December 2015 ocean pines progress by Ocean Pines Progress

December 2015 - January 2016

443-359-7527

Vol. 11, No. 10

www.issuu.com/oceanpinesprogGuidance calls for GM to use zero-based budgeting method The Board of Directors has charged the general manager with using a zero- based budget approach in the preparation of the fiscal 2016-17 Ocean Pines Association budget, but approved budget guidance did not include stronger language offered by Director Jack Collins that would have urged the general manager to either maintain the existing rate of the annual property assessment or lower it based on a thorough assessment of the needs of the organization. The directors approved the budget guidance document, with just a few final revisions, at their Nov. 19 monthly meeting. ~ Page 11

Steen’gifts’ OPA with Beach Club bathroom plans Developer Marvin Steen gave thanks and an early Christmas present to the Ocean Pines Association Board of Directors during a Nov. 19 meeting. Steen approached the board during the public comments segment of the meeting to thank the board for supporting revisions to his plans for a new development that will become part of Ocean Pines and then presented directors with schematic designs and a scope of work for renovation of the Beach Club bathrooms. ~ Page 16

Directors descend into argument over golf business plan Irritated that they didn’t receive copies of a draft business plan for golf course operations and membership until weeks after it was submitted to the Ocean Pines Association, some members of the Board of Directors say they are being intentionally left out of discussions with Landscapes Unlimited, the new golf management firm. ~ Page 26

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THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY COVER STORY

OPA golf working group unhappy with golf course business plan Directors take issue with modest proposed increase in membership; golf course manager to consider revising goal By TOM STAUSS Publisher ll is not well with Landscape Unlimited’s stewardship of the Ocean Pines golf course that began in June, with three Ocean Pines Association directors advising the golf course manager that it needs to do much more in rebuilding a depleted membership base, consistent with a promise LU executives made before being awarded a threeyear management contract earlier this year. While relations between LU executives and the Board of Directors’ working group remain cordial, it is clear that the working group of OPA President Pat Renaud, directors Tom Terry and Bill Cordwell, and General Manager Bob Thompson, are taking issue with how the company has been performing in the early months of its contract. Of particular concern is the company’s plans to rebuild sagging golf membership, which a report prepared by the working group said might even decrease next year.

There are reports that some members have said they are planning to leave to join other golf courses in the area. Apparently some of the membership erosion is attributable to continued op-

ed to replace Billy Casper Golf with LU. Using the executive summary of an LU draft business plan submitted in September, the OPA golf working group, in a recent quarterly meeting with LU

position within the membership base to the management change earlier this year, in which a slim board majority vot-

executives, cited a reference to an LU objective of growing “member numbers.” To Page 28

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2 Ocean Pines PROGRESS

December 2015 - Early January 2016

OCEAN PINES

December 2015 - Early January 2016 Ocean Pines PROGRESS

OCEAN PINES BRIEFS No answers forthcoming on audit report misrepresentation no such program has been approved by the board or even proposed by General Manager Bob Thompson. Thompson, in fact, has said more than once in public settings that the original 35-year replacement program is winding down, in its final stages, but that there remains a need for the $465 per year waterfront differential paid by owners of most bulkheaded property in Ocean Pines over and above the base lot assessment of $921. He has said that the OPA will need to start a new bulkhead replacement program at some point, but he has offered little rationale for it or quantified the funds needed for it. More recently, he has said that an ongoing reserve study will address the condition of bulkheads, after earlier in the year saying that bulkheads would not be part of the reserve study. He has never resolved that particular contradiction. Release of the reserve study in the coming months will no doubt clarify that particular issue. On page 40 of the audit report, at the

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t least one Ocean Pines Association director remains concerned about a significant misrepresentation in the 2014-15 audit report completed earlier this year by TGM Group of Salisbury. Ocean Pines Forum owner-manager Joe Reynolds, during the Nov. 19 Board of Directors meeting, rose during the public comments segment to commend Director Tom Herrick for responding to his (Reynolds’) request to get to the bottom of who authorized misinformation to appear in the audit report regarding the status of bulkhead replacement in Ocean Pines. Herrick, Reynolds said, was the only director who responded to his inquiries. Reynolds said that he and Herrick had both contacted the OPA president and general manager for answers, but that neither responded to the requests for information. Calls to the auditing firm also went unanswered, Reynolds said. The audit report indicated that the OPA has embarked on a new program of bulkhead replacement, when in fact

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OCEAN PINES

December 2015 - Early January 2016

OCEAN PINES BRIEFS From Page 3 bottom of Schedule 26, the auditors say in a footnote that the original 35-year program to replace all bulkheads in Ocean Pines “ended in fiscal year 20132014.” The footnote says the program “started over after an extensive survey of the oldest bulkheads” on May 1, 2014. There was no such extensive survey conducted, or any survey, for that matter. Thompson has said publicly that the statement in the audit report was in error, seeming to blame the auditors for the misrepresentation. He said that he would make a call to the auditing firm for an explanation. If he made the call, the results of it have never been disclosed.

Not readily apparent and indeed, easily missed, Schedule 26, unlike the other schedules in the audit report, was marked “unaudited.” That suggests that the auditors may not have been responsible for its inclusion in the audit report, or at least were not taking responsibility for its content. That raises the question: If the auditors were not responsible for the misrepresentation in the audit report, who was? It was that question that Herrick has been pursuing, only to be rebuffed so far by those he’s asked for answers. The issue is related to the status of the OPA’s bulkhead and waterways reserve, which some members of the OPA Budget and Finance Advisory Committee believe is too flush with cash relative to what has been spent in recent years

on bulkhead replacement and the absence of new program. The implication is that the OPA continues to collect a waterfront differential that arguably is too high or may not even be needed until a new replacement program is launched, which presupposes. According to the audited reserve summary contained in Schedule 25, it appears there was $637,928 in bulkhead and waterways spending between April 30 of 2014 and the year that ended on April 30 of this year. At that time, the bulkheads/waterways reserve contained $912,213. That increased by $822,367 on May 1, much of it from the waterfront differential. As of June 30, the balance in this fund was $1.7 million, roughly twice what

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has typically been spent on bulkhead replacement in recent years. As of Oct. 31, the balance was $1.666 million. According to the auditors, bulkhead replacement should be costing the $686,000 per year based on 108,930 linear feet of bulkheading and current replacement costs of $210-225 per linear foot. Close to that apparently was spent in 2014-15, according to the audit report. It is unknown whether anything close to that will be spent during the current fiscal year.

Sandpiper agreement near finalization

Ocean Pines Association President Pat Renaud told the Progress in early December that the OPA and Sandpiper Energy are very close to finalizing an agreement that will usher in several years of natural gas conversion in Ocean Pines. He said an agreement could be announced by the end of the fiscal year if the final draft of the agreement is approved by both parties. He said the agreement will include a satisfactory resolution of one key issue, reimbursement of legal expenses incurred by the OPA in pursuit of a new franchise agreement. He declined to say whether a franchise fee will be included as part of the agreement, but he said a lot of people will be “pleasantly surprised” by the agreement. That could suggest that the franchise fee isn’t part of the pact, because many Sandpiper customers would probably object to the fee if, as suggested, it would be passed on as part of their monthly bills. It’s been estimated that a $150,000 franchise fee would cost Sandpiper roughly $2 per month in higher fees. Renaud praised Thompson for his efforts to negotiate an agreement on behalf of the OPA.

Santa to appear at Pines’ events

Despite the area’s beach location and relatively mild temperatures, Santa Claus and his posse has already made appearances at several Ocean Pines events, with more to continue during December. Santa began his visit to Ocean Pines with “Breakfast with Santa Claus & Friends” on Saturday, Dec. 5, from 8 – 11 a.m. at the Ocean Pines Community Center. The Reindeer Lane Gift Shop, also held on Dec. 5, is a holiday “store” where children ages 12 and under could purchase gifts for family and friends. Items for children and adults, all nominally priced, were available. Following these events, Santa will be visiting with children weekly in White Horse Park, located across from the community center. He will be available for lap-sitting, pictures and wish lists every Saturday and Sunday from 11 a.m.-2 p.m. until Sunday, Dec. 20. There is no charge for this Santa experience.

4 Ocean Pines PROGRESS

BOARD OF DIRECTORS

December 2015 - Early January 2016 Ocean Pines PROGRESS

Terry calls for faster OPA action on maintenance violations

OCEAN PINES BRIEFS From Page 4 Santa will don swim trunks and flipflops at the 8th annual “Swim with Santa” on Saturday, Dec. 12, from 11 a.m.-1 p.m. at the Sports Core Pool, located at 11143 Cathell Road. The fee is $6 for swimmers and $3 for non-swimmers. Donations of food and unwrapped toys will also be accepted on behalf of the Worcester County Sheriff Department’s “Christmas for the Needy” program. All of these events are open to the public.

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Thompson cautions against fast-tracking unless safety issues exist then billing the property owner for the cost, even without a guarantee of payment. Director Cheryl Jacobs said the board needs to realize that with liens already filed against the property, it is unlikely that the OPA will be able to recoup any funds expended to enter onto the property and clean up a lot or made needed cosmetic repairs. She said when a situation like this exists where the property owner is not responsive and a lien exists already, “we’re not going to get our money back.” Terry asked OPA General Manager Bob Thompson about the procedure for having public works employees enter onto the property to rectify maintenance issues. Thompson said the board has the right to fast track action against any property owners on whose property a violation exists. He said fast-tracking action against a property owner would give staff the ability to resolve issues without coming back to the board for further action. Typically that is done when a safety violation exists. “If you look at this, this is unsightly… but deeming it unsafe…” is another matter, he said. In the absence of a clear safety concern, Thompson said the next step in the association’s procedure for bringing a property into compliance is to refer it to the OPA attorney, who will then send a letter under the law firm’s letterhead to the owner seeking resolution of the issue. If that doesn’t do the trick, then the property comes back to the board for review again. At that point the board can then either direct staff to enter onto a property and clean up maintenance issues or

direct the attorney to file suit against property owners in order to bring them into compliance. Thompson said he is concerned about the board abandoning that process to expedite action on properties if no safety concern is present. He said if the board were to fast track action against the owner of 42 Ocean Parkway, then it would set precedent for similar action on other properties in the future. “This process for cleaning up something like this just takes too long,” Terry responded. “This started in August” and it will be at least another month before anything is done on the property, he said. Terry said the board needs to have a discussion about streamlining the process. Director Jack Collins said he agreed with Terry about the need for a discussion. But he was concerned about infringing on the rights of property owners. He said the last time this issue was discussed OPA legal counsel cautioned the board about that issue. Terry responded that discussion was more specific to the removal of so-called junk vehicles from a lot. Those are considered personal property and the OPA must seek an injunction from the court in order to remove them, he said. Collins said Terry made a good point about the need to clean up problem properties sooner than is currently being done. “I think we’ve got to protect the neighborhoods and the community,” he said. “I just don’t want to see us get ourselves into a jam. “How do we pursue it, Tom?” he asked Terry. Terry responded that the board needs

Chris Conway wrote “The Devil’s Voice,” about a disturbed, institutionalized man named Michael, who, guided by the voices he hears, manages to regularly escape. Meantime, local police struggle to determine who’s been brutally killing young, attractive women. Participants in the contest need only to read the intriguing book then chose a contest. Either write either a detailed dream that Michael might have or write an alternate ending to the book. Each must be 300 or fewer words. The first-prize winner for each contest will receive $50 the second-place winner in each contest will be awarded $25. Winners will be announced, and the cash prizes awarded, at a book signing and event to meet the author at 5:30 p.m. Wednesday Jan. 6 at the Berlin library. All entries are due by 5 p.m. Dec. 20. E-mail them to cconway@calibersealing. com and myboyruss@earthlink.net.

Books are available at libraries in Ocean Pines, Ocean City, Berlin, Salisbury and Snow Hill. They are also for sale in local shops including Dazzle and A Bagel And … in Ocean Pines, online from Amazon and from the author. Conway is sponsoring the contest, he said, to give aspiring writers an opportunity to showcase their talents. He also wants to encourage education about institutionalization, and the dangers of closing institutions and releasing some clients into society before they are capable of living on their own. For more information, call 410-2088721.

Rec Department plans several winter bus trips

The Ocean Pines Recreation and Parks Department has several bus trips planned for this winter. A trip to Washington for “Matilda

to have a discussion around the process and then get advice from legal counsel about what the OPA can and cannot do to resolve maintenance violations in the community. He said he was not prepared to make an official suggestion for change to the process during the Nov. 19 meeting but simply wanted to bring up the issue for consideration. “I think we’ve had these decisions before,” Director Dave Stevens said. If legal counsel is going to once again be asked to weigh in on the matter then the OPA needs to keep a record of it, he added. Stevens made a motion that was approved by the board to find 42 Ocean Parkway in continuing violations of the restrictive covenants and to forward it to counsel for a legal letter to be sent to the owner. His motion included having staff discuss the issue with legal counsel to determine if it is appropriate to fast track clean-up of the lot by having public works enter onto the property and do so, even if no safety issue exists. The board also reviewed and acted on a CPI violation found on the property at 6 Tiller Lane. That violation consisted of a box trailer being located on the property. Collins asked how long the regulation prohibiting box trailers has been in place. Thompson responded that it is in the declaration of restrictions, intimating that it has existed since the inception of Ocean Pines. “It’s in DRs?” Collins responded and then asked if the restrictive covenants make any reference to the parking of boats and trailers and similar vessels or vehicles on numbered lots. Thompson couldn’t tell him exactly what the covenants say about them but added “there is clarification in there.”

