December 2020 Ocean Pines Progress

Page 1

Viola proposing Admin Building renovation

December 2020

General Manager John Viola is propsing some relatively modest renovations and improvements to the Administration Building. The interior improvements include the replacement of HVAC equipment, new flooring, new ceiling tiles, repainting, and office space dividers. Some personnel may be shifted after the upgrades are complete, Viola said recently. ~ Page 6

Board to review B-8 processes A closed meeting of the Board of Directors on Dec. 19 called ostensibly to review Ocean Pines Association President Larry Perrone’s involvement in drawing up a complaint against Director Tom Janasek turned into a discussion on how the OPA’s processes in Board Resolution B-08 for removing a director could be improved. A work group of three directors has been named to review B-08 and recommend changes. ~ Page 16

COVER STORY

Board renews trash pact with Republic Services that raises residents’ rates by 23 percent over 2017 Directors forgo significantly lower bid by Chesapeake Waste Management By TOM STAUSS Publisher

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he Ocean Pines Association is under no obligation to approve a low bidder in any acquisition or contractual matter, and has on occasion accepted a higher bid because of familiarity and a high comfort level with a particular contractor’s services. But it’s not often that the OPA, through its board of directors, opts to approve the most costly of competing bids in a critical service such as trash collection, especially when the higher bids results in a sharply higher cost to Ocean Pines residents for what many regard as an essential service. The board voted unanimously at its Dec. 19 monthly board meeting to renew a contractual arrangement with Republic Services for trash collection services. The new three-year agreement obligates the OPA to use Republic

for trash pick-up at OPA-owned facilities, but does not mandate that residents use the company. Residents are free to take their trash to the Berlin landfill as an alternative to using Republic for twice-weekly trash pick-up services. The new Republic contract is under review by OPA attorney Jeremy Tucker. Republic’s bid for twice-weekly trash collection and once-a-week recyling pick-up was $24.20 monthly, billed quarterly in the amount of $72.60. The current rate is $20.27, or $60.81 quarterly, with an additional $3.60 charge for an optional 95-gallon container. Three years ago, Republic was the low and successful bidder for trash and recycling collection services for $19.68 a month or $59.04 billed quarterly. The company has availed itself of a provision in the 2017 contract To Page 3

Viola says assessments won’t increase by $121 despite budget draft that suggests they could ~ Page 25

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Viola given bonus, raise for meeting performance goals The Board of Directors is pleased with the job performance of General Manager John Viola, giving him a “four out of five rating” in a recently completed review, the general manager told the Progress recently. That was sufficient to give him both a three percent raise and a $5,000 bonus, he said. The bonus and raise is in addition to a second $5,000 installment of a $15,000 retention bonus he received when he agreed to a two-and-a-half year employment contract a year ago. ~ Page 8

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that allows it to raise rates by up to three percent annually, a provision that would be included in a new contract as well. The increase from the $19.68 per month rate in 2017 over the new rate of $24.20, or $72.60 quarterly, works out to 23 percent, well in excess of inflation and by far the largest increase in trash collection services ever recorded in Ocean Pines. The bid submitted by Chesapeake Waste Management was significantly lower than its competitor’s bid for residential collection services. Including both trash pick-up and recycling, it was very close to Republic’s bid from three years ago. Had the Chesapeake bid been approved by the board, residents would actually be paying less for trash collection services than they are now. In the 2020 bidding, Chesapeake submitted a proposal for annual twice-weeky trash collection and once-weekly recycling totaling $19.28 per month. It was even lower at $19.08 for six-month residential

contracts. Chesapeake’s quarterly billing would have been $57.84 for an annual contract and $57.24 for a sixmonth contract. The quarterly difference between Republic and Chesapeake was $14.76. That’s $59.04 more per year that homeowners will be paying as the result of the board’s decision to retain Republic. The OPA will realize a reduction in fees charged by Republic for collecting trash at the OPA’s various facilities, however. Fees are being reduced from $26,525 in the 2017 contract to $25,143 in the new contract. Chesapeake would have charged the OPA $30,840, a difference of more than $5,000. In offering a motion to approve the Republic contract renewal, OPA Director and Treasurer Doug Parks did not include any rate information, which has been a customary feature of board trash collection contract discussions in prior years. Awarding contracts to low bidders have been customary as well. In public remarks, Parks said

analysis that was done on trash services. Michelle did an outstanding job in her research and creating a spreadsheet for reference and comparison of the bids received.” He said he was not a member of a working group tasked with handling the issue, nor was he assigned to be a board liaison with such a group. Indeed, it doesn’t appear that there was a working group created to vet the competing bids. Parks also said that other than the spread sheet showing the competing bids, Bennett had no written document at the meeting with Parks and Viola to make the case in favor of the Republic bid. As of the time of the board vote, it appears only the spread sheet was in existence, and that was not shared with the entire board. Once having reviewed the spreadsheet showing that Chesapeake’s bid was significantly lower than Republic’s, Daly said he has since emailed his board colleagues asking a number of questions about the rationale behind the recommendation in favor of Republic. “If the rationale doesn’t hold up, To Page 5

that the Republic proposal had been recommended by staff, without providing any details for why staff preferred Republic over Chesapeake despite the sharply higher fees. The Progress has learned that the “staff” recommendation was actually made by Michelle Bennett, the OPA’s senior executive assistant, who General Manager John Viola appointed to the role of vetting the bids. Director Frank Daly told the Progress that he had not seen the spreadsheet detailing the two bids prior to his vote accepting the staff recommendation. This seems to have been the case with other directors as well, but not with Parks or OPA President Larry Perrone, who had met with Viola and Bennett to discuss the recommendation prior to the board vote. Daly said he regretted not having seen the bids prior to voting. “That was a mistake on my part,” he said. Parks said in an email that “for the record and clarification, I was asked to attend a meeting with John, Larry and Michelle in my role as Treasurer/CFO to review the

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December 2020


OCEAN PINES Trash collection From Page 3

I’m open to revisiting the decision,” he said, adding he thought his colleagues might be open to that as well. He also said he wants to know if issues with recycling were relevant to Bennett’s preference for Republic, and whether the contract is for “exclusive” trash collection services in Ocean Pines. He said he’s seen Chesapeake trucks on the streets of Ocean Pines and wonders if that means the company already has some Ocean Pines customers. His attempts to get answers to his questions have been delayed because he was told that Bennett was on holiday leave from two days before Christmas to Jan. 4. “Hopefully the contract won’t be finalized before she gets back,” Daly said. According to Viola, Bennett’s rationale for recommending Republic was that she was “very happy with [the] incumbent. Service was very good is some of what I remember ...

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December 2020 Ocean Pines PROGRESS apparently [aversion to] making a change had some weight also.” He suggested contacting Parks for more insight. Parks responded by sending back an email commending Bennett for her research, but he didn’t offer an explanation for her recommendation. The Progress emailed Bennett prior to her going on holiday leave for her rationale. According to Viola, she emailed Parks for some help in responding to that request. Ocean Pines has had numerous changes in trash collection services over the years. Chesapeake had the contract for one three-year period. Republic has had the contract since 2014, when its bid won out over Waste Management, Inc. Republic won the contract again in a close competition with Chesapeake in 2017. The process of reviewing and vetting bids that year was handled by then General Manager John Bailey. Because the bids were so close, he resorted to a complicated “blended rate” comparison in his decision to recommend Republic. It was a very close call.

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6 Ocean Pines PROGRESS

OCEAN PINES

December 2020

Renovations slated for Administration building

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eneral Manager John Viola is anticipating some relatively modest renovations and improvements to the Administration Building now that the police department renovation and a new roof covering both the police department and the adjoining admin building are complete. The interior improvements include the replacement of HVAC equipment, new flooring, new ceiling tiles, repainting, and office space dividers. Some personnel may be shifted after the upgrades are complete, Viola said, in a meeting of the Budget and Finance Advisory Committee in late November. “Working with [consultant Tobie Jacobs, who was involved in the police department expansion] and Eddie Wells {Public Works director], we hope to do most of the work inhouse,” Viola said. Viola said that the renovation will involve “looking at all the work stations” filled by staffers in finance, information technology and public relations, with some shifting likely to occur.

OCEAN PINES BRIEFS Viola said that one change that has already occurred is the downsizing of the general manager’s office, with a portion of his office already converted into a conference room where he meets with department heads. There isn’t a divider or walls separating his desk from the conference table, Viola said, because he doesn’t think it would be worth the cost. Viola and Wells provided additional details at the Dec. 21 meeting of the committee, estimating the cost at about $100,000. With the blessing of the committee, Viola said he would be taking the proposed upgrades to the board for approval in January. Most of the cost would come out of the replacement reserve, and he hopes the work can be done in-house by Public Works over the winter. Wells said the HVAC improvements would include thermostats in individual offices and euipment similar to that in the new golf clubhouse. Viola said the new flooring

would be laminant rather than carpet. If carpet removal uncovers the presence of mold, Viola said it would be treated appropriately before the new laminant flooring is laid down. Taken together, Viola said he was hopeful the upgrades would deal with sinus conditions that he said are prevalent in the building, which was built in the 1980s. It was last upgraded during the administration of former General Manager Bob Thompson.

Dec. 5 sets rainfall record in Ocean Pines

General Manager John Viola mentioned during the Dec. 19 monthly meeting of the Board of Directors that there was “record” rainfall in Ocean Pines on Dec. 5, a total of 5.7 inches recorded at the Public Works building in South Ocean Pines. The OPA was inundated with calls from residents concerned about the flood conditions, Viola said, noting that the reports underscored the need to make drainage improvements in the Bainbridge Park area of Ocean Pines and elsewhere.

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Recreation and Parks Department Director Debbie Donahue detailed a proposal by the Recreation Advisory Committtee for kayak storage at the Swim and Racquet Club, telling members of Budget and Finance Committee at its Dec. 21 monthly meeting that the Public Works Department would build rental racks for ten layaks at a cost of $3,000 to $5,000, before next summer. The racks would be built just to the left of the beach area at Swim and Racquet, facing the river. Donahue said the racks would rent for $100 to $175, and would pay for themselves with rental revenue over one or two summers. Kayak owners who rent space on the racks would be responsible for securing their kayaks, using their own cables and locks, she said, and would need to sign a waiver absolving the OPA of any liability for damage or theft. She said the racks would not be visible by any homeowner in the vicinity of the Swim and Racquet

Club. To help provide nighttime secutity, Donahue said that lighting and motion detectors would be considered. One committee member suggested that the OPA consider buying the racks from a vendor, fearing that Public Works is already bogged down with too many projects. Donahue said she would look into that possibility.

Robin Hood Park upgrades planned

Delayed by the covid pandemic for most of this year, plans to replace rusting playground equipment at Robin Hood Park in South Ocean Pines, dating back to the 1980s, have moved back to the forefront, Rec Department Director Debbie Donahue told members of the Budget and Finance Committee Dec. 21. Budgeted in the current fiscal year, the replacement equipment from the preferred vendor would cost $49,375, up from an earlier estimate of $47,625. She said that new picnic tables and other upgrades would be made to freshen up the park for users. Donahue said that plans for replacement equipment at Bainbridge Park in North Ocean Pines would be delayed pending completion of drainage improvements in that area.

OPA supports restoration of Jenkins Point island

Ocean Pines Association President Larry Perrone announced during the Dec. 19 Board of Directors meeting that Maryland Coastal Bays will apply for a grant for engineering work to restore the Jenkins Point island, located near the Ocean Pines Yacht Club. He said the Ocean Pines public had an opportunity to weigh in on the matter, but no one sent a comment. Perrone will next complete an affidavit to support the work, which will be part of the grant submission.

