December 2017
www.issuu.com/oceanpinesprogress
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THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY COVER STORY
LEASING OR AN IN-HOUSE CONSULTANT? Clubs committee: Status quo no longer acceptable at Yacht Club restaurant By ROTA L. KNOTT Contributing Writer embers of the committee charged with advising the Board of Directors on food and beverage operations say the Ocean Pines Association is not capable of running the Yacht Club on its own and should hire a restaurant consulting firm or lease the facility to a local restaurateur. “Ocean Pines is a varied community of retired and younger families and the one thing they all want is good food prepared correctly in a timely fashion by servers that are attentive and friendly,” the committee says in a just completed annual report. “While their tastes and discretionary incomes may vary, we all want the Cove/Yacht Club to succeed and to be proud that we can bring family and friends and rest assured that they will be happy with their dining experience.” As part of its 14-page report detailing its activities during the last year, the Clubs Advisory Committee made a series of suggestions for improvements at the dining clubs. Topping the list of recommendations for board action was to either find a consultant to help the OPA make a go of it or lease the Yacht Club to someone who knows how to run a restaurant. Willingness to consider the leasing option is a first for the committee, perhaps a reflection of its frustration with the inconsistency of food quality and service at the OPA’s premier restaurant amenity. The committee didn’t pull any punches in its report regarding the failings of the Yacht Club. But the committee said it may be possible to have a high functioning restaurant to serve its members if the OPA finds the right consultant. “Although many will argue that Ocean Pines is not capable of running a restaurant, and the past couple
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Abi’s DINER
years may lend credence to that argument, others feel that with the proper help, it can be done,” the committee said. Improvements to the amenity’s organizational structure are a must, the report says. A restaurant manager must be planning everything months in advance, including celebrations and menu changes. The committee cited as an example Veterans Day, which is celebrated in most restaurants, but not the Cove. “With all the veterans in OP land this place should be packed and a memorable experience will be shared and then you get repeat business. Make people feel welcome and wanted,” the report advises. A consulting firm would develop a business plan, hire and train the entire staff as needed, and oversee the operation until the OPA’s food and beverage manager is able to take over the day to day operations, the committee suggests. “If needed, the consultant would be available to make adjustments to the plan to assure it continues to be successful,” according to the report. The committee says one of its new members has extensive restaurant and consulting experience that aided the committee in determining how a consulting firm would be able to help support OPA food and beverage operations. The member has owned and operated three restaurants, two catering companies, and a deli over a 20-year period. He then went on to work for a consulting firm outside of Chicago as a senior business analyst. Part of his job was to analyze specific problems at failing restaurants and develop a plan to fix them. Many of those issues are the same ones currently affecting the Clubs of Ocean Pines, according to the year-end report.
Trash collection rate jumps 22.72 percent under new contract
The Board of Directors in its regular monthly meeting Nov. 30 approved a new three-year contract with Republic Services of Delmar for the collection of household trash and trash generated by the Ocean Pines Association at its various venues. The board unanimously accepted the recommendation of General Manager John Bailey to approve the proposal submitted by Republic Services over that of Chesapeake Waste Management. ~ Page 9
Bailey refocusing efforts on 2nd floor of Country Club General Manager John Bailey is refocusing his energies on making improvements to the second floor of the Country Club rather than both the upper level and the entrance area, a change in focus that might result in the reopening of the second floor sometime in 2018 in time for Ocean Pines’ 50th anniversary ~ Page 12 events.
Group proposes ‘quiet pool’ rules at Yacht Club
A group of Ocean Pines residents aggrieved by a Board of Directors’ decision earlier this year to open the formerly adults-only Yacht Club “Oasis” pool to all age groups seems reconciled to the notion that restoring the pool’s adults-only status is unlikely to occur. Instead, the working group, formed and headed by Ocean Pines resident Gary Miller, has recommended as a “best option” the creation of a what it calls “a true ‘Oasis” pool atmosphere at the Yacht Club, to be accomplished by instituting strict rules of conduct that would apply to everyone using that pool.
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4March Ocean Pines PROGRESS 3, 2017
December 2017
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OCEAN PINES BRIEFS
New $2 drop-in rates for pickleball in effect
Shortly after the arrival of new General Manager John Bailey, members of the Ocean Pines pickleball club received an early Christmas present of sorts: a reduction in the rates they are charged for scheduled drop-ins at the Community Center’s gymnasium. The rates are $2 for pickleball members, $3 for non-resident non-members, and $5 for non-resident non-members. Scheduled drop-in times through the end of December are Sundays 1-5:30 p.m., Tuesdays, 7:30-9:30 p.m., and Wednesdays 2-5 p.m. Additional drop-in times to be announced will carry a flat rate of $4 for all comers. Club members had been lobbying for elimination of the drop-in fees, on the premise that their annual membership dues should cover both indoor and outdoor play. The Board of Directors early this year decided to eliminate what had been a combined indoor-outrate, lowering the annual rate in order to stimulate growth while imposing
fees on use of the gymnasium for indoor play. Club members hope that the old structure will be restored in the budget for 2018-19, if not before. Bailey probably could generate a lot of goodwill among the pickleball membership if a modified version of an annual membership could be devised for the remainder of the fiscal year that, in exchange for a onetime add-on fee, would entitle members to use the indoor courts with no drop-in fees. Whether it’s practical to do that with about four and a half months remaining in the member is a question. Club members also continue to hope that the gymnasium can be modified to include three courts, which had been in place prior to the installation of new flooring. With only two courts playable, players experience wait times longer than they’re used to before having an opportunity to play. Former Acting General Manager Brett Hill had rebuffed the pickle-
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ball players in their efforts to obtain a return to three courts, but they’re hopeful that Bailey will find a way to accommodate them.
Multi-family amenity memberships at zero
There were lots of changes in the amenity membership structure this past year, including one innovation that its designers hoped would generate interest among Ocean Pines residents and property owners. The $2500 multi-amenity family membership was supposed to encourage families to buy pre-paid access to all of Ocean Pines amenities for a cost only $500 more than the $2,000 charged for family golf. The multi-family rate didn’t include golf cart fees. According to the amenity report as of Oct. 31, no household in Ocean Pines had stepped up to buy a multi-amenity membership. A combination racquet sports membership at a rate of $625 for families and $400 for individuals fared better. There were five family combinations and four individual combinations sold, compared to the budget guesstimate of one family and two individuals. This exceeded budget by 332 percent, generating $4,725 in revenue versus the $1,425 budgeted. A few other membership categories produced goose eggs on the membership report. So far, no one has stepped up to a buy a winter family aquatics membership at $445.
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Special reduced rates for firsttime memberships in tennis and platform tennis failed to garner any takers as of Oct. 31. Pickleball junior memberships at a bargain rate of $55 also stand at zero.
Financial results in 1000s may be abandoned: Supik
Ocean Pines Association Treasurer and Chief Financial Officer Pat Supik summarizes monthly financial results in a PowerPoint presentation during monthly meetings of the Board of Directors. Numbers are presented somewhat awkwardly. For instance, according to her recent report, cash available for operations as of Oct. 31 stood at $2,137, compared to $3,213 at the same time in 2016 and $2,356 in 2015. A missprint? A few zeroes lost at the bank among friends? Actually, it’s simply that financial data is presented in thousands. Mentally, audience members or those watching video from home are supposed to add three zeros to the numbers presented, so that the $2,137 in cash available for operations is in fact $2,137,000. Supik in a recent e-mail to the Progress says she may begin presenting the numbers with all the zeroes present at the the next board meeting. Stay tuned. Some of the schedules presented in the official monthly financial reports posted on the OPA Web site also post results in thousands. No word on whether these schedules, too, will be formatted to include all the digits. q
OCEAN PINES
OCEAN PINES
From Page 5
Reserve study group updating asset list
While it’s been clear for months that a working group established many months ago to produce a new and improved capital improvement plan for Ocean Pines won’t accomplish that objective any time soon, it does appear that the OPA’s asset list will be massaged and items that shouldn’t be there will be removed just in time for the 2018-19 budget review process set to begin in January. According to OPA Treasurer Pat Supik, who updated the Board of Directors on the progress of the working group during her Nov. 30 financial report, consultant Doug Green met with a subset of working group members recently to scrub the outdated assets. This scrubbing in turn is supposed to lead to a more accurate list of depreciable assets so that the OPA’s depreciation calculations are more accurate. The board recently increased the asset
amount from $1000 to $5,000 (excepting new computers, apparently) so that lower cost items no will appear on the asset list. Instead, they will be treated as operating expenses. The working group so far has failed to produce a future capital assets list including items proposed for the 2018-19 draft budget, but that won’t prevent General Manager John Bailey from coming up with his own list, fed to him by department heads and, perhaps, older versions of CIPs prepared by previous general managers. The last one was produced but never ratified by former General Manager Bob Thompson. Acting General Manager Brett Hill never generated one in his one-year tenure. Whether Bailey will produce one remains to be seen.
OPA, Bailey still grappling with back office software
Perhaps awaiting input from a new director of finance expected to arrive early next year, the Informa-
tion Technology Working Group and General Manager John Bailey are in the process of reviewing competing versions of back office financial software. At the Nov. 30 meeting of the Board of Directors, Bailey said he and the IT group had just reviewed two software packages and that another two would probably be scheduled in the following weeks. He didn’t say when he expected that he and the working group would have a recommendation to the Board of Directors. The new director of finance, Steve Phillips, a 19-year finance and accounting veteran, is expected to be on the job in Ocean Pines on Monday, Jan. 3.
Some tweaks in procedure at OPA board meetings
OPA Director Ted Moroney, given the unenviable chore of serving as the board’s liaison to the Bylaws and Resolutions Advisory Committee, spent considerable time outlining some changes to board resolutions B-01 and B-04 during the Nov. 30
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board meeting. Some of the changes he attempted to explain, in excruciating detail, have already been implemented. For those interested, the amended resolutions appear on the OPA Web site under Forms and Documents, board packets, and probably can be found by employing the site’s search function. The amended resolutions simply will bring the authorizing resolution into conformance with actual practice, a somewhat Alice-in-Wonderland approach but not outside the norm in Ocean Pines. One change: Old business that had routinely appeared on meeting agendas now shows up as unfinished business. There tends to be a lot of that in Ocean Pines, but for some reason there was none scheduled for discussion during the Nov. 30 meeting The new business item that also has routinely appeared on agendas over the years has not been changed. The board also is implementing a change in the way proposed changes in board resolutions are treated q
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From Page 6
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on first and second readings. Traditionally, the board voted on a proposed or amended resolutions on first reading, with the result often construed as approval. Technically, the vote on first reading only denoted board acceptance of the proposed draft for further review, with approval occurring only on the second and final reading. In an attempt to avoid any confusion on what first reading really means, and to encourage property owner input, the board has decided not to vote on a proposed draft when it’s presented on first reading. That’s supposed to give directors and OPA members time to review the proposed changes before the board considers and votes on them as part of the second reading process. Moroney joked after his laborious recitation of proposed changes in the applicable resolutions that OPA members would be “tested” on their comprehension of what he had just said.
Grand opening of platform tennis courts celebrated with Nov. 28 ribbon-cutting Facility includes ten tennis courts, six platform tennis courts, eight pickleball courts and new playground
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recognition of its two new platform tennis courts in Ocean Pines. The citation was signed by Maryland State Senator Jim Mathias, of Legislative District 38. Local dignitaries State Delegate Mary Beth Carozza and Worcester County Commissioner Chip Bertino were also in attendance. “Ocean Pines is responding to the demand for high-quality racquet sports facilities by providing an unprecedented number of platform tennis, pickleball and tennis courts to its residents and guests,” Denise Sawyer, marketing and public relations director for the Ocean Pines Association, said. “We would like for local dignitaries, residents and visitors to become ambassadors for our racquet sports complex and share all that we have to offer.” The expanded sports complex now includes ten tennis courts, six
o commemorate the completion of what is now the largest racquet sports complex in Worcester County, the Ocean Pines Association celebrated with a ribbon-cutting ceremony on Tuesday, Nov. 28, at the Manklin Meadows Racquet Sports Complex. “This addition enhances the claim that Ocean Pines is leading the way in community-based racquet sports on the Eastern Shore and so doing we continue to build a reputation for being a great place to visit, to live and to absolutely to play,” Ocean Pines General Manager John Bailey said. More than 100 people were on site to view the state-of-the-art facility at the ribbon cutting event. The Maryland General Assembly issued an official citation offering congratulations to Manklin Meadows Racquet Sports Complex in
a factor in the decision whether to tical challenges remain and will be Instead, he indicated that acousimminent. suggests that such changes are not during the Oct. 27 board meeting ier on the ears, but Bailey’s response tertainment on the second floor easSuch changes could make live en-
platform tennis courts, eight dedicated pickleball courts, a full-service pro shop, a basketball court, a newly installed playground, community gardens and ball fields with bleachers. The Ocean Pines Public Works Department, with direction from Facilities Manager Kevin Layfield, worked closely with Total Platform Tennis, an Ohio-based platform tennis court construction company, to complete the $93,800 platform tennis expansion project. “It’s a team effort,” Layfield said. “Public Works, Terra Firma of Delmarva and Total Platform Tennis all worked efficiently to construct the two new courts that will serve as a sports hub for the Ocean Pines community.” The ribbon cutting ceremony was broadcasted live on local radio, The q
OCEAN PINES BRIEFS
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8 Ocean Pines PROGRESS
OCEAN PINES OCEAN PINES BRIEFS
December 2017
From Page 7
Board takes action on three CPI cases
Ribbon-cutting
Left to right, Ocean Pines Recreation and Parks Manager Debbie Donahue, Ocean Pines Marketing and PR Director Denise Sawyer, Worcester County Commissioner Chip Bertino, Ocean Pines Board Director Tom Herrick, Maryland State Delegate Mary Beth Carozza, Ocean Pines Board Vice President Cheryl Jacobs, Dave Smith, Jim Freeman, General Manager John Bailey, former Ocean Pines Board Director Dave Stevens, Ocean Pines Recreation & Aquatics Director Colby Phillips, Senator Jim Mathias, Ocean Pines Chamber of Commerce Executive Director Ginger Fleming and platform tennis members celebrated the opening of new platform tennis courts at the Manklin Meadows Racquet Complex Nov. 28.
Platform tennis courts From Page 7
Vault 103.5 FM. Door prizes, food and platform tennis lessons were made available to attendees. Remarks were given by several community leaders, including Ocean Pines Association General Manager John Bailey, Ocean Pines Chamber of Commerce Executive Director Ginger Fleming, Ocean Pines Director of Aquatics and Recreation Colby Phillips, Ocean Pines Director of Marketing and Public Relations Denise Sawyer, former Ocean Pines Board Director Dave Stevens and
members of the Ocean Pines Platform Tennis Association. The expansion project, which Board Director Tom Herrick rallied behind for years, was approved by the Ocean Pines Board of Directors at a July 28 Regular Board meeting. Board Director Doug Parks moved to accept the recommendation of Total Platform Tennis. Platform tennis is an American racquet sport enjoyed by thousands of people of all ages. It is a racquet sport that players can enjoy outdoors in cold weather. The game, which combines elements of tennis and racquetball, is played on a court
about one-third the size of a tennis court surrounded by 12-foot fencing that allows play off the screens. Another benefit of a platform tennis membership in Ocean Pines is the option of playing timeless tennis. Those who are no longer comfortable playing on a regular-size tennis court are invited to try the sport, which is new to Ocean Pines and has already attracted a number of players. The game is played on the racquet complex’s platform tennis courts using tennis racquets and low-compression balls. The screens surrounding each of the courts help keep the balls within reach.
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Based on a staff recommendation, the Board of Directors during a Nov. 30 meeting found three properties in continuing violation of the Ocean Pines Association’s declaration of restrictions and approved referring them to legal counsel for action. General Manager John Bailey said a skateboard ramp was erected at 7 Pine Cone Way without the benefit of a permit. Staff with the compliance, permits, and inspections department sent notice of the violation to the property owners and informed them that they must immediately obtain a permit for the structure or have it removed. However, the property owners have not responded or claimed certified letters sent to their address on file with the OPA. Therefore, at the Architectural review Committee’s request, Bailey recommended sending the issue to legal counsel for resolution. The board voted unanimously to do so. Similarly, at 73 Boston Drive the property owners have constructed a fence without the benefit of the proper permits. Bailey said permits are necessary from both the OPA and Worcester County to build a fence in the community. The structure at 73 Boston Drive was constructed without either association or county approval. Again, Bailey recommended acting on ARC request to refer the matter to legal counsel and the board agreed unanimously. At 4 Hemlock, the property owner has a vehicle on the lot that violates the restrictive covenants. Bailey said all vehicles on lots must have current registration and be appropriately tagged. A car at 4 Hemlock does not have a current registration and is not displaying tags. Additionally, Bailey said the property owner is $6,197 in arrears on their annual lot assessments. He recommended also taking action to refer the matter to legal counsel to pursue removal of the untagged vehicle from the property. A fourth matter for a violation at 45 Abbyshire was removed from consideration at the board meeting. Bailey said the property has been sold and he is hopeful that the new owners will address the violations immediately.
