summer, told Terry that his proposal locking in a three-year CDAR interest rate was not something he could support. He said instead that a one- or two-year would be more accept-

able, because the OPA could benefit from any spikes in shorter term rates that might occur in the future. Terry responded that Collins’ approach would differ very little from current practice. After the meeting, Terry told the Progress that he would not be pursuing the more ambitious investment policy because of Collins’ comments, but that’s not necessarily conclusive. Director Dave Stevens, who had urged Terry and General Manager Bob Thompson to more aggressively seek out higher-yielding CDARs back in March, noted that Terry’s proposal was not made in the form of a motion. “There is no question on the table,” he said, “This is information for the board,” which he implied could be taken up by the new board once it is reconstituted after the summer election. Stevens, who remains a member of the board, entering the third year of a three-year term, called for a more aggressive investment policy in the context of board resolution F-01, revised in a board vote (on second reading) at the board’s March 25 monthly meeting. The policy retains preservation of capital as the OPA’s primary investment goal. It lists four investment categories that are acceptable instruments, including bank or financial institution deposits that are FDIC insured, deposits that exceed FDIC insurance limits but that are collateralized by the bank’s U.S. government or agency portfolio, CDARs, and intermediate term U.S. government bonds and related instruments defined as investment grade by Moody’s or Standard and Poors. The approved policy says that all securities must be held with the intent to hold to maturity, maturities should not

exceed five years, and at no time will derivatives of complex securities be purchased, even those derived from securities issued by government agencies. The new F-1 resolution also says that before making investments in U.S. agency securities, those conducting investment transactions for the OPA must identify and consider the duration period of the security and the reinvestment strategy for prepaid principal. The new F-1 assigns the task of making investment decisions to the OPA treasurer and general manager. That would be OPA Director Tom Terry and General Manager Bob Thompson. Currently management of the OPA’s investment portfolio has been delegated to the Bank of Ocean City. The new F-1 policy specifies that maturities must be structured to ensure liquidity for anticipated needs and that a “laddering strategy” should be employed. It’s the “laddering strategy” that Stevens said is not being deployed properly by the OPA. The revised F-1 sets out three “guiding principles” for investment performance. One is that the investment performance should be “appropriate for the asset class selected.” Another is that assets should be invested in an “appropriate manner for yield” while taking into account “credit and interest rate risks.” The third principle is that interest earned from any investment should be earmarked into the same or “similar” reserve category from which it was allocated “to help ensure the growth and sustainability of replacement reserves.” Stevens first offered his critique of the OPA’s investment practices in a meeting of the Budget and Finance Committee the day before the board’s March 25 meeting, which Stevens didn’t

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attend because of a funeral. He said the committee’s response to his critique was dead silence. Stevens said that the OPA’s actual return on CDs and CDARs that comprise the bulk of the OPA’s investment is a miniscule fraction under 1 percent. Stevens told the Progress that if the OPA treasurer and general manager actually worked at the laddering strategy specified in the new F-1, the OPA would be able to garner another $40,000 or $50,000 per year in interest income. He said that if neither Terry nor Thompson wanted to spend the time necessary to research competing financial institutions for better returns on CDs and CDARS, they could delegate that task to OPA Controller Art Carmine. Carmine could dedicate a day to it, Stevens said. Why hasn’t laddering been employed to date? “They won’t do it unless they’re forced to,” Stevens said. “They won’t because

Proposal for modest increase in returns challenged by Collins

Reserve fund From Page 34 dations. Herrick responded that he did. “I would wait until I have the information,” he said. “Let’s marry the CIP with an (updated) reserve study.” Jacobs indicated that she wasn’t comfortable with waiting, but Herrick said Jacobs was preparing “to do a CIP without input.” Jacobs said that she favored proceeding with action on a CIP, but “without finalizing” it until the results of a community survey are in. Stevens objected to Jacobs’ suggestion that work begin on a CIP starting with Thompson’s November draft. He said he asked numerous questions about it with no answers forthcoming from management. He then recalled that he “had been put in charge” of the CIP process by a previous board, only to have the role taken from him by Pat Renaud, the OPA president, and “given to Thompson” without a board vote last fall. Jacobs testily responded that her colleagues have an obligation as board members to move ahead on the issue, but Herrick didn’t agree, at least as of that particular meeting. “You have two or three new board members” coming on the board in August, he said, “and they will have a big part” in deciding the scope of a capital improvement plan for Ocean Pines. After additional discussion, when it became obvious that no consensus on next steps could be had, Jacobs abruptly called for a vote on a motion to adjourn. It passed, with Herrick, Stevens, Collins and OPA President Pat Renaud, listening in on the meeting via telephone, voting for it. It was not clear whether Jacobs, who asked rhetorically if the meeting had been a waste of time, voted for her own motion to adjourn.

