Board tables vote on ethics proposal
A second reading of a revised Resolution B-08 on ethics and conduct of members the Board of Directors was tabled during a July 15 meeting pending a review by legal counsel. Only Director Steve Jacobs opposed tabling the motion for approval. Director Colette Horn offered the motion to approve revisions to the former Resolution 8-08, Director Ethics and Conduct, as a policy statement on the principles of ethics and conduct to guide directors in the carrying out of their roles on the Board.
~ Page 9
Parks revisits his his seven-year roller coaster ride
Doug Parks’s seven years as a member of the Board of Directors coincides with the roller-coaster history of Ocean Pines during that period.
The lows were turbulent and divisive, the highs as full of achievement as they possibly could be. Fortunate for Parks and the Board, he’s leaving at a high point.
~ Page 14
INSIDE THIS EDITION
Ocean Pines ............... Pages 1-34
OPA Finances .................. Page 35
Lifestyles ................... Pages 41-47
Opinion ..................... Pages 38-39
Captain’s Cove ......... Pages 48-63
Tardy ballots, but vote count still on for Aug. 10
not begin receiving election materials until the week of July 25, about a week late
By TOM STAUSS Publisher
In a June 2 meeting of the Ocean Pines Elections Committee, chairman Tom Piatti said that ballots would be mailed by the Ocean Pines Association’s new elections vendor in Washington State beginning on July 11.
It didn’t happen. All the election materials the vendor needed to begin the mailing July 11 had been supplied by the OPA, and on a Zoom call on July 12 the vendor, Election Trust of Bainbridge Island, Washington, indicated no problem with the schedule, according to Piatti.
But follow-up checking by the committee determined that the ballots didn’t arrive at a post office near Seattle until the 18th, and the actual mailing began the following day, Piatti said.
In accordance with the four or five business days normally needed to mail the ballots across country, they began arriving in Ocean Pines on Tuesday, July 25, a day before that in some more urban areas of the mid-Atlantic.
“We had a bonafide contract for the mailing fof 7,781 ballots,” Piatti said, with roughly ten percent of the lots in Ocean Pines ineligible to vote because of unpaid assessments or alleged compliance violations.
“We still need to finish the election, but there will be repercussions for the late ballots, believe me,” Piatti said.
In a press release issued by the OPA, he made it clear the problem was not with the U.S. Postal Service.
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~ Page 36-37
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short of the vendor losing next year’s contract.
OPA election
From Page 1
While he said the matter will need to be thoroughly vetted post election, preliminary indications are that a subcontractor hired by Election Trust to print, stuff and mail the ballots, a firm called PMA Direct Marketing of Kent, Washington, failed to get the job on time, for reasons that Piatti and his committee have yet to determine.
One possible remedy could be a negotiated reduction in the fees to be paid Election Trust this year, he said.
“We’ll get to all that, but right now we still need to finish the election,” he said.
The dropbox at the police station was made available for those wanting to avail themselves of that option beginning Monday, July 24, with FedX shipments taking place as ballots accumulate.
ton, failed to get the job done on time, for reasons that Piatti has yet to determine.
“They’ve not been forthcoming,” he said of Election Trust, clearly unhappy that details are scarce. But he said it’s not a good idea to “beat up” on the contractor now because so much of the process still needs to unfold, and it’s possible that all will go flawlessly until the vote count occurs.
There are benchmarks along the way, with the vendor periodically giving the committee updates on the votes cast. Piatti said it’s still too early to determine whether the week delay in ballots arriving will adversely affect election participation, which in recent years has been less than 40 percent of eligible voters.
He said it’s too soon to know whether Election Trust’s contract with the OPA will be renewed for the 2024 election.
“That’s up to the Board,” he said, “but we’ve been subjected to a lot of stress” from critics in the community. “They (Election Truust) didn’t meet the terms of the contract,” and there will be discussions with the vendor on possible remedies
Piatti said there was agreement on the committee and the Board of Directors not to change the deadline for return of the ballots in Washington state, which remains Tuesday, Aug. 8, for ballots mailed using the U.S. Postal Service. The deadline for depositing completed ballots in the dropbox at the Ocean Pines Police Department is Wednesday, Aug. 9, with a final overnight FedX shipment planned so that ballots arrive the next day in Washington state for counting on Thursday, Aug. 10.
Piatti said it’s possible that the vote count could be pushed back one day until Friday, Aug. 11, if there is an indication that recorded voter participation is less than normal and that an extra day could improve the recorded count.
“That would be a Board decision,” he said.
Some OPA members noticed that the outer envelop used to contain the ballot includes a barcode and also the name of the OPA member. a change from recent years. There has been some social media criticism of the name, with critics apparently fearful that the confidentiality of their vote will be compromised.
“Not true,” Piatti said. “The ballots get separated from the envelope before they’re counted. No one will get to see how someone voted.” The barcode and name helps the vendor confirm the identity of a voter so that voter can be notified via email that the ballot was received.
“It was done that way at the vendor’s request,” Piatti said.
Piatti acknowledged that was some discussion at the committee and Board level to extend voting a week to reflect the week’s delay in the arrival of ballots in the homes of voters.
Piatti acknowledged that there was some discussion at the committee and Board level to extend voting one week to reflect the week’s delay the arrival of allots in the homes of voters.
“We decided against that,” he said, suggesting that the two week turn-around for return of ballots should be sufficient for property owners. “As someone said, we need to be adults about this.”
As previously reported, Piatti said only those with active email addresses on file with the OPA will receive email confirmation that their ballots have been received and recorded, noting that roughly 2500 OPA members don’t have valid email addresses.
He said the plan to remotely view the ballot count on Aug. 10 via online streaming remains in place.
There have been reports that a delegation of critics of this year’s election process are planning
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From Page 3 to fly to Seattle and drive to the offices of Election Trust to observe the count in person.
Rick Farr, the Board’s committee liaison, said they’re free to do so but he called it an overreaction and has nothing to do with election integrity.
“Yes, the ballots were late,” he said. “But that doesn’t mean there will be anything wrong with the count, and their presence if they actually do this isn’t going to help.”
In the end he said he doubted if any of the critics will “hop a plane” to Washington state.
Unless extended by one day, ballots will be counted Aug. 10 beginning at 5 p.m. Eastern Daylight Time, with results announced that day. The vote count will be live streamed via a link that will be provided on the OPA Website and in press releases.
Piatti had told the Progress in June that the committee was moving up the deadline for ballot return one day earlier than usual “to see if any ballots are dropped off Tuesday [Aug. 8]” at the dropbox at the police department, in which case these late ballots will be sent by FedX to Washington state for counting, he said.
He noted that Board Resolution M-06 says that the deadline for returning Ballot envelopes
for the election of directors “shall be prior to” the end of Association regular business hours on the Wednesday before the annual meeting of the members in August.
That language does not preclude the committee from moving up the deadline one day earlier than the traditional Wednesday, he said, because the deadline is still “prior to” the end of regular business hours on Wednesday.
M-06 also references the same deadline for electronic ballots, which the Board earlier this year decided to forgo in favor of paper-only ballots to be sent to each lot of record whose owners are in good standing.
That decision will allow the new vendor, Election Trust, of Bainbridge Island,Washington State, the opportunity to conduct what Elections Committee members had hoped will be a flawless, controversy-free election.
Already the late arrival of election materials means some degree of controversy, because the window for returning ballots to the vendor is a relatively short one.
Somewhat ironically, the shorter timeline would have been less of an issue had the committee and Board opted to continue last year’s experiment with on-line voting, which enabled OPA members to cast ballots avoiding the vicissitues of slow mail.
There is an expectation that on-line balloting
will resume next year, with paper ballots remaining in a “hybrid” approach to voting.
During the June 2 committee meeting, Piatti said that of the 8500 or so eligible lots in Ocean Pines, about 7800 are in good standing with paid up annual lot assessments and no established violations on record with the OPA’s Department of Compliance, Permits and Inspections.
Each of these lots will receive ballots, a departure of practice of recent years in which owners of multiple lots did not receive one ballot per lot.
Last year, such owners were told they had to request additional ballots from the OPA administration offices if they wanted to cast ballots for each lot owned, but it was an instruction that was not well communicated and thus some owners of multiple lots were to some extent disenfranchised.
The former Elections Committee tried to encourage mutiple lot owners to cast ballots electronically, but the message either was not received or many of these voters preferred to cast paper ballots in the usual manner.
Election results will be certified at the annual meeting of the OPA on Saturday, Aug. 12, if a quorum of at least 100 OPA members is present.
If no quorum is present, results will be certified by the old Board of Directors at the earliest opportunity in a special meeting called for that purpose.
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Members can participate virtually in annual meeting
Directors approve changes to Board Resolution B-03 to authorize ‘hybrid’ format
By ROTA L. KNOTT Contributing Writer
Qualified members of the Ocean Pines Association will be able to attend and participate virtually in the Annual Meeting. Just in time for the 2023 annual meeting of the association, the Board of Directors on July 15 approved on second reading changes to Resolution B-03, addressing procedures for virtual or hybrid meetings.
Eligible members, those in good standing having paid their annual property assessments and who do not have any outstanding property violations, will be permitted to attend virtually, can be counted towards a quorum, and fully participate in the meeting.
As of early July, the number of eligible participants is 7,781, with about ten percent of OPA members ineligible because they’re in arrears on annual assessments or are tied up in a dipuste with the Department of Compliance, Permitting and Inspections and/or the Architectural Review Committee.
Director Steve Jacobs offered a motion to approve the changes to Resolution B-03, which were recommended by the Bylaws and Resolutions Committee.
While this matter had been previously discussed and considered by the prior Board in 2022, there was no further action at that time. With the 2023 Annual Meeting coming up in August, it resurfaced in April with a first reading of the changes.
Resolution B-03 requires that the general manager report to the Board that the capability exists for only qualified members attending virtually to be counted toward a quorum, to vote and to fully participate in the meeting. The Board deferred further action on the resolution to give General Manager John Viola time to investigate the issue and provide a solution for verifying the status of members participating virtually this year. With that confirmation from Viola in hand, the Board voted to adopt the revised Resolution B-03.
OPA President Doug Parks said the technology in which the association has invested allows for virtual and hybrid meetings and that provides eligible members the opportunity for full participation at the annual meeting.
The resolution states that to hold a virtual meeting or a hybrid meeting the equipment or system must permit any member, Board member or committee member in attendance to hear
and be heard by all others participating in the meeting. A link or instructions on how to access the virtual meeting will be included in the notice of the meeting. Any member attending a virtual meeting will be deemed present for quorum, voting purposes and full participation, as applicable in the particular meeting.
The inability of a member to join a meeting due to technical difficulties with their telephone, computer or other electronic device does not invalidate the meeting or any action taken at the meeting.
Any matter requiring a vote of the association members at the meeting may be set by the OPA president for a vote at the virtual meeting. The resolution allows for a ballot to be delivered to members with notice of the meeting.
Members who are not present at the meeting may vote by electronic transmission, vote by proxy, and be considered present for quorum purposes through their proxy.
The resolution states that the OPA President may set a “reasonable deadline” for return of a ballot to the association, including return by electronic transmission, but the deadline for return of the ballot will be not later than 24 hours after the conclusion of the meeting.
August 2023 Ocean Pines PROGRESS 7 OCEAN PINES
8 Ocean Pines PROGRESS August 2023
Ethics/conduct vote tabled for next Board
Farr suggests revised B-08 resolution isn’t necessary
By ROTA L. KNOTT
Contributing Writer
Asecond reading of a revised Resolution B-08 on ethics and conduct of members the Board of Directors was tabled during a July 15 meeting pending a review by legal counsel. Only Director Steve Jacobs opposed tabling the motion for approval.
Director Colette Horn offered a motion to approve revisions to the former Resolution 8-08, Director Ethics and Conduct, as a policy statement on the principles of ethics and conduct to guide directors in the carrying out of their roles on the Board.
The resolution was repealed in 2021 on the recommendation of former Director Frank Daly. Director Doug Parks, presiding over his last monthly meeting before terming out as a Board member, said he agreed in concept with the resolution but argued that it was not appropriate to approve it with an election pending.
He said action should be postponed out of respect for the three new Directors who will be seated in August.
“They are going to have to live with it,” he said, adding, “I’d rather just wait.” He suggested keeping it on the agenda and letting the new Board
address it in the future.
It may hit some turbulence after the next Board reorganizes, however.
Ocean Pines Association Vice-president Rick Farr, rumored as the likely new OPA president after this year’s Board election, told the Progress after the July 15 meeting that he didn’t think a revived B-08 deserved an affirmative vote.
“It’s not necessary,” he said.
Whether than means the issue won’t come up for a vote after the new Board reorganizes later in August remains to be seen.
Jacobs seems like he might be someone who would be inclined to ask for a vote. He didn’t agree with Parks’s argument as a reason to delay action during the July 15 meeting, saying there are new Board members every year.
“That in and of itself should not act as an impediment [to a vote],” he said.
Jacobs said he was concerned about pushing off approval of the resolution.
He said the Board and By-laws and Resolutions Advisory Committee had dedicated four to five months work to developing the resolution and the Board should vote on it.
Any Board can revisit it in the future if it wants to do so, he added.
Parks wasn’t buying Jacobs’s argument.
“We’re talking about three new Board members,” Parks said of the upcoming election, adding that the addition of that many new directors could sway the Board majority and the outcome of a vote.
As background on the motion, Horn said this update to the resolution came about as a result of discussions in recent Board meetings regarding issues of confidentiality and conflicts of interest that are not appropriately addressed in other governing documents.
The Board had agreed to pursue revisions to Resolution B-08, which had been rescinded in May of 2021 due to concerns about enforceability of the resolution.
The previous resolution when it was activated was the source of much division on the Board.
Attempts to remove directors under its pro-
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Ethics resolution
From Page 8
visions were tried but iltimately failed.
Former Director Frank Daly presented a motion that killed it, perhaps with the expectation that a revised version might be presented at some point.
Horn said the language included in the document is consistent with other codes of ethics.
She said the content and wording of the document is based on research policies that are standard for not-for-profit entities such as HOAs.
But when asked by Board members whether the resolution had been reviewed by OPA legal counsel, she said it hadn’t been.
Farr said that OPA general counsel Bruce Bright texted him during the meeting and advised that the resolution should not be approved until he (Bright) had a chance to review it.
If ultimately approved, the resolution calls on Board members to place the interests of the association above those of individual association members when conducting OPA business.
They should “always act within the authority given to them by association members, the governing documents of the Ocean Pines Association and the State of Maryland when conducting association business,” the draft resolution says.
Directors are to supposed to respect the use parliamentary procedureduring meetings and to abide by the Board’s decisions, even if they disagree with them.
The proposed resolution also says directors should promote the goals and interests of the Association “in a constructive manner and attempt to avoid promotion of unnecessary conflict among association members, promote responsible management of the association’s finances and promote uniform enforcement of the governing documents.”
The proposed resolution says directors are responsible for protecting the personal information of colleagues or their family members that has been designated confidential, personal information of association employees, and results of disciplinary actions involving association employees.
It states that information or opinions concerning legal disputes in which the association is or may be involved in must be kept confidential unless receiving the prior written approval of legal counsel.
Ocean Pines hires police chief, first day anticipated for Aug. 1
Tim Robinson replaces Leo Ehrisman, who resigned recently after a six-month paid administrative leave of absence
The Ocean Pines Association on July 21 announced the hiring of Tim Robinson as Ocean Pines’ new chief of police.
General Manager John Viola said he expected the new chief to begin work Aug. 1.
Robinson replaces Leo Ehrisman, who resigned recently after a six-month paid administrative leave.
As chief of Police, “Robinson will be responsible for overseeing and managing the Police Department’s operations, ensuring the safety and security of Ocean Pines homeowners and residents, and fostering positive relationships within the community,” according to an OPA press release.
Robinson brings more than 30 years of experience in law enforcement, having served in various leadership positions throughout his career, including most recently with the Wicomico County Sheriff’s Office.
Robinson expressed his excitement for the opportunity to serve Ocean Pines.
“I have been able to serve my community for over 30 years and I cannot imagine a better place to continue that service than Ocean Pines. The Association of Ocean Pines is a vibrant and exciting community to work with, and I am both incredibly honored and excited to have been selected to lead the Ocean Pines Police Department,” Robinson said.
Ocean Pines General Manager John Viola expressed his enthusiasm for Robinson’s appoint-
ment.
“We are excited to welcome Tim as our new chief of police. His extensive background in law enforcement, leadership skills, and dedication to public safety makes him the ideal candidate for this important role,” he said. “We have full confidence in his ability to lead our police department with professionalism, integrity, and a strong focus on community involvement.”
Robinson brings more than 30 years of experience in law enforcement, having served in various leadership positions throughout his career, including most recently with the Wicomico County Sheriff’s Office.
The announcement of Robinson’s hiring actually leaked with a disclosure on the Residents Oversight community Facebook in a post by Amy Peck, a former OPA director.
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Clifford reviews election docs, says she’s still waiting on emails
Five more ballots discovered for Amy Peck, which would reduce Rakowski’s margin of victory in 2022 contest to ten
By TOM STAUSS Publisher
After months of delay, the Ocean Pines Association on June 28 finally accommodated the request of the founder of the Residents Oversight Community
(ROC) Facebook page for access to some documents related to the 2022 Board of Directors election.
ROC founder Sherrie Clifford and two associates reviewed ballots and the outer envelopes that contained them.
For several hours they counted ballots, with OPA President Doug Parks and IT ManagerKeith Calabrese witnessing the count.
Clifford reviewed ballots that were grouped in batches of 25, with a cover sheet containing the vote
count for each batch. In one instance the cover sheet indicated 50 ballots, but there were only 25, she said.
The vote for candidate Amy Peck was under-counted by one in five of the bundles, resulting in a pick-up of five votes for her relative to the official count, Clifford said.
That brought the margin between Peck and third place finisher Monica Rakowski to ten votes, still one of the closest if not the closest election results in the history of OPA Board elections.
While the ballots and outer envelopes were provided without incident on the day of the review, a process she described as professionally handled by staff, Clifford said the OPA is still stonewalling her request to review Board and staff emails related to the 2022 election.
“I don’t know why they’re continuing to stonewall us on the emails,” she said.
She first made a request for Board emails related to the election last fall, with a formal letter from her attorney this past February.
She said that she is aware that other OPA members have requested and have received copies of emails on a flash drive, and she wonders why she is being treated differently.
Clifford said her attorney is continuing to press the OPA for the emails.
Not so, OPA attorney Bruce Bright told the Progress in a July 27 email.
“I have not received any communications (since the June 28 inspection) from Ms. Clifford or her legal counsel (Adam Ruther of the Baltimore Firm Rosenberg Martin), regarding any issue or concern related to her record request or the June 28 record review,” Bright said. “So far as we are concerned, the record request has been satisfied and the matter is closed.”
Before the June 28 review, OPA Director Rick Farr said that Clifford would not be permitted to bring anyone with her to the session, but neither Parks nor OPA staff protested when she brought two associates with her. Parks and Calabrese witnessed the ballot and envelope inspection without incident,
Farr had also said he thought Clifford should be billed for the OPA’s legal expenses associated with the run-up to June 28, but that also has not occurred.
The Progress has been told that Bright has concluded that billing Clifford for the OPA’s legal expenses
To Page 13
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Pools back to ‘normal’with 38 guards on staff
Viola credits Aquatics Director Kathleen Cook with an assist by OPA Marketing and Public Relations Department
The Ocean Pines Association’s pools were fully staffed beginning Memorial Day weekend with all pools operating normal hours, General Manager John Viola told the Board of Directors on July 15.
Viola said Aquatics currently has 38 lifeguards on staff. He said that is within the normal range of 35 to 40 lifeguards.
Last year due to hiring challenges, there were just 24 lifeguards on staff with OPA, resulting in pool clo-
Election docs
From Page 12
was not appropriate.
Staff time needed to produce the documents, however, are permissible
The June 28 date was chosen by Clifford after a number of other options were presented to her by staff through her attorney.
Clifford has said that she never should have had to hire an attorney to get a response to her document request. The attorney has been on the job since February on Clifford’s behalf.
“It simply took too long, too much stonewalling.” she said, and she’s still waiting on the emails.
In an email to the Progress, Bright said the June 28 date was selected through Clifford’s attorney “but not until the day before that – on June 27. We nonetheless agreed to make the records available for inspection on that short notice.”
