February 2016 ocean pines progress by Ocean Pines Progress

Developer seeks interior access to medical complex Citing safety concerns and improved convenience for residents, developer Palmer Gillis is lobbying the Ocean Pines Association to support a second entrance to the medical complex he is developing off Route 589 adjacent to the North Gate. Gillis met with the Board of Directors during a special Feb. 5 session and presented a request for access via an interior connection from Ocean Parkway, but instead directors are pushing for improvements to the existing “right-in-right-out” only access point on Route 589. ~ Page 5

Thompson’s proposed food truck purchase still up in the air It’s only a $55,000 item in a capital budget of roughly $2.69 million, but General Manager Bob Thompson’s idea for a food truck to offer lunch items at the Mumford’s Landing pool, appetizers and other lighter fare at the Yacht Club in late afternoon and early evenings, breakfast at weekend Farmer’s Markets and food service at other events in White Horse Park consumed much of the available oxygen during 2016-17 budget deliberations in January and early February. In the end, however, the general manager’s initiative seems to be carrying the day, with a sufficient number of Ocean Pines Association directors apparently close to authorizing the expenditure. ~ Page 10

LU to allow members to walk golf course in the mornings In one of its first visible efforts to rebuild golf membership in Ocean Pines, Landscapes Unlimited, the Ocean Pines golf course management company, has announced a policy change for member golfers who prefer to walk while playing their rounds. Scott Nissley, LU’s regional manager, during a Jan. 21 town meeting called to discuss the company’s business plan for the coming year. ~ Page 27

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Assessment increase decision looms; directors grapple with 2016-17 budget Stevens, Collins propose reduction in reserve funding as a way to eliminate assessment increase or even lower it By TOM STAUSS Publisher Feb. 5 meeting that some Ocean Pines Association directors had hoped would wrap up deliberations over the proposed 2016-17 OPA budget did nothing of the kind, instead leaving several controversial issues open for decisions later in February. Chief among them is the amount of contributions the board will authorize for the OPA’s major maintenance and replacement reserve, which in turn will have a direct effect on whether the board will raise the base lot assessment for the 2016-17 fiscal year. Another decision that looms is whether to approve a roving food truck proposed by General Manager Bob Thompson in his draft budget unveiled in early January. [See story on page 10 for details.] Both issues could be decided by the board in another budget review meeting scheduled for Friday, Feb. 19, at 9 a.m. OPA Director and Treasurer Tom Terry has been aiming for a vote at the board’s regular monthly meeting Feb. 25 to finalize next year’s budget, including assessments and fees embedded in it. Terry had hoped that the Feb. 5 meeting would resolve most if not all of the outstanding issues, but instead the board spent most of the morning presiding over what amounted to a town meeting over a proposal by developer Palmer Gillis to provide internal access to his medical complex adjacent to the Ocean Pines North Gate from within Ocean Pines. [See story on page for 5 details]. After a short nature break, as it was dubbed by Terry, the directors conducted a 45-minute session on the budget, dealing with two issues – a proposed allocation to deal with the non-native geese issue in and around the South Gate and a suggestion by Director Cheryl Jacobs to eliminate a 2.6 per-

cent merit pay increase in salary accounts across all departments. Thompson had to leave because of a prior commitment and that prompted President Pat Renaud to adjourn the meeting after roughly 45 minutes, leaving major issues to be resolved at Dave Stevens Jack Collins another time. The geese issue was dispatched relatively quickly, with the directors agreeing to a $15,000 allocation in the budget for non-lethal thinning of the number of geese at the South Gate. That number could be revised upward to $25,000 if Thompson subsequently comes back to the board with a higher cost estimate. On the merit pay increase, in the end four of six directors who attended the meeting, including Jacobs, opted to retain the 2.6 percent average merit pay increase, with not every employee guaranteed a raise. Among the issues not addressed during the Feb. 5 meeting is a proposal by Stevens, distributed to his colleagues and the media that day, to reduce a proposed $1.1 million supplemental contribution from assessments to the Major Maintenance and Replacement Reserve. His proposal is to reduce that $1.1 million to $626,160. Stevens’ proposed reduction in supplemental funding would not affect the separate $1.55 million in assessments that is scheduled to flow into this reserve in revenue attributable to funding depreciation of OPA assets. Combined, the two revenue streams would allocate $2.18 million directly from lot assessments into the replacement reserve next year. Stevens told his colleagues that if they accept his proposal, the replacement reserve would still contain To Page 35

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February 2016

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OCEAN PINES BRIEFS Stevens unhappy with first draft of reserve study released to board is one of the main drivers of the annual OPA lot assessment. “Whether deliberate or not, this misinformation will lead the average OPA member to draw conclusions which are best misleading,” Stevens said in a memo to his board colleagues, also criticizing the leak of this information to a “selected” local weekly that he said was likely to misconstrue its relevance. In his memo to his colleagues, Stevens said the leak occurred “without consulting or gaining approval of the board’ and that it was “disruptive to an objective and and reasoned review process.”

Beach Club roof damaged by January high winds

The late January blizzard that hammered much of the mid-Atlantic and New England states delivered a relatively light snow fall in Ocean Pines, while Ocean City experienced heavy flooding and high winds. The gale-strength winds blew off a section of the Ocean Pines Beach Club’s copper roof , according to General Manager Bob Thompson, who was over in Ocean City in the middle of the night with Public Works Director Eddie Wells

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he ink is barely dry and it had not been posted on the Ocean Pines Association Web site as of Feb. 5, but already one Ocean Pines director is unhappy with a last one part of the long-awaited reserve study by DMA Management. General Manager Bob Thompson gave copies of the first draft of the study to the Board of Directors at the board’s Jan. 28 regular monthly meeting. What caught Director Dave Stevens’ eye and irritated him immensely was a calculation called an “an annual component cost” that seemed to suggest that the OPA should have more than $14 million in replacement reserves to pay for needed capital improvements. “We’re $11 million short of that,” he said, so the implication is that the OPA is underfunding its reserves by that amount, a notion he said is incorrect. That particular numbr is not relevant to a rational analysis of what actually is needed in annual assessments to fund the reserves, which he said should be based on what actually has been spent from the replacement reserves in recent years. He called it “sheer unadulterated garbage” to tie the “annual component cost” calculation to a debate on the proper level of reserve funding, which in turn

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OCEAN PINES BRIEFS From Page 3 inspecting the damage. Thompson told the Board of Directors during its Jan. 28 monthly meeting that while the copper roofing will need replacement, there was no discernible damage to the underlying roof structure. He said that the Ocean Pines Association’s insurance company had been contacted and that insurance should cover replacement costs. A contractor has been contacted to prepare an estimate for the replacement, Thompson said. Public Works crews were out in force during the January snow falls, keeping roads open to traffic

Swim activities set for Sports Core Pool

Kids and their families can escape the winter weather with two activities offered by Ocean Pines Aquatics at the heated indoor Sports Core Pool. On Friday, Feb. 12, area residents can enjoy a Valentine’s Family Night Out from 6-8 p.m. The pool will be open for swimming and Valentine’s Day crafts will be provided. Pizza and desserts will also be for sale. Attendees may bring their own beverages, although glass containers are not allowed. The cost is $2 per person for Ocean Pines swim members, $4 for Ocean Pines residents and $6 for non-residents. On Monday, Feb. 15, kids can enjoy a day off from school while playing in the

pool and learning about water safety at the “Splash into Fun and Games” oneday program from 9 a.m. – 3 p.m. Offered for ages 5-10, the program will include a 30-minute swim lesson, a 30-minute water safety lesson, games, crafts, the use of the pool’s popular mermaid and shark tails, free swim time and a pizza lunch. The cost to participate is $55 for Ocean Pines swim members and $65 for non-members. Pre-registration is needed. Both of these events are open to the public. To register, call Ocean Pines Aquatics at 410-641-5255.

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Pines recently made donations of $3,850 to groups within Ocean Pines. The proceeds of the annual August and November artisan and craft Shows provided the funds to make these donations possible. The presentations were made prior to the crafters’ holiday luncheon at the Ocean Pines Yacht Club in December. Donations were made to the Ocean Pines Police Department, $350; the Ocean Pines Volunteer Fire Department, $1200; Ocean Pines Recreation and Parks, $1400; Ocean Pines Public Works, $400; Worcester County Veterans Memorial, $200; Friends of Ocean Pines Library, $200; and Ocean Pines Neighborhood Watch, $100. The Pine’eer Craft Club meets the 3rd Thursday of each month at 9:45 a.m. in the Ocean Pines Community Center. Guests/new members are always welcome. The club’s Craft and Gift Shop in White Horse Park across from the Community Center is open year round every Saturday and Sunday and features a variety of hand-crafted items at reasonable prices.

Beginner pickleball clinics continue in Ocean Pines

Following the success of its January pickleball clinic, Ocean Pines will offer two additional two-session clinics for beginners and advanced beginners interested in learning America’s fastest-growing sport. Clinics will be held on Feb. 19 and 26 and March 18 and 25 from 2:30-3:30 p.m. at the Ocean Pines Community Center. The cost is for each clinic is $10 per person, and preregistration is required at the Ocean Pines Recreation and Parks Department or by calling 410-641-7052. Each clinic will be limited to 12 players and spots are filling quickly. Ocean Pines also offers drop-in indoor pickleball at the community center now through May 31. Drop-in times are 1:30-5:30 p.m. on Sundays, 7-9 p.m. on Mondays and 1:30-4:30 p.m. on Tuesdays and Thursdays. The cost is $5 per person. Pickleball, which combines elements of tennis, badminton and ping-pong, is family-friendly and accessible to almost everyone, regardless of age or athletic ability. Ocean Pines pickleball courts and programs are open to the public.

Elections board to show new voting system Feb. 9 On Tuesday, Feb. 9, the Worcester County Board of Elections will demonstrate the new voting system that will be utilized during this election year. The demonstration is set for the Ocean Pines Association Community Center East Room from 4-5:30 p.m. Ocean Pines residents are invited to take this opportunity to acquaint themselves with the new voting system. Board of Elections staff will explain the new system and offer a hands-on demonstration.

February 2016 Ocean Pines PROGRESS

Developer seeks support for interior road access to North Gate med center Directors push back against request for Ocean Parkway connection more than six years ago. By ROTA L. KNOTT He wanted to know why in that time Contributing Writer no one has come up with a new idea. iting safety concerns and improved convenience for Terry pointed the finger at the State residents, developer Palmer Gillis is lobbying the Highway Administration, saying the Ocean Pines Association to support a second enstate of Maryland has refused to partictrance to the medical complex he is developing off Route ipate in addressing the traffic problem 589 adjacent to the North Gate. that has been caused by this developGillis met with the Board of Directors during a spement. cial Feb. 5 session and presented a request for access via “Has nothing been done by the state an interior connection from Ocean Parkway, but instead of Maryland to address what is obvidirectors are pushing for improvements to the existing ously a conflicting traffic problem?” he “right-in- right-out” only access point on Route 589. They asked. want the state to approve creation of a full movement Palmer Gillis intersection, perhaps with a traffic signal if that won’t Gillis argued that he has made imimpede traffic flow on the much-traveled allow access,” he said. provements including the realignment highway. Traffic models show that the existing of Cathage Road within the medical cenFollowing an extensive discussion be- right in, right out access point is ad- ter complex and providing an extended fore a packed house of property owners, equate to serve the existing facility as deceleration lane on Route 589. the board asked Gillis to put his request well as the full five-building build-out “The factual answer is that state has in writing for consideration. OPA Pres- of the complex, according to Gillis. But not changed their position or offered any ident Pat Renaud then solicited volun- what the models show and what’s really alternatives to a right-in- right-out,” he teers for a task force to help the board happening are two different things. said. develop a formal response to Gillis. The developer embraced the idea of task force. Gillis, along with a contingent of representatives from the State Highway Administration and Peninsula Regional Medical Center, met with directors to discuss the challenges with the sole access point to the medical complex, an existing “right in and right out” only that Palmer Gillis empties directly onto northbound Route 589. The only motorists using the right in, He acknowledged that motorists are In response to complaints from both OPA property owners and patrons of the making a variety of conflicting traffic right out are those going north on Route medical complex about the safety and movements in order to go south when 589 and turning right into the medical convenience of that access point, Gillis they leave the facility, including U-turns complex and those who when the leave asked the OPA to consider alternatives directly from the complex onto Route want to go further north. “ Common sense says if you’re a driver 589, turning into Shore Stop to turn that will help address those woes. While his proposal was to construct around and traveling north on Route you’re only going to use the right turn an access road from Ocean Parkway just 589, and crossing the North Gate bridge only if you’re going north,” he said. Again Gillis said that statistically inside the North Gate to the medical to make a U-turn. “I think there’s a lot of reasons that the right-in- right-out model fits his decomplex, he said he was open to other ideas as well, including widening the we ought to at least keep an open mind velopment and that is the basis for the and consider this as a convenience issue, state’s access approvals. outgoing lane of the North Gate bridge. “But what we’re seeing is that the Still, he argued in favor of creating a safety issue,” Gillis told the board in residents and patients that are visiting an interior access point, saying that it urging an interior access. He said providing interior access will this facility are inconvenienced and it is will be safer and more convenient for Ocean Pines residents if they do not not diminish property values for nearby a safety issue,” he said, repeating it several times for emphasis throughout his have to go out onto Route 589 to reach owners. “We will be an asset to this communi- presentation. the medical facility. Gillis said there are alternatives for He said medical facilities make good ty not a liability,” he said. OPA President Pat Renaud asked property egress, including installing a transitional uses from commercialized how many vehicles per hour would pass new traffic signal on Route 589 at the highways to residential communities. entrance to his complex, but they don’t Gillis said he had never officially re- through the proposed interior access. Gillis responded that the traffic mod- fit the SHA’s requirements. quested the loop road to Ocean Parkway He encouraged the board to consider previously but it was presented as an els for two buildings of 20,000 square option during the planning for the medi- feet each is 48 employees and 225 pa- the interior access road and widening the North gate bridge, at his cost. tients per day. cal complex some six years ago. He even suggested “annexing” the Director Tom Terry said it may not “We’ve never made this request. But we are now asking this board and the have been an official request but the medical complex into Ocean Pines so it neighborhoods to consider a request to same interior road was shown on plans would become a dues-paying member.

“I think there’s a lot of reasons that we ought to at least keep an open mind and consider this as a convenience issue, a safety issue.”

