August 2019 Ocean Pines Progress

Page 1

OPA, Comcast close to inking right-of-way agreement

August 2019

www.issuu.com/oceanpinesprogress

Parks says company will have the option of offering full range of services to directly compete with Mediacom for customers By TOM STAUSS Publisher ith a recently concluded agreement in place that allows current cable television and Internet provider Mediacom to continue providing its current range of services in Ocean Pines, using rights of way and easements controlled by the Ocean Pines Association, there’s every indication that the OPA is close to concluding a deal with Comcast to provide similar services in Ocean Pines. “We’re in final negotiations for a contract to allow Comcast to access those very same rights of way and easements to provide their services,” OPA President Doug Parks said during the Aug. 10 OPA annual membership meeting According to Parks, about 18 months ago Comcast offered to provide services in exchange for a guarantee that all 8,452 homeowners sign up for basic cable through the company, “which would’ve increased your assessment by $360.” “I, respectfully, said ‘no thank you,’” Parks said. Now, it appears the Association is nearing a deal with Comcast that’s similar to the agreement with Mediacom. “We’re in lengthy discussions with them right now and hopefully we’ll be able to bring that in,” he said. “Hopefully, we’ll get that done real soon.” No deal was in place by the close of business Aug. 16, as this edition of the Progress went to To Page 32

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THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY

COVER STORY

Trendic presents petitions to force referendums on board spending authority OPA vetting signatures to determine whether there are a sufficient number to require a vote on the golf clubhouse project and a proposed $1 million limit on how much directors can spend on capital improvements without obtaining property owner approval By ROTA L. KNOTT Contributing Writer pair of petitions presented at the annual membership meeting of the Ocean Pines Association on Aug. 10 may have met the requirements to force to referendum a reduction in the Board of Directors spending authority and construction of a new clubhouse at the Ocean Pines golf course. During the public comments section of the meeting, Slobodan Trendic, a former OPA director, announced the results of his petition drives to secure the required number of signatures to bring the issues to a vote of the full membership. Consistent with the OPA’s governing documents, Trendic said he had obtained the signatures of 10 percent of the eligible members on each of the petitions. Each member signing the petition must be eligible to vote when the petition is filed, he said, citing OPA bylaws. A successful petition requires signatures representing at least ten percent of the “maximum number of votes” that can be cast. Trendic said he interprets that provision to mean that ten percent of properties in good standing, with no outstanding assessments or covenant violations, is the minimum needed to force a referendum. There were 7,957 ballots sent out in this summer’s board election, reflecting the properties in good stand-

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ing as of June 1. If that’s the standard, then a successful petition would need 795 valid signatures. Trendic’s petitions exceeded that. But there is another possible interpretation of the bylaws’ reference to the maximum number of votes that can be cast with respect to the number of valid signatures needed. Joe Reynolds of oceanpinesforum. com contended during the Aug. 14 special meeting of the board that the “maximum numbers of votes that can be cast” means a successful petition drive needs at least 845 signatures, or ten percent of the 8,452 lots in Ocean Pines. One of the submitted petitions, callin for a vote on the golf clubhouse, had 810 signatures. OPA President Doug Parks in response to Reynolds’ opinion said “point taken” and later said that OPA General Counsel Jeremy Tucker had been asked to render an opinion on which interpretation of the bylaws should govern. During the annual meeting, Trendic said the OPA’s bylaws section 4.07 allows a petition to be used to propose a specific action requiring a referendum. “I initiated that effort a few months ago,” he said. Two petitions were produced under the aegis of START ( Strategic Planning, Prosperity, Accountability, Respect and Trust), a grassroots advocacy group that Trendic founded several months ago after resigning To Page 31

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August 2019 Ocean Pines PROGRESS

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Matt Ortt companies, OPA ink three-year operating agreement Contract calls for 50-50 split of profits that exceed budget targets By TOM STAUSS Publisher

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he Ocean Pines Association and Matt Ortt Companies have inked a new three-year contract extension that allows MOC to continue to manage the OPA’s Yacht Club and Beach Club, while adding the Tern Grille at the new golf clubhouse to the venues that MOC will operate for the OPA. The two parties on July 19 had agreed in concept to terms of the three-year contract extension. At that time, OPA General Manager John Viola announced that MOC will also manage the Tern Grille bar and restaurant operation when the new golf clubhouse opens next spring. “This agreement is win-win,” Viola told the Progress last month. “It’s fair to everybody.” MOC originally signed an agreement to manage the Yacht Club and Beach Club last year. MOC is in the second year of its original two-year contract. Since that July 19 handshake agreement, lawyers have been busy drafting contract language. The OPA’s Board of Directors originally had scheduled a special meeting to ratify the agreement on Aug. 8, but that meeting was cancelled. Viola told the Progress that MOC’s Matt Ortt wanted more time to review the draft contract before signing off on it.

That occurred Aug. 14. The Pines Board in a special meeting in the evening that day voted 6-0 to approve the contract extension. The agreement will also include management of the Tern Grille at the Ocean Pines Golf Club. Ocean Pines and MOC originally signed a two-year contract to manage the Yacht Club and Beach Club last year. The contract would have expired next spring. “We’re thrilled to have finalized the agreement to keep Matt Ortt managing our food and beverage facilities into the foreseeable future,” Ocean Pines General Manager John Viola said in an OPA press release announcing the contract extension. “They’ve done a fine job in turning the Yacht Club and Beach Club around in terms of service, quality and better financial stewardship.” He repeated his comment from the previous month about the agreement being a “win-win” for both parties. “We couldn’t be happier with our relationship with Ocean Pines and we’re excited to continue being a part of this community. We especially want to thank John Viola for helping make this happen,” Ortt Companies co-founder Ralph DeAngelus said. “The Ocean Pines public has really welcomed us with open arms and that only makes us want to get better. We’ll be looking to raise the bar each year.”

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Ocean Pines and Matt Ortt Company officials on Aug. 14 signed a contract extension to continue managing Association food and beverage operations. Pictured, standing, from left, are Corporate Chef Stuart Diepold, Matt Ortt Companies Cofounder Ralph DeAngelus, and Ocean Pines General Manager John Viola. Seated, from left, are, Matt Ortt Companies Managing Partner and Ocean Pines Association President Doug Parks.

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August 2019


August 2019 Ocean Pines PROGRESS

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6 Ocean Pines PROGRESS

August 2019


OCEAN PINES

The Ortt Companies will receive a flat management fee of $200,000

7

Crafter of the month

The Pine’eer Craft Club has announced that the Crafter of the Month for August is Debbie Woodward, whose passion “is making creative designs in her dream business called Hippe Chic Designs.” She is a full-time resident of Ocean Pines. Born in Baltimore and raised in Pasadena, Md., she lived in Harrisonburg, Va., before moving to Ocean Pines with her husband of 38 years.

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From Page 3 Viola credited a workgroup with helping to draft the new contract. Workgroup members included Board members Jeff Knepper and Frank Daly, former Board member Esther Diller, Finance Director Steve Phillips, Budget and Finance Committee Chairman Larry Perrone, Executive Secretary Michelle Bennett and Marketing and Public Relations Director Josh Davis. The workgroup has since disbanded, Viola said. “It was a team effort with Jeff, a former attorney, helping us on the legal side,” he said. “We’re grateful for everyone’s input.” Based on the new agreement, the Ortt Companies will manage all food and beverage operations, including banquets, weddings and special functions, at all three locations. The Yacht Club is to remain open seven days a week, May 1 through Sept. 30, but may operate under a reduced schedule of at least three days per week from Oct. 1 through April 30. The facility will close from Jan. 2 until Super Bowl Sunday, with the exception of banquets.

The Beach Club will be open seven days a week from the Saturday of Memorial Day weekend through Labor Day Monday. The Tern Grille will be open seven days a week, March 15 through Nov. 30, with a reduced schedule of at least three days per week from Dec. 1 through April 30, plus weekends through the NFL Playoffs. According to the contract, “Any change to the days of operation shall be made by mutual agreement.” Additionally, the Ortt Companies agreed to “conduct continuous surveys to determine customer satisfaction” and a related food quality stipulation states: “The quality of the food must remain at least at the same level as in the prior year, as determined by [Ocean Pines] in its reasonable discretion based on criteria such as (but not limited to) customer complaints, poor online reviews or customer survey results. In the event the quality of food drops off … Matt Ortt agrees to rectify the situation immediately.”

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Matt Ortt contract

August 2019 Ocean Pines PROGRESS

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OCEAN PINES Matt Ortt contract From Page 7 each year, a 5 percent commission on gross banquet revenue for private functions and a 2 percent commission for functions of Ocean Pines clubs and organizations. The OPA and MOC will split combined profits from all three

August 2019 Ocean Pines PROGRESS venues 50-50 after targets are met. For the first year, the target is $130,000; the second year it’s $160,000; in the third year, $190,000. There is also a “clawback of management fee” provision if the combined operating profit is less than $100,000 in any term year. The general manager last month said he fully expects that the Yacht

Club and Beach Club will both be profitable for the OPA next year and that MOC will turn the Tern Grille into a surplus-producing venue. Since the MOC began managing the two restaurant venues last year, each has experienced a significant financial turnaround and earned rave reviews for improved food quality and service.

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Onion Rings ………..........................………....……. $5 Hush Puppies ……………...............................…….. $4 Old Bay Fries …………...........................………. $4.50 French Fries ……….............................…………….. $4 Steamed Corn (In Season) …………………. $1.25 each Corn Bread ………………………..................……… $2 Broccoli ..........................................................$2.50 Seasonal Veggie ............................................... Mkt. Mac & Cheese 8 oz. ……………….................………. $4 Cole Slaw ....... 4 oz. - $1.50, 8 oz. $2.50, 16 oz. - $4 Potato Salad .. 4 oz - $1.50, 8 oz. $2.50, 16 oz. - $4 Macaroni Salad 4 oz - $1.50, 8 oz. $2.50, 16 oz. - $4

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Under the leadership of Matt Ortt, DeAngelus and Executive Chef Stuart Diepold, the Yacht Club set new sales standards several times this season. In July, the Yacht Club set a single-day record with a $53,000 total revenue, including a $25,000 banquet. On July 5 the restaurant by itself set a single-day record with $40,700 in net revenues.