OCEAN PINES
December 2017 Ocean Pines PROGRESS
Rates to increase 22.72 percent for year-round customers By TOM STAUSS Publisher he Board of Directors in its regular monthly meeting Nov. 30 approved a new three-year contract with Republic Services of Delmar for the collection of household trash and trash generated by the Ocean Pines Association at its various venues. The board unanimously accepted the recommendation of General Manager John Bailey to approve the proposal submitted by Republic Services over that of Chesapeake Waste Management, despite the fact that for year-round customers, Chesapeake’s proposed rate for twice-weekly household trash pickup and once a week collection of recyclables was actually less by $1.38 per month or $4.14 per quarter than Republic’s rate. In its brief discussion and unanimous approval of the new contract, which gives Republic exclusive rights to collect household trash and recylables, the board did not mention that the new rates are sharply higher than current rates. Year-round customers of Republic are currently paying $48.11 per quarter for twice weekly trash collection and once a week collection of recylables. That will increase to $59.04 under the new approved contract, a 22.72 percent increase over the current rate. Republic’s rates for six-month seasonal customers are the same as for year-round residents. Both Republic and Chesapeake offered plans for once-a-week trash and recylable collection, but there was no discussion of that option as an alternative to twice weekly pickup during the Nov. 30 board meeting. The only somewhat dissenting voice in the discussion was Cheryl Jacobs, who expressed disappointment that Republic Services did not offer a Monday through Saturday pick-up option rather than the Monday through Friday option approved by the board. She said the Saturday pick-up option would be more accommodating to weekend residents or owners who
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rent out their properties on a Saturday through Friday schedule. Bailey in his comments to the board said that Republic currently
has about 4,775 customers in Ocean Pines, evenly split between yearround residents and those who opt for a season six-month contract.
He also noted that Republic picks up trash and recyclables at various OPA venues throughout Ocean Pines. He called the results of a comparison between the two competing bids submitted in response to an OPA-issued request for proposals “somewhat mixed.” By that he meant that the competing bids in some instances favored Republic and in other instances favored Chesapeake. q
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From Page 9
To resolve the dilemma, he and his staff devised a “blended rate” that took into an account both 12-month and 6-month rates, as well as the fact that Republic’s rates for collecting OPA trash and recyclables were clearly more favorable. “For the year service and sixmonth service, Republic has the lower price per month for refuse collection and the higher for recycling. Chesapeake has the higher price for refuse collection and the lower price for recycling.” That’s where the blended rate was devised as a way to produce a winning bid. “The combined trash and reclycling rates per month for the full year service are lower with Chesapeake by $1.38,” Bailey wrote in a report to the board. “The combined trash and recycling rates per month for the six-month service are lower with Republic by $2.19.” In creating the somewhat unorthodox “blended rate” that no one actually pays, the OPA administration
combined the yearly and six-month rates, with Republic’s blended rate coming in at 41 cents lower than Chesapeake’s, according to Bailey. For OPA trash and recyclables, Republic’s rates are lower by 8 per-
cent and 5.4 percent, respectively. The new $59.04 quarterly rate that Republic can charge customers beginning next year equates to $19.68 per month. That’s composed of a rate of $14.68 per month for
Total Monthly Cost
twice weekly trash collection and $5 for per month for collection of recyclables. For year-round residential customers, Chesapeake’s proposal was
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10 Ocean Pines PROGRESS
December 2017 Ocean Pines PROGRESS 11
OCEAN PINES Trash contract
Pines pup contest winner
From Page 9
$15.94 for trash pick-up but only $2.36 per month for recyclables, for a total of $18.30 per month or $54.90 per quarter. While Republic’s rates are the same for year-round residents as for six-month customers, Chesapeake for some reason opted for much higher rates for six-month customers. At $19.05 per month for trash collection and $2.82 for recyclables, the monthly tab would have been $21.87 or $65.61 per quarter. Had Chesapeake offered the same rates to six-month customers as it did to yearly customers, it would have had the upper hand in the competition for residential business. Ocean Pines is unusual in that it offers twice weekly trash collection, but it now it appears that it comes with a cost in the form of sharply higher rates. Had the board at least considered the possibility of opting for once a
Bruce, a fluffy, 90-pound golden retriever, is the winner of the Ocean Pines Recreation and Parks Department’s third annual “Pup of the Pines” photo contest. He received the greatest number of votes from attendees at the fall festival on Oct. 28. He was recognized as the winner at the community’s “A Hometown Christmas” and tree lighting ceremony at White Horse Park on Nov. 25. Bruce’s owners said their furry friend loves cuddling, having his belly rubbed, long hikes in the woods and swimming along the shore of Assateague Island. They said Bruce promises to give everyone who wishes plenty of sloppy wet kisses and lots of cuddles. As “Pup of the Pines,” Bruce receives a free 2018 Ocean Pines Dog Park registration. He will also be the official face of the dog park and will be featured in the Ocean Pines Activity Guide and other postings throughout the year. Money raised from the contest entry fees will be used for upgrades and improvements to
week collection of both trash and recyclables, both year-round and seasonal residents could be paying slightly less next year than they are currently for collection services. Republic’s proposed rate structure for once-a-week collection included $10.79 per month for trash collection and $5 for recyclables, for a total of $15.79 per month or $47.37 per quarter, compared to the current rate for twice-weekly trash collection and weekly recyclable collection of $48.11.
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OCEAN PINES
December 2017
Bailey refocusing efforts on Country Club’s second floor upgrades General manager isn’t abandoning plans for entrance improvements but he tells board upper level will be given top priority BY TOM STAUSS Publisher
G
eneral Manager John Bailey is refocusing his energies on making improvements to the second floor of the Country Club rather than both the upper level and the entrance area, a change in focus that might result in the reopening of the second floor sometime in 2018 in time for Ocean Pines’ 50th anniversary events. Bailey told the Board of Directors during its Nov. 30 monthly meeting that he would be ordering engineering design drawings for improvements on the second floor, which would make it possible for contractors to make improvements -- the creation of a large meeting room and two smaller meeting rooms and possibly a new kitchen -- in a more timely manner. At the Oct. 27 monthly meeting of the board, Bailey had introduced a proposal for entrance improvements to the Country Club that he said would mean at least a year’s work from design to construction, a timetable that would have made the amenity’s second floor unusable during its 50th anniversary year. He had proposed a “lowering” of the main entrance into the building so that it’s level with the golf pro shop and Tern Grille on the first floor. Instead of what he called impractical and unsightly exterior handicap ramps, he suggested that the renovation include an interior elevator to replace the lift that there’s now. The proposed lowering of the front entrance of the building would involve elimination of the half floor that currently bisects the first and second floors. In addition, the half floor office space that exists above this “half floor” entrance area would be eliminated, opening up the new entrance area all the way to the building’s ceiling. “It would have a much more spacious, vaulted ceiling feel,” Bailey
said, while eliminating the “confusion” that golfers and others experience when they enter the building from the front entrance. Bailey said the circular driveway that directs traffic under the porte-cochere canopy that extends out from the building would also have to be lowered and perhaps redesigned. Existing landscaping features would be removed and temporarily stored, to be replanted later. He said the porte-cochere could be upgraded with a more contemporary design. Bailey said that the lowering of the front entrance might not even be possible from an engineering standpoint. Further research needs to be done on the placement of utility lines, he said, after which a decision could be made on whether lowering the front entrance is feasible or prohibitively expensive. While Bailey told the board during the Nov. 30 meeting that he still wanted to obtain pricing on the proposed entrance improvements, he said he wanted to obtain engineering specs on second floor improvements that he said could be done much more quickly than the entrance improvements. He did not say whether the elevator would be part of that. If it isn’t, then the handicap lift would remain as the primary means of access to the second floor by those with mobility issues. The second floor plans are a departure from the last floor plan that had emerged when the project was under the supervision of former Acting General Manager Brett Hill. Instead of five meeting rooms proposed in a previous version of a second floor floor plan, Bailey is proposing three, one large one and two smaller ones 20 by 40 feet in size “that could be combined into one.” Bailey said the meeting rooms would be provided to accommodate golf-related banquets and the more than 50 organizations that “are q
12 Ocean Pines PROGRESS
OCEAN PINES
December 2017 Ocean Pines PROGRESS
Country Club From Page 12
clamoring for space” in Ocean Pines. A meeting room specifically earmarked for the Board of Directors, a component of previous plans for the second floor, is absent from the latest iteration. In October, Bailey had said that the existing non-functional second floor kitchen would be renovated, with the antiquated equipment removed and replaced with equipment that could accommodate buffet-style functions for golfers or organizations. “Plated dinners” would be shifted entirely to the Yacht Club, he said at the time. In his comments at the Nov. 30 meeting, he seemed less certain about whether a new kitchen would be included in the first phase of improvements. He seemed to suggest that it could be if the board regarded it as a priority. It’s unclear based on public comments whether the board wants a new kitchen. There has been little or no public discussions of whether the board prefers to repurpose the kitchen for some other use. The Country Club already has one kitchen, the one that serves the Tern Grille on the lower level. At the October meeting, he said a final design and RFP process might be presented to the board at its November monthly meeting for action. That didn’t happen, and the board isn’t scheduled to meet in December. The directors for the most were silent in response to Bailey’s change in focus. But Cheryl Jacobs said she hoped second floor improvements could be completed in time for some anniversary events in 2018. In a Dec. 5 telephone interview with the Progress, Bailey clarified that the next phase of improvements would indeed focus on the second floor and could be completed in time for a June golf tournament. He said the improvements would be for the three rooms he’s discussed but not any kitchen improvements or the proposed elevator. He also said that outside handicap ramps probably would not be included. He said if the board wants a new kitchen, it would have to approve it as part of another phase of improvements. Bailey said he hoped the board would at some point approve a feasibility study for the entrance improvements he’s talked about, including the elevator.
OPA names new aquatics supervisor
Ocean Pines Aquatics has announced the appointment of Julie Winterling as its new aquatics program supervisor. A familiar face to many visitors at Ocean Pines’ pools, Winterling has served as one of the community’s aquatic fitness instructors, teaching HydroRider aqua bike and cross-training classes since the program’s inception two years ago. She is replacing Michelle Hitchens, who is leaving after several years of heading up the Ocean Pines swim lesson program. As aquatics program supervisor, Winterling will continue to lead classes and will also coordinate and teach youth individual and private swim lessons. She obtained certification to teach lifeguarding, swim lessons and water aerobics at the University of North Carolina, where she attended college. Additionally, Winterling is certified as a water safety, first aid/CPR/ AED, HydroRider and aqua trampoline/cross-training instructor and is a certified pool operator. Winterling is also in the process of obtaining certification for medically-based aquatics training, which will be introduced soon at the Sports Core pool.
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13
December 2017
Working group recommends ‘quiet pool’ at Yacht Club Board to consider some of panel’s ‘good ideas,’ Parks says
By TOM STAUSS Publisher self-appointed group of Ocean Pines residents aggrieved by a Board of Directors’ decision earlier this year to open the formerly adults-only Yacht Club “Oasis” pool to all age groups seems recon-
A
ciled to the notion that restoring the pool’s adults-only status is unlikely to occur. Instead, the working group, formed and headed by Ocean Pines resident Gary Miller, has recommended as a “best option” the creation of a what it calls “a true ‘Oasis”
pool atmosphere at the Yacht Club, to be “accomplished by instituting additional strict rules of conduct that will apply to everyone using that pool, such as no running, no cannonballs, no shouting, no loud noises, or no Marco Polo ...” The group, in a lengthy letter to
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11304 Manklin Creek Road, South Gate Ocean Pines (Manklin Creek Road & Ocean Parkway)
OCEAN PINES the Board of Directors published in the Opinion section of this edition of the Progress, acknowledges that enforcement will be a challenge for the Aquatics Department if this “Quiet Pool” policy is adopted by the board. The problem is that the guard staff is mostly teenagers or young people in their early 20s. “Younger kids may not listen and some parents may not pay attention. Asking a young lifeguard to tell an adult that they have to keep their child quiet or under control is not going to work and is really not fair to the lifeguard,” the group says in its letter to the board. For the Quiet Pool option to work, the group says details of the “program should be publicized as soon as approved by the Board” so that pool users won’t be caught unawares of the rules this summer. When purchasing a pool membership or day pass, the group suggests that a copy of the rules should be given and a signature obtained acknowledging receipt of and agreement to abide by the rules. Rules should be prominently posted at the Oasis pool entrance and check-in table, the group says. To address the problem of young lifeguards trying to enforce rules that parents might oppose, the group says that “adult life guards should be on duty to assure compliance with the rules and the adult check-in person should handle any confrontations with guests.” Consequences for frequent rule offenders could be a quiet “time-out” for kids, the group says. Because of some previous pool members who have said they are not going to purchase memberships next year, the group suggests that a letter or e-mail be sent specifically to them to encourage their return once the board adopts a “quiet pool” policy for the Yacht Club pool. Swim lanes with lines should be available at all times, the groupsuggests, and the Quiet Pool rules would be suspended during “Family Fun Nights” scheduled by the Aquatics Director. In addition to rules against running, cannonballs, shouting, loud noises and Marco Polo, the group suggests that: •Anyone under the age of 13 years old must be accompanied by an adult/guardian at least 18 years old. •Flotation devices, except for life jackets and noodles, are prohibited, as are balls and Frisbees, throwing q
14 Ocean Pines PROGRESS
OCEAN PINES
December 2017 Ocean Pines PROGRESS
15
Yacht Club pool From Page 14
of any toys into or around the pool, and jumping (all pool entry must be from steps or ladders). •Electronic audio devices would be allowed with ear buds only. • Pool users refrain from hanging on the lane lines. •Any incontinent person must wear a swim diaper in order to access pool. •Diaper changing is not allowed at poolside but only in changing tables located in the restrooms. The group said it had considered adding “no splashing” to the list but understands “that some people may be considered to ‘splash’ while they swim and the intent is not to prohibit swimming.” The list should be reviewed and approved by the aquatics director, the group says. The “quiet pool” option was seen as an alternative to another possibility considered by the group, creating a general pool membership for the four OPA-operated pools other than the Yacht Club and a separate pool membership for the Oasis pool only. [Details of that option are ex-
The Yacht Club “Oasis” pool in the days when its use was skewed more to an older demographic.
plained in the group’s published letter to the board.] The group acknowledges some difficulties with that option while conceding the Oasis pool would still have to be open to all ages. OPA President Doug Parks gave a shout-out to the report during the board’s Nov. 30 meeting, saying it contained some “good ideas” that the board would consider. He made no mention of the Aquatics Advisory Committee, which generally took a hands-off approach when the removal of the adults-only status of the Yacht Club pool became
an issue this past summer. Committee members with some exceptions generally understood that the board, once alerted to the issue, essentially had no choice in the matter because the federal Fair Housing Act prohibits discrimination on the basis of age or familial status. The committee did not issue any statement critical of the board for taking the position it did. Nor did it make any attempt to suggest ways to circumvent it or lessen its impact. OPA General Manager John Bai-
ley said the OPA staff “certainly understands that the concept of a “quiet” pool is desired by many of our members,” adding that “as acknowledged at the last Board meeting, a sincere and passionate group of association members has crafted some proposed rule changes that may indeed be able to be incorporated for use at the Oasis Pool.” Bailey said the proposed pool rules are under review by staff “and a draft will be presented at the appropriate time and discussed by the Aquatics Advisory Committee before adoption.”