Director Bill Cordwell said allowing an interior access point could make Ocean Pines liable if something were to happen involving non-residents. “If we allow this we’re allowing them to come onto Ocean Pines property.” Instead, he said, motorists just need to learn the traffic patterns and follow the rules. Renaud agreed, saying that residents from north Ocean Pines can travel down Ocean Parkway, out Cathell Road and up Route 589 to enter the medical complex properly. When the project reaches full build out of the five proposed buildings, Cordwell wanted to know if another entrance will be needed. Gillis said he believes the traffic study will show that the right-in- rightout will support all five buildings. “That’s the fact. But the facts and reality don’t add up.” Director Carol Jacobs went on the attack, telling Gillis that she finds it “really curious” that he purchased the 20-acre site knowing what he was going to build on the site but without having dealt with this issue. Now he’s back asking for an interior road, knowing the OPA board said no six years ago. “I find that remarkable,” she said. Gillis responded that he was simply “trying to be responsive to your residents.” He also said that he had not technically asked for OPA board support six years ago, but merely had presented the interior acces road as an idea to be considered. This time, he was unapolegetically asking for board support for interior access. Terry asked SHA officials what could be done at the site and if it is possible to have a traffic signal installed. Donnie Drewer, SHA district engineer, said the state is required to provide access to any property on a state road but there are guidelines for the type of access that can be permitted based on the approved property use. Based on the medical complex proposed for the property, SHA approved the right-in-right-out access and egress. With the eventual dualization of Route 589 not occurring to 2025 or 2030, he said improvements being made along the highway are limited at this time. Once having installed a traffic light, for instance, the SHA can’t easily remove it when dualization occurs, because it would adversely impact businesses, he said. Drewer said one alternative is to allow a full movement access point at the intersection but that would just push off the traffic problem, which will return upon dualization of the highway. Putting in a traffic signal will just back up traffic further down Route 589, he said. PRMC officials said that with the traffic problems awaiting resolution, the Salisbury-based hospital and medical services company had put its plans to

OCEAN PINES

6 Ocean Pines PROGRESS

OCEAN PINES

February 2016

Utility lines affecting timeline for bridge repairs By ROTA L. KNOTT Contributing Writer he Ocean Pines Association is holding off on soliciting a request for proposals to repair the Ocean Parkway and Clubhouse Drive bridges until it can resolve concerns about the relocation of utilities that run across the existing structures. General Manager Bob Thompson in his Jan. 28 report to the Board of Directors said he is drafting an RFP for the bridge repairs but before the OPA posts it he wants to know exactly where utilities, including water and wastewater lines, need to go. He said he has talked with Worcester County public works and the other utility companies and is working with them to determine whether they will need to run lines across, under or around the bridges. Thompson said the reason knowing where the utilities need to be located is important is because it can change part of the engineering design for the bridges based on how those utilities will be attached. Before the OPA puts out the RFP, he said he wants to make sure the design is appropriate so changes do not have to be made after a contract for the work is awarded.

Thompson says he’s targeting spring for launch The plan is to have all of the necessary information from the county and utility companies within the next few weeks so the engineer can finalize the bridge designs. “Our goal is still to have a springtime project,” Thompson said. He said resolving the issue of utility line location is important not just for the upcoming bridge repairs but also in planning for the ultimate replacement of both structures. “So whatever we do here will help with a more permanent solution when we go to replace them.” The current bridge design has utilities running across the structure. The large blue pipe on the Ocean Parkway bridge, for example, is county water and wastewater. Thompson said he is working with the county and other utility companies” to find out what their longer term solution is for that piping,” such as hangers to attached them under the bridge, space on top of the bridge or another strategy. He said the biggest concern was regarding the county’s water and wastewater lines simply because of the size of the pipes. He said the county is considering either

rerouting or piping the utilities under the water so they will not be attached to the bridge. “It’s their goal right now to bore under the canal,” Thompson said of the county. “That helps us not only today but in the future” when the bridges are replaced. He said the goal when replacing the bridges is to raise them to a height that is easy for boats to pass underneath. “When we do that not having those major utilities on top of it or attached to it

Med center access From Page 5 lease additional buildings from Gillis on hold. PRMC does not want to further aggravate a situation, they said. That prompted Gillis to say that while he can understand that why PRMC may have hit the pause button, he has not. Insisting that he preferred to develop his property with five buildings of varying sizes to accommodate PRMC, other options will have to be explored to make

is going to make it a lot easier.” Director Jack Collins asked who is responsible for doing the work associated with relocating the utilities. Thompson said the county and each individual utility will be responsible for moving their lines. “You’ll have to coordinate with our construction contractor as well as county and the other utilities?” Collins asked. Thompson responded “of course.” The bridges will be able to remain open while the repairs, at an anticipated cost of $243,100 per bridge, are being made. full use of the property. “That’s not a threat,” he said, telling residents that he is a businessman driven by a profit motive. He also responded to residents’ concerns that he had clear cut all but five acres of the property, telling them it was necessary to build infrastructure for all five buildings he hopes to build. He acknowledged that nearby residents are exposed to traffic noise on Route 589, advising them he would entertain ways to mitigate it, including a sound barrier or privacy fencing.

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February 2016 Ocean Pines PROGRESS

Pool bikes, Sports Core refurbishing included in 2016-17 aquatics budget By TOM STAUSS Publisher erhaps in part because the Ocean Pines Aquatics department has seen such a dramatic turn-around in financial performance so far this fiscal year, aquatics-related capital expenditures contained in the 2016-17 fiscal year budget sailed through the review process in January with no discernible push-back by the Board of Directors. One proposed capital expenditure, the purchase of ten pool exercise bikes, has a possible pay-back period within their first year of use, General Manager Bob Thompson told members of the Board of Directors in January. The budgeted purchase price of the bikes is $14,094, and bike class fees should be more than enough to cover the cost of the bikes, Thompson said. The aquatics capital budget includes $29,631 in new pool furniture, $17,500 for a new slide at the Sports Core indoor pool, to replace the aging slide there now, $6,400 for a new handicap chair and $2,129 for new lifeguard stands. The most expensive item in the

aquatics capital budget for 2016-17 is for resurfacing the Sports Core pool, adding a new stepped entry way, replacing skimmers and refurbishing the deck. The budgeted amount is $250,000, but

the actual bids for the project were due back Feb. 1, giving the Board of Directors the option of adjusting the dollars budgeted if needed before the budget is adopted in its entirety in late February. The bid solicitation for the project also included a request for pricing for salt-generated chlorination and an ultra violet disinfecting system for the pool. Aquatics was originally budgeted to

lose $123,000 this year, compared to an $180,000 loss last year. The latest forecast is for aquatics to lose $37,762 in the current fiscal year. Next year, the department is budgeted to lose about $50,000, but Aquatics Director Colby Phillips told the Aquatics Advisory Committee in early February that she hoped to come close to break even.

Craft Club officers

The Pine’eer Craft Club of Ocean Pines inducted new officers for 2016 at the annual luncheon at the Ocean Pines Yacht Club Dec. 17. At the same time the club presented donations to groups within Ocean Pines. Shown left to right are Lois Schultz, Carol Quinto, Jackie Kollar, Linda Brindley, Sharon Puser, Barbara Stillwell, Luz Castillo, Grace McCormac, Barbara Boone, and Jane Wolnik.

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OPA BUDGET

February 2016

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Board includes funds for Beach Club bathroom project in FY17 budget Another $25,000 is included for an engineering study to determine whether an above-ground bathroom is practical for the site, along with $500,000 for construction including contingencies By ROTA L.KNOTT Contributing Writer he Board of Directors has agreed to budget $525,000 for engineering and construction of either a renovated below-ground-level or new above-ground bathhouse at the Ocean Pines Association’s Beach Club in Ocean City. Directors unanimously approved moving forward with the project and hope to get the facility under construction this fall and have it ready for use by members in the summer of 2017. Director Jack Collins at the board’s Jan. 28 monthly meeting offered the motion to “place into the 2016-17 budget the necessary funds to renovate the bathhouse located within the Beach Club. An estimated cost plus construction margin of $500,000 is to be added to the capital spending budget and funded through the historical/replacement reserves. An RFP (request for proposals) is to be issued for the renovation of the bathhouse with construction to be scheduled during the coming fall/winter.” Developer Marvin Steen kick started discussions about the Beach Club bathhouses in November when he presented the board with schematic designs and a scope of work for renovation of the existing below ground facilities. 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 and create a plan to renovate them. In making his motion, Collins cited

the plans provided by Steen and said they give the OPA a starting point and cost estimate from which to move forward with its planning. He said the venue is the most popular amenity used by many lot owners and members as indicated by the number of Beach Club parking passes sold each year, and if renovated it could attract even more users. He added that the club generates positive cash flow every year and from fiscal year 2013 through 2016 that equaled more than $469,000. Since the Beach Club bathroom renovation wasn’t included in Thompson’s proposed spending plan, during budget discussions directors again agreed to include the Beach Club bathhouse renovations in the budget. “This renovation has been discussed and proposed often over the years. This project was embraced as a priority in 2010 but abandoned because of an underestimated cost projection. The cost projection is this estimate is well documented and could be validated by an RFP,” Collins said. The total cost of the project as proposed by Sens, Inc. was $462,600. Collins’ 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

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OPA BUDGET Beach Club From Page 8 for the new facilities. It does not include the cost of items such as permits, meter, tap or impact fees, performance bonds or site work. Collins said, based on his background, the estimated presented by Sens seems reasonable. “It’s a pretty solid number.” He added that he has spoken with many association members who support renovating the bathhouses. “They all think it’s about time and it’s a good idea,” he said. He cited board resolution M-02 that stares the amenities should be maintained in a “first class condition” and that “providing superb customer service is a basic requirement to achieve membership satisfaction and wide spread use of association amenities.” But that’s not happening, according to Collins. “Well it certainly isn’t being maintained in first class condition as I speak,” he told his colleague. Director Tom Terry supported pursuing the project but offered an amendment to Collins’ motion to include consideration of building a new above ground bathhouse in lieu of renovating the existing lower level facilities and to increase the budgeted amount to $525,000 to cover the cost of engineering studies for both options. He said the underground bathrooms suffer from poor

February 2016 Ocean Pines PROGRESS air flow and drainage problems, so it may be better to construct new facilities. He said the 2010 Beach Club project investigated was for an above ground project, but estimates for the work came in higher than expected so nothing was ever done. “I am absolutely in favor of us addressing the Beach Club I’m all for fixing it, updating it,” Terry said. Director Dave Stevens said the OPA already investigated the option of building a new above ground bathhouse facility in 2010. He said three bids were received when the OPA put out an RFP. Since they were all over the anticipated cost of $300,000, the board opted not to move forward with the project at that time. “We’ve already explored that before,” he said, “(but) doing it again is ok.” Including that option secured a unanimous vote for the project, something that Collins was not anticipating when he first proposed the project in November. All was not warm and collegial during the discussion preceding the vote, however. At least one director is of the opinion that the unanimous vote for Collins’ motion does not necessarily mean that any construction will occur in the 201617 fiscal year. Director Bill Cordwell wanted to know why the board was even considering a vote on the issue. “I feel like I’m in the twilight zone here,” he said. “We had all agreed to do this (at an earlier bud-

Honoring Anna Foultz

The Republican Women of Worcester County presented member Anna Foultz with a proclamation honoring her 90th Birthday and thanking her for her continued service to the community. Pictured are Pat Schrawder, Mary Pat Carozza, Anna Foultz and Carol Rose. get review session). To do a study over there…” he said. “We have no idea what this is going to cost. This might be $1 million to do two bathrooms and we might be able to do a while brand new building for a million and half. That’s the questions we need answered,” he said, adding “We can’t just go flying off and go do these bathrooms. I want an answer.” Cordwell said the board shouldn’t rush into the project without accurate information. Terry agreed that the motion to include the Beach Club project in the budget wasn’t really necessary but said all it really does is capture what the board agreed to during its budget talks. “This

just clarifies what we agreed to do.” He concurred that the board doesn’t have a good idea of the ultimate cost, but said including $525,000 in the budget for engineering and construction is a start. “It could end up being much more. No question,” he said, adding that the alternative is to simply put funding for engineering studies in the budget but not construction. Director Carol Jacobs said she is in favor of making the Beach Club “as good as we can make it.” But, she too, said there is no good information regarding the ultimate cost of the project. Collins disagreed, contending that the Sens Construction estimate was a good starting point for budgeting purposes.

10 Ocean Pines PROGRESS

By TOM STAUSS Publisher t’s only a $55,000 item in a capital budget of roughly $2.69 million, but General Manager Bob Thompson’s idea for a food truck to offer lunch items at the Mumford’s Landing pool, appetizers and other lighter fare at the Yacht Club in late afternoon and early evenings, breakfast at weekend Farmer’s Markets and food service at other events in White Horse Park consumed much of the available oxygen during 2016-17 budget deliberations in January and early February. In the end, however, the general manager’s initiative seems to be carrying the day, with a sufficient number of Ocean Pines Association directors apparently close to authorizing the expenditure as a new capital item in the budget to be officially adopted by the Board of Directors in late February. The estimated $55,000 expenditure would be costing property owners roughly $6.50 in their assessment in the new fiscal year that begins May 1, but Thompson has said that with, projected profits from the first year of operation, the net cost to property owners in the assessment would be only $1. As of Feb. 5, the board had not taken an official vote on the proposed capital item. Despite a flurry of nasty emails to

OPA BUDGET

February 2016

Proposed food truck for Mumford’s pool, Yacht Club, concerts still up in the air Thompson pushes back against ‘sensationalistic’ media coverage of $55,000 purchase the OPA and negative feedback on the oceanpinesforum.com Web site, Thompson was able to push back against the notion that the food truck was little more than a hot dog truck and will be a waste of money, doomed to failure in much the way the Java Bay Café in the old Yacht Club was perceived to be by many of its critics. Aware that the Java Bay café was criticized in part because its business rationale was lacking in specificity and never did produce much financial data to show whether it made money for the OPA, or lost a lot of it, as critics believe, Thompson offered a specific business rationale for the food truck in the budget

book he delivered to the board for review in early January. He vigorously defended that rationale in meetings with the Budget and Finance Advisory Committee, the board and finally in a budget town meeting Jan. 30. The directors took no action on the food truck as a budgetary item for 201617 in a meeting Feb. 5. Thompson’s business plan includes a precise forecast of profitability in the first year sufficient to pay for the $55,000 purchase cost of the food truck. His budget, part of his budget for the Yacht Club next year, predicts $162,400 in revenue for the truck, $56,840 in cost of sales, and labor of $31,516, for a net profit of $74,044. He subsequently hedged a bit on whether the truck would pay for itself the first year, telling board members that full payback might extend into the second year of operation. Contrary to initial reports that the truck would be parked exclusively at the Yacht Club, Thompson said it would be in much wider circulation. It will be parked at the Mumford’s Landing pool during lunch hours this summer. Menu items will include wings, cheese steak egg rolls, fresh garden salads, lettuce wraps, crab cake sliders, and Cuban paninis, ranging in price from $7 to $9. Hot dogs, mozzarella sticks, fried fish baskets, hot dogs and cheeseburgers for kids will range in price from $3 to $6. It will then be shifted to the Yacht Club, where it will be easily accessible to the outdoor deck in late afternoon and early evening. The menu will include coconut shrimp for $10, a fried seafood bas-

ket with shrimp, clam strips, calamari and fish for $12, a Hebrew National hot dog for $5, a pit beef sandwich for $12, a grilled sausage sandwich for $7, and a Cuban Panini with pork, swiss cheese, mustard and pickles for $9. The kids menu presumably will also be available. The truck also will also be open for business at White Horse Park, with breakfast items at the weekend Farmer’s Market, and snack fare during Monday movie nights and Thursday Concerts at the Park. There is even talk that the food truck will be open for business on the Ocean Pines Beach Club parking lot during parade events in Ocean City, assuming that the necessary permits can be obtained from resort officials. The general manager said initial coverage about the food truck in the media was sensationalistic and misleading, calling it a “hot dog” truck when in fact the menu to be offered is far more extensive. Thompson told the budget committee and directors that the truck idea grew out of notification from the county health department that it could no longer grill on the Yacht Club decking for safety and health reasons, at least without expensive modifications and the creation of a more permanent food service facility including refrigeration. The solution seemed to be a food truck that could be moved around at will, he said. OPA Directors heard from mostly negative Ocean Pines residents when word surfaced about the proposed food truck in the media. OPA President Pat Renaud, during board discussion in late January, said he had been told by members of the local Kiwanis Club that they weren’t pleased about the competition the OPA truck would pose to its hot dog sales at many local events. Thompson said that while he is aware of the service by Kiwanis, the OPA food truck will be going places the Kiwanis Dawg Squad does not serve, during hours it is not realistic to expect volunteers to work. At a public hearing on the budget in late January, Thompson poked fun at the critics by posting in his PowerPoint presentation a picture of a real hot dog truck, in a sausage-like shape, which he said was totally unlike the truck that the OPA will buy.