Fried Oyster (1/2 pint) ……………….………………. $22

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Oyster ………………………....................………… $12 Fresh Maryland Oysters tossed in seafood breading & lightly fried & served with homemade Cocktail Sauce Grilled Chicken …………………………………….. $10 Grilled Chicken breast topped with BBQ Sauce, crispy Bacon & melted Mozzarella Cheese Chicken Chesapeake ……………………….....….. $16 Grilled Chicken breast topped with our Crabs-To-Go Crab Dip & melted Mozzarella Cheese

PLATTERS

Served with your choice of 2 Sides

Crab Cake (2) …………….............………………… $28 Maryland Backfin Lump Crab Cake (Fried or Broiled) Crab Fluff (2) Fried ………….....…………………... $29 ¼ lb. Crab Cake covered in Tempura Batter Soft Crab (2 Whales) Fried ………..……………… $28 Our Famous “Fried”Combo ……....……………... $37 Flounder, Crab Cake, Shrimp, Scallops, Clam Strips Over 1 lb. of fresh seafood! Fresh Flounder (2/3 lb.) Fried or Broiled ….… $28 Fresh Rockfish (2/3 lb.) Fried or Broiled ...... $28 Fresh Salmon (2/3 lb.) Broiled .................……… $23 Fried Shrimp (9) Jumbo hand-breaded …….....… $22 Scallops (1/2 lb.) Fried or Broiled ........… $26 Shrimp & Scallops Fried or Broiled ……......……. $25 5 Jumbo Shrimp & ¼ lb. of Scallops

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Maryland Crab Soup 1/2 Pint $4, Pint $7, Quart $14 Homemade vegetable base soup chocked full of fresh vegetables & Maryland Crabmeat Cream of Crab Soup 1/2 Pint $5.50, Pint $10, Quart $20 Cream base soup filled with fresh Maryland Crabmeat Garden Salad ……………........................…………… $5 Ranch, Bleu Cheese, Honey Mustard, Balsamic or Italian Dressing Add Shrimp Salad, Tuna Salad or Grilled Chicken: $5 Ceasar Salad ....................................................... $7 Add Salmon, Scallops or Grilled Shrimp $8 Add Grilled Chicken: $5

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FROM THE STEAMER Sold at Market Price

Steamed Shrimp Medium, Large, Jumbo, U-12 Steamed Clams Little Neck, Top Neck (dozen, 50 or 100) Steamed King Crab Legs (by lb.) Steamed Snow Crab Legs (by lb.) Steamed Lobster Tails 4 oz., 8-10 oz.

FRESH SEAFOOD Sold at Market Price

Live & Steamed Hard Crabs by Bushel or Dozen Crab Meat (by the pound) Backfin, Backfin Lump, Jumbo Lump Soft Crabs (each or dozen) Primes, Jumbos, Whales Stone Crab Claws (by the pound) Scallops (by the pound) Oysters (dozen or pint) Mussels (by the pound – seasonal)

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Fisher Marine Construction in early August completed removal of remnants of the Whitetail Sanctuary crabbing pier.

Final portion of Pines crabbing pier removed

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ork to remove the remaining portion of the Whitetail Sanctuary crabbing pier in Ocean Pines was completed on Aug. 8. The floating portion of the pier was removed last November by Fisher Marine Construction based on a unanimous vote by the Board of Directors to authorize the work. Board members on May 4, this year, voted 5-0 to allow Fisher Marine to remove the remaining structure, essentially the walkway that lay across wetlands. The Ocean Pines Public Works Department performed some additional work in the area. The entrance from the road to the pier has been roped off, and new grass and several trees were planted in the entranceway. Additionally, drainage pipes, fencing, benches and bike racks were removed, and a small footbridge was taken down. Public Works Operations Manager Nobie Violante said the intention was to restore the site to a natural wetland and wooded area. “The idea was to make everything look like it’s back to nature,” Violante said. “The contractor will be doing the actual removal of the pier itself.” The pier was built originally as part of the Whitetail Sanctuary neighborhood and was not considered an amenity to be used by the entire association. The original permit, issued May 3, 1994, stated the pier was intended “for recreational use of abutting residential sections.” A turnover agreement later conveyed the pier to the Ocean Pines Association, and it became an amenity accessible to the entire Ocean Pines community. The decision by the board earlier this year to remove the pier To Page 12

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August 2019 Ocean Pines PROGRESS 11

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Board certifies election results with former directors participating Janasek, Perrone, Rogers elected to three-year terms By TOM STAUSS Publisher n a special meeting prior to the Aug. 14 organizational meeting, the directors met to formally certify the OPA election results. Certification of election results normally would have occurred during the Aug. 10 annual meeting of Ocean Pines property owners. Voting to certify the election results were two retiring directors, Tom Piatti and Jeff Knepper, who were appointed to full unexpired terms earlier this year. The requirement of 100 property owners to establish a quorum making the meeting official for election certification purposes fell short by two, necessitating the special meeting. Because of a lack of a quorum, there was no consideration of new or old business during the annual meeting. The usual reports by the OPA’s

I

The typical reports by the OPA’s general counsel, general manager, treasurer and auditor took place as usual. Parks said that according to an opinion by former general counsel Joe Moore several years ago, the three new directors elected in ballots counted on the Friday morning preceding the annual meeting were effectively members of the board. Even so, the OPA president was determined to extend the courtesy of allowing Piatti and Knepper to vote to certify the election results in the special meeting. If Moore’s 2015 opinion was correct, that would mean that this year’s successful board candidates -- Tom Janasek, Larry Perrone and Camilla Rogers -- became directors by virtue of being the top three vote-getters in this summer’s balloting, on the Friday before the annual

meeting when ballots were counted and results announced. Since there can be only seven directors at a time under OPA governing documents, it could be argued that Piatti and Knepper retired as directors when Janasek, Perrone and Roger became directors. If that was the case, it could be argued they

Crabbing pier From Page 10 was controversial. The board’s decision to remove the pier was based in part on an evaluation by J. Stacey Hart & Associates, Inc. of Snow Hill. The firm visited the site in April 2018 and concluded, based on a visual inspection, “the existing structure is beyond repair.” A 2007 study had suggested that the pier and its surrounding area

should not have participated in the vote certifying the election results during the Aug. 14 special meeting when election results were validated. Janasek led the slate of seven candidates with 2,160 votes, followed by Perrone with 2,131 and Rogers with 1,753. Other candidates running included Paula Gray, with 1,407 votes; Greg Turner, with 478 votes; Shawn Kotwica, with 235 votes; and Ed Solum, with 191 votes. Moore’s opinion, which he delivq

12 Ocean Pines PROGRESS

were not designed and are not maintained to sustain its high-occupancy and inappropriate usage.” Other factors for removal included the remote location and lack of public parking. Board members have publicly said they are open to considering a new location for a pier. Staff has been looking into the possibility of adding a pier to the Swim and Racquet Club campus in North Ocean Pines, but no plans have been devised or submitted to the board for review.

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Election results From Page 12 ered to the board in writing in 2015, did not address the question of when the terms of retiring board member expire. Nor did it address the issue of when election results are validated or when newly elected directors can act as directors. Moore delivered his opinion on when successful candidates become directors during the Aug. 17, 2015, organizational meeting of the board, after a contentious election and amid signs of rancor and factionalism on the board. Presiding as the outgoing president over the organization meeting before the election of new officers, the late Dave Stevens made it clear he thought an attempt by Director Pat Renaud to convene a meeting of five directors – himself, Terry, Bill Cordwell and newcomers Tom Herrick and Cheryl Jacobs -- prior to the scheduled organizational meeting – was improper, violating both OPA bylaws and the Maryland Homeowner Association Act’s open meeting provisions. According to an account in the Progress, it turns out the pre-organizational meeting never occurred

August 2019 Ocean Pines PROGRESS because neither Herrick nor Jacobs were able or willing to attend. Herrick in a posting on oceanpinesforum.com indicated that he was uncomfortable with attending a meeting in which two directors, Stevens and Jack Collins, were excluded. When an irate Terry asserted that the attempt to convene the pre-organizational meeting had been cleared in a phone call to Moore, Stevens shot back that Moore was wrong to give the legal advice he had. Later, Stevens said that as a director entering his sixth and final year on the board, Terry knew or should have known that a five-member meeting of the board violated Maryland law and OPA bylaws. “Of course he knew,” Stevens said. “It’s not credible to suppose he didn’t.” Moore’s initial advice to Terry in a phone call initiated by Terry said that a pre-organization meeting of less than the entire board was proper because the newly elected candidates, Herrick and Jacobs, would not become official, duly-elected directors until the organizational meeting of the board. That normally occurs within a week or two of the annual meeting. Forcefully contradicting Moore,

Stevens during the Aug. 17, 2015, meeting cited the opinion of former Bylaws and Resolution chairman Jim Trummel that successful board candidates become directors on the day election results are announced, which in 2015 occurred at the annual OPA membership meeting. Moore initially stood by his opinion, but he said he would review it, especially in light of Trummel’s viewpoint. He said he would owe the board an apology if it turned out that Stevens and Trummel were right and he, Moore, was wrong. In a memo to the board dated Aug. 18, 2015, Moore admitted he had been wrong and that Stevens and Trummel had correctly interpreted Maryland law and OPA bylaws. Actually, Trummel’s views on the matter were more nuanced than Moore perhaps understood at the time. Trummel clarified his position in an Aug. 10, 2019, response to an inquiry by Joe Reynolds of oceanpinesforum.com. Trummel made a distinction between when a successful candidate becomes a director and when that candidate can act in that capacity. According to Trummel, that can only happen after election results are validated. That normally oc-

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curs at the annual meeting of the OPA membership the day after ballots are counted. This year, because there was no quorum at the annual meeting, the election results were not validated until the Aug. 14 special meeting. “I agree with you that those candidates who won the 2019 election do not have authority to act as Board members until after the results have been validated by the outgoing Board. Validation, whether at an annual meeting having a quorum or by the outgoing Board when there has not been a quorum, is required,” Trummel said in his response to Reynolds. “The election of 2011 also involved a lack of quorum at the annual meeting. After some initial confusion, it was decided that a special meeting August 17, 2011, would be held by the outgoing Board to validate the elections results with the organization meeting of the new Board to immediately follow. “The then Association counsel Joe Moore participated in determining this process. Unfortunately, the approved minutes of the special meeting, posted on the Association website, show the Board members present as being the incoming Board. q

OCEAN PINES


OCEAN PINES

August 2019

Parks reelected president by colleagues Board elects officers, sets meeting dates for coming year By TOM STAUSS Publisher oug Parks, reelected to the Board of Directors in te summer of lat year by property owners and elected president of the Ocean Pines Association by his board colleagues last August. will be serving another year as president by virtue of a unanimous board vote during an Aug. 15 organizational meeting. The new board retained Steve Tuttle as vice-president and Collette Horn as secretary. The directors voted in newly elected Director Larry Perrone as treasurer. Perrone succeeds John Viola, the OPA general manager, in that post. The new board includes three new directors elected this summer, Tom Janasek, Larry Perrone and Camilla Rogers. The new board reappointed Michelle Bennett as assistant secretary, Finance Director Steve Phillips as assistant treasurer, and the Lerch, Early and Brewer of Bethesda as general counsel. The Phillips appointment is subject to a determination that an OPA employee can serve as an assistant employee. The board also decided, on the