Bright said that certain conditions and parameters were established ahead of that inspection, most
sures and reduced hours. He praised Aquatics Director Kathleen Cook for the turn-around, with the help of the OPA Marketing and Public Relations Department
Through the second week of August, Viola said the pools should be able to operate normal hours. That’s when the college and high school sports students return to school and the OPA starts to lose lifeguards providing coverage at the pools. This has been the pattern for years
Meanwhile, Viola said the Aquat-
notably that Clifford could inspect, but would not be allowed to retain copies of, OPA members’ ballots or ballot envelopes. “This was to protect the privacy of members’ votes,” he wrote.
Other conditions/parameters for the inspection related to the duration of the inspection, who would be present, removal of the records from the inspection room, the sequence of the inspection, and charges to be paid for the administrative time involved on the part of OPA staff and for copies requested by Clifford.
Ms. Clifford and her legal counsel agreed to proceed with the inspection (on June 28) in conformance with the conditions and parameters established by OPA, Bright said “The inspection occurred and was completed on June 28 – Ms. Clifford was there with two other people. Her legal counsel was not present. The record review began at 10 a.m., and Ms. Clifford completed the review at approximately 1:45 p.m., well ahead of the pre-established end time (which was 4 pm).” Bright was not present during the review.
ics staff can fully support the Ocean Pines summer camp and Family Fun Night events.
He did note that during the week of May 29, the Swim and Racquet Club pool was closed for two days and Mumford’s Landing pool was closed on two different days. All other pools operated normal hours. During the week of June 5, the Mumford’s Landing pool was closed two days, but all other pools operated normal hours.
Every other week so far this season all pools operated at normal hours.
This summer, notifications of the pool operating house have been sent by the OPA to more than 9,000 people in a weekly e-blast.
The notices have also been posted on the door of each pool, the OPA’s Website in both the News and Aquatics sections, and on OPA social media, including the Aquatics and OPA Facebook pages.
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Doug Parks revisits seven-year roller coaster ride as an OPA director
Accomplishments far outweigh the negatives for retiring president
By TOM STAUSS Publisher
Doug Parks’s seven years as a member of the Board of Directors coincides with the roller-coaster history of Ocean Pines during that period.
The lows were turbulent and divisive, the highs as full of achievement as they possibly could be. Fortunate for Parks and the Board, he’s leaving at a high pointamenities are profitable and functioning well, the general manager is universally well regarded, and Ocean Pines Association finances have never been in better shape. Board members relations, often frought during those seven years, have improved.
Parks may be leaving the OPA presidency and the Board, but he’s not going to be fading into the sunset, to be seldom heard and seen, as often happens with retired directors.
He is likely to resurface as a member, perhaps even as
chairman, of the Budget and Finance Advisory Committee, should recently reappointed member Dick Keiling not want the job.
In a recent interview, Parks looked back on his seven years as a director, the first year appointed and four of the seven as president. One year he served as OPA treasurer, a largely ceremonial position.
This past year as president he’s been part of a functioning Board majority that, when it votes together, as usually happens, has been able to prevail on issues where there’s been division on the Board.
Parks commented on the somewhat peculiar nature of Ocean Pines, a community run by a homeowners association.
“Ocean Pines is a municipality disguised as an HOA,” he said. “Maybe a comparison to a small town would be appropriate. We’re more than 50 years old, and we’re not going to be built out much further. At least we don’t have to develop plans for further growth.”
The challenges facing the community have much to do with replacing aging or outmoded facilities, such as the southside firehouse or the golf course irrigation system, Parks said.
“Management in the guise of a very competent general manager and a functional Board are in place to manage those challenges,” he added.
It was not always that way. Parks began his service on the Board at the tail end of the Bob Thompson era and beginning of the calamitous Brett Hill era.
Thompson’s tenure had ended the year Parks was appointed to the Board, and Brett Hill, a charismatic director who had been elected to the Board, was appointed interim general manager by the newly reorganized Board.
“He was a younger guy, seemed to have good ideas, but over time his approach to the role of interim general manager changed,” Parks said. “He became more heavy-handed over time, and it seemed like he was getting comfortable in his dual role as acting GM and director.”
But Hill’s actions as GM were contentious, and that contentiousness “permeated the Board at the time,” Parks said and extended out into the community.
Budgeting for the amenities, particularly the Yacht Club, became one of the flashpoints.
“Hill was into top down budgeting, and he started his first year [as acting GM] deciding there would be no assessment increase,” Parks said. “He used overly optimistic revenue projections for the Yacht Club in particular, and then came up with a 20 percent discount promotion in the hopes it would stimulate enough sales to meet those overly optimistic projections.”
Hill also inaugurated a fine dining program for the Beach Club in Ocean City, an idea that, charitably, flopped and turned what normally is a profitable amenity into a losing one.
“It became readily apparently we were headed in the wrong direction,” Parks said, citing then directors Cheryl Jacobs and Pat Supik, the OPA treasurer, for their prescience in sounding the alarm. “Brett fell out of favor with the Board at the time, his judgment and tactics questioned, and it became apparent he wasn’t the right fit as acting GM.”
Parks said that pressure from the community and Board members forced Hill to resign.
That was followed by a search for a replacement led by a national executive search firm, Novak Consulting Group, with a condominium manager from the Washington, D.C. area, John Bailey, hired as the new GM, to deal with a very poor financial situation.
That didn’t really work out either.
“John Bailey was good in some ways, but his budget preparation was not ideal,” Parks said. “It, too, was top down, without much staff input.” Finances continued to be poor, although Parks said there were glimmers of better days to come through the efforts of the budget and finance committee, then chaired by John Viola.
“We let Bailey go, and asked Viola to step in as an interim GM for six months,” Parks said. “John accepted and immediately began to put in policies and procedures that began to get our financial house in order.
“His expertise in financial management was an immediate plus,” Parks said. “He hit the ground running, instituted a multi-year plan to offset a large deficit at the Yacht Club, and what he did
14 Ocean Pines PROGRESS August 2023 OCEAN PINES To Page 16
Ocean Pines Association Vice-president Rick Farr, right, presents a plaque commemorating Doug Parks’s seven years of service as an OPA director, four of them as president. The presentation was made during the Board’s July meeting held at the Ocean Pines Yacht Club.
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Doug Parks
From Page 14
was the basis for where we are today.”
Parks recalls that when he first ran for the Board his platform included a statement that the OPA “had proven that it didn’t have the core competence to run food and beverage operations.”
Viola and certain directors agreed, and the decision was made to solicit proposals from outside vendors to manage the Yacht Club and Beach Club. Viola by then had his contract extended and he and the Board decided to hire the Matt Ortt Companies over a proposal from a former Yacht Club manager.
“We spent a great deal of time on that first contract with MOC,” Parks said. “A problem with in-house management is that the staff had no motivation to make money. I pushed the idea that an outsider contractor needed to have incentives, particularly a bonus structure where both the contractor and the OPA would benefit from outstanding performance.”
Parks said that Matt Ortt and his business partner, Ralph DeAngelus, were very open to the idea of a bonus structure that would reward operational success.
“Matt and Ralph knew how mismanaged it had been, and had the experience of running successful restaraurants,” Parks said. “They said ‘We can make a go of it,’ and from day one they were headed in the right direction.”
One of the first initiatives was to install a new entrance to the ground level restaurant and to refurbish it, leaving the ornate entrance at the front of the Yacht Club as the access to the second level banquet facilities. Steps were made immediately to resuscitate the OPA’s battered wedding and banquet business.
“Hiring the Matt Ortt organization was the best decision this organization has ever made, along with the hiring of John Viola as general manager,” Parks said. “I thank John for his financial and operational expertise. His presence and the hiring of Matt Ortt complemented one another, and together they turned this organization around.”
That improvement was measurable, turning what had been an operating fund deficit of $1.6 million into today’s robust surplus, including two consecutive fiscal years of $1 million-plus operating fund sur-
To Page 18
16 Ocean Pines PROGRESS August 2023 OCEAN PINES
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Doug Parks
From Page 16
pluses.
“But our reserves are also in excellent shape, to where we can handle some major expenses that we might be facing in the nearer term,” Parks said.
If hiring Viola and MOC were the top two accomplishments of the Board during Parks’s tenure, he’s also proud of the fact that the OPA managed to bring competition to the Internet/cable television market-
place.
“First we renegotiated the Mediacom contract so that competition would be allowed,” Parks said. “Once the way was cleared for non-exclusivity, we were able to negotiate a contract with Comcast” for a new high-speed Internet and cable television network in Ocean Pines.
He also cited a new golf clubhouse to replace the aging Country Club and a renovated, expanded police department as important accomplishments during his term.
While Parks prefers to accentuate
the positive, he acknowledges that his seven years as a director was no walk in the park at times.
While he said he was “proud and humbled” by the fact that he was elected president last August by his colleagues, he recalls the two years before this current term when others served in that role -- one year Larry Perrone followed by Colette Horn after that. Those were contentious years, when Parks often found himself at odds with a Board majority.
When asked to identify situations
410-208-0707
and decisions that didn’t go well during his seven years, Parks says he wishes he had acted sooner to pressure Hill to resign rather than give him more to make misstakes that cost the OPA.
He also called the way the then Board majority handled the disqualification of the Rick Farr candidacy and the resulting litigation that was triggered by it a “fiasco. It showed that we needed better language in our governing documents” and that certain directors interpreted the governing documents “in ways that to me seemed personal,” designed to keep someone disliked by the majority off the Board.
Parks also noted the poor relations he had with former Director Slobodan Trendic, who several years ago opposed plans for the new golf clubhouse unless it was approved by property owners in a referendum. Trendic also led an effort to lower the Board’s capital spending authority to $1 million, a measure that passed by a two to one margin over the objections of Parks and other directors at the time. The petition effort to take the clubhouse proposal to referendum had failed to collect the required number of signatures.
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“I didn’t agree with it [the $1 million limitation] but it was a legitimate issue,” he said. “And OPA members had the final say.”
He said he had “no regrets” for contentious relations with Trendic while acknowledging that the former director “did have a lot to offer” the OPA during his tenure.
Parks said that in the corporate world, ‘you will always find people that you work with but don’t necessarily get along well with” on a personal level.
“You need to work with people you don’t necessarily like,” he said. “You need to put the organization first.”
Personality conflict also rose to the forefront when the Board majority in the previous term voted to suspend access to food and beverage amenities for former dirrector Tom Janasek, Parks said.
“It was very clear, just as in the Farr candidacy issue, that a Board majority was hellbent on creating a scenario to penalize someone they didn’t like,” Parks said. “They were trying to make sure he couldn’t be elected” if he decided to run again.” Janasek resigned rather than try to persuade a Board majority not to toss him from the Board.
“It was all personal,” Parks said of incidents involving Janasek. As
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OPA Board honors outgoing directors
The Ocean Pines Association Board of Directors took a moment during their Saturday meeting to honor and express gratitude to three outgoing Board members for their service.
Vice President Rick Farr presented commemorative plaques to Doug Parks, Colette Horn, and Frank Daly, acknowledging their significant contributions to the community.
Parks, the current Board President, and Horn, a past president, will be stepping down from their positions in August because of term limits. Parks served seven years, Horn six.
Frank Daly, the former Vice President, resigned in June following a relocation to Florida.
Collectively, they have dedicated nearly two decades of time and effort to the OPA Board, with Parks serving for seven years, Horn for six years, and Daly for five years.
“On behalf of the current Board and the members of our Association, I would like to present you with this plaque in recognition for your outstanding dedication to our OPA community as a director, president, committee member, and liaison. Your dedication to service is recognized and truly appreciated. Thank you,” Farr said.
Farr emphasized the importance of recognizing the contributions made by volunteers, and he expressed his gratitude to the honorees for their
service to Ocean Pines.
“I think it important to recognize Doug, Colette, and Frank for taking the time for the countless hours in volunteering their service to our OPA community. Volunteering in this capacity allows Colette, Doug, and Frank to have a sense of purpose and to connect to the community and make it a better place. ‘
“Moving forward, this current board and future boards will ensure that we recognize those that voluntarily serve our community in the capacity as a director or committee member,” he said.
Farr later said he thought Horn may have been somewhat apprehensive as the plaques were given out, perhaps because he and Horn often clashed during their time together on the Board.
In addition, she was part of the then Board majority that determined Farr was ineligible to run for the Board and serve as a director. It took a lawsuit to overrule that judgment and make Farr a director. He’s the odds-on favorite to succeed Parks as OPA president.
But Farr said that differences aside, he felt it appropriate to honor her six years as a director.
“This was not the occasion to revisit old battles,” he said.
Doug Parks
From Page 18 for the effort to deny him access to food and beverage amenities, after a much publicized incident at the Yacht Club involving a former director, Parks said “we couldn’t legally do what the Board decided to do anyway.”
Parks said the majority effort against Janasek “cost us $48,000 in legal fees. Never should have happened.”
The retiring president said there’s always work to be done in an HOA, and he’s preparing a transition document to be given to the new Board that reorganizes after the annual meeting.
Items that remain on a to-do list include Jenkins Points restoration, a decision on amending restrictive covenants to impose additional regulations on short-term rentals, the pending replacement/renovation of the Southside firehouse, and additional improvements to Bainbridge Park.
The list also include improvements to cell phone coverage in Ocean Pines, and a vote on a proposed revision to Board Resolution B-08, with respect to director conduct and conflicts of interest.
20 Ocean Pines PROGRESS August 2023 OCEAN PINES
Retiring Director Colette Horn received a plaque commemorating her six years as an Ocean Pines Association director at the July 15 meeting of the Board of Directors.
Parks, Horn, and Daly each presented with plaques during July 15 meeting
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Board votes 4-2 to remove Peck from committee
Releasing news of police chief appointment before official announcement triggers decision, but constant criticism of Board was a factor
By TOM STAUSS Publisher
The Board of Directors in late July voted 4-2 to remove Amy Peck, an outspoken former appointed Ocean Pines Association director and current Residents Oversight Community podcaster, from her position as member of the Parks and Recreation Advisory Committee.
Appointed to the committee at the Board’s June meeting, her tenure barely lasted a month before she ran afoul of a Board majority that took exception to what they regarded as the premature announcement on the ROC Facebook that the OPA had appointed Tim Robinson as the new Ocean Pines police chief.
Voting to remove her in an e-mail vote were OPA President Doug Parks and directors Rick Farr, Monica Rakowski and Stuart Lakernick. Opposing the termination were directors Colette Horn and Steve Jacobs, with Horn objecting to the fact that the action was taken in an email vote, Jacobs told the Progress.
“I didn’t support that either,” he said, citing Board procedure that is supposed to limit Board action by e-mail only when all seven directors agree to conduct business that way. Horn and Jacobs dissented, but Jacobs noted that “it’s not bragging if you can do it, and four directors did do it.”
In an email to Peck, Parks cited a letter sent to her by OPA General Counsel Bruce Bright and actions the attorney referenced in his letter, particularly what OPA officials regarded as the unauthorized announcement of Robinson’s appointment.
“We do not take this decision lightly as an important aspect of the Association are the volunteers who serve the community,” Parks wrote, who quoted Board Resolution C-01: “While specific missions and tasking will be provided for committees, committee members are encouraged to use their initiative and to make recommendations to the Board on any matter or issue within the committee’s purview which will enhance the management and function of the Association.”
Parks said the Board majority agreed that actions recently taken by Peck were not consistent with the “notion of enhancing the Association.”
While he said that she is “certainly free” as a member of the Association to express her opinion on any issue “as a member of an advisory committee, you are held to the standards noted in Resolution C-01.”
Peck fired back at Parks’s email, disputing that she “used any past or present position to obtain information.
“The accusation ... is completedly false,” she said, adding “If Mr. Viola wishes to keep information from leaking, I can assure that sound diffusers are not the answer.”
She said she stood by “the factual information” that she released on the ROC Facebook Page “and will continue to enhance the OPA through my other volunteer efforts and by using my voice to inform residents.”
The day before she received the email from Parks, Peck received a letter from Bright detailing actions that put her committee appointment in jeopardy.
Bright wrote:
“You are a (recently appointed) member of the OPA Recreation and Parks Committee (“the Committee”), serving (as I assume you are aware) at the pleasure of the OPA Board. See OPA Bylaws, Section 10.03. You are subject to removal from the Committee, with or without cause, at any time, by ac-
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tion of the OPA Board.
“The Board is aware that you have publicly disclosed (on Facebook) non-public personnel-related information concerning the OPA’s prospective hiring of a new Chief of the Ocean Pines Police Department (“OPPD”).
committee membership and/or your prior (appointed) Board position, eliciting information from him regarding what has been and remains a non-public OPA personnel matter.
to your public commentary, and to remain within appropriate limits in that regard, as compared with other OPA members who do not hold OPA positions.
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“By the nature of your statements on Facebook, it is apparent that, while making the statements, you understood the non-public nature thereof, but proceeded to post the information notwithstanding that awareness.
“You alluded in your public statement to ‘multiple reliable sources’ that purportedly confirmed what you published as the hiring decision, indicating your apparent probing of this non-public OPA personnel matter.
“You did not seek, much less obtain, any permission or authorization from John Viola or the OPA Board to comment publicly on what is presently a non-public OPA personnel matter.
“My understanding further is that you initiated contact with Tim Robinson, perhaps identifying yourself with reference to your current
credit rating of a security is not a recommendation to buy, sell or hold the security and may be subject to review, suspension, reduction or withdrawal at any time by the assigning Rating Agency. Insurance pertains only to the timely payment of principal and interrepresentation is made as to any insurer’s ability to meet its financial commitments. Ratings and insurance do not remove market risk since they do guarantee the market value of the bond.
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“Your conduct as described above is contrary to the best interests of the OPA; it constitutes improper interference with OPA operations (more specifically, personnel-related operations and activities); it is disruptive to the orderly transition to a new OPPD Chief; it undermines the General Manager’s handling of this non-public personnel matter; and it is otherwise inconsistent with your duties and good faith responsibilities as a Committee member working on behalf of the Board (and OPA) in that capacity.
“To be certain, as a member of the OPA, like any other member, you are free (within the bounds of what is legally proper) to comment publicly about OPA affairs and activities.
“However, your elective conduct in that regard, especially if irresponsible and/or inaccurate, could adversely bear up” on your status as an OPA Committee Member, for the reasons stated above.
“And the OPA Board is entitled, in light of your position as an appointed OPA Committee Member, to expect you to exercise greater discretion as
“The purpose of this letter is to: 1) reinforce that, whether or not you have engaged in any, all, or some of what is stated above, you serve in your Committee position at the pleasure of the Board, which can remove you from your Committee position for any reason and at any time before the expiration of your term;
“and 2) direct that, in light of the Committee position that you still have as of this day, you are to refrain from further probing and commenting publicly on any non-public OPA matters, or otherwise interfering with the orderly affairs and activities of the Board and the OPA administration.
“Also, it is my understanding that, in connection with the “podcast” you produce, edit, and host with Sherrie Clifford, you have made statements about OPA affairs and activities that are factually inaccurate and/or are critical of the OPA Board, staff, and/ or contractors. I am not seeking to engage with you, on a point-by-point or other basis, as to the substance and/or nature of those podcast re-
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Board asks for rewrite of charging document
By ROTA L. KNOTT Contributing Writer
The Aquatics Advisory Committee’s request that the Board of Directors review the process for admitting customers into the pools was sent back to the committee because of a potential conflict with the Ocean Pines Asso-
Aquatics committee draft runs into headwinds
ciation’s charter.
The Aquatics Advisory Committee asked the Board to allow aquatics members to be admitted to the pools ahead of anyone paying the daily resident rate, including those who may be in line ahead of members. The committee also wants to require anyone who lives in Ocean
Pines to show their resident cards to gain entrance to the pools at the reduced resident rate.
The charging document was presented for consideration by Committee Board Liaison Stuart Lakernick. However, any Board review was postponed and instead Directors sent it back to the committee, say-
ing the proposed changes with respect to the treatment of shor-term renters may not be permitted under OPA’s governing documents.
The OPA currently offers shortterm renters use of the pools at the same daily rate as property owners and long-term renters.
The committee doesn’t want short-term renters to be given the same rate as property owners or long-term renters.
The committee argued that in order to enhance the value of purchasing a pool membership, the aquatics members should be afforded the opportunity to enter the pool ahead of non-members.