By ROTA L. KNOTT Contributing Writer irector Tom Terry wants to streamline and expedite the Ocean Pines Association’s process for handling property maintenance violations. “Sometimes we need to move quicker on these things,” Terry said during a Nov. 19 review of violations of the restrictive covenants submitted by the Department of Compliance, Permits and Inspections for action by the Board of Directors. At issue was the property at42 Ocean Parkway, where CPI found numerous maintenance violations, including an open water meter hole that is full of water, trash and debris, weeds, a broken gutter, and a window that is open to the weather. CPI said the property, which has been cited for violations in the past, appears to be abandoned. The owner of the property is also reportedly delinquent on his OPA assessments for the last two years and has a current balance due of $2,423.52. Liens have been placed on the property. CPI recommended finding the property in continuing violation of the declaration of restrictions and sending the issue to legal counsel, who would send a letter to the owner demanding clean-up. Terry argued that another letter, even if it is from the OPA’s attorney, isn’t likely to get the job done. “I don’t think this guy’s going to pay any attention to a lawyer letter,” he said. He pointed out that the property owner has already left unclaimed four certified letters from the association regarding the matter. “When someone ignores communications after communications” Terry said there needs to be a way to expedite the process. He said the OPA needs to take action to “go in and do what we can.” Generally that means entering onto the property, repairing it as needed, and

the Musical” at the Kennedy Center is scheduled for Saturday, Jan. 9. The cost to attend this performance is $120 per person, including a ticket to the show and transportation. Another Kennedy Center trip is set for Saturday, Jan. 23, for “A Gentleman’s Guide to Love & Murder.” The fee for this musical is $95 per person, including show ticket and transportation. NASA’s Wallops Flight Facility will be the featured destination for a trip on Feb. 16. Tour companion Steve Habeger, a former employee at Wallops, will hostthe facility tour. The cost is $35 per person. Additional trips are scheduled for March 22 and April 19. The buses for these trips, which are open to the public, will depart from the Ocean Pines Community Center. Reservations are required. Refunds will not be issued for cancelations unless vacant seats can be filled. For more information or to register, call 410-641-7052.

6 Ocean Pines PROGRESS

BOARD OF DIRECTORS

December 2015 - Early January 2016

Community survey to help guide comprehensive planning process By ROTA L. KNOTT Contributing Writer onsultants retained by the Board of Directors to develop a comprehensive plan for the Ocean Pines Association are preparing to send out a survey to all property owners to garner input regarding future facilities priorities and community needs. Steven Cohen, chairman of the Comprehensive Plan Committee, provided an update on the project, which was contracted out earlier this year to the Business Economic and Community Outreach Network (BEACON) at Salisbury University, during a Nov. 19 board meeting. The OPA retained BEACON to design a series of planning analysis models and accompanying decision support tools to assist the association in exploring the benefits, consequences and fiscal outcomes of a variety of community planning scenarios. “This is a process. It’s not a decision. We’re putting data together so you as a board understand where we are, where

we should be, and what the people want,” Cohen said of the comprehensive planning process. He told directors that Memo Diriker and his students at SU have completed a series of telephone interviews and conduced two focus groups to gather input. One focus group was composed of Ocean Pines’ so-called “movers and shakers” and the other was made up of average property owners, he said. “Something came up during those discussions that they decided to have a third focus group in order to get an understanding of what that means,” Cohen said of the consultants. He said comments were made during the focus groups that “we’d like to be where we were 40 years ago” in Ocean Pines but he didn’t know exactly what that meant. Apparently neither did the consultants and that’s why they want to hold another focus group. Once that initial work is complete, Diriker will meet with the OPA board to

discuss the data gathered from the focus groups. Meanwhile BEACON is also drafting a list of potential questions for inclusion on a survey that will be distributed to every Ocean Pines property owner. The Comprehensive Plan Committee will do an initial vetting of those recommended questions and then bring them to the OPA board for approval. The goal is to distribute the survey in March, probably through a mass mailing, although that detail has not been finalized. The board will be asked to decide how to distribute the survey and to approve the cost of mailing. Cohen said the committee is discussing the best way to distribute that survey in order to maximize the response by property owners. He said BEACON has recommended mailing the survey to every property owner because that will likely generate the best response rate. The goal is to achieve a 15 to 20 percent return rate.

Once the survey process is complete, BEACON will tabulate that data, and incorporate it, along with the focus groups and telephone interview data into a final report that will be used in phase two of the comprehensive planning process. That will involve developing a series of scenario models. The scenario analysis tool will help the OPA to understanding its long-term planning vision; decide on certain future scenarios, and determine how each of those scenarios in the future would yield results. Cohen said the comprehensive plan is not meant to be a static plan that is completed and simply sits on a shelf. He called it “a living document.”

Violations From Page 5 Collins asked if there is a possibility that a particular section of Ocean Pines does not have a reference to box trailers in the DRs?” Thompson replied, “Not to my knowledge.” The directors voted unanimously to find the property in continuing violation of the restrictive covenants and send the issue to the OPA attorney for action.

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BOARD OF DIRECTORS

December 2015 - Early January 2016

UNSURPASSED

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Board finally adopts budget guidance to general manager Stevens withdraws motion to delay action, votes to approve instead By ROTA L. KNOTT Contributing Writer ailing to delay approval of a budget guidance document that provides directives to the general manager as part of the Ocean Pines Association’s fiscal year 2016-2017 budget process, Director Dave Stevens ultimately withdrew a motion to table discussion of the issue. Instead he voted for the original motion to approve the document after being assured that his concerns about the budget guidance were being addressed. Director Tom Terry, who serves as OPA treasurer, developed the budget guidance based on input from the Budget and Finance Advisory Committee and his fellow directors. To kick off discussion at a Nov. 19 board meeting, he offered a motion that the board accepts the proposed budget guidance to the general manager for fiscal year 2016-2017. He said the board received input from Budget and Finance and discussed the issue at a September board meeting. Following that board meeting, he drafted the budget guidance document to facilitate input from board members. Stevens immediately offered a motion to table further action on Terry’s motion to approve the budget guidance. He wanted to hold a separate meeting devoted just to the issue of budget guidance. “I believe that there are sufficient numbers of discussion topics and points

that in order to do it properly we should do this in a special open meeting,” he said. “I believe that this deserves a lot more time.” Director Jack Collins offered a second to Stevens’ motion to table the topic and said he too believed that special meetings can be helpful. He said during his first year as a board member, Terry was president and created a series of working meetings with agendas that were limited to one or two topics. He said he found those meetings to be very useful to him as a board member and in engaging the community in open discussion about various topics. Director Bill Cordwell was not interested in having more meetings. “I was part of those work sessions and I thought that they were a thorough waste of our time. There were no motions made. There were no votes taken during those closed sessions,” he said. “The premise was good,” Cordwell said, adding that was for the board to discuss issues during special meetings in order to lessen the debate when a vote was ready to be taken during a regular monthly meeting, but he said “they didn’t work.” He said what actually happened was that the board simply had lengthy debates on the same topics at two meetings instead of one. “I can’t remember one thing that I got out of those work sessions other than another meeting,” Cordwell said. “We’re in an open meeting now. Let’s discuss this guidance. How long can we wait?” He said last year the board dilly-dallied and didn’t give its budget guidance

8 Ocean Pines PROGRESS

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GM provides update on reserve study, bridge repairs By ROTA L. KNOTT Contributing Writer he first draft of a reserve study of the Ocean Pines Association’s facilities and its ability to fund their maintenance is due from consultants Design Management Associates Inc. of Richmond, Va. later this month. OPA General Manager Bob Thompson during a Nov. 19 Board of Directors meeting

Budget guidance From Page 8 to General Manager Bob Thompson until Dec. 3. The budget was essentially done by that point and is likely 80 to 85 percent complete for fiscal year 2-162017 already, he said. “We’re so far down the road this might be an effort in futility.” Director Cheryl Jacobs said he thinks the board has completely lost track of what the budget guidance document and Terry’s motion is all about. She said it is simply to put before the board the Budget and Finance Advisory Committee’s suggestions to the general manager for consideration when he is preparing the budget. “And I think that’s all we need to vote

Directors expected to decide soon between bridge repair, replacement options said the reserve study is well under way. The OPA hired DMA to perform an interactive reserve analysis that will detail how long the components of various facilities will last, where in that life cycle they are and the cost to replace

them. Thompson said the consultants first looked at a schedule of components and expenditures bulkheads, roads and bridges, and was then set to move on to studying the OPA’s other facilities. He said he had a conference call with DMA

on,” Jacobs said. After that any board member has a right to provide additional input on building the budget, she said. Terry agreed and said the budget guidance process is simply the drafting of general guideline from the board to the general manager with topics at a “high level.” It suggests the board’s interest in certain issues, projects and policies. He said the board agreed to the budget guidance process at a Sept. 24 meeting. “At this point ladies and gentlemen we either vote for this thing or don’t bother to do it at all,” Terry said. He said if the discussion is tabled again the board shouldn’t even bother to proceed with budget guidance. “This is becoming a silly process. We’re not following what we agreed to

do in September. The document was done well in advance of when it needed to be done to give it to the general manager and if we don’t vote for this thing up or down today, I think we might as well just skip it and not even bother to do it,” Terry said. Stevens ultimately withdrew his motion to table Terry’s motion for approval of the budget guidance and a lengthy discussion about various items included -- or not -- in the document ensued. After being assured that their concerns were either addressed by language already included in the budget guidance or would be handled separately during the budget process, both Stevens and Collins supported Terry’s motion for approval. The motion passed unanimously.

the previous week and reviewed a presentation on their progress so far. He said the reserve study is “looking good.” The OPA is pursuing with a threepronged approach to planning for improvements in Ocean Pines that includes developing a reserve study, a comprehensive plan and finally a capital improvement plan. The reserve study, essentially a snapshot of facility conditions, will give the CIP critical information while the comprehensive plan will direct the CIP in the long term. The CIP itself is a more operationally based document that will be used day-to-day to make facility improvements. Director Dave Stevens asked where the consultants are getting their data. Thompson replied that DMA performed a site visit in October to study the OPA’s facilities and gather information about them. Additionally, the OPA’s auditors and comptroller provided DMA with a chart of assets and other financial information. “So they are using our chart of assets, the basis for our deprecation contribution?” Stevens asked. “And their own visual inspection?” Thompson responded “You’re right on target. That’s exactly right.” To Page 10

BOARD OF DIRECTORS

December 2015 - Early January 2016

Star Charities donation

From Page 9 Meanwhile, the OPA is planning for both the immediate repair and replacement of the Ocean Parkway and Clubhouse Drive bridges. The bridges will be able to remain open while the repairs, at at $243,100 per bridge, are being made. Thompson said the board of directors will have to decide which to approve, but the repair option is well under way. Repairs are the responsibility of the OPA, while 80 percent of replacement costs are supposed to be funded by the county from pass-through state and federal grants, depending on availability. Thompson said DBF Engineering has completed permit applications for the Maryland Department of the Environment and the U.S. Army Corps of Engineers and the design drawings are 50 percent complete. He estimated that the permit approval process will take three to four months from the date of submission in late November, and that a request for proposals will be released by Dec. 15 and will due back by Feb. 15. A contract award will be made in late February with repair work expected to take six weeks per bridge. DBF Engineering is also developing construction costs per linear foot for re-

At the Nov. 6 monthly meeting of Star Charities at the Ocean Pines Library, a check in the amount of $500 was donated to the Worcester County Veterans Memorial Foundation. Pictured (left to right) are Star Charities volunteers with Marie Gilmore, president of the Worcester County Veterans Memorial Foundation, as she accepts the donation; Peggy Rhumburg, Gilmore, Lee Tilghman, Star Charities President and Founder Anna Foultz, Irmgarde Heinecke, Barbara Peletier, Sandy McAbee, Mary Evans, and Robin Beall. placement of both bridges using either timber and precast concrete construction. Thompson said he expects to present the cost analysis to the board at its December meeting and directors will need to decide which option to pursue. DFB will then refine costs estimates based on the type of bridge construction selected, with the final estimate due by Jan. 30. Costs will include construction, mobilization, detour and engineering. Then the board will make the final decision regarding which path to pursue.

The OPA also has to RFPs out for bids, one for redevelopment of the Manklin Meadows Recreation Complex and another for stormwater improvements along St. Marin’s Lane. Thompson said specifications and final design drawings for the changes at Manklin Meadows have been submitted to Worcester County for approval, and critical area review is under way at the state level. Plans call for reconfiguration of the playground, community gardens and parking to make way for more plat-

form tennis and pickleball courts. Proposals for the project are due to the OPA by Dec. 14, with anticipated review and recommendations to the board by December meeting. Construction will begin in mid-January, weather permitting, and be completed by April 30. The OPA is also preparing for the replacement of four existing drainage pipes located at the intersection of St. Martin’s Lane and White Horse Drive. Bids were due back to the OPA by Nov. 30.