February 2016Ocean Pines PROGRESS 11

OPA BUDGET

Board approves OPPD participation in drug task force By TOM STAUSS Publisher fter determined appeals by Ocean Pines Chief of Police Dave Massey and county Deputy Sheriff Mike McDermott, the Board of Directors have approved a request by Massey and General Manager Bob Thompson to allow the Ocean Pines Police Department to participate in the county’s anti-drug task force. The action, taken during the 2016-17 budget review process, has budgetary implications for the Ocean Pines Association. Massey and Thompson persuaded the directors to increase staffing on the police force by one over the levels which have been in place for at least the past ten years. Massey told the directors in an appeal during a budget review session in January his plan is appoint an experienced current member of the Ocean Pines police force to the drug task force, which is under the direct control of the county sheriff ’s office with the close cooperation of the Maryland State Police. Because that Ocean Pines appointee will spend a fair amount of time working outside of Ocean Pines on joint agency anti-drug enforcement, Massey said there would be a manpower shortage that will need to be filled with one new hire. Thompson told the directors that if Massey comes to him with an increase for one additional employee to allow the OPPD to participate in drug interdiction efforts, he would trust the judgment of Ocean Pines’ chief of police. When some directors initially seemed to balk at the budget request for one new police officer, Thompson invited Massey to talk to the directors at a subsequent meeting to make a direct appeal. Massey told the directors that much of the county’s anti-drug task force’s case load involves the heroin epidemic that has made inroads throughout the Eastern Shore and elsewhere in the state. He said there were five deaths from heroin overdoses in Ocean Pines during 2015, and ten near deaths, two of which were averted because of the quick response time of Ocean Pines emergency personnel. Massey reminded the directors that he has never in his years as Ocean Pines police chief asked for additional personnel, and that he did so in this case because he truly believes Ocean Pines’ participation on the county task force, which also interacts with federal law enforcement agencies, will improve anti-drug law enforcement in Ocean Pines. While it “won’t stop heroin” or other illegal drugs “from coming into Ocean Pines,” Massey said the collective effort undertaken by a task consisting of multiple agencies, including all four municipalities in the county, will improve the

chances of interdiction. That’s because dealers may be based elsewhere and may be on the radar of the task force as it investigates cases in which drugs make their way into Ocean Pines. Massey said that while the salary of the OPPD representative on the task force will continue to be borne by Ocean Pines, his vehicle, office space and other expenses will be the responsibility of the county task force. Specific terms of the arrangement will be governed by a memo of understanding to be drafted, modeled after other MOUs in force with municipalities. The MOU will specify how any overtime will be handled, Massey said.

In addition to better anti-drug law enforcement, Massey said OPPD participation on the task force will allow the OPA to share in any asset forfeitures that occur as part of an arrest of a drug dealer. While he told the directors that recouping a share of asset forfeitures can be a time-consuming process, and that financial benefit should not be the primary reason for participating in the task force, forfeitures in future years can offset some of the additional expense incurred by the OPA by participating in the program. Initially, two of three Ocean Pines directors with backgrounds in law enforcement pushed back against the

proposal. Director Chery Jacobs, a parttime prosecuting attorney in Baltimore County, said that Ocean Pines’ share of any asset forfeiture could be minimal because in her experience federal authorities usually keep the lion’s share of forfeiture revenue. Massey noted that Ocean City recently received about $100,000 in forfeiture revenue from a case that was several years old. Director Tom Herrick, whose career with the New York state police including anti-drug enforcement, initially said he was reluctant to support the proposal because he was not certain that partic-

Directors endorse expansion of Ocean Pines police department by one

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OPA BUDGET

February 2016

Collins, Stevens question need for construction of new public safety building Board approves $75,000 in planning, engineering funds for enlarging police station, could also be used to study option for new building on OPA-owned property on Route 589 improvement plan unveiled by Thompson with release of the 2016-17 OPA budget in early January. The building as conceived would include a new police station, a new Southside fire station to replace the existing building, new office space for OPA administration, and a new command center for management during storm or other emergency situations. During discussion of the 2016-17 capital budget, Collins said he was struggling with the possible relocation of the police department to Route 589, along with “rolling in” OPA administrative offices and a new Southside fire station. He asked what the “scope and range” of a new building would be, prompting Thompson to say he “didn’t have a plan” at this time but said several “options

Task force

Also making the case for OPA participation was Deputy Sherrif Mike McDermott, who in an appeal to the board in late January said he was representing Mason. He echoedPRSRT arguments STD for OPPD participation made by Massey PRSRT STDand USPOSTAGE Thompson. USPOSTAGE In the end, theirPAID arguments were PAID MAILMOVERS persuasive. The board agreed to include MAILMOVERS the hiring of one additional police officer during a budget review session in late January, under the proviso that the arrangement would be evaluated after one year. The directors also authorized Thompson and Massey to draft a memo of understanding with the sheriff ’s department to govern the OPPD’s participation, including details related to asset forfeiture.

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From Page 11 ipating in a county-operated task force was something that was compatible with the function of a homeowners association. He noted that the OPA is not a government, and he expressed con11029 Racetrack Rd. cern that an Ocean 1 1029 Racetrack Rd.Pines police officer Berlin, MD 21811 would spending Berlin,be MD 21811 a lot of time outside of Ocean Pines investigating cases. Massey said that the officer assigned to the task force could be brought back into Ocean Pines if needed during emergency situations. Later, Herrick said he was softening his opposition to the request because of Massey’s arguments, especially his remark that he only rarely makes special budgetary requests of the board.

By TOM STAUSS Publisher lthough Ocean Pines directors have expressed skepticism about the need for a new public safety building on the Ocean Pines Association’s two-acre parcel on Route 589, just west of the Ocean Pines post office and library, funds likely to be approved in the 2016-27 capital budget could lead to exploration of that idea in the coming year. In a Jan. 28 meeting of the Board of Directors, directors Jack Collins and Dave Stevens wondered whether $75,000 contained in the capital budget for studying police station options could include planning, engineering and designs for a new public safety building. The possibility of a public safety building was raised in a draft capital

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OPA BUDGET Public safety

February 2016Ocean Pines PROGRESS

From Page 12 should be on the table” for dealing with congestion and safety issues in the current police station. Director Bill Cordwell said solving police station inadequacies was his number one priority as a director and that the board needs “to put more in the budget” to deal with them. Director Cheryl Jacobs asked Thompson for more detail on what he had in mind for a new public safety building. “I do have something in mind,” he acknowledged. “Being in Ocean Pines for 25 years, I do believe a public safety building is where I would go.” Jacobs asked Thompson if he had an alternative if the board decided not to plan, study or engineer a new public safety building. “We would definitely need to expand” the existing police station, he said, adding that as part of an exploration of ways to deal with the existing space and safety issues, “we will want to see what other police departments (in the area) have done” to deal with similar concerns. Terry said it’s not just police station concerns that should drive the planning process. “It’s also linked to what the (Ocean Pines Volunteer Fire Department) needs or doesn’t need,” he said. Stevens said that if the $75,000 con-

tained in the budget for police station options is fully funded, he would be concerned that “we’re going to get a design of a public safety building out on Route 589.” After Thompson said that “would not be our intent” if the full $75,000 is included, Stevens said that the general manager’s assurance had not “diminished” his (Stevens’ concern) about the way the money would be spent. He seemed to be implying that the money spent exclusively on the possible expansion of the current police station located in the administration building in White Horse Park. Stevens said that there already has been a lot of study about storm-water management for “this area” by the OPA, implying reluctance to spend more for a project that he doesn’t feel is needed. “$75,000 is a lot (of money to spend) if we’re not going to design” for a new public safety building in that area, Stevens added. The director also wondered whether the Ocean Pines Volunteer Fire Department really needs to replace the existing Southside firehouse, which dates back to the 1980s. He said, however, that he is aware that the OPVFD has been looking at the building’s possible replacement. So far, however, the OPVFD has not submitted to the board any rationale in writing for why the building might need replacement, or whether any issues with

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The Ocean Pines Garden Club held a candle lighting ceremony and luncheon meeting to install its 2016 officers Jan. 14 at the Ocean Pines Yacht Club. The new officers, shown left to right, are Meg Herrick, president; Mary Wentworth, co-vice-president (not shown is co-vice-president Margaret Yates); Linda Baker, recording secretary; Anita Roberts, corresponding secretary; and Barbara Ferger, treasurer. it can’t be addressed in a way other than possible renovation or replacement of replacement. the Country Club, these expenditures Terry pushed back against reducing “will take away from projects that we the $75,000 allocation, saying it could be need,” such as dealing with deficiencies used for studying “two or three options” with the existing space in the police defor providing more space for the OPPD. partment. That received a call out of apOne of those options could be to expand proval from Collins. the existing facility, Terry said, stopping OPA President Pat Renaud said well short of saying the new public safe- that including the full $75,000 in the ty building on Route 589 wouldn’t also budget “will have wasted money” if the be included. preferred plan is simply to enlarge the Jacobs expressed concern that with existing building. Terry responded that https://www.facebook.com/sunsetﬂoors21842 the OPA moving ahead on bridge re- including the requested $75,000 in the pairs, drainage improvements, bath- budget doesn’t mean it will all have to room renovation at the Beach Club and be spent.

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OPA BUDGET

February 2016 Ocean Pines PROGRESS 15

BUDGET NOTES

Ocean Pines residents who use the tennis courts at the Swim and Racquetball Courts overlooking the scenic St. Martin’s River will be pleasantly surprised: The Board of Directors is including up to $140,000 in the 2016-17 budget to resurface the courts, with the work presumably to occur so the courts can be used this spring and summer. In a late January budget session, Director Dave Stevens noted that the courts are in “bad shape” and are need of resurfacing. No other director disagreed with that assessment. General Manager Bob Thompson told the directors that if the courts simply could be resurfaced, the cost would be significantly less than $140,000. But he said it’s possible that the subbase under the top base has so deteriorated that it, too, will need to be refurbished before a top layer can be reapplied. Parts of the top surface will need to be removed to assess the condition of the sub-base, Thompson said, before it can be determined whether resurfacing the courts alone will restore the courts to a more playable condition.

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Owners of bulkheaded waterfront

property in Ocean Pines maintained by the Ocean Pines Association may sometime in the future experience a reduction in the portion of their annual assessment attributable to their contributions to the bulkhead/waterways reserve. The additional waterfront assessment over the base assessment levied on every property in Ocean Pines is sometimes called the waterfront differential. Any possible reduction in the waterfront differential won’t occur in the 2016-17 budget year that begins May 1, at least if General Manager Bob Thompson has his way. During a town meeting on the budget in late January, the general manager reiterated what he has said throughout the January budget review process. The waterfront differential can’t be reduced in 2016-17 because the OPA’s 35-year bulkhead replacement program – now in its 37th or 38th year – is not yet completed and the money from the differential will be needed in 2016-17 to finish it. With no new program in place and Thompson months away from proposing one and the board even further away from approving it, Thompson said a reduction in the 2017-18 water-

erosion issues around the large South Gate pond with an asphalt walking trail, General Manager Bob Thompson seems to be faring better a year later with a proposal to permanently fix areas especially prone to erosion, possibly using a material similar to that used at the Mumford’s Landing pool, Ruba-roc, rather than asphalt. The 2016-17 budget due for approval in late February contains $45,000 in capital spending for the pond erosion control. During the budget review process that took place throughout January and into the first week of February, directors seemed receptive to including the funds in next year’s budget.

front differential may be possible. Once a new program is drafted, vetted and approved, he said it would be possible to determine the proper level of the waterfront differential. The 2017-18 fiscal year isn’t fast enough for at least one Ocean Pines waterfront property owner, Gene Ringsdorf, who told Thompson at the budget town meeting that there is more than enough money in the bulkhead/waterways reserve to pay for the final year of 35-year replacement program. According to the reserve summary included in Thompson’s draft, this reserve is projected to hold $1.054 million at the end of the current fiscal year. Another $822,367 would be collected next year if the waterfront differential is fully funded as Thompson proposes. Next year’s replacement program is budgeted at $847,210. If the differential would be eliminated next year and the scheduled work completed at the budgeted cost, the balance in the bulkhead reserve at the end of the year would be about $150,000.

Skateboard ramp lighting meets resistance

Director Cheryl Jacobs during a budget review session in late January suggested that the 2016-17 budget include funding to add lighting at the skateboard ramp in White Horse Park, to allow for nighttime use, as already occurs at the nearby basketball court. She met what could be construed as surprising resistance from General Manager Bob Thompson, who said lighting the skateboard ramp for night use could pose safety issues and unintended consequences. He said the ramp

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From Page 15 now can be monitored during daylight hours from the nearby administration building, a service now provided without charge by Controller Art Carmine from his office window that looks out on the ramp. At night, when the administration building is closed, there is no one available to monitor activities at the ramp, Thompson said. He did not mention the ramp’s close proximity to the Ocean Pines police station. After Jacobs said she understood that the proposal to add lights to the ramp was more “involved” than she had originally thought, Thompson said he would ask the Parks and Recreation Department to look into the idea.