The change would apply when
To Page 29
Amy Peck
From Page 24
marks. But this letter is to further advise you that such irresponsible commentary by you, from the standpoint of the Board, does not advance the interests of OPA or its members, and therefore (like your public commentary as to non-public personnel matters) bears on whether the Board will continue to permit you to serve on the Recreation and Parks Committee (or any other committee). In this regard, too, you should govern yourself accordingly,” Bright concluded.
Jacobs told the Progress that he objected to the majority action because he doubted that anything that Peck said on a podcast “was all that serious,” adding that “we engaged in a selective prosecution” in the action against Peck.
Jacobs noted that two members of the Aquatics Advisory Committee recently got into hot water for comments they made in a committee members “but were not removed.” Instead, they were allowed to remain as committee members after a discussion with Farr, the OPA’s vice-president, and Stuart Lakernick, the committee’s Board liaison.
“Why wouldn’t you do the same with Amy?” Jacobs said.
Director Rick Farr told the Progress that in the case of the Aquatics committee the chairman apologized for the negative tone, while Peck has proven that she will never apologize for her strident criticism of Board positions.
26 Ocean Pines PROGRESS August 2023 OCEAN PINES
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Aquatics committee
From Page 26
the pools are at maximum capacity and a spot becomes available. Membership should count for more than just a small discount, the committee argued.
Due to a reported shortage of lifeguards and staff, which has not occurred this summer because of a successful hiring campaign by Director of Aquatics Kathleen Cook and OPA Public Relations, pools last summer were on occasion not open or operating with reduced hours.
According to the committee, this often causes the pools that remain open to have long lines and become full to capacity. When this occurs, the committee suggested the priority order of admission to be pool members, then non-member residents, non-residents and finally short term renters.
Currently anyone renting a property in Ocean Pines short term can pay the property owner day rates if they show a phone screenshot or document confirming their rental agreement. Otherwise, they have to pay higher daily rates.
The committee said proper enforcement is also issue.
“The current staffing challenges are causing the pools that remain open, especially the Yacht Club pool, to reach capacity earlier and more frequently. That in turn causes some pool members to be shut out.
“Our suggestion is that the Board consider giv-
ing those who have purchased a pool membership the added benefit of gaining entrance to the pools ahead of non-pool members who are paying a daily rate, including those who may be in line ahead of them.
“Why should the short term renters have the privilege of the homeowner rate? Either stop giving short term renters the resident rate or, at the very least, require they show proof that they are renters,” the committee said in the charging document to the Board.
Another issue identified by the committee is that the OPA may be losing income when customers claim to be residents pool in order to get a lower entrance but really are not. Ocean Pines residents do not see any benefit to paying for a membership when they are not allowed to enter the pools ahead of non-members, the committee contends.
“All those entering the pool as OPA Homeowners (and given the homeowner rate) should be required to show their OPA card to receive that rate,” the committee argued. A caveat could be added that out-of-town guests who are visiting a homeowner may use their card to gain entry.
The golf course requires that homeowners show their cards to get the reduced golf rate and this should be enforced across all amenities to ensure that only homeowners are reaping the benefits of the amenities that they pay for in their annual assessment fees, according to the committee’s charging document.
Disbanding and donating
The Delmarva Hand Dancing group recently dissolved their chapter and decided to close out their account by donating all remaining proceeds to the Worcester County Veterans Memorial Foundation. Veterans Memorial Foundation Executive Director Marie Gilmore said the donation would help support education programs of the foundation. To donate to the Worcester County Veterans Memorial Foundation, email Gilmore at opmarie@aol.com or visit opvets.org. Pictured, from left, are Carol Lee Bell, Charlie Bell, Marie Gilmore, and Delmarva Hand Dancing Secretary Diane Denk.
August 2023 Ocean Pines PROGRESS 29 OCEAN
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Aquatics Committee wants faster progress on maintenance issues
Lakernick downplays criticism, says panel has moved on
By ROTA L KNOTT Contributing Writer
After learning that a mobility-challenged swimmer was stuck in the Swim and Racquet Club pool for a short time because the handicapped accessible pool chair was broken, the Aquatics Advisory Committee wanted to make sure that the equipment is being properly maintained.
Committee members have suggested that structural improvements may be necessary to ensure lifeguards working at the Ocean Pines Association’s pools can assist people in getting out of the water when equipment break-downs occur.
During the committee’s July 10 meeting, Committee Chairman Gary Miller brought up the incident in which a swimmer used the handicapped accessible chair to get into the pool, but then something happened to the chair.
“The chair wasn’t functioning properly, and they couldn’t get back out,” he said.
The swimmer opted to stay in pool and wait for someone to come and repair the chair, which took 15 to 20 minutes, Miller said. But, if the chair wasn’t able to be repaired quickly, the lifeguards
may not have been able to carry the person out of the water because of the narrow width of the pool stairs, he said. Miller called the stairs narrow, rickety, and dangerous.
Committee Member Em Hench said the stairs have been a safety concern for years. She agreed that the stairs are narrow and said children play and congregate on them, making it hard for swimmer who are mobility challenged to get in and out of the pool.
Committee Member Steve Ransdell said the OPA needs to ensure it is complying with the American with Disabilities Act compliance so people who need assistance can get in and out of the pool. He said if the lift chair doesn’t work there has to be a Plan B.
Committee members agreed that a wider, more stable set of steps may be a solution to these issues.
The committee’s July meeting agenda included an outgoing list of maintenance and repairs that it is tracking. Those projects were a broken gate at Mumford’s Landing Pool and a bare pipe without a shower head in the ladies locker room, both of which were repaired.
The committee listed several repairs as having no progress being made, including a rusted file cabinet in the Sports Core Pool, a cement pad around the Sports Core Pool that is cracked and flaky, the steps into the pool at the Swim and Racquet Club.
The steps are on hold until the end of the summer season.
Maintenance of aquatics facilities was on the mind of committee members during their June 21 meeting as well. They discussed on-going safety issues, including the steps at Swim and Racquet Club Pool and a cracked outdoor surface at Sports Core Pool. At that meeting the group discussed taking a pool tour to assess need for safety improvements.
Committee Board Liaison Stuart Lakernick said the criticism by some committee members of the pace of fixing maintenance issues has been overblown. And it’s not all about complaints, according to Lakernick. He noted that the committee is very impressed with the fact that Aquatics Director Kathleen Cook has been able to reach a full complement of guards for the summer.
“We’re moving on,” he said of the maintenance issues, adding that “we’re having good discussions about possible tweaks to aquatics memberships and options, including the possibility of a attractively priced weekly membership for guests of OPA members who aren’t prepaid annual or seasonal aquatics members. A special rate for grandparents is also under consideration,” he said.
August 2023 Ocean Pines PROGRESS 31 OCEAN PINES thru Oct. 27 10-27-23
New golf course irrigation system in design phase
Viola anticipates funding request in next year’s budget
The design of a new golf course irrigation system is proceeding, General Manager John Viola said during his July 15 report to the Board of Directors.
At a cost of $20,550 for the design phase, the Ocean Pines Association retained the firm Hydro Designs to layout the entire design system, Viola said. The design work covers everything that will be put in the ground such as pipe, wire, valves, heads, controllers, weather stations, road crossings, lightning, and grounding.
Viola said the next step will be to solicit bids for the project. Additionally, he said the OPA is developing plans for a new pump station.
Also at the golf course, Viola said a historic gazebo has been restored by Public Works staff. With almost four decades of history, the gazebo’s restoration initiative took shape in response to feedback from the Golf Advisory Committee. The gazebo’s origins were traced back, by Don McMullen, to the inaugural Calvin B. Taylor Bank golf tournament that started 39 years ago.
Repairs to the gazebo included the railing and step as well as timbers replaced under the structure. All of the rafters were replaced and leftover materials were used to cover the roof.
A new cupola was ordered for the structure, which was power washed and screws were added to stabilize it.
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The iconic gazebo has been returned to its rightful place on the Ocean Pines golf course after extensive repairs completed by the Ocean Pines Public Works Department.
North Gate improvements continue
There will be no bridge closures during pending continuing renovations and maintenance of the North Gate bridge. General Manager John Viola said during a July 15 meeting that crews are working on replacing trim on the bridge and the prior week had rented a lift to work on the framing of the structure.
Turf Equipment has completed the repairs on the old North Gate pond fountain and was planning to deliver it the following week. Public Works crews will install it as soon as they receive it.
The OPA is waiting for pricing for a second foundation to be installed on the other side of the North Gate bridge, Viola said.
Other recent maintenance and renovation projects included construction of a shade structure for racquet sports. Repairs to the Platform Tennis Court #6 Fence are scheduled for August.
On the ballfield, an area Viola said is always wet, crews discovered two breaks in the water line.
One was an old break and the second was caused by a utility company.
He said the breaks were repaired with assistance from Worcester County and the area was backfilled.
At the Golf Clubhouse, directional arrows were painted on the parking lots and at the Beach Club the railing and handicap bench in the ladies room were repaired,Viola said.
Dashboard Update
Compliance, Permits, and Inspections of-
fice handled 127 new property violations that were initiated in June. Those included 66 for maintenance such as trash and grass cutting; 3 for dangerous trees; 21 for having no permit for an improvement; and 37 miscellaneous violations such as signs, stop work orders, trailers, unregistered or junk vehicles, and vehicle parking.
CPI had property owners comply in 73 cases during the month, but 221 remain open, including the 42 violations turned over to legal counsel for resolution.
During June the OPA had 147 new work orders initiated, including 6 for bulkheads, 31 drainage, 28 grounds or landscaping, 7 roads, 3 signs, and 72 general maintenance items.
Customer service calls totaled total 162 for the month, with 11 for CPI matters, 49 for amenities, 1 drainage, 84 general information, and 17 Public Works.
OCEAN PINES BRIEFS
Annual Meeting moved to Assateague Room
The Ocean Pines Association Annual Meeting has been moved to the Assateague Room of the Ocean Pines Community Center at 235 Ocean Parkway. The meeting is scheduled for Saturday, Aug. 12, at 9 a.m.
Previous announcements by the OPA had the meeting scheduled for the golf clubhouse meeting room.
Traditionally, the meeting has been held in the Assateague room.
As per Ocean Pines’ governing documents, members will be checked in to verify voter eligibility.
Members are urged to arrive at least 30 minutes early to ensure the verification process is completed prior to the meeting’s start time. Members will be required to provide a valid ID with a photo and name.
To make it easier for those who cannot attend in person, the Association will also allow hybrid participation during the annual meeting. A link is provided on the OPA Website.
Online attendees must use their Ocean Pines property address as their login name.
After logging in, users will be asked to show a valid ID on camera, and staff will verify the user is eligible to vote.
Online check-in will begin at 8 a.m. No users will be checked in after 8:45 a.m.
Members may participate and/or vote as needed, and votes will be tracked by members of the Ocean Pines Elections Committee.
All property owners of the Ocean Pines Association are urged to attend the Annual Meeting. However, only one owner of any numbered residential lot, condominium unit, or single-family attached dwelling,
who is eligible, may cast a vote.
Members desiring to present any items of business requiring member action are reminded to use the “Unfinished” or “New Business” segments of the agenda.
If a homeowner wishes to place an item on the agenda under New Business, they may do so ahead of time by emailing directors@oceanpines.org by Aug. 10.
Verizon doing cell tower upgrades
Ocean Pines motorists should expect slight delays for the next few weeks because of infrastructure work by Verizon contractors.
Construction is expected to last through Aug. 8 and focus on the area of Ocean Parkway, from Terns Landing to Route 90. The work is related to micro-cell towers along Route 90. Dropped cell phone calls are frequent on Ocean Parkway in this area.
Drivers are asked to be aware of work zones and obey flaggers, as some temporary road closures may occur. A Verizon representative said traffic delays should be minimal and flaggers will be on site during each day of work.
For questions, email info@oceanpines.org or call 410-641-7717.
OPA offers ballot drop box
In response to the recent delay in members receiving their election ballots, the Ocean Pines Elections Committee is taking action to ensure the integrity and efficiency of the voting process.
To Page 34
August 2023 Ocean Pines PROGRESS 33 OCEAN PINES
The
Framing at the North Gate bridge recently was completed, with refurbished fountains next on the to-do list.
Board election
From Page 33
Elections Committee Chairperson Tom Piatti said the lateness is not associated with the U.S. Postal Service and that ballots should arrive this week.
“Homeowners should immediately return their ballot by USPS mail, as stated in the enclosed voting instructions,” he said.
To provide expedited local service, Piatti said the Association has set up a secure drop box at the police station, allowing members to conveniently drop off their completed ballots. Those ballots will be shipped to the elections contractor via overnight express mail.
“We recognize the importance of providing our members with a seamless voting experience,” Piatti said. “In light of the ballot delay, we are proactively implementing a drop box solution to allow our members to submit their ballots with ease.”
The drop box became operational on Monday, July 24.
Piatti added that the ballot receipt deadline to the Washington state elections contractor remains on Tuesday, Aug. 8.
Yacht Club voted ‘best wedding venue’
The Ocean Pines Yacht Club has once again secured the prestigious title of “Best Wedding Venue” in Worcester County, as declared by the readers of Coastal Style magazine.
This marks the third time in four years that the Yacht Club has received such recognition from Coastal Style readers. Ocean Pines’ venues were also honored for four consecutive years, from 2015 to 2018.
The consistent recognition of excellence underscores the dedication of Ocean Pines to provide unmatched experiences for couples on their special day.
The Yacht Club features a spacious ballroom with draped ceilings, a private bar, bridal suite, and a stunning waterfront view of the Ocean City
skyline, Katie Krynitsky, general manager of the Yacht Club, said.
“We are so humbled and honored to be recognized as the best wedding venue in Worcester County,” events manager Lia Isel said. “Our chef and staff truly enjoy creating fantastic food and atmosphere, and providing great service for the perfect wedding day for each and every couple.”
“From all of us at Ocean Pines Yacht Club, thank you again!” Krynitsky added.
For information on weddings at the Ocean Pines Yacht Club, visit www. opyachtclub.com/weddings.
Anglers Club to meet Aug. 12
The Ocean Pines Anglers Club will meet on Saturday, Aug. 12, at 9:30 a.m. at the Ocean Pines Library. The speaker will be charter boat Captain Bill Duncan who has been plying Ocean City waters for over 30 years and seen and experienced it all aboard his Islander and Islander II.
Also on the agenda are updates on fishing regulations and planned fishing trips. All are welcome.
Fourth of July
Ocean Pines Association General Manager John Viola said about 2,500 people visited the park for the annual Fourth of July carnival.
He made the disclosure during the July 15 Board of Directors meeting.
Inflatables by Fantasy World Entertainment were new this year and provided additional entertainment. Fireworks were provided by SkyShooter Displays by ZY Pyrotechnics from Pennsylvania, also a new vendor this year. The annual 5K race was canceled due to low participation.
The total cost of the annual holiday festival was $14,460. Gross revenue from the Fourth of July carnival was $6,000. Viola said it was a Team Effort to hold the event, with Recreation and Parks, Public Works, Ocean Pines Police, Ocean Pines fire Department, Worcester County Sheriffs Department and volunteers all supporting the effort.
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OPA records $12,000 surplus in June
By TOM STAUSS
Publisher
Having opened the 2023-24 fiscal year with a $150,000 operating fund surplus in May, the Ocean Pines Association came back down to earth in June with an $11,684 surplus, with weather a factor in the results.
According to the June financials posted by Controller/Director of Finance Steve Phillips on or before July 21, four membership amenities exceeded their budgets for the month. Those departments operating with positive variances included golf, pickleball, aquatics and beach parking.
Missing their budgets for the month were tennis, platform tennis, the Clubhouse Grille, Beach Club, marinas and the Yacht Club. The Clubhouse Grille only missed by $334, and the Beach Club by $1,044.
The overall positive variance for the month resulted from revenues over budget by $61,280 and expenses over budget by $49,596.
For the fiscal year through June, the positive operating fund variance was $162,914, with revenues over budget by $146,099 and expenses under budget by $15,815.
Through June, beach parking continues the usual pattern of producing more net revenue than any other department. Parking pass sales have generated $422,110 in revenue, ahead of budget for the year by $22,474.
Not far behind is golf, with net operations of $415847 through June 30 and a positive variance to budget of $55,597.
Aquatics also is performing well through the year so far, with $265,931 in net operations and a $33,138 positive variance to budget.
Marinas are in the black for the year through June 30 by $202,637, behind budget by $23,822.
The Yacht Club had $83,112 in positive net earnings through June, but that’s under budget by $55,411.
In contrast, last year’s end-of-June net earnings were $149,370, suggesting that this operation has a ways to go during the prime summer months to meet or exceed budget.
The Clubhouse Grille, on the other hand, one of three venues managed by the Matt Ortt Companies, is in the black by $39,939 through June, ahead of budget by $6,863.
The Beach Club, another MOC-managed venue, had net earnings through June of $17,381, under budget by $16,766.
All three racquet sports were in the black through June.
Pickleball remains the top performer, with year-through-June net earnings of $63,867 and an $11,547 positive variance to budget.
Tennis is more or less right on budget for the year, with a cumulative negative variance throuh June of $541. Net earnings through June were $15,594.
Platform tennis also is in the black for the first two months of the fiscal year, with $8,107 in net earnings but $4,358 under budget.
Reserve summary -- The June 30 reserve
OPA NET OPERATING RESULTS BY DEPARTMENT - JUNE 2023
Source: Ocean Pines Association Finance Department
RESERVE SUMMARY ENDING JUNE 30, 2023 - UNAUDITED
Source: Ocean Pines Association Finance Department
summary shows a total balance of $9.9 million, down from $9.66 million in May.
The replacement reserve balance was $6.42 million, with bulkheads and waterways at $1.35
million, roads at $1.07 million, drainage at $387,361 and new capital at $145,350.
There was no balance sheet included with the June financials.
OPA cash position decreases to $18.1 million
Reflecting normal activity for this time of year, the Ocean Pines Association’s cash position decreased in June May over May’s by about $400,000, OPA Treasurer and Director Monica Rakowski reported during the July 15 Board of Directors meeting.
As of June 30, the second month of the 2023-24 fiscal year, the OPA had about $18.1 million in cash on hand. That was about $400,000 less than April’s total and about $500,000 less than the same time last year.
Rakowski reported that $13.2 million was invested in CDARs as of June 30, with $41,000 in interest income recongized during the month. The remaining $4.9 million was invested in an insured cash sweep account, treasury bills, money market and operating accounts, diversified between two local banks.