36 Ocean Pines PROGRESS

OCEAN PINES BRIEFS From Page 4 and is available in the administration building lobby.

Board makes three panel appointments

The Board of Directors unanimously appointed three members to Ocean Pines Association advisory committees during a July 28 meeting. Audrey Wahl was appointed to a third term on the Clubs Advisory Committee. For the Racquet Sports Advisory Committee Susan Morris was appointed for a first term and June Freeman was appointed chairman.

Police respond to barricade Incident

OPA FINANCES

August 2016

Ocean Pines Police in July received information that a 21-year-old Ocean

Pines resident was making threats against himself and anyone coming in contact with him, at his residence, located at Point Lookout Road. Police received information that the suspect had weapons at the residence and had previous mental health issues. Ocean Pines Police cordoned off the area, and requested assistance from the Ocean City Police Quick Response Team (SWAT) and their Hostage Negotiation Unit. Ocean City units responded to the area of Point Lookout and in coordination with Ocean Pines Police, Ocean City Police Hostage Negotiators began negotiating with the suspect. After a period of negotiation, the suspect agreed to give himself safely up to police tactical members. There were no injuries, and the entire incident lasted for 6 hours, before the incident was successfully resolved. Assisting with the incident were units from the Ocean Pines Volunteer

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Fire Department and the Ocean City Fire Department. The suspect was taken into custody and transported to Peninsula Regional Medical Center in Salisbury for psychiatric evaluation. Weapons were located inside the residence. Chief David Massey of the Ocean Pines Police Department said, “The cooperation among all police and fire units on the scene of this mental health incident ensured that everyone went home safely.”

Adult softball league schedule announced

The Ocean Pines Recreation and Parks Department’s coed slow-pitch softball league will play games Wednesday evenings from Sept. 14 to Oct. 26 at the ball fields at Manklin Meadows Park, 11443 Manklin Creek Road. A league meeting will be held on Wednesday, Sept. 7, at 6:30 p.m. at the Ocean Pines Community Center, located at 235 Ocean Parkway in Ocean Pines. Team representatives are required to attend. Team rosters are limited to 20 players and must include at least two females, who are required to be on the field at all times. The cost to participate in the league, which is open to Ocean Pines residents and nonresidents, is $300 per team. Call

Investment From Page 35 they’re lazy,” a charge that he acknowledged would be “controversial.” Stevens said obtaining better yields is little more than “optimizing within the safest instruments. All it takes is a little work.” Terry’s proposal offered at the July 28 meeting represented a response to Stevens’ challenge.

the Ocean Pines Recreation and Parks Department at 410-641-7052.

Tennis Camp set for Aug. 15-19

The Ocean Pines Recreation and Parks Department will hold the final session of its All Aces Tennis Camp Aug. 15-19 at the Manklin Meadows Racquet Sports Complex, located at 11443 Manklin Creek Road in Ocean Pines. The five-day camp for ages 5-14 will be taught by Coach Erika Cook of Delmarva Beach Tennis. Cook was recently named “Best Youth Sports Coach in Worcester County” by Coastal Style Magazine. Participants will be evaluated and placed into groups by age and ability. They will need to provide their own age-appropriate tennis racquets; tennis balls will be available for use. Camp will be held from 9-10 a.m. for ages 5-6, 10:15-11:15 a.m. for ages 7-9 and 11:30 a.m.-1:30 p.m. for ages 10-14. The cost for ages 5-9 is $90 for Ocean Pines residents and $100 for non-residents. The cost for ages 10-14 is $130 for Ocean Pines residents and $140 for non-residents. Preregistration is required. Call the Ocean Pines Recreation and Parks Department at 410-641-7052.