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recommendation of Viola and of OPA organizational and Perrone, not to apdocuments. point an auditing firm. The board set Monday, The directors authorized Aug. 26, for an orientation Viola to seek competimeeting, primarily for the tive bids for the role via benefit of new directors a request for proposals but which most carry-over (RFP). directors attend. The hours The board did not are noon to 4 p.m. The venappoint a parliamentarue most likely will be the ian. Parks asked his colAssateague Room in the Doug Parks leagues to “solicit interest” in the community for the posi- Community Center. tion, which presumptively includes The directors also decided on a an understanding of Robert’s Rules meeting schedule for the coming

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Election results However, the video of the special meeting, posted on Ocean Pines Forum, shows the validation meeting being conducted solely by the outgoing Board without any participation by incoming members. “There is an August 18, 2015, memorandum opinion from then counsel Moore in which he addressed the time at which an elected member becomes an official member of the Board. He determined that it was at the time of election. However, his opinion involved events after an election in which there was a quorum at the annual meeting. “Neither were relevant to what he was addressing. For those who may want a more complete understanding of the background of the Moore memorandum, go to the August 17, 2015, video of the organization meeting. The topic is discussed for about 35 minutes shortly after the meeting began and Mr. Moore had ended his standard organization meeting presentation,” Trummel concluded.

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year, alternatimg Saturday morning meetings with Wednesday evening meetings through May, with one exception the first week of every month. In June, July and possibly August, meetings will take on Wednesday evenings. Meeting dates are Saturday, Aug. 31; Wednesday, Oct. 2; Saturday, Nov. 2; Wednesday, Dec. 4; Saturday, Jan. 4; Wednesday, Feb. 5; Saturday, March7; Wednesday, April 1; Saturday, May 2; Wednesday, June 3; and Wednesday, July 1. A meeting is tentatively set for Wednesday, Aug. 5. The annual meeting of the OPA membership is set for Saturday, Aug. 8. Saturday meetings are q

14 Ocean Pines PROGRESS

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August 2019 Ocean Pines PROGRESS

Parks reelected From Page 14 slated to begin at 9 a.m., Wednesday meetings at 7 p.m. The directors also agreed to continue the practice of holding three town hall meetings in the coming board term, which allow for more give-and-take between directors and members than normally occurs at regularly scheduled board meetings.

All three town hall meetings are scheduled on Saturdays, starting at 10 a.m. The first town hall meeting is scheduled for Oct. 26, followed by Feb. 1 and May 16. The first two will probably take place in the Assateague Room of the Community Center, with the May 16 town hall possibly to be scheduled in the new golf clubhouse.

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August 2019

OPA general counsel advocates for fining authority in presentation during OPA annual meeting Law firm has collected $593,000 in delinquent assessments, fees since August of 2018

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would give the homeowners association the ability to fine property owners for violations of the restrictive covenants. Jeremy Tucker, OPA general counsel with the Bethesda, Md., firm of Lerch, Early, and Brewer, said he

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thinks fines are a good idea because it provides a consequence for those who do not comply with restrictive covenants or the Architectural Review Committee guidelines. Real consequences including the imposition of fines are important for their deterrent effect on others who might be tempted to violate the covenants and guidelines, he argued. Tucker in his report discussed two primary topics, assessment collections and covenant enforcement. “When we were brought on… we were tasked with ensuring and assisting with enforcing your governing documents,” he said. “The concept was that for all of those that are complying with the governing documents, those who have been allowed for whatever reason to not comply with the governing documents have been essentially going off your backs. And for those homeowners that live next to somebody who’s violating the governing documents having to deal with all of those things.” Tucker said covenant enforcement was one of the more difficult things that his firm, working with the board and OPA staff, has had to address. The board has been more proactive during the last few years in forwarding cases to legal counsel, he said. Since Aug. 1, 2018, Tucker said his law firm has received 27 cases for issues related to lack of property

General counsel Jeremy Tucker

maintenance, or alterations, additions, or improvements to a property without the required approval. “Part of your covenants requires you to maintain your property and if you are going to make an addition, alteration, or improvement you have to go through the approval process,” he said. All of those property owners had gone through the OPA’s internal enforcement process, received notices of the violations, and failed to bring their property into compliance. “For whatever reason, they still chose not to respond, to comply.” Then they were forwarded to Tucker. Of those 27 cases, 15 of the property owners have fully complied, six are in the process of complying, and six remain open and effectively non-responsive, according to Tucker. Out of 8,542 properties in Ocean Pines, problem properties are a q

By ROTA L. KNOTT Contributing Writer he Ocean Pines Association’s general legal counsel during the Aug. 10 annual membership meeting advocated for changes to the governing documents that


From Page 16 small percentage. “What can we do about this? And what can you all do about this because I’m assuming many of you don’t want to live next to a home that is not maintained when you’re spending your time and money maintaining your home,” Tucker said. He said his firm had broached the idea of amending the governing documents for older sections of Ocean Pines, where most of the violations occur, to give the OPA the ability to levy fines. Newer sections of the community already contain that provision in their governing documents, he said. Tucker said his firm thinks it is a good idea to have the ability to issue fines for violations of the restrictive covenants because it allows the OPA to internally to enforce the governing documents. “For whatever reason some people need consequence to comply,” he said. With the ability to issue fines, the OPA would have a tool to prompt compliance without needing to send property violation to legal counsel,

August 2019 Ocean Pines PROGRESS and therefore without paying legal fees, Tucker said. Tucker added that controls to prevent the abusive issuing of fines should be discussed, including establishing minimum and maximum penalties and specific guidelines for hearings. “It’s something that we have found through our communities [the firm represents] that when they have that, it further reduces violations,” Tucker said Tucker said his firm, which represents about 800 communities managed by HOAs, has found a reduction in property violations in those communities that have the ability to fine. “Fines act as a deterrent and a penalty,” he said, adding that if people know they will be fined for a violation then they are more likely to comply. Tucker also said his firm was tasked with taking a more aggressive view of past-due assessment collections and going proactively after people within the confines of the OPA’s governing documents, Maryland and federal law. He said they have done that aggressively and

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Daly repeats hope that fining authority can be avoided

lthough General Counsel Jeremy Tucker in his annual meeting report to the Ocean Pines Association membership advocated changing Declarations of Restrictions to give the OPA the authority to levy fines, Director Frank Daly continues to suggest he believes that fining authority may prove to be unnecessary. It was Daly who recently proposed giving the OPA fining authority as a way of ridding the community of eyesore properties. His proposal met some resistance among his board colleagues. He joined a working group assembled by General Manager John Viola to explore alternatives to fines, and early indications suggest there may be ways to beef up and expedite enforcement efforts without resorting to fines. Those ways could include a new procedure that avoids board involvement in the process. In a conversation after the Aug. 10 annual meeting, Daly said it might be possible to seek permanent injunctions in court against property owners who repeatedly violate ~ Tom Stauss

successfully. “From my experience and certainly some of the board members experience, some people only response when there is consequence and that is unfortunate, but it is the reality,” he said. Since Aug. 1, 2018, his firm has collected $199,392.52 of unpaid assessments and related charges. Since the firm was hired by the OPA,

it has collected $593,061.22. “Obviously, that is a huge amount of money to bring in to your coffers and to help bring down the deficit and we’re pleased that we’ve been successful,” Tucker said. Now that a stricter approach to collections is in place, property owners will know there are consequences for not paying their annual

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Legal report From Page 17 assessment, he said. Neither the law firm nor the board is going to allow those numbers to grow anymore, but will be much more proactive in dealing with those things, he added. “For all of you that are paying

thank you. You’re one of the reasons why things are doing so well,” he said in reference to the positive financial outlook presented by General Manager John Viola earlier in the meeting. He closed by saying “it’s been a very good year” for Ocean Pines. “My impression [is] ... this was a turning year for the Board,” he said.

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Roundabout petition drive collects 350 signature More than 100 people sign during SHA’s July 11 information meeting By TOM STAUSS Publisher petition drive that is asking the State Highway Administration to conduct a formal public hearing on a proposal for a roundabout at Route 589 on Route 589 at the North Gate/Ocean Parkway insection has collected about 350 signatures. The petition is also asking the SHA to halt all activities related to the round-about pending a formal public hearing on the proposal. The petition drive was launched last month by Slobodan Trendic of START, an Ocean Pines advocacy group he founded. He began collecting signatures at a July 11 informational meeting on the proposal conducted by the SHA. The informational meeting fell well short of what a public hearing

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should be, Trendic said. The former Ocean Pines Association director said he has a goal of collecting 500 signatures before submitting the petition to the SHA. In reported comments last month, Trendic said there was no presentation on alternatives to a roundabout, including lane additions to Route 589 and a U-turn option for motorists turning right onto Route 589 from the nearby medical complex. In addition, he said an overhead electronic sensor to help move traffic at the North Gate/Route 589 interesection could ease the conditions that led the SHA to consider the round-about in the first place, Trendic said. “All of the other intersections on Route 589 have this overhead senq

18 Ocean Pines PROGRESS


OCEAN PINES

August 2019 Ocean Pines PROGRESS

Sports Core pool to close Aug. 19 for repairs; to reopen Aug. 30

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cean Pines’ Sports Core Pool will be closed Aug. 19 through Aug. 29 because of planned deck replacement. The pool also will be drained and cleaned, and the driveway will be resurfaced during that time. The facility will reopen with normal hours on Aug. 30. “Sports Core is such a wonderful asset to Ocean Pines, and we are excited for this much-needed upgrade to our parking lot as well as the repairing of the deck,” OPA Operations Director Colby Phillips said. “The new deck will be the official Rubaroc, and comes with the warranty we desire and need to keep our indoor pool in the best shape we can.” The OPA accomplished a major renovation of the Sports Core pool in 2016, including a new stepped entry area, pool resurfacing and a new rubberized decking product to cover the original concrete. The board early that year approved a $59,000 contract to Pools and Spas Unlimited of Milford, De., for the installation of the decking product, a material similar to the Rubaroc that had been recommended by the Aquatics Advisory Committee. The Rubaroc knock-off has not worn well in the ensuing three years, with one attempted repair failing to make much of a difference. Genuine Rubaroc will be installed by the manufacturer at a cost of about $68,000, within the amounted allocated in the approved 2019-20

capital budget, Phillips said. The parking lot resurfacing will be accomplished by the Public Works Department, and will include the existing black topped area. An unpaved section of the parking lot will receive a blacktop surface. This project was included in the approved 2019-20 capital budget.