August 2023 Ocean Pines PROGRESS 35 OPA FINANCES
MONTH MONTH YTD YTD YTD ACTUAL BUDGET $ VARIANCE ACTUAL BUDGET $ VARIANCE LAST YEAR GENERAL ADMIN (85) 4,136 (4,221) 5,819,604 5,802,557 17,047 5,931,718 MANAGER'S OFFICE (30,067) (29,113) (953) (54,797) (58,347) 3,550 (31,130) FINANCE (67,919) (69,397) 1,478 (127,697) (135,843) 8,146 (118,131) PUBLIC RELATIONS (31,115) (27,680) (3,435) (48,820) (46,846) (1,973) (42,555) COMPLIANCE / PERMITS (3,958) (81) (3,877) (17,374) 330 (17,705) (7,457) GENERAL MAINT (63,285) (59,334) (3,951) (115,848) (116,586) 738 (96,018) PUBLIC WORKS (129,503) (130,695) 1,192 (236,739) (270,319) 33,580 (239,420) FIRE / EMS (84,076) (84,076) 0 (168,153) (168,153) 0 (177,337) POLICE (143,987) (160,603) 16,617 (266,060) (315,187) 49,127 (301,813) RECREATION / PARKS (19,991) (65,807) 45,817 (55,578) (96,259) 40,681 (63,010) TENNIS (7,999) (726) (7,273) 15,594 16,135 (541) 15,094 PICKLEBALL 8,793 4,198 4,595 63,867 52,321 11,547 58,233 PLATFORM TENNIS (2,492) 2,681 (5,172) 8,107 12,465 (4,358) 14,025 AQUATICS 25,722 24,234 1,488 265,931 232,793 33,138 266,180 GOLF OPS + MAINT 76,072 65,439 10,633 415,847 360,250 55,597 377,051 CLUBHOUSE GRILLE 16,104 16,438 (334) 39,939 33,075 6,863 28,792 BEACH CLUB 27,552 28,597 (1,044) 17,381 34,147 (16,766) 48,485 BEACH PARKING 68,911 56,814 12,097 422,110 399,635 22,474 421,823 YACHT CLUB 58,178 101,193 (43,014) 83,112 138,523 (55,411) 149,370 MARINAS 10,467 19,422 (8,956) 202,637 226,459 (23,822) 225,087 NET OPERATING (292,677) (304,361) 11,684 6,263,063 6,101,149 161,914 6,458,987
7/20/2023 BULKHEADS NEW REPLACEMENT WATERWAYS ROADS DRAINAGE CAPITAL TOTAL BALANCE APRIL 30, 2023 5,154,162 523,223 715,176 184,688 114,084 6,691,333 TRANSFERS FROM OPERATING FUND: CONTRIBUTIONS FROM ASSESSMENTS 1,775,152 1,053,850 - - - 2,829,002 TRANSFER FROM PRIOR YEARS' SURPLUS - - - 100,000 30,000 130,000 INTEREST INCOME (EXPENSE) 57,182 9,350 8,603 2,673 1,266 79,074 RESTRICTED CONTRIBUTIONS: TRANSFER OF CASINO FUNDS 350,000 100,000 450,000 TRANSFERS TO OPERATING FUND: OPERATING EXPENSES (238,234) (238,234) CAPITAL ADDITIONS (566,755) - - - (566,755) BALANCE JUNE 30, 2023 6,419,741 1,348,189 1,073,779 387,361 145,350 9,374,420 RESERVE SUMMARY PERIOD ENDED 6/30/2023 UNAUDITED
OCEAN PINES ASSOCIATION NET OPERATING BY DEPARTMENT JUNE
2023
Report reveals new details in Knupp fatality
Avenues of possible defense for defendant Mailloux emerge from case details
By TOM STAUSS Publisher
Case documents, including the state police report containing details about the accident that resulted in the death of Ocean Pines teenager Gavin Knupp in July of last year, suggest possible avenues of argument that could be employed by defense attorney George Psoras when his client, West Ocean City resident Tyler Mailloux, goes to trial on 17 counts of leaving the scene of the accident.
The case is scheduled for trial Sept. 11-14 at the courthouse in Snow Hill, but could be delayed if the judge in the case, Brett Wilson of Dorchester County, grants a defense motion for a change of venue. It could also be postponed if dueling motions by the attorneys are not resolved in time for the September dates.
A motions hearing is set for Aug. 18 at the courthouse in Snow Hill [see article in this edition of the Progress for details.]
The police report of the accident completed by state police investigator Cpl. Kevin Moore, a collision reconstruction specialist, says that Mailloux, through his attorney, has indicated that he was unaware that his vehicle had hit and killed a human being while driving home from work at the Ocean Pines Yacht Club on the evening of July 11 last year.
The state in court filings has already indicated that it will claim that Mailloux knew or should have known that he hit a human, and that the extensive damage to the left side of the vehicle he was driving, a black Mercedes, proves it.
Revelations in the police report, however, suggest an alternative narrative for the defense.
A jury will have to sort through these competing narratives. Starting out with a presumption of innocence, a jury will have to decide “beyond a reasonable doubt” that Mailloux was aware or should have been aware that his vehicle struck a human on evening of July 11, 2022.
Among details from the police report that may prove to be exculpatory for Mailloux:
• He was involved in an accident that struck a deer on June 26, 2021, not far from the state police barracks in Berlin.
Mailloux’s attorney may be able to argue that if his client was aware of a collision, he thought it was a deer that he struck with his vehicle.
• His attorney, Psoras, contacted Worcester County State’s Attorney Kris Heiser on the day after the accident, informing her that he had information about the accident, including the identity of the driver of the vehicle that might have killed Gavin Knupp.
On July 15 Psoras and Moore spoke, with the attorney telling Moore that the suspect vehicle would be brought to the Berlin police barracks on July 21.
This information could be used to argue that the defendant made a good faith effort to reach out to authorities, who instead conducted a raid on the home of Ralph DeAngelus on July 17 and
took custody of the vehicle that had been parked in DeAngelus’ garage.
The police report contains information for why the state police may have felt compelled to conduct the raid despite the arranged date for voluntary release of the vehicle to authorities.
An individual apparently acquainted with Mailloux did some independent, unauthorized investigative work, entering onto the property where Maillous lives with his mother and stepdad, Ralph DeAngelus, in West Ocean City.
This unlicensed investigator took photographs of the Mercedes-Benz parked in the garage at the DeAngelus household and provided copies to the state police barracks in Berlin.
• A vehicle driven by a friend of Mailloux had been following the Mercedes reportedly driven by Mailloux, captured by a camera at Crabs To Go at the intersection of Routes 589 and Gray’s Corner Road.
The defense might argue that this vehicle, too, didn’t stop at the scene because the driver was unaware that a person had been killed.
• A tox screen of Gavin Knupp revealed a .06 reading for ethanol (a form of alcohol found in beer, wine and liquor) in the blood heart, but negative for ethanol in the urine and vitreous blood, according to the police report.
The tox screen indicated that he was negative for drugs, but the defense could ask why a 14-year-old apparently had consumed alcohol the night of the accident and might have been situationally impaired before his death.
• Before the accident a 2000 Toyota 4Runner driven by Gavin Knupp’s sister, Summer, was stopped facing west “with its high beams on,” partially on the westbound lane of Grays Corner Road and partially on the grass off the north edge of the roadway.
Gavin Knupp was struck while crossing the road in front of his sister’s vehicle, reportedly after taking a picture of a deer mounted on a pole in a field near where the accident occurred.
The defense likely will cite the high beams as a plausible explanation for why Mailloux didn’t see Knupp to the left of his vehicle before and after the collision.
Indeed, in the police report, Cpl Moore says that “the high beams impaired the vision for eastbound traffic,” which is a clear reference to vehicles driven by Mailloux and his friend on the night of the accident.
The police report did include some materials that could prove problematic for the defense, however.
Moore interviewed employees at the Ocean Pines Yacht Club who testified that Mailloux “seemed off” in the opinion of one witness and was having trouble mixing drinks on the night of the accident.
Gruesome details of the accident offered by Cpl. Moore also seem unhelpful to the defense.
The police report said that after the collision “Gavin rode up on the left side of the hood, and after sliding up onto the hood, Gavin’s head made contact with the A pillar and his body made contact with the left rear view mirror breaking the mirror housing, mirror plate and adjustment motor.
“Gavin Knupp tumbled across the roadway surface before he came to rest face down in the grass along the north edge of the roadway,” according to the police report.
Moore then concluded that “the Mercedes-Benz fled the scene and did not return,” a description the defense will not suggest is unproven if the driver, Mailloux, was unaware he had struck a human.
In addition, there are indications that the defense will dispute Moore’s version of the collision and the decedent’s interactions with the vehicle by calling its own expert witnesses.
The defense has disclosed an initial list of expert witnesses it intends to call during trial in a document that includes explanations of testimony that can be expected at trial.
One witness who likely will dispute Moore’s reconstruction of the accident is Tracie E. Jones of Rimkus Consulting Group of Columbia, Md.
“It is anticipated that Ms. Jones’ testimony and opinions will include ... her review and analysis of the State’s Accident Reconstruction reports, her own independent accident reconstruction analysis, her conduction and completion of a daylight inspection at the accident site on July 18, 2022, and her conduction and completion of a nighttime maximum visibility analysis on July 18, 2022,” according to the defense document.
“All of Ms. Jones’ opinions will be based on her extensive training, knowledge and experience as an accident reconstructionist and mechanical engineer.”
The expert witness document adds that as Ms. Jones “has not had the opportunity to view and inspect the alleged vehicle involved in this accident, her final opinions have not been offered as
36 Ocean Pines PROGRESS August 2023 SPECIAL REPORT
u
The memorial for the late Gavin Knupp set up on the side of Gray’s Corner Road.
Mailloux attorney files for case dismissal
By TOM STAUSS Publisher
The scheduled Aug. 18 motion hearing in the Tyler Mailloux hit-and-run accident case involving the death of Ocean Pines teenager Gavin Knupp in July of 2022 may resolve at least two motions offered by defense attorney George Psoras of the Rice, Murtha Psoras law firm.
One motion calls for a change of venue in the jury trial of Mailloux, a 22-year-old West Ocean City resident, which if granted by visiting circuit court judge Brett Wilson could delay the trial’s start, as it would have to fit on the docket of another jurisdiction in the state.
It’s currently scheduled for four days, Sept. 11 through Sept. 14, at the courthouse in Snow Hill.
Details of the motion for a change in venue were provided in a front page article published in the Progress’s July edition [issuu.com/oceanpinesprogress].
The state has filed a response to the motion for a change of venue, opposing it on the grounds that much of the social media vitriol aimed at Mailloux and his family has not necessarily been posted by residents of Worcester County.
Indeed the “Justice for Gavin” Facebook page with its 22,000-plus members is a regional phenomenon, and that could serve to undermine a request for a venue change.
The defense has filed at least two motions for dismissal, which probably have a steep hill to climb given the visibility of Gavin Knupp’s death and its aftermath, the creation of a “Justice for Gavin” campaign on social media.
One motion for dismissal is based on the defense attorney’s claim that the state had been tardy in moving on the case and responding to defendants’ request for documents.
This motion was filed in late June, after the July Progress had gone to press.
“The State’s unnecessary delay in filing the Criminal Information has violated the Defendant’s right to due process, as guaranteed by the Fifth and Fourteenth Amendments to the United States Constitution and Article 24 of the Maryland Declaration of Rights,” according to a filing by Psoras. “The Due Process Clause of the Fifth Amendment requires the dismissal of a charging
Police report
From Page 43
the State has continued to refuse to provide access or return of the automobile for analysis and testing.”
Another expert witness to be called is Dr. William E. Folson from York Digital Forensics of York, Pa.
“Dr. Folson is expected to testify and provide opinions in the area of Cell Tower Data and Geo-
document if the delay causes prejudice to a defendant’s right to a fair trial.”
The motion for dismissal references the seizure of the vehicle, a black Mercedez, on July 17 at the West Ocean City home of Ralph DeAngelus, where Mailloux lives.
“Since that date several attempts have been made to access the seized evidence in an attempt to secure an independent expert analysis of same. All of these attempts were rejected by the State,” Psoras asserts in his motion. “Although Trial is scheduled in less than 90 days, the Defendant has not received any discovery whatsoever, despite timely demand, nor access to any physical evidence, including the automobile.
“It is additionally averred that the crash investigation conducted by the Maryland State Police was concluded in 2022.”
Some discovery has been provided to the defense since the filing, but for the most in a manner unacceptable to the defense.
Discovery or the lack thereof will probably be among the issues to be sorted out by Judge Wilson on Aug. 18, or perhaps sometime later.
According to Psoras, “the ten-month delay in the filing of traffic charges [against Mailloux] are of consequential and constitutional dimension, given the non-complexity of the charges ultimately filed against the Defendant ...
“The aforementioned delay has caused extreme prejudice to the Defendant, including but not limited to the loss of exculpatory electronic evidence including phone records, video footage, ring doorbell camera footage, the deterioration of the automobile by the failure to properly store same for forensic testing including fingerprints and DNA analysis, all of which have been compromised or lost.”
The defense attorney said the “undue passage of time has also caused a fading and loss of memories of possible witnesses.”
In another recent filing, Psoras argues that the defense has been stonewalled by the state in its attempts to access the Mercedes that reportedly was the vehicle that killed Gavin Knupp.
“Despite counsel’s best efforts, the State still refuses to permit reasonable access and discovery of the vehicle,” the attorney said. “In fact, the State is now demanding that the Defense and its
location Analysis, including but not limited to cell tower data and geolocation information retrieved in this case,” according to the witness list document. “Dr. Folson is expected to testify to the procedures used to collect, identify, and analyze cell tower data and geolocation data.”
It is not readily apparent how Dr. Folson’s testimony will be used in support of the defense narrative in the case.
A third and fourth witness that the defense anticipates calling include Dr. Ling Li, Office
experts travel to a county, i.e., Somerset County, which has absolutely nothing to do with this case, because the State has finally advised that that is where the car is being held, or it would normally be held at a central parking facility in Howard County, Maryland.”
Psoras said the state is demanding that any inspection must be observed by personnel from Maryland State Police, the State’s Attorney’s Office, and it will be audibly and visually recorded.
The attorney is asking for a hearing on the points raised in the motion.
Another motion for dismissal filed by Psoras is targeted at various counts in the 17-count indictment that the attorney various contends failed to charge an indictable offense, failing to allege specific violations of the state’s transportation code, or are duplicitious, constitutional vague and the like.
The attorney handling the case for Worcester County State’s Attorney Kris Heiser, Paul Haskell, in effect says Psoras is misreading and misappling clear language in the applicable statutes.
With the two sides sparring over discovery and more specifically evidence gathered by investigators, Psoras filed a motion asking for a so-called Brady hearing “at which the State will show cause why information requested has not been disclosed to the Defense or that after an investigation, no such information exists.”
Psoras’ motion acknowledges that the state provided discovery information on June 28, 2023, “via a terabyte hard drive without a directory, table of contents and/or index identifying the information contained therein, and subsequently on June 29, 2023, some additional discovery through the Maryland Electronic Court (MDEC) system.
While voluminous, the discovery provided by the state is “partial,” and because the charging process is exclusively within the control of the state, “the delay and prejudice is attributed solely tothe state’s intentional acitions,” according to Psoras, who the asked the court to dismiss all the pending charges in the case.
It is not clear whether the Aug. 18 motions hearing is the eqivilent of a so-called Brady hearing, but it’s likely that all of the preliminary skirmishing in the case will come to a head at that time.
of Maryland’s Chief Medical Examiner State of Maryland, from Baltimore, and an associate, Rebecca Phipps, from that same office.
The witness list document suggests that both witnesses are “expected to testify and provide opinions consistent with” the autopsy and toxicology findings prepared on July 12, 2022, “including but not limited to cause of death being as a result of an accident and not a homicide, and that the toxicology results include significant ethanol test results in the decedent.”
August 2023 Ocean Pines PROGRESS 37 SPECIAL REPORT
Opposing sides skirmish over what defense asserts is an unacceptable delay by the state in providing requested information and access to the vehicle cited in the case
On-line voting can’t come soon enough
If anything is clear from the delay in the arrival of ballots in the mailboxes of Ocean Pines Association members for this summer’s Board of Directors election, it’s that on-line voting next year is an even more desirable option.
The Elections Committee already has that in mind for next year, and there is nothing that has happened this summer that makes a persuasive argument for not going ahead with on-line voting next year, along with the usual paper ballots. Had this hybrid system been in place this summer, more OPA members would have avoided the uncertainties of slow mail and would have voted on-line. Here are a few observations of the process as it has unfolded thus far:
• Ballots were late by roughly a week; a subcontractor hired by the OPA’s vendor was tardy in getting them to the post office. Despite the caterwauling in some of the nether regions of lo-
cal social media, this has not been the ruination of this year’s election. Voters still have plenty of time to full fill out their ballots and send them in for counting. Don’t trust the slow mail? It’s easy enough to deposit ballots in the dropbox at the police station.
• Critics need to curb their hysteria. Calling the election process so far a failure because ballots arrived late is wildly premature. Let’s let the entire process play out before nailing the coffin shut on Election Masters, the Bainbridge Island, Washington state, vendor, newly hired this year. There will be plenty of time after the election is over to probe the reasons why the ballots weren’t sent out by the July 11 deadline. Perhaps a reduction in fees can be negotiated as a way of compensating the OPA for the late-arriving ballots.
• The Elections Committee and Board of Di-
rectors acted properly in keeping the approved timeline for the return and counting of ballots. Again, there’s plenty of time for votes to be cast and counted.
• If a delegation of malcontents want to fly out to Washington state to observe the vote count in person, rather than rely on video streaming, it’s their right to do so. Let the circus begin!
The ballot count is likely to happen much quicker than year’s past, and the cost-benefit of such a trip can be calculated in the cost per minute of watching the proceedings up close. For those with money to waste, it seems like the perfect adventure.
The Elections Committee has performed admirably through adversity and deserves our thanks for hanging in there despite the carping from the cheap seats.
This too will pass. --
Please, no more Yacht Club meetings
The Board of Directors in a kind of social experiment decided to conduct the July 15 regular meeting at the Yacht Club.
To say it didn’t go well would be an understatement.
With the benefit of experience, it now should be fairly evident: No future Board meeting should be held exposed to the elements, such as brutal sun and oppressive humdity. Nor should they be held in a venue where technology is more likely to perform poorly, as it did at the July meeting.
The decision to conduct OPA affairs in a more informal venue was well-intentioned. No one should be excessively bothered by the fact that some directors decided to wear festive Hawaian shirts. Who cares?
What should matter is that this meeting was an unpleasant experience for those in attendance, at least most of them. As noted, it was hot and humid. While the directors were shielded from the weather, shaded by the canopy over the stage in which they sat, those out in the peanut gallery were sweltering.
One attendee had to be escorted from the premises by the OPPD, probably feeling the effects of the excessive heat.
For anyone attending the meeting remotely, via Internet streaming, a service to members of which the OPA is rightly proud, audio was virtually non-existent. This resulted in the first meeting in years where the video and audio recording was not made available for viewing after the fact. No surprise there. Something that doesn’t exist can’be made available.
For those attending in person, the proceedings were barely intelligible, except perhaps for those sitting on the first or second rows. The screen positioned to the left of the directors, displaying the meeting slides referenced by the general manager, was lost in the glare of bright sunlight. These, at least, were later accessible to
members on the OPA Website in the Board of Directors section.
The microphones that allow directors’ voices to be amplified were not working, and more soft-spoken directors, like Colette Horn, were impossible to hear. Some might argue that that was no great loss, but that misses the larger point: OPA members deserve to hear the viewpoints of their elected leaders.
The Yacht Club and deck are known for poor wi-fi, and wi-fi is needed for the meeting technology - cameras, miscrophones, and the rest - to work properly. It simply becomes inprudent to conduct a meeting where wi-fi can cut out at any time. Let’s live, learn and move on.
The golf clubhouse meeting room has worked
Tom Stauss
well, and can continue to be used for Board meetings until such time as an expansion of the seating for the adjacent bar and grill occurs and makes it unsuitable for meetings. There’s storage in that room for the audio-video equipment used during Board meetings, and ease of set-up should be one factor in a decision on a proper venue.
Word is that the Board is not likely to replicate the recent experiment. So lesson learned.
Ultimately, General Manager John Viola has a good solution. He has previously suggested adding a room dedicated to Board meetings to the Administration Building. Among its many benefits: Air conditioning, something that too easily we take for granted.
- Tom Stauss
38 Ocean Pines PROGRESS August 2023 OPINION COMMENTARY
Peck exit from committee inevitable
The decision by the Board of Directors in a 4-2 email vote to remove former Director Amy Peck from her short-lived membership on an OPA advisory committee was hardly a surprise. OPA President Doug Parks had not wanted to appoint her in the first place, in the end politely abstaining from the appointment at the June Board meeting.
Three of Parks’s colleagues were not enthused with the appointment but wanted to give her a chance to show she could be a team player. It also represented a desire, tentative to be sure, to move on from some of the tit-for-tat skirmishing on the personnel front in recent years. A new chapter, as it were.
But her removal was inevitable; it was not a question of if but when. Her appointment came with an unofficial asterisk, that if she stepped out of line in the view of a Board majority, she would be removed forthwith. There was the sense it wouldn’t take much for that to happen.
Some context: As an appointed director, she was part of then Board majority that opted to suspend amenity privileges for a former director, Tom Janasek. Peck publicly was sympathetic to if not in agreement with those calling for a boycott of OPA food and beverage venues managed by the Matt Ortt Companies.
Peck narrowly lost her campaign last year for election to the Board, and has not been shy this past year with her platform on the ROC Facebook page in offering criticisms of Board actions. She has spoken freely and contentiously during the Public Comments segment of Board meetings this past year. Sometimes the criticism seemed more personal than policy-driven, crossing a line into discourse that was no longer civil.
She was hired and then effectively fired from a job in the aquatics department earlier this year, reportedly because OPA management felt she would not be a team player.
A warning letter that in effect her committee appointment was probationary was drafted by OPA attorney Bruce Bright. Its contents are included in a news article published elsewhere in this edition.