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December 2015 - Early January 2016Ocean Pines PROGRESS 11

BOARD OF DIRECTORS

Board guidance document calls for GM to use zero-based budgeting Collins’ call for lower assessments or ‘no increase’ is watered down by directors

fort to reduce expenditures where there are identified efficiencies and unneeded funds.” Terry declined to include that specific language in the document, saying “It’s

By ROTA L. KNOTT Contributing Writer he Board of Directors has charged the general manager with using a zero- based budget approach in the preparation of the fiscal 2016-17 Ocean Pines Association budget, but approved budget guidance did not include stronger language offered by Director Jack Collins that would have urged the general manager to either maintain the existing rate of the annual property assessment or lower it based on a thorough assessment of the needs of the organization. The directors approved the budget guidance document, with just a few final revisions, at their Nov. 19 monthly meeting. Director Tom Terry, OPA treasurer, drafted the budget guidance document based on input from the Budget and Finance Advisory Committee and his fellow directors. In the document, the board says the budget needs to take into account repairs, renovations, and upgrades to the OPA physical assets. It also needs to account for effective management and operation of the various amenities and departments of the Association. “In proposing a budget, the General Manager needs to make every effort to focus on the vision of the OPA to be a premier resort community, offering exceptional value and quality of life to property owners who are diverse in age, economic status and interests, and to primarily provide residents the facilities, services and amenities that are attractive, affordable, safe and enjoyable. In addition, where possible, to take into account the economic climate which impacts the members of the OPA and to take advantage of the appropriate advice and counsel needed for selected areas.” The document is provided to General Manager Bob Thompson as a way to convey the board’s initial interests, directions and policy positions for the budget cycle. This document is not meant to cover every item of a proposed budget but does provide a policy framework around which the budget can be crafted. Terry offered the motion to approve the budget guidance, with Director Cheryl Jacobs offering a second. Following discussion the motion carried unanimously. Director Jack Collins was a strong supporter of including language in the document specifically stating that the property assessment should not be raised or there should be a “concerted ef-

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From Page 11 the nature of doing a good budget.” But Jacobs said she believes the documents as drafted covered that topic by simply directing the general manager to use a zero-based budget process. Collins agreed that addressed his concern. During review of the budget guidance, Terry said two suggestions had been made that were not included in the document. They were to evaluate whether or not to use Ocean Pines share of local impact funds from the Ocean Downs Casino to cover the cost of bridge repairs and a suggestion that a proposed 3 percent pool of money for employee salary increases be removed. Director Bill Cordwell questioned the issue related to employee raises. He said he thought the intent was to delay the employee raises pending a human resources study. However, he said “to my knowledge there is no HR study being done.” Therefore he wasn’t in favor of excluding employee raises. Terry agreed that the guidance from the Budget and Finance Committee was to complete a study of the salary structure. It will be up to the general manager to make a recommendation in the budget regarding that proposal. The document says the budget should include any new positions deemed necessary to carry out the mission and to meet the FY 2017 objectives of the association, and should eliminate any positions not deemed necessary. Additionally, the board would like the budget to include a technology position via direct hire or consultation to meet the needs of a major IT improvement plan. 11029 Racetrack Overall the Rd. budget guidance docu1 1029 Racetrack Rd. Berlin, MD 21811 a reaffirmation ment includes of the OPA Berlin,statement MD 21811 to assure the budget vision will support Ocean Pines as a “premier resort community, offering exceptional value and quality of life to property owners who are diverse in age, economic status and interests, and to provide residents the facilities, services and amenities that are attractive, affordable, safe and enjoyable.” The document states that the allo-

cation of operating dollars should focus on having staff with the skill sets necessary for an organization the size the OPA and able to deliver quality services, while effectively reducing unnecessary expenditures. Process improvements and increased staff productivity should be based on the inclusion of expanded investment in and use of updated technology. In its budget guidance the board said that the capital dollars included in the upcoming year’s spending plan should continue the capital funding approach utilized by the OPA to build and use reserves inclusive of depreciation expense. The FY 2017 budget should continue with the capital funding provided to support the major capital repairs, enhancements, or replacement of existing major assets, as well as provide for the repair and/or replacement of smaller general assets. As part of the capital budget, the funding of road resurfacing costs should continue to utilize the casino Local Development Funds, which have been restricted by the legislation for infrastructure purposes. At the request of Director Dave Stevens, the board agreed to include language in the document that the capital budget include only the actual funding needed to assist in evaluative studies and work needed to support the development of full project proposals. The proposals will be brought to the board for full approval at a later time. All depreciation that is not included in the proposed yearly assessment should be identified in a separate report. The FY 2017 budget should continue PRSRT STD with the capital funding provided to support PRSRT STDthe USPOSTAGE major capital repairs, enhancements, USPOSTAGE or PAID replacement of existing major assets, PAID and/or MAILMOVERS as well as provide for the repair MAILMOVERS replacement of smaller general assets. The FY 2017 budget must also address those capital needs for new capital assets. While the actual budget under development for board approval is focused on the single fiscal year 2017, the board said in its guidance that the budget must address and be built on the conTo Page14

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emerged two and a half hours later with no deal, but acknowledging that progress had been made. Essentially, the package being discussed would allow the energy company to convert the more than 8,400 homes in the community from propane to natural gas. â&#x20AC;&#x153;It went well, I think,â&#x20AC;? Renaud said of later that day of the boardâ&#x20AC;&#x2122;s discussion. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re very close. Weâ&#x20AC;&#x2122;re working on the contract and trying to get to a resolution.â&#x20AC;? Renaud said the directors went over a series of questions that were conveyed to General Manager Bob Thompson, whom the board designated to lead the negotiations with the company last June. â&#x20AC;&#x153;Hopefully weâ&#x20AC;&#x2122;ll have something by the end of the year, but Iâ&#x20AC;&#x2122;m not positive on that,â&#x20AC;? Renaud said. â&#x20AC;&#x153;Bob has worked very hard in trying to get them to see our point of view, and they have, on the other hand, worked very hard to see their point of view.

gave something, they gave something. We never gave anything without getting reciprocity from them. â&#x20AC;&#x153;What I see is that they are anxious to close the deal. I think we are anxious too, but not as anxious as they are,â&#x20AC;? Renaud added. Sandpiper has already converted propane lines in several communities in Worcester County, including Berlin and West Ocean City, and had hoped to do the same in Ocean Pines last year, when talks stalled. â&#x20AC;&#x153;I think it makes them look kind of bad that [Sandpiper] is going ahead with West Ocean City and with Ocean City without Ocean Pines, because weâ&#x20AC;&#x2122;re the biggest fish in the pond, so to speak,â&#x20AC;? Renaud said. â&#x20AC;&#x153;I think they want to close that deal.â&#x20AC;? Once the contract is signed, Renaud suggested Sandpiper would almost immediately start converting lines in Ocean Pines, although he said a full conversion could take several years.

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14 Ocean Pines PROGRESS December 2015 - Early January 2016 Zeo-based budgeting From Page 12 cept of a multi-year foresight. Major projects, as identified in the Board of Director’s objectives ffor FY 2/17, should be used as a guide for planning. Projects, such as road resurfacing, community drainage issues, and technology upgrades and any related improvements and/or replacements, should be specifically analyzed and included in the budget. The document specifically states that the budget must include an IT improvement plan along with a needs and justification document, which may cover multiple fiscal years for full implementation after FY 2017. The board recognized that will likely require additional funding be allocation for that effort. As it relates to the amenities, the document says the financial results should be budgeted on a realistic basis and reflect continuing efforts to increase revenues through greater usage, as well as decreasing expenses where feasible. Significant increases or decreases of more than 5 percent in FY 2017 budgeted revenues or expenses, compared either to the FY 2015 budgeted or projected levels, should be supported by the amenity’s business plan and appropriately explained or justified. Additionally, the budget should emphasize increased

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At the Nov. 8 change of watch dinner and dance at the Ocean Pines Yacht Club, new board members of the Ocean Pines Boat Club were inducted. Shown are, front, Doris Lloyd, commodore; Nancy Engelke, director; second row, Steve Stein, director; Janet O’Brien, secretary; Pat Marchesiello, rear commodore; third row, Dave Lloyd, editor-in-dhief; Fred Heinlen, treasurer; Walt Lischak, fleet captain; Rich Marchesiello, vice commodore; Tom Southwell, director; and Stuart Glassman, director. Not pictured, Tim Collins, director. marketing for broader utilization of the amenities, as well as an assessment of pricing policies pertaining to non-member utilization. At the presentation of the proposed budget to the board in January, the general manager will present a report on each capital item that was listed in the

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ing designated in the replacement reserves for capital projects that may or may not happen during the fiscal year. He cited funding allocated for a new police station and White Horse Park bathrooms as examples in the current year’s capital budget. He said they are projects that are not supported by the fiscal year budget and have never been approved by the board; they are simply projects that are being considered. Stevens said their inclusion, along with a potential funding allocation, appears to reduce the reserve fund balance, even though they are “not real projects.” He said they are listed as capital items that in the budget and added up $1.675 million. “That is extremely misleading,” he said. “Fundamentally it’s fantasy, fantasy budgeting.” Instead, Stevens recommended that the budget guidance document instruct the general manager to only include funding for appropriate engineering costs and studies that may be needed during the fiscal year to move a project forward. Terry agreed that the engineering or study cost that may actually be spent during the year could be put in as a

placeholder instead of the total estimated project amount. He did not support a zero allocation for projects until the board officially approves them as capital projects to be completed. He also cautioned that if the general manager then wants to move forward with a project later in the year, no funding will be allocated to do so. “It’s not a capital project until the board approves it,” Stevens said. “I believe we have a level of agreement as to what the guidance would be,” Terry responded and agreed to make the change to the document. The budget guidance was revised to state that the board requests the budget include only the actual funding needed to support evaluative studies and work done to support future proposals for a full project approval. “In other words the assumption isn’t that the project has been approved but there does need to be dollars in budget,” Terry said, “On projects that will later be presented for full approval by the board.” Director Bill Cordwell said removing the large funding allocation just gives board members the opportunity to not support projects because the full funding isn’t in the budget. “We’ll never get anything done. Never,”

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Terry said that doesn’t need to be included in the high-level budget guidance. Instead he said that is “certainly something we can do as a board.” He said the board can just tell the general manager to transfer remaining funds from the reserve and zero-out that column in the budget. Cordwell said the board should seek counsel from the OPA’s auditor, controller and general manager before moving forward on that issue. “I think there may be some problems with doing that and would like to know ins and outs,” he said. Terry agreed and said the board can address that issues “offline” while working on the budget. “We really don’t know what the impact would be,” he said. Stevens said the draft budget guidance document says that the fiscal year 2016-17 budget should continue the capital funding provided to support

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By ROTA L. KNOTT Contributing Writer irector Dave Stevens scored one out of three in his bid to have a trio of revisions incorporated into a document that provides guidance from Board of Directors to the general manager regarding development of the Ocean Pines Association’s 2016-17 budget. The board agreed to revise language in the budget guidance regarding “placeholder” funding for capital projects, but declined to zero out the legacy reserve fund or to clarify who is responsible for developing a capital improvement plan. During a Nov. 19 board meeting, Stevens wanted to know why his suggestions were not incorporated into a draft of the budget guidance as presented by OPA treasurer Tom Terry. Terry said Stevens missed the deadline for submitting his comments but that they could be discussed at that meeting. Stevens initially wanted to table discussion of the documents and hold a special meeting on the subject but eventually withdrew a motion to do so. Instead the board approved the budget guidance in a unanimous vote. Among Stevens’ recommendations was the removal of “placeholders,” fund-

Stevens scores victory, has ‘placeholder’ funds removed from budget guidance

he complained. Terry responded that the general manager can present projects to the board for approval whether or not they are included in the budget. Stevens also wanted the budget guidance document to specify that the general manager should zero-out the legacy reserve, also known as the five-year replacement plan. He said the OPA is coming to the end of that plan and funding in that reserve and had agreed previously to eliminate that fund.

16 Ocean Pines PROGRESS

BOARD OF DIRECTORS

December 2015 - Early January 2016

Developer ‘gifts’ board with plans for Beach Club bathroom renovation

Steen tells board that oceanfront amenity is in good condition except for lower level bathrooms, backing Collins in effort to renovate rather than replace Ocean Pines’ popular summer amenity

2016-2017 spending plan. “I think it would be a great idea,” Steen said. “That building is in great (condition) besides the restrooms.” The total cost of the project as proposed by Sens, Inc. is $462,600. The proposal is for a complete renovation of the men’s and women’s changing rooms,

bathrooms and showers at the Beach Club, with all necessary labor, material, equipment and project supervision. The sketch plan and scope of work include design drawings, demolition and removal of existing concrete floor, framing, sprinkler, plumbing, HVAC and electrical work as required for the new

facilities. It does not include the cost of items such as permits, meter, tap or impact fees, performance bonds, site work, building and ground signage, utilities and telecommunications installation. “This is tearing everything out and going brand new,” Steen said.

Placeholder funds

tal budget we got didn’t have (sufficient) capital dollars in it. We had to add a lot of stuff,” he said. Stevens said the language can be interpreted to mean that the OPA should continue doing things the way it has been done, including keeping the fiveyear funding plan. “That’s my problem with it,” he said. The third item on Stevens’ list was to clarify who is responsible for the development of the capital improvement plan. As drafted the document says that “using the previous capital plan structure the budget should clearly provide a formatting mechanism which will

be utilized to provide for FY16-17 and longer term needs based on an updated capital improvement plan and reserve study.” “Is anything happening on this?” Stevens asked. Terry said that the document simply referenced an updated capital improvement plan. It doesn’t say who’s doing it. “It says to the general manager pay attention to an updated capital improvement plan,” he said, adding, “Your issue is valid on another topic as to who is actually doing the work.” Stevens said the budget guidance to the general manager is “predicated on the fact that that’s being done.”