Ocean Pines to offer indoor soccer programs

Young soccer players can get a jump on spring season training with two indoor soccer programs offered by the Ocean Pines Recreation and Parks Department this winter beTo Page 8


December 2020 Ocean Pines PROGRESS

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8 Ocean Pines PROGRESS

OCEAN PINES

December 2020

Viola receives $5,000 bonus, 3 percent raise after positive performance review

Pines briefs From Page 6 ginning Wednesday, Feb. 3. “Coaches Joe Monteverde, Eric Benson and I are excited to still be holding the program with a few minor changes,” said Recreation and Parks Program Supervisor Katie Goetzinger. Goetzinger said coaches and parents must wear a mask and only one parent per child will be allowed to come into the community center gym due to limited capacity. Happy Cleats Soccer will allow children ages 2-3 the chance to burn off some energy in a non-competitive environment. Socialization, simple soccer fundamentals and fun will be stressed. The six-class program will be offered weekly on Wednesdays from 5-5:30 p.m. for children age 2. The class for children age 3 will be held from 5:40-6:10 p.m. The cost is $40 for Ocean Pines residents and $50 for non-residents. Pee Wee Soccer, for ages 4-8, will use skills, drills and games to help children build self-confidence and have fun. The six-class program will be offered weekly on Wednesdays from 6:20-6:50 p.m. for ages 4-5. The class for children ages 6-8 will be held from 7-7:30 p.m. The cost is $45 for Ocean Pines residents and $55 for non-residents. Registration is required. To register, call 410-641-7052.

Directors increase GM’s base salary after he hits a ‘four out of five’ rating By TOM STAUSS Publisher t turns out the Board of Directors is pleased with the job performance of General Manager John Viola, giving him a “four out of five rating” in a recently completed review, the general manager told the Progress recently. That was sufficient to give him both a three percent raise and a $5,000 bonus, he said. The Board of Directors in a closed meeting back in March agreed to add language to the contract allowing for an adjustment to Viola’s pay, with no urgency because, at the time, there was no inclination by the board to either increase his base pay or award him a bonus. Viola told the Progress in early October that he had agreed on the language that he said allows but doesn’t guarantee a raise after a performance review that was scheduled for completion in November. In that review, his performance was measured against defined objectives, which included meeting

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budget and policy goals. A new two-and-a-half deal executed in December of 2019 gave him a raise to $155,000 per year, roughly the same as former General Manager John Bailey’s when he departed the Ocean Pines Association. Viola’s latest contract with the OPA is a two-and-a-half-year agreement that runs from Dec. 1 of last year to June 30, 2022. Viola had a six-month interim agreement in place as of June last year, which was converted into a non-interim position with the new contract in December. The latest raise means his salary has crept above Bailey’s. Under the contract, Viola continues to waive health care benefits, but perhaps in an implicit quid pro quo for that waiver the board had agreed to a retention bonus of $15,000, payable in three increments of $5,000 each. The first payment was payable on Dec. 1 of last year, with additional $5,000 payments on the first and second anniversary dates of the con-

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tract’s effective date. The performance bonus just awarded Viola is in addition to the retention bonus that was already part of his compensation packJohn Viola age. The December contract specified 12 days of vacation time per year, 12 days of sick leave with no carry-over provision and five days of personal leave also with no carry-over provision. The contract also specified a limit of 17 days of accrued vacation time. As was the case with Bailey and other association general managers over the years, the contract allows for termination without cause. Viola had been named interim general manager in a special meeting in March of last year. The action was then ratified and clarified in a closed session of the board following its regular meeting the following month, reportedly to fix what some considered inelegant or imperect language in the original motion in March appointing Viola. The initial appointment was intended as an unpaid, voluntary role. He retained some insurance coverage as an officer of the corporation. According to a statement issued by the Board of Directors after a March 7 closed meeting, language would be added to the December contract “to allow for a merit increase based on the performance evaluation of the GM by the Board, as there was no stipulation for that condition in the current agreement.” Although Viola received a raise a year ago, the board’s action in the March 7 closed meeting indicated another adjustment after the April performance review was possible. That didn’t happen. Viola told the Progress recently there is no language in the contract amendment that specifies how much he might be given in a merit increase or bonus. That was entirely up to the board’s discretion.


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10 Ocean Pines PROGRESS

December 2020

Horn agrees to drop sick leave policy changes from package of human resources proposals Board adopts severance, vacation additions to employee handbook

By ROTA L. KNOTT Contributing Writer hanges to the Ocean Pines Association’s employee sick leave rules were sliced from a human resources policy handbook update adopted by the Board of Directors during a Dec. 19 regular monthly meeting. Director Colette Horn, part of a human resources policy work group and who originally offered a motion to adopt the proposed changes, struck the sick leave policy update at the last minute, saying it needs more work following an employee outcry and new information gathered from neighboring communities. The revised sick time policy would have set a maximum year-toyear carryover of an employee’s accumulated sick time of just 48 hours and eliminated the practice of allowing one employee to gift unused sick time to another employee for their use. Horn said the purpose and effect of the work group’s recommendations is to fill gaps in the OPA’s employee policies. She said there cur-

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rently is no limit on the amount of sick time employees can carry over from year to year. After presenting the motion for approval of the full package of recommended human resources policies, Horn said since the recommendation was written “we have received input from employees and additional information has come forth from policies for Worcester County employees and another municipality” related to the sick time policy. “I would say that the sick time policy change is going to require some additional work,” she said. OPA President Larry Perrone offered a motion to remove the portion related to sick time policy changes from Horn’s motion for approval. Director Doug Parks gave a second to his amendment, which was approved unanimously by the board. “There’s a few more working pieces to this,” Perrone said. “We received feedback from the employees. We’re also looking at what the state requirements are as well as what local communities are doing.

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So there’s more work that needs to be done on the sick time policy.” But, Perrone said the board could move forward with approval of the other two portions of the motion, a severance package policy and a vacation time use policy. Currently, no policy exists related to the offering of a severance package to OPA employees or their use of accumulated vacation time. The changes related to those two issues were recommended by the human resources policy work group based on research into the policies of neighboring communities, industry, and consideration of the size of the organization. The human resources update establishes a severance package policy specifying that severance packages will be made available to OPA employees who are terminated due to a reduction in force or job elimination. Severance packages will not available for any other separations from employment, including but not limited to voluntary separation, retirement, termination for cause, expiration of accrued medical leave, expiration of an approved Family Medical Leave Act time, or for temporary layoff. The severance packages will also not be made available to employees who work for the OPA on individual employment contracts. The OPA severance package pol-

OCEAN PINES icy will provide eligible employees with up to one week’s pay for each year of employment to a maximum of 13 week’s pay upon qualifying separation. Additionally, employees will receive one week of medical coverage for each year of employment to a maximum of 13 week’s medical coverage. Should the employee secure employment with a new employer during the time of their severance-based medical coverage, the medical coverage provided by the OPA will cease at such time as the employee secures medical coverage with their new employer. With regard to the severance package, Director Doug Parks said that while the proposed policy states that a qualifying employee will receive a week’s medical coverage for every year of employment and that it will terminate upon medical coverage by a new employer, the policy doesn’t speak to discontinuation of salary benefits. “What about their salary coverage? It doesn’t specifically say that that will. It may be inferred but I’m wondering if it’s better stated that it will also cease with the acceptance of a new job,” Parks said. However, Horn responded that the work group’s intention was not to have the severance salary benefit terminate if a former OPA employee gets a new job. She said that benefit would not cease with the acceptance of new employment, only the medical benefit would terminate, she said. Directors also questioned the timing for payout of any severance package. Perrone noted that the full amount of the qualifying severance package would be paid to the employee shortly after the time of To Page 12


December 2020 Ocean Pines PROGRESS 11

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12 Ocean Pines PROGRESS

OCEAN PINES

December 2020

Severance package was once part of OPA employee handbook Jordan alleges discriminatory application of severance policy By TOM STAUSS Publisher he Board of Directors adopted a proposal to “establish” a severance pay package for Ocean Pines Association employees, but the proposal by Director Colette Horn and the attached “purpose and effect” did not mention the fact that a severance policy has been in effect for much of the OPA’s existence. The motion was presented during the Dec. 19 monthly meeting of the board [see article on Page 10 in this edition of the Progress for details.] It would have been more accurate to state that the motion was designed not so much to establish a severance package but to restablish it. It’s not a trivial distinction, because the OPA’s severance policy or lack thereof is an issue in the pending legal battle between former Ocean Pines Golf Course Superindent Andre Jordan and the OPA over what he has contended in published accounts was his firing for reasons of health and the OPA’s failure to award severance pay for the decades he served as an OPA employee. The draft motion could be construed as an attempt by the OPA to preemptively challenge Jordan’s

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legal claims by attempting to establish a new severance policy in a way that would have disqualified Jordan from receiving a severance under the new policy’s terms. By using the phrase “establish” a severance policy, the motion could also been an attempt by the OPA to argue that there was no severance policy in place when Jordan was terminated by the OPA earlier this year after an extended illness that made it impossible for him to discharge his duties as golf course superintendent. A review of the current employee handbook confirms there is no reference to a severance package in it. This latest iteration of the hookbook was drafted during the administration of former General Manager John Bailey. The Progress has also reviewed a version of the handbook that had been compiled during the administration of interim General Manager Brett Hill in 2017. It, too, does not include any reference to severance pay, which could bolster an OPA argument in future litigation that Jordan had no reasonable expectation of receiving a severance package when he was terminated earlier this year.

But the version of the handbook that dates back to 1999, and that would have been in place during much of Jordan’s employement with the OPA, does include a section on serverance. Section 6.12 of the severance pay plan from the 1999 handbook says that severance pay “may be granted to terminated employees under certain limited circumstances.” It goes on to say that the OPA will establish the terms and conditions for severance pay in writing and communicate “those terms and conditions to employees” as requred by law, with the OPA retaining “the right to amend or terminate its severance pay plan ... in effect from time to time at its sole discretion.” The 1999 handbook says that “employees will normally be con-

Human resources From Page 10 separation of employment. He said the severance amount would be paid in full regardless of the number of weeks it is for, up to the maximum of 13 weeks. He said that is why the OPA could not cease the pay portion of the sev-

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sidered eligible for severance pay if they have worked full-time for at least a year and are permanently terminated because of certain limited reasons.” The policy states that employees will not “normally be considered eligible” for severance pay if the employee is terminated because of an employee-initated voluntary resignation, misconduct, a layoff that is expected to be short-term, a breach of an employment agreement or “a normal retirement, employee-initiated early retirement, permanent disability or death.” Although Jordan faces continued health challenges, and apparently exhausted his medical leave benefits before receiving the termination notice this summer, he has said that he was not classified as permanently disabled at the time of his termination, a contention that the OPA might challenge if the dispute is litigated. The 1999 handbook gave the general manager the authority to determine how many weeks of severance To Page 14

erance package if a former OPA employee accepts a new job. “I like that approach. I think it’s reasonable,” Parks said. However, he said he believes that needs to be clearly stated within the severance package policy of the human resources updates. Finally, the human resources work group recommended the establishment of a vacation time use policy for OPA employees. The new policy states that an employee may use their vacation time for a maximum of 40 consecutive scheduled work hours, meaning they can’t take off work for more than a week. To use more than 40 consecutive scheduled work hours of vacation time, employees will need to get approval from their department head. Director Camilla Rogers gave a second to Horn’s motion for approval of the human resources policies, related only to the severance packages and use of vacation time. The motion was approved in a unanimous vote by the Board. The motion to approve the changes calls for the new human resources policies go into effect for all OPA employees as of January 1, 2021. Horn anticipated bringing the sick leave policy recommendations back to the Board for further consideration in January.