Popular summer events continue in Ocean Pines

Summer is still in full swing in Ocean Pines as several popular weekly events continue through the season courtesy of the Recreation and Parks Department. Monday Movies in the Park will be held Mondays at 8 p.m. in White Horse Park through Aug. 22. Those attending are asked to bring chairs to watch a free family-friendly movie on the big screen. Concessions are available for purchase. The movie “Home” will be shown on Aug. 15 and the classic “The Wizard of Oz” is scheduled for Aug. 22. The Yacht Club Pool is open for families Wednesday evenings from 6-8 p.m. through Aug. 24. Games, contests and music are part of the fun, and food and beverages are for sale poolside. The cost is $3 for swim members, $5 for Ocean Pines residents and $7 for non-residents. Only those swimming pay a fee. Families are also invited to use the Yacht Club Pool for a special twilight swim from 6-8 p.m. on Mondays through Aug. 29. The twilight swim is free for Ocean Pines swim members, $3 for Ocean Pines residents and $5 for non-residents. It won’t have music and games like the more robust family fun nights, but it’s the first event outside of the traditional family fun nights that opens the Yacht Club pool to everyone no matter the age. Ocean Pines’ summer music series, Thursday Concerts in the Park, will be held from 7-9 p.m. through Sept. 1 at White Horse Park. The free family-friendly musical performances include Over Time on Aug. 11, The Belle Tones on Aug. 18, Barren Creek on Aug. 25 and Uptown Band on Sept. 1.

CAPTAIN’S COVE

August 2016 Ocean Pines PROGRESS

Residents complain of loss of use of town center pool four hours per week Summer camp at $150 per week leaves some regular pool users steaming By TOM STAUSS Publisher aptain’s Cove management and Billy Casper Golf general manager Phillip Evans are having to deal with complaints from some Cove residents about the decision to lease out the outdoor pool at the Town Center to a local summer camp for four hours per week for four weeks this summer. The Cove is reaping $150 per week or $600 for the deal with the Snow Hill Christian Nursery School, which closes the pool to Cove residents during that period. The two pools at the Marina Club – the indoor and outdoor pools – are open during the time when the Town Center pool is closed. There is no indication that the Cove intends to void the agreement to lease out the pool, although one Cove director, Dave Kieffer, has said that he believes $150 per week is too low a fee and needs to be increased. Billy Casper Golf, the management company that operates Cove amenities for the Cove property owners association, is reportedly looking at the fee structure for use of Cove facilities by outsiders. Indications are that the terms of the deal with the Snow Hill nursery school

won’t be changed. Cove President Tim Hearn went onto the message board to defend BCG for its decision to lease out the pool. “As has been the situation for many years … both the prior General Manager as well as the BCG team (who started in late 2012) have been asked to generate revenue by bringing in non-CCGYC (Captain’s Cove Golf and Yacht Club) activities from those outside entities who have a desire to pay a fee for the use of a CCGYC amenity,” Hearn wrote. “There has always been a conflict of opinion among the Members of CCGYC as to the value of these efforts, with those members who reside full time in the community, or during the summer season, most favorably inclined to being opposed to this program for the obvious reason that they utilize the amenities most frequently. The other side of the coin is the opinion from many members who are lot owners, and who do not use the amenities at all, and are pleased that CCGYC is attempting to bring in additional revenue which can be used to increase its net revenue, which translates into reduced assessments,” he said. Hearn wrote that with about 2400 dues paying members, and about 1000

homes in the community, it is certainly understandable why each opinion considers theirs to be of greater value. “While this message board’s content generally only contains content from about 5 percent of the members who only own lots, with 95 percent from those who are residents, that does not mean that the lot owners’ opinions should be disregarded, or that the members who post most frequently and aggressively unilaterally control a dialogue or decision,” he said. Hearn went on the say that the “the most visible use” of a CCGYC amenity is when the Marina Club is booked for a wedding or some other outside event, and from five to ten times per year will also include the use of the Marina Club outdoor pool area during that time period. “When that occurs, that pool is closed to member use. Fortunately, CCGYC does have two other pools available to its members during the summer, and it has been the Board’s determination that this is an equitable alternative,” Hearn wrote.

He acknowledged that the board is aware that some Cove residents don’t like when that happens and “that comes across every year, every summer, but during the past four budget cycles, the unanimous decision of the Board has been to approve a budget which contains this outside revenue. I believe in this current year, the gross amount is about $125,000.” Hearn said that the Snow Hill Christian Nursery School let CCGYC know that the summer camp that they offered children had unexpectedly lost the use of the pool they expected to use. “They asked if CCGYC could assist, and a four-hour block of time per week for the TC pool was allocated based on a per child cost for an amount no less than $150 per week. The 16 total hours of use represents less than 1.6 percent of the budgeted hours of pool use for the TC pool this season. While some may want to hyperbolize this use as well as the goals and motivation, from a board and budget perspective, it is no different than the dozens of time per year that another amenity has been made available to an outside party,” he wrote. According to Hearn, the decision by BCG to authorize these kinds of rentals “do not elevate to a level of requiring ongoing Board discussions, or the seeking of additional input from various factions within the community. Unless certain qualifiers are included within the budget, BCG is expected to work within the parameters that the Board has assigned to them and they have done that.”