The letter from Parks removing her from the Recreation Advisory Committee arrived soon after the
LIFE IN THE PINES
An excursion through the curious by-ways and cul-de-sacs of Worcester County’s most densely populated community
By TOM STAUSS/Publisher
Bright letter’s arrival.
Director Steve Jacobs told the Progress that it was a complaint letter from an OPA member referring to a recent ROC podcast featuring Peck and ROC founder Sherrie Clifford that triggered the decision to remove Peck. Bright’s warning letter to Peck might have already been drafted and on route before the Board acted to remove her.
The letter from OPA President Doug Parks said that the removal was consistent with Bright’s letter, as indeed it was. Both letters were artfully drafted. There was no character assassination, no overt defamation, simple notice that her service on the committee had been terminated consistent with language in the Bright letter.
As the Bright letter makes clear, the basis for her removal resulted from the ROC Page earlier in July announcing the appointment of a new Ocean Pines police chief, maybe a week or so before the appointment was officially disclosed by the OPA in a press release.
Peck says she’s heard that some directors and some in OPA management believe she used her connections as a former director and more recent committee membership to obtain confidential information about the pending appointment.
She called that pretext ridiculous. She said that Ocean Pines is a notoriously leaky community, with someone involved in or aware of candidate interviews apparently more than willing to leak. She says her former role as a director had nothing to do with her ability to find out about the appointment.
Whatever. More on point is that the “scoop” on the police chief appointment was seen as evidence that Peck was more interested in breaking news than she was in letting the OPA release the information according to its own timetable. This is consistent with the narrative that Peck isn’t a team player, at least one who is willing to observe the norms of OPA governance. Her team is ROC, not the OPA.
Two members of the Aquatics Advisory Committee recently sounded off in a way that seemed critical of
OPA management, but they were not removed from the committee. Instead, they met with OPA officials to discuss the matter, and according to sources the committee chair offered an apology for comments made.
In contrast, Peck isn’t going to apologize for anything because she doesn’t think she’s done anything wrong. Given her self-appointed role as a pundit, freely criticizing the Board in podcasts with Clifford, it’s not surprising that OPA directors would not be too keen in having her in an advisory role, even on a committee that usually flies under the radar.
Peck makes no secret of her disdain for recent Board decisions.
She is opinionated and outspoken, and isn’t going to change to make herself more likable to the current Board majority. Some people are able to disagree without being disagreeable, a talent that doesn’t come naturally to Peck.
She isn’t universally loved. Check out Kelly Miller’s “Ocean Pines Oversight of the ROC” Facebook Page for evidence of that. At times it’s hysterically over-the-top hilarious in the way it takes on those who attract Miller’s disdain. Peck, Clifford, and former appointed director Josette Wheatley often have been in Miller’s rhetorical crosshairs. He calls them bad names reeking of foulness and bad taste and usually makes no apologies.
He’s also mixed it up with Joe Reynolds of Ocean Pines Forum fame, recently actually expressing some regret for getting too personal.
But let’s not digress too far down the rabbit-hole.
Back to Peck: She could have run again for the Board this summer but didn’t. It would have been a brutal campaign, with her policy positions and personality traits at issue. Had she decided to run and had she been successful, she could have joined with Jacobs as someone willing to confront the Board majority, but in all likelihood she would have toiled on the losing side in any issue remotely contentious.
Jacobs and Colette Horn were not in favor of Peck’s removal -- no surprise there -- with Horn arguing
that such decisions should not be made via email exchanges among the directors. Jacobs agreed but apparently didn’t push for a special meeting. It takes two directors to make that happen, and why push for that when the outcome was pre-ordained? But Horn had a valid point, as befits the proverbial broken clock that’s right twice a day.
There is a prescribed procedure for these kind of decisions. Generally, unless there is unanimity among the directors to conduct business via email, they should be made in a Board meeting, preferfably in public.
It’s not the first time that the Board acted at odds with the governing documents. Horn elevated that to a fine art form during her six years on the Board. She was hardly in a position to be lecturing her colleagues on fidelity to the by-laws in the waning days of her term.
Her opposition to Rick Farr’s candidacy last year and support for Janasek’s amenity suspension is proof of that.
In any event, all this is what passes for context in the latest episode of the Adventures of Amy Peck.
Does anyone really care? It’s an advisory committee after all, and she has other platforms from which she can sound off on Ocean Pines issues. There’s no reason to feel sorry for her. She brought it on herself.
The Ocean Pines Progress is a journal of news and commentary published monthly throughout the year. It is circulated in Ocean Pines and Captain’s Cove, Va. 127 Nottingham Lane Ocean Pines, Md 21811
August 2023 Ocean Pines PROGRESS 39 OPINION
PUBLISHER-EDITOR Tom Stauss stausstom@gmail.com 443-359-7527 ADVERTISING SALES Frank Bottone frankbottone@gmail.com 410-430-3660 CONTRIBUTING WRITER Rota
443-880-3953
Knott
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Connecting with students at the Veterans Memorial
Tim McMullen, Mary Adair lead efforts to train future docents
By JOSH DAVIS
Contributing Writer
Each year, hundreds of local students are bussed to the Worcester County Veterans Memorial at Ocean Pines to tour the grounds
and learn a valuable lesson about where their freedoms come from.
The Veterans Memorial Foundation, since 2010, has sponsored field trips for all fifth grade students in Worcester County.
Walking the Patriot’s Pathway, children learn about the history of American conflicts. They also learn about the memorial itself and hear stories of heroism tied to local people who served.
Volunteer docents talk about the history of the U.S. flag, and the Junior ROTC demonstrates how to property fold and display it.
Tim McMullen has been a volunteer docent since 2016.
“Professionally, as a retired history teacher, I feel it is absolutely necessary that fifth graders start to appreciate military history,” McMullen said. “We have a movement in American high schools now not to teach about Gettysburg, not to teach D-Day. That frightens me.
“And also, I am just so proud of our community,” he continued. “I think what we have with this Veter-
ans Memorial and this educational program is phenomenal.”
Personally, McMullen said both his parents served during World War II and later met in Paris in the spring of 1945.
“My father, who was Donald McMullen, Sr., ended up as a full colonel with a 10th grade education and is a tremendous inspiration for everyone in our family,” McMullen said. “My mother, in 1942, got into an argument with her father and told him she was going to join the WACs, which was the Woman Army Corps.
“He told her she didn’t have the courage enough to do it. So, she got on a bus and went to Boston. And I remember her telling me the next thing she knew she was in London during the Blitzkrieg,” he said.
The couple were married in 1946 and soon after had two sons, 11 months apart: Tim and Don McMullen, Jr.
Along with his parents, McMullen said he was also inspired by his youngest brother, Bill, who enlisted in the U.S. Army in 1967 and served in Vietnam.
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Tim McMullen and students at the Veterans Memorial.
Veterans Memorial
From Page 41
“Bill spent three years in the service, and we just buried him a year ago. Among other things, he had respiratory lung failure due to Agent Orange,” McMullen said. “When we count the number of people that died in the Vietnam War, we count those people that died during that period, from about 1963 to 1974. But there are thousands and thousands of Americans who died from physical and emotional difficulties because of Vietnam.”
As a former teacher, McMullen said it’s important to engage visiting students with those kinds of personal stories.
“What you have to do is ask each of them, do you have a veteran in your family?” he said. “Then I tell the story about these two people, one from Western Pennsylvania who quit school in 11th grade, lied about his age, and enlisted. And I tell them about the lady in Boston who got in a fight with her dad.
“Good history teachers can tell good stories. Those stories are important,” McMullen added.
McMullen credited his brother, Don, along with Susan Pantone and Sharyn O’Hare, with making the educational programs a vital part of the community and an important part of each local student’s schooling.
He said volunteering also helps strengthen the bond with his brother.
“For me to be able to do this with
Don is very important,” he said. “Don and I are the two oldest in a large family. We were born the same year and we grew up like twins, although we’re not twins. The fact that I’m doing it with Don is very important to me.
“I think it’s also important to note that Don and I are not creating and inventing things – Don and I are
carrying on the tradition that was taught by our parents. And now we pass the baton on down,” he added.
Mary Adair, a former president of the Worcester County Veterans Memorial Foundation, has been involved with the education program for about a decade.
Her late husband, U.S. Army Col. Robert Adair, served two tours
in Vietnam and she still describes herself as a military wife.
“My husband served 28 years active duty as an officer. That was my life and it’s very close to my heart – our country, our flag, all of it,” she said. “Everything that I live for is for our freedom and the fact that I want the children to be aware of this. I don’t think that they’re teaching it in school, so I try to instill in them the pride for our flag and for our country.”
As a docent, Adair talks about the history of the U.S. flag and some of its notable variations. In doing so, she said she tries to keep things light and keep things moving.
“I try to have an interplay with them,” she said. “I tell them that they’re not in school and there’s no wrong answers. Hopefully, they will learn some things from having gone through the presentation, but I also want them to ask questions. I want it to be kind of a conversation.”
Adair said she’ll speed through the first two colonies that joined the union, and then introduce Vermont and its role in history as that place that also gave us Ben and Jerry’s, skiing and maple syrup.
“I usually go through all the New England states fairly quickly, so they can pick up on it. But when they do connect with something, you can really see their faces light up,” she said.
Adair said everyone knows about George Washington, but many students don’t know much about the War of 1812, or Gen. Charles Cornwallis.
“I think it’s important because a lot of adults didn’t know that stuff either,” she said. “In fact, I didn’t know until I started teaching that the Queen Anne’s Flag was the British flag that the British troops marched under, and I just think that’s kind of cool to know!
“Over the years I’ve cut out quite a bit, but I still want them to know that if you hold a flag upside down that it’s a sign of distress, because that’s still useful today. And I like to tell them about who is third in succession for the president. So, just a few key points that I know they’re not getting in school,” she continued.
“It’s also got to be fun for them,” Adair said. “They’re out there for a fun day. They’re not out there to be in class, so to speak. So that’s the way I try to approach it.”
For others who may be inspired to tell similar stories or give back to their community, Veterans Memorial Foundation President Marie Gilm-
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To Page 43
Mary Adair sharing patriotism with students at the Veterans Memorial.
Pines Chamber plans multiple events in coming weeks
The Ocean Pines Chamber of Commerce has a packed schedule of events it is sponsoring in coming months.
A community favorite, the Flounder Tournament and Auction, is returning for its 16th yea. The weigh in and auction will be at the Ocean Pines Yacht Club on Aug. 5 from noon to 4:30 p.m.
Last year, there were over 275 anglers and the winners split a purse of over $8,000.
“I have been with the Chamber for five years now and the flounder tournament and auction is everyone’s favorite annual event. So many fish the event year after year, I recognize their names as the registrations come in! It really is a
family and friend tradition” Chamber President Kerrie Bunting said.
The auction closes at 4:30 p.m. and will feature hotel stays, gift cards, fishing gear, jewelry, baskets of cheer, and much more. This year, the main event sponsor is TC Backer Construction.
Also helping to support the event are PT Marine, Mike’s Flooring, RTI
Solutions, Short’s Marine, Bank of Ocean City, 120th Street Wawa, Farmers Bank of Willards, Brennan Title, Avery Hall Insurance, and Landmark Insurance and Financial Group. Registration ends at noon on Aug. 4 online at www.OceanPinesChamber.org.
If it’s Labor Day weekend, it’s time for the Chamber’s Classic Car and Jeep Show at the Worcester County Veterans Memorial Park. Weather permitting, the Chamber hopes hope to bring in more than 100 beauties from 9 a.m. to noon on Sept. 2.
There will be music, food trucks, vendors, and a lot of pride on the grounds that morning.
Registration is only $15 upon arrival.
The Chamber is adding an Oktoberfest on Sunday, Sept. 24, from 1-6 p.m.
The event will highlight a Bavarian dance troupe called Enzian Volkstanzgruppe, or EVTG, a Bavarian Volkstanz and Schuhplattler group founded in 1968.
They will bring traditional German and Bavarian dances, music, costumes, and instruments to White Horse Park.
The event will include food trucks, beer garden, games for all ages, and vendors.
Corporate Sponsors for these events include the Ocean Downs Casino, Gateway Subaru, the Ocean Pines Association, and Krause Companies.
More information is available at the Chamber Website, www.OceanPinesChamber.org, by phone at 410641-5306 or email info@oceanpineschamber.org.
Veterans Memorial
From Page 42 ore said there is always a need for volunteers.
“We’re always looking for new docents to tell the stories of our veterans,” she said. “If you feel strongly about your country and you feel strongly about the memorial, we welcome you with open arms.”
Docent training generally starts in April, ahead of annual field trips in May and October.
For more information on volunteering, call Susan Pantone at 410430 1040 or Don McMullen at 443388-2941.
Ocean Pines PROGRESS August 2023 43 LIFESTYLES
Former Ocean Pines resident drafted by Tampa Bay Rays
Hayden Snelsire’s ‘career’ started with tee-ball when he was three years old
By JOSH DAVIS Contributing Writer
The dreams of a local family came true on Tuesday night, when the Tampa Bay Rays drafted Hayden Snelsire in the 17th round of the annual Major League Baseball Draft.
The Snelsires lived in Ocean Pines for 17 years, before recently moving. But the entire family has left a lasting legacy on the area.
Hayden was a star on Berlin Little League All-Star teams for almost a decade. His dad, Eric, was a league coach and past vice president, and his mom, Jocelyn, was heavily involved in the league as a fundraiser and booster.
“It was a little surreal,” Hayden said of being drafted. “It still hasn’t really clicked yet. But it was just crazy to see my name on that board. It was an awesome moment.”
Jocelyn posted a video of the draft announcement on Facebook on Tuesday night and the post went viral, as well-wishers from all over the community congratulated Hayden and the family. Many had watched Hayden play Little League and high school baseball in person, or during all-star games that were nationally televised on ESPN.
“It is hard to put into words how rewarding it is to see your kids achieving goals they set for themselves at such a young age,” Jocelyn said. “Hayden has always been focused on developing his skills and competing at the highest level, even when he was starting out in tee ball.”
Hayden started playing tee ball in Ocean Pines when he was just 3 years old.
“I also remember a lot of times going to the rec center there, and playing basketball over there behind the police station,” he said. “That was always fun.”
Ocean Pines Recreation and Parks Director Debbie Donahue also remembers watching Hayden play Pop Warner football.
“We were so excited to see Hayden get drafted!” she said. “I remember seeing him play Little League, and he was involved very early on with some of our rec programs, so it’s
amazing to see a homegrown talent achieve his goals.”
Hayden threw a no-hitter in 2011 as the youngest player in Berlin Little League.
Three years later, in 2014, he was one of the standouts of the Berlin Intermediate All-Star team that reached the Little League World Series championship game in Livermore, California. It was a moment that captivated the community and was also the start of several years of deep post season runs by Berlin Little League teams.
“His journey through Berlin Little League for almost 10 years was a highlight for all of us,” Jocelyn said. “Watching that group of boys play together for all those years was so much fun. They helped establish BLL at the state and regional levels.
“But the best part is that when Hayden was drafted, each of those amazing young men reached out to congratulate him,” she added. “They really are brothers for life!”
Hayden said it was a special moment when his old teammates reached out on draft night.
“We’ve always stayed in each other’s lives through social media, kind of following each other, but it’s been a while since I’ve talked to some of them,” he said. “So, it was really nice to hear from them.”
Hayden went on to play for the Stephen Decatur Seahawks and was named Pitcher of the Year in the Bayside Conference South during
44 August 2023 Ocean Pines PROGRESS LIFESTYLES
45
To Page
Hayden Snelsire (center) with parents Eric and Jocelyn.
Vote sign winners
The Ocean Pines Communications Advisory Committee recently announced two winners of its contest to design signs encouraging homeowners to vote in the annual Board of Directors election. Winners were the Cook Family (Ann, Christine, and Addison) for the children’s category, and Kevin Doxzen (of Bay Color web design) for the adult category. Both winners will receive a $100 gift card to the Yacht Club and have their signs used as part of annual promotional efforts to encourage voting. Communications Committee Chairperson Cheryl Jacobs said the committee is pleased with the results and believes the signs will be fun and will encourage homeowners to vote.
Snelsire
From Page 44
his last season, in 2019. During his senior year, he threw 41 1/3 innings in nine games, striking out 65 and walking 12. He allowed just three earned runs for an ERA of 0.65.
He went on to pitch for Randolph-Macon College and tied a program record this year with 17 strikeouts in a single game. He also holds the career strikeout record for the college (237).
In 2023, Hayden went 8-2 with a 2.99 ERA and 107 strikeouts in 69 1/3 innings. He earned All-America Second Team honors and was named to the All-Region First Team and All-State (Virginia) First Team.
“He was laser focused on playing at the collegiate level and going somewhere where he felt he could make an impact — RMC was that place for sure,” Joceyln said. “Coach Ray Hedrick has been so supportive of Hayden and has helped him reach so many of his goals. His teammates there are awesome too, and we couldn’t be happier with the choice he made.”
As for what’s next?
“I’m going to get a chance to talk to some of the people at the Rays and they’re going to kind of give me the lowdown of what’s next,” Hayden said. “But it’s been so cool to see everything come full circle, and to get to continue playing at a professional level.”
“We are so excited for this next chapter for Hayden and know that he will work hard to represent himself, Berlin, SDHS and Randolph Macon well,” Jocelyn said. “We are so thankful for the support of this community, and our friends and family!”
August 2023 Ocean Pines PROGRESS 45 LIFESTYLES
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Womens Club donation
The Ocean Pines Garden Club recently presented a $1,000 donation to Ocean Pines Association as part of the club’s annual giving. Since forming in 1976, the Garden Club has helped to maintain Ocean Pines parks, decorate the community at Christmas and, in the past, tend to the Worcester County Veterans Memorial grounds. Gifts and donations from the club have included the Civil War era anchor at the Yacht Club in 1995, the gazebo at Pintail Park in 1998, the two stone benches at the community center in 2009, and two plaques for the Gold Star Program of the Veterans Memorial Foundation in 2014. Over the last year, the club has collaborated with Ocean Pines Public Works on plantings at the North Gate entranceway that have included perennials, a Christmas display for the holidays, and palm trees for the summertime. Tony Howard led that effort for Ocean Pines. “We are so happy to contribute to the beauty of Ocean Pines and hope that our efforts add to the enjoyment of all Ocean Pines residents and visitors,” Garden Club Co-President Ann Shockley said. General Manager John Viola said the Garden Club donation would be used for future beautification initiatives. “We are grateful to the Ocean Pines Garden Club for their dedication and efforts in enhancing the beauty of our community’s North Gate entrance,” Viola said. “Their commitment to creating a welcoming environment has helped to transform this space into a picturesque gateway for all to enjoy.”
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46 Ocean Pines PROGRESS August 2023 LIFESTYLES
The Ocean Pines Anglers Club hosted youths in three age categories from 4-16 along with parents and grandparents at the annual Art Hansen Memorial Youth Fishing Contest July 15 at the South Pond in Ocean Pines. There were 69 youth registered and 94 fish were caught by the group. Trophies were awarded for largest fish in each age category along with prizes for second and third place. Additional awards were given for the most fish caught, and there were two grand prize drawings for a Mike Vitak custom rod and a deep sea fishing trip donated by the Angler Restaurant in Ocean City. The Ocean City/Berlin Optimist Club, Ocean Pines Park and Rec and the Maryland Department of Natural Resources supported the event.
Ocean Pines PROGRESS August 2023 47 LIFERSTYLES
host local youths in Art Hansen fishing contest
Anglers
First place winners by age group, left to right: Age 4-7, Largest, 13.25-inch catfish, Dominic Wasen; Most fish, Reid Landis, seven. Age 8-11, Largest, 12-inch bass, Ben Briles; Most fish, Griffin Landis, eight. Age 12-16, Largest, 19.5-inch bass, Kylar Middleton; Most fish, Isabel Schoonyoung, 19.
Kylar Middleton checks in with Angler judge Bill Long with what would be largest fish in 12-16 age group.
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Grand prize drawing winners, left to right, Mike Vitak with his custom rod and reel winner, Eva Thompson; Mitchell Leisure, Angler trip winner; and Doug Murphy, Angler representative.