From Page 15 major capital repairs, enhancements or replacement of existing major assets as well as provide for repair and/or replacement of smaller general assets. That language ignores the board’s decision last year regarding zeroing out the legacy reserve, he argued. Terry said that sentence does not reference from where the money comes to support the projects. “It is a boilerplate sentence which simply says make sure your budget includes capital needs of the organization because last year capi-

By ROTA L.KNOTT Contributing Writer eveloper Marvin Steen gave thanks and an early Christmas present to the Ocean Pines Association Board of Directors during a Nov. 19 meeting. Steen approached the board during the public comments segment of the meeting to thank the board for supporting revisions to his plans for a new development that will become part of Ocean Pines and then presented directors with schematic designs and a scope of work for renovation of the Beach Club bathrooms. Steen, who paid for the initial proposal development work himself, had local contractor Sens, Inc. evaluate the existing conditions of the men’s and women’s bathrooms, changing rooms and showers at the Beach Club on 49th Street in Ocean City and create a plan to renovate them. He said the proposed project is “something for next year’s budget” and asked that the board consider including the renovation as part of its fiscal year

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December 2015 - Early January 2016Ocean Pines PROGRESS

Beach Club From Page 16 Director Jack Collins asked who authorized Steen to have the proposal drawn up. Steen responded “nobody,” adding that he took the initiative himself and had the contractor visit the amenity over the summer. “It’s a great building and a lot of people got there,” he said. But, “It’s 40 years old” and needs some

work. He said Sens Inc. is a good company that put together a good proposal for the project. But, he acknowledged that the OPA may need to seek bids from other contractors before completing the work at the Beach Club. Collins thanked Steen for taking the initiative and suggested that the project be considered during the board’s fiscal year 2016-17 budget process. He said

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18 Ocean Pines PROGRESS

BOARD OF DIRECTORS

December 2015 - Early January 2016

Beach Club From Page 17 the net revenue at Beach Club is approximately $150,000 annually. Based on the contractor’s cost estimate, he said that means the bathroom renovation project is something the OPA should strongly consider. “This particular project pays for itself in approximately four years,” he said. Collins, during recent board debate over board guidance to the general manager in the preparation of the 2016-17 OPA budget, recommended the inclusion of Beach Club renovations in next year’s budget. Without the effort of Steen and Sens, Inc., to develop a cost estimate for the bathroom renovation, it’s doubtful that General Manager Bob Thompson would have been in any position to include Beach Club renovations in his draft budget for next year, even if he wanted to. There has been no indication that Thompson favors moving Beach Club renovation to the “front burner” of OPA capital improvements, or whether he favors renovation over a new building. In previous iterations of a capital improvement plan for the OPA, Country Club renovation or replacement has been treated as a priority over the Beach Club, but Collins – now with the added boost of a detailed estimate donated to the OPA by Steen and Sens, Inc. –has some leverage in his effort to make the

Chilli cook-off

The Democratic Women’s Club of Worcester County held a chili cook-off Nov. 14 at the Ocean Pines Community Center with lots of chili and fixin’s for a crowd of guests to choose from and vote for their favorite. Kay Hickman of Ocean Pines was declared winner. Shown from left: Em Hensch, Tom Wilson, Kathy Emmert, Diana Gross, Senator Jim Mathias, Women’s Club President Judy Butler, Irene Daly, Vicky Wallace, Jean Fry, Karen Bray, June Bray, and Harriet Batis. Beach Club an immediate priority. He also has Steen on his side in declaring that the Beach Club, with the exception of the lower level bathrooms, is in a good condition, needing renovation, not replacement. Since his appointment as general manager more than six years ago, Thompson has generally supported replacing aging amenities over renovations. The draft budget for 2016-17, including a proposed capital spending plan, will be the first clear indication whether Thompson supports the renovation approach to the Beach Club over replacement.

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Steen said renovating the bathrooms and the Beach Club became a “hot topic” several years ago but the OPA never moved forward with the project. Director Dave Stevens thanked Steen for providing the information and cost estimate for the Beach Club bathroom renovations. He said the issue did surface previously, right after the OPA built the new Community Center, and a request for proposals was circulated. Numerous responses to the RFP were received and the price tag for the work at that time was more than $300,000, but no action was ever taken to proceed with the project. Stevens said the board at that time decided it was too expensive. “So we didn’t do it,” he said, “But the problem didn’t go away, did it?” Steen started his comments to the board by thanking directors for supporting revisions to his plans for the Triple Crown Estates duplex development that will become part of Ocean Pines. He plans to develop a 92-acre property off Gum Point Road that abuts south Ocean Pines with 30 duplex units. By February 2016, Steen is hoping to break ground on Triple Crown Estates. “I’ll be able to move some dirt and go to work on it.” He’s planning to have the first duplex building ready for homeowners by May. The project has been in development for many years and was originally proposed as a 60-lot single family home community. While the units will still become part of the OPA, the developer opted to revise the plans to include the duplex units in response to changes in the real estate market since 2008 and to make the units more affordable for those who live and work in the area to own. He approached the board in May, seeking its support of the revised development plans, and the board agreed to do so. He said that support was the key to garnering approvals for the latest incarnation of the development from both the Worcester County Planning Commission and the County Commissioners. “If I hadn’t gotten your approval, it would not have happened, I can assure you,” Steen told the directors. “They listen to Ocean Pines” he said of the commissioners. The OPA directors in May wrote a

letter of support for the duplex version of the project because the characteristics of the development remain the same as originally proposed with the 60 single-family home design. By an agreement negotiated with the OPA as part of a failed effort to develop a Northern Worcester County YMCA in 2002, every home sale in Triple Crown Estates will generate a $6,500 payment to the Ocean Pines Association. That payment is compensation to the OPA for equivalent dwelling units reserved to Steen for water and wastewater treatment capacity. While technically the OPA does not “own” EDUs that are controlled by Worcester County, Steen nonetheless years ago decided to compensate the OPA for the loss of EDUs that the OPA could have employed for some future purpose. Following a public hearing last month that netted just a few questions about the project, the commissioners gave their unanimous endorsement to the project. In response to concerns from one nearby property owner, the commissioners conditioned the approval on the developer not using a gravel access road that intersects with Gum Point Road during the construction process. Steen consented to that condition, saying he didn’t plan to use that road during project development anyway. Additionally, he said no construction traffic will access the site via King Richard Road in Ocean Pines’ Sherwood Forrest section, Section 10, which was recently repaved after installation of a sewer force main linked the nearby casino and racetrack with the Ocean Pines wastewater collection system. Instead all construction traffic will reach the development site using a dirt road that has direct access to Route 589. That road will ultimately serve as an emergency exit from Triple Crown Estates. The inclusion of an emergency exit was a caveat to the endorsement of the OPA so that there will be another way for residents to leave Ocean Pines should it be necessary under major storm conditions. The emergency exit will be gated so it cannot be used at any other time. According to the consultants, the emergency exit road is bordered by farm ditches that will preclude vehicles from simply driving around the gate.

December 2015 - Early January 2016 Ocean Pines PROGRESS

20 Ocean Pines PROGRESS

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December 2015 - Early January 2016

By ROTA L. KNOTT Contributing Writer fter more than two months of bickering and an hour-long discussion during a Nov. 19 board meeting, Directors finally settled a dispute over the appointment of three board “liaisons” to Landscapes Unlimited, the company with which the Ocean Pines Association contracted to manage the golf course. The directors voted 4-3 to approve OPA President Pat Renaud’s appointment of himself, Bill Cordwell and Tom Terry as the three board liaisons to LU, with Cheryl Jacobs joining the trio in voting for themselves to serve. Directors Dave Stevens, who blasted Renaud for unilaterally making the appointments several months ago, Jack Collins and Tom Herrick voted in opposition. Renaud made the motion following another lengthy discussion about whether or not the appointments met the requirements of the OPA bylaws since he had not sought board consensus on them. Sitting silent through most of the debate, OPA General Manager Bob Thompson ultimately spoke up and suggested the board resolve the issue by taking a vote on the appointments. The vote on the motion resulted in the 4-3 approval. Stevens initially broached the issue of the legality of the appointments during the board’s October meeting, contending that the president was required to bring them before the board so members had an opportunity to object. But it

Board tangles over golf oversight, votes 4-3 to uphold Renaud appointments Minority directors object to non-golfers serving on working group that is meeting with Landscapes Unlimited executives on golf course management was Herrick who brought it up again in November. As part of the OPA’s contract with LU, up to three representatives can be appointed to serve as OPA liaisons and to sit in on monthly meetings with LU and Thompson as well as quarterly meetings with LU senior representatives. Herrick said three representatives had been in place already, having been appointed by Stevens while he was OPA president, and there was no need to change them. Stevens had appointed Collins and two Ocean Pines golf members as the liaisons. Herrick wanted to know if the OPA president has the power to make such appointments without bringing them before the board for consideration. “The answer to that I believe is yes,”

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Cordwell immediately chimed in. “The president appointed the three people last year. This president chose to appoint three other people.” Herrick then asked if those committee members represent the board or represent the president. “Why were the three people on there let go with no explanation why they were no longer on committee?” he asked. “That’s up to the president,” Cordwell responded. Herrick said that issue needed to be addressed, again asking if the three liaisons are board representatives or simply the president’s representatives to LU. Jacobs told Herrick he was actually posing two different questions. She said Herrick’s original question was whether or not Renaud had the authority to make the appointments. She said the answer is that he does have that authority just as Stevens did. Previously, Stevens said he had made his appointments last year but only after asking the directors in place at the time whether they had any objections to them. “If you have a problem with the people that he (Renaud) picked, that’s a separate issue,” Jacobs told Herrick. “Do you have something to point toward that says he does not have the authority?” Stevens said it’s not just an issue of whether or not the president has the right to make the appointments but

rather that they should be brought before the board so that directors have an opportunity to air any objections. He repeated his previous assertion that he did that as president and there were no objections to his appointments of golf liaisons last year. But with Renaud’s motion on the table and the opportunity to object to the new president’s appointments finally arising, Stevens said, “Now that we have a legal motion, I will say I object” to them. Stevens cited Renaud and Cordwell’s objections to hiring LU as the golf course management company as a reason they should not serve as liaisons to the firm. He said there was no reason that the liaisons he appointed couldn’t have continued to serve. “I think they’re the wrong people,” Stevens said of Renaud, Terry and Cordwell.” He said they are not “people who will not convey to the rest of the board a sense of what LU is doing and why.” Collins said the reason liaisons were included in the contract with LU was to “open up the process” so the board and property owners would know what is being done by the company at the golf course. He said the three members originally appointed were all golfers with extensive knowledge of the course. “They were summarily dismissed and other people were appointed. The appointees are not in the same genre,” Collins said, adding that Renaud and Terry are not golfers. Jacobs, also a non-golfer, said she thinks that it’s appropriate to have people who are non-golfers meeting with LU “because not all of this community cares as much about the golf course as some of you who are avid golfers.” In fact, there are about 150 households in Ocean Pines with annual golf memberships, out of more than 8400 lots in the community. Cordwell, who is a golf member, agreed with Jacobs, saying of LU “My concern is them being successful, which makes the community successful. My first responsibility is to the community.” To Page 22

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December 2015 - Early January 2016 Ocean Pines PROGRESS

22 Ocean Pines PROGRESS

Cordwell defends himself against ‘attack on integrity’ Collins questions Cordwell for saying he’s not a board liaison to Landscapes Unlimited; Stevens calls out Cordwell for claim that he has more experience than Collins or Stevens on golf course issues By ROTA L. KNOTT Contributing Writer irector Bill Cordwell went on the offensive during a Nov. 19 Ocean Pines Association board meeting to combat what he perceived as an attack on his integrity. Cordwell is one of three board members appointed to serve as board liaisons to the new golf course management company, but other directors questioned that appointment because of his previous opposition to hiring Landscapes Unlimited for the job. “Now I believe my integrity was questioned in the paper because I was one of the ones appointed this year. What I believe this president did was actually put somebody on the board, me, as a member of the golfing community, that’s over there two, three days, four days a week

GOLF

December 2015 - Early January 2016

that knows what’s going on over there,” Cordwell said, regarding his appointment as a liaison to LU. OPA President Pat Renaud appointed himself, Bill Cordwell Cordwell and Director Tom Terry to act as the board’s intermediaries with the golf management company this past fall. But in October former OPA President Dave Stevens took issue with the appointments, alleging that they were made improperTo Page 24

Golf oversight From Page 20 Herrick, however, said the three liaisons are supposed to help the golf management company succeed. He said people who are familiar with golf can to help accomplish those goals, but he doesn’t see how those who are not familiar with golf can help LU be successful in managing the golf course. After allowing other directors to debate the issue, Renaud ultimately admitted a mistake in making the appointments. “If you want me to admit that I should have brought it to the board when I changed the three representatives, I’ll admit it. I won’t deny it,” he said. But then he said that Stevens admitted to doing the same thing. “No I didn’t,” Stevens said. “Don’t mince words,” Renaud told him. “Don’t change my words,” Stevens responded. “You find it in the minutes. Find that we voted on it,” Renaud said of Steven’s committee appointments. “I didn’t say there was a motion. I said I brought it to the board’s attention,” Stevens told him. Renaud then turned to Herrick, who brought up the issue, and asked what he wanted the board to do. Herrick said he wanted the board to discuss “Does any one particular board member have to right to do something

unilaterally on their own without board approval?” Jacobs again said, “That’s not what you asked.” She reminded him that his original question was if the president has the authority to make appointments. “He (Renaud) answered. End of discussion.” “Where do you see him getting the authority?” Herrick asked. Jacobs responded by saying that no OPA document says the president doesn’t have that power “and so he (Renaud) has taken that position.” Stevens said that OPA bylaws do address appointments to committee and advisory bodies, clearly stating that they are made by the president with consent of board of directors. “This is not a committee,” Jacobs said, adding it’s three board representatives to LU based on contract language. “That’s even worse. If they’re board representatives then the board has the right the absolute right to know what they’re doing,” Stevens said. “Based on what?” Jacobs asked. Stevens said based on the bylaws. Collins added “or even common courtesy.” In a subsequent email response to a Progress follow-up question, Jacobs reiterated that she does not believe the bylaws apply to the president’s appointment powers in the instance of a non-advisory committee made up of board members. [See article elsewhere in this edition of the Progress for details.]