December 2020 Ocean Pines PROGRESS

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14 Ocean Pines PROGRESS

OCEAN PINES

December 2020

Severance package From Page 12

Angler of the year

The Atlantic Coast Sportfishing Association recently recognized its 2020 Angler of the Year in both Bay and Ocean divisions at the Ocean Pines Yacht Club. Angler of the Year is awarded to that fisherman who catches the biggest fish of most species during the year. Shown in photo from Left are Angler of the Year, Ocean Division, Dale Christensen of Ocean Pines; ACSA Secretary John McFalls; and Angler of the Year, Bay Division, Budd Heim of Ocean Pines.

pay the terminated employee qualified for. The the payment was to be a lump sum based on one week’s slary for each year of employment, rounded up to the nearest complete year, with four weeks considered a minimum. Jordan told the Progress recently that he recalls signing a severance policy statement when asked to do so by the OPA, and that he is covered by that even if the OPA later adopted handbooks without an explicit severance policy. He further contends that other OPA employees terminated from their jobs received severance pay, citing a former director of Parks and Recreation and an information technology manager terminated during the Bailey administration. Those severance pay-outs would have occurred when the handbook didn’t include a section on severance, which leads Jordan to conclude he was the victim of discrimination when he was not treated the same way, with many more years of

employment than those individuals. Jordan said he’s hired an attorney to look into his situation, and the likely approach will be to file a complaint with the U.S. Department of Labor alleging discriminatory application of severance policy. Hill, the former interim general manager who held the position before Bailey’s arrival, said he believes Jordan has a strong case because of severance pay-outs received by other OPA employees over the years. “It’s been happening for a long time,� he said, contending that a severance package could be construed as an expected part of compensation that the OPA can’t legally deny. “Withholding compensation could carry stiff penalties that might not be covered by the OPA’s liaibility insurance policies,� Hill added. The severance policy motion presented by Horn during the Dec. 19 seems stricter than the language in the 1999 handbook. Her language says severance is available only because of a reduction in force or job elimination, not for other kinds of separations. The new policy also sets a limit of 13 weeks for a pay-out.

Happy Holidays FROM OUR FAMILY TO YOURS

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OCEAN PINES

December 2020

Board creates working group to review Resolution B-08

Process used to remove a director from office to be scrutinized, possibly revised By TOM STAUSS Publisher closed meeting on Dec. 19 called ostensibly to review Ocean Pines Association President Larry Perrone’s involvement in drawing up a complaint against Director Tom Janasek on behalf of General Manager John Viola turned into a discussion on how the OPA’s processes for removing a director could be improved. The complaint process including procedures for the possible removal of a director is contained in Board Resolution B-08. “Based on our recent B-08 experience, the board agreed that B-08 is light on process for handling a complaint. [A new] work group will review B-08 and recommend to the by-laws committee changes,” Perrone said in a recent email.

A

Three directors -- Camilla Rogers, Frank Daly and Janasek -- will serve on the work group to review B-08, Perrone said. He groused a bit over the fact that the Progress had learned details of a closed meeting discussion but added that the community will be informed of the working group’s recommendations. “First off this issue was a closed session discussion and your source regarding this violated our norms of confidentiality,” Perrone wrote. “That being said this is not an issue that will not get out to the community.” When informed that Perrone had announced the appointment of the working group, Daly told the Progress that he believes that B-08 is in need of a clean-up. Among changes he is considering

is a provision mandating that details of a complaint against a sitting director be provided at least three days prior to a public hearing. Another might be allowing for more time than currently is provided in B-08 to make sure proper notice and details about a pending complaint are made public prior to the hearing. Daly also said he would consider adding a provision mandating that a formal complaint against a director be written by the individual making the complaint. The Progress has been told that in offering his motion to go into closed session after the regular meeting Dec. 19, Parks wanted to explore the fact that it was Perrone, not Viola, who prepared the complaint against Janasek that was the subject of a Nov. 20 hearing. Perrone and Vice-President Col-

lette Horn were seeking Janasek’s removal from the board during that hearing because of negative comments Janasek had made in public settings about Viola’s continued tenure as GM. Janasek apologized for his comments and promised not to make them again. He remains on the board after Horn’s motion for removal failed 3-4. A complaint and public airing this past summer also involving Janasek had to do with allegations that he received free beer and food at the Yacht Club in exchange for providing certain bar maintenance services. That episode might be relevant to possible revisions to B-08 because details of the earlier complaint were never actually confirmed in a public setting. The Progress had published some of those details in a front page article, but the board meeting that followed publication was very light on explicit confirmation of those details. Essentially certain directors advised Janasek to stop what he had been doing without actually To Page 17

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OCEAN PINES

December 2020 Ocean Pines PROGRESS

Viola is candid about software defects, delays Yacht Club implementation By ROTA L. KNOTT Contributing Writer lagued by problems and inconsistent system functionality, the Ocean Pines Association has delayed the roll-out to the Yacht Club of the NorthStar integrated software system. Instead of continuing to bring facilities online with the NorthStar software, the OPA will work with the vendor to troubleshoot the software installed at the Clubhouse Grille and other administrative departments before bringing the Yacht Club into the NorthStar universe. General Manager John Viola during a Dec. 19 meeting told the Board of Directors he has adjusted the software implementation timeline and allocated more internal resources necessary to ensure successful execution of the project, whose cost has gone north of the original $400,000 budget. “We have been experiencing random unreliability on a fairly regular basis. We are working with the software company to isolate the causes of these problems by creating an audit log which will include pertinent details of each incident. This will allow the software company to have a better chance of narrowing down the root causes of these problems,”

P

Complaint process From Page 16 saying what that was. Daly seemed to be suggesting that B-08 needs to be made more explicit in mandating that complaints against directors be spelled out prior to any hearing called to consider them. Daly said the closed meeting on Dec. 19 did not focus on Perrone or more specifically Parks’s concerns about the authorship of the Nov. 20 complaint against Janasek. “In my opinion the discussion was more about process than people, although you can never completely separate the two,” Daly wrote in an email. Ocean Pines General Manager John Viola did not attend the meeting and later said he was not invited to offer any input.

January Viola said1st in his presentation to the board. thru January 18th. We will He added that vendor support has open January 19th. been inconsistent and the OPA is trying to determine why that is the

case. “Timely responses and appropriately skilled technicians are key to acceptable uptime, and we’ve not been able to establish a consistent level of either,” he told the board.

To remedy the situation, the software company plans to hold weekly update calls to go over open items instead of bi-weekly calls, the vendor’s support leader will attend every other meeting to be sure staff is following priorities, and the support leader will also address these concerns privately with his team, not only at meetings, Viola said. In addition, an open items list will be overseen by a support leader for q

OPA grapples with challenges in NorthStar implementation

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December 2020

NorthStar From Page 17 an ongoing status check between meetings. and open items recently added will be addressed by the support leader immediately, he said. “The {NorthStar] software was definitely the right way to go from the beginning; there’s no question about it. Once that decision was made we need to embrace it. I need to allocate resources to it. I need to look at the timeline. I have adjusted the resources to it. I have adjusted the timeline to it,” Viola said. That means the system will not roll out to the food and beverage operations at the Yacht Club and Beach Club in early 2021 as originally planned. The software system has been deployed at the Clubhouse Grille and is being evaluated for future implementation at other food and beverage venues. “I had to make a change. We’re still going forward with food and beverage, with the point-of-sale system in the clubhouse. We’ll continue to do that,” Viola said. “What we will not be doing is January/February. I’m pulling back or pushing back where we had planned to go into the

Yacht Club.” He said the system is so complicated that “we’re putting the Yacht Club to the side. It’s a gorilla up there. There’s a lot going on.” Viola cited a software glitch the previous Saturday that affected the food and beverage operations. He said the OPA reached out to the software company and they fixed the problem in less than an hour. Still, he said, “what happened ... should not have happened.” He said the problems with the software have not been easily resolved. “Something works and then it doesn’t work. They (staff) see something, a button, a process, and then they don’t see it. Or the entire system shuts down.” That, he said, is why he made the decision to delayimplementation at the Yacht Club. Other departments are having issues with the new software. But, he added the challenges are more significant when the glitches affect “hundreds of people buying food…” Viola said the OPA is targeting implementation of the software at the Beach Club in an April/May timeframe. “We want to go with the Beach Club. We got the buy in, the embracement … from thef ood and beverage team…”

Then, September is the vendor’s new target for the Yacht Club software implementation. Viola was skeptical about even that timeframe. “I have a little different idea than that. But I sincerely hope they are right.” Viola added that he still agrees with the recommendation of the work group that proposed the system several years ago, and supports the integrated software approach. “They also knew back then and we know now that it was not one system fits all. No way. It wasn’t,” he said of the software package needed to serve the various OPA departments. He said the original implementation timeline was “kind of aggressive with everything going on, kind of aggressive, and there’s nothing wrong with that.” However, he added that the OPA’s software system requires extensive customization to meet the needs of the various association departments and that takes more time. He said all departments are evaluating the extent, cost, and timeframe of any enhancements needed by the software company so that they can be prioritized and scheduled.

Viola encouraged the board to view the delayed implementation much as he does. “We found a company that said they could do it and I’m sure at the end of the day they will. With that said, my role is to get the resources, within reason, and extend the timeline, which I’ve done.” He said the OPA’s two in-house IT employees are spending about 75 percent of their worktime engaged in activity directly associated with the NorthStar software implementation. “So that’s normal resources we use for something else on that. But that’s normal. How else you gonna put in a system like this? You have to do that. That was not a surprise to me when they told me those numbers.” Viola seemed to suggest that not all OPA employees are on board with the switch to the NorthStar software package. “The missing ingredient, which I believe we have here with this -- and I’ve said this before -- I need to look around and have a team… that embraces it. When I have that I know I’m gonna succeed or we will succeed with this project down the road.” Some staff

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18 Ocean Pines PROGRESS


OCEAN PINES NorthStar

December 2020 Ocean Pines PROGRESS

From Page 18 has embraced it and “they’re moving the ball forward,” he said. He cautioned the board that the extensive customization, extended timeline, and challenges of implementation and troubleshooting will likely increase the project cost. “It’s a highly customizable system, which any system that was picked would be. It will cost more. Right now it hasn’t,” he said, adding, “the number’s not scary for what they bought this system for. It’s really not.” Director Doug Parks, who led the software work group that recommended the NorthStar purchase, said the OPA is getting a reasonable response to their concerns from the vendor but they could do better. “John is starting to push them to do a little bit better because we’re no longer in a test environment. We’re actually using it at the clubhouse and there are some issues,” he said, citing the lack of system reliability. Parks said he thought Viola was “very prudent” in his decision delaying Yacht Club implementation.