Phillips unveils draft 2023-24 budget
Calls for a $200 increase in annual assessment, waterfront dues of $500
By TOM STAUSS Publisher
Senior General Manager Colby Phillips unveiled a proposed Captain’s Cove Golf and Yacht Club budget for fiscal year 2023-24 in a July 27 work session.
It calls for a $200 increase in annual assessments, from $1500 to $1700, and accepts a Waterfront Work Group recommendation for a $500 waterfront assessment, up from the current $200.
The proposed budget, subject to review and approval by the Board of Directors at an Aug. 14 meeting, projects $7,690,556 in operating revenue and $7,217,066 in revenue after cost of goods.
It projects operating expenses of $4,775,591 and an allowance for bad debts of $851,700, together totaling $5,627,291.
Depreciation, principal curtailment and interest expenses add up to $1,070,077.
The result is a budgeted cash flow from operations of $519,697, or 7.2 percent of revenue.
This compares to a projected cash deficit of $258,196 for the current fiscal year, which Phillips said has not been recouped in her proposed budget for next year. Had it been, the annual assessment would have been increased by another $89.37.
The CCGYC fiscal year runs from Oct. 1 through Sept. 30.
In remarks during the July 27 meeting, Phillips said the proposed effort was a collaborative effort with Controller Sara Shifflett and the rest of the property management team. She said the draft includes some change in line items from
Junior lifeguards
current and past budgets.
She also noted that during the process of drafting of the proposed budget that she and Shifflett did not have financials for six months of fiscal year 2022 because of the Troon audit and litigation.
“We have worked this past year updating and incorporating a budget process we feel is conservative and responsible,” she said, adding that it represents more than three months of work, with two or three days of hearings per month, and more than 20 reviews and revisions.
“The recommended dues increases are not taken lightly. The budget is developed ground level up,” she said.
The draft budget some savings in payroll costs at the same time that it reflects the impact of inflation.
In summarizing the budget, Phillips said that operation expense before interest, depreciation and amortization is $1,589,774, or 22 percent of revenues, “which is really good for a capital intensive business.”
Gross income minus the operating expenses/ bad debt minus interest, taxes, depreciation and amortization results in a projected positive cash flow $519,697, or 7.2 percent of revenues.
This proposed operating surplus of 7.2 percent of revenue is lower than it could have been.
“While credit agencies view a 10 percent cash flow value of a very well run and financially sound corporation, and it has helped with receiving loans such as the Marina Club roof, we would have to drive the dues payment to $1800” to reach 10 percent, Phillips said.
“The property management team views a $300 dues increase at this time to be a drastic impact and we will not be recommending that,” she said.
Phillips also commented on the projected loss of $258,000 for the current fiscal year.
“The good news is, with several operational changes made, it is not as bad as we were projecting.,” she said.
Had the property management team decided to recommend recouping that loss next year, dues would have to be increased by another $89.
“The PMT team has not made that recommendation at this time and will leave that as a board discussion,” Phillips said.
She acknowledged that the dues could have
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48 Ocean Pines PROGRESS August 2023 CAPTAIN’S COVE
CAPTAIN’S COVE CURRENTS
Captain’s Cove Golf and yacht Club recently hosted a junior lifeguard class. Participants included, back row, left to right: Gabe Acri, Joshua Nicola, Gemma Nicola, Samantha Lambertson, Brooke Harris, Logan Stapleton, and instructor and Program Manager Flynn Kleinfeller. Second Row, left to right: Luca Yacobucci, Kylie Hickman, Emme Purdy, Gavin Zubko, Jonathan Martin, Will Otwell, Anaya Acri and Connor Saulsbury. Front Row, left to right: Bristol Hickman, Kenzie Purdy, Emily Shrieves, Hunter Shrieves and Jon Otwell.
Budget Fiscal Year 2024
Budget Fiscal Year 2024
Budget Fiscal Year 2024
Proposed Captain’s Cove Golf and Yacht Club 2023-24 Budget
August 2023 Ocean Pines PROGRESS 49
CAPTAIN’S COVE
Source: Senior General Manager Colby Phillips Account Name Operating Revenue & Expense Reforecast 2023 Assessments Dues $4,911,300 $4,342,589 Waterfront Dues $168,000 $68,808 AR Collections from Bad Debt Reserve Net/Shown on Balance Sheet $200,000 $200,000 AR Collections Legal Fees Posted to Member Accounts $95,000 $95,000 Interest Charges to delinquent accounts $575,000 $600,000 Gain on Sales of Lots $1,212 $1,200 Gain on sale of assets $900 $900 Boat Slip Fee $33,600 $23,000 Interest Reimbursement - Declarant $12,827 $21,664 Bulkhead Cure Collections $0 $0 Lot Mowing Fee $105,504 $75,360 Pool Fees (Lessons) $3,000 $3,000 Mailbox Keys $216 $200 Guest Passes (Amenity) $40,000 $38,000 STR Registration Fee $36,400 $0 CC&R Violation Assessment $22,000 $22,390 Disclosure Packets $13,130 $13,000 Environmental Control Committee Application fees $14,528 $14,384 Event Income $3,030 $2,165 Greens Fees $19,100 $55,639 Cart Fees $125,100 $52,000 Pro Shop Sales $5,050 $5,000 Golf Event Income $2,020 $2,000 Memberships/Golf/VSGA $0 $33,947 Marina Club Food & Beverage $612,000 $590,000 Town Center Snackbar $250,000 $235,000 Town Center Retail Beer $41,100 $40,000 Town Center Retail Grocery $52,500 $37,500 Misc Income & Disc (Food, Beverage, & Golf) $9,039 $6,088 MC Banquets $0 $0 Marina Club - Beer $123,500 $125,000 Marina Club - Liquor $157,500 $150,000
Captain's Cove Golf & Yacht Club, Inc. 2024 Proposed Budget Period Range: Oct 2023 to September 2024 Accounting Basis: Accrual Note: Include Zero Balance GL Accounts: No Marina Club - Wine $30,000 $30,000 Marina Club - Retail $12,000 $5,000 Misc Income $16,000 $16,000 Total Operating Revenue: $7,690,556 $6,904,834 Cost of Goods Sold Reforecast 2023 Cost Of Goods Sold-Pro Shop $11,000 $10,000 Cost of Good Sold-Marina Club Retail $6,000 $10,243 Cost Of Goods Sold-Town Center Food & Beverage $90,000 $105,000 Cost Of Goods Sold-Town Center Grocery $21,000 $19,919 Cost Of Goods Sold-Town Center Beer $28,280 $33,000 Cost Of Goods Sold-Marina Club Food & Beverage $231,800 $275,000 Cost Of Goods Sold-Marina Club Alcohol $44,100 $45,000 Cost Of Goods Sold-Marina Club Beer $32,220 $37,500 Cost Of Goods Sold-Marina Club Wine $9,090 $9,000 Total Cost of Goods Sold $473,490 $544,662 Gross Income: $7,217,066 $6,360,172 Golf Expenses Reforecast 2023 Golf Course Maintenance Payroll $186,369 $179,201 Pro Shop Payroll $60,900 $58,553 Maintenance Shop Supplies $7,956 $7,800 Supplies-Pro Shop $7,140 $7,000 Supplies-Golf Course/Small EQT $3,450 $3,000 Equipment Repair/Maintenance-Golf Course $11,550 $11,000 Top Dressing Sand $4,080 $4,000 Bunker Sand/Top soil $3,060 $3,000 Aerification/Fertilizer $4,950 $4,500 Chemicals $34,800 $30,000 Seed $1,440 $1,200 Irrigation repair $7,000 $4,000 Irrigation Computer $2,625 $2,652 Pump House/Course Supplies $7,000 $7,000 General -Golf Events $2,400 $2,400 Golf Cart Equipment Capital Lease Payment $30,744 $20,000 Golf Cart Maintenance $2,220 $2,200 Total Golf Expenses: $377,684 $325,306 Food & Beverage Expenses Reforecast 2023 Town Center Food & Beverage Payroll $140,000 $154,241 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget Licensing & Permits $6,000 $4,000 Cable TV $4,200 $4,200 Equipment Repair/Maintenance $6,000 $8,000 Equipment Rental $24,720 $24,000 Cleaning Supplies $9,270 $9,000 Food & Beverage Supplies $29,500 $40,000 Entertainment $34,200 $36,200 Sales & Use Tax Food & Beverage $0 $0 Paper Goods $11,000 $0 Total Food & Beverage Expenses: $648,430 $724,726 General Administration Operating Expenses Reforecast 2023 Administration Payroll $630,696 $540,000 Mileage reimb/travel $4,635 $4,500 ECC Expenses - Vista Reviews $39,000 $32,659 Marketing $24,000 $48,000 Community Events $23,000 $24,000 Preventative Main. Fire/Life/Safety $3,600 $3,200 IT - Supplies $3,548 $3,445 IT Licensing Subscriptions - CARDS/Toast etc. $116,461 $113,069 Postage-mailings-Iron Mountain-Copier $27,772 $26,963 Transcription Service - G&A - Administrative Supplies $43,760 $42,000 Professional Fees-Audit $30,385 $29,500 Insurance - Exclusive of Workers Comp & Health $196,928 $180,000 Rainy Day Fund $23,176 $0 VAPOAA Capital Reserve Study $15,000 $0 Total General Administration Operating Expenses: $1,181,961 $1,047,336 Legal Costs Reforecast 2023 Legal Fees General $43,260 $42,000 Legal Fees-Collections Member AR $95,000 $95,000 Prof Fees-Legal -Troon Legal Claim $100,000 $190,000 Prof Fees-Legal -Member Litigation $200,000 $100,000 Total Legal Costs Expenses: $438,260 $427,000 Removing AR and General, Legal fees account for $104 of the projected increase. Insurance increases account for $30 of the projected increase. 2024 Proposed Budget 2024 Proposed Budget Security & Pools Operating Expenses Reforecast 2023 Pool/Reception Payroll $153,133 $147,243 Security Payroll $181,968 $314,543 Security Supplies/Uniforms $3,640 $3,500 Pools & Recreation Supplies/Training/Chemicals $49,733 $48,284 Total Security & Pools Operating Expenses: $388,474 $513,570 R&M Operating Expenses Reforecast 2023 Roads & Maintenance Payroll exclusive of WF $343,395 $330,648 Housekeeping Payroll $15,000 $25,000 Maintenance (supplies/uniforms/training etc) $121,536 $118,000 Repair of Existing Roads $97,725 $7,500 Landscaping/Material/Plantings/Maintaining Lots (mow) $102,750 $135,000 Bulkheads Default Cure $20,000 $0 Pest Control $3,744 $3,500 Total R&M Operating Expenses: $704,150 $619,648 Waterfront & Canals Reforecast 2023 Waterfront Payroll $50,000 $27,000 Supplies-Waterfront & Canals $10,000 $115,000 Dredge Repair $38,000 Dredging - Vendor $0 $0 Re-establish Reserve Account $70,000 $0 Total Waterfront & Canals Expenses: Placeholder $168,000 $142,000 Payroll Burden Reforecast 2023 Payroll taxes/FICA - consolidated $185,000 $180,000 ADP Processing fees/Payroll $6,695 $6,500 Medical & Health $302,637 $296,703 Workmans Comp. Insurance $22,310 $21,660 Payroll Tax Waterfront $1,397 $1,356 Total Payroll Burden: $518,039 $506,219 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Health Insurance increased 12% between 2022-23 as well as combining all departments into one budget will account for $35 of the projected increase. Cost increases to supplies as well as the recommended road repairs accounts for $43 of the projected increase. Utilities & Telephone & Trash Reforecast 2023 Utilities-Electric $63,860 $62,000 Utilities-Water/Sewer $82,488 $80,823 Gas, Fuel, Diesel $47,380 $46,000 Propane - All departments $57,890 $56,000 Telephone & Internet $59,740 $58,000 Trash Removal-ALL $35,535 $34,500 Total Utilities, Telephone & Trash Expenses: $346,893 $337,323 Committee Expenses Reforecast 2023 Arts & Craft League Committee $1,000 $1,000 CERT $500 $250 Pot-Luck Committee $1,000 $2,200 Activity Groups $1,200 $0 Total Committee Expenses: $3,700 $3,450 Total Operating Expenses: $4,775,591 $4,646,578 Allowance for Bad Debt: $851,700 $900,000 Total EBITDA: $1,589,774 $813,594 Other Expenses Reforecast 2023 GF Depreciation $480,000 $480,000 WF Depreciation $24,000 $24,000 GF - Principal Curtailment $455,400 $455,400 Interest $110,677 $112,390 Total ITDA: $1,070,077 $1,071,790 Gross Income: $7,217,066 $6,360,172 Operating Expenses & Bad Debt $5,627,291 $5,546,578 Total ITDA: $1,070,077 $1,071,790 Budgeted Cash Flow from Operations: $519,697 -$258,196 7.20% (89.37) $ Note: Adding the areas highlighted to making up the projected $200 increase in dues, you will come up with a higher Budget number then $200. As mentioned in the meeting, there were areas the team worked on for cost savings. A more specific breakdown of your entire dues structure will be shared at the board meeting on August 14th at 4pm. As a reminder, the board approves the budget and sets the annual assessment. 2024 Proposed Budget 2024 Proposed Budget Marina Club Food & Beverage Payroll $380,640 $441,185 Promo $2,400 $2,400 Uniforms - Food & Beverage $500 $1,500 Licensing & Permits $6,000 $4,000 Cable TV $4,200 $4,200 Equipment Repair/Maintenance $6,000 $8,000 Equipment Rental $24,720 $24,000 Cleaning Supplies $9,270 $9,000 Food & Beverage Supplies $29,500 $40,000 Entertainment $34,200 $36,200 Sales & Use Tax Food & Beverage $0 $0 Paper Goods $11,000 $0 Total Food & Beverage Expenses: $648,430 $724,726 General Administration Operating Expenses Reforecast 2023 Administration Payroll $630,696 $540,000 Mileage reimb/travel $4,635 $4,500 ECC Expenses - Vista Reviews $39,000 $32,659 Marketing $24,000 $48,000 Community Events $23,000 $24,000 Preventative Main. Fire/Life/Safety $3,600 $3,200 2024 Proposed Budget Marina Club - Wine $30,000 $30,000 Marina Club - Retail $12,000 $5,000 Misc Income $16,000 $16,000 Total Operating Revenue: $7,690,556 $6,904,834 Cost of Goods Sold Reforecast 2023 Cost Of Goods Sold-Pro Shop $11,000 $10,000 Cost of Good Sold-Marina Club Retail $6,000 $10,243 Cost Of Goods Sold-Town Center Food & Beverage $90,000 $105,000 Cost Of Goods Sold-Town Center Grocery $21,000 $19,919 Cost Of Goods Sold-Town Center Beer $28,280 $33,000 Cost Of Goods Sold-Marina Club Food & Beverage $231,800 $275,000 Cost Of Goods Sold-Marina Club Alcohol $44,100 $45,000 Cost Of Goods Sold-Marina Club Beer $32,220 $37,500 Cost Of Goods Sold-Marina Club Wine $9,090 $9,000 Total Cost of Goods Sold $473,490 $544,662 Gross Income: $7,217,066 $6,360,172 Golf Expenses Reforecast 2023 Golf Course Maintenance Payroll $186,369 $179,201 Pro Shop Payroll $60,900 $58,553 Maintenance Shop Supplies $7,956 $7,800 Supplies-Pro Shop $7,140 $7,000 Supplies-Golf Course/Small EQT $3,450 $3,000 Equipment Repair/Maintenance-Golf Course $11,550 $11,000 Top Dressing Sand $4,080 $4,000 Bunker Sand/Top soil $3,060 $3,000 Aerification/Fertilizer $4,950 $4,500 Chemicals $34,800 $30,000 Seed $1,440 $1,200 Irrigation repair $7,000 $4,000 Irrigation Computer $2,625 $2,652 Pump House/Course Supplies $7,000 $7,000 General -Golf Events $2,400 $2,400 Golf Cart Equipment Capital Lease Payment $30,744 $20,000 Golf Cart Maintenance $2,220 $2,200 Total Golf Expenses: $377,684 $325,306 Food & Beverage Expenses Reforecast 2023 Town Center Food & Beverage Payroll $140,000 $154,241 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget Security & Pools Operating Expenses Reforecast 2023 Pool/Reception Payroll $153,133 $147,243 Security Payroll $181,968 $314,543 Security Supplies/Uniforms $3,640 $3,500 Pools & Recreation Supplies/Training/Chemicals $49,733 $48,284 Total Security & Pools Operating Expenses: $388,474 $513,570 R&M Operating Expenses Reforecast 2023 Roads & Maintenance Payroll exclusive of WF $343,395 $330,648 Housekeeping Payroll $15,000 $25,000 Maintenance (supplies/uniforms/training etc) $121,536 $118,000 Repair of Existing Roads $97,725 $7,500 Landscaping/Material/Plantings/Maintaining Lots (mow) $102,750 $135,000 Bulkheads Default Cure $20,000 $0 Pest Control $3,744 $3,500 Total R&M Operating Expenses: $704,150 $619,648 Waterfront & Canals Reforecast 2023 Waterfront Payroll $50,000 $27,000 Supplies-Waterfront & Canals $10,000 $115,000 Dredge Repair $38,000 Dredging - Vendor $0 $0 Re-establish Reserve Account $70,000 $0 Total Waterfront & Canals Expenses: Placeholder $168,000 $142,000 Payroll Burden Reforecast 2023 Payroll taxes/FICA - consolidated $185,000 $180,000 ADP Processing fees/Payroll $6,695 $6,500 Medical & Health $302,637 $296,703 Workmans Comp. Insurance $22,310 $21,660 Payroll Tax Waterfront $1,397 $1,356 Total Payroll Burden: $518,039 $506,219 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Health Insurance increased 12% between 2022-23 as well as combining all departments into one budget will account for $35 of the projected increase. Cost increases to supplies as well as the recommended road repairs accounts for $43 of the projected increase. Security & Pools Operating Expenses Reforecast 2023 Pool/Reception Payroll $153,133 $147,243 Security Payroll $181,968 $314,543 Security Supplies/Uniforms $3,640 $3,500 Pools & Recreation Supplies/Training/Chemicals $49,733 $48,284 Total Security & Pools Operating Expenses: $388,474 $513,570 R&M Operating Expenses Reforecast 2023 Roads & Maintenance Payroll exclusive of WF $343,395 $330,648 Housekeeping Payroll $15,000 $25,000 Maintenance (supplies/uniforms/training etc) $121,536 $118,000 Repair of Existing Roads $7,500 Landscaping/Material/Plantings/Maintaining Lots (mow) Bulkheads Default Cure $20,000 $0 Pest Control $3,744 $3,500 Total R&M Operating Expenses: $704,150 $619,648 Waterfront & Canals Reforecast 2023 Waterfront Payroll $50,000 $27,000 Supplies-Waterfront & Canals $10,000 $115,000 Dredge Repair Dredging - Vendor $0 $0 Re-establish Reserve Account $70,000 $0 Total Waterfront & Canals Expenses: Placeholder $168,000 $142,000 Payroll Burden Reforecast 2023 Payroll taxes/FICA - consolidated $185,000 $180,000 ADP Processing fees/Payroll $6,695 $6,500 Medical & Health $302,637 $296,703 Workmans Comp. Insurance $22,310 $21,660 Payroll Tax Waterfront $1,397 $1,356 Total Payroll Burden: $518,039 $506,219 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Health Insurance increased 12% between 2022-23 as well as combining all departments into one budget will account for $35 of the projected increase. Cost increases to supplies as well as the recommended road repairs accounts for $43 of the projected increase. Utilities & Telephone & Trash Reforecast 2023 Utilities-Electric $63,860 $62,000 Utilities-Water/Sewer $82,488 $80,823 Gas, Fuel, Diesel $47,380 $46,000 Propane - All departments $57,890 $56,000 Telephone & Internet $59,740 $58,000 Trash Removal-ALL $35,535 $34,500 Total Utilities, Telephone & Trash Expenses: $346,893 $337,323 Committee Expenses Reforecast 2023 Arts & Craft League Committee $1,000 $1,000 CERT $500 $250 Pot-Luck Committee $1,000 $2,200 Activity Groups $1,200 $0 Total Committee Expenses: $3,700 $3,450 Total Operating Expenses: $4,775,591 $4,646,578 Allowance for Bad Debt: $851,700 $900,000 Total EBITDA: $1,589,774 $813,594 Other Expenses Reforecast 2023 GF Depreciation $480,000 $480,000 WF Depreciation $24,000 $24,000 GF - Principal Curtailment $455,400 $455,400 Interest $110,677 $112,390 Total ITDA: $1,070,077 $1,071,790 Gross Income: $7,217,066 $6,360,172 Operating Expenses & Bad Debt $5,627,291 $5,546,578 Total ITDA: $1,070,077 $1,071,790 Budgeted Cash Flow from Operations: $519,697 -$258,196 7.20% (89.37) $ Note: Adding the areas highlighted to making up the projected $200 increase in dues, you will come up with a higher Budget number then $200. As mentioned in the meeting, there were areas the team worked on for cost savings. A more specific breakdown of your entire dues structure will be shared at the board meeting on August 14th at 4pm. As a reminder, the board approves the budget and sets the annual assessment. 2024 Proposed Budget 2024 Proposed Budget Utilities & Telephone & Trash Reforecast 2023 Utilities-Electric $63,860 $62,000 Utilities-Water/Sewer $82,488 $80,823 Gas, Fuel, Diesel $47,380 $46,000 Propane - All departments $57,890 $56,000 Telephone & Internet $59,740 $58,000 Trash Removal-ALL $35,535 $34,500 Total Utilities, Telephone & Trash Expenses: $346,893 $337,323 Committee Expenses Reforecast 2023 Arts & Craft League Committee $1,000 $1,000 CERT $500 $250 Pot-Luck Committee $1,000 $2,200 Activity Groups $1,200 $0 Total Committee Expenses: $3,700 $3,450 Total Operating Expenses: $4,775,591 $4,646,578 Allowance for Bad Debt: $851,700 $900,000 Total EBITDA: $1,589,774 $813,594 Other Expenses Reforecast 2023 GF Depreciation $480,000 $480,000 WF Depreciation $24,000 $24,000 GF - Principal Curtailment $455,400 $455,400 Interest $110,677 $112,390 Total ITDA: $1,070,077 $1,071,790 Gross Income: $7,217,066 $6,360,172 Operating Expenses & Bad Debt $5,627,291 $5,546,578 Total ITDA: $1,070,077 $1,071,790 Budgeted Cash Flow from Operations: $519,697 -$258,196 7.20% (89.37) $ Note: Adding the areas highlighted to making up the projected $200 increase in dues, you will come up with a higher Budget number then $200. As mentioned in the meeting, there were areas the team worked on for cost savings. A more specific breakdown of your entire dues structure will be shared at the board meeting on August 14th at 4pm. As a reminder, the board approves the budget and sets the annual assessment. 