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From Page 18 sors.” he said, suggesting a possible reason for not having one at the North Gate intersection was to exacerbate congestion as a way of creating support for a round-about option. During the July 11 informational meeting, he collected more than a 100 signatures in a petition asking for a formal public hearing to be convened on the proposal. The petition is in the name of Trendic’s START organization. Anyone wanting to sign the petition or additional information on it can call Trendic at 410-973-1574 or email him at strendic@yahoo.com.

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August 2019

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cean Pines officials in late July officially broke ground on the new craft building at White Horse Park, to be used by the Pine’eer Craft Club. The Board of Directors in June voted unanimously to award a $86,826 contract for the new building to Ocean Tower Construction, LLC. The building will be constructed based on a design by Ocean City architectural and engineering firm MAD Design Group, Inc. As a result of a March vote by the Board of Directors, the Craft Club will enter into a 10-year rental agreement for the new building, with an annual charge of between $3792 and $5064, depending on the final construction costs. The new building will stand across from the administration building and adjacent to the Ocean Pines Farmer’s Market held at White Horse Park, while the old building will be demolished to provide additional parking for the nearby Community Center. The club’s Artisan and Gift Shop was established in 1974 and the organization behind it has a long track record of giving back to the community, having donated more than $150,000 over the years to Ocean

Ground broken on new Ocean Pines craft building Old building to be demolished to provide additional parking Pines Police, Public Works, and Recreation and Parks, among other groups. The club also sponsors craft fairs that each year draw hundreds of people to Ocean Pines.

Ocean Pines officials, members of the Pine’eer Craft Club and representatives from Ocean Tower Construction LLC break ground on a new craft building in White Horse Park in late July.

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Ocean Pines Recreation and Parks Program Supervisor Debbie Donahue thanked the Board of Directors for approving the building upgrade, which she called “a long

time coming.” “I think it will make a much nicer location and storefront for our Craft Club to work out of, so they can continue to give back to the community and to the different departments of Ocean Pines,” she said. “They make donations every year to all of our departments with the funds that they make, and none of that money goes outside of our comq

22 Ocean Pines PROGRESS

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OCEAN PINES

August 2019 Ocean Pines PROGRESS

Association President also provides updates on Mediacom, Comcast contracts By ROTA L. KNOTT Contributing Writer

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cean Pines Association members should congratulate themselves for helping spur an economic turn-around that has significantly improved the Ocean Pines Association’s financial picture, President Doug Parks said

during a report at the Aug. 10 annual membership meeting. In his president’s report, Parks said he took the approach of reflecting on the past year. “I like to try to accentuate the positive.” “As a community we should con-

gratulate ourselves because we collectively helped with this economic turnaround,” Parks said, adding that everybody in the room and in the organization needs to applaud themselves. “Without the participation of the membership and the belief in

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Craft building From Page 22 munity. To me, it only makes sense that we would offer to put up a nicer building for them to be able to continue to do what they do,” Donahue added. Association President Doug Parks said he was “excited to get things started” on the new building. “It’s been needed for a while. The other building was not in great shape, so it makes all the sense in the world to provide this service to the crafters,” he said. General Manager John Viola agreed. “We think it’s a wonderful organization that for several decades has given back to both the Ocean Pines Association and the community, so we’re happy to do our part in supporting them with this new building,” he said. Pine’eer Craft Club President Sharon Puser said she was thrilled at the prospect of a new building with a better workspace and storefront. The organization has roughly 70 members. “That has been a long time coming for us,” she said. “The other shop was starting to be run down and now we’ll have a whole new space to continue our work, which is to help support the community. We’re very excited.” Oleg Shakirov of Ocean Tower Construction added the company was “honored to be awarded with this project.” “We want to help the community in putting this new building up and we hope they’ll enjoy this new space,” he said. Construction on the new building was scheduled to start this month.

these amenities and the things that we have here in Ocean Pines, this wouldn’t have happened.” He said “you can’t put it down on paper,” but rather it has to be something that people want to do, are willing to do and on which they are willing to spend their time. The Association closed out fiscal 2019 with a $115,000 operating surplus, while fiscal 2018 closed out with $1.2 million deficit. Parks also briefly touched on the forensic audit that reviewed OPA financial practices. “I encourage anybody who is still interested in looking to information q

Parks reflects on a year of financial turn-around, progress on projects

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24 Ocean Pines PROGRESS Parks reflects

From Page 23 from the forensic audit to please request a copy,” he said, adding that request can be made at the OPA administration building. He noted that the OPA makes an annual funding request to Worcester County and was granted $475,000 for police, $10,000 for tourism programs, $10,000 for recreation programs and facilities. A county contribution for roads and bridges is to be determined based on tax revenues and road mileage in Ocean Pines. “Just to let everybody know we go to county every year and solicit

for funding,” he said. Parks recognized Gene Ringsdorf, former assistant treasurer, for his work on a reserve study. He said Ringsdorf and the Budget and Finance Advisory Committee did an outstanding job of bringing the reserve study up to date. “I can’t stress the level of importance of having that reserve study accurate and up to date,” he said. He acknowledged the change in general managers during the year, with John Viola being appointed to the position following the exit of John Bailey. “We did unfortunately have to change general managers,” Parks said. “I think we took that as a board

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to figure out how do we transition from the situation we had to a situation where we hopefully go forward…” He said the results now speak for themselves. At the Beach Club, Park said the board authorized renovations, including a new bar that accommodates more patrons, and Matt Ortt Companies have been able to take advantage of both the inside and outside of the facilities for food and beverage operations. “If you haven’t been there, it’s really, really nice,” Parks said. Other projects that moved forward this year were planning for construction of a new golf clubhouse and cart barn, administration and police building renovations, and a craft building in White Horse Park. “Those kinds of things that have been waiting in the wings that we, through the efforts of a lot of folks, have taken on and moved forward, he added. He said implementation of the NorthStar financial management software is important and the OPA is hoping to “get a lot of economies of scale and efficiencies” for operations. Parks said the OPA has signed a new contract with Mediacom that gives the company access to association-owned easements to bring its services into the community. “Our agreement with Mediacom is to let them bring their services

through our easements and rightsof-way. It’s not a retail agreement.” He acknowledged that some residents are dissatisfied with Mediacom’s services and suggested holding a town hall style meeting at which company representatives could address those concerns. He also brought up reports of a right-of-way contract with Comcast. Parks confirmed the Association is in discussions with the company. [See story elsewhere in this edition of the Progress for details.] Parks started his presentation by citing the 50th anniversary celebration, which concluded last year with a gala at the Ocean Pines Yacht Club. The yearlong celebration of Ocean Pines’ golden anniversary also included a parade and community day, golf tournament, and a sock hop. “Apparently that was a big success [and] a lot of people had a lot of fun,” Parks said of the latter event. “I just wanted to point out a special thanks to the 50th Anniversary Committee … and specifically [committee Chairwoman] Jenny Cropper Rines for her involvement in organizing all these activities. It was a wonderful celebration that we should be proud of.” Parks also highlighted a series of town hall meetings, which he hopes the new Board of Directors will continue. “I think it was something that was very relevant to the organization [and] relevant to the membership, and it provided an opportunity to get the back-and-forth dialog that we don’t normally get at a Board meeting … I think it’s really important that we continue that.” Parks acknowledged Jeff Knepper and Tom Piatti. Both men were appointed this year after two other Board members resigned. “Jeff Knepper and Tom Piatti were asked to help the community … to help us get through the business of Ocean Pines,” Parks said. “Their contributions over the past several months have been many and I just wanted to publicly thank Jeff and Tom for stepping in.” Knepper and Piatti stepped in to fill the vacancies created by the resignations of directors Ted Moroney and Esther Diller, who both left the board for personal and not political reasons. A third director, Slobodan Trendic, resigned earlier this year, but he was not replaced because the vacancy was created roughly two months before the annual meeting and the election of new directors.


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Bob Wilkinson was a volunteer coach both for Ocean Pines and Ocean City recreation programs, she added. “We’re honoring a gentleman that has been such a great help, not only to our youth programs, but also in the community,” Donahue said.