OPA to reduce fleet by eight vehicles Hope is that sale will save $40,000 in operating expenses By TOM STAUSS Publisher hen was the last time the Ocean Pines Association identified eight or nine vehicles that could be deemed surplus or no longer needed and decided to dispose of them? Never, would be the short answer. But through the efforts of Nobie Violante, Public Works operations manager, and Public Works Director Eddie Wells, the OPA has in fact identified eight vehicles -- one in golf operations, one in Aquatics, one in Parks and Recreation and five in Public Works -- that will be or have been disposed of. General Manager John Viola, in a meeting of the Budget and Finance Advisory Committee in late November, said the “fully depreciated” vehicles once sold together will save the OPA roughly $40,000 in operating costs, including insurance, gasoline, licenses and maintenance. At the time, there were nine vehicles identified for disposal, but by the committee’s Dec. 21 meeting, the number of disposable vehicles had dropped to eight. Of those eight, according to Wells, five will need to be replaced. The proposed capital budget for 2021-22 includes the replacement vehicles that are being requested by the Public Works department. Viola said the eight vehicles will be sold at auction, netting $130,000, and the five replacement vehicles will cost $256,000, meaning the OPA will need $126,000 to buy the five new vehicles. To make do without some of the vehicles, Viola said that he has called for the sharing of vehicles that remain in the fleet. “Debbie [Donahue, director of parks and recreation] will share a vehicle with me,” he cited as one example in which department heads are trying to save money. He said that Julie Malinowski, an employee in Marketing and Public Relations, will also share a vehicle used by by Viola and Donahue. The reduction in fleet shouldn’t result in staff using their own vehicles when on the job, Viola said. Savings will be realized in maintenance costs, insurance, tag and registration fees, he said.

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Mossy roofs cited for CPI violations Fearing liability from rooftop mishaps, OPA board tells GM to come up with a ‘better plan’

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Janasek that removing the moss “is a problem” and that someone who knows how to do it properly is needed. “My recommendation to the board would be that before we approve this you (Viola) come back with a better plan and I would suggest we probably should get an outside vendor to bid on doing this work,” he said. He contended that if there is a problem with any of the homes being damaged, it becomes a liability issue for the vendor retained to complete the work and not the OPA. “If they do something improperly then it goes to their insurance company and not ours. If one of their employees falls off the roof, it’s their problem not ours,” he said. Viola presented a list of 11 homes that had been cited for roof maintenance violations, including having debris on the roofs and dirty, moss-covered roofs, two of which were also found in violation of the restrictive covenants for house number violations, to the board for approval to have Public Works do the clean-up work. The cited properties were 18 Harbormist Circle, 4 Moby Dick Drive, q

By ROTA L. KNOTT Contributing writer oncerned about potential liability of having Public Works employees climbing onto the moss-covered roofs of properties found in violation of the Ocean Pines Association’s restrictive covenants to clean them, the Board of Directors told General Manager John Viola to develop a “better plan.” The directors took up the topic of mossy roofs during their Dec. 19 monthly meeting. Director Tom Janasek said removing debris that is an eyesore from someone’s yard because it violates the declaration of restrictions is one thing. “But when you start working on the physical portions of people’s property, roofs, gutters, things that can be easily damaged by walking on them, sliding off of them, putting a hole through them, we get into a whole new liability issue,” he said. He asked if the OPA has the ability and does the Public Works department staff know how to get moss off of a shingle “without screwing up the shingles.” He added that he doesn’t want to incur more cost by having to replace a property owner’s roof because “we went up on there and tried to take the moss off the wrong way and end up damaging their shingles.” Janasek said if the work isn’t done properly to clean the moss of the roofs, the structure could be damaged. Then properties owners could allege liability for the OPA. “They just come and say oh now I’ve got a leak inside my house. You guys were on my roof. You need to replace my roof,” he said, adding, “I just want to make sure that we’re careful of that kind of liability situation.” OPA President Larry Perrone agreed and said he shares Janasek’s concerns about the potential for damage and liability. “I’m not sure this is the kind of work we want our public works people doing,” he said, adding that OPA employees could also be injured while performing the work. “Any time you’re going up on a roof we’re creating a hazard for our own people,” he said. Perrone also concurred with

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OPA votes to rehire Trice, Geary, Myers as OPA auditors By TOM STAUSS Publisher fter a three-year hiatus as the accounting firm that completes an independent audit of Ocean Pines Association year-end financial results, Trice, Geary, Myers, or TGM Group for short, of Salisbury, has been rehired as the OPA auditors, on the recommendation of General Manager John Viola and a working group of staffers. The Board of Directors ratified the rehiring of TGM in a unanimous vote at the Dec. 19 monthly meeting of the board. Viola said the OPA will be benefiting from a modest cost reduction over the fees charged by SC&H, the Sparks, MD., firm that has been providing auditing services for the past three review cycles. Viola said that he has nothing but the highest regard for SC&H and the manner in which the company conducted its annual audits of the OPA finances. But he said there will be a slight advantage for having the experienced TGM Group available from close-by Salisbury. Viola said a three-year term for auditing services is reasonable because it allows the auditing firm to recoup its start-up expenses in conducting an audit for the first time. As the OPA’s long-time auditors predating SC&H, Viola said he didn’t expect that TGM will have any difficulty in conducting the audit for the 2020-21 fiscal year this summer. The firm will also provide tax services to the OPA as part of the contract. There were three companies that bid on the contract. “All three companies were well qualified. All bids when considering other work besides audit basically are in the same ballpark. The firm picked is a local firm with knowledge of our finances and overall association,” Viola said. TGM’s bid was actually midway between two other bids submitted. SC&H was the highest bid at $37,500, followed by TGM at $34,000 and PKS and Company of Ocean City at $32,000.

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22 Ocean Pines PROGRESS

OCEAN PINES

December 2020

Board reinstates racquet sports advisory committee

CPI violations

Fissures in 2016 caused it to malfunction after two-year experiment By TOM STAUSS Publisher he Board of Directors on second reading at its Dec. 19 monthly meeting unanimously approved an amended motion reinstating the Racquet Sports Advisory Committee, a panel that had been officially suspended in December of 2016 because its members coudn’t get along. In offering a motion to form a racquet sports committee and to select members to serve on it, Director Camilla Rogers didn’t mention what caused the board four years ago to suspend the group while retaining it officially on the roster as an advisory committee. Indeed, her rationale for reforming the committee was that racquet sports are “growing at a rapid pace,� which probably refers more to the popular pickleball sport than the other two, tennis and platform tennis. A Racquet Sports Advisory Committee “will ensure that this growth is based on solid planning and logic and completed with input of the racquet facilities director and his peronnel,� she said. Participants of all three racquet sports in Ocean Pines “will have the opportunity to participate in the committee,� she added, “bringing forth their ideas for growth, development and improvement in the facility.� Her initial motion to “form� a racquet sports committee was changed by a friendly amendment that said the committee would be reinstated rather than formed, acknowledgment that it had been in a state of suspension. q

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From Page 21 28 Birdnest Drive, 62 Falconbridge Road, 61 Falconbridge Road, 23 Falconbridge Road, 21 Falconbridge Road, 1 Maid Marion Lane, 9 Chestnut Way, along with 5 White Cap Lane and 42 Bramblewood Drive, which also had the house number violations. Viola said the list of violations had already been reviewed by the OPA’s legal counsel, which recommended forwarding them to the board for action. The attorney said the board could approve by a two-thirds majority vote authorizing staff to enter onto the properties to perform maintenance violation repairs. “You see what the issues are,� Viola told board members while reviewing photos of the subject houses during his presentation of the matter. “A lot of it was roof maintenance in the sense defined at least by me in all the pictures that I saw was leaves, branches, that are on the roofs.� Viola said he was informed by the OPA’s attorney that this the type of maintenance work the association can do in-house to correct violations. “So I’m just looking for the board to give approval so that we can public works to do this work which our attorneys have already looked it and said it’s something we certainly can

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do. We just need approval,â€? he said. In response to the directors’ concerns about liability issues, however, Viola said he would look into alternative methods of resolving the violations. “We will certainly do that. That’s fine with me,â€? he said. Director Doug Parks agreed with Perrone and Janasek, but also wasn’t sure two of the properties should even be on this list of violations. “I conceptually don’t have an issue with it,â€? but added that he couldn’t see where there was a problem, based on the photos presented by Viola, at either 18 Harbormist or 62 Falconbridge Road. At 18 Harbormist, Parks said that “based on the picture I’m not really sure I see something that’s so egregious and so beyond what the DRs would allow that we need take action on it. And the same could be said at least in my opinion for 62 Falconbridge. I really don’t see based on this picture a real problem per se on the roof. The other ones yes, I would agree that there’s some intervention that’s required. But these two properties, unless I’m missing something, I’d just like someone else’s thoughts on is this bad as compared to the other ones.â€? Parks agreed that the other nine properties are in violation of the restrictive covenants and some action should be taken to bring them into compliance. “I think for the right reasons we should probably take another look at this. Would it be appropriate for us to send a notice to these individuals saying that your property was brought up before the board based on roof maintenance‌â€? he asked. He said the OPA should at least inform the owners that their property has been identified as being in violation. Viola reminded the board that the ARC has a process for notifying property owners of violations, including several letters, and giving them time to correct the issues on their own before sending the matters for legal review and resolution. Perrone questioned the cost of doing the roof maintenance to remove debris and moss. He asked for verification that any associated cost would be added onto the property assessments for those individual homeowners. “Come back to us next month with a better plan,â€? he told the general manager. “We definitely will. I got it,â€? Viola responded.


OCEAN PINES

December 2020 Ocean Pines PROGRESS

From Page 22

The committee was originally formed in 2014 as a kind of experiment to see whether advocates from the three individual racquet sports could be combined and work together harmoniously. Two years later, its board liaison, then OPA President Tom Herrick, concluded that the committee had not worked effectively and should be abolished. Later, the board agreed to suspend the panel rather than abolish it, a less draconian approach that allowed Rogers’ amended motion for reinstatement to unfold four years later with no controversy. As an alternative to a functioning committee, in its place Herrick said advice on each of the three racquet sports could be forwarded to the board by unofficial committees representing each sport. None of these groups would be official committees of the OPA with board liaisons, Herrick made clear. There is little indication that members of the three sports communicated much with the board, with most of the interaction among the membership occurring through Tim McMullen, director of the Manklin Meadows racquet facility, and his staff. Even before the board took action to suspend the committee back in 2016, Herrick had taken action to suspend it pending board action. Herrick said the committee’s chairman had been abused by members of the committee and no volunteer to an advisory committee should be subjected to that kind of behavior. He also said it was unfair to each of the groups to ask them to compromise their owns interests in a

committee rather than advocate for their individual interests. He said the need to compromise or to come up with a plan that could pass muster in a group led to what he called an overly complicated and costly plan to improve the Manklin Meadows recreational complex. Herrick said that a former general managerhad informed the board that the master plan --- it could have the OPA up to $750,000 if fully built out as conceived -- was supported by the full committee. Herrick called that assertion propaganda. He said individual members of the committee in fact did not support the master plan and should not have been asked to sign off on it. He concluded that the committee as conceived was a well-intentioned idea that simply had not worked. The only director to vigorously defend the committee was then Director Cheryl Jacobs, who did so during the Dec. 5, 2016, work session and the Dec. 9 regular meeting. She argued that committee members representing the three different racquet sports could still offer their individual recommendations to the board while the committee functioned as a group. Herrick’s argument won the day, with directors Dave Stevens and Slobodan Trendic both saying they thought the committee was a well-intentioned experiment that had not worked. Herrick said each group had always been able to communicate with the board effectively before the committee was established in 2014 and could so again. The motion to deactivate the committee passed 6-1, with Jacobs voting no.