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16 Ocean Pines PROGRESS
OCEAN PINES
December 2017
Report shows Beach Club parking, pickleball exceed membership goals Aquatics at 97 percent, racquet sports at 91 percent, golf lags at 78 percent
By TOM STAUSS Publisher he Oct. 31 amenities membership report issued by the Ocean Pines Association shows that Ocean Pines amenities have either exceeded or have come close to reaching their goals for the year. The biggest exception is golf, which is lagging at 78 percent of goal with little likelihood of adding to its membership roles for the rest of the 2017 fiscal year. Pickleball and Beach Club parking have both reached 105 percent of goal. Pickleball, some of whose members had predicted an overall decline because of opposition to new drop-in rates at the Community Center (since reduced), has a total of 71 memberships so far compared to 60 a year ago and the budgeted 68. Pickleball has produced $9,341 in membership revenue through Oct. 31, compared to the $8,900 that had
T
been budgeted. There is still some room for membership growth as more residents discover new outdoor pickleball courts that were added at the Manklin Meadows Racquet Complex this year. Recently reduced drop-in fees for member play at the two Community Center indoor courts could also induce more residents to join, although some members believe that a third court configured in the gymnasium, as it had been previously, would dramatically increase drop-in play and reduce wait times for members. Beach Club parking, a membership category that had lots of changes in structure and fee options this year, continues to deliver for the OPA as it has year after year. The parking permit with photo ID was not a top seller this year, with 336 sales compared to 1,854 a year ago. The $26,800 in parking revenue
produced from the photo ID permit contrasted unfavorably with the budgeted $128,000 in revenue and the 1,600 permits forecast. The fee for this permit was $200, with $80 allocated to the Beach Club parking department and $120 allocated to aquatics. Permit holders were entitled to access the Beach Club swimming pool. But more than making up for the shortfall in the photo ID permit category was the option that included a new $120 parking/pool debit card that entitled users to access any of the OPA’s five pools. This new debit card produced 1,379 sales and $110,320 in parking revenue. Because it was new this year, it wasn’t budgeted for any revenue. Director Slobodan Trendic suggested the flexible debit card during the 2017-18 budget review deliberations a year ago as an additional option to accommodate those who were not necessarily interested in
just the Beach Club pool with their beach parking permit. By any measure, it was an unqualified success. The $200 fee for both of these permits was split 6040 between the aquatics and beach parking departments, $120 and $80, respectively. The two parking permits combined produced more than $6,000 in parking revenue above the $128,000 budgeted for the photo ID permit alone. Another Beach Club parking permit, the one that golf, racquet sports, and aquatics members could buy for $100 this past summer, produced $40,600 in revenue with 406 sales. This was a modest fall-off from the summer of 2016, when there were 454 of these permits sold. But that fall-off was anticipated, given other options available this past summer. There had been 330 sales and $33,000 budgeted, meaning that this permit exceeded its goal by $7,600. Somewhat less financially successful were six- and 12-week Realtor/owner bundles that were conceived as a way of curbing perceived “cheating” in past years from the
To Page 18
December 2017 Ocean Pines PROGRESS
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OCEAN PINES
December 2017
Membership
Jacobs announces anniversary schedule
O
From Page 16
cean Pines Association director Cheryl Jacobs recently disclosed a tentative schedule of events related to Ocean Pines’ 50th anniversary to be celebrated throughout 2018. Jacobs, the Board of Directors’ liaison to the 50th Anniversary committee, announced the schedule during the board’s Nov. 30 regular monthly meeting. The kick-off event is set for Jan. 6, with a dedication of anniversary signage. According to the committee’s published minutes for its Sept. 18 meeting, anniversary entrance signs at North and South gates will be built for just one year of durability. Another sign at the Cathell Road has been suggested as well, perhaps one that would be more permanent. In addition to entrance signs, the committee has been discussing small outside plaques for a one year duration at OPA amenities. On March 24, anniversary license plates will be distributed. Jacobs said that license plate numbers would be auctioned off. According to the September meeting minutes, Timeless Tides has been chosen by the committee as the tagline for the license plate. Raffle tickets for the first 50 numbers will be available. Information on how to apply for a license plate and how charges will be handled through the OPA will be announced. Jacobs said that an anniversary parade would be held on June 2 as part of a community day. The September meeting minutes said the Ocean Parkway parade route would be up to two miles in length. An anniversary golf tournament is scheduled for June 30, Jacobs said, telling her colleagues and General Manager John Bailey that she hoped the Country Club would be ready by then. Former golf pros in Ocean Pines would be invited to participate in the tournament. On July 4 Jacobs said a 5-K run is planned, while a community “Beach Bash” at the Beach Club is scheduled for July 22. Jacobs announced that the opening of a previous anniversary’s time capsule is scheduled for Aug. 11, the same day as the OPA’s annual membership meeting. Jacobs said that a racquet sports tournament would be scheduled for Aug. 18. Finally, she announced that a winter gala would be held at the Yacht Club on Nov. 10.
use of the older parking permits without photo IDs. In order to capture more revenue from owners and rental agents who simply transferred the parking permits to new weekly renters, depriving the OPA of revenue, the board established a 12-week bundle at $1000 and a sixweek bundle at $600. The revenue generated was split 25-75 between the beach parking and aquatics departments. The 12-week bundle produced $8,500 in parking revenue on 34 sales, compared to the $25,000 and 100 sales budgeted. Of the $1000 fee, $250 went to the beach parking department and $750 to aquatics. The six-week bundle produced $900 in parking revenue on six sales, compared to the $25,000 and 100 sales budgeted. The board approved a special reduced rate of $480 for the Borderlinks condominiums for Beach Club parking that seems to have worked out well. Here, too, the revenue was shared between aquatics and beach parking, with $360 allocated to aquatics and $120 to parking. Add-on weeks costing $40 were split on the same 75-25 percent ratio, $30 to aquatics and $10 to beach parking. The 12-week Borderlinks permits produced $4,200 in parking revenue on 35 sales, but add-on weeks with 105 sales produced another $1,050 in revenue. Borderlinks permits also were left unbudgeted in the 2017-18 budget.
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The Aquatics department, hitting 97 per cent of it budgeted membership goal, prospered under the bundled revenue sharing arrangement, which had been revised from a less generous formula used the previous two summers. Combined, the parking with photo ID and parking with debit card permits produced $205,800 in aquatics membership revenue, compared to the $192,000 budget for the photo ID alone. Including all membership categories, aquatics has generated $474,510 in membership revenue through Oct. 31, on 1,133 membership sales. This compares to the $491,005 in revenue and 793 individual sales budgeted, a $16,495 shortfall. [See summary of revenue categories by amenity on Page 16.] This shortfall has been more than offset by daily user fee revenue not accounted for in the membership data, however. While golf membership did not hit its membership goals this summer, total memberships improved from 112 last year to 120 this year, with lifetime members remaining steady at 19. The $147,285 in golf member revenue was 78 percent of goal. The budget called for 145 memberships and $188,170 in revenue. The shortfall was $40,885. To some extent, lowered golf membership rates this year had the desired effect in at least reversing membership erosion, but the modest increase of eight memberships fell short of projections. The two other racquet sports, tennis and platform tennis, also fell somewhat short of budget projections through Oct. 31. Tennis memberships fell from 120 at the same time in 2016 to 68 this year, producing $16,539 in membership revenue, compared to 85 memberships and $22,200 that was budgeted. That produced a revenue shortfall of $5,681. Tennis had reached 74 percent of goal by Oct. 31. Similarly, platform tennis memberships dropped year-over-year from 63 to 58, producing $10,590 in revenue. The budget called for 70 memberships and $12,900, a $2,310 revenue shortfall. Platform tennis reached 82 percent of goal as of Oct. 31. The new $250 rate for non-residents entitling them to buy amenity memberships at the same rates q
18 Ocean Pines PROGRESS
OCEAN PINES
December 2017 Ocean Pines PROGRESS
Accounting firm recommended adding $80,000 to tax liability account reflecting concerns about operation of Yacht Club pool as adults-only amenity, former OPA general manager says By TOM STAUSS Publisher n informal working group of Ocean Pines aquatics members has drafted and sent to the Board of Directors a series of recommendations on easing the impact of opening up the formerly adults-only Yacht Club “Oasis” pool, recommendations that OPA President Doug Parks has called “good ideas” and worthy of board reflection and possible action. At the same time, chances that the board will actually revert to the adults-only policy at the pool next year seems remote at best, especially in light of a recently discovered action that suggests there was concern within OPA ranks last summer about the OPA’s tax-exempt status because of the many years the pool operated as an adults-only amenity. The Progress has learned that the concern was so pronounced that the OPA’s auditing firm recommended to Acting General Manager Brett Hill last summer that an obscure “tax liability account” within the OPA’s operating fund be increased by $80,000, reflecting concern that years of illegal operation of the pool as an amenity that denied access to those 18 and under possibly jeopardized the OPA’s tax-exempt status
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Membership From Page 18
afforded property owners and residents was not a smashing success. There were 62 non-resident memberships, then called associate memberships, sold last year. That has decreased to 43 non-resident memberships this year, producing $10,540 in revenue. The grand total by all amenity departments with the exception of marina boat slips was $931,900 in membership revenue, reflecting 4,121 membership units, up from 3,922 units year-over-year. The revenue shortfall to budget was $68,940 and 94 per cent of goal. But 4,121 membership units sold was an improvement over the 3,401 units budgeted in 2017 and the 3,922 units sold in 2016.
as a 501(c) (4) social or community welfare organization. Hill, a former OPA director who stepped down as acting general
manager and resigned from the board in August, told the Progress recently that he had agreed to the recommended $80,000 addition to
the tax liability account, which otherwise was reportedly in a gradual write-down mode after its establishment in 2012. Hill said the $80,000 set-aside was precautionary, as there was no way to know for sure whether the OPA’s tax-exempt status was in serious jeopardy. The Board of Directors, once alerted by its attorney that it could q
OPA reportedly set aside funds fearing loss of tax-exempt status
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Tax liability account From Page 19
OCEAN PINES
December 2017
not continue to operate the pool as adults-only because of federal and state age-discrimination laws, quickly capitulated last summer and opened the pool to all ages. The move was controversial. Officially, the adults-only designation is in a state of suspension on the recommendation of the OPA attorney, Jeremy Tucker of the Le-
rch Early firm of Bethesda. Tucker was tasked by the board to look into ways the adults-only policy could be restored or attenuated, but so far there is no indication that Tucker has come up with anything. Even in the unlikely event that the OPA lost its tax-exempt status or if the Yacht Club pool as an amenity was considered taxable, it’s doubtful there could be any significant tax liability resulting from operations at the Yacht Club pool or
even in aquatics operations. That’s because all pools in Ocean Pines have been losing money for at least ten years, even before depreciation is factored in. With depreciation, an expense category that taxable entities use to reduce or eliminate their taxes, almost all Ocean Pines amenities and the OPA as an entity are consistently in deficit, year after year. Hill revealed the existence of the little known tax liability account almost by accident. He said that the liability account had not been adjusted downward this year but instead had been increased by $80,000, reflecting concerns about the OPA’s tax exempt status. The account has a balance of $185,470 as of Oct. 30, according to OPA Treasurer Pat Supik in an e-mail to the Progress. The account was established in 2012 out of concerns about potential tax liability associated with a tax case related to Beach Club parking revenues that the OPA lost on appeal at that time. According to a summary of activity of the OPA’s operating fund pre-
sented at the annual meeting of the OPA membership this past August, the fund was debited $300,000 in 2012 to reflect possibility tax liability for several tax years. Supik seemed to dispute the $300,000 transaction in her e-mail, however. She said the account was originally set up in the amount of $459,000, with taxes of $216,645 paid in 2012 and for prior years. In 2014, she said $25,000 was moved to a bad debt reserve and in 2016 $31,885 was moved into “miscellaneous revenue.” Her e-mail response made no reference to an $80,000 adjustment this year. The creation of the liability account had the effect of increasing the deficit in the operating fund that has been carried forward ever since. If the liability account was zeroed out, it would have the effect of reducing the operating fund deficit by the amount shown in the account when the adjustment was made. Supik had said that if it’s determined that no tax liability exists, then the liability account can be eliminated.
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He was reelected in 2005 for another three-year term. He was intensely engaged in board and community politics of his era, usually part of a board majority that set policy for the OPA. He was part of a successful referendum effort in support of a new
Two former OPA directors, Stachurski and Zawacki, pass community center on OPA-owned property on Route 589 in an area now known as Veterans Memorial Park but then simply Dan Stachurski as the Sports Core. That community center project foundered because of environmental permitting issues that caused it to balloon in cost, over that which had been approved in referendum. It was a deeply frustrating experience for Stachurski, who served as project manager while serving as an OPA director. A much less expensive and expansive version of a Community Center was eventually built on the footprint of the original Community Hall in White Horse Park when Stachurski was no longer on the board. He was part of the slim 4-3 board majority that voted to enclose the outdoor Sports Core pool and convert it into an enclosed year-round pool, a controversial decision made in 2006 that resonates to this day. He was able to persuade the then OPA President, Glen Duffy, to support the project despite indications that operational costs of a year-round pool would convert the profitable Aquatics department into one that would require a subsidy for years after. It literally took 11 years and a revenue-sharing arrangement with Beach Club parking to restore profitability to the Aquatics department during the current fiscal year. Duffy more recently has served as a member and chairman of the Architectural Review Committee, recently retiring because of term limits. After years of absence from Ocean Pines politics, spending the time traveling and playing golf, Stachurski ran again for the board in the summer of 2011. He was elected, serving two years and six months, resigning in February of 2014. After running for the board without the support of then OPA General Manager Bob Thompson, he became a supporter and defender of the gen-
eral manager and his allies on the board, once again becoming part of a board majority bloc. If nothing else, Stachurski was someone who mastered the fine art of gaining and keeping influence on an elected board of directors. While serving on the OPA Board, Stachurski was a member of the group that worked toward and established a Veterans memorial on the OPA-owned Sports Core property on Route 589. He is fondly remembered for his involvement in that project by the person who led the effort, Ocean Pines Realtor and former OPA director Sharyn O’Hare. Stachurski told a local weekly newspaper in explanation of his resignation in 2014 that he had been “pleased to be a part of the OPA Board as the community” underwent “much needed renewal while not increasing assessments any more than absolutely necessary. At the same time, I celebrated my
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69th birthday in June of 2013 and decided that it was time for me to do something I have wanted to do all my life: go sailing in a fairly serious fashion.” Stachurski also took up painting in his latter years, taking art classes with students much younger than him. According to an obituary issued by his family, Daniel B. Stachurski of Port St. Lucie, Fla., passed on Nov. 20 at the age of 73. He was born June 25, 1944, in Riverside, Cal., to Edward & Katherine (Chaby) Stachurski. He honorably served his country in the U.S. Army and was a Viet Nam veteran. Leaving the Army as a 1st lieutenant, he entered the advertising and public relations field until his retirement. His passion for painting led him to get his Bachelors of Fine Arts in painting and ceramics summa cum laude from Salisbury University in 2010. As a young man his other passion was sailing and in 2012 he got his q
By TOM STAUSS Publisher ong-time residents of Ocean Pines were saddened to learn of the recent passing of two former Ocean Pines Association directors. Dan Stachurski and Bill Zawacki both served as OPA presidents during their board tenures. Zawacki served three years on the board, one year as president. He was elected in 2007. The terms of these two directors intersected. Zawacki joined the board not long after a slim majority of directors, with Stachurski as a driving force, had approved the Sports Core pool enclosure to create a year-round aquatics amenity. It was a controversial issue at the time, in part because the board managed to build it without a referendum of property owners. A referendum wasn’t required because the cost of the enclosure was less than the referendum trigger at the time. Critics, Zawacki among them, argued that the board still should have gone to referendum for an expenditure in excess of $1 million. The two directors never agreed on much after that. Zawacki was a spending hawk and Stachurski wasn’t particularly shy about spending money or raising assessments if he felt the cause was worthy. Zawacki’s one year as president, his final one on the board, was noteworthy for his introduction of a twomeeting-a-month format, with a work session followed by a regular board meeting in which action was taken. An advocate of transparency, Zawacki allowed any OPA member present at a work session to participate in board discussions. “I very much liked him after that,” Ocean Pines resident Joe Reynolds recalled. Zawacki tried for a political comeback in 2015 with a run for the board but fell short. Stachurski served two, threeyear terms from 2002 through 2008 and a two-and-a-half year term from August of 2011 to February of 2014. He first ran for the board in 2001, failing in that effort. He ran again in 2002, successfully this time.