Ocean Pines Music Studio

(Next to Jewelry Store)

Vet dogs

When Sandy and John Ward of Captain’s Cove recently completed raising their first pup, Audrey, they agreed to raise a new pup were named Thomas because their grandson, Thomas (left), is a U.S. Marine. While Lance Corporal Thomas Shemanski is serving his country, Thomas the VetDog could also be serving his country by supporting a veteran. The two Thomases spent time together over a recent holiday weekend. Volunteer puppy raisers are required to play a vital role in the development and the teaching of America’s VetDogs, a sister organization under the Guide Dog Foundation, and to follow the guidelines set up for the pups. The pups are trained at the Eastern Correctional Institute (ECI) by specially-selected inmates who train the dogs under the supervision of a Foundation trainer. Volunteer raisers, like Sandy and John Ward, pick up the puppy on Friday and return him on Sunday each weekend. The puppy raiser is required to teach the puppy basic obedience such as how to walk on a leash, sitting and staying down, and to come when called. They are responsible for taking the puppy to basic obedience classes each month. These classes allow the puppy to learn basic dog handling techniques and enable the puppy raiser to talk to other puppy raisers. Information on becoming a puppy raiser is available at vetdogs.com.

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38 Ocean Pines PROGRESS

August 2016

Cindy Welsh 302-381-6910 (cell)

888-241-9590 (office) candhwelsh@aol.com

For A Virtual Tour of Captain’s Cove, Please Visit My Web site at captainscoveproperties.com

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WATERFRONT LOTS NEW LISTING

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BAY VIEWS

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$2,000 2/377 Cleared, Secondary System $3,000 2/261 Wooded, Septic Approved $4,000 2/214 Cleared, Septic Approved $5,000 2/134 Wooded, Septic Approved $5,000 2/350 Cleared, Septic Approved $6,000 2/206 Cleared, Septic Approved $6,000 2/125 Cleared, Septic Approved $6,000 2/150 Wooded, Septic Approved $16,000 2/394 Cleared, Septic Approved $17,500 3/325 Cleared, Septic Approved

INTERIOR LOTS

$1. 10/10 Wooded $1. 3/1747 Wooded $100 7/153 Wooded $200 1/698 Wooded $250 10/140 Wooded $250 10/159 Wooded $300 10/128 Wooded $400 3/1743 Wooded, Septic Approved $1,000 4/2238 Wooded, Septic Approved $1,500 1/467 Mostly Cleared, Septic Approved

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$1,500 4/2231 Wooded $3,500 7/136 Wooded $4000$3,600 5/25621/1252 Wooded, SepticW&S Approved $1,600 9/123 Wooded, Septic Approved Wooded $4000$4,000 11/97 Wooded, Septic Approved $1,600 5/24 Wooded 9/185 Cleared $1,800 2/85 Wooded, Septic Approved$4000$4,000 6/24 Wooded, Septic Approved 1/806 Wooded $1,850 3/1776 Wooded, Septic Approved 11/58 Wooded, Septic Approved $4000$4,000 11/27 Wooded $2,000 11/17 Wooded, Septic Approved $4,000 5/2411 Wooded, Septic Approved $2,000 8/52 Cleared $4,000 5/82 Wooded $2,500 6/40 Wooded, Septic Approved $4,000 5/2553 Wooded $2,500 4/2165 Wooded $4,900 1/1091 Wooded W&S $2,500 4/2162 Wooded $5,000 6/17 Wooded, Septic Approved $2,500 4/2271 Wooded $5,000 11/101 Wooded, Septic Approved $2,500 5/41 Wooded, Septic Approved $5,000 1/1159 Wooded, W&S $2,500 5/2419 Wooded $6,000 11/87 Wooded, Secondary System $2,500 5/2427 Wooded $6,000 3/1608 Cleared $3,000 8/48 Cleared $6,000 1/868 Wooded, W&S $3,000 4/2104 Wooded, Septic Approved $7000 11/3 Wooded $3,000 3/1727 Wooded $7,000 11/2 Wooded $3,000 7/172 Wooded $7,000 9/101 Wooded $3,000 4/2088 Wooded $7,000 1/1055 Wooded, W&S $3,000 3/1642 Cleared, Septic Approved $12,000 1/1238 Cleared W&S $3,200 1/477 Wooded, W&S $3,400 9/127 Wooded, Septic Approved MEMBERSHIP LOTS $3,500 7/169 Wooded, Septic Approved $3,500 4/2139 Wooded, Septic Approved $1 16/33 $1 18/14 $3,500 4/2261 Wooded

©2016 BHH Afﬁliates, LLC. An independently owned and operated franchisee of BHH Afﬁliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Equal Housing Opportunity.