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From Page 22 ly and should have been brought to the board for consensus or objection. He said that’s what he did when he was president and appointed three liaisons to then golf management company Billy Casper Golf. He added that there was no reason to replace the people he appointed with new liaisons. At the November board meeting, Director Tom Herrick again broached the issue, asking if the president has the authority to make such appointments. Cordwell was the first to speak up in defense of Renaud’s actions. He said the previous liaisons never even bothered to ask for his input on the golf operations, despite the fact that he said he has the most experience with the amenity of anyone on the board. “Up until this point, last year’s group still hasn’t asked me one question about what was going on over there, has never asked me opinion one or had me involved at all,” he said. Instead, he said he had to “take the unusual step” of getting up from his board seat and approaching the board as a private property owner instead during the public comments segment of a board meeting to state his opinions on the golf course. “The other people on that committee, I don’t believe know a whole lot about what’s going on over there,” he said of the three previous liaisons. Included among them was Bob Kessler, known

for keeping detailed golf membership statistics and financial data over many years, and Jack Collins, an OPA director who, like Cordwell, is a long-time Ocean Pines golf club member. Somewhat ironically, Cordwell appeared to be impugning the expertise of previous liaisons in much the way he seemed to be suggesting his own expertise and integrity had been impugned. Cordwell added that this year the president appointed other board members – Renaud and Terry - to serve as liaisons who, while they may not be golfers, do have previous business experience. He said he thinks that is a good approach. He said his appointment was singled out for criticism because he voted against hiring LU to manage the OPA’s golf course. “Well so what?” he said, acknowledging that he was supportive of continuing to work with Casper instead of retaining LU. The majority of board members voted to contract with LU, he said, so now that it is the company in charge of managing the golf course, he wants to see LU succeed. “They’re our management company now and we’re gonna help them succeed. If they can’t do it then that’s on them, but we’re gonna help them do that,” Cordwell said. The trio of liaisons has provided feedback to LU regarding its draft business and membership development plans, he

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Collins said a lot of time, effort, work said. “We had a lot a lot of issues that need to be discussed,” he said, adding and thought went into the decision-makthat the previous committee members ing process when it came to the board’s wouldn’t have been right for the job. action to change golf management com“And we didn’t need a group of cheer- panies earlier this year. “Bill, before you attacked me I was leaders saying ‘you guys are doing great.’ They had issues that needed to going to compliment you on your position in being pro-active in allowing this be discussed.” According to Cordwell, the commit- particular manager to be successful. tee spent three hours meeting with LU’s And I think that’s what we’re all about,” representatives to review plans. He said he said. Still, he said, he was unclear just who he believes they “had a good discussion with these folks. They had some the liaisons were representing on the problems. We’re gonna help them work committee that is meeting with LU. “There are a couple things that I through it.” He said that golf management in gen- want to get clear in my head,” he said. eral and committee of board liaisons in “You are the board liaison to LU and any particular has become very contentious meetings they have?’ he asked Cordwell. Cordwell said he was not. Accordand didn’t need to be. “I want that course to succeed and if ing to him, OPA General Manager Bob they’re the management company that Thompson is the board’s liaison to LU. makes its success good for us, good for Cordwell made no attempt to define the everybody, good for the community,” role of himself, Terry and Renaud in relation to LU. Later, Terry did, saying Cordwell said. While Cordwell was speaking, Direc- that the three OPA liaisons were defined tor Jack Collins laughed, perhaps sug- in the LU contract. Nonetheless, the relationships seem gesting that he was not convinced by much of what his colleague had to say murky at best. Cordwell’s declaration of Thompson’s about the work of the new golf liaisons. Cordwell’s immediate response was preeminent role was a direct contradicto call him out on it. “Can I help you tion of what Thompson said during the Mr. Collins? Because you’re part of this Oct. 29 board meeting, when he referred thing here. Not one time did you both to to Cordwell as the board’s liaison to LU. ask me what I thought about this whole Minutes of the Oct. 29 meeting had been process. You didn’t want me there” when approved earlier during the Nov. 19 Collins served as the board’s official golf meeting, with neither Cordwell nor any other director questioning its accuracy. liaison before the oversight working 1508 Complete Home Improvement Handout NEW with our type_Layout 1 2/3/15 1:22 PM Page 1 group was revamped by Renaud. q

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Cordwell From Page 24 During the Oct. 29 meeting, Thompson said he had not provided directors with copies of documents provided to the liaisons by LU because that he wasn’t the liaison, Cordwell was. Collins made it abundantly clear that he was confused by the apparent contradiction between Cordwell and Thompson’s contrasting declarations on who is the board’s official golf liaison. “So in other words, you have no function or role vis-a-vis Landscapes Unlimited and the board of directors?” Collins queried Cordwell again. He responded, “That’s correct.” “You have none?” a perplexed Collins again pushed Cordwell. Then Collins addressed Thompson. “Since you (Cordwell) are not involved, I’ll ask Bob.” Collins asked Thompson about the timing of LU’s proposed business plan and membership development plan and when the full board will be able to see and comment on the final document. Collins was not the only director to find fault with the new golf working group’s activities to date. Dave Stevens took issue with Cordwell’s statement that Cordwell has the most experience of board members when it comes to the golf course. He said he has been an Ocean Pines

golf course member since 1978, well before Cordwell arrived on the scene to play golf and serve on the Board of Directors. Cordwell didn’t comment, but Renaud did. “We did the job. We went and talked to the people. We don’t have any final vote,” Renaud said regarding LU’s plans. He said other board members could have brought any issue they wanted discussed with LU to the attention of the liaisons. “You could have brought anything into that you wanted to,” he said. Stevens asked “how?” when the other board members were not invited to participate in the meetings with LU. Renaud then asked why it would be necessary to have the whole board attend those meetings when there are representatives appointed to serve on their behalf. In rebuttal, Collins pointed out that Cordwell had just said he doesn’t serve as a liaison for his fellow directors, a role apparently reserved for Thompson. Thompson neither confirmed nor denied his role as the board’s liaison. “I’m not making any comment on policy,” he said. Collins then said, “You understand the dilemma I have. I thought I had a board liaison. I don’t have one. I have to deal directly with you in order to develop information as it unfolds,” he told

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Members of the Pine’eer Craft Club participated in the Christmas Celebration sponsored by Ocean Pines Association by decorating a tree in front of their Craft and Gift Shop in White Horse Park. The tree was decorated in a red and white theme with pine cones and flowers attached to red ribbons and wooden spoons depicting a Santa face. Pictured are, left to right, Margaret Lamphier, Linda Brindley, Luz Castillo, Nancy Walsh, and Janet Rosensteel. Thompson. “So I’m not attacking you, Bob. Don’t get me wrong. I’m trying to develop the information that I need to know as to what’s going on as far as this contract is concerned and as far as the relationship between Landscapes Unlimited and this organization.” Collins and other directors have received copies of a draft business plan submitted to Thompson and the three board liaisons, but Collins told the Progress that the document as initially distributed did not include a section on rebuilding golf membership.

Thompson told the Progress recently that the membership section was being tweaked by LU in consultation with the golf working group. As for the full business plan, Thompson told the board during the Nov. 19 meeting that a final draft would be included as part of his draft 2016-17 OPA budget in early January. All seven directors will have the opportunity to review and consider the business plan, including ideas to rebuild membership, during the budget review process, he said.

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GOLF

December 2015 - Early January 2016

Some directors claim golf liaisons exclude them from oversight role

By ROTA L. KNOTT Contributing Writer rritated that they didn’t receive copies of a draft business plan for golf course operations and membership until weeks after it was submitted to the Ocean Pines Association, some members of the Board of Directors say they are being intentionally left out of discussions with Landscapes Unlimited, the new golf management firm. During what began as a discussion about the appointment of board liaisons to LU and turned into a lengthy debate about just who those liaisons represent and what their role is in relation to LU, Director Jack Collins asked when the draft business plan was received by the OPA. He pointed out that it was dated Sept. 23, 2015. OPA General Manager Bob Thompson said he couldn’t pinpoint an exact date. “You’re asking me something I’m not going to be able to answer,” he told Collins, but added that the planning document was received sometime in that general timeframe of late September or early October. “I got this on Nov. 2, which is about 40 days later,” Collins complained. “And I’m wondering why.” He asked why the full board was not provided with copies of the draft business plan as soon as it was received by the OPA and why the board wouldn’t be involved in the “information gathering process” and meetings with LU regarding the plan. “I can’t answer you directly,” Thomp-

Dave Stevens

Tom Terry

son said. He said there have been several versions of documents submitted to the OPA. He said LU provided multiple documents to him as part of the budget preparation process. There was a membership development program or plan that LU had crafted for consideration as well. “I just don’t want to give you a wrong answer,” he told Collins. Thompson then said that LU first submitted a membership development plan. The business plan was the second document received buy the OPA but it was also inclusive of the membership development plan, which is a required document for the budgetary process. He said there are dates built into the contract with LU regarding delivery of required documents. “So I have all the documents that were delivered to you by Landscapes Unlimited. Or are there other documents?” Collins asked. Thompson responded that if he has the draft business plan with the included membership plan then he has what was provided. “This is final document? This is what’s going to happen?” Collins asked. “No sir,” Thompson said, adding that LU met the requirement to have a draft

plan to the OPA by Nov. 1. That document was reviewed by the committee of board, staff and LU representatives. “That was a draft document for review, any comment, concern, those type things. At a subsequent meeting we did that. They went back and are making changes to that,” he said of LU. He said he had just received a new draft of the plan but had not yet had an opportunity to review it. Collins asked if the board will have the opportunity to read the original draft and then compare it to the revised version. He also wanted to know when it would be available for public scrutiny. Thompson said once the document is completed the full board will receive the final version, adding that while it is in draft format it is not public because it’s still a working document. Once it is finalize it will be made public, he said. Under tense questioning from Collins, Director Bill Cordwell, one of three board members appointed by OPA president as liaisons to LU, said that did not serve as a representative or liaison for the full board to LU. Cordwell said the general manager is the liaison to LU. So Collins turned his questions to Thompson. “I’m willing to work under those guidelines. I don’t think they’re the best guidelines by the way but I’m willing to work under those guidelines because I don’t have a (board) liaison to this particular management company. You’re it,” he told Thompson. The general manager simply responded that he isn’t going to engage in policy issues such as board appointments. “When do we get to ask a question about this with LU?” Director Dave Stevens wanted to know. “This isn’t just execution or operations. This is policy,”

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he said of the proposed business plan. “When do we get to find out what’s behind what they’re writing down in this document?” Cordwell then contradicted his earlier statement that he wasn’t a board representative and said “that’s what we did at this meeting. The three board representatives.” “No. No. When does the entire board get to hear it?” Stevens asked again. Director Tom Terry, another liaison to LU, said it will be presented to the board as part of the fiscal year 2017 budget process. “When it comes to the budgetary process this business plan is no different than any other business plan which is put into overall budget and delivered to board by general manager,” he said. “That is when the final non draft of business plan is due.” As for the committee’s meeting with LU, Terry said it was an “oversight meeting” at which they reviewed the document and provided “what I believe to be some cogent guidance on some of the things they were talking about.” He said it was a positive meeting and that the committee did not in any way indicate that its input was a vote of the board. “Quite frankly some of the objectives that were in that draft document didn’t live up to what was the understanding of what we thought we were going to get,” Terry said. Stevens asked, “Who’s understanding?” “The board’s understanding,” Terry replied. “Not the board’s understanding,” Stevens said. That was the moment when the discussion turned vitriolic. “Ok you want me to put it out there pal. I’ll put it out there. No, I’ve had enough,” Terry shouted at Stevens. As an example of areas where LU needed guidance, Terry cited an apparent unaggressive approach to boosting golf membership by only ten members next year. “The advice was provided that you might want to relook at those numbers. That’s what I’m talking about. It’s advice and help. The implication that we somehow voted on anything, we didn’t.” Terry tried to continue, and Stevens tried to cut him off. “The final document comes too… don’t interrupt me. I didn’t interrupt you,” Terry said. “The draft documents have been provided to you. The final document will be given along with the overall budget.” But Stevens argued that’s not what the golf management contract says should be provided. He read contract language that says the plan is supposed to include goals and milestones that serve as the basis for “monthly reporting to OPA general member and the three designated OPA board representatives.” Stevens said those representatives are in place and must report back to q

Stevens, Terry descend into heated argument over golf course business plan

GOLF

December 2015 - Early January 2016Ocean Pines PROGRESS

Board votes 5-2 for open meeting with LU execs

Golf liaisons From Page 26 board and answer any questions from other directors. That, he said, hasn’t happened. But Stevens insisted that it is not the responsibility of those liaisons to negotiate or discuss with LU what the business plan should or should not contain. Terry said during the budget process when the business plan will officially be reviewed, any board member can challenge any of the assumptions included within the document. Stevens said the contract says the board of directors is entitled to all documents that are provided. He said the implication is that directors are entitled to receive them in a timely manner, to be able to read them and ask questions. “Nothing else makes any sense,” he said. Stevens said the trio of representatives has been excluding part of the board from the decision making process. Terry said that’s not true. “If you have questions submit them,” he saud, “Are you saying as a board member we can have dialogue with LU? Because I’ve been told I can’t do that,” Collins asked. Stevens then wanted to know “Can we attend meetings?” Terry said that defeats the point of having representatives if the full board attends the meetings with LU. “I’ve been told I don’t have a representative,” Collins said referring to Cordwell’s comment about not be a liaison for the full board. Ultimately the board voted 5-2 to have a public meeting with LU to discuss the status of golf operations and planning at the course.