Java Café to reincarnate in new Yacht Club

Remember the Java Bay Café, the much maligned (or for some fans of wifi reception, much appreciated) “experiment” tried by OPA General Manager Bob Thompson in the old Yacht Club? Absent some last-minute decision by the Board of Directors to defund it in the 2016-17 budget scheduled for approval in late February, it will be coming back, sort of, this summer, albeit in a somewhat different form. The Yacht Club’s capital budget for 2016-17 includes $5,467 for café furni-

ture, in what’s identified as the Java Café project, a name that Thompson probably wishes he hadn’t allowed into supporting documentation included in the budget book. According to the capital project worksheet prepared by Yacht Club manager Jerry Lewis, the funding request is for five tables, 20 chairs and five umbrellas to match Yacht Club pool furniture. The café furniture will be positioned on the patio near the harbormaster’s office, to provide seating for a café and store that will sell items for boaters who use the Yacht Club marina in the morning hours. In discussions during budget review sessions in January, Thompson tried to steer directors away from the idea that the café is a reincarnation of the old Java Bay café, but coffee and pastries along with bait, tackle and other items used by boaters apparently will be available for purchase. The Yacht Club’s wifi no doubt will function out on the patio where the tables will be positioned. Also likely to be approved in the Yacht Club capital budget is new kitchen air conditioning equipment for $15,000, glass table tops for $4,770, a refrigerated work top for $4,094, and additional air curtains for fly control costing $1,200. Thompson also told the Board of Directors in late January that the Public Works Department would be building

OPA steps up enforcement of rules regarding properties in poor repair Board approves entering onto seven properties to fix or clean-up homes that detract from the neighborhood By ROTA L. KNOTT Contributing Writer cean Pines crews will enter onto seven properties that are in violation of the declaration of restrictions and rectify a variety of offenses that the property owners have neglected to correct despite repeated requests to do so from the Ocean Pines Association and its attorneys. General Manager Bob Thompson during a Jan. 28 meeting presented a series of properties to the board of directors for its approval to move forward with clean-up and repairs that the owners have failed to make. He said the

board had already reviewed each of those properties and forwarded them to legal counsel for action. However, even letters from the attorney failed to prompt the owners to remedy the violations. So instead the attorney outlined the action the OPA can take to bring the properties into compliance. The list of lingering problem properties once again prompted Director Tom Terry to call for changes to the OPA’s process for pursuing g those who violate the restrictive covenants. He said many times violations are waiting too long to be acted on by the OPA. The OPA owes To Page 22

room partitions for the lower level of the Yacht Club that would break the room into three sections for more intimate seating. Director Cheryl Jacobs urged Thompson and her board colleagues to include money in the 2016-17 budget for Yacht

Club accessories, to make the building more appealing and to counter the opinion of some people that the lower level restaurant resembles a cafeteria. It’s possible some additional money will be added to the budget to make that happen.

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From Page 16 it to the broader membership to change the process to expedite action on properties that are in violation, he said. Director Jack Collins asked about the possibility of collecting funds expended for the clean-up. He said he is in favor of taking on clean-up of properties where the owner has failed to do so, but he wanted to know the associated cost because the board has a fiduciary responsibility to the entire membership. Terry said the cost is largely irrelevant. He went even further and suggested the board include funds in the OPA’s annual operating budget to cover the cost of cleaning up and rectifying violations on properties. “The reality is we need to defend our members from this kind of intrusion,” he said. Collins supported Terry’s comments. “I will endorse wholeheartedly his effort to put money into the budget in order to keep this community clean,” he told his colleagues. Director Dave Stevens also supported initiating clean-up of properties in violation of the restrictive covenants but he said there has been talk by the board for years about shortening the process for doing so. This time he said wanted a “very specific” plan regarding how to do so. Director Carol Jacobs also said she supports finding a way to expedite the

enforcement process but wouldn’t agree to “pick up the tab” for cleaning up every property that violates the declaration of restrictions. She said there should be a process for differentiating between properties that are in foreclosure or a similar circumstance and those where the owner just doesn’t want to follow the rules and lets the OPA do the work for them. “I think it’s appropriate absolutely to shorten the process,” Jacobs said. “But let’s not be too hasty about saying we’re going to pick up the tab for everybody.” Jacobs asked Thompson to identify which of the properties are in foreclosure. She said it would be helpful to have that information. Stevens asked her how it would be helpful. Jacobs said it’s appropriate when the board decides to spend money on a property to know if the association is picking up the tab for people who just don’t want to clean up their property. Stevens said it’s irrelevant whether it’s a property in foreclosure or “just somebody who doesn’t feel like doing it.” The process for enforcement is the same. “Is there another action we could take other than doing what’s in front of us? Our lawyers have told us no,” he told Jacobs, herself a lawyer. Still Jacobs said she wants to know the cost to the OPA. “Believe me I think it’s totally appropriate that we have community looking

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St. Martin’s drainage project gets OPA board go-ahead Thompson says street will remain open during work By ROTA L. KNOTT Contributing Writer hile no funding for the project was included in the current Ocean Pines Association budget, the board of directors has opted to undertake a major effort to correct drainage problems on St. Martin’s Lane. During a Jan. 28 meeting, directors voted unanimously to move forward with the project and approved a contract with Terra Firma of Delmarva at a cost of more than $35,000 to do the work. OPA General Manager Thompson said no funding was allocated in the fiscal year 2016 association budget for the drainage work but it is a project that was identified by the OPA’s drainage working group and that group is asking for a remedy to be implemented. “It’s an unbudgeted, unfunded re-

quest for this year,” he said, adding that drainage in that area is a serious concern. He asked for board guidance regarding whether or not to move forward with the work now or to “if it’s hold off on until next year and put it in the fiscal year 2017 budget. Thompson originally presented information on the project to directors at their December meeting. He brought it back to them in January for consideration “to see if the board had interest in doing it or not doing it.” Board members agreed that it is important to move forward with the project. Director Bill Cordwell offered a motion to accept the bid, one of just two received for the project, and Director Jack Collins gave a second. The OPA partnered with Worcester

as good as can be,” she said, but added that she feels properties in foreclosure should be treated differently than those whose owners just don’t want to take care of them. Terry said right now the existing enforcement process treats every lot owner the same. Maybe in a new process the OPA can treat foreclosed properties differently than someone who is just not keeping up their property, he said. “However all of these been through process,” he said. “So in my mind it’s time to take action on these.” Collins asked if the OPA has the right of offset to cover any debt owed to the association if it removes property from a lot that is in violation of the restrictions. Thompson said he would explore that issue with legal counsel. He also told Jacobs that he would inform the board if any future property that he brings to the board for enforcement action is in the foreclosure process. Generally, a foreclosed property that ends up in the inventory of a bank is more likely to be repaired at its expense, with fewer issues. At 44 Harbormist Cricle, Thompson said the property is in foreclosure but has not yet been sold. The violations included debris and a mold covered boat on the property. Thompson said OPA would have its crews enter onto the property and remove the debris and will hire someone to wash the mold from the boat. The property owner will be billed for the associated costs. Thompson said even through the property is in foreclosure the bank has not taken control of the property yet, so the owner of record with the association is still the owner at this time. “At this point we’ve exhausted everything we can to make this work,” he said, adding that there is no guarantee that the funds expended on clean-up will be recouped but the OPA will file a

lien on the property if necessary. The board approved allowing crews to enter onto the lot at 60 White Sail Circle to clean up and remove lumber and debris on the site and to relocate items like a large ladder to less visible area. At 142 Windjammer the board approved having crews relocate a pallet of shingles to the rear of the lot, clean up debris in the yard and powerwash the shed. The board agreed to have crews remove a pile of trees and limbs from 42 Bramblewood and relocate items listed as personal property by legal counsel to less visible areas to the rear of the home. Thompson said an additional violation for having a trailer on the property also exists and is working its way through the enforcement process. The home at 15 Castle Drive is in the foreclosure process but has not yet been sold, according to Thompson. The board authorized having crews remove or repair tore screens on the back of the home and clean out and repair damaged gutters. The property also has a violation for construction of a deck without a permit that has not yet been resolved. Thompson said the home at 65 Boston Drive has been foreclosed and is owned by a bank. The board agreed to have crews repair or remove a fence and basketball pole on the property. The board authorized having siding repaired at 745 Ocean Parkway to prevent further damage to the home. Thompson also presented three properties with new violations to the board for review. At 47 Robinhood Trail, there are multiple sheds on the lot in violation of the restrictions. A shed needs to be painted the same color at the house at 43 Capetown. At 30 Falconbridge a propane tank was not properly screened. The board opted to have legal counsel send letters to all three owners.

22 Ocean Pines PROGRESS Enforcement

BOARD OF DIRECTORS

Drainage project From Page 22 County public works to develop plans for correction of the stormwater problems on St. Martins Lane. The project involves replacing the existing 15-inch diameter drainage pipes that cross St. Martins Lane with a larger 24-inch diameter pipe. Typically the OPA’s public works department can address drainage related issues in-house by closing off road access, but this time the association opted to hire a contractor to do the work. Because St. Martins Lane is a main thoroughfare and serves as the only truck entrance to Ocean Pines, closing the road isn’t an option. “That’s the truck route. That’s the route for the main heavy equipment. So we can’t close that road,” Thompson said. At Thompson’s request, the board approved up to a ten percent variance in

Herrick proposal to study possible hiring or outside firm to manage OPA fails in 4-3 vote Majority directors call motion an attempt to force out sitting General Manager Bob Thompson tion, “ he said. After some contentious debate, four directors – OPA President Pat Renaud and directors Cheryl Jacobs, Tom Terry and Bill Cordwell - voted against the proposal. In favor were Herrick and directors Dave Stevens and Jack Collins. The 4-3 vote represents a clear factional divide on the board – one that could be described as pro-Thompson and the other that seems disenchanted with his management style or perhaps his vision for Ocean Pines. Herrick argued that because the current employment agreement with Thompson is up for possible three-year extension in April, it would be prudent to consider options should either the board or Thompson opt not to renew or the project cost. He asked for the leeway in case more work is required than currently is anticipated. “I just don’t want to start a project, especially one that is going to create some challenges with the passage of the roadway there,” he said, citing “unknown factors” such as utilities. Until contractors actually start digging, they will not know for certain how to best grade the slope for maximum drainage. Additionally he said he has talked with county representatives who don’t know “exactly what’s under that roadway.” Regarding the ten percent project cushion, “I think that’s very reasonable,” Collins said. Director Dave Stevens asked how the project will be funded. Thompson responded that the board will have to tell him that. “I would assume the historic reserve but that’s a board decision,” he said. Directors unanimously agreed.

extend. The current employment agreement between the OPA and Thompson says that both parties will provide in writing their intent to renew the contract for an additional three years, negotiate a new contract or not renew or negotiate. “I believe this is an extremely important decision the board must address in the near future,” Herrick said, adding that the board should act in best interest of the association, review as much information as possible and consider all possible alternatives before proceeding with any contract renewal or negotiations. “In light of the duties outlined in the aforesaid contract relative to the renewal notification and the fact that the general manager himself has the right to sever employment with our association, it is our obligation to prepare and protect our association for any scenarios

that may occur,” Herrick said. He wanted the study to be complete by early April so in could be considered when the board discusses the general manager’s contract. Director Dave Stevens gave a second to Herrick’s motion, and both he and Director Jack Collins said little during the discussion but ultimately voted in favor of the proposal. Other directors immediately went on the attack. Director Bill Cordwell said he believes any discussion about renewing or not renewing the general manager’s contract, and any management alternatives, should be held in April. He went on to cite a litany of items that he believes Thompson has done well and ways certain board members have intentionally acted to impede the general manager’s success at managing the OPA. “My opinion is this is another attempt to circumvent and let’s go after the general manager and see if we can get him to leave. That’s my opinion,” Cordwell said. Herrick balked at that, saying Cordwell was talking about an evaluation of the general manager in an open forum and that was not appropriate or the intent of his motion. He said it was disrespectful to Thompson and should be done in closed session. The prompted Director Carol Jacobs

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By ROTA L. KNOTT Contributing Writer alling it an attempt to oust the current general manager, a slim majority of the Board of Directors shot down a proposal to study the potential for contracting with a private management firm to run the Ocean Pines Association. The author of the motion, Director Tom Herrick, argued that it was simply an attempt to garner information that could be useful should General Manager Bob Thompson’s contract not be renewed for any reason, but a majority of directors didn’t buy his argument – or that he came up with the idea on his own. During a Jan. 28 board meeting Herrick offered the motion to establish an advisory body to investigate and provide information relative to the feasibility and value of employing a professional community management firm to provide executive manager of the association. “The purpose of said advisory body will be to gather information and intelligence in order to establish the feasibility and value of entering into contract with a professional community management firm which will administer, manage and conduct the operations of the associa-

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Outside management From Page 23 to chime in and argue that the entire discussion about Herrick’s proposal should have been held in closed session. “We’re not discussing his performance or evaluating his performance,” Herrick responded. He said his motion was not a discussion of the contract but just what the contract allows the board and general manager to do. “To discuss the performance of the general manager is not what this is,” he told Jacobs. Jacobs wanted to know if the basis of Herrick’s motion is his belief that the general manager is going to take advantage of his options and not renew his contract. She asked if he had spoken with Thompson. Herrick said Thompson told him some time ago that if certain people were elected to the board that he would resign. “That was alarming to me,” he said. “I don’t know if that statement is true or not, only he can attest to that.” But he said it was alarming enough to him that it prompted him to consider what would happen if the OPA was without a general manager. “No one can predict the future,” he said. “All this does is prepare us in case something happens.” He said investigating the potential for retaining a professional management firm simply gives the association another viable option. “If you ask him, you will know wheth-

er or not there is some uncertainty in our future,” Jacobs responded. “If you bothered to ask him what his intentions are, you wouldn’t have to base it on some statement that you said was made two years ago.” Jacobs and Renaud asked Thompson if he would stay on as general manager if offered an extension or new contract and Thompson said he would. That meant little to Herrick, however. Herrick said no one knows “what the new board will bring in” after the August 2016 election. “That may change the situation. We don’t know if it will or not.” He seemed to be suggesting that the election could produce a board that wants an alternative to Thompson as general manager, although he did not say that specifically. He reiterated that all he is asking for is information that can be garnered by an advisory body at no cost to the association, “like any other advisory committee that we employ to give us information.” He said it is inappropriate for the board to rubber stamp one of the options – by that he apparently meant a threeyear extension -- in the current general manager’s contract without exploring other options. Cordwell said general managers have come and gone over the years and this issue has never come up before. “We’ve lost general managers before. This isn’t new.” When such vacancies occur, the normal practice has been for the OPA president to serve as an acting gener-