CAPTAIN’S COVE Town Center pool

August 2016 Ocean Pines PROGRESS

From Page 37 Hearn said the BCG leadership will certainly make sure that other CCGYC leadership is aware of a special type situation that it did in this case. “The expectation is that the Communications Coordinator and BCG will update the CCGYC amenity calendars with new information,” he said. George Dattore, one of the Cove residents who posted a complaint on the message board about the rental, posted a response to Hearn which seemed to indicate some degree of understanding for

Hearn’s opinion. Hearn “makes a very clear and compelling case for the cost/benefit analysis of renting the use of our amenities to non-members, and it is more than obvious that this issue is most important to improved lot owners, and the Board must act to the benefit of all lot owners. That said, one thing still remains to be considered that should bear on the Board’s decisions,” Dattore wrote. “The Cove’s original developers, “who wrote the Covenants, were clear in their expression that the Cove was planned and dedicated as a private community, and that ‘use and enjoyment’ of the

amenities is restricted to ‘members and their invitees (guests)’. Every time we hand out a Disclosure Packet containing a copy of the Covenants, we affirm that pledge and commitment to incoming new lot owners,” Dattore said. He suggested that if Cove facilities are rented out, it should “only be done in very rare and unusual circumstances.” He called it a breach of the Covenant’s stated grant of a use and enjoyment easement to block or deny access to members usage for other than normally scheduled reasons. Art display – The Cove message board also lit up in late July/early Au-

gust over the display of local artist Dawn Tarr’s paintings throughout the Marine Cove. Tarr is not a resident of the Cove and some posters said that only Cove residents should be able to display their artwork in the Cove facilities. It didn’t take long for the Tarr paintings to be removed in response to the complaints. It probably was no coincidence that the Tarr paintings were removed prior to the annual Taste of Art and Wine event that took place in the Marina Club banquet room. The artwork of Cove residents is displayed during that annual event.

Come Home to J&A Builders J&A Builders specializes in spec home sales and new home construction. All of our models are “stick built” and feature a first floor master suite with standard appliance package, and Low-E windows. These are a few of our models we can build on your lot. Prices DO NOT include the cost of clearing a lot OR the lot. Homes are of similar design and may have upgrades. Prices good for Captain’s Cove, Greenbackville, Va. Only. MHBR #4790

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Berkshire Hathaway HomeServices Pen Fed Realty 4323 Captain’s Corridor • PO Box 28 Greenbackville, VA. 23356 302-381-6910 (cell) • 757-854-1604 (office) 757-854-1606 (fax) Email: candhwelsh@aol.com

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40 Ocean Pines PROGRESS

August 2016

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Saturday, August 20 Paddle the Pocomoke for G.O.L.D., 5-8 p.m., Pocomoke River Canoe Company, 2 River Street, Snow Hill. $50 adults, $25 children 10 and under, $25 adults for food, beverages and entertainment only. Guided canoe or kayak paddle, food and live music by Frank W. Nanna & Son. Cookout-style meal with beer or wine (2 drinks per adult registration), raffle entries. Benefits local families in need through Worcester County G.O.L.D. Spaces limited. Register online worcestergold.org. Friday, Aug. 26 Kiwanis Club’s annual duck race, Frontier Town, Route 611. Tickets on sale, $5 per duck entry or three entries for $10. Winners do not have to be present to win. Proceeds benefit the club’s youth programs supporting the community. Tickets, 301-788-1517, or from a member of the Kiwanis Club of Greater Ocean Pines- Ocean City. Saturday, Aug. 27 USCG Auxiliary, one-day safe Boating class, Ocean City library, Coastal Highway and 100th Street, 10 a.m. to 6 p.m., meets requirements of the Maryland Boating Safety Education Act that requires anyone born after July 1, 1972, to possess a Maryland Basic Boating Safety Certificate to operate a boat in state. Course fee $15 includes course materials. Registration, Barry Cohen, 410-935-4807, CGAUXOC@Gmail.com.