Stevens wins support from Renaud and Terry for open session; initial draft of membership plans called for an increase of only ten members Directors Bill Cordwell and Cheryl Jacobs opposed. Feeling left out of discussions being held between Renaud and two other board members, Cordwell and Terry, appointed to serve as liaisons to LU and the golf management company’s representatives, Stevens said he believes the full board would benefit greatly by meeting with LU to discuss its business plan, which is a contract requirement. Renaud initially took issue with Stevens’ accusation that information has not been shared by the LU board liaisons with other directors in a timely fashion. “We did the job. We went and talked to the people. We don’t have any final vote,” he said of discussions with the golf management company’s executives about the proposed business plan. “You could have brought anything into that you wanted to,” he told Stevens. “How?” Stevens asked, saying that there was no opportunity to do so because the liaisons didn’t ask for input from their fellow directors and they were not invited to attend a recent quarterly meeting with LU. Renaud wanted to know why it is necessary to have a meeting of the full board with LU when there are representatives appointed to do so. Collins, who gave a second to Stevens’ motion, responded because the objective of having liaisons to LU was to “open up the process” so the board and the community would know what LU plans to do at the golf course. Renaud ultimately voted in favor of the motion but said the board liaisons identified about 20 areas included in the draft business that they felt needed revisions, including an initial membership plan that only hopes to boost participation at the golf club by ten new members. He said he would like the opportunity to distribute a report summarizing that meeting to all directors prior to a meeting with LU. Cordwell argued that there is no need for a meeting of the full board with LU because the trio of liaisons is in place to report back to their peers. But Stevens said that is “not at all the same thing.” He said he doesn’t know what questions that committee asked of LU. They may not have been the same questions he has regarding the business plan. He told Renaud all board members should have the opportunity to meet and ask questions of LU’s representatives “and not see a subsequent proposal that was changed because of your questions.” Terry said that he believes every board member has a right to request a

meeting to discuss and go over draft documents if they want to do that. “I have no objection to that,” he said and asked Renaud to submit his summary of the previous meeting with LU to directors as soon as possible. He said he believes that needs to be circulated before the board meets with LU so everyone understands where they are in the process of developing the business plan, which will be the basis for next fiscal year’s golf budget. Jacobs argued that those discussions should take place in closed session because they are contractual in nature. Collins responded that it is not a con-

tractual matter and any meeting should be open to the public. Stevens agreed and said they are issues of “policy and understanding” not specific to the golf management contract. OPA General Manager Bob Thompson reminded the board that the business plan will be submitted by LU along with their budget for the golf to support their budget numbers for fiscal year 2017. During the budget process the board will spend several days reviewing the golf course spending plan and that is typically when representatives from LU would be present to answer questions from directors. He said those meetings are open to the public. “So you would have an audience during the budget process,” he said.

Jacobs wonders whether lower expenses have affected Pines’ golf course quality Collins defends Landscapes Unlimited’s personnel management since take-over; Thompson says LU manages chemical expenses differently than previous manager By ROTA L. KNOTT Contributing Writer ower than anticipated expenditures at the Ocean Pines golf course have prompted the Ocean Pines Association to take a closer look at how Landscapes Unlimited is managing the amenity’s finances. Cuts in personal expenses over the summer were the results of running the facility with limited staff, according to OPA General Manager Bob Thompson. During his Nov. 19 general manager’s report to the Board of Directors, Thompson said the golf course closed out the month of October below budget. Net revenues were $35,846 less than

budgeted but expenses were also $9,327 less than budgeted for the month. Overall the golf course finished the month $26,519 behind budget projections. However, a year-over-year comparison of financials reveals the golf course is $9,751 ahead of last year for the same period. “Golf revenues were slightly behind for the month,” Thompson said. The first weekend in October was essentially lost to play because of inclement weather, he said. Still, he said revenue continues to be off a little, but at the same time expenses are down as well. The reduction in expenses “has been a trait” since LU q

By ROTA L. KNOTT Contributing Writer epresentatives from Landscapes Unlimited, the firm contracted to manage the Ocean Pines Association’s golf course, may be summoned to a public meeting shortly with the Board of Directors to discuss their business plan. Following a lengthy discussion about board liaisons to LU and the status of the company’s plans for improve golf operations and membership, Director Dave Stevens offered a motion during a Nov. 19 board meeting to request a meeting with LU. In the motion he said that at the earliest possible convenience the OPA general manager should call a special meeting of the entire board and LU to discuss the company’s draft business plan. Of particular interest is the company’s proposal to boost sagging annual membership in the Ocean Pines golf course amenity. General Manager Bob Thompson told the directors that he just received an updated version of the company’s proposal. The board approved Stevens’ motion in a 5-2 vote, with Stevens and Directors Jack Collins, Tom Herrick, Tom Terry, OPA President Pat Renaud in favor and

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GOLF

December 2015 - Early January 2016

Golf expenses From Page 27

assumed management of the golf course. Director Cheryl Jacobs asked why expenses are below budget at the golf course. She wanted to know if LU is simply saving money to the detriment of the amenity. She asked if they do not have sufficient personnel or are not performing course maintenance the way they should. “I expressed concern about that and we’ve talked about that through the summer months,” Thompson said. “During the summer I had some concerns because the actual labor costs were way down.” Director Jack Collins offered to “educate” Jacobs about the golf course’s personnel situation. He said that when LU came on board as the course manager, there was existing staff at the amenity who had been there for some time. The salaries of those employees reflected pay increases that were garnered throughout their employment. When LU assumed control of the golf course, two of those long-time employees resigned. “It took them some time to replace those two individuals, which means they had less salary expense during that period, combined with the fact that they would hire somebody with a lower rate of expense than the two people that left,” Collins said as justification for the drop in personnel costs. He asked Thompson if he would agree

with that assessment, but the general manager simply responded with a terse “no comment.” “It’s just a point of information. That’s all,” Collins said. Thompson said things seem to be going well with golf course maintenance, seeming to allay concerns that golf course quality has been adversely affected. “I have not seen a slide in chemical application or care of the course, the maintenance side,” he said. The reason some of LU’s expenses are below for the summer months for maintenance reflects an “accounting differential,” Thompson said, explaining that LU applies expenses within the budget differently from the way that Billy Casper Golf, the previous manager, did. He said LU expenses an item purchased on the maintenance side, such as chemicals for application on the golf course, during the month it’s actually used, whereas the previous vendor expensed those items at the time they were purchased. So if items were purchased in bulk at certain times of year, then the expense would hit the budget in that month. While LU may still buy in bulk, the company doesn’t book the expense until the item is actually used, Thompson said. “Neither way is a bad way to do it. As a matter of fact, this way is a little easier because you can actually look at the numbers tightly against what the month expenses were,” Thompson said of LU’s method of expensing purchases.

Cover story From Page 1

The OPA working group cited 143 memberships in March of 2015 but only 116 memberships as of September of this year, a loss of 27, excluding lifetime members that recently have dropped below 20. According to a written summary of the meeting, OPA working group members challenged LU’s draft membership plan that showed an increase of only ten new members in 2016-17, which would not have rebuilt the membership to where it was before the June 1 transfer of operational authority from BCG to LU. “LU agreed they needed to re-look at the projected growth objectives in their Membership Plan,” the summary said. The OPA team told LU executives at the meeting that there are “loyal members” of the Ocean Pines golf club “who are not saying that they could likely be leaving for other courses in the area,” which Renaud told the Progress in a brief interview in early December could reflect continuing opposition among some golfers to the change in management earlier this year. According to the meeting summary, OPA representatives asked about any actions LU has taken to identify former golf members who had given up their Ocean Pines memberships “and how many have been contacted to entice them to return.”

The summary indicated that LU executives said that had identified more than 300 previous members but that there been no effort to contact them. When OPA working group members suggested revising the target membership growth to 32, or about 10 percent of the lost memberships over the years, LU executives “agreed to review the possibility of revising the target,” while conceding that they don’t have a good handle on how many individuals in the 300 memberships lost over the years are still available to be contacted. Elsewhere in the meeting summary, three components of a membership rebuilding plan were listed. They included an easier membership registration process, a bundling of golf and aquatics memberships, and a program of planning and executing member events. The easier membership registration apparently involves allowing would-be members to sign up at the golf pro shop. The meeting summary said that Thompson recommended that “the process could be enhanced by allowing the LU team to gather the appropriate documentation to include a completed application and the acceptance of a check for fees at the golf course.” LU personnel then would be required to bring this information to OPA Administration building no later than the next business day for processing of the membership and actual depositing of To Page 30

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Cover story From Page 28

the check. But new members would still be required to come to administration building to have his/her picture taken for a membership card, so this proposal apparently falls well short of a one-stop shopping scenario. In another component of LU’s membership plan that did not go over well with OPA working group members, LU executives proposed a bundling of golf and aquatics memberships as a way of boosting membership in both. According to the meeting summary, “after discussions of pros and cons it was determined this strategy would probably not be supported and was not a good fit for the OPA community, which does not generally support one amenity’s revenues being used to offset another amenity’s costs unless there is a direct synergy.” A third component of the LU strategy, the planning and managing of important member events, was “understood and generally supported” by the OPA working group, which qualified that support by advising “it would take some work by the LU team to have OPA membership buy in to the change.” [See story at right for coverage of other issues addressed in the meeting.]

OPA working group, LU officials butt heads in quarterly meeting Issues range from outside play to mold concerns at the Country Club By TOM STAUSS Publisher hile much of a recent quarterly oversight meeting between the Ocean Pines Association’s golf working group and Landscapes Unlimited executives focused on the company’s plans to resuscitate Ocean Pines’ sagging golf membership rolls, other issues surfaced as well, ranging from complaints about outside play to mold concerns at the Country Club. LU Regional Manager Scott Nissley’s demeanor in dealing with Ocean Pines golf members also found its way into the discussion, with working group members gently suggesting some attitude adjustment. A written summary of the meeting prepared by OPA President Pat Renaud, and tweaked by working group members Tom Terry and Bill Cordwell, both OPA directors, and General Manager Bob Thompson, detailed those concerns. According to the summary, the work-

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ing group asked for clarification of what LU executives, in a recently submitted business plan for the golf course amenity, called the golf general manager/head golf professional management model. Essentially the model establishes the local golf pro, in this case John Malinowski, as the head of the LU’s Ocean Pines organization, with course superintendent Rusty McClendon reporting to him. Under Billy Casper Golf management, the local superintendent had reported to a regional BCG executive. The OPA group endorsed this approach because it establishes a clear operational line of authority, in which Malinowski reports to Thompson about day-to-day operations at the golf course and other concerns. The working group also made clear to LU executives that the OPA prefers “quality product” over cost containment. “We all agreed the standards could be modified slightly to maintain the product at a lower cost but shared the concern that cost savings alone are not the answer,” the summary says. The working group and LU executives also addressed a contentious issue over whether LU has been keeping commitments to certain outside groups made by Billy Casper Golf, the previous manager, which has generated complaints among golf members about tee time availability. The OPA representatives wanted to know whether contracts with these groups precluded LU from changing tee times to accommodate golf members. According to the meeting summary, “LU said it never determined if there were contracts but would be using contracts in the future to better manage

these outside groups.” Working group members told LU executives “that blaming BCG, which has been done in numerous Golf Member Council meetings on various issues, was not productive in that there were and are many OPA golf members who did support the change” in management from BCG to LU. “We all agreed to move forward with LU as our team and manage for success while leaving BCG out of the discussions,” the summary says. Another area of contention involved a recent incident in which LU told a local golf group that it could not accommodate them and book their events on the upper level of the Country Club, because the second floor is under the control of the OPA and particularly the Ocean Pines Yacht Club. Working group members cited the management contract which makes clear that LU is responsible for the entire Country Club building, and not just the cleaning of it and paying for utilities. According to the summary, LU was advised that the Yacht Club would notify them “immediately upon a potential booking of the upstairs of the Country Club, to ensure availability. “ The issue of mold in the Country Club also surfaced during the meeting, involving recent comments by LU’s regional manager, Scott Nissley, that “some of their employees seemed to always be sick and it might be from the building”. The OPA group asked if LU was requesting “something to be done in this regard” by the OPA. According to the summary, LU asked for more time to review this situation and “they would get back to Bob Thompson” about possible To Page 32

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GOLF

December 2015 - Early January 2016

Working group From Page 30 remedies. Hours at the Tern Grille were discussed at the meeting, with OPA representatives suggesting that the 9 a.m. to 4 p.m. schedule makes it more difficult to serve golfers with earlier and later tee times. The summary indicates that LU will “look into” the possibility of adjusting the hours as a way of increasing revenues at the Grill. The OPA team complained about

less than timely response to regulatory items identified in a recent visit to the Ocean Pines Country Club by LU’s national food and beverage manager. The summary indicates that the OPA “made it very clear we expected much more urgent response from LU in matters of regulatory compliance.” Part of the meeting involved discussion of financial performance, focusing on the “continued decline in revenues punctuated by the continual decline in membership.” All agreed that “steps need to be tak-

en to reduce these trends,” the summary says. Meeting participants also dealt with maintenance and cleanliness of the Country Club, with the summary indicating that there have been some divisions between the OPA and LU over the timeliness of requested repairs, which are the responsibility of the OPA, and cleaning, which is LU’s responsibility under the contract. The OPA working group “referenced many comments being made by LU during Golf Council meetings where

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lack of response from the OPA for repairs has been reported” to OPA golf members. “The LU Executive team agreed the critical issues have already been addressed,” the summary indicates, with a few minor items remaining OPA representatives then inquired as to the status of a planned “deep cleaning” of the Country Club, with LU officials informing the OPA that it was continuing to obtain bids for the work. Meeting participants also discussed LU’s practice of double bookings to manage tee times, which the OPA representatives said was not “customer-centric,” according to the summary. LU’s response was that double booking allows for better management of tee sheets to accommodate last-minute cancellations and no-shows, and that the “is being successfully deployed at the majority of their other courses with great success.” The OPA working group also advised Nissley, the regional manager, that he need to have a “softer presence” in his meetings with OPA golf members, and that he needed “to remember that the OPA course is not populated with corporate memberships” like other courses managed by LU. He was also told that the OPA golf members “have a very personal sense of ownership” of the golf course.