December 2017 Ocean Pines PROGRESS
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BOARD OF DIRECTORS
December 2017
Board ponders switch from comprehensive to strategic planning model Moroney wonders whether committee should be changed from standing to ad hoc By ROTA L. KNOTT Contributing Writer ased on a recommendation from the Comprehensive Plan Advisory Committee, the Board of Directors is continuing to consider changing both the name and the function of that panel to focus on strategic planning for the Ocean Pines Association. During a Nov. 30 first reading of resolution C-07, directors debated whether the new Strategic Planning Advisory Committee should be a standing committee or an ad hoc entity that functions on an as-needed basis. The discussion first arose the board’s October meeting during a presentation by the committee’s chairman, Frank Daly. Director Slobodan Trendic, the board’s liaison to the committee, introduced the revised resolution C-07. “Really the whole resolution is proposed to be restructured,” said Trendic, adding, “I’m fully behind the recommendation. There’s a lot of
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logic behind it.” The committee offered several of the proposed changes in Daly’s presentation to the board last month. The first was a recommendation for a philosophical change from the OPA’s current comprehensive planning model, which is generally used by government entities, to more of a corporate strategic planning model. The OPA does not have a multiyear strategic plan and the committee suggested developing one as soon as possible. Another recommendation is that the committee serve as a support body to the board and general manager and his staff, who will be tasked with creating the document, during development of a strategic plan. With those recommendations in mind, the committee also proposed changing its name and mission. Those changes are detailed in a new resolution C-07. According to the draft, the Strategic Planning Advisory Committee will advise the board and the gener-
al manager “on how best to align the mission and the vision of the Ocean Pines Association by anticipating future needs and assisting in the development of a strategic multiyear plan that would support and enhance the lifestyles of its owners, residents and guests.” In executing its new mission, the committee would support the general manager and board as directed to research and recommend best practices and develop supporting data to create the strategic plan. In developing the best practices and data, the committee would actively work with the staff, other committees, the board, and outside information sources as required to fulfill their mission. Under the proposed resolution, the committee would be charged with gathering facts, investigating alternatives, evaluating issues related to the strategic planning. The committee would perform studies of community needs as requested by the board or general manager re-
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lating to the development, updating and/or evaluation of the strategic plan. It would also solicit information from pertinent sources within and outside the OPA regarding best practices for consideration in developing and implementing the strategic plan. Director Ted Moroney questioned the need for the new entity to be a standing advisory committee. He wanted to know if it needs to be a permanent committee or if it should it be assembled on a case-by-case basis. “Normally, a strategic planning committee or a strategic plan task force has a shelf life. It comes in. It helps develop the plan and then it goes away because the implementation belongs over here 100 percent,” he said, pointing to General Manager John Bailey. He said his “big question” is when the general manager would begin strategic planning given everything else he has on his plate at this time. If the board creates the new committee as a standing entity, it should not be involved with implementation of the strategic plan, Moroney said. “Implementation of any strategic plan belongs to the guy that’s sitting over here reporting to this board. If he wants to have help on q
22 Ocean Pines PROGRESS
Former directors From Page 21 dream boat, a Bavaria Cruiser 36 named the Windstalker. He and his wife Deb sailed to Florida in late 2013 to live full time and enjoy the water, golf and the Florida life. He is survived by his wife Deborah Shockley, of Port St. Lucie, a Son, Erik Stachurski (Lorre) and numerous grandsons, nieces, nephews and cousins. He was predeceased by first wife Charlotte. His wishes for his final resting place is Arlington National Cemetery in Arlington, Va. The services will be at a date to be determined. There will be a “Celebration of Dan’s Life” on Dec. 30 at the Community Church of Ocean Pines, 11227 Racetrack Rd., Ocean Pines, at 1 p.m. Donations in his memory can be made to Worcester County Veterans Memorial in Ocean Pines, PO Box 1576, Ocean Pines, Md., 21811.
BOARD OF DIRECTORS By TOM STAUSS Publisher he Ocean Pines Association’s Election Committee is once again asking the Board of Directors to authorize announcement of annual board election results on the day that the committee tallies the votes, rather than waiting one day to announce the results at the annual OPA membership meeting in August. The request is being facilitated through a proposed amendment to board resolution M-6 that governs elections procedures in Ocean Pines. The proposed text change is posted on the OPA Web site. It’s included as part of the informational packet for the Nov. 30 meeting of the board. The committee’s board liaison, Slobodan Trendic, introduced that and two other recommendations the committee is making with respect to M-06 during the Nov. 30 board meeting. One recommendation is to set a deadline for return of ballots to the Wednesday prior to the annual meeting, rather than Thursday, as is currently the practice. Trendic said this earlier deadline will give the committee and its vendor that handles the ballots prior to the Scan-tronic vote count more time to deal with any unexpected issues that may arise. Another recommendation would give the committee the authority to arrange seating of candidates at various candidate forums that it intends to schedule in the next election season. Currently seating is arranged by draw.
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Strategic plan From Page 22 something that’s fine,” he said. He said a committee should not be helping with implementation of an operational function. Trendic told Moroney he made some good points. “I believe what the committee is suggesting is total ownership of the strategic plan at the management level,” he said, “which means the execution certainly belongs to the general manager and his staff.” As for whether it should be a standing committee or an ad hoc group, Trendic said there will be work to do even after development and implementation of an initial strategic plan. He said that issue will “probably be sorted out by the general manager” as he determines what type of support he needs.
December 2017 Ocean Pines PROGRESS
Election Committee renews effort to announce election results on day of vote count Board reviews amended version of M-6 resolution The most far-reaching and perhaps the most controversial change the committee is seeking has to do with announcing the election results on the same day (Friday before the annual meeting) that the ballots are counted. M-06 would be amended to allow that, something that the previous board, when both Trendic and the committee recommended it, refused to adopt. Trendic said that if the change is approved, the election results would be e-mailed to the current directors and posted on the OPA Web site. The fate of the proposed amendment to M-06 is uncertain at best. Director Cheryl Jacobs, the only director to comment on the proposed change during the Nov. 30 meeting, asked Trendic why the committee was resubmitting a proposal that had been rebuffed by the previous board. Jacobs was one of a majority of directors who had opposed the change earlier this year, joined by directors Tom Herrick, Pat Supik and former director and acting General Manager Brett Hill. Trendic responded that it is his responsibility as the Election Com-
mittee’s board liaison to bring any committee recommendation to the board for consideration. He said if the new board isn’t interested in the proposal, it needs to notify the committee to that effect. Assuming that Jacobs, Herrick and Supik remain opposed to the change, the fate of the proposed change would rest with OPA Presi-
Director Cheryl Jacobs said the revised resolution removes language regarding the items for review as part of the strategic planning process, such as community development, that she feels should be retained. “I like that spelled out,” she said, “so that we see the various things that they look at.” Trendic said he would defer to the committee on the issue but added the board can revisit the language if necessary. Moroney, on the other hand, said he prefers that the resolution not specifically state what the strategic planning process will include because it may change based on the needs of the community. “I actually like it narrower. We’re not defining what the strategic plan is going to be,” he said, adding that is the role of the general manager and department heads.
Usually a strategic plan contains eight to ten goals, followed by three to five objectives per goal that are established by a planning group, Moroney said. Then the general manager develops implementation steps necessary to complete each objective. Those steps may change from year to year making it hard to define everything goes into strategic plan, he said. “I kinda like it smaller like this and you take into account all of that as you go through the planning process,” he added. In making its recommendations, the committee said the strategic plan should address at least three years, preferably five years in the future, and should contain measurable goals and objectives for the association and relevant departments, as well as head count needs, major programs, operational, maintenance
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dent Doug Parks, new director Colette Horn, and recently appointed Director Ted Moroney. Parks has made a point of advocating for better working relationships between OPA committees and the board. He did not vote on the committee’s proposal in March, but he had previously indicated he was in favor of it. While the former board rejected the proposal 3-2 in a March 25 vote, all directors favored allowing the vote count by the Elections Committee to occur in a meeting open to the membership. Previously, ballots were opened in a closed session of the committee and prior boards had resisted calls to open up the process.
Crafter of the month
Election From Page 23
Jacki Kollar was the Pine’eer Craft Club’s Crafter of the Month for November. Having moved to Ocean Pines in April, 2005 from the Baltimore area, she has served on the club’s Executive Board for ten years and has held many different positions. She is the Assistant Shop Manager of the club’s Artisan & Craft Shop in White Horse Park, co-chair of the Winter Wonderland Artisan and Craft Festival, and contributes to the club’s Facebook page. She enjoys sewing, items such as purses, pillows, coasters, and eyeglass cases. In addition she embellishes wine glasses and creates wine gift baskets. Her creations are available for purchase at the Artisan & Craft Shop opposite the Ocean Pines Community Center on Saturdays 9 a.m. to 3 p.m. and Sundays 10 a.m. to 3 p.m.
and capital spending by department. Future committee activities should focus on it functioning as a resource and research group that supports the staff’s planning and planning review process, The committee also recommended that a series of comprehensive planning survey questions that have been in the works for years and were last sent to the board on Feb. 20, 2017 be released to the general manager and his staff for their review and finalization. The questions that are ultimately posed to community members should be determined by the general manager with board input, the committee said. That’s essentially what Daly said at the October board meeting. Bailey made no comments about the status of the community survey during the November board meeting.
24 Ocean Pines PROGRESS
December 2017
December 2017 Ocean Pines PROGRESS
25
OPA FINANCES
December 2017
OPA behind budget by $870,000 half way into 2017-18 fiscal year By TOM STAUSS Publisher he Ocean Pines Association generated a $63,261 negative operating fund variance for October and has a cumulative negative variance to budget of $869,940 half way into the 2017-18 fiscal year. Variances to budget translate into the actual operating loss or surplus by the final month of the fiscal year, in April. With negative variances of more than $60,000 for September and October, and with the OPA heading into the colder months, an operating loss in excess of $1 million seems
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realistic, if not likely. If each month from November through April generated a $60,000 negative variance to budget, then the loss during the current fiscal year would exceed $1.2 million. The OPA administration has not yet generated an end-of-year forecast at the fiscal year’s half-way mark, as routinely occurred during the administration of former General Manager Bob Thompson. OPA Director and Treasurer Pat Supik several months ago predicted a deficit of less than $1 million, but she did not include a projection in her treasurer’s report delivered during the
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Nov. 30 Board of Directors meeting. The current board has not publicly asked new General Manager John Bailey to generate such a forecast, which in any event will have to be part of the proposed 2018-19 budget that the administration will unveil by the end of this month. According to the October financial report submitted to Bailey and the board by finance department staffer Gina Grigoreva, the OPA’s $63,261 negative operating fund variance for October resulted from revenues under budget by $11,933, expenses over budget by $46,073, and new capital expenditures over budget by $5,525. The $869,940 negative variance to budget for the first half of the fiscal year resulted from revenues under budget by $685,743, expenses over budget by $124,549, and new capital expenditures over budget by $59,698. The October results are slightly worse than September’s but a significant improvement over August, when the OPA generated a whopping negative variance to budget of $211,701. After a modest loss of roughly $8,000 in September, the Yacht Club slipped back into a familiar pattern in October. It lost $42,460 for the month and had a negative variance to budget of $40,254. For the first six months of the year, the Yacht Club has an actual loss of $286,828, with a negative variance to budget of $397,387. The year-over-year negative swing is $389,963. After several consecutive months of solid performance, golf operations slipped a bit in October. The loss of $479 was modest, but golf was budgeted to produce a surplus of $18,827 for the month. The negative variance to budget for the month was a $19,306. For the first half of the year, golf has an operating surplus of
$122,894, under budget by $28,151. But the year-over-year positive swing is $104,294. The Tern Grille generated a slight operating loss in October of $800, missing its budget by a scant $84. For the year through October, the golf club’s bar and restaurant operation has generated a $10,946 loss, with a $24,705 negative variance to budget. Beach Club parking, which traditionally doesn’t generate much revenue after September, this year somewhat inexplicably generated a surplus of $29,491 in October, ahead of budget by $29,528. Through the end of October, Beach Club parking has generated $301,190 and is ahead of budget by $31,046. Year-over-year, Beach Club parking has slipped by roughly $90,000. Aquatics to be a solid performer through the first six months of the fiscal year, despite a $45,699 loss in October. It missed budget by a modest $2,978 for the month. For the year, however, Aquatics has generated a $328,154 operating surplus, ahead of budget by $3,667. Aquatics’ year-over-year positive swing is $177,182 through October. The Beach Club, closed during October, lost $1,110 for the month while beating its budget by $8,721, according to the financial report. There appears to be an error in the Beach Club summary, however. With $30 in revenue, and $2,449 in beverage costs, net revenue should have been a negative $2,419. But the statement shows net revenues of a positive $2,478. With total expenses of $3,589, the net operating result should have been a negative $6,008, not the $1,110 loss that’s shown. That’s an error of $4,898. The year-to-date actual loss, rather than $50,866 loss shown in the report, should be a loss of $55,764. The year-to-date negative variance to budget would also be higher, $315,947 instead of the reported $311,049. Through October of last year, the Beach Club was sitting on a $161,444 surplus. Marina operations lost $8,495 for month, missing its budget by $1,396. For the year, however, marina operations fared well, generating $213,341 in net revenues through October. That was $4,060 ahead of budget but roughly $10,000 less than the same time a year ago. q
26 Ocean Pines PROGRESS
December 2017 Ocean Pines PROGRESS
Board considers changes to resolutions, procedures Moroney details complex series of tweaks to key governing documents By ROTA L. KNOTT Contributing Writer ajor changes to how the Ocean Pines Association approves and implements resolutions that have an impact on its operations are under consideration by the Board of Directors. At a Nov. 30 meeting, the board held a first reading of revised resolution B-01, a declaration for procedures for adoption and classification of board resolutions to establish and maintain a Book of Resolutions. Director Ted Moroney, liaison to the Bylaws and Resolutions Advisory Committee, presented the proposed changes for consideration, saying they represent a major overhaul of the document. “This is the resolution that handles how we approve resolutions and how they’re taken care of,” he told his fellow board members. One of the primary changes to the resolution is inclusion of language aimed at ensuring consistent review of all proposed changes to the OPA’s other governing documents. “This is an important one as far as I’m concerned,” Moroney said. It will require the committee to review all proposed amendments to resolutions to ensure consistency with the governing documents and appropriate laws regardless of the advisory committee to which the resolution applies. He said the bylaws committee “regardless of what our advisory committees may submit,
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October financials
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From Page 26 All three racquet sports lost a modest amount of money in October. Tennis has a positive variance to budget of $1,239, while platform tennis and pickleball missed their budgets by $56 and $405, respectively. For the year so far, all three racquet sports are in surplus, with tennis ahead of budget. Reserve Summary -- The OPA through Oct. 31 had $8,199,346 in reserves, a modest reduction from the September total of $8.23 million. The replacement reserve carried a balance of $5,091,554, also a
here the idea is that it will go to [the committee] which will compare it to what the governing documents are, [what the] law is and kind of look at it how it fits in the community.” Other committees may not look at the whole picture, while the Bylaws and Resolutions Advisory Committee can do so to help “avoid unintended consequences” such as creating resolutions that conflict with the governing documents, Moroney said. However, each advisory committee will remain responsible for drafting proposed language for resolutions and submitting it to the board, which passes it along to the bylaws committee for review prior to board action, he said. The proposal removes all language related to the election of members of the board because that is specifically addressed elsewhere in the OPA’s governing documents. It also removes the word “advisory” as it relates to two association com-
mittees because the Architectural Review and Elections committees are established in the governing documents and therefore are not advisory to the board. Moroney said that change will bring the resolution into conformance with the governing documents. Another change simply inserts the words “governing documents” instead of declaration of restrictions regarding the relationship of to internal policy rules of association amenities and compliance with rules and procedures. “That’s to broaden out the resolution to cover all of our governing documents rather than just the declaration of restrictions,” Moroney said. The new resolution clarifies that the introduction of a resolution action must occur at a regular board meeting. This issue came up during the M-06 amendment process in the last year and caused some confusion.
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This applies to the introduction of a resolution action and not to the process of discussing and amending the action after introduction. “The first reading shall be at a regular meeting of the board and first reading submittal is not by motion,” Moroney said. A first reading submittal does not involve a board vote, a new procedure that the board has already begun to emplement. The revised B01 says that a first reading proposal must appear on the agenda of each board meeting at which it is to be considered and copies are to be distributed to each member of the board and made available to OPA members on the OPA Web site, with the notice of the agenda that is released to the membership before each meeting. The revision clarifies the meaning of a first reading. The purpose is to get a proposed resolution action before the board for its consideration as well as the association membership. Rejection of consideration cannot be done at that meeting. Amendments to the proposed action, followed by approval, or a rejection of the action, comes only at a future meeting. Adoption of a resolution can occur at at any special or regular meeting on second reading. “Everything q
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28 Ocean Pines PROGRESS
BOARD OF DIRECTORS
December 2017
Resolutions From Page 27
happens after the second reading,” Moroney said. The consideration of a resolution action may extend beyond the second reading meeting, if necessary. Currently the resolution states that the board must accept public comments on proposed resolutions, but the new language states it must accept “lot owner comments.” OPA President Doug Parks questioned that change, saying it seems restrictive. He said that suggests
that the OPA’s meetings are only open to its members. Moroney responded that the committee is recommending that change because only property owners who have a vested interest in the operations of the homeowners association should have a say in how it functions. However, the meetings at which resolutions are discussed can be open to everyone, he said. The draft resolution specifies that the board member who submits a resolution action for first reading is responsible for providing a sufficient description of the action. If the
board subsequently approves action, that director is responsible for providing the OPA secretary with a final copy for signature approval. “The bylaws committee has done a good job in broadening what we’re doing and including all of the governing documents and also trying to set up a process that actually mirrors what we do. Rather than have some kinda of a process that we ignore as we go along,” Moroney said. In the past, resolution changes were made and but never finalized and placed in the official book of resolutions, he said.
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Under the revised resolution the OPA secretary will obtain the required signatures of board members on an adopted resolution action and verify that the original signed copy is filed in the book of resolutions. The signed copies comprise the control copy of the book of resolutions. A copy of the book of resolutions will be maintained in the Association offices and be available to any member of the Association or the duly authorized agent of such member at any reasonable time. A fee may be charged for copies. The proposed resolution specifies that the Bylaws and Resolutions Advisory Committee will assist the board by reviewing all new resolutions and any amendments changes to existing resolutions for consistency with the Ocean Pines declarations of restrictions, bylaws, articles of incorporation, turnover agreements, and applicable Maryland law. The committee has established a governing document spreadsheet which lists all relevant documents and their review status. The committee will establish the entity responsible for each Resolution and a schedule of due dates far a review of the Resolution purpose. If an amendment to an existing Resolution is recommended, it is the responsibility of the entity making the recommendation to prepare the documentation.