Sunday, Aug. 28 Ocean Pines Chamber of Commerce Classic Car Show and Parade, parade begins at White Horse Park, 10 a.m., car show Veterans Memorial Park, 11 a.m. – 2 p.m. Free. Vehicles of all makes and models. $12 per car pre-registration or $15 day of the event. Vendors, food, music and trophies. Free dash plaque to first 50 entries. 410-6415306 or OceanPinesChamber.org. Tuesday, Aug. 30 Free women’s heart screening, 8-noon, Ocean Pines Health Pavilion, aboard the PRMC Wagner Wellness Van. Appointments are available every hour; fast for 8 hours prior to your appointment. Peninsula Regional Medical Center Cardiac Rehab, 410-543-7026 to schedule appointment. Thursday, Sept. 1 Women’s Club of Ocean Pines, monthly meeting, Ocean Pines Community Center, installation of officers, light refreshments, 50/50 raffle. The club meets the first Thursday of every month for speakers, luncheons, auctions, raffles and fundraisers. Membership dues are $10 per year Thursday, Sept. 1 and Sept. 8, 15, 22 and 29 Boating course, sponsored by the Ocean City Power Squadron, a unit of the United States Power Squadrons, Worcester County Library, Ocean Pines branch, eight-hour course on consecutive Thursdays, Sept. 29 exam. First day registration 6:30 p.m., class 7-9 p.m. $15 fee for the course and material. Middle and high school students free. Basic boat handling, navigation, federal and state regulations, rules of the road, aids to navigation, required equipment and more. Early registration 410-726-1509, 410-641-6535, 410-641-8040 or 410-2089747.

Wednesday, Sept. 7 Bar hop cruise, benefiting the Atlantic General Hospital 2017 Penguin Swim, sponsored by Ocean City Ravens Roost #44. Departing on the Explorer with Captain Jack from Mr. Ducks at 5:45 p.m., with stops at three waterfront bars. Return time is 10 p.m. Gary Miller, garywm@mchsi.com for information and reservations. Saturday, Sept. 24 Yard sale, Church of the Holy Spirit, 100th Street at Coastal Highway, 7 a.m. noon. Information, 410-723-1973. Tuesday, Sept. 27 Annual Patriot Day Fashion Show Luncheon, Republican Women of Worcester County, Clarion Hotel, 10100 Coastal Highway, Ocean City, doors open 10:30 a.m., program 11:30 a.m. Theme: America’s Suffragettes. Fashions by Chico’s. $33 per person. Information and reservations, Pat Addy, 410-208-0171, or check payable to RWWC, include choice of steak or chicken with salad and mail to Pat Addy, 20 Chatham Court, Berlin, MD 21811. Sunday, Oct. 9 Crab/chicken feast, the Church of the Holy Spirit, 100th Street and

Coastal Highway, Ocean City, 2-6 p.m., food served until 5:30 p.m. Crabs, fried chicken, hush puppies, cole slaw, iced tea, lemonade and coffee. Bring mallets. Desserts $1. Chinese auction. Tickets, $35 for people over 10, and $15 for those 10 and younger, available at the church. Information, 410-723-1973 or Monica at 443-235-894.

Ongoing

Ask a master gardener, clinic, every Tuesday, May through September, 1-4 p.m., Ocean Pines library. Offered by the University of Maryland Cooperative Extension Service. Master gardeners available to help with gardening questions. Please put your plant damage samples in a plastic bag and label the bag with your name and phone number. If your questions cannot be answered at the time of submission, it will be researched and someone will get back to you. Free platform tennis clinics, Saturdays at noon, Manklin Meadows tennis complex. Bring sneakers, the rest is provided. Annual memberships start at $150. Line dance classes, Monday and Wednesday, 9:30 -10:30 a.m., Ocean Pines Community Center. Beginners welcome. Betty Daugherty, 410-7261818, or bettydau@aol.com Pinesteppers Square Dance Club, Wednesdays, 7-9 p.m., Ocean Pines

Friday, Aug. 19 Ocean Pines Boat Club raft-up, John, 410-641-6571 to sign up.

HAPPENINGS

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Tuesday, Aug. 16 The Worcester County Commission for Women, monthly meeting, 5:30-6:30 p.m., Worcester County Board of Education, 6270 Worcester Highway, Newark. Open to the public and women of all ages. Volunteers needed for short-term assignments such as grant writing, fundraising, and event planning. Chair L. Eloise Henry-Gordy at 443-235-3124.