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Directors review working group activity Perrone hopes to make progress reports regular features of board meetings By ROTA L. KNOTT Contributing Writer everal specially appointed Ocean Pines Association work groups are wrapping up their reviews of issues like regulating short term rentals, succession planning, signage, and bylaws revisions, and may have recommendations for consideration by the full Board of Directors in time for the New Year. At the request of OPA President Larry Perrone, directors involved in the various work groups provided updates on the progress of the work groups during a Dec. 19 Board meeting. Perrone hopes to make the such updates on work in progress a regular part of the Board meetings. He said he would like to rotate the various advisory groups and standing committees and have some of them provide updates to the board each month. He said that will help the rest of the board as well

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24 Ocean Pines PROGRESS

December 2020

Working groups From Page 23

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includes language regulating shortterm rentals that has been distributed to the Board and chairman of the Architectural Review Committee for review. Daly said the next step will be for the ARC to review the draft give its blessing and then send for the OPA’s legal counsel to make a final review of the proposal. Then the full ARC will vote on the document for sending it to the Board to adopt as part of the ARC guidelines. “I am reasonably optimistic that will be in the January Board meeting. If not, it should be without fail in the February Board meeting,” Daly said regarding timing for the Board’s discussion of the short-term rental guidelines. Director Collette Horn updated the Board on three separate work groups, succession planning, human resources policy, and electronic signage. Horn said the succession planning advisory group, which is focused on the general manager transition and is comprised of Horn, Daly, and Director Camilla Rogers,

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as members of the OPA have a better understanding of the work that is being done by the groups and committees. Director Frank Daly presented an update on the work of a short-term rental work group that was formed to investigate the potential for regulation of short-term rental of properties located with Ocean Pines, such as through Airbnb or Vrbo. Daly said the work group has met with the Ocean Pines police chief several times, as well as the fire chief, the fire marshal, and the OPA’s legal counsel, and the county zoning officials to discuss the issue and how the OPA may regulate this type of use. Based on those conversations, the work group “has pursued a course of revising or adding to our architectural guidelines a clause or whatever would be necessary to regulate short-term rentals under the ARC guidelines,” Daly said. He added that the work group has a “semi-final document” that

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has been working with a consultant to develop the tools necessary to determine the qualifications required for that position. The group is also developing a process for vetting employees who self-nominate for consideration. A 360 evaluation process has been developed and sent out to employees who will be completing the evaluations for the one candidate, Colby Phillips, who has indicated interest. She is the OPA’s director of amenities and logistical operations. Horn said that process should wrap up in January and the work group should have some further information for the board’s January meeting. The human resource policy work group has been reviewing and developing new ones polices to fill gaps in the OPA’s human resources rules, particularly those related to sick time, severance packages, and vacation time use. During the Dec. 19 meeting, Horn presented the work group’s recommendations for approval. The Board voted unanimously to adopt the recommended severance package and vacation use policies. But Horn pulled discussion of the sick time policy at the last minute saying it needs more work by the group. Some OPA employees expressed opposition to the proposed changes. The third work group of which Horn is a member is working on a text amendment to the Worcester County zoning code that will allow the OPA to have electronic signs and other signs within the community. “Currently signage within the community is not permitted by county ordinance. The signs that we do have, of which there are 13, were grandfathered in. The board approved looking into the possibility of replacing some of those signs with electronic signs that will support rapid updates, particularly for public safety messages,” Horn said. She said the text amendment to the zoning code has been written and was reviewed and endorsed by the Worcester County Planning Commission last month. The planning commission agreed to send it on to the Worcester County Commissioners for consideration and introduction at a legislative session. Horn said based on the draft text amendment, of the 13 signs the OPA currently has, three will remain. The legislation will also allow the

OPA the option of three additional electronic signs that will be placed at key points in the community, she said. Those electronic signs would most likely be place at the North and South Gate and Cathell Roads entrances into Ocean Pines for maximum visibility. Director Doug Parks provided a short update on the work of the group organized to tackle the Bainbridge Park drainage project. He said the OPA is still waiting for word on the final distribution of grant funds that will pay for the planned drainage improvements. He said the group is continuing to work with Worcester County, the Maryland Coastal Bays Program, and Vista Engineering to create momentum on the project. Parks also added a few comments about the NorthStar software installation project, which Viola discussed in detail during the same meeting. He said the implementation is proceeding but there has been some challenges and inconsistencies that the OPA is working with the vendor to correct. “We need to do some follow up with the vendor, extensive testing and the use of the system in the F and B (food and beverage) operation at the clubhouse is under way. There have been some issues that have been addressed and there’s some more issues that need to be addressed with regard to making that fully functional and robust enough to meet the operational requirements at the Beach Club and the Yacht Club in the future. So we continue to stay on top of that,” he said. Finally, Parks said a work group organized to review and update the OPA’s bylaws, comprised of Parks, Rogers, Jim Trummel and Ginny Cropper-Rines, held its first meeting in December. He said the group’s initial work simply involves determining the best approach to reviewing the bylaws. Parks said the work group hopes to have recommended updates to the bylaws ready for review by the OPA membership next year. “We have a soft target to look the annual meeting…” he said. Under a change in the bylaws in the early 2000s, all amendments to that document have to be approved by the OPA membership in a community-wide referendum. That provision has been applied over the years, always successfully.


OPA FINANCES

December 2020 Ocean Pines PROGRESS 25 The per property owner share of that $450,000 according to a simple calculation is about $53. Viola’s draft budget also increases the current $19 set-aside in the assessment base for common area bulkhead maintenance from to $40, accounting for a $21 impact on the assessment. He said that was based on rising in the $30 to $50 range costs of bulkhead replacement. But he said if a decision is made to cut range of $30 to $50. Increased expenses in various back on the linear feet of bulkheadbudget categories result in a $121 ing to be replaced next year, that impact on the assesment, includ- $21 impact on the assessment could ing drainage (+$44), salary, bene- be rolled back to zero, he said. Another possible way to lessen fits and liability coverage (+$30), Aquatics operational losses (+$17), the impact on the assessment would lower Beach Club parking revenues be to defer spending on road paving (+$15), common area bulkheads and allocate that money -- $110,000 (+$21), and fire/emergency medical is included in roads spending in the draft capital budget -- to drainage, services (+$5). Two other categories result in Viola suggested. That would have a savings and reduce the impact on $13 positive impact on the assessment. But up to $350,000 in anticiassessments, according to Viola. These are depreciation (-$11) and pated casino money could be diverta reduction in full time equivalent ed from roads to drainage, Viola said [a $44 impact on the assessment]. positions (-$20). Those three items have a comThe general manager suggested several ways to trim that $121 net bined savings of $87 to $118 on the assessment, depending on assumpimpact on the assessment. ΊΙΙΛΘΟ Anticipating a $650,000 operat- tions. Prince Georges Cnty Md ΍χϚϋͧ йрͿ In remarks delivered during the ing surplus this year, and then subΎϞϖ ϊχϚϋ tracting out about $200,000 in an in98.500 Price: (00.00) Ί΍и herited operating fund deficit from prior years, Viola projects the Ocean Coupon: 3.25 (00/00/00) Pines Association will end the year When should you07/15/2036 start receiving Social Security? Date: (00/00/00) with an operating fund surplus of Maturity about $450,000, which could be used Date: (00/00/00 or your N/A) Think carefully about 07/15/2028 when to start receiving benefits. to offset a portion of an assessment Callable increase. Call Price: 100 (000)

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Ocean Pines PROGRESS December 2020

FORECAST/BUDGET COMPARISON

Source: Preliminary draft Ocean Pines Association budget. Note: Total capital from reserves and total capital funding do not include bulkheading expenditures.

OPA FINANCES Preliminary budget From Page 25 Dec. 19 monthly board meeting, Viola framed the discussion over next year’s budget by projecting where he and Finance Director Steve Phillips believe the OPA will finish this fiscal year financially. Citing the projected operating surplus of $650,000, Viola said that federal Paycheck Protection Program grants of $1.15 million and $275,000, as well as $125,000 from the federal Affordable Care Act, helped offset what would have been a $900,000 loss for the year. Those losses, he said, were largely because of lost revenue caused by the COVID-19 pandemic. “It wasn’t easy, without a playbook, to go through this,” he said. Breaking down the department forecast for fiscal 2020-2021, Viola said Administration ($1.037 million), Public Works ($81,000), Marinas ($63,000) and other ($85,000) projected to finish favorable to budget, while Aquatics (-$270,000), Beach Parking (-$202,000) and General Maintenance (-$144,000) all projected to finish below budget estimates. The large favorability in Administration was because of the Paycheck Protection Program, Viola said, while the losses in General Maintenance were because of money reallocated for a major drainage project. “We have a top priority in drainage, especially the Bainbridge project that’s been approved by the Board,” he said. “It’s the number-one initiative and we all support it.” Viola said the fiscal 2021-2022 budget was prepared using a “bottom-up” approach, with each department having considerable input. He said the Association sent preliminary proposed budget binders to Budget and Finance Committee and Board members on Dec. 18 this year. That’s one day earlier than last year, which was the earliest date that Ocean Pines had sent out budget binders for review. The committee will next review the budget draft during a series of public meetings, starting in January. Following that, the Board of Directors will review the document, also during public meetings. “Everything will be spelled out – everything is spelled out,” Viola said. “But there are challenges. There’s variables this year [because of the pandemic].” q

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OPA FINANCES Preliminary budget From Page 26 Viola said key items addressed in the preliminary proposed budget include drainage, depreciation, bulkheads, fire and EMS funding, Aquatics and Beach Parking losses incurred during the current fiscal year, and salaries, medical benefits and liability insurance for Ocean Pines workers. Drainage funding was a challenge, Viola said. Because of a healthy drainage reserve a year ago, the Association did not budget any additional money for drainage. However, as Ocean Pines spent that reserve, any funds budgeted during the next period could affect assessments. “We had a drainage reserve, we had money put away, and we had that money budgeted [for spending projects]. It was around $500,000$600,000,” Viola said. This year, he said Ocean Pines received $549,000 in grant funding for the Bainbridge Pond project and added $300,000 in reserve funding to that total. On top of that, there were plenty of other drainage projects to fund. “This current year, I needed to still fund the [drainage] pipes that we said we’re going to do, separate from Bainbridge, and that’s where you saw that reallocation of several hundred thousand dollars,” Viola said. “Now, when we look at [fiscal year] 21-22, I don’t have any money in drainage, and drainage is one of our top priorities.” He said the preliminary proposed budget had about $350,000 to $380,000 in new drainage funding. “That alone would be an increase to last year’s budget [assessment] of $44,” Viola said. “I’m just trying to show you all the challenges, all the items and the initiatives we have this year that wasn’t there last year.” Medical benefit costs were also estimated to rise 30 percent this year, which could add another $30 assessment increase. Rising salaries could add $13 and liability insurance could add $7, Viola said. “You just look at salaries, medical benefits [and] liability insurance – that’s $50 that was not in last year’s budget,” he said, adding that mandatory minimum wage increases contributed to rising salary costs. Viola said the $650,000 projected favorability from the current year could help offset some of those increases. “We certainly can address this,

December 2020 Ocean Pines PROGRESS

27

Viola releases preliminary $13.368 million operations budget Budget and Finance Advisory Committee to begin departmental reviews Jan. 6 By TOM STAUSS Publisher he preliminary draft Ocean Pines Association budget for 2021-22 calls for revenues and expenditures balanced in the amount of $13.368 million and another $2.52 million in capital expendures funded out of reserves. This compares to an operations budget of $13.003 million approved a year ago last February for the current fiscal year, and a projected year-end forecast calling for a $651,000 surplus on revenues of $12.936 million and expenditures of $12.285 million. The $2.52 million in projected capital spending is composed of $1,154,470 in replacement, roads, drainage and new capital reserve funding, and another $1,368,221 in bulkhead funding out of the bulkheads and waterways reserve. Some of that bulkhead spending covers bulkeading on residential properties while the rest is common area bulkheading on OPA-owned canal-front property. In the forecast/budget comparison schedule that appears as the first page of the preliminary draft budget posted on the OPA Website, the budget is projected to be in balance at $14.522 million, including capital spending from reserves. But that number omits projected bulkheading spending. If the $1,368,221 in bulkhead spending had been included, total expenditures for the year would be $15.891 million. Year-over-year, the projected increase in budgeted spending for operations is 2.8 percent. The draft budget published on the OPA Web site includes a schedule that would establish a $1,107 base lot assessment for next year, up $121 from the current $986. But General Manager John Viola says that a theoretical $121 assessment increase could be trimmed in a “prudent” fashion to somewhere in the $30 to $50 range, or even to zero, if that’s what the Board of Directors decides.

