Horn proposes Board authority to suspend amenity access
Suggested amendments to M-02 draws ‘red ink’ from OPA President Doug Parks
By ROTA L. KNOTT
Contributing Writer
Under the guise of a simple update, Director Colette Horn presented for first reading an extensive rewrite of Resolution M-02, Amenity Policies, that includes an extensive new section on rules and under what circumstances people could be banned by the Board of Directors from Ocean Pines Association’s amenities.
Horn presented the document for consideration at the Jan. 21 monthly Board meeting and it immediately faced incoming fire. OPA President Doug Parks said he had serious problems with the proposal as written.
“I went through this document with a fine toothed comb, and I pretty much bled all over it,” Parks said referring to the red ink he used to mark up a copy of the proposal.
He said he has a lot of problems with the proposed changes to the resolution, but understands that it was
an attempt to clean up and update some language in the document. However, when it comes to enforcement of amenity rules and what the penalties are for infractions, he called it “kinda vague” and “there’s more questions than anything else.”
Director Steve Jacobs said he has a particular interest in the suggested changes. He reminded the Board of two recent court cases, one involving Director Rick Farr and another former Director Tom Janasek.
“In both cases, the court noted the lack of due process afforded to either of the two plaintiffs to settle this matter prior to going to court,” he said.
What Jacobs didn’t say is that in the Janasek case, the Court determined that OPA governing documents expressly limit amenity suspension to failure to pay lot
Proposed assessment decrease now only $4 ~ Page 30
Farr raises questions about foundation spending, tax issues
Oean Pines Association Director Rick Farr has denied an allegation that he has accused the foundation created in the name of Gavin Knupp, the Ocean Pines teenager who died in a hit-and-run incident last summer, of misspending foundation revenues.
In recent comments posted on Esther Diller’s Get Involved Facebook page, Farr was critical of the efforts to raise money for the Knupp foundation, but he did not accuse the family of misspending any money.
~ Page 7
Police chief still on administrative leave
Ocean Pines Police Chief Leo Ehrisman remained on paid administrative leave at the end of January as an investigation into an alleged burglary at the police department’s storage shed continued with an absence of details.
There’s been no information released about Ehrisman’s possible involvement in or knowledge of the alleged burglary, or what item or items are missing, or why he was placed on leave. Ehrisman was placed on leave after Viola met with State’s Attorney Kris Heiser and Sheriff Matt Crisafulli.
~ Page 9
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Amenity suspensions
From Page 1
assessments and declared continuing violations of restrictive covenants and Architectural Review Committee guidelines.
Suspending OPA members for poor conduct is not listed in these documents as a remedy available to the Board of Directors.
In presenting the proposed revisions to M-02, Horn argued that they are meant to bring OPA policies up to date and to incorporate into them the comments from the courts relative to the handling of amenity rule violations.
She added that it incorporates into the amenity policies actions and due process consistent with recent revisions to the Maryland Homeowners’ Association law regarding decisions by the Board to restrict member access to amenities.
As background, Horn said the goal was to ensure that the policies are up to date to ensure orderly management of the amenities, that the policies are consistent with the input the court has given OPA on its enforcement policies and procedures, and that they meet the requirements of the law.
Horn said the proposed changes include corrections in the naming and classifying of amenities, articulation of rules that reflect the language of restrictive covenants as it pertains to expecta-
tions for member actions and behaviors and due process for any decision that involves sanctions imposed for violation of rules.
The proposal adds numerous rules that would apply to all amenities and require all members, patrons or visitors to Ocean Pines amenities to conduct themselves appropriately and not engage in any offensive, unlawful activity or act in any manner which causes a nuisance or unreasonable annoyance to others.
That suspect behavior includes unruly, vulgar or otherwise offensive behavior directed toward staff, management or another member, patron or guest; verbal abuse directed towards management, staff or another member, patron or guest; drunk or disorderly conduct; theft or destruction of association property; a physical altercation, or threat thereof, involving another member, patron, management or staff; and the displaying or use of a firearm or any other weapon.
For any violation of the first three rules, the facility staff or manager “shall immediately call the police, remove the individual from the premises.” Staff is also to immediately notify the general manager, complete a facility incident report, and file a police report.
For violations of the last three rules and any attempt by the individual to return to the premises following removal, staff would request that the police issue a no trespass order for a period
of 90 days. The general manager in turn would be required to immediately notify the OPA president or vice president, who would then notify the entire Board.
Any association member found to have broken the rules within three working days will receive from the general manager notice of the violation including the time, date, location and nature of offense.
In addition, notice would include a statement that this is a first reported violation and that a second violation may result in loss of amenity privileges.
Upon receipt of notice, the member would make a written request for a hearing within 10 working days and a hearing would have to be scheduled within another ten working days. The member would be allowed to present evidence as well as testimony regarding the violation and have someone assist them with their appeal.
But the Board, at its discretion, would have the option of directing that the hearing take place before the general manager rather than the Board.
The proposed rules further state that any member alleged to have broken the rules for a second time or has engaged in behavior constituting an ongoing violation would be provided the same rights of notice and appeal.
If adopted as proposed the rules would be ret-
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Amenity suspensions
From Page 3 roactive to 2021. “Any member who was properly notified of a violation that occurred after Jan. 1, 2021, and has been properly notified of another or second violation which took place after adoption of this Resolution shall be informed that the first violation may be considered by the Board to determine if, taken as a whole, there is a continuing violation,” it states.