August 2016 Ocean Pines PROGRESS

OPINION

42 Ocean Pines PROGRESS

OPINION

August 2016

COMMENTARY No need to adopt ‘percentage methodology’ for OPA reserves Traditional way of funding has worked well all these years; proposed change is prelude to higher assessments It’s the most inside of inside baseball, but in fact a continuing debate over the proper level of Ocean Pines Association reserve funding is an issue that ought to concern every Ocean Pines property owner. More so than any other factor, funding of reserves at levels greater than what they are currently almost assuredly means an assessment increase, if not necessarily all in one year. Property owners are directed to any article elsewhere in this edition of the Progress for a detailed report on the ins and outs of the debate. In a nutshell, General Manager Bob Thompson and some of his allies, former OPA directors Tom Terry and Pete Gomsak, are pushing for a policy decision by the Board of Directors establishing a percentage of what’s called the annual component cost to be funded by the lot assessment. Thompson wants it to be 50 percent. Although it’s at best a guestimate and maybe not a very accurate one at that, the current annual component cost has been calculated at $14.4 million, excluding golf, which adds another $3 million to the ledger. So 50 percent of that means that Thompson is recommending that non-golf (presumably excluding bulkheads and roads) reserves be funded at roughly $7.2 million. As of April 30, according to Thompson, the annual component cost was funded to the tune of about $3 million, meaning there’s a shortfall in funding by $4.2 million if you swallow the concept that the OPA needs to implement this method of funding reserves. Of course there is no compelling reason to do so. In all of the discussions about this dubious proposition, neither Thompson nor his allies actually make a case for why they believe this component cost percentage idea should be adopted by the OPA. They sort of sug-

gest that the accounting profession thinks it’s a good idea, but there is no explanation offered about why the OPA is substantially improved by adopting this new methodology, as opposed to continuing with the cash-flow methodology for determining an adequate level of reserve funding. The existing methodology has worked more or less OK in the almost 50 years Ocean Pines has been operating as a homeowners association. What Thompson and his allies seem to be promoting is a hefty increase in assessments under the cloak of an arcane discussion over reserve funding levels. Without any attempt at conforming to this percentage-of-annual-component-cost system, the OPA currently funds its reserves at roughly 21 percent of the ACC, and that’s without even trying. The real agenda of Thompson and his cohorts is to boost the percentage into the 30 to 70 percent range – again, that’s the accounting profession’s preference – and the only way to achieve that is to increase the assessment over time to achieve that level. Thompson very graciously allows that maybe it’s not a good idea to attain that 50 percent funding level in one year – too much of a shock to the body politic, don’t you know – but that actually is a tactical technicality. The strategic objective is to collect more revenue in reserves as soon as practicable in order to have the cash on hand in advance in order to better sell the community on some high-priced capital projects that Thompson and his allies envision for Ocean Pines. Remember, that’s how the community was sold on a new Yacht Club a few years back. Recall how election materials said the OPA already had the money in the bank to pay for the new Yacht Club. Actually, that was a blatant falsehood, but what the OPA did have

was a funding mechanism in place to collect the funds needed to pay for the new amenity over roughly five years. It’s a funding mechanism that seems similar in some respects to what rather sneakily is being proposed now in the guise of a formula that many property owners won’t bother to understand. At least some OPA directors – Dave Stevens and Tom Herrick come to mind – are not fooled by all this financial smoke and mirrors. They are of the opinion that the level of funding in the reserves should be tied to actual needs as reflected in a board-approved capital improvement plan, as opposed to a fantastical version of one presented by the general manager last November. It’s never been discussed in any detail by the board and just sits there on a shelf, but it informs what Thompson presents in the form of proposed capital spending in the next round of budgeting. It exists in a kind of twilight zone, made possible by the lack of action on a CIP by this and earlier boards. It’s a complicated subject, but nature abhors a vacuum. If the board can’t come up with a CIP that the community at large can embrace, then Thompson will attempt to do so on his own, no doubt with his private band of advisers lending a hand. It’s not immediately clear where two other carry-over directors come down on the need for this percentage-based formula advocated by Thompson and his allies, but let’s hope that directors Cheryl Jacobs and Pat Renaud resist the siren call of higher assessments that this approach clearly invites. New directors elected this summer also need be in no hurry to accept the 50 percent funding requested by Thompson, let alone the underlying formula concept. The sooner this cockamamie funding scheme can be put to rest, the better. – Tom Stauss

HAPPENINGS

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From Page 41 Community Center with caller Dennis O’Neal. The group also hosts a dance the fourth Saturday of the month from 7-9:30 p.m., Ocean Pines Community Center. Guest callers lead the dancers with music and choreography. President Arlene Hager, 302-436-4033. Pine Tappers free adult tap dance classes, Tuesdays, 2-3:30 p.m., Ocean Pines Community Center. Exercise and have fun with choreographed tap dancing routines. From 2-2:30 p.m., brush up on basic techniques and a review of the routines, then join the regular class from 2:30-3:30 p.m. Every week or drop-in as convenient. Lori at 410-251-2162 or tntandcompany@gmail. com. Ocean Pines Ping Pong Club, Ocean Pines Community Center, Monday, Wednesday and Friday, noon to 2 p.m. All levels welcome. Eric Bowers, 410-208-1794. Suicide Grievers Support Group, 3rdThe Kiwanis Club of Greater Ocean Pines – Ocean City every Wednesday at 7:45 a.m., Ocean Pines Community Center.