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Originally from Baltimore, Weisengoff moved to the Eastern Shore Public comments in 1978 and became an Ocean Pines Price: 98.500 (00.00) meeting resident six years later. He retired at annual Coupon: 3.25 One woman(00/00/00) wanted to know why from the Maryland Division of CorMaturity Date: 07/15/2036 (00/00/00) the non-residents are allowed to rections in 2016 “and has pretty Callable Date: 07/15/2028 (00/00/00 or N/A) use the Ocean Pines Association’s Prince Md (Name ofanother MuniCnty Bond) much become a full-time volunteer 100 Call Price: Georges (000) amenities and berated the in our community,” Donahue said. / AAA Rating: Aaa (XXX/XXX) Weisengoff is a volunteer coach Other: 98.500 (Obligor) Price: (00.00) for the OC Fast Breakers girls’ bas* ketball team, which includes many Coupon: 3.25 (00/00/00) Carrie Dupuie, AAMS University Md Sys Auxiliary players from Ocean Pines, according (Financial Advisor Financial Advisor Name) 07/15/2036 Maturity Date: (00/00/00) to Donahue. In 2017, he was induct(Approved Title) Prince Georges Cnty Md (Name of Muni Bond) Fac &215 North Tuition Main Street Rev ed in the Washington Metropolitan Callable Date: 07/15/2028 Berlin, MD 21811 (Address) or N/A) 98.500 Price: (00/00/00 (00.00) 410-208-1704 Slow Pitch Softball Hall of Fame, as (City, ST 00000) Carrie.Dupuie@RaymondJames.com Coupon: 100 (00/00/00) 3.25 (000-000-0000) I (Toll-Free: 800-000-0000) Call Price: (000) an umpire. (000-000-0000) 4/01/2039 MaturityDue Date:Fax:07/15/2036 (00/00/00) Donahue said Weisengoff sched(E-mail Address) / AAA 07/15/2028 Rating: (XXX/XXX) Callable Date: Aaa (00/00/00 (Website) or N/A) ules referees and umpires for Ocean Callable 04/2029 Call Price: 100 (000) Pines’ recreation programs and has Other: Aaa / AAA 100 Rating: (XXX/XXX) Call(Obligor) Price helped to restructure recreation * Other:%(Obligor) (0.00%) TAX-FREE 3.25 TAX-FREE* rules “to better our programs.” Rating Aa1/AA+ 06/07/2018 **As As ofof00/00/00. “He and his Fast Breakers playPrince Georges Cnty Md (Name ofThe Muni Bond) Subject to availability and price change. Minimum purchases may apply. yield is the lesser of yield to maturity or yield to call. Interest is generally exem from federal taxation and may also be free of state and local taxes for investors residing in the state and/or locality where the bonds were issued. Howev ers have volunteered at many of AAMS bonds may be subject to federal alternative minimum Carrie tax (AMT), and Dupuie, profits and losses on tax-exempt bonds may be subject to capital gains tax treatme Carrie Dupuie, AAMS (00.00) Ratings by Moody’s/Standard & Poor’s. A credit ratingPrice: of a security 98.500 is not a recommendation to buy, sell or hold the security and may be subject to revie (Financial Advisor Name) revision, suspension, reduction or withdrawal at any time by the Financial assigning RatingAdvisor Agency. Insurance pertains only to the timely payment of principal and inte our special events for the past three (00/00/00) est. No representation is made as to(Financial any insurer’sCoupon: ability to meet its3.25 financial commitments. Ratings andName) insurance do not remove market risk since they Advisor (Approved Title) Financial Advisor not guarantee the market value of the bond. 215 North Main Street years,” she said. “He believes in givMaturity Date: 07/15/2036 (00/00/00) Securities offered through Raymond James Financial Services,Berlin, Inc. member FINRA/SIPC. MD 21811 (Approved Title) (Address) or 07/15/2028 Callable Date: (00/00/00 N/A) ing back and having the girls learn 215 North Main Street 410-208-1704 ST 00000) 100 Call Price:(City, (000) Carrie.Dupuie@RaymondJames.com the same philosophy.” (000-000-0000) I(XXX/XXX) (Toll-Free: 800-000-0000) Berlin, Aaa /MD AAA 21811 Rating: (Address) Fax: (Obligor) (000-000-0000) Other: Weisengoff also referees Ocean 410-208-1704 (E-mailST Address) (City, 00000) Pines youth basketball games. (Website) Carrie.Dupuie@RaymondJames.com (000-000-0000) I (Toll-Free: Carrie Dupuie, AAMS 800-000-0000) “As you can see, this gentleman (Financial Advisor Name) (Approved Title) Fax: (000-000-0000) has been and will hopefully contin(Address) ue to be a major asset not only to (E-mail (City, STAddress) 00000) (000-000-0000) I (Toll-Free: 800-000-0000) the Recreation Department, but the 06/07/2018 (Website) **As As ofof00/00/00. Fax: (000-000-0000) Address) Subject to availability and price change. Minimum purchases may (E-mail apply. The yield is the lesser of yield to maturity or yield to call. Interest is generally exem community as well. And I’m very from federal taxation and may also be free of state and local taxes for investors residing in the state and/or locality where the bonds were issued. Howev (Website) bonds may be subject to federal alternative minimum tax (AMT), and profits and losses on tax-exempt bonds may be subject to capital gains tax treatme Ratings by Moody’s/Standard & Poor’s. A credit rating of a security is not a recommendation to buy, sell or hold the security and may be subject to revie lucky to call him my friend,” Donarevision, suspension, reduction or withdrawal at any time by the assigning Rating Agency. Insurance pertains only to the timely payment of principal and inte est. No representation is made as to any insurer’s ability to meet its financial commitments. Ratings and insurance do not remove market risk since they hue said. “He also is pretty handy not guarantee the market value of the bond. Securities offered through Raymond James Financial Services, Inc. member FINRA/SIPC. Subject to availability and price change. Minimum purchases may apply. The yield is the lesser at catching crabs – and he likes to of yield to maturity or yield to call. Interest is generally exempt from federal taxation and may also be free of state and local taxes for investors residing in the state and/or locality where share.” the bonds were issued. However, bonds may be subject to federal alternative tax (AMT), and profits and losses on tax-exempt bonds may be subject to capital gains tax treatment. RatDonahue handed Weisengoff the ings by Moody’s/Standard & Poor’s. A credit rating of a security is not a recommendation to *As of 06/07/2018 buy, sell or hold the security and may be subject to review, revision, suspension, reduction or * As of 00/00/00. award as the two embraced. withdrawal at any time by the assigning Rating Agency. Insurance pertains only to the timely payment of principal and interest. No representation is made to any insurer’s ability to meet its Subject to availability and price change. Minimum purchases may apply. The yield is the lesser of yield to maturity or yield to call. “Thank you for everything!” Dofinancial commitments. Ratings and insurance do not remove risk since they do not guarantee from federal taxation and may alsothebemarket free ofvalue stateof and local taxes for investors residing in the state and/or locality where the b the bond. nahue said. bonds may be subject to federal alternative minimum tax (AMT), and profits and losses on tax-exempt bonds may be subject to Securities offered through Raymond James Financial Services, Inc., member FNRA/SIPC. by Moody’s/Standard & Poor’s. A credit rating of a security is not a recommendation to buy, sell or hold the security an (c) 2015 Raymond James Financial Services, Inc., member FINRA/SIPC 15-MFI-0113 ICD BS 8/15 Weisengoff, taking theRatings podium, revision, suspension, reduction or withdrawal at any time by the assigning Rating Agency. Insurance pertains only to the timely pa

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thanked what he called old and new friends in attendance. He was quick to credit the young athletes he coaches for their own volunteerism. “My kids are great. They help in everything I ask them to do ... Fourth of July, Breakfast with Santa, [the] Easter Bunny, whatever,” Weisengoff said. “They come and they willingly give ... I do some things, but I couldn’t do it without them.” As president of the Manklin Meadows Association, Weisengoff said he also wanted to thank the Ocean Pines Volunteer Fire Department for their recent service to the community. “We had a fire in one of our condo units the other day, and the firemen and the auxiliary was fantastic to our owners,” he said. Weisengoff said he receives a mailing from the fire department each year asking for contributions. * Most years, he admitted, he doesn’t pay much attention to them. Prince Georges Md (Name of MuniCnty Bond)

Paul Weisengoff, recipient of the 2019 Sam Wilkinson Volunteer Award, speaks during the annual membership meeting of the Ocean Pines Association Aug. 10. Also pictured is Recreation and Parks Program Supervisor Debbie Donahue, who presented the award.

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hen he was presented the Sam Wilkinson Volunteer Award, 2019 recipient Paul Weisengoff honored others for their service, including the children he coaches and the Ocean Pines Volunteer Fire Department. The annual award each year recognizes outstanding volunteer service to the community through the Ocean Pines Recreation and Parks Department. It was presented during the annual membership meeting Aug. 10 by Recreation and Parks Program Supervisor Debbie Donahue. “In August 2003, the Sam Wilkinson Volunteer Award was established here in Ocean Pines in honor of an 8-year-old young boy named Sam Wilkinson who lost his life in a tragic accident at Northside Park in Ocean City. As a way to honor the memory of Sam, and the Wilkinson family for their dedication to Ocean Pines Recreation and Parks, we felt the award would continue on in his name and pay tribute to Sam’s involvement here in the Recreation Department, as well as his father,” Donahue said.

OCEAN PINES BRIEFS

25

q

Weisengoff given Wilkinson Award

August 2019 Ocean Pines PROGRESS

©2015

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26 Ocean Pines PROGRESS August 2019 pools. OCEAN PINES BRIEFS From Page 25 Board of Directors for establishing an expiration date on amenity coupons. These comments were offered in the Public Comments segment of the Aug. 10 annual membership meeting. Property owner Becky Clark said she is concerned about allowing public use of the OPA’s amenities. She wanted to know if outside use of the amenities is really contributing significantly to the bottom line and helping to reduce the cost to OPA members. “We are a homeowners association. We are not a resort destination,” Clark said, and asked if the amenities exist to serve residents and their family and guests or the general public. Now, she said, she is hearing that hotels in Ocean City that don’t have pools are telling their guests to come to Ocean Pines and use the pools. “When is this going to become too crowded?” Property owner Maggie Doll was upset that the swim coupons she purchased will expire at the end of the season and not be usable next year. She said she would like a refund for any unused passes, adding that she will lose nine visits to the

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Doll wanted to know why the OPA is keeping her money from unused coupons on the swim card, and said she believes that is illegal. She likened the swim cards to a gift card that “you buy and use it until its gone.” If it is a gift card, they cannot expire for four years after purchase, she said.

some insurance that those numbers are what we call not materially incorrect or materially correct.” Shifrin said his firm also reviews the OPA’s internal financial controls. However, they do not provide an opinion on the internal controls but just review them so they understand how the association’s conducts its financial operations.

Auditors report clean financials

Restrictive covenant archives updated

For the third year since taking over as the Ocean Pines Association’s auditors, the firm of SC&H Group has reported a clean audit for the homeowners association. “There was nothing that we found that was out of the ordinary or unusual or in error,” Paul Shifrin, of SC&H Group, told members gathered for the Aug. 10 annual OPA meeting. Schifrin said John Viola, OPA general manager, and his staff provide all of the financial data and information on internal controls included in the annual audit. SC&H Group then reviews that information to ensure its accuracy. “It is what we call a clean opinion, an unmodified opinion so it says the numbers are accurate….” he said, adding “We perform procedures to give

The Ocean Pines Association has updated its online archive of Declarations of Restrictions. Several of the files were incomplete because they lacked amendments filed after the original declarations. The following sections were updated: • Section 1: added Book 275, Pages 1-7 • Section 12: added Book 4984, Pages 710-713; Book 5228, Pages 280-283 • Section 14C: added Book 1176, Pages 393-395; Book 1316, Pages 562-564 • Section 15A: added Book 2127, Pages 97-168 • Section 18C: added Book 2268, Pages 443-448; Book 2362, Pages 409-416 This list was compiled using

Ocean Pines’ records and the State of Maryland archives at MD LAND REC, an online database maintained by the Maryland Judiciary, the 24 elected Court Clerks of Maryland, and the Maryland State Archives. However, additional documents may exist. To view a list of Ocean Pines Declarations of Restrictions by section, visit www.oceanpines.org/forms-docs-cat/declaration-of-restrictions. To view a list of land records filed with the State of Maryland, visit www.mdlandrec. net. Ocean Pines encourages homeowners to check their paper copies of the Declarations of Restrictions for their section against the online archives. For any corrections, email info@oceanpines.org.

OPPD hires two recruits for training

To fill existing vacancies, the Ocean Pines Police Department recently hired two new police recruits, Colin Morris and Joshua O’Ferrall. Both recruits will attend the local police academy at Wor-Wic Community College in Salisbury for 25 weeks of training to be a certified police officer, per state requirements.