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al manager during the period when a constantly snipping away and hacksearch is conducted for a full-time re- ing away at our administration” under placement. Thompson’s leadership. He called the To consider the possibility of chang- motion “completely out of line” and that ing the management structure of Ocean it had “nothing to do” with the expiraPines as it has existed for the last 40 tion or possible extension of the general years, “I think is ridiculous,” Cordwell manager’s contract. said. “The reality is general managers Stevens supported the motion, back- have a right to leave at any time they ing Herrick’s contention that it was only wish and boards of directors have a right designed to gather information. “It’s to fire a manager any time,” he said. something that’s in our bylaws as an opTerry said he would “give (Herrick) tion. And it’s something that to the best the benefit of the doubt” with respect of my knowledge that we have never to his motives for bringing up the idea fully explored. It’s not about the general of outsourcing of OPA management. He manager’s performance. It’s not about said he believed Herrick had come “up getting rid of the general manager. It’s with the proposal on his own.” not about whether the general manager But then Terry seemed to contradict will stay or not stay. It’s not any of those himself, adding that the proposal “didn’t things,” Stevens said. all come up with your brain and your There is uncertainty with general knowledge that you’ve gotten since last managers, he said, adding that he has August of what’s going on in this comseen them leave and be fired abruptly munity.” and without notice. “I’ve lived through The motion wouldn’t just have an imthis.” He said Herrick’s proposal would pact on the general manager but every help the association reduce that uncer- employee of Ocean Pines, Terry said, tainty in the future or to deal with a va- suggesting that all current OPA “posicancy if and when it occurs. tions would be outsourced. Do we have He accused other directors of trying a good record of outsourcing anything to “paint it different” and “do all of those around here?” divisive things,” repeating that the moTerry said for a variety of reasons tion is really only about getting informa- he would not support Herrick’s motion, tion. including that it adds to the constant Terry wasn’t buying that explana- upheaval in the community. “I think it’s tion. totally inappropriate and misguided,” He said the community – by which he added. he Complete seemedHome to mean the board minoriJacobs agreed with and 1508 Improvement Handout NEW with our type_Layout 1 2/3/15 1:22 Terry PM Page 1 said ty - seems to want to make a “sport of the premise of uncertainty is “hogwash.”

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BOARD OF DIRECTORS By ROTA L. KNOTT Contributing Writer ith the lone bid for the project coming in at nearly three times the budgeted amount, the Ocean Pines Association is revisiting the construction of eight new pickleball and four paddleball courts as part of a reconfigured Manklin Meadows Recreation Complex. The single bid received came in at $748,000, roughly three times the budgeted amount. General Manager Bob Thompson during a Jan. 28 meeting told the Board of Directors that a request for proposals to complete the entire project, including site work, court construction, playground relocation and community gardens reconfiguration, came in significantly higher than anticipated. Primarily the cost of site work is what drove up the bid, he said. “We only had one bid when we put the project out,” Thompson said. “We’re kind of backing off to figure out how we might be able to address this in phases to still accomplish what we need to accomplish but to get more definitive pricing if we were to carve it up in phases.” Instead of trying to tackle the entire project at one time and at three times the anticipated cost, Thompson said it may be more practical to complete the work over a two-year period using several contractors. That would reduce the sum the OPA needs to expend at one time and may encourage interest from

February 2016 Ocean Pines PROGRESS

Manklin Meadows project stalled by sky high single bid Thompson looks to carve project into more manageable pieces other companies. He said he is working with a couple of contractors to see if the project can be carved into several pieces and what that would mean for pricing. He said he would have a proposal to provide to the board for consideration at its February meeting. That left at least one director confused. “Bear with me, Bob. I don’t understand,” Director Jack Collins told Thompson. “I thought we were building pickleball courts and platform tennis courts. What do we have to carve up?” Thompson reminded Collins that the board voted last year to approve moving forward with plans to build the new courts, but also to relocate the playground and reconfigure the community gardens to accommodate the courts. The project also necessitates changes to the parking, stormwater management and other site work. He said the OPA moved forward with the entire project to garner county and state approvals. But when it was put out for bid late last year that’s when the price came in higher than expected.

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“It’s only one bid. I can’t bring to the board one bid,” Thompson said. Directors wanted to know how it can cost so much to build eight pickleball and four paddleball courts. But Thompson said it is not the cost of the courts that is higher than expected. “The stormwater and earthwork is really where the numbers have escalated far beyond what we had anticipated. That’s the biggest piece,” he said. Stevens asked how many new courts were included in the plans that were put out to bid. Thompson responded that it is either four or eight pickleball courts, with the base being installed for all of them but only the paving on four courts. “I didn’t bring the entire breakdown because we’ve been over it several times.” Stevens bristled at that comment, saying “Excuse me, we have not been over it at all.” The last time the board addressed the project in any detail apparently was last July, before the new board was organized after the 2015 OPA election. “We actually have. I can bring up the other meetings Mr. Stevens. This isn’t

new,” Thompson responded. “One of the things we looked at when we bid out the whole project was we looked at everything inclusive of all courts.” Director Cheryl Jacobs said the project was approved by a previous board not those who are currently sitting. “This has not been something that was presented and voted by this board,” she reminded the general manager. Thompson said it is an approved project regardless of which board did the approving. However, he said he could bring the entire project back to the board for review in February if directors so desire. The project is now well behind schedule. Back in July, Thompson said he hoped to have county and state approvals by the first of October, contingent on decisions by the notoriously slow-acting Maryland Critical Area Commission. The plan was to seek bids in late fall, with construction to take place this winter and early spring. That timeline now looks unlikely at best. The lone bid received by the OPA also showed original cost estimates for the work to be overly optimistic. Thompson had estimated construction of all of the amenities included in the full master plan at $339,550, while an alternative plan for four pickleball courts was about half of that cost. The overall master plan cost estimate included $161,927 for building all eight To Page 26

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BOARD OF DIRECTORS

February 2016

Consultants prep comp plan survey for distribution to all OPA members Board ponders merits of electronic versus traditional paper surveys

By ROTA L. KNOTT Contributing Writer very Ocean Pines Association member will be asked for their input on future facilities priorities and community needs on a survey to be distributed in April as part of a comprehensive planning process. Just how that survey will be provided to members, whether it is via electronic media or good old-fashioned paper, is still up for debate. Consultant Memo Diriker, director of BEACON, the Business Economic and Community Outreach Network at Salisbury University, and members of the

OPA’s Comprehensive Plan Committee met with the Board of Directors Jan. 28 to discuss the survey process. Chairman Steve Cohen said the committee hopes to have a final list of proposed questions to forward to the board in February. Once the board signs off on the questions, which will include some basic demographic data and well as opinions about the future needs of the community, the survey will be sent to members, with April the target. He anticipated having the survey responses due back in May and the results available sometime in the summer. In the meantime, the board has to determine how it wants to distribute the surveys to the owners of more than 8,000 properties in Ocean Pines. OPA President Pat Renaud said Di-

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riker is experienced in managing a survey distribution. 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 variety of community planning scenarios. He asked Diriker to explain to the board the available options for distributing the survey. Diriker said BEACON’s recommendation is three-pronged. He suggested making the survey available online to those who have Internet access, providing a kiosk at the Community Center or OPA Administration Building so those members without online access can come in and complete the survey online, and mailing hard copies of the surveys to those who request them. “That way everybody’s covered,” he said. “To be able to accomplish that it might be a good idea to send a postcard to everybody explaining when the survey is going to take place, what their three options are and let you all know which of the three options they want to use.” While that is BEACON’s recommendation, Diriker said his organization is ready to proceed in whatever manner the OPA board determines. Directors allowed property owner Joe Reynolds to comment during the discussion. Reynolds said he is concerned about using a variety of methods to collect the surveys, which could result in property owners simply not participating. “If you give people three options, some of them may take no option,” he said. If conducting the survey is really

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important to the comprehensive planning process, then there should be no options for voting; everyone should receive a paper ballot just like they do for OPA elections, he said. He acknowledged that will be more expensive than an online version and could cost $10,000. “If this is our future, if it is one of three legs on a stool, if it’s that important let’s mail it to everybody. That way there’s no question. You’ll get a response,” Reynolds said. Renaud responded that many “people don’t deal by paper anymore.” Younger property owners are more likely to respond via an online survey than to a paper one, he said. “I believe we have an educated community of involved association members and I think we ought to extend that paper to them and receive back their responses,” Reynolds said. Otherwise, he said there could be doubt about the validity of the process. Diriker said that the decision is up to the OPA. “Whatever the decision is, we are ready, willing and able to do it.” But he said that even if a hard copy of the survey is sent to every property owner, BEACON still recommends making the survey available online. The surveys could be uniquely coded so members can only complete them one time, he said. Director Jack Collins asked Diiker what type of return rate the OPA should

Manklin Meadows From Page 25 pickleball courts, with site preparation and asphalt paving, fencing, lighting, painting, nets and poles. That pricing also incorporated $32,000 for the playground relocation, which Thompson last year said would be completed regardless of whether or not the rest of the Manklin Meadows project moves forward. During the January meeting, he didn’t indicate whether moving the playground equipment would be an initial phase that could be done in the near future. But that seems reasonable, as very little could be elsewhere if the playground is not moved. Portions of the playground structure are deteriorating and need to be replaced. The paddleball or platform tennis portion of the master plan was estimated to cost $95,123, including site preparation, asphalt and lighted courts. General project costs accounted for another $82,500 and covered site preparation, engineering and a five percent contingency. As an alternative solution to building the entire master plan in one project, Thompson also submitted a proposal to only construct four of the planned pickleball courts, but the board last summer seemed to go along with his preference for all eight. Last year, he said the goal was to get the project started even if that means building it in phases, adding that he believed it would be better to move forward with the entire project at one time. The real world apparently makes that approach untenable.

By TOM STAUSS Publisher n one of its first visible efforts to rebuild golf membership in Ocean Pines, Landscapes Unlimited, the Ocean Pines golf course management company, has announced a policy change for member golfers who prefer to walk while playing their rounds. Scott Nissley, LU’s regional manager, during a Jan. 21 town meeting called to discuss the company’s business plan for the coming year, announced that golf members – those with pre-paid annual memberships at the Ocean Pines golf course – will be allowed to walk the

Comprehensive plan From Page 26 expect for the comprehensive plan survey. “Based on your experience what’s the return rate? What’s percentage do you get back from those emails and or mailings?” Because the survey will be distributed to every OPA member, instead of just a sampling, Diriker said the rate should be fairly high. For the survey to be considered statistically valid a response rate of about 17 percent is needed. However, he said he has a lot more confidence in a survey when it reaches a 20 to 24 percent response rate. “But you will get more than that because you’re not sending it to a sample

February 2016 Ocean Pines PROGRESS

LU to allow golf members to walk course mornings Monday through Thursday In town meeting, LU executives talk of creating a ‘culture of appreciation’ in effort to rebuild membership course anytime in the morning from Monday through Thursday. This is a change to the previous policy, which re-

quired carts for everyone who played the course in the morning. Nissley said the policy change, de-

of the population. You’re sending it to a census of the population, Diriker said. He said BEACON will run a model on the survey responses to determine if any particular demographic group has over responded and if they are directing the results in one way or another. Director Tom Terry asked why the board should have final approval over the questions to be included on the survey. Diriker said the survey is designed to inform the decision-making process of the board. “This board will be making decisions and to make best decisions need as much information as possible,” he said. “It is not to inform the communi-

ty. That can be done in other ways.” Director Dave Stevens asked why the sample of survey questions presented to the board didn’t include any demographic data collection. Diriker said the final version will include demographic questions, including whether or not the respondents rent their home in Ocean Pines or are the property owners. 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.

signed to make a golf membership in Ocean Pines more desirable, does not apply to golfers who elect to pay to play the course by paying per-round greens fees. Non-member golfers will continue to be asked to purchase a golf cart to play the course in the morning. Nissley said that if the policy change works as LU hopes, the company will consider adding days of the week when the morning walking policy will be available to golf members. The Monday through Thursday schedule was chosen as a way of testing the impact of morning walking on the pace of play. “We will analyze Friday through Sunday,” he said. “We wanted to start slow” According to Ocean Pines Director of Golf John Malinowski, the change was made to make membership at the course more appealing to those golfers who prefer to walk rather than take a cart. “While most golfers use carts when they play, we know that there is a portion of our golfing community that likes to walk. Although walking has been allowed in the afternoon, it hasn’t been in the morning. Offering the option to walk all day is a great incentive for this group of people to purchase a membership at the course,” Malinowski said. Nissley and Malinowski told the group of assembled golfers at the meeting that the policy change was prompted by “several individuals” who told LU that the riding-only policy in the mornq

GOLF

28 Ocean Pines PROGRESS February 2016 Golf course walkers From Page 27

ing was a deterrent to buying a membership. The hope is that once the news circulates that Ocean Pines is now open to morning walkers, former members who left when the old policy was imposed will rejoin, reversing the trend of declining golf membership in Ocean Pines. Nissley used most of his floor time at the Jan. 21 town meeting to explain and defend his company’s efforts to boost membership, which has fallen to 118 memberships, 22 member passes for golf carts, and 19 lifetime members. He confirmed that his company’s plan for the coming year is for a net increase of ten memberships, after factoring in the typical loss of 20 to 40 memberships in recent years. “We’re going to recapture the loss and add ten more,” Nissley said. The Ocean Pines working group that supervises LU -- OPA General Manager Bob Thompson, OPA President Pat Renaud, and directors Bill Cordwell and Tom Terry – had advocated a net increase of 30 or 40 memberships in the next year. The membership plan contained as part of the business plan settled on the net increase of ten, however. Nissley suggested that to strive for more would essentially be unattainable given the typical attrition that occurs in a course with an aging membership base. Lynn Schneider, president of the

GOLF

No decision yet on GM recommendation not to fund new golf carts

By TOM STAUSS Publisher he Board of Directors has not yet accepted the recommendation of General Manager Bob Thompson not to fund the purchase or lease of new golf carts in the 2016-17 budget, despite the recommendation of the golf course management company, Landscapes Unlimited, and Golf Pro John Malinowski, that 75 new carts are needed. The dispute, laid out in detail during a town meeting on the golf course Jan. 21 in the Ocean Pines Community Center, may still be resolved in Thompson’s favor by a board majority.