October financials From Page 27 modest reduction from the previous month. The bulkhead reserve has grown from $1,815,219 at the end of April to $2,597,596 as of Oct. 30, reflecting $822,367 in waterfront differential revenues contributed at the beginning of the fiscal year. That was little changed from the August balance. But it represents roughly three years of spending that routinely occurred when the OPA had a multiyear bulkhead replacement program in place. No such program has been proposed to or approved by the board. The roads reserve remained virtually unchanged in September with a balance of $510,196. Capital summary – A new schedule in the financial report indicates that capital spending through Oct. 31 of $796,599 is substantially more than the budgeted $364,745. The variance is $431,854.
December 2017Ocean Pines PROGRESS
Bylaws and Resolutions panel calls out board for ‘lax responses’ to advisory committee input Asks for budgetary support for legal counsel By ROTA L. KNOTT Contributing Writer
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n its annual report, the Bylaws and Resolutions Advisory Committee called out the Board of Directors to failing to respond promptly to input from the Ocean Pines Association’s various advisory committees. Director Ted Moroney, who serves as board liaison to the committee, provided an overview of its year-end report, which included several recommendations for enhancing committee engagement, to his colleagues during a Nov. 30 board meeting. In the report, the committee discussed the problems it encountered during the last year and detailed the assistance it says it requires to overcome them. Topping the list was
property owner engagement in all of the OPA’s the advisory committees. According to the committee, more property owners would be encouraged to volunteer and participate in the various committees if they knew the board of directors was reviewing and responding to their input in a timely manner. Delays in board response to committee recommendations creates a “perception that their input is of little value.” Moroney said he thinks the current board is doing a better job of responding to input from the committees. “I believe we’re doing that. I believe we’re completely up to date,” he said. Indeed, OPA President Doug Parks has made more effective use
of the advisory committee a hallmark of his presidency. Moroney suggested the board may “need to be a little more public” with the information that it receives from the committees. He said it is important that everyone know what actions are being taken on committee recommendations. The committee also asked the board to consider including funding in the fiscal year 2018-19 budget to cover the cost of legal assistance when it is reviewing some of the association’s governing documents. Moroney said he spoke with Chairman Marty Clarke and so far the committee only has one item that is currently being reviewed by OPA legal counsel. Moroney said items reviewed by
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the committee, like resolutions and bylaws changes, do not have to be sent to legal counsel for review, but the group feels it would be a good idea. “It’s not required to go to legal, but they would like to have something budgeted,” acknowledging did not offer a specific budgetary number in asking for assistance. Moroney said the group also pointed out the impact that constantly changing board liaisons has on the operation of the OPA’s advisory committees. “It does point out one thing that is a problem in Ocean Pines and that is to the extent possible, depending on terms, we should try to keep the same liaison with the same committee,” he said, adding that changes in board liaisons coupled with changing chairmen for the advisory committees can delay their work. He said they are “sometimes spending an enormous amount of time” trying to get caught up on their duties. Last year, the committee’s functions were guided by board Resolution C-04 as well as its governance q
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Avery Hall rep suggests Yacht Club may be underinsured for flood damage Confirms that pools, bulkheading and docks are not insured by flood policy By ROTA L. KNOTT Contributing Writer espite paying nearly half a million dollars in premiums annually for a wide range of insurance, ranging from hazard, vehicle, crime, cyber, storage tank pollution, children’s camp, to workman’s compensation, the Ocean Pines Association may be under-insured for one of its most valuable community amenities, the Yacht Club.
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Kathy Bennett, vice president of commercial insurance with Avery Hall Insurance, provided an overview of the OPA’s extensive coverages, for which it pays $400,000 to $500,000 in total premiums annually, during the regular month meeting of the Board of Directors Nov. 30. She said the OPA has blanket coverage of up $22.158 million, with deductibles in place at various OPA venues. Despite the costly coverage, Ben-
nett said the association would only be eligible for a fraction of the value of the Yacht Club should the structure be damaged by a flood. She said the swimming pool, bulkheading and docks are not covered. Wind and hail damage is insured up to the replacement cost, with a $10,000 deductible in place, she said. Despite its location in a hurricane and flood prone area, the Yacht Club is insured for up to $500,000 for flood damage, Bennett said. That
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is the maximum allowable coverage under federal flood insurance policy. The OPA has declined to purchase an excess flood insurance policy that would provide coverage beyond that $500,000 limit, she said, suggesting that the OPA might want to revisit that in the future. The only OPA amenity with coverage beyond that maximum federal limit is the Beach Club, Hall said. Similarly, furniture and equipment at the Yacht Club is only covered for $55,100 in damages. However, Bennett said built-in kitchen equipment would be considered part of the building under the policy. “Flood insurance is actual cash value, not replacement cost,” Benq
30 Ocean Pines PROGRESS
Bylaws committee From Page 29 document, which includes 34 board resolutions. During that period, the committee reviewed resolutions B-01, C-01, C-04, C-05, C-10, C-11, C- 12, C-14; advisory committee requests for corrections, changes, or comments; suggested corrections and/or changes; and submitted documents to the board for approval. During the coming year, the committee plans to continue using its governance document form to review and approve at least one document per meeting.
Voting begins in annual ‘Light Up the Pines’ contest
The community’s annual ‘Light Up the Pines’ house decorating contest is back for a bright seasonal show of lights. The contest, sponsored by Choptank Electric, was open to any resident within the community limits of Ocean Pines who registered by the deadline, Friday, Dec. 8. Ocean Pines Marketing and Public Relations Director Denise Sawyer photographed registered homes on Saturday, Dec. 9. Entries will be judged by resiProductswho vote on dents Quality and non-residents the Ocean Pines Association’s FaceGreat book page, inthePrices “Light up the Pines 2017” photo album. The three photos with the most ‘Facebook Likes’ Custom Kitchen and Bath Design will be named the first, second and third place winners. Stop By Our Beautiful Showroom The entries will be organized in an onlineMon-Fri map.10-5 The map was posted Sat 9-12 Dec. 9 a.m. at www.oceanpines.org. 11021 Nicholas Lane, Unit 2 Voting is to take place from Mon21811 Dec. 22 on day, Dec.Ocean 11,Pines, to Md Friday, Facebook.
By TOM STAUSS Publisher lobodan Trendic has made it clear as an Ocean Pines Association director that he takes very seriously his role as an opponent of operating deficits and unnecessary spending. Some of his colleagues may regard themselves in a similar light. However, when it comes to offering specific ideas for accomplishing the goal of reducing deficits and spending, Trendic appears to be in a league by himself. That seemed clear enough during the Nov. 30 monthly meeting of the Board of Directors, during which Trendic offered a motion to cut the OPA’s “recurring operating expenses for the 2018-19 fiscal year by 5 percent.” His proposed motion was met by a thundering silence; not one colleague offered a second, even for purposes of discussion, as sometimes happens just as a courtesy or to allow a healthy debate even when the conclusion is more or less ordained. In support of his motion, Trendic said the 2016-17 audit report indicates that the OPA finished the year in the red with a year-end operating deficit of $363,640. “The recent October 2017 financial report indicates a growing problem that could result in a nother year-end deficit (that’s) possibly even larger than the one reported the previous fiscal year,” Trendic said. Actually, there’s literally no way that this year’s deficit won’t come in much higher than last year’s. The negative variance to budget at the end of October is already at $810,000. Any cumulative negative variance, which most likely will continue to climb as the OPA enters the
S
Insurance coverage From Page 30
nett told the board. Should the Yacht Club be damaged by flooding, the existing policy would pay out the value of the damage, not what it costs to repair or replace it in the event of a catastrophic event. Director Ted Moroney queried Bennett about the adequacy of the OPA’s flood insurance coverage. He asked if she thinks the coverage is high enough. The OPA has always made the choice not to purchase excess flood insurance for the Yacht Club because the OPA felt it wasn’t susceptible to flooding, Bennett said. How-
December 2017 Ocean Pines PROGRESS
Trendic motion to cut OPA expendiures by five percent fails Colleagues don’t want to hamstring general manager; Parks says board is fully behind efforts to restrain spending cooler months, translates into an an actual loss by the last month of the fiscal year. While OPA officials seem reluctant to predict an operating loss that reaches into the seven figures, the odds of that happening would seem to be much greater than a deficit anywhere close to last year’s. Trendic said the fiscally responsible way of combatting last year’s and this year’s deficits is to make a concerted effort to cut operating expenditures. Although he didn’t bring up the threat of higher assessments next year, he has been consistent in his belief that an assessment increase is the wrong way to address management deficiencies that he believes produced last year’s and the current year’s looming deficit. Shocked when his motion failed to receive a second, he summed the situation up as one in which his board colleagues weren’t prepared “to go foward” with budget cuts. OPA President Doug Parks, however, jumped in after the defeat of Trendic’s motion to say that he did not want the OPA membership to conclude that the board was not serious and committed to fiscal restraint. “Putting a specific target compli-
cates” that effort, Parks said, adding that the board and General Manager John Bailey sre already aware of a multitude of possible solutions to operating deficits. Parks said there are cost-saving options that the board will choose from as it reviews the general manager’s proposed 2018-19 budget in January. “I don’t want to give the members the impression we’re not making an effort,” he said. The rebuff of Trendic’s motion continues a debate that began in October, when the board and members of the Budget and Finance Advisory Committee grappled with how and whether to acknowledge or otherwise deal with last year’s $350,000 operating deficit. The discussion occurred during a joint meeting of the board and committee Oct. 25. That meeting almost didn’t happen, despite clear direction in a board resolution that mandates it as part of the OPA’s budget process. It’s supposed to happen in September, according to the resolution, and when it didn’t it seemed possible it might not happen at all. Trendic, a budget hawk and stickler when it comes to board process, prevailed upon Parks to schedule a
ever, when a hurricane recently hit Houston, Texas, 80 percent of the properties damaged were not located in a flood zone, she pointed out. When asked about waterfront structure like the bulkheads and docks, Bennett said those aren’t covered by flood insurance, either. The OPA has chosen to “self-insure” for damage to those structures. Bennett said she was asked by the OPA a few years to research whether it would be possible to obtain supplemental flood insurance for the Yacht Club including the swimming pool and for an amount at or close to replacement value. She said she had been informed that “another community” that she didn’t name -
it actually was Captain’s Cove, on Virginia’s Eastern Shore - had such coverage for its Marina Club facility. She said her agency did extensive research on that issue, including talking with that community’s insurance agent, and discovered that “they don’t have coverage for that” and that there “isn’t a way to get coverage” for a swimming pool or supplemental flood insurance at or close to a building’s replacement value. But Tim Hearn, the Captain’s Cove property owners association president, later told the Progress that in fact the Cove association does have such coverage and obtained it with the help of an insur-
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special meeting to comply with the board resolution mandating a meeting between the board and B&F committee to discuss the budget. During the session, Trendic was perhaps the most up-front in promoting the view that deficits last year and this year need to be acknowledged in next year’s budget. He specifically mentioned last year’s $350,00 deficit but in a subsubsequent conversation with the Progress, he said the same is true for this year’s deficit, whatever it is estimated to be during the 2018-19 budget process that normally concludes in February. He was joined in that idea by appointed Director Ted Moroney. “You need to identify the deficit in (next year’s budget),” Moroney said, without defining what form that “identification” might take. Moroney had stopped short of advocating an assessment increase to cover it, but that would be one way to offset an “identified” shortfall. Trendic made it clear he was adamantly opposed to an assessment increase to cover last year’s and this year’s anticipated deficit. In remarks to the Progress, he had advocated making cuts in the OPA’s operating budget next year in the amount of roughly $500,000, with a cut of roughly the same amount the following year, to offset these losses. He said cuts could be made in salaries, suggesting bonuses for meeting or exceeding budget by top management as opposed to raises. He previously has suggested that the OPA offers far too generous health and retirement benefits to employees. He has advocated leasing out the Yacht Club restaurant as a way of eliminating traditional losses at that amenity. ance consultant based in New Jersey, the MB Davis Group, working with Captain’s Cove local insurance broker. General hurricane damage from wind would be included under the OPA’s $22 million blanket building and property damage policy, according to Bennett. “That’s blanket across all properties,” she said. Under that policy the OPA must insure up to 90 percent of replacement cost valuation on its buildings. “So, we should be covered even if we were to lose 80 percent of our properties as long as we’re at 90 percent?” Moroney asked. Apparently the answer is yes, so q
BOARD OF DIRECTORS
32 Ocean Pines PROGRESS
BOARD OF DIRECTORS
December 2017
Property owner urges board to suspend waterfront differential in 2017-18 General manager plans to unveil details of replacement program at January board meeting By TOM STAUSS Publisher n background remarks offered before an Oct. 28 Board of Directors vote on to approve an emergency bulkhead replacement contract, Ocean Pines Association Director Ted Moroney said “the issue of long-term replacement will be addressed after the Board receives a presentation from the GM/Public Works (Department) at the November board meeting.” According to Moroney, Bailey and the Public Works Department would be disclosing at the Nov. 30 board meeting details of the long-promised but long-delayed multi-year bulkhead replacement program. The previous multi-year replacement program expired two or three years ago, depending on who’s talking, with so-called emergency repairs occurring on a piecemeal basis since then.
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One such emergency repair was approved by the board last month. Actually it was a full replacement of failed bulkhead in Wood Duck Isle. As it turned out, Moroney’s comments about a presentation at the Nov. 30 board proved to be somewhat optimistic. Neither Bailey nor anyone from the Public Works department even mentioned bulkheads at the Nov. 30 meeting, at least in the public session. Bailey simply needed a little more time to complete his proposal. He told the Progress in a Dec. 5 telephone interview that the plan now is to present it to the board and the OPA membership at the board’s regular meeting in January. He said that will still give the board time to act on a multi-year replacement program as part of the 2017-18 budget review process that begins in January and concludes in
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February. There’s is no regular board meeting scheduled for December. With a multi-year replacement program for next year not yet approved, Ocean Pines waterfront owner Richard Nieman appeared before the board Nov. 30 to urge the directors to suspend for one year the $465 waterfront differential imposed on owners of most bulkheaded property in Ocean Pines. The differential is levied on top of the $921 base assessment imposed on every property in Ocean Pines, bringing the total waterfront assessment to $1,386 per year. Nieman also asked the board to suspend the portion of the $921 base assessment, roughly $19, that the OPA collects from property owners to maintain OPA-owned bulkheading in Ocean Pines. Nieman, who is not the only OPA member to lobby the board for a suspension in bulkhead maintenance fees, said the waterfront/bulkhead reserve fund currently contains enough money to fund three or more years of bulkhead replacement under the old 35-year replacement program. He said that under the pay-asyou-go program that had been in place, roughly $800,000 was spent on new replacement bulkheads each year, about the same amount as was collected through the waterfront differential. The reserve summary dated Oct. 31 supports Nieman’s contention. The bulkhead/waterways reserve
Insurance coverage From Page 31
long as the loss is not caused by a catastrophic flood. To help keep the value of OPA properties accurate, Bennett said an insurance valuation is performed annually for any building over $100,000 in cost. There are separate deductibles for the Yacht Club, Beach Club, and Country Club. At the Beach Club and Yacht Club the OPA has purchased additional coverage to reduce the deductibles to just $10,000 on each of those buildings. Because the Country Club is being remod-
contains $2.6 million in earmarked funds, more than three times the $800,000 annual expenditures from the bulkhead reserve when the replacement program was active. While careful not to accuse the current board of wanting to use excess funds in the waterfront/bulkhead reserves for purposes other than to which it is intended, Nieman made it clear that he thought a future board could decide to transfer bulkhead reserve funds out of that reserve to be used for purposes unrelated to bulkheads. Nieman said that in light of the current $800,000 negative variance in the operating fund for the current fiscal year, there may be pressure on the board to increase lot assessments next year to offset this year’s eventual operating deficit. By suspending the collection of the waterfront differential and the portion of the base assessment used for OPA-owned bulkhead repair or canal dredging, Nieman said it’s possible that the increase could be offset and the lot assessment even reduced for property owners who otherwise might be facing higher assessments next year. In his Dec. 5 interview with the Progress, Bailey said that he could understand the point that Nieman was making and could even agree with it if the OPA continues to function without a multi-year bullkhead replacement program in place. But he said he and the Public Works department are hard at work putting one together for action by the board next year and that, accordingly, he could not support suspending the waterfront differential in next year’s budget. Without providing details, he said the OPA would be proactive in replacing bulkheads next year.
eled, the OPA declined to do so on that building. The OPA holds a variety of other insurance policies on its assets, including inland marine and watercraft coverage, as well as for other hazards, such as crime, director liability, and storage tanks. OPA President Doug Parks said he invited Bennett to speak at the meeting to help educate the OPA membership about its insurance. He said it is important for the board to make sure it is doing due diligence, “covering our assets and doing other things we should as a quality organization.”