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and this board can get at where they decide to be,” Viola said. “And Steve [Phillips] and myself and my department heads ... will break it all out, as we all make this decision on what this assessment is going to be this year – whether it is no assessment increase, or there is an assessment increase.” He added a “COVID adjustment” to cover losses in Aquatics, Beach Parking, the Yacht Club, Golf, Beach Club, and Recreation and Parks was not part of the preliminary proposed budget.

The budget process will provide an opportunity for the board to make a number of decisions that could result in an assessment that’s in Viola’s “prudent” range. There are a number of proposed amenity membership fee increases in the draft budget, some reductions, and some that are proposed for no change [see separate story elsewhere in this edition of the Progress for details]. As part of the annual budget process in Ocean Pines, the Budget and Finance Committee will review the preliminary proposed budget during a series of public meetings, scheduled Jan. 6-8. The meetings will be held virtually using Microsoft Teams, but members of the committee are planning to meet in the Assateague Room in the Community Center under covid-restricted conditions limiting the number of people in the room to ten or fewer. Committee members will be using laptop computers during the meetings. Those who want to join the sessions virtually can click on the invitation links contained in a press release posted on the OPA Web site under the News section. On Jan. 6, starting at 9 a.m., the committee will meet with department heads and discuss preliminary proposed budgets for General Administration; the General Manager’s Office and Human Resources; Finance, Membership and IT; Public Relations and Marketing; Golf; Food and Beverage; and the Fire Department. On Jan. 7, starting at 9 a.m., the committee will meet with department heads and discuss preliminary proposed budgets for General Maintenance, Public Works and CPI; Recreation and Parks and Marinas; Police; bulkheads and road reserves; and replacement and new capital reserves. On Jan. 8, starting at 9 a.m., the committee will meet with department heads and discuss preliminary proposed budgets for Aquatics, Beach Parking and Racquet Sports; and drainage reserves and the Bainbridge Pond project.

That could have added another $77 to assessments. “I didn’t include it, but it’s certainly a challenge – it’s certainly something that needs to be discussed over the next seven or eight weeks,” Viola said, clearly indicating he would prefer not to include an explicit covid adjustment in the budget. Certain amenities, particularly beach parking and aquatics, are already budgeting for a summer season in which memberships and revenues generally do not return to

pre-covid levels. In effect, these departments already include a covid adjustment. “As compared to other years, there’s a lot of challenges” to the budget process this year, Viola continued. “We have to look at the variables. We have to have a feeling [as to] what kind of stomach we have for [an] assessment [increase.]. “I’ll do my part to [and] my team will do their part. Steve [Phillips] certainly is doing his part ... to break everything out for everybody [and] to vet everything,” Viola said.


28

OPA FINANCES

Ocean Pines PROGRESS December 2020

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OPA FINANCES

December 2020 Ocean Pines PROGRESS

Some amenity membership rates move higher in draft budget By TOM STAUSS Publisher olf membership rates are higher, swimming membership rates are the same, and racquet sport membership rates are both higher and lower in the prelimiary draft budget unveiled by General Manager John Viola earlier this month. Beach parking and boat slip rental rates are also proposed for increases. The Board of Directors is scheduled to finalize rates in February. Golf membership rates would increase from $2,300 to $2,400 for families and from $1,325 to $1,500 for individuals.

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Afternoon golf memberships would increase from $1,365 to $1,650 for families and from $875 to $950 for individuals. Members-only unlimited use cart fees would increase from $1,900 to $2,100 for families and from $1,300 to $1,400 for individuals. Daily rates for non-member Ocean Pines residents, owners and guest play would increase $5 over current rates in the April to October peak season. Current rates are $49 before 12 p.m., $44 from 12-3 p.m., and $34 twilight, including carts. Non-peak season rates would remain at $30. Rates for public play would in-

crease $5 or $10 depending on time of day and season. Beach parking passes for individuals and families would increase from the current $180 to $200.There is no proposed change in the $125 beach parking fee for those with other amenity memberships. Tennis membership fees would drop, from the current $435 to $380 for families and from $270 to $220 for individuals. Platform tennis and pickleball rates would both increase, from $260 to $280 for families and $155 to $170 for individuals. Daily rates for resident owners in all three racquet sports have been

Capital spending of $2.488 million proposed, including bulkheads By TOM STAUSS Publisher ot including bulkhead spending, the draft budget unveiled by General Manager John Viola just before Christmas proposes $1.12 million in capital spending, a

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relatively modest number compared to recent years, when there were several big ticket projects under way. The draft budget, subject to review and revision by the Budget and Finance Advisory Committee and Board of Directors, calls for

PROPOSED CAPITAL SUMMARY

Source: Preliminary draft Ocean Pines Association budget

29

reduced to $6 for residents and owners and $8 for non-residents who play tennis or pickleball and $10 for platform tennis. Swimming membership rates for families and inviduals would not change. Summer rates would remain at $325 for families and $195 for individuals. Winter rates would stay at $460 for families and $300 for individuals. Yearly rates would remain at $600 for families and $385 for individuals. Daily user and coupon debit card fees would also remain the same. Boat slip rentals at the Yacht Club would increase from $1,872 to $1,947 for boats 15 to 25 feet, from $2,548 to $2,649 for boats 26 to 39 feet, and $3,594 to $3,738 for boats 40 to 44 feet. Swim and Racquet Club slip rentals would increase from $1,352 to $1,406.

$461,000 in replacement reserve spending, $227,000 in new capital spending, $320,000 in spending from the drainage reserve and $110,000 in roads reserve spending. Another $1.368 million in spending from the bulkhead and waterways reserve is proposed, bringing total spending in the proposed capital budget next year to $2.488 million. Proposed new capital spending includes $68,000 in new pickleball courts, $67,000 for a new junior tennis court, $22,000 in new fencing for these courts, and $70,000 in expansion of the Yacht Club marina with transient use slips. Replacement reserve spending for Aquatics as proposed includes $16,000 for a new roof at the Swim and Racquet Club, $20,000 in new pool furniture, $8,500 for new fiberglass doors at the Beach Club, $3,700 for new HVAC equipment at the Sports Core pool bathrooms, $3,620 for a new chairlift, and $7,000 for new handicap stairs at the Swim and Racquet Club, among other items. Proposed golf capital expenditures include $$35,000 for a new triplex green mower, $6,500 for a ball dispensing machine, $3,800 for a ball elevator for the ball dispenser, and $3,300 for a ball washer machine. The Public Works Department is scheduled for five new vehicles ranging in cost from a $32,200 Ford Bronco to $56,000 for a Ford van, and a snow plow package costing $14,000. The department’s capital budget also includes $36,000 for a Ventrac boom mower. The police department is scheduled for a replacement vehicle costing $38,000. The capital budget includes $320,000 in drainage-related spending, including $300,000 in replacement pipes, which Viola has said could be reduced in cost if some new technology to fortify existing pipes is found to be feasible.


30 Ocean Pines PROGRESS

OPA FINANCES

December 2020

Viola estimates operating surplus for this year at $650,000 Without covid-related government largess, OPA would be facing a $900,000 deficit, general manager tells Budget and Finance Advisory Commtitee By TOM STAUSS Publisher rojections of Ocean Pines Association operating results six months from the end of the fiscal year on April 30 are always a risky business, sometimes wildly inaccurate, but General Manager John Viola and Director of Finance Steve Phillips came up with a number at a meeting of the Budget and Finance Advisory Committee in late November. Then, a couple of weeks later, they revised the projected surplus.

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Subject to further revision as the end of the fiscal year approaches, the latest projection is a $650,000 surplus, roughly half of the operating surplus recorded at the end of October, when it stood at more than $1.2 million. The latest estimate is $50,000 more than it had been at the committee’s November meeting, Viola and Phillips were realistic about financial results expected for the remainder of the fiscal year, dominated by the colder months of the year when revenues sharply

fall off. Amenities traditionally lose money during these months, and revenues from assessments have already been booked for the year. Viola told the committee in Novembr that without $1.153 million in Paycheck Protection Program revenue, another $275,000 in PPP funding received by the Matt Ortt Companies benefiting OPA food and beverage operations, and another $125,000 in federal CARES Act funding, together totalling $1.5 million, the OPA’s financial results for this year would be a $1 million

Operating surpluses keep on rolling Through November, OPA is $1.355 million ahead of budget By TOM STAUSS Publisher ougher financial times may be facing the Ocean Pines Association for the remaining five months of the fiscal year, but through November everything’s been coming up roses financially. Helped along by a $88,268 positive variance to budget in November, the OPA recorded a $1.355 million operating surplus through the end of

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last month. General Manager John Viola told the Board of Directors at the Dec. 19 meeting of the Board of Directors that he expects monthly operating deficits for the remainder of the fiscal year, with a year’s end surplus projected at $650,000. He said that could leave the OPA’s operating fund surplus at year’s end to somewhere in the vicinity of $450,000, factoring an in-

Net Operating by Department, November 2020

Source: Ocean Pines Association, Finance Department

herited fund deficit of $186,000 at the beginning of the year. November’s positive variance to budget was produced by revenues over budget by $27,577 and expenses under budget by $60,688, according to a financial summary released by Finance Director Steve Phillips. The Nov. 30 year-to-date positive operating fund variance of $1.355 million was produced by revenues over budget by $274,459 and expenses under budget by $1,080,665. Federal payroll protection program funds and CARES Act contributions have been major factors in the OPA’s positive financial performance so far this year, without which Viola has said there would likely be a $900,000 negative variance to budget at year’s end. Most OPA amenity operations lost money in November, with pickleball the only excpetion with a $1,865 surplus. But most amenity operations performed better than budget, with tennis, platform tennis and the Yacht Club the exceptions to the rule. The Yacht Club lost

operating loss. He amended that earlier this month to a $900,000 loss without the PPP and other one-off funding sources. Technically, the PPP funding came in the form of a loan, with the expectation that it would be forgiven if the proceeds were used to protect the jobs of OPA employees, which seems to have occurred. Viola said that while it’s possible that the loan won’t be forgiven, in which case OPA financial results would need to be adjusted accordingly, he also added that there’s every indication that initial expectations will be met. Viola said that the $650,000 projected surplus was the result of “best estimates” by Phillips and department heads for the remainder of the fiscal year. But he advised that covid-related developments could adversely affect results. $89,964 for the month, under budget by $87,317. For the year so far, however, the Yacht Club has generated a $270,073 surplus, behind budget by $7,727. Golf operations and the Clubhouse Grille did well in November, in both cases performing better than budget. For the year through November, golf operations recorded a $152,793 operating surplus, ahead of budget by $11,799. The Clubhouse Grille through November is in the black by $54,829, ahead of budget by $42,338. Aquatics, struggling financially much of this year because of the covid pandemic, recovered in November, ahead of budget for November by $16,752 despite an operating loss of $22,643. For the year, Aquatics is in deficit by $139,613 and is $200,820 behind budget. Recreation and Parks similarly performed well in November relative to budget. Its positive variance was $19,498, ahead of budget for the year by $21,065. Racquet sports through November are mixed, with pickleball in the black and ahead of budget. Both tennis and platform have modest surpluses for the year and negative variances. Status of reserves: The OPA’s reserve balance through Nov. 30 was $6.73 million, with the replacement reserve balance at $4.2 million, bulkhead and waterways at $1.83 million, roads at $215,144, drainage at $433,313, and new capital at 87,412.