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OCEAN PINES

August 2019 Ocean Pines PROGRESS

27

OPA ahead of budget by $309,000 at one quarter mark July positive variance is $55,000; amenities firing on all cylinders

J

back in July after recording negall cylinders so far this year, ahead ating surplus of $105,817. The Tern Grille is net positive ative variances to budget in May of budget by $52,806 on year-to-date net revenues of $85,842. A year ago, through July by $12,297, compared and June. July’s positive variance net revenues through July were to a year ago when the cumulative was $22,312. At the one quarter mark, Aquatics is behind budget by surplus was $4,810. $27,694. Aquatics staged a financial come- $16,588. Beach Club parking is $36,857 ahead of budget through July, on July 2019 Net Operating Results by Department net revenues of $335,861. That’s more than any other amenity at the one quarter mark. Marina operations are ahead of budget by $35,647, on revenues of $335,861. Golf and the Tern Grille are adhering close to budget. But net revenues of $225,981 compare favorably year-over year. Golf in July of last year had recorded an oper- Source: Ocean Pines Association, Department of Finance q

By TOM STAUSS Publisher uly financial results released by the Finance Department Aug. 16 shows the Ocean Pines Association doing very well one quarter into the 2019-20 fiscal year. Year-to-date through July, the OPA recorded a $308,523 operating surplus. July’s positive variance to budget was $54,649. The Yacht Club for the first quarter of the year leads all amenities with a $107,193 positive variance to budget. The Yacht Club recorded net earnings of $97,639 in July, ahead of budget by $5,412. At the one quarter mark, net earnings were $174,127. A year ago through July, net earnings were $78,199. Gross revenues in July were $467,067, ahead of budget by $19,197. Gross revenues through the first three months of the fiscal year were $1.1 million, a milestone never before reached this early in the fiscal year. The Beach Club also is firing on


28 Ocean Pines PROGRESS August 2019 Financial perfomance

OPA signs contract for compensation study; cost to be $48,000 to $51,000

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he Ocean Pines Association in late July signed a contract with New York firm Sibson Consulting for a comprehensive compensation study to include employee wages and benefits. According to the contract the total fixed fee, including expenses, will be $48,000 to $51,000. The Board of Directors earlier this month voted 6-0 to authorize General Manager John Viola to negotiate a contract for the study. According to the formal Board motion, the contract amount was “not to exceed $100,000” and would include an “analysis of all positions and salaries, [an] external salary survey, benefits study, development of a compensation philosophy, and development of an implementation plan.” Budgeted funding for the study was $25,000, but a work group later agreed the higher cost was “justified based on need for the scope of services that are proposed,” according to Director Colette Horn. “The consultant will be helping Ocean Pines develop a strategy for making any compensation adjustments needed, based on their findings and based on upcoming changes to minimum wage,” Horn said. “They will be providing us with tools to set and adjust compensation such that we will be able to fore-

cast payroll and benefit costs more than a year at a time.” The finalized contract features several phases of work, with Sibson set to create “a customized salary, benefits and pay practices market survey with up to 30 benchmark job titles, to be distributed to up to 12 HOAs and municipalities.” Sibson will then compare salary ranges and benefits packages with other homeowner associations and cities, and draft a report on the findings. Based on the report, Sibson will develop pay schedules and recommend salary structures and incentives that “can be supported without excessive increases to the yearly property owner assessments.” The firm will estimate the cost of implementing the recommended changes “to provide parity with the identified market.” In a final phase, Sibson will craft a presentation for the Ocean Pines Board and homeowners. General Manager John Viola the said cost was lower than first estimated because Ocean Pines would take on some of the work, including writing job descriptions using Sibson-approved templates. The firm is scheduled to start work on Aug. 7, q

From Page 27 But Aquatics’ net revenue of $298,391 is second only to Beach Club parking in the amenity departments through July. A year ago net Aquatics revenues at the one quarter mark were $284,472. Racquet sports combined are performing close to budget for the year. The Parks and Recreation Department is ahead of budget by $40,124 for the year so far, followed by Public Works’ positive variance of $32,665. Other departments ahead of budget include the general manager’s office ($20,234), finance ($14,798), general administration ($7,622), and general maintenance ($688). Reserve summary: The OPA had $10.657 million in allocated reserves through July 30, comprised of $6.47 million in the replacement reserve, $2.78 in the bulkheads and waterways reserve, and $1.39 in the roads reserve. Balance sheet: Total assets of $40 million were balanced by liabilities and equity in the same amount at the end of July. Short-term investments were valued at $14.9 million.

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Compensation study From Page 28 with a target of finishing by the end of October. Viola said that timeline would allow the study results to be factored into the fiscal 2021 budget. “We want a comprehensive, benchmarked evaluation, by position, with a review of job descriptions and compensation ranges including a minimum, maximum and midpoint,” Viola said. “It has to be a complete, comprehensive analysis of our compensation package – and not just salary.” Viola said the study would provide transparency both for the assessment-paying homeowners and the employees who work for the Association. “It’s also important to make sure we’re paying everybody fairly and that we have the proper package to attract the proper talent,” he said. Viola added the increased cost would not negatively impact the budget, with additional money likely coming from a prior-year budget surplus. Along with Viola, the workgroup that helped negotiate the contract included Board members Horn, Jeff Knepper and Frank Daly, Operations Director Colby Phillips, Finance Director Steve Phillips, Golf Director John Malinowski, Budget and Finance Committee Chairman Larry Perrone, former Board member Tom Terry, and Executive Secretary Michelle Bennett. Bennett, who has taken a lead on the project, offered an employee’s perspective. “As the employees received benefit cuts and no pay increases this year, it was not an easy decision to spend this money,” she said. “However, the community and the employees deserve a study we can all believe in and follow through with. We believe this will help both groups in the long term,” she said.

Trendic pushes back again against criticism by former OPA president Tom Terry owners against following the lead of Trendic as the Board of Directors considers the petitions turned over by Trendic to OPA secretary Colette Horn calling for two referendums having to do with board spending authority. One petition asks property owners to reduce board spending authority to $1 million from the current threshold of about $1.7 million, or twenty percent of the revenue derived from the OPA annual lot assessment. The second petition asks property owners to vote up or down on current plans to spend up to $1.6 million on a new golf clubhouse that will also include space for community events and meetings. The new 7,200 square foot clubhouse is designed to replace the old Country Club that was demolished earlier this year. Only the foundation remains. Construction of the new building is expected to commence by mid-September, with volunteer consultant Marvin Steen on Aug. 9 confirming that the county has issued permits for the replacement building. The new building could be under roof on or about Nov. 1, Steen told the Progress. The first steps will include pouring a new foundation over the

existing one. He said a new building would be framed out and under roof in a month after a new foundation is poured. At the annual meeting, Terry told property owners that Trendic had been on the board that produced a $1.6 million operating fund deficit in the 2017-18 fiscal year. Urging property owners to vote against both referendums called for in the START petitions, Terry in effect said that Trendic’s guidance on OPA financial

29

matters was tainted because of his service on the board that produced the record operating fund deficit in 2017-18. Terry’s comments echoed remarks he made at a Feb. 2 budget town meeting, when he targeted Trendic as the “only” director still on the board from the period in which the operating deficit ballooned. Terry did not explicitly mention Trendic’s name in his remarks. Trendic did not respond to Terry at the Aug. 10 annual meeting but did so in a follow-up inquiry by the Progress. He said he was tempted not to “dignify” what he called Terry’s “unprofessional and inaccurate personal attack,” contending that Terry apparently had “learned q

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Trendic vs. Terry From Page 29 nothing” from Trendic’s published remarks in response to Terry’s criticisms from the Feb. 2 town hall meeting. Trendic said his record as a director was replete with efforts to urge his colleagues to take action that would have effectively dealt with the operating fund deficit that occurred during the 2017 and 2018 fiscal years. He made the same point in response to Terry’s earlier criticism made back in February. Trendic had been critical of decisions by former acting general manager Brett Hill that Trendic said contributed to large deficits at the Yacht Club and Beach Club, which in turn were the primary drivers for operating fund deficits. In his remarks to the Progress after the annual meeting, Trendic said he would not be conducting a campaign to persuade property owners to vote to lower the spending threshold or to stop the golf clubhouse project. While he said his personal opinions on both issues were self-evident based on his efforts to bring them to

the attention of the board via a petition drive, he said he was content to let property owners “make up their own minds” on these issues and to render their verdicts in the referendums called for in the petitions. In a rebuttal delivered during a Feb. 9 work session on the budget, Trendic had said Terry’s reference to a director who was on the board in the fall of 2016 and not present at the Feb. 2 meeting could have only referred to him. “I wasn’t there because I was out of town,” Trendic said, explaining why he felt compelled to respond to Terry’s critique. “My wife was having surgery. That was my priority.” Trendic said that he was elected in the summer of 2016, joining the board in August, the same month Terry retired after six years as a director. Trendic said that current OPA president Doug Parks was appointed to the board in the fall of 2016, former director Ted Moroney was appointed in 2017 (elected in 2018), and current director Colette Horn was elected in August of 2017, all serving during the time when financial challenges occurred. Trendic said that during the time

period when the operating deficit ballooned, the year Hill served as acting general manager, he fought against board inaction that he said contributed to the problems. He said he opposed a 20 percent give-back at restaurant venues and urged the board at the time to make budget cuts that could have reduced the operating fund deficit. He was also critical of then director and OPA Treasurer Pat Supik, who he contended passively accepted the accumulated deficits that occurred while she was treasurer and chief financial officer. The criticism of Supik was said to have been a factor in her decision to resign from the board and as treasurer, a decision that led to friction between Parks and Trendic at the time. He said he voted against budgets in the two years at issue, adding that Parks did, too, in one of those years. He also suggested that Terry, in his six years on the board, was not the paragon of fiscal rectitude that his remarks seemed to indicate. Trendic said in 2013, a year Terry was OPA president, the operating

fund deficit was $1.02 million, citing the audited financial statement for that year. It was the second highest operating fund deficit in Ocean Pines’s 50year history, Trendic said. The deficit was $559,000 in 2014, $712,000 in 2015, and $402,000 in 2016, the year Terry retired. “It was $363,000 the following year,” Trendic said. In an Aug. 9 follow-up email to the Progress, Trendic added to his February comments. “As soon as the previous Treasurer resigned I quickly approached John Viola and then submitted my nomination to the Board for John’s immediate appointment,” Trendic said. “I also brought Ralph and Matt Ortt Companies to the attention of the former acting GM. I felt their proven skills and expertise were desperately needed for our food and beverage operations. “And now that John Viola is our new GM, the entire Association will continue to benefit even more from his expanded role. And our food and beverage business is showing great overall improvements thanks to Matt Ortt Companies,” Trendic said.