December Ocean Pines Pines PROGRESS PROGRESS November 2017 2016Ocean
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34 Ocean Pines PROGRESS
COVER STORY
December 2017
Committee says maintenance is main concern at Beach Club Suggests OPA should continue pressing for public liquor license By ROTA L. KNOTT Contributing Writer aintenance and upkeep was a problem for the Ocean Pines Association at the Ocean Pines Beach Club this past summer, according to a committee that advises the Board of Directors on food and beverage matters. The Clubs Advisory Committee in its annual report to the Board of Directors said the facility was plagued by a series of electricity, plumbing, and computer/IT issues. The committee said it was apparent that the building, which suffered problems like multiple water leaks, needed some improved maintenance and structural repairs. “It is an older building, and as with many of the OP buildings/amenities, it has not always been kept up as it should be.” The report said many of the maintenance issues were addressed and the committee is pleased with the progress. “We hope that the scheduled maintenance program we suggested last year has been put in place so that work gets done before it becomes a major problem,” the committee said. While the food served in the past at the Beach Club was consistently good and there was an extensive menu, the quality of the offerings suffered during the 2017 season, according to the committee. “Unfortunately, this year that was not the case.” For a variety of reasons, including changing the method customers used to place an order, both the quality of the food and service was very poor, the report said. The committee asked the previous Beach Club manager, who quit after numerous changes to the food and beverage operations lwere made ast year, how the amenity was able in the past to offer good, inexpensive food. She told the committee the Beach Club offered a significant number of quality menu items using just a griddle and fry station. It did so by having set menu items that made it easy for the cooks to replicate recipes and by adjusting the menu based on what the customers said they wanted. “Considering the difference in management, food and service, we would suggest going back to the system that worked in the past,” the report states. The committee did not explicitly endorse rehiring Linda Huettner, the former manager, which at least two OPA directors have advocated this past year. That would be up to her and General Manager John Bailey. In order to enhance services at the Beach Club, the committee suggested continuing to work toward acquiring a different classification of liquor license for the facility. The committee said the OPA should “keep applying” for a “public” liquor license so that the Beach Club can serve the general public and expand its operating hours. Regarding operations at the Country Club, the committee had little to say. Its only recommendation was simply to “finish the current renovations.”
M
Angel tree
Ocean Pines Aquatics is once again working to spread holiday cheer to area families in need with its annual “Angel Tree” program. Housed at the indoor Sports Core Pool, l the tree is decorated with angel tags containing the holiday wishes of six children from two local families. Ocean Pines Aquatics has participated in Worcester County GOLD’s (“Giving Other Lives Dignity”) “Helping Hands for the Holidays” program for the past four years to obtain the names of the families. Area residents are encouraged to remove an angel ornament from the tree at the Sports Core Pool and purchase the appropriate gift for the child or children described on the tag. Wrapped gifts should be returned to the Sports Core Pool by Dec. 15.
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COVER STORY
December 2017 Ocean Pines PROGRESS
Clubs Committee says lack of staff contact hampers effectiveness Group presents summary of major activities last year By ROTA L. KNOTT Contributing Writer n its annual report to the Board of Directors, the Clubs Advisory Committee says a lack of contact with and cooperation by Ocean Pines Association staff hampered its ability to do its job last year. The committee was not able to meet with the Yacht Club manager for most of the year. Because it could not have a conversation with the people directly responsible for implementing policy and changes, the committee was hindered in its ability to advise the board on issues of concern regarding food and beverage operations, the report said. “Although our liaison has taken suggestions to the BOD, we feel that our inability to interact with the department heads has had a negative impact on our effectiveness as an advisory committee,” the committee said in its report. Still, the committee managed to make a series of recommendations for improvements at the dining clubs last year, some of which were implemented and others that remain on the table. The committee suggested that funds be made available to decorate the Cove restaurant at the Yacht Club, and that was done successfully. The new look has “softened” the overall look and feel of the room and it is no longer referred to as “the cafeteria.” With limited seating space available around the tiki bar and demand increasing, the committee suggested improvements to expand its capacity. In an effort to expand the seating options and provide additional premium seating for the paying bar customers it recommended installing a bar rail along the water side of the patio wall. That project was included in last year’s OPA budget and the rail was recently installed. Another recommendation was the purchase of additional bar stools for along the newly installed drink rail, which was designed to only be wide
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enough for drinks so that no food can be served at this location. The additional bar stool seating would not have an impact on the maximum seating capacity for food service, which is based on the number of parking spaces at the restaurant. “We had also suggested adding some outdoor couches and chairs along with tropical plants in the water side corner next to the pool fence and tiki bar similar to what you see at the Sunset Grill (a West Ocean City restaurant).” That suggestion has not yet been implemented, possibly due to a Worcester County permitting restriction on the creation of additional seating at the facility. Still, the committee said if that is not what is holding up implementation of that suggestion then the idea should be considered again. The committee said last year there were some problems with long lines at the Yacht Club tiki bar. To
help address that problem it suggested using beer and wine satellite stations on busy weekend nights to ease the crowded bar area. One benefit of this option is that staff can put up and take down those stations as needed. Satellite stations were used several times during extremely busy events. However, the problem with long lines remains primarily because of the limited number of bartenders on duty during any particular shift. “We would suggest that either the number of bartenders be increased or satellite stations be used during busy events,” the committee said in its report. Another suggestion that has so far been ignored was to create a dedicated service bar to help improve the efficiency of the other bars. “At that time we understood that the service bar plans had been approved by the county and that construction would start soon, but
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for whatever reason, it has not yet been built,” the committee’s report says. While the committee had recommended construction of a new bar at the Yacht Club, it was not built where recommended. It suggested adding an additional bar in the dining room area in the space used as a hallway for servers in order. Instead, last year a new bar was built in the entrance hallway where the hostess stand had been located. “There is some concern that this bar has not been used as effectively as had been anticipated because of its location. The location also forces families with kids to walk through a bar area when entering the Cove.” The committee said it would better to repurpose that new bar as its proposed service bar. There continues to be a demand for a food and beverage concession at all of the swimming pools, and especially at Mumfords Landing, according to the committee’s report. During the 2016 pool season, the OPA renovated the old concession space at the Swim and Racquet Club and the Aquatics department began offering a variety of food and beverages at that amenity at reasonable prices. Patrons received the improvement well and the concession made a profit that year. There were discussions about opening similar operaTo Page 39
Flag retirement
Scout Master Ken Nichols of Ocean City Troop #261 estimated that between 500 and 600 flags were properly retired by burning in a ceremony at the Worcester County Vetrans Memorial in Ocean Pines Nov. 18. More than flags were properly folded, cast into the fire pit managed by the Bishopville Fire Department and given one final salute. Cub Master of Ocean City Pack #261 Nick Busko is shown instructing cub scout Recee Solomon on the correct techniques to fold a flag. Steve Haffner, a USCG Auxiliarist and Ocean Pines resident who was witnessing the ceremony, noticed that there was a perfectly good USCG Auxiliary flag in the pile to be destroyed. He was able to fold it and save it from the fires of annihilation with an eye to returning it to service with the USCG Auxiliary.
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COVERY STORY
Ocean Pines PROGRESS December 2017
Debate continues to swirl around whether Yacht Club is a business or an amenity By ROTA L. KNOTT Contributing Writer he debate continues on whether the Ocean Pines Association should consider the Yacht Club as a community amenity or operate it as a business. In its year-end report to the Board of Directors, the Clubs Advisory Committee says this issue needs to be looked at again. The committee said the issue is whether the Yacht Club, and the Cove restaurant within it, is an amenity paid for by and operated for the pleasure of the Ocean Pines residents or is it a stand-alone restaurant that needs to be financially self-sufficient like other local food establishments. The committee said it understands that the board decided some time ago that all possible profit centers, including the Yacht Club, Beach Club, Country Club, aquatics, and racquet sports, are amenities that should make an effort to break even. They are not to make a profit at the expense of providing amenity type services, such as music for all to enjoy, according to the committee. “It seems that all of the discussion about losses need to be balanced with this BOD input,” the committee report says. Still, there continues to be discussion of closing down the Cove restaurant during the winter months because it has lost money in the past. In reality, and according to the board, the Cove is very unique in that it is both an amenity and a business that needs to watch its expenses and strive to at least break even, the committee’s report says. “Unfortunately, this year has been one of, and possibly the worst year ever for the new Cove.” Indeed, through Oct. 31, six months into the 2017-18 fiscal year, the Yacht Club’s restaurant is $286,828 in the red. with a negative variance to budget of $397,387. A year ago through October, the restaurant had generated a $103,135 surplus. So the year-over-year negative swing is a rather staggering $389,963.
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Businesses strive to provide a good product and service in order to be successful. The Cove, however, is restricted by whatever management and the board dictates after completing the budget process. To meet the needs of the community, the committee recommends that the Cove remain open throughout the year, although on a limited basis during the winter months. There is no indication that John Bailey, the OPA’s new general manager, or the board is interested in closing the Yacht Club completely during the winter months. Bailey currently has the amenity open Fridays and Saturdays and plans to keep them open on that schedule through March. The committee expressed concern that the number of local restaurants competing for business with the Yacht Club has increased dramatically. It said the addition of new local restaurants as well as eateries in Berlin and West Ocean City, offer “very tough competition” for the Yacht Club. “Unfortunately, because of the poor service and food available at the Yacht Club since the new facility opened, a majority of Ocean Pines residents do not even consider going there except to listen to music and enjoy a drink. Obviously something has to change,” the report says The committee said that Ocean Pines’s ability to successfully run three major food and beverage concessions, including a full time restaurant, a seasonal beach bar/ cantina, and a golf course concession has historically not been good. This past year has shown a need for a full-time professional management team or to consider other options for the management of all of the food and beverage concessions. Bailey has some experience in the food and beverage industry that the committee feels will be a benefit and help improve the overall management of the Ocean Pines food and beverage facilities Still, the committee said Bailey has a lot on his plate.
“Although Mr. Bailey’s expertise will undoubtedly play an important role in fixing this ongoing problem, it is not the only issue he has to deal with and allocate time to. Expecting the new GM to be able to address the current F&B problems on his own, along with the multitude of other problems he has to address, is probably unrealistic,” the committee report says. If the board wants to maintain in-house management of the restaurant, the committee recommended retaining an independent restaurant consulting firm to review the entire business model for food and beverage operations. The firm would make recommendations, hire and train new staff, and help operated the facilities until the OPA-employed manager is ready to take over the day-to-day operations. Since Bailey has some knowledge of restaurant management, contracting with a consulting firm may be a good option, according to the committee. The alternative is to lease the facility to an established restaurateur. “If this option is chosen, it will be extremely important to have a contract with very specific goals and objectives to protect and benefit Ocean Pines,” the report says, adding that “one of those requirements would be to operate the Yacht Club restaurant at least on weekends during the winter.” In the meantime, the committee suggested that the OPA consider a series of other improvements to help boost activity at the Yacht Club restaurant, including offering valet parking service as a way to circumvent county limits on seating capacity due to parking constraints. “Our thought is that customers could park off campus and be taken by golf cart to the Cove. This will also help dramatically when weddings and large parties are booked into the banquet area, especially during special events on the patio.” The committee said acoustics in the Cove are not good, and it is loud, therefore difficult to have a conversation with other customers.
It previously suggested adding sound baffles, room dividers, and other sound deadening items to help quiet the noise. Although Public Works built a divider and placed it in the Cove, there are still issues with sound on the second floor that need to be addressed. Bailey recently discovered sound baffles in storage and intends to hire a consultant to assist in installing them in the proper locations. Under the current schedule, dinner service is only available upstairs when a band is playing in the banquet room. “With this arrangement, due to the noise, it is not possible to carry on a conversation during dinner. We would suggest that dinner be served downstairs in the Cove regardless of music being played upstairs,” the report says, adding that customers who wish to eat in a less noisy environment can enjoy dinner and then go upstairs if they want to listen to the music. Additionally handicap and wheelchair accessibility to the Cove is not adequate, according to the committee. While the handicapped parking is adequate, once a customer gets to the Cove entrance door there is no automatic door opener to assist them getting into the building. Once inside, there are no automatic door openers to help them through the foyer or into any of the bathrooms. “ “Although the current handicapped access may have been approved by the county, it is still a problem keeping a growing portion of our community from using the facility,” the report says. Finally, the committee said bringing in paying customers during the shoulder and winter seasons is important if the Cove is to be successful. The panel suggested offering a good bar menu and happy hour specials, along with investment in the NFL television package to draw in customers during football season. While that was implemented with some success, the committee also recommended holding it in the upstairs bar with a tailgate Bar-B-Q during half-time on the second floor deck. The committee wants to create a survey for customer feedback regarding items they would like to see on the Cove menu. It is designing a new survey card for the board’s consideration.
December 2017 Ocean Pines PROGRESS
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COVERY STORY
Ocean Pines PROGRESS December 2017
Jacobs summarizes top three Clubs panel recommendations GM finds sound baffles for Yacht Club’s upper level, plans installation
By ROTA L. KNOTT Contributing Writer eneral Manager John Bailey is already addressing two of the three top recommendations made by the Clubs Advisory Committee for improvements in the Ocean Pines Association’s food and beverage operations. In its annual year-end report to the Board of Directors, the committee suggested hiring a restaurant consulting firm to assist with planning for changes, addressing sound quality, and enhancing handicapped access at the Yacht Club. Director Cheryl Jacobs summarized the Clubs Advisory Committee’s top recommendations during a Nov. 30 board meeting, saying that Bailey is already in the process of responding to two of the concerns. The committee’s first suggestion was to hire a restaurant management consultant to make recom-
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mendations on the overall management and running of the OPA’s food and beverage services. The scope of the contract would include direction related to hiring and training of staff and selecting menu items with the primary goal of improving the service, quality and consistency of the food, and overall dining experience at the Yacht Club. Jacobs said the general manager is already on it. During his general manager’s report, Bailey told directors he has been meeting with restaurant management consultants about the options for assisting the OPA with food and beverage operations. He said he “even heard from a few didn’t I expect to hear from.” He has also met with “several very interested and passionate knowledgeable parties that reside in here as well.” He is currently awaiting receipt
of proposals from the consultants and will have that information to the board as part of a food and beverage operations plan that includes the Yacht Club by Dec. 31. Jacobs said the advisory committee members are also working on a revision of the food and beverage service comment card for patrons. “You may not have seen those for awhile,” she told members at the board meeting, but said they were used previously to garner feedback from diners about their experience at the club. The committee wants to bring them back. The advisory committee’s second recommendation was to improve the sound quality in the dining and banquet rooms at the Yacht Club. Patrons have complained about the noise level in the facility, saying it is difficult to carry on conversations because sound reverberates
throughout the Yacht Club. The committee suggested the issue could be rectified “through the installation of baffles to allow for conversations during dinner and not being overwhelmed during music events.” Once again, the general manager is already working to address the problem. Bailey said he has found the sound baffles that have been missing from the Yacht Club and plans to hire someone who is knowledgeable about the units to install them at the amenity. Finally, Jacobs said the advisory committee’s third recommendation was to improve access at the Yacht Club for handicapped patrons. The committee said access to the bar and the dining areas is challenging for individuals with a handicap and suggested “making it more wheelchair friendly, including automatic door openers.” Jacobs thanked members of the Clubs Advisory Committee for a “really wonderful comprehensive report and all the good work that they’re doing.” She said everyone shares in the goal of having a successful food and beverage operation in Ocean Pines.