WORCESTER COUNTY

December 2020 Ocean Pines PROGRESS

31

Anna Foultz legacy lives on in successor charity ‘Keeping Anna’s Dream Alive’ continues support for military By SUSAN CANFORA Contributing Writer nna Foultz was one of a kind, stubbornly, refreshingly original and absolutely driven to lend a hand. Or two. And nothing deterred her. If fellow members of a club voted at a meeting, but the results went against her wishes, she might say, “Well, voting doesn’t mean anything” and continue with her plans. But it was her tenacity, her irrepressible personality, that drove her, and those she recruited to help, to assist individuals and organizations she cared about. In 2007 she founded Star Charities with her husband, Carl, who died in 2010. Star Charities helped more than a dozen local and national organizations including Holiday Gifts for Our Soldiers, formed to collect and send gifts to troops overseas. After she died, Star Charities was disbanded, but a dedicated group of Ocean Pines residents have continued to collect for those soldiers, through Keeping Anna’s Dream Alive. The first drive in 2019, right after Foultz died, was so successful the bounty set a new record. Everything was sent to Operation We Care in Salisbury, founded by Jeff Merritt, and shipped overseas. Merritt started Operation We Care in 2007 with his wife, Diana, and oversees several charitable events. “The first year we did it without Anna was probably the most we ever collected, since we had other organizations helping us. This year we figured it would be less because of the situation we had with the coronavirus and the pandemic, but we had five SUVs full of stuff we collected. This is a very generous community we live in,” volunteer Barb Peletier said. Foultz traditionally positioned bins in locations around Ocean Pines, from the library to the Community Center, to collect goods weeks in advance of shipping to Iraq and Afghanistan, but volunteers decided to ask that everything be dropped off at the recreation center instead, on Wednesdays in October. “Every year, Anna Foultz couldn’t wait to start collecting for our military. This year, AARP and Kiwanis have stepped up to carry on her tradition. It’s usually such a successful thing and it’s a good program, and it was Anna’s favorite. So, we thought this year that we would do it in memory of her,” Peletier said for the Ocean Pines Associa-

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From left, Sharon Hilty, Dan Peletier, Larry Walton and Barb Peletier pause while collecting items for soldiers away from home for the holidays.

sends them to deployed troops. The packages are from generous donors from throughout the country, but usually at least one person in the unit has a connection to Delmarva, according to www.operationwecare.org. Foultz, known as the oldest Girl Scout in the United States, after volunteering for the organization for decades, was involved in an extraordinary number of organizations. They included the Alzheimer’s Foundation, Aviation Club, Sons of Italy, Boat Club, Juliettes, Kiwanis Club, Boat Club, Card Sharks, National Association of Retired Federal Workers, American Legion and VFW auxiliaries, The Republican Party, Elks Lodge and Ocean Pines and Ocean City Maryland Chambers of Commerce. When she died on Sept. 22, 2019, her family wrote in her obituary that she welcomed everyone. “She took the time to visit hospitals and nursing homes and posted her phone number and address everywhere with an open invitation to all,” her family wrote in her obituary. “When she was invited to an event or activity, she would arrive with a smile and her trusty old-fashioned camera and lend a helping hand. Anna would write a nice story about the event, post happy pictures and special occasion notices in the newspaper, sell tickets to one of her charitable events, and convince everyone to step up and serve. She participated in the many meetings, card games, parades, fundraisers, dinners, galas, outings, and her countless organizations, memberships, and life-time awards are too many to name. “When Anna Foultz comes to mind, remember q

tion Website. “I think she is there pushing us to do it. She probably put a little thought in our minds to do it,” Peletier said, adding she works with her husband, Sue Walter and Larry Walton of the local AARP. This year, they received a call from Sharon Hilty of Ocean City, whose son, Sgt. 1st Class John-David Hilty, was killed during military service this year. “We were half way through and she called and said in memory of her son, who died in Iraq, ‘I’m coming and going to give you everything I collected in the last two weeks.’ Her son was killed in April and she joined us and it was very successful,” Peletier said. Donated were books, pens, canned spaghetti, razors, flavored powders to add to water, toothpaste, bubble gum, candy, packets of hot chocolate, trail mix, beef jerky, Ramen noodle packages, sunflower seeds, lip ointment, facial tissue and candy that doesn’t melt. There wasn’t anything they don’t get enough of, Peletier said. “Oh, gosh, no. They give so much of everything. We put out a list before we start. We used to send prepaid calling cards so they could make telephone calls back home, but now they say there’s a problem using them,” Peletier said. Anyone interested in helping can send checks to Operation We Care. See www.operationwecare.org. Keeping the Dream Alive organizers don’t usually hear from soldiers who accept packages, but they receive thank you notes from Merritt of Operation We Care, which impressively readies more than 2,000 care packages every year and


32 Ocean Pines PROGRESS

LIFESTYLES

December 2020

Yacht Club offering New Year’s Eve specials

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50 percent off on New Year’s Day, indoor-dining only

fter sending almost 1,300 meals to people in Ocean Pines on Thanksgiving, the Yacht Club is upping the ante with a pair of family meal specials planned for New Year’s Eve. “We had to think about what to do for an encore after such a wildly successful Thanksgiving,” Ralph DeAngelus, cofounder of the Matt Ortt Companies that runs the Yacht Club, said. “Our staff came up with two tiers of special family meals, each with its own menu, that we think people in Ocean Pines are going to love.” Each special family meal feeds a family of four and will be available for delivery or carryout from 4-8 p.m. on Dec. 31. The Yacht Club will not be open for dining on New Year’s Eve. Choices are: Option 1: $60, plus tax, shrimp scampi over linguine, choice of Caesar or house salad, garlic bread, one whole strawberry cheesecake. Option 2: $100, plus tax, two orders of 12-ounce prime rib, cooked to medium, two orders of rockfish imperial, tri-colored carrots, fingerling potatoes, choice of Caesar or house salad, bread, one whole strawberry cheesecake, one bottle of cham-

pagne, party favors. Orders can be placed immediately, until Dec. 27 or until sold out. To order, call 410-641-7501. “We want to thank the people of Ocean Pines for continuing to support us through this difficult time,” DeAngelus said. “We were completely overwhelmed by the response on Thanksgiving, and we hope to keep finding ways to make the holidays a normal and festive experience for everyone in the community.” The Yacht Club will open on New Year’s Day, starting at 11 a.m., with 50 percent off all food and drinks, good for in-person dining only. The restaurant will be closed for the rest of January and will reopen on Friday, Feb. 5. The Yacht Club, over a five-hour period on Thanksgiving Day, sent 1,280 meals to local people through delivery and carryout. That includes more than 1,500 pounds of turkey, 1,500 pounds of stuffing, 2,000 pounds of mashed potatoes and 50 gallons of gravy, according to DeAngelus. “It took two solid days of preparation and pre-cooking turkeys,” he said. “We made almost 1,300 salads – think about how many cucumbers it takes to make 1,300 salads!”

Foultz legacy

To order a book, see www.twostepsforwardmemoir.com. Peletier knew Foultz through her membership in the Kiwanis Club. Foultz helped with Kiwanis pancake breakfasts and raffles, then Peletier joined Star Charities. “Anna was a feisty little lady. She somehow managed to convince you, you wanted to do something whether you wanted to do it or not. Her son was vice president of Star Charities to handle the paper work, but he wasn’t here much of the time so she needed a vice president who was here. She just assigned it,” Peletier said with a laugh. “I enjoy carrying on and helping to collect items for the troops. I like to make sure no one is forgotten, the ones that are out of sight and out of mind that we don’t see,” Peletier said. “I enjoy helping and I enjoy doing something for the military. It’s just good.”

From Page 31 only the good times, laughter, happy smiles, and the love and time she gave you from her huge heart. She would want us all to trust in the Lord, follow her example, and take ‘two steps forward’ to love and serve one another,” family members wrote. “Two Steps Forward” is a reference to the book Foultz co-wrote with her daughter, Shirley Isbell. Published by Cranberry Marketing Associates, it was released in 2017. Foultz, the mother of four, grandmother of 17 and great-grandmother of seven, was 91 at the time. Some of the proceeds from the book benefited Star Charities. A native of Camden, N.J., Foultz was born to Caroline and Joseph Lucarello and is buried at Arlington National Cemetery next to her husband.

Reservations for the Thanksgiving meals were announced on Oct. 5 and sold out by Nov. 16. DeAngelus said the day easily set the record for to-go meals. “We also actually beat last year, when we had indoor buffet dining. How about that?” he said. “We’ve had days in the summer when we did over 1,300 meals – but that’s over a 15-hour period. This was just five hours. We’ve never done that kind of volume in five hours – never.” By the end of the day, DeAngelus said, the Ortt Companies staff was feeling exhausted, but also extremely proud of their effort. “We were tired, but completely satisfied. The staff knew they had done something really good, and there was a massive amount of pride in the fact that they were able to get so many families together in their homes during this difficult time,” he said. DeAngelus said the positive community response was immediate, from dozens of phone calls, to one local woman who came to the Yacht Club, with tears in her eyes, to thank the staff in person. “We got a lot of phone calls from

people who were super happy with what we did,” he said. “But when that one nice lady came here just to tell us how much she appreciated the meal that her family had together – that it was big, it was tasty, it was inexpensive and it was delivered right to her door – the second she got teary-eyed I thought, ‘OK, we really did do something good here.’” Throughout the holiday weekend, community support for the Yacht Club continued to pour in over social media. “It just solidified the pride we took in what we did – it confirmed it,” DeAngelus said. Going forward, DeAngelus said the Yacht Club would expand the family meal offerings that started during the early days of the COVID-19 pandemic. An announcement, he said, would be made public shortly. “All of this just confirms the fact that we need to start doing family meals sooner, rather than later,” he said. “We were doing them just on Sundays, but now I think we’re going to have to broaden the availability,” he added. The Ocean Pines Yacht Club is currently running under winter hours, open at 11 a.m. on Thursday through Sunday, with lunch and dinner options for dining and carryout. For more information or to order online, visit www.opyachtclub.com.