Gift shop celebrates first anniversary

he Dazzle Gift shop, located in the Manklin Station shopping center in Ocean Pines, just inside the South Gate, is celebrating its one-year anniversary throughout the month of December. Owner Joyce Landsman opened the gift shop as a way of providing affordable and useful gifts and gift baskets and holiday decor “so that people in the community don’t have to travel to get things.” She said that her shop tries hard “to give people variety, quality and good service.” The shop, which hosted an anniversary ribbon-cutting on Dec. 4 with the Ocean Pines Chamber of Commerce, conaints a variety of items including accessories, jewlery, gourmet foods and dips, baby items, and much more Customers are encouraged to select whichever items they like and combine them in a gift basket. “We do gift baskets to order, so nothing is really premade,” she said. “We will do whatever they want to put in, at any price they want, and the gift wrapping is complimentary.” The gift-wrapping is often considered a gift in itself judging by the reaction of her many happy customers.

CAPTAIN’S COVE

December 2015 - Early January 2016Ocean Pines PROGRESS

Aqua transaction also affected; Hearn says ‘no one present’ in clerk’s office to accept property transfer documents By TOM STAUSS Publisher omething peculiar seems to be happening in Accomack County, particularly in County Treasurer Dana Bundick’s office and the clerk’s office in Accomac, the county seat, where deed transfers are normally recorded. It’s the rare county in America that isn’t eager to accept tax payments from property owners, but for some reason that seems not to be case in the treasurer’s office of Accomack County. Bundick has been engaged in a protracted dispute with the Captain’s Cove developer, CCG Note, LLC., over property valuations on which property taxes are levied, so perhaps there is some reason related to that which could explain why she is not cashing developer checks for property taxes owed by the developer. The logic could be that to cash a check is to admit that the amount paid

indicates that the tax liability has been satisfied in full. That, apparently, the county treasurer has so far been unwilling to concede. But according to Tim Hearn, the Captain Cove property association’s president, there is no conceivable reason why the county treasurer is not depositing two checks totaling roughly $37,000 from the Cove POA for property taxes this year. “She’s not giving us any answers. She’s not responding to us or our lawyers, giving us any explanation at all for why she’s not depositing our checks,” Hearn said. He said the Cove POA, which originally had sided with the developer in attempting to reduce assessed valuations on unimproved lots in Captain’s Cove from the traditional $4,000 to closer to $1,000, has decided to pay property taxes on Cove-owned lots on the county’s “full evaluation.”

Hearn said the Cove POA changed its stance earlier this year in reaction to criticism from some within the Cove year-round residential population that the Cove, in disputing the higher lot valuation and declining to pay taxes on POA-owned lots based on that higher valuation, was in effect a tax deadbeat, costing everyone else in the county more for government services as a result. While Hearn said that he didn’t agree with that viewpoint from a “business standpoint,” he said the Cove board took notice of community sentiment and decided to pay on the higher valuations, at least until such time as the county acknowledges that the lower $1,000 valuations on many unimproved lots in Captain’s Cove, especially in current unbuildable areas without roads or utilities, is closer to true market value. Indeed, a case could be made that, until such time as roads and utilities are installed in these undeveloped ar-

eas, the resale value of many so-called unbuildable lots is effectively zero. The Cove POA has embarked on a road construction program in areas that lack them, but completing them could take up to five years or so according to recent estimates. CCG Note, unlike the Cove POA, is continuing to battle the Accomack County treasurer’s office over lot valuations, Hearn said, noting that the state assessor’s office has backed the CCG Note argument for lower assessments. The developer, too, has sent checks to the county that have gone undeposited, well into the hundreds of thousands of dollars, Hearn said. Those payments have been based on the lower assessed valuations that the developer contends is more realistic given market conditions. So far, he said, Bundick has not budged from her position that unimproved lots in undeveloped parts of the Cove are worth $4,000. Should she finally capitulate to market conditions as they are, it could result in lower assessed valuations throughout Captain’s Cove, Hearn said. Property owners, especially those who own unimproved property, would see a decline in property taxes they owe the county. While many owners of unimproved property in the Cove pay ridiculously low property taxes around $24 a year, q

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December 2015 - Early January 2016

County treasurer From Page 33 reduced assessed valuations would reduce it even further, perhaps by as much as 75 percent. Hearn also said the county is refusing to accept payment for various taxes and fees associated with the pending sale of Captain’s Cove Utility Co. assets to Aqua Virginia, which he said is related to the office of the county clerk’s apparent unwillingness to accept any of the documentation to facilitate the property transfers.

He said the county treasurer’s office is located in the same office as the county clerk’s. Hearn said the county would collect roughly $200,000 from Aqua in a combination of recordation taxes, transfers fees and property taxes if it simply would accept new property deeds for recordation in the county courthouse. “No one’s there at the clerk’s office” to accept the deed transfer documents, Hearn said, calling the situation bizarre and something he has never encountered before in his dealings with county governments.

He noted that Amazon is purchasing about a 1000 acres in the county for a solar plant, and he wondered if the county was refusing to record documents associated with that sale, along with accepting the sizable fees and taxes that are part of that. “Accomack County really could be flush if somebody would cash the checks,” Hearn said. Winter hours – Pool hours at the Marina Club’s indoor swimming pool have been changed for the winter. It’s open Monday 8 a.m. to noon, Wednesdays through Fridays 8 a.m. to

noon and 4 to 8 p.m., Saturdays and Sunday 8 a.m. to 8 p.m. The pool is closed on Tuesdays. A receptionist will be on hand until 7 p.m. on each of the days the pool is open until 8 p.m. The library hours are the same as for the receptionist. Association policy is for a receptionist to be on hand when the pool is open for use. The Marine Club restaurant’s hours are Mondays 5 to 9 p.m., closed Tuesdays and Wednesdays, Thursdays 5 to 9 p.m., Fridays 4 to 11 p.m., Saturdays noon to 11 p.m. and Sundays noon to 9 p.m.

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OPINION

December 2015 - Early January 2016Ocean Pines PROGRESS

COMMENTARY

Time to change how the OPA pays for golf? A version of this commentary was published in the Progress during the summer of 2013, with particular attention on golf and aquatics. Since then, aquatics operations have improved, with losses now expected to fall below $100,000 for the current fiscal year. Golf, however, is projected to lose $150,000 for the year, excluding depreciation. Golf-related funded depreciation will cost property owners in the neighborhood of $450,000 this year, meaning the Ocean Pines golf course will cost property owners somewhere close to $600,000 in subsidies this year if estimates hold.

iven plummeting amenity memberships and revenues, it may be time for the Ocean Pines Association to take a hard look at the way it finances amenity operations, particularly golf. Aquatics is on a glide path to financial health and probably doesn’t need the light shock therapy herein suggested for golf. There may be a way to cure golf deficits and required subsidies once and for all, while giving recreationminded members of the association, or at least the occasional golfer who takes advantage of the area’s substantial array of golf choices, a renewed sense that they are indeed receiving something of tangible value in Ocean Pines for their annual lot assessments. Golf relies substantially on prepaid membership fees for its revenues, supplemented by greens and cart fees. Golf is also reliant on outside play by nonmembers – often in the form of package rounds – a fact of life that will probably be necessary for the foreseeable future. The audited results for 2014-15, as well as operating results well into the current fiscal year, show that golf membership and revenues generally are falling well short of what is needed to make this department self-sustaining. The first draft of a membership plan forwarded to the OPA by Landscapes Unlimited, the golf course management company, showed a very unaggressive increase of ten memberships for next year over the current low number of roughly 115. While that number probably will be revised upward under pressure from the OPA’s golf oversight team, it most likely reflects Landscapes Unlimited’s unfiltered and unfettered prognostication of what’s really possible in Ocean Pines, in today’s economic and competitive climate. That this first iteration of a membership plan differs substantially from what LU at one time suggested was possible – an aggressive increase in membership revenue to roughly match that from non-member revenue – is duly noted. Surprising? Not really. It may be that any significant increase in golf membership under the current model is unrealistic, regardless of which management company happens to be in day-to-day charge of the golf course. Should the OPA decide at some future date to return to inhouse management, thereby saving itself roughly $75,000 or so in annual management fees, that, too, would probably have no or only limited impact on membership prospects. It may be that the current membership model for revenue generation has outlived its usefulness and relevance to a community that is much more diverse than it was when the membership structure was devised some 40 odd years ago. It may be that it’s time to replace it, or at least modify it to a significant degree, in a way that’s fair to Ocean Pines property

owners and residents while putting golf on a sounder financial footing. The way of accomplishing that would incorporate an idea that’s been kicked around behind the scenes for years, if not decades, but never acted upon – for reasons of politics and probably because there really was no need for it. In earlier decades, ending sometime in the 1990s, golf was a net revenue generator for the OPA, something not true for quite some time. In fact, the uncomfortable truth is that the OPA probably never will achieve break-even operations in golf under the current membership model, given adverse demographics and the over-saturation of golf courses in northern Worcester and nearby Sussex counties. To remedy this, the OPA should explore the possibility of diverting a portion of each year’s lot assessment dollars to the golf department, giving all property owners a tangible benefit in exchange for this. All property owners could be entitled to play the golf course anytime during certain established hours for no additional green fees. Or they could be given a certain number of free passes to the course to be used at any time. (Cart fees would be assessed on the day and time of play, or cart packages could be purchased in advance, as is done currently.) Or some combination of “free” afternoon play or reduced cost morning tee times could be offered as part of this basic golf membership. It would not be necessary to eliminate all membership categories in golf, but they could be streamlined and simplified. Afternoon memberships probably would be eliminated entirely. Premium annual memberships in golf would be established, entitling those who purchase them certain advantages. Premium golf members, for instance, might have first call on tee times before 11 a.m. They might be given a certain number of riding carts at no or reduced cost. Enough incentives would need to be incorporated into premium golf memberships to help persuade current members to keep them and, perhaps, entice a few new ones to join. This is in effect the Columbia, Md., model, in which the base lot assessment pays for access to some community amenities, with certain restrictions; premium memberships provide added value which carry an extra cost for those willing to pay for them. OPA Director Tom Terry is very familiar with this model, having lived in Maryland’s largest homeownerassociation-managed community for many years. This hybrid membership system would preserve some degree of prepaid annual membership revenue and would not be quite the shock to the system that a pure assessment-based system would. It might, therefore, be more acceptable to an OPA membership resistant to change. Should many more Ocean Pines property owners and residents take advantage of the “basic” golf membership included as part of their annual lot assessment, there would be an increase in revenues from riding carts. The number of revenue-producing rounds from Ocean Pines property owners and residents on the course would increase. If limited access to the golf course is in included in the base lot assessment, there might be some erosion in revenues produced by daily use greens fees, and some current members may drop their memberships because they’re not that keen on morning tee times. Again, however, more rounds played by more people would generate more cart revenue sufficient to offset

at least some portion of that lost revenue. An important point is that adopting this hybrid golf membership model would not have to result in assessment increases. Indeed to make it more palatable to non-golfers in the community, every effort should be made to ensure that assessments are not increased to pay for this restructuring. Currently, General Manager Bob Thompson is projecting a $150,000 operating loss for golf this year, or roughly $18 per Ocean Pines property. Assuming this number is still looking realistic when next year’s budget is debated and approved in the first quarter of 2016, a transfer of $150,000 from assessments to golf operations could be included in next year’s budget. A break-even operation or surplus would thereby become realistic, unlike most golf budgets over the years. One way to “pay for” this $150,000 transfer is to reduce, or eliminate, a portion of the hidden $450,000 in golf-related depreciation that is part of the current budget. Most of that depreciation expense is attributed to golf drainage and green improvements completed in recent years. It is regrettable that the current generation of property owners are surreptitiously charged every year, through funded depreciation, for the replacement of these amenities, say, 50 or 100 years from now, if indeed these particular improvements will ever need replacing. The unfortunate reality is that depreciation expense is collected on these assets, to be spent on capital projects unrelated to golf drainage and golf greens. There will be no measurable loss if a portion of this golf-related depreciation expense is diverted instead to benefit current property owners. In addition, the question might as well be asked: Does the OPA really need to be spending $75,000 or so in golf management expenses, when the current vendor has, more or less, admitted there really may not be any realistic way of increasing golf membership under the existing model? The current golf pro and golf superintendent and much of their staffs were inherited from previous management; they would every reason to stay in Ocean Pines were the golf course to revert to in-house OPA management. As a practical matter, the change would hardly be noticed. Naturally, there will be association members who will object to this suggested change in membership structure; it wouldn’t be Ocean Pines if the objections were not strenuous and heart-felt. The sad fact is that there are many people who don’t use the amenities and who don’t want to finance them. That their assessment dollars would be diverted for that very purpose will not sit well with some. The proper response to that concern is to minimize the pain but forge ahead anyway. Opponents will need to be reminded that assessment dollars are already being used to subsidize losing amenities, with little direct benefit to those who subsidize but don’t use them. In that sense, non-golfers would be no worse off than they are now. At least under this hybrid model, there would be more incentive – or, more accurately, less disincentive – for at least some of the non-users to partake of the golf course amenity that they are paying for. And maybe, just maybe, there would be less infighting over amenity losses and a greater feeling, spread over more OPA members, that they’re getting more for their assessment dollars than they had been previously. – Tom Stauss

36 Ocean Pines PROGRESS

December 2015 - Early January 2016

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OPINION

December 2015 - Early January 2016Ocean Pines PROGRESS

COMMENTARY

Beach Club bathroom renovation is overdue

hile it’s too soon to know for certain whether a majority of the Board of Directors and General Manager Bob Thompson will embrace the idea, the proposal to renovate the bathrooms at the Ocean Pines Association’s oceanfront Beach Club in Ocean City is long overdue. There’s no good reason whatever not to do this project sometime next year, probably in the fall after the prime summer season, to give the OPA sufficient time to develop a request for proposals, send it to area contractors, fully vet and consider bids, and then award a construction contract. Fall is better so contractors bidding on the project have sufficient lead time to work the project into their construction schedules. Ocean Pines developer Marvin Steen once again has done his community a huge service by arranging with a local contractor, Sens, Inc., for a no-cost inspection of the facility from top to bottom and a cost estimate for a complete tear-out and renovation of the lower level bathrooms. The inspection suggests that the building, though roughly 40 years old and open to the elements, was built to last, with the very best in exterior and roofing materials. Only the lower level bathrooms are in questionable condition, and this has been the case for decades. From plumbing, to electrical to HVAC, the lower level is where the OPA should be focusing its attention. That Marvin Steen was able to secure an estimated cost for this work, without

the need for the OPA to hire a structural engineer or an architect, at considerable cost, is truly remarkable. When the time comes to draft a RFP for the project, Sens Inc.’s work product, detailed designs included, will provide the basis for it. It’s only fair that Sens should have the opportunity to submit a bid to be considered with all others, in a fair and open transparent bid process, something that has not occurred in recent years as much as it did at one time in Ocean Pines. That Sens did not charge Steen for the work it did, and the fact that Steen arranged for it on his own volition, validates the adage that sometimes private initiative can accomplish a task much faster and for less money than when done by government or quasi-governmental entities such as homeowner associations. Roughly five years ago, when the OPA was working on the replacement of the old Community Center, the board of directors at that time also looked at a Beach Club renovation in addition to paving the parking lot. The parking lot paving project has been plugged into the OPA capital budget, at least in its draft iterations, for every year since then, only to fall to the budget axe, in part because the benefit of a few additional parking spaces is not worth the cost of asphalt. At the same time, one year has followed another with Beach Club renovation barely warranting any discussion at budget time.