OPINION

August 2016Ocean Pines PROGRESS

Herrick leads board effort for open vote count

cean Pines Director Tom Herrick is the board’s leading advocate for an open and transparent count of ballots cast in this summer’s OPA election. Though his efforts on behalf of transparency failed because of the status-quo thought process of a board majority, he nonetheless should be commended for his determined effort to bring the OPA’s board resolution that governs the annual board election into conformity with the Maryland Homeowner Act’s open meeting provisions. He’s not the only one pushing an open-count agenda. Two candidates for the board this summer, Slobodan Trendic and Brett Hill, also have been leading the charge. They were willing to go the extra mile to effect the change, even if it meant offending defenders of the status quo. Also joining the transparency effort were board candidates Tom Janasek, Doug Parks and Steve Lind. This cast of characters, according to Elections chairman Bill Wentworth, are composed of nuts and goofballs simply for the sin of literacy – being able simultaneously to read both the Maryland Homeowners Association Act and OPA Board Resolution M-08. They also displayed a level of discernment – the ability to detect subtle conflicts between the HOA Act and the board resolution – that Wentworth seemed incapable of achieving.

Memorial Day weekend coming a week later in the month, new competition in the area, to a generally weak start to An excursion through the curious cul-de-sacs An excursion through theby-ways curious and by-ways and cul-de-sacs the summer season in Ocean City, and of Worcester County’s County’s most densely community. of Worcester mostpopulated densely populated community. finally to the catch-all-mud-on-all-thewall-to-see-if-it-sticks excuse – it’s the By TOM STAUSS/ By TOM Publisher STAUSS/Publisher media’s fault for being so damnably negative. What was interesting in Thompson’s In a position that demands both the an independent financial watchdog with excuse-mongering is that he ignored appearance and reality of neutrality property owners’ interest foremost in Beisler’s central critique entirely – a and objectivity, Wentworth achieved a mind. loss of confidence in the amenity and its So it was a most salubrious develnew low of petty grievance and petumanagement by a large number of yearlance. At the same time, he displayed an opment indeed when committee memround residents. And yet it is that explaarrogant contempt for complying with ber Jim Beisler, during the committee’s nation that makes the most sense of all. state law, perhaps under some misguid- July confab, raised an uncomfortable It certainly explains why the Yacht ed idea that an OPA board resolution truth about financial performance at the Club racked up such huge losses in April can trumps the clear requirements of a Ocean Pines Yacht Club, specifically the and the winter months that preceded rather dramatic reduction in revenues Maryland statute. it. If year-round residents found the Whatever the outcome of this sum- year-over-year in the April through June Yacht Club to be a preferred destination mer’s election, the board ought to fix timeframe. of choice during cooler months when Beisler opined that the reduction the problem at the head of the Elections non-residents owners are back home in Committee. The OPA doesn’t need an- in revenues is the result of many yeartheir primary residences, then the reveround residents in Ocean Pines decidother election season like this one. nue numbers would reflect that consuming that other restaurant options in the er enthusiasm. That the numbers show area offer better value, service and amsomething much different ought to give Some unexpected sanity biance than the OPA’s most prominent Ocean Pines policy-makers (and manrestaurant amenity. He invited Generfrom the B&F Committee agement) considerable pause. Some property owners who follow al Manager Bob Thompson to offer his To his credit, Thompson isn’t simply the arcana of budgeting within the own interpretation and, if possible, some sitting back and accepting the status Ocean Pines Association can be forgiv- solutions to what apparently is ailing quo from his Yacht Club management en if they’ve concluded that, in recent the OPA’s $5 million (and counting) team. They’ve tried a few modest meayears, the Budget and Finance Advisory amenity. sures to improve matters, including Thompson’s explanation ranged all Committee has become a defacto arm some half-priced lunch specials and exof the OPA administration rather than over the map – from lousy weather, to panding the menu, but it remains to be seen whether this will attract diners to the extent needed. Half-priced lunch special in the heart of summer perhaps is a leading indicator of even more serious problems to come. They’re going to have to come up with something much better than that.

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