Farmers and Artisans Market to mark tenth anniversary

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ext year marks a major milestone for the Ocean Pines Farmers & Artisans Market, as the marketplace will celebrate its tenth anniversary in the spring. David Bean, who has served as the market manager in Ocean Pines for the last nine years, said an anniversary celebration is set for June 5, from 8 a.m. to 1 p.m., in White Horse Park.“We are ready to celebrate what we’ve accomplished over this past decade,” he said. Founded in 2012 as a small community farmers market, Bean said the Ocean Pines staple has grown to become the largest year-round farmers and artisans’ market on Delmarva. In 2016, the market updated its name by adding “artisans,” in recognition of the popular artisan and crafter section. Bean said the anniversary event would feature live music. Other special activities are also being planned, dependent on the COVID-19 pandemic environment at that time. “Where Weekends Begin in Ocean Pines” is the market’s tag line, he said, and that speaks to the market’s success and support from its loyal shoppers. One thing that makes the Ocean Pines marketplace so unique, he said, is how it has grown over the years. “The market attracts an outstanding selection of merchants from Delmarva and beyond,” he said. “It’s one of the things we are proudest of.” Over the years, the Ocean Pines market has promoted awareness and educational programs through the “Kids’ Market Zone,” “Meet Me at the Market” DIY workshops, and the extremely popular “Open-air Marketplace Kitchen.”


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By TOM STAUSS Publisher 37290 Doubloon Drive 3 www.jabuildersllc.com im Hearn, the Captain’s Cove $134,900 $ association president for every year but one since 2012, has been elected for another term as Sea Robin Dolphin Wahoo Ta president. Rancher At a meeting of the Captain’s 3BR/2 BA • 1496 sq ft. Cove board of directors last month, 1 Car garage Hearn was elected along with other officers: Pat Perino as secretary, Dawn Wagner as vice-president, and Sea Robin Sailfish Mackerel Skipjack Michael Glick as treasurer. $150,000 $204,900 $208,900 $213,900 Wagner also serves as co-chair of the committee that is working to Ranch Style Home Ranch Style Home Ranch Style Home bring broadband services to Cap3 BR / 2 BA 1288 Sq Ft • $127,600 3 BR / 2 BA 1349 Sq Ft • $141,600 3 BR / 2 BA 1408 Sq Ft • $158,300 tain’s Cove. Rob Giard retirement -- Longtime Facilities Manager Rob Giard Marlin B Skipjack Tarpon II has announced his retirement, Ranch Style Home Ranch Style Home Ranch Style Home Ranch Style Home Hearn recently announced. Giard, 3 BR / 2 BA 1525 Sq Ft 3 BR / 2 BA 1527 Sq Ft 3 BR / 2 BA 1288 Sq Ft 3 BR / 2 BA 1657 Sq Ft who is responsbile both for maintenance and security in Captain’s Cove, will be leaving his position at Tarpon Striper Tarpon Plus Marlin the end of January. $194,600 $270,100 $212,600 $221,100 He is being replaced by two individuals. Jimmy Giddings took over as maintenance manager earlier Two Story Contemporary Home Ranch Style Home Two Story Contemporary Home this month, and Cove board member 3 BR / 2.5 BA 1818 Sq Ft • $191,400 3 BR / 2BA 1525 Sq Ft • $189,200 3 BR / 2.5 BA 1874 Sq Ft • $193,800 John Costello will be taking over as chief of security on Jan. 4. Tiger Shark Thresher Mako Once that happens, Hearn said, a 2-Story Contemporary Home 2-Story Contemporary Home 2-Story Contemporary Home 2-Story Contemporary Home Costello will be resigning from the ar 3 BR / 2.5 BA 1774 Sq Ft 3 BR / 2.5 BA 2243 Sq Ft 3 BR/2.5 BA 1607 Sq Ft 3 BR / 2.5 BA 1874 Sq Ft board, with recently elected board alternate Andy Zubdo stepping up Lo as his replacement on the board. Mako Tiger Shark Hammerhead Thresher Passings -- Hearn said that the $282,600 $194,400 $253,900 $256,000 Cove staff has been saddened by two recent passings, long-term maintenance employee James Johnson and Raised Home on Pilings Raised Home on Pilings TiRaised Home on Pilings the mother of Dawn Massey, in ad3 BR / 2 BA 1745 Sq Ft • $232,400 4 BR / 3.5 BA 1940 Sq Ft • $257,500 3 BR / 2 BA 1349 Sq Ft • $174,200 ministration. High speed Internet -- Eastern Shore Broadband has completed Raised Home on Pilings Raised Home on Pilings Raised Home on Pilings Raised Home on Pilings laying fiber optic cable from one end 3 BR/2 BA 1349 Sq Ft 3 BR / 2 BA 1663 Sq Ft 3 BR/2 BA 1745 Sq Ft 4 BR/3.5 BA 1940 Sq Ft of Captain’s Corridor to the other, beating its deadline of Dec. 31 by J&A Builders specializes in spec home sales and new home construction. All of our models are “stick built” and feature a first floor master suite with several weeks. Hearn said the first standard appliance package, and Low-E windows. These are a few of our models we can build on your lot. Prices DO NOT include the the lot. Homes are of similar design and may have upgrades. Prices good for Captain’s Cove, Greenbackville, Va. Only. Prices subject to change without notice. MHBR #4790 Internet hotspot in Captain’s Cove has been set up in the Marina Club. Efforts continue to bring high speed Internet service to Captain’s Corridor and side streets, with Hall Realty Hearn suggesting that connections 4323 Captain’s Corridor along Captain’s Corridor will be ©2017 BHH Affiliates, LLC. An independently owned and operated franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway Hom ® Housing Opportunity. VA. 23356 of HomeServices of America, Inc. EqualGreenbackville, happening very soon. 302-381-6910 (cell) Board meeting -- Another Cove 757-854-1604 (office) board meeting is set for Tuesday, 757-854-1606 (fax) Dec. 29. The agenda has been posted on the Cove members’ Web site.

T

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


34 Ocean Pines PROGRESS

OPINION

December 2020

COMMENTARY Board should revisit trash collection decision

T

he Board of Directors vote on Dec. 19 to award a new three-year contract for trash collection services in Ocean Pines should not stand. While Republic Services has provided reliable service in Ocean Pines since securing a contract in 2014, its costs to residential customers have escalated. Another reputable firm, Chesapeake Waste Management, submitted a significantly lower bid for a three-year contract. In a process snafu that is troubling, most directors voted to accept the high bid from Republic without actually seeing the spread sheet detailing the two competing bids. There was also no detailed analysis in writing of the bids in support of the staff recommendation, which apparently was delivered orally to two directors, OPA President Larry Perrone and Treasurer/CFO Doug Parks, prior to the vote. The “staff” recommendation was really not a staff recommendation at all but the opinion of Michelle Bennett, appointed by General Manager John Viola to handle the receipt and vetting of the bids. She’s the association’s senior executive assistant and someone who routinely delivers on tasks given her by Viola. In this instance, however, there is no particular reason to believe that vetting bid specs in the highly competitive trash collection business is in her wheelhouse. That’s not a criticism or an insult. Nor does it diminish the positive contributions she has made in other areas. It’s been very difficult to obtain an understanding of why she recommended Republic over Chesapeake, but it seems to have been because Republic has provided competent trash collection services to Ocean Pines since 2014. These touchy-feeley positive experiences apparently trump any real consideration of cost. But they shouldn’t. Chesapeake essentially is offering services close to what Republic proposed three years ago. Given time and the chance, there’s no reason to believe that Chesapeake couldn’t deliver similar services to Ocean Pines residential customers at a substantially lower cost. When asked by the Progress to provide a rationale for choosing Republic, Bennett was not immediately forthcoming. According to Viola, she reached out to Parks for help. No written rationale for the recommendation was provided by either Parks or Bennett in the days after the request. Parks was a consumer of the “staff” recommendation and was not involved in drafting it. However, he did offer the motion at the Dec. 19 board meeting to award the contract to Republic. His primary error was failure to supply the spread sheet detailing the competing bids to all of his colleagues or to offer any analysis either orally or in writing in support of the Republic bid, before the vote. Viola subsequently did supply “reasons” but they weren’t particularly compelling.

Bennett’s rationale for recommending Republic was that she was “very happy with [the] incumbent. Service was very good is some of what I remember ... apparently [aversion to] making a change had some weight also,” Viola said. When pressed on the reasons, he said he had heard nothing from Bennett to suggest that Chesapeake could not competently provide trash collection services in Ocean Pines. That’s a key point. Republic’s high bid for twice-weekly trash collection and once-a-week recycling pick-up was $24.20 monthly, billed quarterly in the amount of $72.60. Three years ago, Republic was the low and successful bidder for trash and recycling collection services at $19.68 per month. The company has availed itself of a provision in the 2017 contract that allows it to raise rates by up to three percent annually, a provision that would be included in a new contract as well. Republic initially won the contract in 2014, succeeding Waste Management, Inc as the contractor. The increase from $19.68 per month in 2017 to the new rate of $24.20 works out to 23 percent, well in excess of inflation and by far the largest increase in trash collection services ever recorded in Ocean Pines. The low bid submitted by Chesapeake was significantly lower than its competitor’s bid for residential collection services. Including both trash pick-up and recycling, it was very close to Republic’s bid from three years ago, before annual increases. In this year’s competition, Chesapeake submitted a bid for annual twice-weeky trash collection and once-weekly recycling totaling $19.28 monthly. It was even lower at $19.08 for sixmonth contracts. Chesapeake’s quarterly billing would have been $57.84 for an annual contract and $57.24 for a six-month contract, lower than the $64 or so that Republic is currently charging. The quarterly cost difference between Republic and Chesapeake’s bids is $14.76. Over a year, that’s the equivalent of $59.04 more that homeowners would be paying as the result of the board’s vote to retain Republic. Think of that $59.04 as equivalent of an OPA assessment increase of that amount. The good news is that at least one director, Frank Daly, is willing to revisit the decision. He’s hoping to receive some answers to questions he has about the process and rationale behind the Republic bid. He regrets not having asked his questions sooner, prior to the vote. Let’s hope those answers are forthcoming before a contract is signed with Republic. Three years ago, there was a very transparent process of comparing rates and awarding the contract to Republic because it was slightly more advantageous to residents. This year the process was far more opaque. Some directors voted on

Parks’s motion apparently without access to the bid sheets or the rationale behind the “staff” recommendation. Process matters, and this year’s process seems not to have shared essential information with all the directors before the vote. And as noted, Republic rates are significantly more than Chesapeake’s. Are OPA bid processes mere charades that give the appearance of fairness to vendors but in reality result in favored vendors getting and keeping their OPA contracts, independent of bid proposals? The jury’s still out on that. If the Board of Directors can’t see its way to reversing its decision granting a new three-year trash collection contract to Republic Services, perhaps it’s time to promote competition in the trash collection space in Ocean Pines similar to what is happening in the Internet-cable television arena. Rather than grant an exclusive contract to Republic or Chesapeake, the board could offer a non-exclusive contract to both companies, leaving it to each to offer services at the lowest possible cost, allowing for a respectful profit at the end of the day. Both companies would be encouraged to deliver on its pricing submitted as part of the recently concluded bid process, which allows for a three percent annual increase. Perhaps one or both companies could offer once-aweek service to residential customers who want it, as opposed to twice weekly collections not everyone wants or needs. -- 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. 127 Nottingham Lane Ocean Pines, MD 21811

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

Advertising Sales Frank Bottone 410-430-3660

CONTRIBUTING WRITERS Rota Knott InkwellMedia@comcast.net 443-880-3953

Susan Canfora myboyruss@earthlink.net 410-208-8721


December 2020 Ocean Pines PROGRESS

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36 Ocean Pines PROGRESS December 2020

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