Meanwhile, conditions at the OPA’s most popular amenity have been allowed to deteriorate, other than some modest cosmetic improvements in the bathrooms made by the general manager a few years back. Other projects – from Yacht Club replacement to swimming pools to the golf course – have had a higher priority. Steen correctly has concluded that this needs to change, and he has an ally in Director Jack Collins, who has been urging his colleagues to join him in moving Beach Club bathroom renovation to the front burner in the coming fiscal year. Collins, of course, cannot do this alone. OPA President Pat Renaud began his term in office in September with a sincere declaration that he wanted his year as president to be one that was productive – in his words, he very much wanted less board discussion and more board action. Renovating this key amenity is one way to make that happen. It probably doesn’t hurt that Steen had a much to do with Renaud’s successful campaign for the board in 2014. No

LETTER An unpleasurable dining experience

I wanted to share our experience at the recent Ocean Pines Boat Club change of watch banquet held recently at the Ocean Pines Yacht Club. First let me say the staff was moving

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doubt when Steen sits down with the OPA president personally to lobby for this project, Renaud will listen intently. If he gets behind it, it’s likely other directors will follow. Unfortunately, there’s already been some pushback against the idea from some directors, Renaud told the Progress in a recent interview. He’s not sure he will join Collins in pushing for this project in next year’s budget. At the same time, Renaud knows the work needs to be done. Renaud said some directors are of the opinion that Beach Club improvements need to wait their turn in a so-called “rack and stack” of projects contained in the OPA’s capital improvement plan, which was last updated in 2012. Yes, a new CIP needs to done, but delays in completing it should not be used as a pretext for not doing a renovation that everyone knows is needed. A CIP is just a set of guidelines and can be changed to reflect a new reality. That reality is Marvin Steen’s timely intervention on behalf of his community. -- Tom Stauss

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quickly and seemed to know what they were doing. That being said the food was an entirely different matter. They offered a choice of rib eye or flounder. The flounder was cold and fishy tasting, the rib eye was over-cooked and dry. It obviously was pre-cut and sitting in a warming box for a long period of time. The rolls were served right from the refrigerator, cold, and they tasted stale. The topper, however, was that they recycled potatoes from Sunday brunch to serve with this awful meal. I left most of mine uneaten as did my wife with her flounder. A man replaced our rolls with fresh baked rolls with an apology, but it was too late. I have no idea who he was, as he did not introduce himself, but he was not a member of the wait staff. This experience was not pleasurable to anyone seated at our table. My wife and I were the owners of a 750-seat banquet center in Pennsylvania. Having been a chef for 30 years, I am very familiar with the correct way to serve a meal. I have hand cut and served over 3000 prime rib dinners in my time, all successful and served with pride. That can’t be said of this poorly-run venue. It’s no small wonder why they fail again and again. Marlin Wert Ocean Pines

38 Ocean Pines PROGRESS

December 2015 - Early January 2016

OPINION

Directors clash over golf management issues to suggest that non-golfers – who happen to comprise a substantial majority of Ocean Pines property An excursion through the curious cul-de-sacs An excursion through theby-ways curious and by-ways and cul-de-sacs owners – should be represented on the panel. Indeed. of Worcester County’s County’s most densely community. of Worcester mostpopulated densely populated community. The debate also centered on By TOM STAUSS/ By TOM Publisher STAUSS/Publisher the president’s power to appoint a working group of directors without agement, particularly the degree to Renaud peeling away from his former allies board debate and concurrence. which a three-member board oversight earlier this year, but so far there is no evi- Herrick, the board secretary, had group updates the other four directors dence that Renaud and Terry see the world himself listed on the meeting agenda on LU-related issues, revealed board through different-colored lenses. on the issue of whether the president divisions that predated the election of One of Renaud’s first actions as president had the power to unilaterally appoint Herrick and Jacobs to the board this was the appointment of a three-member working group members without past August. working group of directors – himself, Terry at least bringing the matter up for When a 4-3 majority of the board ear- and Cordwell – who, along with General board discussion. ly this year selected Landscapes Unlim- Manager Bob Thompson, are serving as the In earlier meetings, Stevens ited to replace Billy Casper Golf as the OPA’s liaisons with LU. There was no board argued vociferously against the Ocean Pines golf course management vote on the appointments initially. Collins notion that Renaud had that power, company, it left bruised feelings among previously had been the board’s golf liaison. repeatedly telling his colleagues that, the minority directors, particularly He found himself marginalized, as three as president, Stevens had always at Cordwell, who was not shy in proclaim- board colleagues, two of whom (Cordwell least made an effort to consult with ing his opposition to the decision not to and Terry) had opposed the decision to them before making a personnel retain BCG. At the time, a board majori- ease BCG, replaced Collins and two non- move. He cited OPA bylaws which ty consisting of Renaud, Collins, Stevens directors as the liaisons to LU. indicate that advisory committees and former director Marty Clarke carThe manner in which Renaud replaced require board concurrence of ried the day in selecting LU. Cordwell the former LU working group with himself, presidential appointments. and Terry were in the minority at the Terry and Cordwell has been a sore point Exhibiting her training as a lawtime. with Collins and Stevens in recent months, yer, Jacobs took exception to that Subsequently, Renaud became in- but it was not until the Nov. 19 meeting interpretation of the bylaws, argucreasingly untethered to his erstwhile that it became clear that Herrick, the top ing that the three-member working allies, forging a close working relation- voter getter in this past summer’s election, group under the LU contract was not ship with Terry and a defacto alliance was joining Collins and Stevens as critics an advisory committee within the with him on matters large and small, be- of the process, if not the actual composition meaning and context of the bylaws. ginning with the adoption of the 2015-16 of the Renaud-Terry-Cordwell-Thompson OPA budget last winter. By the August working group. reorganization of the board following Stevens and Collins argued that having the election, Renaud and Terry contin- two or three non-golfers on the oversight ued their close association, aligning panel would not produce the best outcome, themselves with Jacobs and Cordwell while Terry and Cordwell and Renaud all in voting Renaud in as the new OPA suggested that having LU cheerleaders The Ocean Pines Progress, a jourpresident, replacing Stevens. Alliances as working group members would not be nal of news and commentary, is have a way of splintering, as proven by effective oversight. Jacobs went so far as published monthly throughout

LIFE IN THE LIFE INPINES THE PINES

hat last Board of Directors meeting, if nothing else, suggests that election wounds don’t always heal as quickly as they should. It also provided some proof, as if it was really needed, that the current board is as divided now as it ever has been. The familiar 4-3 divide is present on occasion, with some nuanced evidence that there are actually three identifiable factions contending for influence. OPA President Pat Renaud and former OPA President Tom Terry rarely if ever disagree; they are more or less the faction that can dictate the outcome of any particular vote. Directors Jack Collins, Dave Stevens and Tom Herrick and have emerged as solid allies, and lately Cheryl Jacobs and Bill Cordwell have joined together, especially as it relates to contentious golf-related issues. Jacobs, as befits her calling, is more cerebral and analytical; the thin-skinned Cordwell is quick to take offense and hold grudges and, let’s not sugarcoat it, goes off on rants and tangents that suggest he’s just the latest in a long line of former directors who couldn’t wait for his three years of board servitude to mercifully expire. All of this played out during the Nov. 19 board meeting, during marathon debates over golf course management and then again on belated “guidance” to the general manager on the 2016-17 budget, already well on its way to a first draft. The multi-meeting discussions on budget guidance could have gone for another meeting or two, had a motion by Stevens been approved, but he mercifully withdrew it before it could be voted down. The discussion over golf course man-

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the year. It is circulated in Ocean Pines, Berlin, Ocean City, and Captain’s Cove, Va. Letters and other editorial submissions: Please submit via email only. Letters should be original and exclusive to the Progress. Include phone number for verification. 127 Nottingham Lane Ocean Pines, MD 21811

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OPINION

December 2015 - Early January 2016Ocean Pines PROGRESS

LIFE IN THE PINES From Page 38 That she came up with an arguable case for a gray area within the OPA bylaws is not particularly remarkable. Finding loopholes and poorly worded language in governing documents and contracts are what lawyers are trained to do. Loopholes 101 is a first-year course in typical law schools throughout the land. Somewhat ironically, Renaud grudgingly seemed to admit that perhaps he had erred in not clearing the appointments with the full board before making them, not that it really made any difference. Cordwell, who has been absent from many recent board meetings, was present at the Nov. 19 meeting, not shy in making his sentiments known. When Renaud, on Thompson’s suggestion, called for a vote on the membership composition of the three-member golf working group, it passed, 4-3. No surprise that Renaud, Terry, Cordwell and Jacobs were in the majority. That would have been the outcome had Renaud been inclined to bring up the matter for discussion and a vote back in September. In a subsequent vote, however, Renaud and Terry split from Cordwell and Jacobs to hold a special, open public meeting with LU executives to discuss their business plan for the coming year, particularly as it relates to a plan to rebuild the sagging golf membership roles in Ocean Pines. Prior to the vote, Terry at one point lost his cool when he was pressed to divulge questions from the golf oversight group to LU executives in recent meetings about the business plan. Visibly upset with the interrogation, Terry revealed that the initial draft of the membership rebuilding plan for next year called for a scant ten-member increase in the rolls, which would the total under what was inherited this spring. Indeed, if that is in fact what LU officials truly believe is possible this coming year, they have wittingly or unwittingly undermined the fundamental rationale for why the company was hired to manage the golf course. In the run-up to their selection as the new golf course management firm, an LU executive made it clear that rebuilding the membership was a prime objective of the company, even going so far as to state that if his firm failed in that endeavor, they expected to be replaced. The metric of success was specified: membership revenue was to match revenue from non-member rounds, in a rough 50-50 equilibrium. There even was a reference to a “proprietary” strategy for rebuilding membership. Even with the disclosure of an anemic membership plan, or perhaps because of it, Terry found himself in agreement with Stevens and Collins that an open meeting with LU executives to discuss the business plan and membership strategy in particular would be a good idea. That was over the objections of Ja-

Shamrock ribbon-cutting

Shamrock Realty Group recently moved their main offices from Rt. 50 in Berlin to Rt. 589 (Racetrack Road) across from Ocean Pines and, with the help of the Ocean Pines Chamber of Commerce, celebrated the move with a ribbon cutting on Nov. 17. Shown helping cut the ribbon are from left in front of ribbon: Grand children of owner Gary James, Amber, Kylie, Jacob, and Tyler. Standing immediately behind the ribbon: Susan Lloyd, OP Chamber Past President Terri Mahoney, OP Chamber member Carolyn Anthony, Shamrock Owner Gary James, Shamrock Vice President Pam Wadler, Edie Brennan, Mary Burgess, Ocean Pines Chamber member Sherrie Lassahn, and Worcester County Commissioner Chip Bertino. cobs and Cordwell, who argued that such a meeting was unnecessary and in any event should be held behind closed doors because it involved a contractual matter. Thompson suggested that a full debate over the company’s business plan could occur during the regular budget process in January and February, but Collins and Stevens argued that they didn’t want to wait that long to explore LU’s business plan. In the end, both Terry and Renaud seemed to agree with Stevens and Collins, and Thompson was directed to contact LU officials and set a date for the confab as soon as possible. The vote for an opening meeting passed 5-2, with Jacobs and Cordwell in opposition. The unexpected 5-2 vote probably does not portend a sudden softening of hard feelings surrounding the subject of golf management. If LU executives can’t make a case for why they initially expected only a modest increase in membership next year, then Stevens and Collins may in time regret their call for an open public meeting. It doesn’t require much imagination to foresee calls to return to in-house management of the golf course if LU can’t produce the promised membership gains, with a meaningful down-payment in the first full year of operating the course. Indeed, a return to in-house management already might be just a matter of timing.

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40 Ocean Pines PROGRESS

December 2015 - Early January 2016

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