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COVER STORY Leasing vs. consultant From Page 1 Properly training all employees and clearly defining their duties is of paramount importance, the committee says. All restaurants have a need for proper management and it starts with having detailed job descriptions with responsibilities from the restaurant general manager down to the janitor. According to the recommendation, a consulting firm could help the OPA ensure servers are trained to describe every item that is offered on the menu and specials and anticipate things needed when delivering food to the customer, such as condiments. “Every visit to the dining room should include a visual scan of his/her tables to see if anyone needs anything.” Another example, the committee cited was when taking a second drink order, the server should ask if anyone else would like another. “Too many times when flagged down for a second drink they head off to get it and upon return someone else orders a drink. Wasted time spent fetching things that should have been delivered makes everything delayed a little at a time.” The recommendation goes so far as to say that servers should be trained to up sell customers for items like appetizers, desserts, and coffee after dinner. The committee suggests having a contest for the most desserts sold in a month as a way to help servers see how up selling customers can have an effect on their tips. “Make sure the servers are held accountable for the guest check being paid.” The committee says all of those training areas are currently lacking at the Yacht Club. In addition, it cited ways a consultant could help kitchen staff be more responsible for proper food preparation and display in an esthetically pleasing manner. “The chef must rotate the inventory using the oldest first to avoid spoiling. If an item is not moving fast enough it must be re-purposed into a special entree or appetizer to move it. If it doesn’t move it should be removed from the menu,” the report says. It also discussed what should be common business practice, but the committee apparently feels is not currently happening at the Yacht Club. For example, it said food deliveries should be checked and weighed
December 2017 Ocean Pines PROGRESS
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before the driver leaves the premise, produce that is not fresh should be rejected, and a new supplier should be secured if supply problems persist. Menus during slow months must have a smaller variety of items so there would be multiple uses for foods and even make specials of the items. “There must be creativity to assure food does not spoil,” according to the report. If it decides to pursue hiring a restaurant consulting firm, the committee suggested the OPA consider working with Haley/Kammerer, a subsidiary of SoDel Concepts. The restaurant group has ten eateries, a catering company and a food truck. Since its inception in 2005, Haley/
Kammerer has consulted on dozens of restaurants both locally and regionally, specializing in back office systems, new restaurant design and strategic planning, front house training and labor and food cost reduction. Some notable and long-term clients include the Cape May Lewes Ferry, Troegs Brewery and Tasting Room, and Bayside Resort Golf Club. The committee’s alternative recommendation for the Yacht Club was to lease the facility to an outside party, acknowledging that the idea “has been discussed and heatedly debated since the new Yacht Club opened.” If the board decides not to consider hiring a consulting firm, the best
alternative would be to lease the facility, according to the committee. It stressed the importance of any lease favoring Ocean Pines residents’ ability to use the amenity during winter months, even if just on weekends. Finally, if the OPA insists on administering the food and beverage operations in house, a third option would be to hire a managing partner whose income would depend on the success or failure of the operation. The committee was marginally optimistic that the new general manager’s previous experience with food and beverage operations would help make this option more successful than previous attempts at an inhouse operation.
Lack of staff input
One idea under discussion by the committee is establishing a food runner service that would allow pool patrons to order food and nonalcoholic drinks from the Cove and have them delivered to the pool by golf cart. A menu and phone number for the Cove kitchen would be available at the Mumford’s Landing pool front desk so that patrons could call to place an order. A member of the Cove wait staff would deliver the food to the Mumford’s pool using a golf cart or by walking. That idea was put on hold by
the OPA last year when the board initially approved funding for a food truck, which would have been available during peak hours at the Swim and Racquet Club, Mumford’s Landing, and Sports Core pools on a rotating basis or as needed. “For various reasons, the food truck was never purchased and the demand for access to food is still a priority with pool patrons,” the committee said, adding that the OPA should consider establishing some form of food and drink concession at all of the pools that do not currently have them.
From Page 35 tions at Mumford’s Landing and the Sports Core pool. However, in 2017 the Swim and Racquet Club concession was not operated by the aquatics department, most of the previously available food items were not for sale, and it lost money. “A desire to have access to food and drinks at all of the pools is an ongoing complaint and a reason families have demanded entrance to the YC pool,” the committee’s report says.
Change of Watch
The Ocean Pines Boat Club concluded its 27th year with its annual meeting and change of watch dinner-dance Nov. 5 at Adolfo’s Restaurant in Ocean City. Commodore Richard Marchesiello turned the helm over to the Boat Club’s new Commodore, Patricia Marchesiello. Pictured left to right are 2018 officers and directors Steven Stein, Richard Marchesiello, Patricia Marchesiello, Joseph DiMartino, Thomas Southwell, Stuart Glassman, Nancy Engelke, Fred Heinlen, Lawrence Walton, and Doris Lloyd. Not present Janet O’Brien and David Landis. The winner of the outstanding member award was Elsie MacMullin. Individuals wishing to join the Ocean Pines Boat Club or obtain information may contact Pat Marchesiello at 410-208-6933.
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WORCESTER COUNTY
Ocean Pines PROGRESS December 2017
Showell school construction on path to begin next year Bids for $42.4 million project due in June By ROTA L. KNOTT Contributing Writer lans for the construction of a new Showell Elementary School are moving forward, with design documents now complete and work well under way on construction documents. Lou Taylor, superintendent of Worcester County Public Schools, provided an update on the project to the Worcester County Commissioners in November. Taylor appeared before the commissioners seeking approval of the school system’s fiscal year 2019 capital improvement plan, in which replacement of Showell School is the top priority at a cost of $42.4 million. Taylor said the design development documents were submitted to the state for review in August and the school system is on schedule to complete and submit the construction documents to the State in January of next year. The successful, on-schedule completion of each of these phases of design has allowed the school system to remain on schedule to seek county authorization in January of next year to proceed with bidding of the project. Bid opening is tentatively scheduled for June of next year and, pending approval of the bids, construction is expected to begin in October. The Showell Elementary School Feasibility Study, completed in April 2014, detailed the need for the construction of a replacement school. The study was approved by the Board of Education in May 2014 and by the commissioners in August 2014. The study, including the replacement school recommendation, was approved by the State in September 2014. The Board of Education completed conceptual planning and educational specifications for the Showell project in August 2016. “Through each phase of the design we have continued to work diligently to narrow the scope and the estimated cost of this new school,” Taylor said. In cooperation with the commissioners and county staff, the school system reduced the working project cost estimate for Showell from the $54.6 million included in its FY 20I7 CIP in October 2015 to
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the current working project estimate of $42.4 million. The FY 2019 CIP maintains the $42.4 million construction cost estimate and requests partial state funding for the project of $4.336 million. In October, school officials appeared before the Board of Public Works to discuss the FY 2019 CIP requests. Taylor said the appearance went very well and the school sys-
tem received preliminary support of the Showell Elementary project from the Governor, the comptroller and the treasurer. Also, in October, school representatives met with the state Interagency on School Construction to review the CIP and had another positive meeting. Taylor commended the commissioners for their support and participation throughout the Showell design process and for their contin-
ued support of the school system. “It is our belief that we have been successful in addressing our school construction needs because of the combined efforts of our Board of Education, county commissioners, state legislators and community members. It is our hope that with the ongoing support of the county commissioners, we will continue to provide all Worcester County children with excellent educational facilities,” Taylor said in his request for approval of CIP. Ocean Pines Commissioner Chip Bertino made a motion to accept the school system’s FY19 CIP, with Diana Purnell offering a second. The motion was approved unanimously.
County begins posting video of meetings online By ROTA L. KNOTT Contributing Writer orcester County residents are now able to watch from the comfort of their homes as their governing body conducts official county business. On Nov. 7, the first audio-visual recording of the Worcester County Com-
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Lighting up the Pines
missioners’ open-session meeting became available for viewing on the county Web site. “I’d like to welcome everybody out here in the audience today and everybody who may watch this at home on the computer later this afternoon to the new age of Worcester County Commissioners’ meetings,”
Members of the Pine’eer Craft Club recently gathered in White Horse Park to decorate the Christmas tree in front of their Artisan and Craft Shop. The tree is filled with specially crafted items containing holiday memorabilia, wooden snowmen, and sleighs made with Popsicle sticks. Pictured are Luz Castillo, Lois Schultz, and Carol Quinto.
Commissioner Joe Mitrecic said at the start of the Nov. 7 meeting. “And I would like to thank all my fellow commissioners for allowing this to happen.” Last year, the commissioners voted unanimously to move forward with installation of an audio visual system in their meeting room at the Government Center in Snow Hill to provide video access of their meetings on the county website at www. co.worcester.md.us. The commissioners chose to begin video taping and posting the meetings online as a way to assure that county residents can keep current with county business at their convenience, rather than taking time off from their jobs to attend the meetings. The inclusion of the new recording system assures that those who are unable to attend the commissioners’ bi-monthly meetings on the first and third Tuesdays may stay up-to-date on all Worcester County legislative and administrative issues. To view the meeting video, visit the county’s website, click the meeting files icon, and then click watch. The high-definition video is fully indexed, allowing viewers to scroll through to view discussions on specific agenda topics or to watch the meeting in its entirety. Future commissioners’ meetings will be videotaped as well and will be available for public viewing on the county website following each meeting. The commissioners contracted with Swagit Productions, LLC of Dallas, Texas to record, catalogue, and broadcast the meetings.
OPINION
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December 2017 Ocean Pines PROGRESS
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COMMENTARY It’s time to consider once-a-week trash pick-up
cean Pines residents might not be too pleased once they learn that their quarterly trash collection rates will increase from $48.11 to $59.04 under a new agreement with Republic Services that the Board of Directors approved in late November, subject to final review of the contract. It works out to a 22.7 percent increase, about $11 more per quarter or $44 per year, for the twice-aweek trash and once-a-week recyclables pick-up covered by the agreement. It’s doubtful that most of the directors were even aware of the percentage or quarterly dollar increase, although the information was available to them in the vetting material provided to them by staff. They just had to dig for it and ply some basic arithmetic. The presentation by management to justify the decision to award the new contract to Republic
was based on a comparison between Republic and its primary competition, Chesapeake Waste Industries. Using a “blend” of annual and six month contracts, management determined that Republic’s bid was slightly better than Chesapeake’s for household waste collection, and significantly better than Chesapeake’s for trash collection at OPA’s various locations. There was nothing irrational about the way management and the board handled the situation. The only possible fault in the process is that the board, in making its decision to accept the Republic proposal, did not have any discussion with the greater Ocean Pines community about whether twice-a-week collection is worth the additional expense. Granted, in dollar terms it’s not huge, but in percentage terms it seems like a rather large jump. For once-a-week collection, Republic would charge a bit less than what it charges now for
twice-weekly service. It really should be up to Republic’s customers to determine whether they prefer to stay with twice-weekly pick-up or move to a schedule that is typical in communities throughout the country. If a critical mass of respondents lets the board know that they’re not wedded to twice weekly service, it’s possible that the board would accept Republic’s proposal for once a week service. There’s apparently still some time for that. One advantage would one less day of heavy trash trucks stressing Ocean Pines roads and less noise pollution from grinding brakes. A disadvantage would be that at least some households would be inconvenienced because they generate too much trash and can’t easily fit it in a single trash bin. Even that’s not an insurmountable problem. Republic will accept additional bags of trash if and when they’re left out for collection. -- Tom Stauss
Time to suspend waterfront differential? Maybe!
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ust in case anyone is paying close attention, the Ocean Pines Association’s bulkhead and waterways reserve is flush with cash, $2.6 million as of Oct. 31, more than three times what was spent annually on the old multi-year bulkhead replacement program that expired a few years ago. As OPA member Richard Nieman pointed out at the Nov. 30 meeting of the Board of Directors, that’s a lot of OPA member money to be sitting on without a new bulkhead replacement program in place. Indeed it is. A November unveiling of a new bulkhead replacement program has been delayed a couple of months, with OPA General Manager John Bailey indicating that a little more time is needed to get it right before it’s introduced to the board and the community at large. Fair enough. Better to get it right than to get it done by some artificial, self-imposed deadline that was probably not realistic to begin with. He now expects to unveil details of the new program at the January meeting of the board. Bailey told the Progress that in his draft budget for 2018-19, he will not be acceding to Nieman’s request for a one-year holiday in the waterfront differential paid by most owners of bulkheaded lots in Ocean Pines. While expressing sympathy for the rationale behind Nieman’s request, he says the multi-year replacement program that he and his staff will be unveiling in January, to be considered as the board wrestles with next year’s budget, should make it clear why no holiday in the imposition of a waterfront differential is justified. The budget review process in January and February should provide ample opportunity to test that theory.
But let’s say that the board, after reviewing the new replacement plan, decides that funding at the old $800,000 per year rate is adequate. Keep in mind that on May 1, another $822,367 (or thereabouts) will flow into the bulkheads and waterways fund from assessments paid primarily by owners of bulkheaded property. That would mean that more than four years of assessments will be parked in the bulkhead reserve for bulkhead replacement, far more than what would be needed under an $800,000 per year replacement program. Under that scenario, a tax holiday of one year and one-year only could still be approved as part of the 2018-19 budget.