2024 Proposed Budget 2024 Proposed Budget Security & Pools Operating Expenses Reforecast 2023 Pool/Reception Payroll $153,133 $147,243 Security Payroll $181,968 $314,543 Security Supplies/Uniforms $3,640 $3,500 Pools & Recreation Supplies/Training/Chemicals $49,733 $48,284 Total Security & Pools Operating Expenses: $388,474 $513,570 R&M Operating Expenses Reforecast 2023 Roads & Maintenance Payroll exclusive of WF $343,395 $330,648 Housekeeping Payroll $15,000 $25,000 Maintenance (supplies/uniforms/training etc) $121,536 $118,000 Repair of Existing Roads $97,725 $7,500 Landscaping/Material/Plantings/Maintaining Lots (mow) $102,750 $135,000 Bulkheads Default Cure $20,000 $0 Pest Control $3,744 $3,500 Total R&M Operating Expenses: $704,150 $619,648 Waterfront & Canals Reforecast 2023 Waterfront Payroll $50,000 $27,000 Supplies-Waterfront & Canals $10,000 $115,000 Dredge Repair $38,000 Dredging - Vendor $0 $0 Re-establish Reserve Account $70,000 $0 Total Waterfront & Canals Expenses: Placeholder $168,000 $142,000 Payroll Burden Reforecast 2023 Payroll taxes/FICA - consolidated $185,000 $180,000 ADP Processing fees/Payroll $6,695 $6,500 Medical & Health $302,637 $296,703 Workmans Comp. Insurance $22,310 $21,660 Payroll Tax Waterfront $1,397 $1,356 Total Payroll Burden: $518,039 $506,219 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Health Insurance increased 12% between 2022-23 as well as combining all departments into one budget will account for $35 of the projected increase. Cost increases to supplies as well as the recommended road repairs accounts for $43 of the projected increase. Account Name Operating Revenue & Expense Reforecast 2023 Assessments Dues $4,911,300 $4,342,589 Waterfront Dues $168,000 $68,808 AR Collections from Bad Debt Reserve Net/Shown on Balance Sheet $200,000 $200,000 AR Collections Legal Fees Posted to Member Accounts $95,000 $95,000 Interest Charges to delinquent accounts $575,000 $600,000 Gain on Sales of Lots $1,212 $1,200 Gain on sale of assets $900 $900 Boat Slip Fee $33,600 $23,000 Interest Reimbursement - Declarant $12,827 $21,664 Bulkhead Cure Collections $0 $0 Lot Mowing Fee $105,504 $75,360 Pool Fees (Lessons) $3,000 $3,000 Mailbox Keys $216 $200 Guest Passes (Amenity) $40,000 $38,000 STR Registration Fee $36,400 $0 CC&R Violation Assessment $22,000 $22,390 Disclosure Packets $13,130 $13,000 Environmental Control Committee Application fees $14,528 $14,384 Event Income $3,030 $2,165 Greens Fees $19,100 $55,639 Cart Fees $125,100 $52,000 Pro Shop Sales $5,050 $5,000 Golf Event Income $2,020 $2,000 Memberships/Golf/VSGA $0 $33,947 Marina Club Food & Beverage $612,000 $590,000 Town Center Snackbar $250,000 $235,000 Town Center Retail Beer $41,100 $40,000 Town Center Retail Grocery $52,500 $37,500 Misc Income & Disc (Food, Beverage, & Golf) $9,039 $6,088 MC Banquets $0 $0 Marina Club - Beer $123,500 $125,000 Marina Club - Liquor $157,500 $150,000
Captain's Cove Golf & Yacht Club, Inc. 2024 Proposed Budget Period Range: Oct 2023 to September 2024 Accounting Basis: Accrual Note: Include Zero Balance GL Accounts: No Account Name Operating Revenue & Expense Reforecast 2023 Assessments Dues $4,911,300 $4,342,589 Waterfront Dues $168,000 $68,808 AR Collections from Bad Debt Reserve Net/Shown on Balance Sheet $200,000 $200,000 AR Collections Legal Fees Posted to Member Accounts $95,000 $95,000 Interest Charges to delinquent accounts $575,000 $600,000 Gain on Sales of Lots $1,212 $1,200 Gain on sale of assets $900 $900 Boat Slip Fee $33,600 $23,000 Interest Reimbursement - Declarant $12,827 $21,664 Bulkhead Cure Collections $0 $0 Lot Mowing Fee $105,504 $75,360 Pool Fees (Lessons) $3,000 $3,000 Mailbox Keys $216 $200 Guest Passes (Amenity) $40,000 $38,000 STR Registration Fee $36,400 $0 CC&R Violation Assessment $22,000 $22,390 Disclosure Packets $13,130 $13,000 Environmental Control Committee Application fees $14,528 $14,384 Event Income $3,030 $2,165 Greens Fees $19,100 $55,639 Cart Fees $125,100 $52,000 Pro Shop Sales $5,050 $5,000 Golf Event Income $2,020 $2,000 Memberships/Golf/VSGA $0 $33,947 Marina Club Food & Beverage $612,000 $590,000 Town Center Snackbar $250,000 $235,000 Town Center Retail Beer $41,100 $40,000 Town Center Retail Grocery $52,500 $37,500 Misc Income & Disc (Food, Beverage, & Golf) $9,039 $6,088 MC Banquets $0 $0 Marina Club - Beer $123,500 $125,000 Marina Club - Liquor $157,500 $150,000
Captain's Cove Golf & Yacht Club, Inc. 2024 Proposed Budget Period Range: Oct 2023 to September 2024 Accounting Basis: Accrual Note: Include Zero Balance GL Accounts: No
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Draft budget
From Page 48
been increased more than $200 to cover costs in the proposed budget.
“As mentioned earlier, we had some areas where we worked on cost savings overall. The four primary areas that make up the proposed increase in dues are $104 for legal member litigation, $65 in insurance premium increases, and $43 for added road repairs. More specific detail of breakdowns will be shared at the Board meeting on Aug. 14 before the Board votes on the budget” she said.
Phillips gave a detailed presentation of details in the budget draft, beginning with operating revenue.
Operating revenue
The draft projects $4,911,300 in assessment revenues, up from the $4,342,589 projected for the current year.
She mentioned that accounts receivable collections are projected to bring in $200,000 after legal fees and other costs are deducted.
Swimming lessons to members are free, so $3,000 in lesson fee revenue would be paid by guests of members.
Better oversight and collection of fees result in projected guest pass revenue of $40,000.
A new short term rental registration fee is projected to bring in $36,4000 to cover the costs of all the administration work that is done from the team.
The property management team has been conducting two or three compliance hearings per month, and the result is $22,000 in projected Environmental Control Committee revenue.
Golf cart fees have been proposed for increases, with revenue expected to grow from $52,000 this year to $125,100 in 2023-24.
The new rates “actually match the fees originally charged in 2002 for a two person golf cart. [CCGYC members] can still walk [the course] for free,” she said.
Golf memberships have been proposed for elimination, as a result of the termination of operating agreement with Troon Golf.
“It is now possible to return to ‘free golf’, meaning there will be no charge to members who walk and play the course,” she said. There will be membership plans for those wishing to bring their own golf cart or use a CCGYC cart for the year.
Phillips said the projected budget for pro shop sales shows “a big decrease from past budgets, as there were items such as non-alcoholic beverages that were placed in this revenue line. This number will be much lower, but you will see that offset show up in the town center retail grocery line,” she said.
Phillips said the management team has optimistically projected $40,000 in net sales from banquets but has not included it in the draft budget.
“It was removed so there [would be] no issues with members having access to amenities being closed,” she said, adding that it’s “still an area that will be discussed.”
Ultimately, it will be a Board decision.
The draft budget projects $612,000 in Marina Club food and beverage income, up from this year’s estimate of $590,000. Another $123,000 in beer revenue and $157,500 in liquor is projected as well, along with $30,000 in wine sales and $12,000 in retail promotional items.
Cost of goods
In the category of cost of goods, Phillips said that Food and Beverage Manager Charlie Getz has been able to reduce expenses, shopping around for better wholesale pricing and using four vendors rather than two.
“Charlie and Executive Chef Josh continuously work on the menu so there is minimal waste from product that is not selling as well as having great inventory control. Cost savings here to the membership,” Phillips said.
She summarized some key points from the draft budget:
• Membership dues accounts for 66 percent of the total operating budget.
• Direct labor costs compare to 29 percent of the gross income. This is remarkably low for the service and amenity business which most run between 25%-43%
• Four percent was added to overall payroll. “Some may have just seen where Accomack County Board of Supervisors is entertaining 7 percent for their employees. 3-5 percent is a normal standard,” she said.
• Payroll expenses have been allocated to each department individually, a departure from past budget years.
Phillips then went through each major area of expense, starting with golf.
Golf/Food and Beverage
She said the golf cart lease cost has doubled because of new carts, “but the maintenance has gone down” for the same reason. Pro shop payroll has been separated from the grill and that “has helped with tee times and customer satisfaction. It did require having additional part-time help for when [Golf Manager] Cole [Scott] needs time off,” she said.
Phillips acknowledged that golf/food and beverage had not been budgeted adequately for 2023 “as we had no actual budget numbers or a lot of familiarity within the team with the payroll when it was created. Charlie [Getz] has been very involved in the budget process this year and we feel good about what is being proposed.
“Hours are adjusted seasonally now to improve the trade between payroll costs and income. This is also done on a daily basis, for example, Thursday with trivia and those without. While revenue changes between the two, so does the incurred costs,” she said.
The property management team considered closing down the town center grill for two days during the winter months, “much like the [Chincoteague] island shuts down, but in order to provide members a local place for a meal, we decided against it and to stay open albeit at potentially reduced profitability. Member services do matter,” Phillips said.
Food and beverage supplies were previously budgeted between $60,000 and $70,000 “and Charlie with the solid inventory processes in place has been able to shave $20,000 to $30,000 off of that number, with cost Savings to members,” Phillips said.
General Administrative
In the area of general administrative expenses, she said that the head count has gone up “but no new positions have been added.” She also said that:
• Team members are reimbursed for personal car use if a CCGYC vehicle is not available for a trip to Salisbury, the Accomack County courthouse, Chincoteague, or the post office.
• Environmental Control Committee expenses are increasing expenses because of detailed reviews of plans.
“The revenue for this expense does not even cover half the expense. It is the desire of the team to increase [offsetting revenues], but as of now, with the ECC including Developer/Declarant representatives, until legal proceedings are finalized, we cannot revisit this,” she said.
• Marketing was budgeted at $63,000 in 202223 2023.
“When we separated from Troon, one thing they offered us was a PR person so we signed on for six months at the suggestion of legal to assist. The team realized after six months that we did not need this resource and we did not renew the contract last February,” Phillips said.
The proposed $24,000 in marketing expense includes the Cove Currents, Island Advertising, social and digital media, in-house promotion of events and activities, and fliers.
• Community events include trivia night which amounts to around $12k. The rest of the $23,000 budget covers the costs of community events
• Licensing subscriptions of $116,461 include Appfolio, CARDS, D3, Frontsteps, Toast, Quickbooks, Adobe, and Microsoft, the latter changed to a cloud-base app. “We actually saw a decrease in our cyber insurance due to going to cloud base,” Phillips said.
The proposed general administrative budget includes $27,772 in postage expense, $43,760 in supplies, and $30,385 for the annual audit.
Phillips said inflation has significantly impacted insurance costs, with this line item excluding workers comp and health insurance increasing from $180,000 estimated this year to $196,928 in 2023-24.
“The team worked three months on updating 15 unique policies, looking for overlapping or redundant coverage and seeing the best costs for coverage,” Phillips said. “Previously we were budgeting around $110,000 and are now looking at $197,000. Our (Directors & Officers) deductible alone went up 500 percent due to lawsuits and will impact how we leverage this coverage,” she said.
Insurance cost increases accounted for $30 of the proposed $200 increase in annual dues, Phillips said.
The general administrative category includes
August 2023 Ocean Pines PROGRESS 51
CAPTAIN’S COVE
To Page 53
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CAPTAIN’S COVE CURRENTS
Draft budget
From Page 51
$15,000 for a reserve study update -- two bids have been received for that -- and $23,176 has been set aside for a rainy day suggested by Cove auditors at two percent of general operational expenses to cover “unforeseen operational expenses.”
Legal Expenses
Legal expenses are projected to increase from the current estimate of $427,000 this year to $438,260 in the new fiscal year. Troon Golf legal expenses are projected to decrease as the the audit of six month of operations concludes, from $190,000 to $100,000.
But expenses related to lawsuits against CCGYC by members and other have increased from $100,000 this year to $200,000 in 2023-24. Excluding accounts receivable legal costs “since they are in revenue and not including general legal since it is an annual expected budget number, the remaining two legal lines make up $104 of the increase in dues,” Phillips said.
Security and pools
In the area of security and pools, pool payroll is projected to increase slightly from $147,243 this year to $153,133 next year, although no positions have been added. The staffing of security has been changed to single staffing of shifts.
“Their mission focus will be on 911 medical response and securing CCGYC assets. You will if you haven’t already, see less patrolling on the roads. This will also reduce fuel costs and extend vehicle life,” she said. Security payroll has been reduced from this year’s estimate of $314,543 to $181,968 in the proposed budget.
Repair and maintenance
In the area of repair and maintenance, the biggest change is a proposed increase in repair of existing roads from this year’s estimated $7,500 expense to $97,725 next year.
But landscaping expense has been reduced from $135,000 to a projected $102,750, resulting from a new mowing vendor expected to begin work in spring of next year.
Phillips referenced a category of expense called “bulkheads defaults cure,” which is incurred when CCGYC is forced to repair bulkheading when an owner refuses or can’t do so. This line item includes $20,000, previously estimated at around $90,000.
“We just found out that the bulkhead on High Sea Drive is being paid for by the mortgage lender. So that leaves one bulkhead cure where we have received the bid and hope to have that started this fall. When those costs are collected back, they will be placed in the bulkhead revenue line established for this. They can take time so may not hit in the fiscal year where it is cured,” Phillips said.
Cost increases for supplies and road repairs adds $43 to the proposed increase in dues.
Other expenses
Phillips said the payroll burden is around 25 percent.
“Health Insurance increased 12 percent between 2022-2023,” Phillips said, and that accounts for $35 of the projected dues increase.
Costs associated with utilities, trash collection and telephone are little changed year-over-year, and committee expenses are modest.
Mondays Aug.
August 2023 Ocean Pines PROGRESS 53
7, 14
21
&
Colby Phillips
54 Ocean Pines PROGRESS August 2023 CAPTAIN’S COVE CURRENTS
Arrest warrants issued for three CCGYC employees
Errant golf ball triggers complaint; hearing set for Oct. 2
By TOM STAUSS Publisher
Arrest warrants have been issued by the Accomack County Sheriff’s Office for Director of Operations John Costello, General Manager Justin Wilder and Golf Manager Cole Scott.
They were served with the warrants on the evening of July 24, following a criminal complaint filed by Cove resident Elizabeth Peters that “the accused were part of a group who came to my house to harass and threaten workers installing my fence.”
An informed source told the Cove Currents that the complaint seems perplexing to those who know the three employees.
“None of them (Costello, Wilder or Scott) has been to her house,”
the source said. “In fact, the only time anyone was (at her house) was when she called 911 for a worker” who had been struck by a golf ball on her arm “and one of our security guards showed up, which is normal protocol.”
The incident occurred on or about July 10, according to the arrest warrants, meaning that almost two weeks went by after the incident before the complaint was filed.
The three initially were scheduled to be appear in Accomack County District Court on Aug. 2 at 1:30 p.m.
However, that appearance has been waived, according to court documents.
Instead, a trial on the merits has been scheduled for Oct. 2 at 11 a.m. in District Court.
They are accused of “unlawfully in violation of Section 1-200. Code
of Virginia, without authority, [did] enter upon the land or premises of Elizabeth Peters under such circumstances or in such a manner as to constitute a breach of the peace of to threaten a breach of the peace.”
The charge is a misdemeanor.
In a recent email, CCGYC Director Tim Hearn said when he first learned of the incident of the golf ball hitting a contractor’s employee at the home of the Peters, he concluded that at most it would result in a workman’s comp claim by the contractor’s employee against the contractor’s insurer.
As worker’s comp is a no-fault type of claim, that is most beneficial to the employee who has been injured while working, Hearn said.
He was very surprised to learn that it’s now an incident involving charges of illegal trespass and a
pending court hearing.
The situation has escalated to where the three employees will be retaining legal counsel and will expect to have those legal expenses paid for by CCGYC.
CCGYC Director and Vice-president Mark Majerus said the association will reimburse the three employees for their counsel of choice.
He declined comments on the merits of the case other than to say it surprised directors and other members of the property management team and the Board.
“In due course we may have some comments,” he told the Cove Currents.
Asked to comment Wilder, too, declined, adding that they he might have something to say about the charges later in the legal process.
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August 2023 OceanP ines PROGRESS 57 CAPTAIN’S COVE CURRENTS
Birckhead plaintiffs continue with legal action
Former CCGYC president says Board changes seem to be emboldening opponents
By TOM STAUSS Publisher
When former Captain’s Cove Golf and Yacht Club president Tim Hearn stepped down as president while retaining membership on the Board of Directors in late June, it was done with the hope that it would calm divisions in the community and lead to an end to the Birckhead et al litigation.
Also resigning was Roger Holland as a corporate vice-president.
Coupled with these resignations, Hearn announced that he and Board colleagues Jim Silfee and Michael Glick would henceforth be recusing themselves from voting during Board meetings, leaving Board decisions to be made by directors
without any ties, pass or present, to CCG Note, the Cove’s declarant/developer.
Previously, Hearn had announced that a working group of Board members and members of the property management team would be formed to advise CCG Note on how to allocate its 1,080-plus votes in the 2023 Board election.