Thompson had argued that batteries were replaced three years ago and should be able to last another year and the seating in the Yamaha carts was replaced last year, in the hopes of extending the carts’ useful life. So far, the directors have said little about whether they will side with Thompson or LU. The exception is Director Jack Collins, who has urged the board to accept a leasing plan offered by LU as an alternative to outright purchase. At the Jan. 21 town meeting, Landscapes Unlimited Regional Manager Scott Nissley pulled no punches in ex-

plaining why LU is recommending a new cart fleet in Ocean Pines. He said the batteries replaced “about three years ago” were of the type that only last three years and contain older technology. He said that cart manufacturers, who three years ago were still powering carts with six eight-volt batteries, have moved to carts that contain four 12-volt batteries that last four years. Nissley also said that the Ocean Pines fleet, purchased back in 2009, requires expensive mechanical and cosmetic repairs just to keep them operational. But he said the fleet might be able to make it through another summer in part because the number of carts actually needed on most days is closer to 65, meaning that some carts can be out of commission. The LU request that Thompson did not include in his draft budget unveiled in early January was for roughly $300,000, including trade-in of the existTo Page 30

Women’s Golf Association, told the LU executive that Ocean Pines lost ten 30-round limited play memberships because nine-hole golfers didn’t like a change in the way the membership was applied to them. She suggested that LU design a membership for nine-hole golfers. Nissley responded that, under previous management, nine-hole golfers

who had purchased the 30-round limited membership were given the privilege of playing 60 nine-hole rounds. “The limited membership was never designed for 60 rounds,” he said. “Somebody in the golf shop said you (nine-hole golfers) could do that.” Schneider didn’t try to convince Nissley of the merits of the old policy. “We need 9-hole memberships is the point,” she told him. He didn’t indicate whether LU would come up with a nine-hole membership, but all four members of the monitoring group were on hand and probably could push a nine-hole membership through in time for this summer if they think it’s a good idea. Nissley told the group that the thrust of LU’s membership rebuilding plan is to improve the member experience by “developing a culture of appreciation” for members. Components of that plan include member golf events and social events, as well as an incentive plan for current members to bring in new members. He said LU intends to host at least one social event per month for members, even during the winter months. Other components of a membership program include guest passes for members and allowing members “to get off the cart paths” when non-members are requested to stay on them, Nissley said, adding that the objective is to come up with ways to increase “member value” so current members remain as members and new ones join. In response to a question, Malinowski said the intent will be for the pro shop to be more hands-on with member-organized tournaments and competitions, not to replace volunteer assistance but rather to work hand-in-hand with it to make events work even more smoothly than have in the past. Both Nissley and Malinowski emphasized their intent to lessen the impact of outside, non-member play on golf members, even if it involves allowing golfers

to tee off on holes numbers four or five if non-member play is booked for early morning tee times. While not guaranteeing a tee time for every member who wants one during the months when outside play is most critical, they said the pro shop will make every effort to accommodate anyone who wants to play the Ocean Pines golf course when they want to. Sometimes, it might not be possible so golfers will be encouraged to accept a tee time when the course is less congested, they said. In the question-answer segment of the meeting, Cordwell, one of the members of the golf monitoring group, expressed concern that LU was cutting back on maintenance of the course in order to make the bottom line numbers look better. He said $749,000 is budgeted in the current fiscal year for golf maintenance, but that the proposed budget for the fiscal year beginning May 1 that drops to $679,000. “You’re starting to scare me again,” Cordwell said, also telling Nissley that he had heard that LU was anticipating the time when LU would “get rid” of Rusty McLendon, the golf course superintendent, as a way of cutting maintenance costs. Nissley responded that once a golf course has been restored to optimal condition, it doesn’t take as much to maintain it. He said the OPA had “wasted” a lot of money over the years on maintenance because budgets allowed it. “If somebody has $800,000 to spend on maintenance, he’ll spend it,” Nissley said. He also said LU had “no intention of getting rid of Rusty. Why would I do that?” he said, telling the assembled golfers that while he couldn’t guarantee that McLendon would stay, “there is no compelling reason” to fire him. He complimented the superintendent for being “a great team player” and for his knowledge of the Ocean Pines golf course.

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GOLF

February 2016

Directors reluctantly accept LU’s optimistic budget forecast By TOM STAUSS Publisher espite angst among some directors that Landscape Unlimited’s proposed golf operating budget for 2016-17 is much too optimistic in its projected loss of only $83,000, it appears that the Board of Directors will “accept” the budget as proposed and then hold the company “accountable” if it misses the target. Director Tom Terry throughout the budget review process in January has criticized the proposed LU budget, particularly the portion that involves projected revenue. Terry has insisted that the number of rounds in LU’s business plan for next year don’t in any way match up with the projected revenue, an analysis that has not been effectively rebutted by LU officials. Indeed, in one meeting with the Board of Directors, LU Regional Manager Scott Nissley even acknowledged that some of the estimates in the business plan for the number of projected rounds might need revision, while at the same he stood by his bottom line projection for the year. Another Ocean Pines Association director, Bill Cordwell, has focused much of his attention on what he believes is LU’s unrealistic projections for golf course maintenance, expressing fear

that it is underfunded and could put the condition of the golf course at risk. Cordwell even went so far as to express concern that LU executives were preparing to “get rid of” course superintendent Rusty McLendon. Nissley pushed back against Cordwell’s concerns in several recent appearances in Ocean Pines. He said that lower maintenance costs are possible once a course is brought into optimal condition, and that in the years that the course was operated by others a lot of money was “wasted” on golf course maintenance. He also said there is no reason whatever for LU to “get rid” of McLendon, who he described as a “team player” and someone with a lot of expertise and experience in maintaining the Ocean Pines golf course. LU proposes revenue of $1,257,667 for 2016-17 and expenses of $1,341,045 for 2016-17, for an operating deficit of $83,378 next year. If the target is met, it would be the lowest operating deficit for golf in Ocean Pines for many years. Billy Casper Golf ’s last operating deficit in Ocean Pines for the 2014-15 fiscal year was about $118,000. The OPA administration is projecting a loss of about $150,000 this year in golf, while LU is projecting a loss of $93,566. The dueling projections suggest that

LU and OPA management have widely divergent views on how well the management company is performing in Ocean Pines since it assumed day-today control over the golf in spring of last year. During a Jan. 26 budget review meeting, Terry reiterated that he didn’t believe an $83,000 projected loss made sense, noting that over a year ago the board had engaged in a “spirited argument” over whether the board should accept a budget forecast offered by Billy Casper Golf.

Director Cheryl Jacobs asked what the impact on the lot assessment would be if the board decided not to accept the projected loss. No one responded directly, but the impact would be an increase in the assessment over what it would be otherwise. Terry went on to say that for the past four years, boards have accepted the budget numbers presented by the golf course management company. Direct Jack Collins said “it’s their budget. They have to live with it and make the budget,” so he suggested that the board simply “leave it alone.”

Golf carts

years of service.” LU recommended that the OPA replace the fleet of 75 Yamaha carts dating to 2009 with new 2016 carts. According to LU, the current fleet has a trade-in value of $750 each, or a total of $56,250. LU said in its business plan that a new fleet equipped with heavy-duty batteries should last five years, citing the company’s experience with carts at its Renditions course in Davidsonville, near Annapolis. During the Jan. 21 town meeting, Nissley said the life of the new batteries was four years, not five. The company estimated the cost of replacing the existing fleet with tradeins at $297,157.50.

From Page 28

ing fleet. A subsequent proposal by Nissley included options to lease the carts at a cost of roughly $50,000 per year. The recommendation to purchase 75 new golf carts appeared on page 31 of LU’s business plan for golf course operations in 2016-17, which in turn was included as part of Thompson’s draft budget but without his endorsement. According to the business plan, LU is urging the OPA to replace its 2009 model year golf cart fleet because “the batteries will not perform another year.” According to LU, “various cosmetic features and mechanical issues of the carts are compromised by use throughout six

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OPA FINANCES

February 2016Ocean Pines PROGRESS

OPA DEPARTMENT RECAP

Golf, Yacht Club miss budget substantially in December By TOM STAUSS Publisher s Ocean Pines amenities enter into a time of year when deficits are expected, December Ocean Pines Association financial results were more or less predictable. All major amenities lost money for the month, led by the Yacht Club’s $37,315 deficit and golf operation’s $73,486 loss. Golf in particular recorded a poor month financially, and for the first time in the fiscal year is performing worse than its predecessor, Billy Casper Golf. Both golf and the Yacht Club missed their budgets substantially. Golf ’s negative variance to budget was $27,006, while the Yacht Club’s negative variance was $22,871. The third major amenity operation in Ocean Pines, aquatics, lost money for the month as expected with a $29,025 deficit, missing its budget by only $1,332. Aquatics is ahead of budget year to date by $94,198 and is outperforming year over year by $153,445. For the year through November, both golf and the Yacht Club are behind budget. Both remain in the black for the year and the Yacht Club is ahead of last year for comparable period in the fiscal year.

Golf recorded a $14,300 surplus through December while the Yacht Club is in the black by $128,557 for the same period. Golf is behind budget by $56,055 for the year and has slipped behind last year’s BCG bottom line by almost $13,000. December was a particularly warm month and Landscapes Unlimited, the golf course manager, spent $52,709 on golf course maintenance, which exceeded budget by $16,000. That could bode well for lower than budgeted maintenance expenditures in the next several month. Or not, as the case may be. The OPA is projecting a $141,454 loss for golf this year, while LU’s projection is for a loss between $93,000 and $94,000. There has been no substantive explanation offered by the OPA for wide disparity in projections. The budget calls for a $100,000 loss, compared to last year’s loss of roughly $118,000. Year to date through December, the Yacht Club is out-performing the same period last year by $153,445. Even with that strong tail wind, the Yacht Club is entering the final four months of the fiscal years when losses are typical and normally offset any

surpluses recorded during the warmer months. The Yacht Club’s actual loss of $46,355 in November and $37,315 in December could be predictive for the remainder of the fiscal year. Losses in January through April could easily erase the cumulative surplus if actual losses are in that neighborhood. For instance, should losses average $40,000 per month in the January through April period, that would represent $160,000 in red ink, which would leave the Yacht Club with more than $30,000 in losses for the year. The Yacht Club is budgeted to earn $62,132 for the OPA this year. If the Yacht Club could achieve an average monthly loss of $20,000 from January through April, it would result in a surplus of roughly $49,000 for the year and come very close to meeting that budgeted surplus. But that seems unlikely given past performance of the amenity over many years. The OPA administration apparently is of the opinion that the Yacht Club will in fact lose money for the current fiscal year. An end-of-year forecast released as

part of the proposed budget for next year has the loss at $39,111. For December, the OPA generated an operating fund deficit of $35,802, on revenues that were budget by $37,708 and expenses under budget by $2,652. New capital expenditures were over budget by $746. Through December, the OPA has an operating fund positive variance of $149,940, with revenues under budget by $149,008 and expenses under budget by $303,048. New capital expenditures are over budget by $4,100. Status of the balance sheet: According to the Dec. 31 balance sheet, the OPA has assets valued at $32.136 million, against liabilities of $1.578 million and owner equity of $30.558 million. The December balance sheet indicates that the OPA had $1.79 million in operating cash on hand as of Dec/ 31, compared to $1.38 million a year prior. Short term investments were valued at $6 million as of Dec. 31, compared to $4.02 million a year previous. Status of reserves: The reserve summary released as part of the December financials indicates that the OPA’s total allocated reserve balance stood at $6.36 million, little changed from the month prior.

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32 Ocean Pines PROGRESS

OPA FINANCES

February 2016

By TOM STAUSS Publisher bout four months after the board voted to accept a proposal from the Budget and Finance Advisory Committee to revise the Ocean Pines Association’s F-01 investment guideline policy, the committee is back again with another proposed rewrite. It was added to the agenda on the day of the board’s Jan. 25 monthly meeting at the request of Tom Terry, the OPA treasurer and board of directors’ liaison to the committee, with no three-day notice to the OPA membership that it was coming. It was approved on first reading, before some of the directors had even read it or digest its significance. At least one critic, former OPA Director Marty Clarke, is already calling the proposed rewrite unnecessary and a departure from the current policy’s strict goal of investing in instruments that preserve OPA capital with minimal to no risk of loss of principle. For years, the budget and finance committee has made unsuccessful attempts to add language to F-01 that would liberalize the OPA’s investment policy to improve yield, without appreciably increasing risk. Clarke took a narrow view of acceptable risk. The committee essentially abandoned that effort last year when it became apparent that a board majority

Budget and Finance panel back again with another investment policy rewrite Committee wants OPA to invest in government securities rather than only CDs and CDARs was resistant. Instead, the panel opted for a watered-down rewrite that removed any reference to financial institutions that might provide investment advice or management service. The theory was that since the OPA was not going to invest in anything other than FDIC-insured certificates of deposits or their cousins, CDARS (certificate of deposit account registry service), there was no need to have any professional management available to assist in the investing. The current policy says that the purpose of F-01 is to establish guidelines for the investment of funds in excess of the balance needed for day-to-operations. “These guidelines take precedence to and are in addition to those contained” in the two financial management manuals, according to language in F-01. The new F-01 purpose makes refer-

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ence for “changing investment strategies” depending on the particular interest rate environment. “It is understood that in a normal rate environment intermediate term investments should be rewarded with higher yields,” the proposed draft reads. “During low interest rate periods little benefit may be gained from longer terms which may not be practical.” The reference to “higher yields” suggests that, when interest rates begin to rise and return to more normal levels when measured by historic standards, the OPA will want to seek out investment vehicles that have higher yields and may want to retain financial management professionals to help in finding appropriate instruments. Currently, the yield on CDS and CDARs is less than 1 percent, a rate that some committee members feel is too low even in the current low interest rate environment. The proposed new F-01 retains language that says the goal is to promote and assure “the preservation of principal of all liquid assets,” which usually are generally defined as those that can be converted into cash in a few months’ time. The proposed F-01 lists eight separate categories of “acceptable” liquid asset investment categories. The first is bank or financial institution deposits, including checking accounts, savings accounts, money market accounts and CDs in amounts not to exceed FDIC (Federal Deposit Insurance Corporation) insurance coverage. Deposits that may be in excess of FDIC insurance coverage are the second listed category. The proposed F-1 says such deposits “must be collateralized specifically by securities in the bank’s U.S. Governments or Agencies portfolio in an amount that exceeds the uninsured deposit amount by at least five percent.” CDARS, which are covered by FDIC insurance, are the third listed category. The fourth category include individual short and intermediate term general obligation U.S. government bonds, bills, notes and U.S. government agency securities in investment grade as defined by Moody’s or Standard and Poor’s”. This would appear to be a change in policy, as current policy more or less restricts investments to CD or CDARs with no allowance for U.S. government agency securities. Clarke said relying on these two company’s investment ratings for guidance

in judging the safety of potential investments is problematical. The remaining four investment categories oddly enough aren’t investment vehicles at all, but rather are admonitions or limitations on investments. According to item five, the proposed guidelines say that all securities must be purchased with the intent to hold to maturity. When investing in individual U.S. government agency securities, the “duration period of the security, as well as the reinvestment policy for prepaid principle, must be identified and considered,” according to item six. Item 7 says the maturities on investment should not exceed five years, and item 8 says “at no time will derivatives of complex structured securities” be purchased, including those derived from government securities. The proposed F-1 then proceeds to list “guiding principles” for investment performance, with a reference to funds required for liquidity and those that aren’t. The language is opaque at best. Funds not needed for immediate use can be invested to produce higher yield, but “invested in an appropriate manner for yield while simultaneously adhering to the principles association with credit risks and interest rate risks,” the proposed policy states. In a significant departure from the current F-01, the proposed new resolution refers to the hiring of “financial institutions providing general banking and/or investment services” to the OPA. They would be retained only by “written resolution” of the Board of Directors and would be subject to annual review by the Budget and Finance Committee, with findings reportable to the board. There was little discussion of the proposed new F-01, with directors saying they needed to review it before it would presented against for second reading.