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It would be entirely justified. Of course, any board of directors is likely to be concerned about the difficulties of reintroducing a waterfront differential after that one-year holiday. If properly promoted as a way of right-sizing the bulkhead reserve balance for this new program, a one-year holiday in collecting the waterfront differential (and roughly $19 in the base lot assessment) could be sold to the membership. If it turns out that a new program will be costing much more than $800,000 per year, then the rationale of a one-year holiday is not as compelling. -- Tom Stauss
‘Quiet pool’ solution has fatal flaw
he effort by a self-appointed “working group” of Ocean Pines residents to find ways to mitigate the effects of eliminating the adults-only Yacht Club “Oasis” pool was well-intentioned. Challenging a decision by the Board of Directors is never easy. After much research and examination of possible alternatives, the group arrived at a “quiet pool” solution for the Yacht Club, designed to curb the sometimes loud enthusiasms of young people that interfere with the enjoyment of the pool by some who occupy an older demographic. The proposed rules, from the point of view of those most affected, would surely be regarded as draconican. No jumping into pools, no Marco Polo, no ball-throwing; the list goes on. It’s not very welcoming, from a kid’s perspective; nor was that the intention. One flaw in the group’s proposal is that it
would require the Aquatics Department to hire a staff of older adult lifeguards to enforce its strict rules and regulations. Of course, the working group doesn’t regard this a fatal flaw, merely a hurdle to be overcome. But the proposal presumes there would be a sufficient number of mature adults available to fill the slots. Ocean Pines has traditionally relied on a homegrown staff of young people to guard its pools. To expect or even to force the Aquatics Department to hire only or mostly older people to staff the Yacht Club pool is to engage in micro-management, and it’s unfair to young people whose first step on the economic ladder often is a job as a lifeguard. All Ocean Pines’ pools should operate under the same set of rules. It is unfair to treat some aquatics members by a different set of rules than others. -- Tom Stauss
42 Ocean Pines PROGRESS
OPINION
December 2017
COMMENTARY Ocean Pines needs better flood insurance
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cean Pines President Doug Parks did OPA members a real service by inviting a representative of the agency that handles somewhere between $400,000 and $500,000 a year in OPA insurance premiums to the Nov. 30 meeting of the Board of Directors, ostensibly to deliver a candid assessment of the various insurance products purchased by the OPA, their coverages and their costs. It was enlightening, to say the least. For Ocean Pines property owners who were paying close attention, however, some of what said by the agent was disturbing, and not only because she was a bit foggy on how much the OPA actually pays in annual premiums for coverage that in some cases appears to be lacking. The presentation raised the question of whether coverages would be all that helpful in the event of a truly catastrophic weather event, especially that involving flood damage. With respect to the Yacht Club, the agent acknowledged that the OPA’s flood coverage is limited to the $500,000 cap in the national flood insurance program. She suggested the OPA give some thought to augmenting it, citing the recent experience of Houston that bore the brunt of major flood damage from a hurricane. That seems like excellent advice that the OPA should heed. Apparently there is some supplemental flood coverage in force at the OPA’s Beach Club in Ocean City. That’s a good start. She made it clear that any claims the OPA might make for flood damage won’t pay for the replacement of the OPA’s $5 million (and still growing) Yacht Club investment. That limit at the Yacht Club is considerably less than replacement value. Coverage is much better for wind damage, thankfully. Still, the OPA essentially is self-insuring for a substantial percentage of the replacement cost if a storm surge destroys the building. That’s code for if something really bad happens, the OPA and its members will be assessed for any shortfalls. She also confirmed that Ocean Pines’ five swimming pools are not covered. Nor are bulkheads and docks, all of which could be massively affected by a storm surge caused by a hurricane. A few years ago, she said her firm had been asked to check into “another community’s” flood coverage after having been informed that its swimming pools were covered and that it had obtained supplemental flood insurance that was at or close to the replacement value of key amenities. She said her firm had checked with that community’s local insurance agent and determined “that they don’t have coverage” for pools or supplemental flood coverage at or close to replacement value. The community she was referring to is Captain’s Cove, Va., a smaller version of Ocean Pines located just across the Maryland-Virginia line in
As part of its due diligence to obtain the very best flood coverage that can be had, the OPA should consider hiring an independent commercial insurance consultant ... Accomack County, one county south of us. Some time ago, previous OPA management was informed that Captain’s Cove had managed, through the services of a commercial insurance consultant based in New Jersey, to secure supplemental flood insurance coverage for its Marina Club amenity, a combined yacht club, restaurant and community center that cost about $8 million to build, and three outdoor pools at or close to replacement value. OPA officials at the time promised to look into it. They did. But therein lies a conundrum, a conflict that cries out for some further research. Tim Hearn, the Captain’s Cove HOA’s president then and now, was the source of that information some time ago about his community’s insurance coverage, and he stands by it today. In a telephone conversation with the Progress in early December, he expressed amazement that the OPA tolerates such substandard flood coverage of one of its primary assets, the Yacht Club, and its five swimming pools. According to Hearn, the secret to the Cove’s success in obtaining superior flood coverage is that it hired an insurance consultant -- Mitch Davis of MB Davis Group of New Jersey -- to assist its local insurance broker in scouring the marketplace for competitive bids and the very best in supplemental coverage, using the roughly $200,000 the Cove pays in insurance premiums annually as leverage. He is of the opinion that the OPA’s $400,000 to $500,000 in total premiums would give the OPA even greater leverage in securing much better flood coverage for its important assets than Captain’s Cove with its more limited resources. It costs the Cove association roughly $5,000 per year to keep Mitch Davis on as a consultant, who is always on the look-out for better insurance for his clients, according to Hearn. A mere $5,000 -- even if it’s more because the OPA has more business to manage -- would be a minor but justified expense for a consultant with a track record in delivering for a client whose community is similar in design (with roughly half the budget) as Ocean Pines. Hearn says the consultant will work with a local agent if that’s the preference of a client. Neither Tim Hearn nor Mitch Davis were
contacted the last time OPA management was provided with contact information, apparently. Hearn doesn’t recall being told that the Cove’s local agent had been contacted to discuss his community’s coverage, either. That doesn’t mean it didn’t happen, of course. It might have. As part of its due diligence to obtain the very best flood coverage that can be had, the OPA should consider hiring an independent commercial insurance consultant like MB Davis. This additional step doesn’t have to replace the local broker, but could supplement it. This step would be especially important should the OPA decide that the Yacht Club, like the Beach Club in Ocean City, needs supplemental flood coverage. If a consultant can help find a way to cover Ocean Pines’ five swimming pools from flood damage, as well as bulkheads and the dock facilities at the Yacht Club marina, that’s a bonus that should not be overlooked. The Davis’ Web site is www.mbdgrp.com. What’s the harm in checking it out and having a chat with Mitch Davis? Let’s hope this time the OPA at least looks into what a competent, independent consultant can deliver. After a catastrophic event occurs it’s too late, and regret won’t pay the bills. -- Tom Stauss
The Ocean Pines Progress, a journal of news and commentary, is published monthly throughout the year. It is circulated in Ocean Pines, Berlin, Ocean City, and Captain’s Cove, Va. Letters and other editorial submissions: Please submit via email only. Letters should be original and exclusive to the Progress. Include phone number for verification. 127 Nottingham Lane Ocean Pines, MD 21811
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OPINION
December 2017 Ocean Pines PROGRESS
43
Oasis pool working group suggests ‘quiet pool’ option GUEST COMMENTARY ion from an outside attorney. James Almand, the attorney hired by the Adult Pool Working Group, has provided us with a legal Memorandum listing a couple options available to achieve our goal of an environment similar to an adults-only pool without violating the Fair Housing Act (FHA) prohibition on familial discrimination. Some members of that group met on Tuesday, Oct. 31, to discuss Mr. Almand’s legal opinion and thoughts on what solution might work best for the majority of Ocean Pines residents. Below is a synopsis of those legal opinions and the groups suggestions on a solution. Most of the cases regarding this issue are with respect to community facilities and common areas that are accessible by virtue of the owner or renters purchase or rental of property within the community. Our case is different because access to the pools within the Ocean Pines community requires a separate membership or daily fee whether the patron is a resident of Ocean Pines or not. This makes it unclear whether purchasing a membership to the OP pools would be considered a privilege of residency or if the Oasis pool would be considered a common area or facility of Ocean Pines. Several ideas that had been widely discussed over the summer are not the legal solutions hoped for. The fact that Ocean Pines offers five different pools does not allow restricting the use of one of those pools to adults-only. The fact that the Oasis pool and Mumford’s Landing pools may be considered one campus because of their close proximity to each other apparently would not make a restriction possible either. There is, however, currently no law that would prohibit Ocean Pines Aquatics from prohibiting certain types of conduct at a particular pool as long as it is age-neutral, meaning it has to apply to all patrons. The courts’ opinion specifically states that “... setting aside certain hours for lap swimming. ... or imposing restrictions on making noise ... or running or roughhousing in the pool area” is allowed. There also appears to be no law relating to the FHA prohibitions
that forbids a community from charging a higher “premium” rate for access to “certain amenities” or in this case, the Oasis pool. There is also the possibility that restricting access to the Oasis pool to patrons 21 years or older would be allowed to assure that Ocean Pines would not incur violations that would have a negative effect on our liquor license. The Maryland Code regarding Alcoholic Beverages states that it is unlawful to sell or provide alcoholic beverages to individuals under the age of 21 and the penalty for violating these statutes is possible suspension or revocation of the liquor license as well as possible misdemeanor conviction and imprisonment. Due to direct access to the Tiki Bar from the enclosed Oasis Pool area, it is possible that a 21-year-old could legally purchase an alcoholic drink and carry it to a friend who is inside the pool area. The gaps in the fencing are wide enough to pass a drink cup through if the underage drinker happens to be outside of the pool enclosure. Although this option could bring about the reversal of the current “Family pool” status, and may be worth exploring, our group does not feel that it is the best solution. After reviewing all of the information, it appears that Ocean Pines can best address this issue by creating a Quiet Pool, an environment similar to an adults-only pool but without violating the FHA. This can be accomplished by prohibiting certain conduct at the pool rather than prohibiting a particular status or age group. Charging a premium rate for use of the Oasis pool, and addressing the underage alcohol consumption concerns are additional options. One option would be to separate the Oasis pool from the other four by creating two pool membership options. One would be similar to the plans available now, but the Oasis would NOT be included in that membership. Residents can have a lower cost for membership and daily rates then non-residents as is the case now. A separate “Premium Oasis” membership would be available for those that wish to go to a quiet pool
with rules that are more strict then at the other pools. To make sure this separate membership does not violate the FHA rules, the rate for this membership, and the daily rate would be the same for both residents and non-residents. The purchase of either membership would not allow access to the other. To attend all of the pools, a member would have to purchase both memberships. All age groups would be allowed under both membership options. For this plan to be effective, the total cost of both memberships (combined) will have to be significantly higher than the current family membership that includes all pools. Reducing the “general” membership slightly because the Oasis pool is no longer part of the plan makes sense. Charging a fee that is lower than the “general” membership for the “Premium Oasis” membership also makes sense. Many of the patrons of the Oasis pool do not go to the other pools even though they have been paying for them in the past. For those that want to go to other pools, a day pass can be purchased. An example: Current summer membership fee for a family is $315 and includes all 5 pools. Using that number, the “cost per pool” is $63. The new “General Membership” might be priced at $252 for a family ($63 x 4) and the “Premium Oasis Membership” can be priced at a premium rate like $189 ($63 x 3), per family. If a patron wants to buy both memberships, the price would be $441. A similar plan can be established for daily drop-in rates. Although this idea has a lot of merit, and could be considered in the future, determining the fees for multiple memberships has the potential to get complicated and changing the fee options could cause additional controversy. The best option, in our opinion, is to create a true “Oasis Pool” atmosphere at the Yacht Club pool. This can be accomplished by instituting additional strict rules of conduct that will apply to everyone using that pool such as no running, no cannonballs, no shouting, no loud noises, no Marco Polo, etc. The problem with this plan is enforcing the new rules. Younger kids may not listen and some parents may not pay attention. q
O
n July 10th this year, the seven-member board of directors, citing legal precedent, voted unanimously during a closed session to open the Yacht Club pool to all ages. That decision to change the status of the formerly adults only “Oasis” pool in Ocean Pines was met with derision and continues to be a sore subject with many in the community. The motion was apparently based on an opinion from Ocean Pines attorney Jeremy Tucker, although that opinion was never released. Mr. Tucker spoke about the policy change again during the annual meeting on Aug. 12th saying, “We continue to look at and try to find options [of] how to address those concerns that have been raised. I make no promises as to what will end up happening,” he said. “I will be advising the new board as to what we’ve discovered and what we think, what the costs are, what the risks are.” Unfortunately this sudden and drastic change to a long-standing amenity, without public input or discussion, caused a tremendous amount of suspicion, frustration and anger among a large segment of Ocean Pines residents. Many wonder how this could happen after so many years with no questions about the legality, and question if the law applies to a community that has five pools with only one designated as adults-only. Because his research and legal recommendations were, and continue to be, discussed in closed session, many are suspicious of the findings acted on by the board. There were several heated confrontations this past summer between adults with young kids and long-time Yacht Club pool users. Most of these were due to kids splashing and jumping near older residents who were fearful of being knocked down and possibly injured. At times, the resulting confrontations almost got out of hand. As a result of these changes, numerous past pool members have said they were not going to purchase memberships next year and opt for daily coupons instead. In an effort to understand the change in status from adult only, and in hopes of bringing a more peaceful solution to the situation, a group of concerned residents decided to raise donation in order to pay for legal fees to obtain a second opin-
44 Ocean Pines PROGRESS
OPINION
December 2017
Guest commentary From Page 43
Asking a young lifeguard to tell an adult that they have to keep their child quiet or under control is not going to work and is really not fair to the lifeguard. For this option to work, we would suggest the following:
Details of the “Quiet Oasis Pool” program should be publicized as soon as approved by the Board. When purchasing a pool membership or day pass, a copy of the rules should be given and a signature obtained acknowledging receipt of and agreement to abide by the rules. Rules should be prominently posted at the Oasis pool entrance
and check-in table Adult Life Guards should be on duty to assure compliance with the rules and the Adult check in person should handle any confrontations with guests Consequences for frequent rule offenders (could be) a Quiet “timeout” for kids? Because of the number of previous
pool members who have said they are not going to purchase memberships next year, it is suggested that a letter or email be sent specifically to them to encourage their return. Swim lanes with lines should be available at all times. Gary Miller, Oasis pool working group Ocean Pines
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December 2017 Ocean Pines PROGRESS
Former board members upset over disclosure of Social Security IDs Hearn defends ‘one-day’ posting of unredacted 1099s as response to owner inquiry By TOM STAUSS Publisher ormer board members of the Captain’s Cove property owners association are upset that the Cove’s members-only Web site disclosed Social Security numbers of former directors in response to an informational request from former director John Ward. Ward had in writing asked for proof that boards prior to 2013 had paid directors and former members of the Environmental Control Committee roughly $200,000 in expenses for attending meetings. The request and the board’s response to it was included in the agenda addendum available to Cove property owners prior to a board meeting in early November. As part of the agenda packet, the Cove initially posted copies of all 1099s issued by the Cove association from 2008 to 2011, to board but apparently not to ECC members. The 1099s initially included the Social Security numbers of individuals. Subsequently, the Social Security numbers were redacted from the site. In an email to the Progress, Ward speculated that the redactions occurred after a Cove employee overheard former directors complaining about the posting of Social Securities numbers online. The agenda packet information is not available to the public but accessible only by Cove property owners with a user name and password. In his recent e-mail to the Progress, Ward said that Cove lot ownership extends up and down the East Coast and that he did not regard that limitation as an extenuating circumstance. He said he and other former directors are incensed about the disclosure of personal information and that as a result, he’s felt it necessary to obtain identity theft insurance. At a minimum, he said he wanted reimbursement for those expenses from the Cove association. He said he has been in contact with attorneys and “law enforcement” to determine whether there is any legal remedy for what he called an egregious and unlawful violation of personal privacy.
F
In addition to individual 1099s, the Cove Web site lists some eye-opening forms issued to law firms by the Cove association in substantial amounts reflecting legal services. Almost $15,000 in legal services were purchased by the Cove in 2008, but that had grown to $201,635,93 in 2009 and $144,171,17 by 2010. The amount dropped to $95,658 paid to one firm in 2011 and another $3,941.90 to a another firm that same year. The Cove Web site did not include any 1099s for 2012. The amounts listed for individual directors do not add up anywhere close to $200,000. Ward said it’s closer to $38,000 for the years in question. At the board’s November meeting, Cove President Tim Hearn implicitly acknowledged that the amounts posted on line did not add up to $200,000. But he said his larger point remained, that boards prior to 2013 had misspent HOA dollars paying for services that should have been offered strictly on a volunteer basis. When Hearn and business associates took over the Cove board as a result of the 2012 settlement agreement, the meeting reimbursements stopped. Hearn said that 1099s for the years 2008 through 2011 had been provided to Ward on the Cove Web site and that 2012 1099s could be obtained by Ward from the Iron Mountain record-keeping company for a fee. He said the information was posted only because Ward had requested it. Ward was not present at the board meeting to hear Hearn’s comments. In his public comments, Hearn said he assumed that there’s “a difference of opinion” over the amount of money paid to board and ECC members prior to 2013. At the time, he didn’t attempt to reconcile his claim of $200,000 against the actual amounts shown in the posted 1099s. The Cove board stopped the practice of paying stipends when Hearn and business associates effectively took control of the board five years ago. That control has been effectively maintained since 2012 because the declarant/developer can and
does vote in annual Cove elections, determining the outcome. In a subsequent telephone interview with the Progress, Hearn said that the 1099s posted on-line occurred for one day only and were not publicly available, accessible only by Cove association members with a user name and password. He said it was done that way to deliver information in response to Ward’s request for information. He said that Communications Director Justin Wilder had asked him whether he should redact the Social Security numbers before the 1099s were posted on the site. Hearn said he told Wilder that the unredacted 1099s could appear on the site for one day only because, in a previous issue raised by Ward with Virginia’s homeowners association ombudsman, a determination had been made that the Cove should not have redacted a document that Ward had requested. That issue involved a document that contained the name of the investor who is lending money to the Cove association for road construction. After a single day of unredacted forms appearing on the site, Hearn said he instructed Wilder to remove the Social Security numbers from the 1099s and then to repost them. Hearn also said that there were no 1099s posted for ECC members in the years at issue because they had elected to serve on the committee as Cove association employees, who received W-2 forms rather than 1099s. Hearn said that the Cove is not permitted to post information on-line about employees out of privacy concerns. But that meant that a tally of both board and ECC member compensation posted on the member Web site did not come anywhere close to $200,000, a point Hearn acknowledged. He said that if ECC member information had been posted along with informations for both board and ECC members for 2012, the total would have been “actually more than $200,000.” Second John Ward complaint -- Also at the early November board meeting, Hearn responded to a complaint filed in October by Ward
45
asking for evidence that CCG Note is the declarant/developer in Captain’s Cove. Hearn cited the 2012 settlement agreement that the then board of directors voted for. It contained the reference to CCG Note as the successor declarant/developer, Hearn said. Hearn said a follow-up meeting after the initial acceptance occurred three weeks later, resulting in another vote to adopt the settlement agreement’s language pertaining to the developer/declarant. Hearn said that Ward should already have a copy of the 2012 agreement because he was a member of the board at the time. Fiber optic -- With indications that the proposal to provide highspeed fiber optic to Captain’s Cove is still well short of the 350 commitments needed to proceed, Hearn has pushed back against the notion that high-speed Internet in the Cove is dead. He said it’s still possible that Think Big Networks, the Internet service provider, will be able to secure the necessary commitments from Captain’s Cove residents. So far, roughly 100 of the 350 needed have been obtained. Think Big initially partnered with FTS Fiber in making a proposal to the Cove board, but that partnership is no longer in force. Think Big remains as the company that continues to be interested in providing high-speed Internet services to homeowners and residents in Captain’s Cove, Hearn said in a recent post on the Cove’s message board. “While there are clearly issues between some of the FTS Fiber investors, calling the company a scam seems to a bit of unnecessary reach, given the continuing presence of Adam Noll, Blake Hargest, and Kenneth Lawhorn in their organization,” Hearn said. “Noll, who had been the CFO, is now acting CEO in the interim. ThinkBig is the name of the content provider from whom members received subscription offers, not FTS Fiber. FTS and ThinkBig are two separate companies, with FTS’ role being focused on the installation of the main fiber line.” Hearn referred to the termination of an agreement between FTS and the government of Queen Anne’s County in Maryland, contending it “had to do with the inability to secure a $6 million bond. As most who work in an industry which require performance bonds are aware, the q
CAPTAIN’S COVE
46 Ocean Pines PROGRESS
CAPTAIN’S COVE
December 2017
Fiber optic From Page 45
collapse of the bond insurer market in the Great Recession has caused this market to be eroded to the point that it requires almost a dollar of liquid capital to secure a dollar of performance bond guaranty. My experience tells me that un-
less QA County decides to wait for Comcast/Time Warner or one of the other larger publicly traded companies with large balance sheets, they will ultimately modify their requirement for a performance bond of this size” for a fiber optic/high speed Internet supplier. With regard to Captain’s Cove, Hearn said “the board will contin-
ue to monitor the situation as it relates to the opportunity for fiber being installed in the community. I believe about 100 or so members indicated an interest in participating in the ThinkBig monthly program to date, and as that is still shy of the 350 subscribers that Think Big’s leadership had indicated was a key benchmark for them, we will be in
discussions with the new FTS CEO and leadership to determine what their next steps might be.” Hearn said no other fiber providers have come forward on the Virginia’s Eastern Shore. “All of the inquiries other than FTS are wireless providers, whose signals will not be effective in large sections of the community,” Hearn said.
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