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Petition drive From Page 1 from the board. “START and the team worked very hard on these two petition drives,” Trendic said. One petition calls for a reduction in board spending authority from 20 percent of annual assessment revenue to a flat $1 million, and the second calls for homeowners to approve the new golf clubhouse project at a cost not to exceed $1.6 million. The petitions were designed not to favor one or the other but really to ask the board to conduct a referendum on those two questions as simple “yes or no answers,” Trendic said. On Aug. 13, the OPA released a statement attributed to Association Secretary Colette Horn. “I have received two petitions and we are now in the process of certifying that they meet the requirements of our governing documents,” the press release said, adding that the

Board of Directors “had no further comment at this time.” According to the bylaws, if a referendum is initiated by a valid petition, the petition must contain a specific question, proposal, or action suitable for an affirmative or negative response on a ballot. The OPA must hold a public hearing on the proposal within 60 days after a valid petition is filed. Notice of the hearing and a copy of the proposal in the petition must be provided to the members at least 15 days prior to the hearing by mail or in a publication distributed by the Association to the members. The board has up to 30 days after the public hearing to send out referendum ballots. That means the board has up to 90 days after a petition is filed to conduct a referendum. Trendic said START mailed 2,500 envelopes to property owners seeking their signature on the petitions and a number of volunteers

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collected in-person signatures. Full page ads containing the petitions were placed in the June edition of the Progress. As a result of that effort, START was able to obtain 880 signatures on the petition regarding board spending authority and 810 signatures on the petition related to the clubhouse project. If these signatures hold up through the vetting process initiated by Horn, the OPA secretary, then there could be a sufficient number of names to force referendums on both questions. But that will depend on which interpretation of the bylaws the board choses to apply, The petition on the golf clubhouse collected less than ten percent of the 8,452 property owners in Ocean Pines, but all of those were not eligible to vote on the date Trendic submitted the petition. Some lot assessments had not been paid as of June 1, the cut-off for eligibility to vote in the annual OPA board election,

31

which if Trendic’s view prevails lowered the number of voters otherwise eligible to vote. If that is the measure Horn uses to assess the number of valid signatures on the golf clubhouse petition, there should be enough names to validate that petition and force a referendum on that issue. In response to a Progress question after the annual meeting, Horn seemed to suggest that eligible voters are defined as those in good standing at the time petitions were submitted. But if Tucker issues an opinion that in effect says “the maximum numbers of votes than can be cast” is 8,452, then the board would have a rationale for deciding that the golf clubhouse petition would fall short of the required minimum. Trendic later commended Horn for her initial judgment, commenting that the OPA bylaws are not perfectly clear in defining the term “eligible voter.” This is another exq

COVER STORY


32 Ocean Pines PROGRESS

COVER STORY

August 2019

Petitions From Page 1 ample where the bylaws should be cleaned up and made more precise,” Trendic said. In accordance with the bylaws, Trendic turned in the petitions to Horn as OPA secretary for validation and announcement of the results. He said he wanted to make sure he is complying with the entire process as set forth in the bylaws. Following Trendic’s announcement regarding his petition drives, a trio of property owners spoke up during the Public Comments segment of the meeting to encourage OPA members to reject imposing a $1 million limitation on board spending authority and to vote in favor of the golf clubhouse project. Anne Shockley said she likes to give her opinion on issues as much as anybody else. But she said she votes to elect board members who she feels will do what is best for the community. “So I somewhat trust those people to do what they need to do to enhance Ocean Pines and make it a place that we all want to live,” she said. Shockley said referendums cost money and lowering the board’s spending authority to $1 million would result in the need to hold more referendums. Each one of those could cost at least $4,000. She said $1 million sounds like a lot of money but it really is not for construction and community improvement projects. “So you can end up nitpicking the

community and the treasury every time you want to do something by having a referendum,” she said. Former OPA director Pete Gomsak encouraged property owners to vote no on both issues if they go to a referendum. “I respect the effort you’ve put forth. Certainly, the bylaws provide for what you’ve done, and so I’m certainly appreciative of you doing that,” Gomsak told Trendic. “However, I hope that if the signatures hold up, which they probably will, and it goes to vote, that you’ll vote no as I intend to do on both of those proposals.” Gomsak echoed Shockley’s statement that $1 million is not a lot of money and said that limitation would tie the board’s hands. “In my opinion we have to trust the board that we elect,” Gomsak said. He argued that the current spending limit in the bylaws provides for a certain percentage of annual assessment revenue in order to accommodate inflation. “Those bylaws are created with that in mind,” he said, adding that the board needs that flexibility up to 20 percent of the annual assessment revenue. Gomsak said the board has done a great job for the community and pleaded with property owners not to restrict its spending authority. Regarding the golf clubhouse project, he applauded the OPA’s progress. “Don’t forget, it’s not just about golf.” He said the clubhouse will be used for other than golf activities. “It’s intended for the entire community,” Gomsak said, in reference to meeting space in the new

clubhouse that can be used by community groups. Tom Terry, another former OPA director, also opposed the petition drives seeking referendums on the board’s spending authority and the clubhouse project. Without specifically naming him, Terry called out Trendic for being one of the board members who helped put the OPA

Comcast From Page 1 press. However, sources told the Progress that there’s no reason why a contract won’t be concluded very soon. Director Frank Daly said the involvement of lawyers inevitably adds more time to the process. Parks told the Progress after the Aug. 14 organizational of the board that the contract being negotiated will authorize Comcast to provide all the services that it routinely provides to communities throughout the United States, including in nearby Berlin, Ocean City and Salisbury. That means that if it decides it wants to go head-to-head against Mediacom in the cable television space, it can. Comcast also will be able to offer phone service to compete against Mediacom and Verizon in that space. But perhaps of even more interest to Ocean Pines residents are prospects that Comcast will be able to provide reliable, high-speed Internet services to residents, at a lower cost that Internet-only users currently pay Mediacom. There’s the possibility that Mediacom, in the hopes of retaining

thru Oct. 21

10-15-19

in a poor economic condition a few years ago. He said in 2016 the OPA was in the black and then leadership changed and the association ended up well over $1.5 million in debt. “One of the leaders of leading into that change stood up here a few minutes ago with a couple referendums in his hand trying to lead the community again,” he said. Terry’s language lacked precision. its customer base once Comcast has rolled out its services in Ocean Pines, could lower prices at the same time it improves Internet reliability. Parks said that Comcast will be free to install new 5G technology that has been phased in elsewhere in the United States. While 5G still relies on fiber optic cables to some extent, much of its souped-up Internet speed is delivered wirelessly, which would require towers to be erected either in or near Ocean Pines. If Comcast opts to go 5G, it would mean that the company would be able to avoid laying fiber optic cable to the same extent that Mediacom relies on buried legacy co-axial and fiber optic cable throughout Ocean Pines. Although the OPA recently inked a contract with Mediacom, and it should be available soon for release to property owners and the media, Parks has been keeping it under wraps until the contract with Comcast is completed. “I’m just very cautious when it comes to contracts,” Parks told the Progress. He said the two contracts are similar, but he seemed to be inviting speculation that there could be enough differences in the two contracts to cause some potential difficulty with Mediacom once both are released. Previously, Daly told the Progress that Mediacom will remain the OPA’s primary commercial Internet provider, with Comcast to serve in a back-up capacity whenever there’s an outage in the Mediacom system. For retail users, however, Parks said that Mediacom and Comcast would compete on a level playing field, with residents free to choose the company they feel offers the best service at the lowest prices. One key individual that has been assisting Parks and the working group focusing on the Mediacom and Comcast contracts is Tom Terry, former OPA president and director and former chair of the Technology Working Group.


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CAPTAIN’S COVE

August 2019

Captain’s Cove board votes to retain $1200 annual dues Twice-a-year levy remains the same for seventh consecutive year

By TOM STAUSS Publisher t was not unexpected, but even so the vote by the Captain’s Cove property owner association’s Board of Directors to retain the community’s $1200 annual lot assessments, or member dues as they’re called locally, is noteworthy. Tim Hearn, the former Cove president and current director who presided over the Aug. 15 meeting of the board at the Marina Club, said that the 2019-20 budget that goes into effect Nov. 1 will be the seventh consecutive year that the assessment has been set at $1200, payable in two installments of $600. The dues in Captain’s Cove include access to all of the community’s amenities without additional membership fees; golf cart fees and boat slip rentals at the Marina Club are additional, however. The board also voted to set waterfront fees for canal-front owners at $200 for the coming fiscal year, earmarked to cover a portion of the Cove’s dredging expenses. Constructing and maintaining bulkheads in Captain’s Cove is the responsibility of individual homeowners.

I

The money collected from canal-front owners is insufficient to cover the full cost of dredging in any given year, and the board earlier in the year considered not imposing the fee next year for that reason. Hearn during discussion noted that the board was not voting on the entire 2019-20 budget, which has been posted on the revamped Cove Website. The somewhat unorthodox method of accessing the proposed budget is to click the calendar on the left side of the home page, and then to click the Aug. 15 board of directors meeting indicated on the calendar. The budget and other meeting documents display after the second click. Hearn said that individual line items may be amended between now and the annual meeting in November. But the budget’s bottom line probably won’t change much from what appears on the Web site. Hearn did not promise that the $1200 assessments would be retained for an eighth consecutive year. But he seemed to suggest that they could be, so long as the community’s surpluses continued as a

healthy percentage of the Cove’s $5 million in annual revenues. Hearn said he gauges the community’s financial health by whether it retains “double digit” Ebitda, or earnings before interest, taxes, depreciation and amortization. He said the Cove’s net surplus last year was 16 percent and is likely to be in double digits this year. If it drops down into single digits, it could be a “red flag” that revenues are insufficient to run the operation effectively, Hearn said. Web site update: Recognizing that the recent revamp of the Cove’s old Web site has not been a success, General Manager Justin Wilder announced that he’s in discussions with another Web site vendor that specializes in producing Web sites for property owner associations such as Captain’s Cove. The cost for a one-time revamp using the previous Web site’s interface, functionality and features as a template would be $2,000, with ongoing monthly costs of $95 for a site that would require “self-management” as needed, Wilder said. The general manager also announced that the transition to a new phone system is under way, with