Free seminars set for Ocean Pines

Area residents can learn how to make the most of their money at three free seminars offered by the Ocean Pines Recreation and Parks Department this winter. Hileman Real Estate’s Terri Bradford and Bethany Drew will present “Staging Your Home for Sale… Get it Sold!” on Wednesday, Feb. 10, from 3-5 p.m. at the Ocean Pines Community Center. Professional senior advisor Robbin Gray will present a senior planning seminar on Wednesday, Feb. 17, from 2-4 p.m. at the community center. He will discuss Medicare, medical assistance, long-term care insurance and legal issues. Gray will also present a reverse mortgage seminar on Wednesday, Feb. 24, from 2-4 p.m. at the community center. All of these seminars are free and open to the public, but registration is required and spaces are limited. To register, call the Ocean Pines Recreation and Parks Department at 410-641-7052.

CAPTAIN’S COVE

February 2016Ocean Pines PROGRESS

By TOM STAUSS Publisher hile the Captain’s Cove declarant/developer has taken its dispute over property taxes with Accomack County treasurer Dana Bundick to Accomack County Circuit Court, the Captain’s Cove property owners association is trying to resolve its “problem” with Bundick to the Accomack County Board of Supervisors. Cove association President Tim Hearn told the Progress in a Feb. 3 telephone interview that the POA attorneys, Pender and Coward of Virginia Beach, had struck out in their efforts to persuade the county treasurer to deposit Cove POA-issued checks totaling $37,000 from county taxes from last year that previously had been in dispute. “She still’s not giving us any answers,” Hearn said, reiterating previous comments about how mystifying it is that a county employee whose job it is

collect money for the county hasn’t seen fit to deposit Cove-issued checks whose dollar amounts are, according to Hearn, no longer in dispute. The Cove attorneys have decided to seek a remedy by asking to meet with the Board of Supervisors in February to discuss the matter, in the hopes that they will intervene and order or at least attempt to persuade Bundick to deposit the Cove POA checks. Whether the supervisors have the power to force her to do anything is not clear. Hearn previously has 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, had decided to pay property taxes on Cove-owned lots on the county’s “full evaluation.” In addition to lots with little value, the Cove and the county also were at odds over the valuation of lots in buildable

sections. Hearn said the Cove POA changed its stance last year in reaction to criticism from some within the Cove’s year-round residential population that the Cove, in disputing higher lot valuations and declining to pay taxes on POA-owned lots based on those higher valuations, were in effect tax deadbeats, costing everyone else in the county more for government services as a result. Under those circumstances, he said it remains perplexing that Bundick, as of Feb, 5, apparently still had not deposited the Cove checks. The dispute has to do with the valuation of properties in Captain’s Cove upon which property taxes are levied. The Cove developers, and previously the Cove POA, had taken the position that the taxes have been too high because the valuations were inflated. The state tax assessor has since sided with the Cove POA and the develop-

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ers, but Bundick continues to resist. The developers, Captain’s Cove Group Note and related entities, have taken her and the county to court in an effort to force the county to impose taxes using valuations more consistent with actual sales in Captain’s Cove. In the meantime, reassessment notices have been sent out to some property owners on the basis of lower assessments determined by the state assessor. Lots that are not currently buildable but will become so when roads and utilities are installed have been lowered in value from $4,000 to $2,000. For owners of these properties, that should effectively lower the annual property tax by half, from roughly $24 per year to $12. More foreclosures: Acknowledging that the pace of association foreclosures of properties that are delinquent on annual lot assessments have slowed, Hearn recently told the Progress that at least one more foreclosure sale is likely this calendar year. If past is prologue, most of the lots that go to foreclosure will end up owned by the Cove POA. Hearn said of the original 500 delinquent lots originally targeted for likely foreclosure, 200 are current or on some sort of payment plan. Roughly 250 have gone to foreclosure, with the remainder under scrutiny by Pender and Coward, q

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34 Ocean Pines PROGRESS February 2016 long-term risks, Hearn said. Property tax dispute He said it remains the objective From Page 33

the Virginia Beach law firm that handles foreclosures for the Cove POA. Of the remaining lots still on the original target list, Hearn said many are not Exhibit X lots, those identified as funding sources to pay the mortgage on the Marina Club building and to help finance road construction in the Cove in sections and areas where roads are needed. Those not on the Exhibit X list are classified as at risk for non-payment of assessments but are not considered

of the Cove POA to assemble as many lots in Sections 14 through 18 as possible in the hopes that they can be sold to a single investor, developer or farmer as a block. Of the 800 lots in these sections, 680 are owned either by the Cove POA or developer interest, with 120 still in third party hands. Of the 120 privately owned lots, 40 are delinquent in their lot assessments, Hearn said. EMT service: Cove officials and residents have been agitating of late for more reliable ambulance service from

CAPTAIN’S COVE the nearby Greenbackville Fire Company in emergency medical situations. Staffing and funding issues in Greenbackville have been a recurring problem. Cove officials and residents have been lobbying county officials for a solution. When 911 calls are made with no one available in Greenbackville to respond, emergency calls are routed to nearby Oak Hall, where responders tend to be more available. Greenbackville is closer to Captain’s Cove than Oak Hall, and so the perception and reality is that emergency medical response is slower than it would be if the ambulance came from

Greenbackville. During discussion at the Jan. 9 meeting of the Cove Board of Directors, director Rosemary Hall questioned why Cove residents were contributing to the Greenbackville Fire Department for emergency medical services “if they are not responding” to EMT calls from Captain’s Cove. Hearn suggested that it might become necessary for the Cove POA to contribute more to the Greenbackville Fire Company but also continue “to lobby state and county officials” to provide To Page 37

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COVER STORY Assessments From Page 1 more than $4 million at the end of 201617, while funding bridge repairs, White Horse Park bathrooms, and an engineering study for Beach Club bathrooms. He said if the bathrooms are actually renovated or rebuilt next year, as could happen depending on the results of an engineering study, the balance in the replacement reserve would still be at a robust $3.6 million at the end of the year. By reducing the $1.1 million to $626,160, Stevens said that $50 of the base lot assessment could be eliminated from next year’s budget, more than offsetting the $22 increase proposed by Thompson’s in his early January draft. Director Jack Stevens told the Progress recently that he favors Stevens’ proposed reduction in the replacement reserve allocation but has another suggestion for further reducing assessment dollars that flow into reserves. He said he will propose suspending the $135,000 allocation to the operating fund recovery reserve, which would further reduce the assessment by roughly $16 per property owner. He said the reserve serves no useful purpose since its creation seven or eight years to offset some operating losses in previous years. Since that time, the OPA has recorded operating surpluses, he said, adding that he feels the $273,000 projected balance in this reserve by the end of the current year is adequate for any other purpose. It seems likely that Stevens and Collins will be joined by Director Tom Herrick in their push to avoid an assessment increase and possibly even a decrease. A swing vote may be Cheryl Jacobs, with directors Terry, Renaud and Bill Cordwell probably more inclined to keep the supplemental $1.1 million contribution to reserves as proposed in Thompson’s budget draft. Stevens said he believes Jacobs will have an open mind about the issue. Stevens in his proposal to reduce reserve funding made reference to the just-completed reserve study by DMA Management, which he suggested could be used improperly to justify lot assessments significantly higher than necessary given actual spending in recent years and proposed capital spending next year. “It contains assumptions that have not been approved by the board,” he said in a follow-up interview with the Progress. “It concludes that we should have more than $14 million in the bank in something called an annual component cost, and that we’re $11 million short of that.” He called the $14 million number “sheer unadulterated garbage” that will lead the average OPA member “to draw conclusions that are at best misleading.” He said this reference to $14 million had been leaked without authorization

February 2016Ocean Pines PROGRESS

to one local newspaper which quoted it in an article, and that the leak “without consulting or gaining approval of the board” is disruptive to an objective and reasoned review process. He said the purpose was an exercise designed to pressure certain directors to support extracting from property owners much more than is needed to pay for OPA’s capital expenditures in the coming fiscal year. Stevens and Collins’ proposals for eliminating the need for an assessment increase were pushed off until the Feb. 19 meeting. Geese and merit increases dominated discussion at the Feb. 5 meeting. The only critical voice on the board against the goose allocation was Cordwell, who reminded his colleagues that the board earlier had informed a concerned resident that there was no money in the budget as proposed to euthanize geese. Earlier, he had voiced skepticism that any method to reduce the number of Canadian Geese can avoid lethality.

It seems likely that Stevens and Collins will be joined by Director Tom Herrick in their push to avoid an assessment increase and possibly even a decrease. Terry said including money in the budget for goose removal could involve a restatement of a current board directive that the OPA or its contractors would not euthanize the geese as part of is population control solution. The directors then debated a proposal by Jacobs to eliminate the proposed 2.6 percent merit pay increase, which Thompson had dropped from 3 percent contained in board guidance to him on budget preparation last fall. Stevens and Collins agreed with the thrust of Jacob’s proposal, but suggested that a 1 percent allowance would give Thompson greater flexibility in granting merit raises. Thompson pushed back vehemently against any proposed reduction in the proposed 2.6 percent rate of increase. Jacobs’ initial call for no increase amounted to a salary freeze, which Thompson argued would send a “wrong message” to OPA employees at the same time it would exacerbate an OPA salary scale that would become less competitive than it already is with neighboring governments. Jacobs said she had a concern about the “fiscal responsibility” of giving raises during a time of economic uncertainty. She said Thompson could come back and request supplemental money to reward especially deserving employees. Stevens and Collins both came down in favor of Jacob’s position, with Collins

The draft 2016-17 OPA budget summary by department pointing that over the past three years, Ocean Pines’ salary accounts had increased by 7.1 percent, 3.96 percent and 2.3 percent, respectively. He said the OPA had been “very generous” during this period, adding that he would “come down with Cheryl” on her call for a salary freeze. He said he could support a 1 percent increase as a “compromise.” Thompson suggested that he would favor cutting elsewhere in the budget as an alternative to cutting the 2.6 merit raise component in the budget, prompting Collins to suggest defunding the proposed food truck. At that point Thompson said that’s not where he would find budgetary savings to avoid cuts in salaries. Jacobs then said that Thompson had undermined his argument about the deleterious effects of reducing the proposed 2.6 percent increase by admitting that, even under his preferred scenario, some employees wouldn’t be receiving raises next year, just as they wouldn’t if the increase were only 1 percent.

Thompson didn’t see the apparent contradiction, reiterating that to him it didn’t make “responsible sense” to cut the 2.6 percent increase. On the brink of losing the argument, Thompson was rescued by Terry, who suggested that the board retain the 2.6 percent increase while setting up a procedure for reviewing the OPA salary structure with the aim of replacing or augmenting it with a system of bonuses. Thompson initially seemed reluctant to accept the lifeline, saying that if such a detailed salary study would be conducted and concludes that OPA employees are underpaid, then the board would be obligated to raise OPA salaries to make them more competitive. Jacobs didn’t concede that point, but she acquiesced in Terry’s proposal to keep the rate of increase at 2.6 percent, telling the Progress after the meeting that she agreed to it only because the proposal included a detail salary study. Directors Stevens and Collins were opposed, with Terry, Jacobs and Cordwell in favor. Director Tom Herrick was absent from the meeting.

36 Ocean Pines PROGRESS

February 2016

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Friday, Feb. 12 Valentine’s Family Fun Night, Sports Core indoor pool, 6-8 p.m. Open for swimming, valentine’s crafts. Pizza and desserts available for purchase. Attendees may bring beverages, but no glass containers allowed. $2 for swim members, $4 for non-member residents, and #6 for non-residents. 410-641-5255 to register. Saturday, Feb. 13 Kiwanis annual winter pancake breakfast, 8-11 a.m., Ocean Pines Community Center. $5 adults, $3 kids under 12, free kids under 5. Tickets in advance, 410-208-6719, or at the door. Pancakes, sausages, fruit cup, orange juice, coffee or tea. Carry-out available. Monday, Feb. 15 Water safety, fun and games, for kids aged 5-10, Sports Core indoor pool, 9 a.m. to 3 p.m. (a scheduled day off from school). Includes a 30-minute swim lesson, a 30-minute water safety lesson, games, crafts, the use of the pool’s mermaid and shark tails, free swim time and a pizza lunch. $55 for Ocean Pines swim members and $65 for nonmembers. Pre-registration required, 410-641-5255. Tuesday, Feb. 16 Boating course, Ocean City Power Squadron, 7-9 p.m., Ocean Pines library. Registration 6:30 p.m., class 7 p.m. four consecutive evenings. Basic boat handling, navigation, federal and state regulations, rules of the road, aids to navigation, required equipment and more. Students successfully completing this course may be eligible for six months free membership in the Ocean City Power Squadron. Free, nominal charge for course materials. Early registration recommended, 410-641-6535

HAPPENINGS Saturday, Feb. 20 Cooking class, with Ocean Pines Yacht Club Executive Chef Tim Ulrich, 2-3:30 p.m., Ocean Pines Community Center. Featuring preparation of appetizers and desserts. Fee $40 for Ocean Pines residents and $50 for nonresidents, includes all materials and food. To register, call 410-641-7052, Ocean Pines Recreation and Parks Department. Monday, Feb. 22 Spaghetti dinner, fundraiser for the Worcester County Girl Scout service unit, DeNovo’s Trattoria, Manklin Station, inside the South Gate of Ocean Pines, 5-7:30 p.m. Benefits girls needing help to participate in girl scout camp. $12 adults, $5 for children in advance, $15 at the door. Reservations Anna Foultz, 410641-7667, or Beverly Meadows, 443-2351019. Girl Scout cookies available. Thursday, Feb. 25 Ocean Pines Association, Board of Directors, monthly meeting, Ocean Pines Community Center, Assateague Room, 9 a.m. Final vote on 2016-17 OPA budget expected. Live streaming on OPA Web site. Republican Women of Worcester County, monthly luncheon meeting, Captain’s Table Restaurant, 15th Street and the Boardwalk, Ocean City. 10:30 a.m. doors, meeting at 11 a.m. Guest speaker, Pat Schrawder, who will talk about the new voting machines and discuss the process of a caucus. $17 per person. Reservations, Ann Lutz, 410208-9767, or annlutz@verizon.net Saturday, Feb. 27 Commissioner Chip Bertino town

meeting, Ocean Pines library, 10 a.m. Information on issues and developments occurring within the district and the county. Guest speaker, Worcester County State’s Attorney Beau Oglesby. County Attorney Maureen Howarth will be introduced. Commission President Jim Bunting will join Bertino during the question-and-answer segment. Tuesday, March 1 Free investment seminar, Ocean Pines Community Center, 3-4 p.m., Carrie Dupuie, AAMS, certified financial investor, Raymond James. Topic: potential benefits of marketlinked notes. Advance registration required, Ocean Pines Recreation and Parks Department, 410-641-7052. Thursday, March 3 Women’s Club of Ocean Pines, monthly meeting, Ocean Pines Community Center, 10 a.m. Explanation of voter registration process, introduction of new voting machines. Light refreshments, 50/50 raffle. Dianna Bolyard, 410-208-9326 or diannabolyard@yahoo.com. Saturday, March 5 Ocean Pines Bridal Showcase, Ocean Pines Yacht Club, 1-4 p.m., $5 at the door or in advance. Tour of the Yacht Club’s banquet facilities, wedding vendors available for consultation. Hors d’oeuvers, cake samples, photographers, travel, bridal fashions, florists, hair and make-up artista, and prizes. Tuesday, March 8 First night of three-day Maryland basic boating course, U.S. Coast Guard Auxiliary, Ocean Pines library,

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February 2016Ocean Pines PROGRESS

Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPIC, a Registered Investment Advisor. M and H, Phyllis R. Mitchell Financial Services, Inc., and NPC are separate and unrelated companies.