More recently, he has said that if the working group decided not to suggest candidates that CCG Note could vote for, he doubted that the developer would participate in this year’s election [See article on next page for details.]
That scenario may seem unlikely, as CCG Note votes can prevent certain candidates viewed as antagonistic toward CCG Note from winning a Board seat.
That Hearn is even willing to suggest the possibility of the developer not exercising that power to affect electoral outcomes is an indicator of the degree to which the developer is interested in defusing community conflicts.
He would like both CCGYC and CCG Note to be dropped as defendants, effectively ending the legal action. Tim Hearn
These gestures do not appear to be having the intented effect, which Hearn acknowledged in recent comments to the Cove Currents.
“Posts on social media suggest that the litigants and the CCCC (Concerned Citizens of Captain’s Cove) interpret these announcements as indicators that they are winning,” Hearn said. “On the contrary, all it’s really accomplished so far is that the close working relationship between the developer and CCGYC is no longer in evidence, at least until the Birckhead suit is dropped or is resolved.”
Hearn recently disclosed that CCGYC Public Works crews will no longer be able to cross CCG Note-owned property to gain access to Treasure Island, the Cove’s dredge spoil site.
The developer is also taking off the table the possibility that about three acres owned by the developer in Sections 13 and 14 could be set aside and used as a spoil site.
The result of both of these actions is that the Cove’s dredging program for next season is in jeopardy, according to CCGYC vice-president and director Mark Majerus.
Without land access by Public Works to Treasure Island, which reportedly as one year of capacity left before decisions are made to either shutter it as a spoil site or remove the accumulated spoils to a new site, CCGYC won’t be able to schedule dredging for this coming year, Majerus said.
Back in June, Hearn used a colorful metaphor to explain the ramifications of the Birckhead plaintiffs to continue their lawsuit with the CCCC supporting the effort on local social media.
“It is my hope that [the voting Board members] can convince” Concerned Citizens of Captain’s Cove members that “their actions are causing long-term damage to the community. Those CCCC members may make a lot of noise, but their lack of strategy and planning is just creating a ‘murder-suicide’ financial event for themselves and CCGYC.”
He said that dues-paying lot owners are the “murder-corpse,” while the “suicide corpse” is comprised of homeowners who he said “will bear a larger percentage of future assessments as more and more of those dues-paying lot owners default as the community takes many steps back.”
58 Ocean Pines PROGRESS August 2023 CAPTAIN’S COVE CURRENTS
But Hearn said that CCCC members are miscalculating if they believe their actions are taking a toll on the developer/declarant.
On the contrary, “those same actions are just making the Declarant’s profitability more likely, as it lowers the value of the unfinished lots CCG Note continues to purchase as it assembles blocks of lots to sell to builders.
“In addition, the CCCC faction seems to have no appreciation of how the collaborative discussions between the declarant and non-declarant property owners have led to lower operating costs, fewer capital expenditures, and increased cash flow for CCGYC over the past nine years, even though all of them were discussed and approved in open session,” he said.
Hearn said that if these lawsuits against CCGYC and CCG Note are not dropped, “I don’t see any willingness by the Declarant in continuing those [cooperative] efforts, as they will deploy those resources towards continuing its winning streak in the courts, where the bluster and disinformation campaign by CCCC and the Birckhead et al group continue to be exposed for being empty threats with no legal basis.”
Hearn said should the plaintiffs voluntarily drop their suits, CCG Note would be willing to step up and make land it owns in Sections 14 and 15 available for use as a dredging spoil site, either as a location for the transfer of spoil from Treasure Island, which has reached capacity and can no longer be used, or as a new dredge spoil disposal site.
Conversely, if the litigation continues, the developer won’t be willing to make its land available, thereby forcing the association to incur substantial cost in finding an alternative, Hearn said.
Hearn says it’s possible
CCG Note won’t vote its lots in this year’s Board election
By TOM STAUSS Publisher
It would be a seismic shift in governance in Captain’s Cove, but director and former Captain’s Golf and Yacht Club president Tim Hearn says it’s possible that CCG Note, the community’s developer/declarant, might not vote the 1080-plus lots its owns in this year’s Board of Directions election.
It will depend on whether a working group of Operating Committee members and senior members of the Property Management Team formed to offer advice to CCG Note on how to allocate CCG Note votes in the election actually comes up with a slate of candidates it can recommend.
The members of CCG Note who serve on the CCGYC Board of Directors played no part in the selection of Operating Committee memer
“If the working group doesn’t come up with candidates it recommends, then I would think that CCG Note would probably decide not to vote the properties that they own through Note,” Hearn said.
Hearn is not a stake-holder in CCG Note, but offers real estate brokerage services to Glick and Silfee in the Baltimore area where all three are based.
In June, Hearn announced that he, Glick and Silfee would be step-
ping back from participation in Cove Board activities, with Hearn also retiring as president. That was followed with CCG Note member Roger Holland also resigning as a vice-president of CCGYC.
He said they would be recusing themselves from votes, leaving the remaining directors as the Cove’s primary policy-makers. Directors whose votes will control outcomes are Frank Haberek, Pat Pelino, George Finlayson, and Mark Majerus, with alternate Dave Felt also voting.
During the June 19 Board of Directors meeting, Hearn, who was
presiding for the final time as president, announced that the directors with former or current ties to CCG Note would be seeking the recommendation of a working group of Operating Committee members and senior members of the Property Management Team on how to allocate CCG Note votes in the annual Board election.
Should CCG Note not participate in the election with its 1080 votes, then the 2,500 +- eligible residential property owners in the Cove would be in a position to elect candidates solely of their choosing, with poten-
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That decision will depend on whether a working group of directors and members of the property management team make a recommendation on whom the developer should support
Developer curbs access by CCGYC staff to Treasure Island site
Decision could affect dredging program for next year because access to the site is needed to facilitate clean-out
By TOM STAUSS Publisher
The era of a close working relationship between CCG Note, the Captain’s Cove developer/declarant, and the Cove’s property owner association appears to be over, at least until such time as ongoing lawsuits are either dropped or resolved in court.
Last month, CCGYC Director Tim Hearn, having announced his resignation as association president, said CCG Note is no longer willing to make land it owns in Sections 14 and 15 available for use as a dredging spoil site, either as a location for the transfer of spoil from Treasure Island, which is nearing capacity and will likely reach capacity after the next dredging season, after which it can no longer be used, or as a new dredge spoil disposal site.
Restoration of that option is contingent on the Birckhead plaintiffs dropping their pending suit against CCG Note, Hearn said, or a resolution of the suit favorable to the defendants.
More recently, CCG Note has announced another action it is taking that represents a departure from a close working relationship with Captain’s Cove Golf and Yacht Club, the community’s POA.
At the July 20 meeting of the waterfront working group, CCGYC Director and working group member Mark Majerus announced that CCG Note was withdrawing its permission for CCGYC Public Works crews to pass through Note-owned property on the mainland side of Treasure Island, the community’s dredge spoil site that is near capacity.
Access to Treasure Island would be needed in order for CCGYC crews to begin work on a cleanout of the spoil site so it can continue to be used for that purpose, Majerus said.
He went on to say that since there is no easement right to cross CCG Note’s land, and if there is no resolution of the Birckhead litigation by the fall, the CCGYC’s dredging program might not resume next year in time for the 2024 boat season.
CCG Note
From Page 59 tially far-reaching consequences.
One of the announced candidates for the Board in this year’s election is Tom Reidy, who was a plaintiff in a former lawsuit against the association and Declarant, subsequently dismissed.
He’s also a plaintiff in the Birckhead et al lawsuit filed against the association.
“Restrictions are in place while CCG Note is being named as a defenant in the Birckhead suit,” Majerus said.
While Cove resident Dave Keiffer said that there’s one year left in capacity at Treasure Island before it needs to be cleaned out, Majerus said access to Treasure Island is needed if dredging is to resume. “Our staff has been notified [that it no longer is allowed to cross the CCGNote owned parcel,” he said.
Even if CCG Note had continued to allow CCGYC crews to pass through its property, the POA is facing headwinds in its effort to continue with the canal dredging program.
Majerus said the cost of cleaning out Treasure Island has been estimated at $560,000, and that doesn’t include acquiring a new site for the removed spoil. The $560,000 could turn out to be lower, as the working group has questions about the estimate and has requested details about how it was derived.
“We’ve not identified a new site,” he said, adding that the Cove would need three-plus acres as either a new spoil site or depository for the spoil
from a cleaned-out Treasure Island.
The CCG Note-owned land in Sections 13 and 14 would be ideal for that but that, too, has been taken off the table while the Birckhead litigation remains pending. Majerus said that any new spoil site outside of Captain’s Cove would be cost-prohibitive.
In his remarks in June, Director and former CCGYC President Tim Hearn said the faction within the Cove that has been criticizing the Board, management and the developer and taking the POA and CCG Note to court “seems to have no appreciation of how the collaborative discussions between the declarant and non-declarant property owners have led to lower operating costs, fewer capital expenditures, and increased cash flow for CCGYC over the past nine years, even though all of them were discussed and approved in open session.”
Hearn said that if these lawsuits against CCGYC and CCG Note are not dropped, “I don’t see any willingness by the Declarant in continuing those [cooperative] efforts, as they will deploy those resources towards continuing its winning streak in the courts, where the bluster and disinformation campaign by CCCC and the Birckhead et al group continue to be exposed for being empty threats with no legal basis.”
Hearn said should the plaintiffs voluntarily drop their lawsuits, CCG Note would be willing to step up and make land it owns in Sections 14 and 15 available for use as a dredging spoil site, either as a location for the transfer of spoil from Treasure Island, when it reaches capacity and can no longer be used, or as a new dredge spoil disposal site.
60 Ocean Pines PROGRESS August 2023 CAPTAIN’S COVE CURRENTS
Beautiful day in the Cove
Beautiful day here at the Marina Club! Kinsley, Brinley, Kaylee and Lacey enjoying frozen non alcoholic strawberry daiquiri! Visiting cove grandma Isabelle!
Process launched that could lead to electronic voting
Property management team to tweak election procedures this year to ease member concerns
By TOM STAUSS Publisher
AJuly 20 work group meeting called to discuss the possibility of converting annual Board of Directors elections to on-line or electronic voting, or perhaps a hybrid of traditional paper ballots and on-line voting, focused as much on current year election issues as it did e-voting.
Perhaps that was to be expected, as this year’s balloting will be handled the usual way, with paper ballots only.
Last year’s election was controversial among some in Captain’s Cove, particularly as it relates to the way proxy voting was addressed in the election materials. There was also confusion among some residents about where to return filled out ballots. Both issues will be clarified this year to make this year’s election season as seamless as possible.
General Manager Justin Wilder led off the meeting setting out a path to accomplish e-voting in the future.
He said an initial step would be to reach out and identify vendors who can handled e-voting. A key to that will be to contact organizations roughly the same size as Captain’s Cove Golf and Yacht Club, at least those with more than 1,000 members, to see how they’ve handled conversion to e-voting. Also important will be to contact organizations whose state laws are similar to those that govern property owner associations in Virginia.
Wilder said that e-voting in Captain’s Cove will need to take into account that there is a significant portion of the Cove’s 2800 Class A members who do not live in Captain’s Cove year-round. This may include homeowners who are summer residents or CCGYC members who own unimproved properties.
All have equal right to participate in annual Board elections.
Wilder said that in investigating the issue of e-voting it will be important to find organizations “with a similar blend of residents and non-residents.”
The purpose of an investigation into e-voting will be to determine whether it will lead to improvements in the election process that will be noticed and appreciated by members, and whether e-voting cost produce cost-savings and the perception of greater transparency.
He said that once it is determined that e-voting or a hybrid system of paper ballots and e-voting is practical, “we will want to change the by-laws to accommodate what we want to accomplish.”
There was little reaction to Wilder’s presentation, with some meeting participants asking if there could be some discussion of current election procedures.
While Wilder said the work group was set up to deal with future e-voting, during discussion he referred to one issue he found particularly troublesome last year. That had to deal with questions about proxies, which he said in “the nine years he had been in Captain’s Cove” prior to last year’s election had never been an issue.
He said he was uncertain about why the issue rose to prominence last year.
After some further back-and-forth about proxy voting, Wilder said he had an idea about how some of last year’s confusion could be avoided this year.
After Senior General Manager Colby Phillips mentioned that the confusion involved the inclusion of proxies in the same election package as the ballots, Wilder suggested that could be remedied by two separate mailings.
One would be the package that includes ballots and biographies and other information about candidates.
A second mailing would replace the traditional post card that is sent out reminding members
of the annual meeting, when election results are usually announced.
The second mailing could now be an envelope instead of a post card, with the annual meeting reminder and proxies included along with instructions on how to assign proxies to those attending the annual meeting.
Wilder also announced that he would be hosting a Zoom meeting open to all CCGYC members with questions about how to cast ballots and otherwise participate in the election.
Aside from the tweak to the way proxies will be provided to members and the Zoom meeting to be hosted by Wilder, it would appear that the current Board of Directors is not anxious to make any substantial change to election procedures this year.
“We’re on a tight timeline,” said working group member and CCGYC secretary Pat Pelino.
In a shift back to a discussion of on-line voting, Cove resident Tom Barton said he has identified an elections vendor based in Minnesota that is willing to set up a demonstration of an election process that would include e-voting and paper ballots, or what’s known as a hybrid system.
Wilder seemed intrigued by Barton’s suggestion and asked him to send the information Wilder’s way for follow-up.
Senior General Manager Colby Colby Phillips offered a summary of the meeting, citing the change in handling proxies using separate envelopes “to try to make it less confusion.”
She also recommended that Cove residents read recent editions of the Ocean Pines Progress to find out what the Ocean Pines Association has done or plans to do in the area of e-voting.
“There’s a lot of good information about e-voting [in the Progress,]” she said.
Both Barton and Cove resident Larry Berger expressed the view that a hybrid election system would probably work well in Captain’s Cove.
CCG Note responds again to Birckhead plaintiffs
Motion to compel production of documents rebutted
By TOM STAUSS Publisher
The latest filing by CCG Note in the ongoing Birckhead et al lawsuit is the most recent example of the defendants pushing back on the argument that the developer/declarant has failed in its obligation to make annual payments of $50,000 to Captain’s Cove Golf and Yacht Club as part of the 2012 settlement agreement.
In the new filing by CCG Note attorney Mark Baumgartner, he is responding to the plaintiffs’ recent motion to compel the defendants to produce various documents related to the claim that the $50,000 annual payment is owed.
“Factually, it is undisputed that CCG Note has not been paying the Association $50,000 per year since 2012. That is because CCG Note does not have an obligation to pay the Association $50,000 per year under the 2012 Settlement Agreement. Because the fact that CCG Note has
not been paying $50,000 per year is undisputed, there is no need for additional, unduly burdensome discovery that is only relevant to establish that fact — a fact to which CCG Note will stipulate,” Baumgartner writes.
The plaintiffs are seeking CCG Note’s general ledger and bank statements since 2012 that Baumgartner says is not reasonably calculated to lead to the discovery of admissible evidence and is unduly burdensome, primarily because there is no dispute that the $50,000 per year hasn’t been paid.
Baumgartner repeats what by now is a familiar argument in this case, that none of the conditions that would require the $50,000 payments have been met.
The first condition is the existence of debt service on the “Association’s loan to build roads within Sections 1 through 13 of Captain’s Cove.” The
To Page 62
August 2023 Ocean Pines PROGRESS 61 CAPTAIN’S COVE CURRENTS
Rebuttal
From Page 61 second condition that would trigger CCG Note’s obligation is the completion of all buildable roads in Captain’s Cove.
Baumgartner contends the first obligation hasn’t been satisfied and never can be.
“This is because the directors of the Association in 2012 misrepresented to CCG Note that the Association already had a loan to build roads within Captain’s Cove. Indeed, the 2012 Settlement Agreement references ‘the Association’s loan,’ and not a future loan to be obtained by the Association.
“Unbeknownst to CCG Note, however, the Association did not actually have such a loan when it entered into the agreement despite representations to the contrary,” he continues. “Setting aside the effect of the misrepresentation ..., the bottom line is that there was never a loan on which CCG Note could pay $50,000 of annual debt service.”
He also says it is undisputed that all buildable roads in Captain’s Cove have not been completed.
According to Baumgartner, the plaintiffs are relying on the minutes from a Jan. 24, 2013,
Board of Directors meeting to argue that the obligation to pay $50,000 had been triggered.
But the lawyer says the minutes make clear that CCGYC did not have a loan in place when that meeting occurred. Indeed, there was a motion offered during the meeting from then CCGYC President Tim Hearn requesting L&H, at the time the association’s accounting firm, to pursue a relationship with a banking institution that would provide a line of credit in the range of $500,000 to $1 million toward road construction.
The second condition has not been satisfied, either. It is undisputed that not all of the buildable roads have been completed within Captain’s Cove. Because neither condition precedent has been satisfied, there is no present obligation for CCG Note to pay $50,000 per year under the 2012 Settlement Agreement, according to Baumgartner.
Plaintiffs also cite to the fact that the Association’s “financial records from 2013 through 2019 reveal varying dollar amounts of interest paid on a loan as ‘Roads Interest on LOC (line of credit)” and “Roads Interest — LOC (line of credit.”
Baumgartner disputes that these notations of interest paid triggered the obligation to make
payments of $50,000 per year to CCGYC.
“Despite having no obligation to do so, CCG Note, has on various occasions, voluntarily provided funds for [the Association] to maintain and improve the roads within Captain’s Cove,” he says.
He argues that even if this Court finds that it should order the Association to attempt to collect from CCG Note, the subsequently filed action by the Association against CCG Note would be the forum where the actual liability and defenses to that liability are litigated.
“There is nothing to compel with respect to Plaintiffs’ discovery requests as written,” he later says. “There is nothing to produce in response to certain of the Plaintiffs’ discovery requests as written. ... Plaintiffs seek information and documents that don’t exist in a number of the discovery requests — namely records pertaining to (and only to) the “payments.” No such records exist because Plaintiff has never made any “payments” under the 2012 Settlement Agreement,” according to Baumgartner. For that reason and other reasons the defendant will raise during oral arguments, Baumgartner says the Court should deny plaintiffs’ motion to compel.
62 Ocean Pines PROGRESS August 2023 CAPTAIN’S COVE CURRENTS
Ward says CCGYC Board was not ‘flirting with bankruptcy’ in 2012
Hearn renews claim that association was close to insolvency
By TOM STAUSS Publisher
Former Captain’s Cove Golf and Yacht Club director John Ward is taking exception to a comment in the July 2023 Cove Currents in which it was said that the Board of Directors in 2012 was “flirting with bankruptcy.”
“I was on that Board and this never was the case,” Ward said in a recent email to the Currents. “I was on the finance committee [at that time] and we had $600,000 at Morgan Stanley and two bank accounts
with cash to operate daily. This is simply not true,” he said, adding that “our 2011 Board did not lose $600,000 dollars.”
Ward also said it was reported that CCGYG had unpaid dues totalling $10 million dollars a decade ago.
That number has been whittled down significantly in the years since, but arrearages remain a challenged for the association.
“Another fact is that since I was on the Board 12 years ago, the [annual] dues have just about doubled,”
Ward said.
CCGYC Director Tim Hearn, who had made the remarks quoted in the article Ward cited, in response to Ward said he [Hearn} never said that CCGYC was bankrupt, which is a legal designation after a court filing.
“I’ve said the association was close to insolvency back then,” he said. “It might have had $600,000 in a Morgan Stanley account, but we [the Board that took over CCGYC governance in 2012] discovered more than $700,000 in debt obliga-
tions and unrecorded prepayments for next year’s assessments, that were not reported on the balance sheet.
“We also discovered that the former Board members had been paying themselves and other volunteers substantial amounts of money, to the tune of $200,000 over the prior four years, even while the annual operating losses were escalating to over $1,000,000 in the same four year period, with no capital investments being made to the physical assets,” Hearn said. “That is what I meant by close to insolvency.”
He said that in the years since CCGYC has more than $1 million in the bank at any time during the year and that finances have stabilized and improved to where a local bank is willing to lend the Cove when the need arises.
August 2023 Ocean Pines PROGRESS 63 CAPTAIN’S COVE CURRENTS
64 Ocean Pines PROGRESS August 2023 CAPTAIN’S COVE CURRENTS