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the security department using cell phones instead of land lines. Pending transition to a new system for other departments, Wilder said the old landline system will remain in place until the functionality of the new system is proven to be stable and operationally sound. Once fully implemented, the new system is expected to save the Cove association money in lower phone bills. Broadband contract -- Although Wilder and board members constantly hear from property owners about whether a contract with Broadband Connect has been signed, Hearn made it clear during the Aug. 15 meeting that it hasn’t been. Broadband Connect is the company that the the board selected to install high speed Internet in the Cove. Until the contact is negotiated and signed, there will be no work in the Cove installing fiber optic cable lines. No one really have a good idea on when that will start. The uncertainty probably will continue to be a point of frustration for residents who crave reliable, high speed Internet service. Hearn said the board will not let process drag out indefinitely. Hearn said the first draft of a contract provided by the company has been marked up by the Cove and sent back to the vendor for a response. Hearn added that he said that multiple drafts might be exchanged before a final version is accepted by both parties. Although the Cove has conceptually agreed to a ten-year no-competition clause, Hearn said the contract will need to include an “opt-out” provision should the vendor for whatever reason be unable to complete the project of providing high speed Internet throughout the Cove. The board several months ago voted to authorize exclusive negotiations with Broadband Connect to complete a contract. Some residents apparently interpreted that action as a completed contract. It wasn’t. “It’s moving forward,” Hearn said, adding that the contract “isn’t that complicated.” Once it’s finalized, the vendor will have a year to install a fiber backbone system throughout Captain’s Cove. Board election -- Wilder is preparing election materials that will be sent to property owners in September. There are two director seats q

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August 2019 Ocean Pines PROGRESS

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August 2019 Ocean Pines PROGRESS 37

CAPTAIN’S COVE Cove election From Page 34 to be filled, along with one alternate who votes when an elected director is absent. Current directors Patricia Pelino and John Costello are probably in line to be re-elected with developer support. Two other candidates who will appear on the ballot are Dawn Wagner and MaryJo DeLoe, who

also are competing for the alternate position. Communication with members -- Director Rosemary Hall, who has let it be known throughout this past year that she’s unhappy with the board’s meeting schedule, and the practice of having meetings near the Baltimore officers of some directors, asked during the Aug. 15 whether members are happy with the level of communication between

the Cove association and residents. While there seems to be some degree of unhappiness with the quality of communication, there were few suggestions on how to improve it. Hearn said that there will be four scheduled meetings of the board this coming year, and general manager town hall meetings during most of the months when the board doesn’t meet. He made no promises about

where meetings will be held. Road improvements -- The board voted unanimously during the meeting to proceed with the third phase of road resurfacing in Section 13. Hearn said that road resurfacing will be complete in this section at the end of 2019-20 fiscal year. He called Section 13 one of Captain’s Cove highest and scenic sections, with panoramic views of Swan Gut.

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Marlin • $212,100

Striper • $259,900

Tarpon Plus with Bonus Model Two-story Contemporary Home 3 BR/2.5 BA 1607 Sq Ft

Two Story Contemporary Home 3 BR / 2.5 BA 1722 Sq Ft

Two Story Contemporary Home 3 BR / 2.5 BA 1874 Sq Ft

Two Story Contemporary Home 3 BR / 2.5 BA 2243 Sq Ft

Tiger Shark • $185,200

Hammerhead • $244,800

Thresher • $246,500

Mako • $272,200

• 3BR/2.5 BA New Construction • 1774 sq. ft. • Extended Kitchen & Dining Area • Screen Porch • Optional Unfinished Bonus Room

Raised Home on Pilings 3 BR/2 BA 1349 Sq Ft

Raised Home on Pilings 3 BR / 2 BA 1663 Sq Ft

Raised Home on Pilings 3 BR/2 BA 1745 Sq Ft

Raised Home on Pilings 4 BR/3.5 BA 1940 Sq Ft

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 the lot. Homes are of similar design and may have upgrades. Prices good for Captain’s Cove, Greenbackville, Va. Only. MHBR #4790 PRICES SUBJECT TO CHANGE

CINDY WELSH - REALTOR Hall Realty

4323 Captain’s Corridor Greenbackville, VA. 23356 302-381-6910 (cell) • 757-854-1604 (office) 757-854-1606 (fax) • Email: candhwelsh@aol.com


38 Ocean Pines PROGRESS

OPINION

August 2019

Petition debate should be kept on a higher plane

F

ormer Ocean Pines Association director Slobodan Trendic has accomplished what very few have done in Ocean Pines’ 50-plus years. He and his team of supporters with advocacy group START managed to collect signatures for two petitions that will force the Board of Directors to conduct one, and possibly two, referendums on issues that should matter to Ocean Pines property owners. Given the odds against success and the personal and financial sacrifice in that effort, Trendic did not deserve the derogatory personal comments directed at him during the annual meeting of the OPA membership Aug. 1, by someone who surely should have known better. Former OPA President and director Tom Terry, who presided as president over the second largest operating deficit in the history of Ocean Pines, indulged in an unfair and inaccurate critique of Trendic for the latter’s role on the board when the OPA amassed an operating fund deficit of $1.6 million in Fiscal Year 2017-18. “One of the leaders of leading into that change stood up here a few minutes ago with a couple referendums in his hand trying to lead the community again,” Terry said. “When somebody has violated ... trust in the past, pay very close attention to where they would lead you.” Employing a deceitful “guilt by association” ruse, Terry essentially held Trendic responsible for two years of operating losses -- the second year’s loss was roughly $1.1 million -- that occurred when Trendic was on the board. Terry must not have been paying attention during those tumultuous years, when Trendic almost single-handedly tried to stop the policies that led to the financial losses that Terry finds so disturbing. Trendic’s tempestuous relationships with the former acting general manager, and efforts to rein in management policies that led to the losses, stands in stark contrast to the laissez-faire attitudes of most of his colleagues during those years. Terry ought not to be pointing fingers at operating losses rung up by his successors on the board when he himself presided over a $1 million operating fund deficit in a year in which he served as OPA president. Was Terry personally responsible for that deficit? Of course not, and he

immediately thereafter, with roofing well under way by mid-November. With a signed contract and An excursion through the curious cul-de-sacs An excursion through theby-ways curious and by-ways and cul-de-sacs contractors hard at it, it seems of Worcester County’s County’s most densely community. of Worcester mostpopulated densely populated community. almost inconceivable that Ocean By TOM STAUSS/ By TOM Publisher STAUSS/Publisher Pines property owners would vote should not be trying to pin the losses force a referendum. against spending up to $1.6 million of of the 2017 and 2018 fiscal years Trendic suggests that “maximum on a project well past the starting on Trendic, who tried his best to votes than can be cast” is a gate. With a building under roof and lead the OPA away from the policies reference to properties in good the OPA bound by a contract and that produced the deficits. He even standing, that is, current in paying the OPA substantially invested in it, suggested an alternative to failed their lot assessments and with no only a relative handful of property management at the Yacht Club and outstanding compliance issues. owners would feel compelled to stop Beach Club to the former acting Indeed, in the last board election, this project when it’s well under general manager. His solution? Hire less than 8,000 ballots were sent way. What, exactly, would be the outside management, in particular out to property owners because alternative? the Matt Ortt Companies, a some of them had not paid their lot Nothing really comes to mind, suggestion Trendic says the former assessments by the June 1 deadline. other than a smaller building, and a acting general manager ignored. Additionally, there is language in smaller building would probably not Needless to say, the Matt Ortt the bylaws that require petitioners provide adequate space for anything Companies and its management to be in good standing; in other other than golf-related activities. team, subsequently hired by a board words, if they signed petitions As envisioned, the new clubhouse of which Trendic was a member, while in arrears with their annual is as much a community building as is a primary reason for last year’s assessments, property owners’ it is a golf clubhouse. precipitous decline in the operating signatures could be voided for With little to no chance of fund deficit and the current year’s purposes of counting toward property owners voting to stop strong start. That’s another reason the minimum number of valid construction, the board actually Terry’s critique of Trendic is so signatures. has very little to lose by allowing a unfair. If the bylaws insist on that “good clubhouse referendum to proceed. Terry is on sounder footing when standing” standard for the petition But given the lack of clarity in the he praised last year’s board (and drive, arguably that same standard bylaws, and the discretion that this implicitly Trendic) for taking steps should be used to determine the allows, the directors probably will to reduce the operating fund deficit “maximum number of votes” than take the path of least resistance by almost 50 percent, and he’s well can be cast in a referendum called by and simply invalidate the clubhouse within bounds when he argues that petition. If that’s the standard petition. against the intent of Trendic’s that’s used, the 810 signatures on That won’t be possible for the petitions. Two other property the clubhouse petition would be petition calling for a reduction in owners at the annual meeting, sufficient to force a referendum. the board’s spending authority to Anne Shockley and Pete Gomsak, This is yet another example of $1 million, of course. More on that managed to make their points bylaws that lack clarity and are another time. without disparaging Trendic. In the open to interpretation. It would future, if he plans on participating hardly be surprising if a board in the coming debate, Terry should majority adopts an interpretation emulate the other two in keeping consistent with the objective of The Ocean Pines Progress, a journal the discussion on a higher plane. proceeding with the construction of of news and commentary, is pubAs for the merits of the two a new clubhouse as expeditiously as lished monthly throughout the year. petitions, reasonable people possible, without the “interference” It is circulated in Ocean Pines, Bercan disagree without the of a pending referendum. lin, Ocean City, and Captain’s Cove, disagreeableness displayed by Indeed, the referendum process Va. Terry. One of the petitions, which as outlined in the bylaws allows asks property owners to vote on the board up to 90 days to hold a 127 Nottingham Lane spending up to $1.6 million on a referendum after petitions are filed, Ocean Pines, MD 21811 new golf clubhouse, might not make which means that it might be midit to referendum. Trendic and his November by the time a clubhouse PUBLISHER/EDITOR START team collected 810 names referendum begins. The process Tom Stauss on that petition, less than the 845 includes a public hearing no later stausstom@gmail.com presumably needed under OPA than 60 days after a petition filing, 443-359-7527 bylaws, which require a successful and another 30 days after that for petition to gather ten percent of “the ballots to go in the mail. Advertising Sales maximum number of votes” that can By mid-November, weather Frank Bottone be cast in an OPA election. permitting, the new clubhouse 410-430-3660 With all 8,452 property owners might be under roof. Work on theoretically eligible to cast votes, poring a new foundation is expected CONTRIBUTING WRITER the Board of Directors without to begin in mid-September, and Rota Knott breaking a sweat could decide that could be completed by early InkwellMedia@comcast.net 810 signatures are insufficient to October. Framing could commence 443-880-3953

LIFE IN THE LIFE INPINES THE PINES


August 2019 Ocean Pines PROGRESS 39

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40 Ocean Pines PROGRESS

August 2019

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