6-9 p.m. $15 per person. Meets the requirements of the Maryland Boating Safety Education Act. Discussions of local water knowledge, piloting, knots, boat terms, trailering, maintenance, boating safely, legal requirements and more. Additional sessions to begin April 19, May 10, June 7 and July 12. Fee includes course materials. Registration, Barry Cohen, 410-935-4807 or email CGAUXOC@gmail.com. Wednesday, March 9 Ocean Pines Chamber of Commerce Business Expo, Ocean Pines Yacht Club, 4-7 p.m. Networking opportunity for local business people. Complimentary beer, wine and food. Exhibitor spaces and sponsorship opportunities are available. Sponsored by the Ocean Pines Chamber of Commerce, 410-641-5306. Friday, March 11 Youth dance, for fifth and six graders, Ocean Pines Community Center, 6:30-8:30 p.m. Chaperoned by the Ocean Pines Recreation and Parks Department. Snacks, $8 for Ocean Pines residents and $9 for non-residents. Registration not required. Parents to pick up kids inside the community center by 8:15 p.m. 410-641-7052.

Captain’s Cove From Page 34 more reliable EMT service to Captain’s Cove. Director Pat Petrino wondered whether $40 annual ambulance service subscriptions that some Cove residents purchase from the Greenbackville Fire Company are honored when Oak Hall responds to emergency calls. Cove Communications Director Justin Wilder said that there is a “gentlemen’s agreement” between Greenbackville and Oak Hall to honor the $40 subscriptions. School bus stops: Efforts are under way to reduce the number of school bus stops along Captain’s Corridor to four, and progress is being made in working with county school officials to make that happen, Rosemary Hall reported during the Jan. 9 meeting. Hall said county officials are concerned about potential liability from accidents involving school buses and that they are insisting on a “waiver letter” to be executed by the county and Cove POA to protect the county against having to pay damage claims. “We’re looking for (appropriate) liability language,” to be included in a waiver letter, she said. The efforts paid off. Beginning Feb. 1, county schools announced the new stops on Captain’s Corridor, on Wheelhouse, Mutiny, swimming pool, and the old campground, for buses 58 and 79. The afterschool program buses will stop at the main entrance, Mutiny, the pool, and the old camgounrd. Students riding the special needs buses will not be affected.

38 Ocean Pines PROGRESS

OPINION

February 2016

COMMENTARY here’s still time for the Board of Directors to arrive at a better budget for 2016-17 fiscal year, one that does involve raising the annual lot assessment in lockstep with the general manager’s original draft budget. There simply is no need for the OPA to raise the assessment next year. In fact, it could easily be reduced. The general manager’s original request of a $22 increase is only necessary if a board majority adheres to its own misguided budget guidance from last fall. That recommendation is for the OPA to raise roughly $2.65 million in assessment dollars to be allocated to replacement reserves next year, substantially in excess of what the OPA intends to spend from this reserve in the coming year. To fully understand why the OPA is on a path to collecting more from its membership than is demonstrably needed, property owners need to grasp how the OPA funds its replacement reserves, which in monthly OPA reserve summaries is called the Major Maintenance and Replacement Reserve but, during budget reviews, the Capital Assets Replacement reserve. Why different names for the same reserve fund? Who knows, but the reason has nothing to do with a desire for consistency, clarity and transparency. One revenue stream into this replacement reserve is based on funded depreciation of most but not all OPA capital assets; it represents roughly $1.55 million in lot assessment dollars collected from OPA members. It’s allocated to a reserve within a reserve called, in all its opaque glory, the historical reserve. Confusing? To be sure.

The other revenue stream is supplemental dollars, also from lot assessments, that were allocated to a reserve originally called the five-year-plan, to be used for major capital projects such as the new Yacht Club. The theory behind this reserve, renamed the heritage reserve last year in another victory for obfuscation, is that funded depreciation raises insufficient funds for the OPA’s capital replacement requirements over a ten-year period. This five-year-plan revenue stream is now in its seventh year of existence, soon to be its eighth. In year six, it had raised $4.4 million in assessment dollars, sufficient to pay for the original Yacht Club before cost overruns, mostly attributed to new kitchen equipment not included in original cost estimates, sent its final price tag to roughly $5 million (and still climbing). The promise to property owners to pay for the new Yacht Club through this supplemental funding has been kept. General Manager Bob Thompson’s original draft budget for 2016-17 proposed allocating roughly $130 of every assessment to this inaptly named heritage replacement reserve. This would raise roughly $1.1 million in assessment dollars from OPA members, bringing the total reserve allocation to be extracted from property owners to roughly $2.65 million. In the current year, the heritage reserve allocation was only $814,578. The proposed increase back to $1.1 million represents payback to the directors who finessed its decrease a year ago. While it is probably true that the OPA does need supplemental funds for future major projects, there

simply is no consensus on how much that might be. Is a $2.65 million per year, or $26.5 million over ten years, too much, too little, about right? Based on actual spending from the replacement reserves over recent years, it’s arguably much too much. But reasonable people can differ on this in the absence of any hard evidence of actual capital needs. The OPA is embarked on a tortured process to determine actual future capital requirements, if indeed it’s even possible to do so with any degree of accuracy. The so-called “three-legged stool” is sometimes invoked to explain how future capital needs will be determined – a revised comprehensive plan, an updated reserve study of the condition of current assets, and a new and improved version of a ten-year capital improvement plan. A pending survey of property owners is part of the planning mix, to determine precisely what is still to be determined. Or something. Thompson recently issued a highly fantastical version of the latter, proposing almost $30 million in capital spending over ten years, not including an unneeded public safety/administration building out on Route 589 that would bring the Ocean Pines police department, a new southside firehouse and OPA administrative offices – and a command center for emergencies – under one roof. There’s a $3 million natatorium in the wish-list, too, along with a new Country Club and a renovation/replacement of the Beach Club. Meanwhile, as the three-legged stool is slowly built out of flimsy particleboard, OPA policy-makers are striving to assemble a budget, which in next year’s

Still time for a better OPA budget

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

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OPINION

February 2016Ocean Pines PROGRESS

Herrick’s outsourcing proposal exposes fissure on Thompson tenure

But as the motion failed, neither the task force nor any of the answers to questions it might have posed will materialize. As both OPA President Pat Renaud and Jacobs, the current vice-president, tried to persuade Herrick to withdraw his motion from consideration, he no doubt was aware that it would fail on he 4-3 Board of Directors’ vote on a pre-cooked 4-3 margin. a proposal by Tom Herrick to inThat he was unwilling to withdraw it, vestigate the possibility of hiring An excursion through the curious cul-de-sacs An excursion through theby-ways curious and by-ways and cul-de-sacs and battled Jacobs rhetorically during a an outside management firm to run the of Worcester County’s County’s most densely community. of Worcester mostpopulated densely populated community. board meeting over its merits, suggests association was an obvious broadside that he was using the motion as a vehiBy TOM STAUSS/ By TOM Publisher STAUSS/Publisher against the continued tenure of Bob cle to send a clear and loud message, if Thompson as the OPA’s general mana formidable candidate for reelection. not messages, to OPA members. ager. Had the three directors who voted by directors who support him. One message is that he has heard, Herrick mentioned that Thompson With Thompson supporters Tom Terry for the motion been well satisfied with and emphatically agrees, with the unthe “direction” of the association under had, during one previous election sea- and Bill Cordwell either ineligible or dercurrents of opposition to Thompson’s Thompson’s leadership, then this motion son, made it known that he would quit not interested in running, that leaves proposed public safety/OPA administraif two candidates running for the board two other possibilities for directors who never would have seen the light of day. might join in a new loose coalition of di- tion building out on Route 589. The supporting explanation for Her- at the time had been elected. Herrick’s Another is that Thompson’s draft rick’s motion is that the current three- point seemed to be that election out- rectors. capital improvement plan, with projects comes matter to the general manager The subtext of Herrick’s outsourcing year “at will” contract which governs listed with a total price tag of just under Thompson employment by the OPA is and that certain results would produce proposal seemed to be that this sum$30 million over ten years, likely will up for a possible three-year extension in a board so difficult to work with that mer’s election plausibly could produce cost far in excess of that if fully endorsed a board that is so out of synch with April. Herrick tried to persuade the four Thompson might decide to leave on his and funded by future boards. Thompson that he will leave, either directors opposing his motion – especial- own volition. Another is that this plan is biased toAs the board is currently configured, voluntarily or via board invitation, at ly the vituperative Bill Cordwell and ward new buildings – the public safety which time one possibility might be to the more cerebral Cheryl Jacobs – that there are three directors who apparentbuilding, a proposed Sports Core pool he was not attempting to undermine or ly are less than enamored with the GM, replace him with an outside managereplacement, and a new Country Club/ at least to the extent they are willing, ment company, such as the one that even replace Thompson as the GM. golf pro shop facility—over more timely, Rather, he said he was attempting if not eager, to explore alternatives. It runs the Parke subdivision and other consistent maintenance and renovation doesn’t take much to imagine that with smaller homeowner associations within to establish and populate a task force of existing facilities. that would look into the possibility of re- three board vacancies to be filled this Ocean Pines. Now it might have been more Having that possibility fully vetted, placing Thompson with an outside man- summer, the current pro-Thompson postraightforward had Herrick simply larity on the board could easily shift, up to and including research on comagement firm should he decide to leave declared his opposition to Thompson’s Ocean Pines in April or later in the year. with a new board majority wanting to panies that might be interested in tak“vision” more directly. Indeed, during ing on management of the OPA if that That Thompson currently has no inter- take the OPA in another direction. the recent budget review cycle, Herrick How plausible is that possibility? opportunity manifested itself, could be est in moving on, and so informed Jacobs indicated that the OPA’s mission stateuseful, Herrick suggested. recently when she asked him, is some- Jack Collins is a likely candidate for ment – one that talks about Ocean Pines reelection, and he’s one of the three diIn theory, the task force also could thing that Herrick could easily have deas a premier resort community – needs termined before offering his motion, had rectors who voted for Herrick’s motion, have concluded that the “general manalong with Dave Stevens and Herrick ager” form of administration that has revision, emphasizing clean, well-mainhe really been interested in finding out. The greater likelihood as that he himself. Collins was the top vote-get- served Ocean Pines over the decades tained and affordable over “premier,” doesn’t need a change, in which case a which as interpreted by Thompson knew or suspected that Thompson is ter when he ran for the board three seems to be a license for tearing down perfectly content with remaining as the summers ago, and his folksy demeanor lot of time and energy would have been many of Ocean Pines existing buildings (reminiscent of his late father-in-law, expended for not much of anything. OPA’s generously compensated general and replacing them with expensive new Or it could have concluded that while manager well into the future, at least famed Ocean City mayor Harry Kelley), ones. and well-oiled campaigning make him the basic administrative structure is with the board more or less controlled He chose his outsourcing motion as OK, the person heading up the managea way of forcing a dialogue on Ocean ment team is too prone to extravagant Pines’ future, particularly its execucapital projects and is overpaid when Commentary tive management. No doubt a rewrite his salary and benefits and bonus packof Ocean Pines’ mission statement will age is compared to the Worcester CounFrom Page 38 soon follow. Herrick is someone who ty administrator or the city manager in management draft includes the aforementioned $2.65 million allocated to replaceseems willing to advance his point of Ocean City, the resort town across the ment reserves. Rather than accept this $2.65 million as gospel, OPA directors need view on multiple fronts. bay from Ocean Pines. to take another long, hard look at it with the objective of reducing it, as a way of avoiding an assessment increase in 2016-17. Indeed, an assessment decrease is clearly possible. Absent any definitive wisdom about future needs from the flimsy three-legged stool currently under construction, the directors simply could allocate to the reserves in 2016-17 funding sufficient to cover the proposed capital expenditures from these reserves next year. While such spending has been a moving target during the budget review process, Thompson’s original draft called for $1.99 million in replacement reserve spending next year. That’s roughly $660,000 less than the $2.65 million revenue grab called for in his budget draft. That $660,000 represents $78 of the proposed lot assessment. Another way of looking at is that $1.99 million represents $1.55 million in funded depreciation but only $440,000 in supplemental (heritage/ five-year-plan) funding. Assuming for a moment that Thompson’s original $22 increase is based on actual operational needs of the OPA, the assessment could be decreased next year by $56 ($78-$22). That number could change modestly by increases and/or decreases in capital spending that make it into the final budget to be approved by the board in late February. But still its’s based on something real, rather than fuzzy-math projections of spending that might happen in the gossamer future, based on an unapproved, fantastical, not credible version of a capital improvement plan that is in need of some major pruning. – Tom Stauss

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40 Ocean Pines PROGRESS

February 2016

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