That would seem to apply to former OPA Director Tom Janasek, whose much publicized incident at the Yacht Club occurred last June.
If a member is found guilty of a second violation, the resolution would allow the Board by majority vote to reprimand or censure the person, revoke their voting privileges for a specified period of time, not to exceed two years, and revoke their privilege to use some or all amenities for 15 days to 180 days.
It would give the Board the authority to permanently revoke a member’s amenity privileges and bar them from the amenities for any individual who has 5 distinct violations during a 5-year period.
The proposed resolution also allows for the creation rules specific to the use of each amenity. The general manager will maintain a record of all violations and decisions of the Board regarding alleged violations.
Jacobs acknowledged that some property owners “are particularly concerned or critical” about the way Ocean Pines is spending money on legal fees.
He said the proposed rules would provide everyone involved in a dispute with an opportunity to resolve their differences before going to court.
“While it may appear to be cumbersome, and certainly it’s probably in need of some sanding and filing to make it less cumbersome, it does serve a valued purpose,” he said.
Parks was much less enthusiastic.
Rather than spend lot of time at the meeting going through “all of the things that I find questionable at best,” he agreed to provide his comments to Horn to synthesize into a document for second reading.
That could happen as soon as the Board’s February meeting.
He said he has an extensive summary of his concerns and was planning to distribute them to the Board and have them posted on the OPA’s Website.
“These red line changes should be out on the website for everybody to view,” he said.
They had not been posted by the end of the day on Jan. 27.
[See separate story elsewhere on this page for details of Parks’s objections to Horn’s proposal.
Another changes to Resolution M-02 adds to the definition of amenities racquet sports, marina, lakes, dog parks, all food and beverage facilities even if managed and operated by contractual entities and canals, as well as any contiguous property owned by the association and that is generally used by the public.
The association defines amenities as tangible and intangible benefits of a property, especially
Parks questions proposed amenity policy revisions
To post detailed ‘red-line’ edit on OPA Website
By TOM STAUSS Publisher
Ocean Pines Association President Doug Parks is questioning portions of an amenity policy revision drafted by his predecessor, Colette Horn. It was unveiled in the meeting packet for the Jan. 21 Board of Directors meeting.
Rather than spend a great deal of time detailing his concerns and proposed changes to Horn’s draft, Parks said he would post it on the OPA Website. He suggested OPA members read Horn’s draft and his suggested revisions before the Board makes any decisions.
He also provided a copy to Horn, who said she and a working group of OPA staffers would review it and possibly incorporate Parks’s proposed revisions in a future version.
In a telephone interview after the Board meeting, Parks mentioned just two concerns he had with Horn’s draft.
One is a new rule that limits group usage of OPA facilities to groups that are comprised of a least 60 per cent Ocean Pines residents. He wondered how the OPA could enforce that rule, because percentages of Ocean Pines membership in say, a card group, might fluctuate from meeting to meeting.
He also said he has concerns about a new policy procedure proposed by Horn to deal with unruly behavior at amenities in Ocean Pines. It establishes a new procedure in which the Board of Directors would be empowered to suspend members for poor behavior [see Cover Story in this edition of the Progress for details.]
“I’m very sensitive to the Board’s policy role versus taking on an operational role,” Parks said, suggesting that governing documents specify that amenity managers and the OPA
those that increase its attractiveness or value or that contribute to its comfort, convenience, or enjoyment.
Already covered by the existing M0-02 resolution are the OPA dining facilities, parks, swimming pools, paths, Community Center, Beach Club and parking, Golf Course, and Skateboard Park.
The amenities are classified as general use or fee-based. General use amenities are those for which there are generally no associated user fees. All association members and residents, as well as sponsored groups and clubs, have the same access and availability for use.
Appropriate fees may apply. Association-sponsored groups and approved clubs use these facili-
general manager have the power to deal with behavior issues at the amenities.
These same governing documents limit the OPA’s power to suspend access to OPA amenities to failure to pay the annual lot assessment and for declared violations of OPA restrictive covenants and other rules established under their authority.
Poor conduct by a member is not listed as a reason for suspending a member.
Current procedures do allow management to escort a member who is behaving poorly to be escorted off the premises by staff.
“I’m concerned that [by giving the Board a formal role in activity that could lead to a suspending a member] we could be creating an internal conflict [between M-02, the amenity policy, and governing documents],” Parks said. “Maybe the Board shouldn’t be trying to inject itself into a process best left to operations personnel.”
He said in the recent litigation involving former Director Tom Janasek, who had been suspended from access to certain amenities by a Board majority, the judge said “stick to what’s in the by-laws” in its amenity policies.
Parks said that perhaps a “different procedure” could be drafted to deal with situations that led to a short-lived suspension for Janasek before it was lifted by the Court.
“I can’t see supporting it [the proposed Board role] as it is written,” he added. “We have a lot on our plate. We should be avoiding any new procedure that is usurping the role” of management.
ties at no charge.
Fee-based amenities are available to all association members and their guests for a fee.
These fees may be paid in the form of annual/seasonal membership or for periods of limited use.
Memberships generally confer additional benefits to those who purchase them. Those include racquet sports, the pools, golf, and marina.
Under customer satisfaction, the proposed revision adds a section stating that “in order to achieve optimum results there must be a commitment by the GM and their amenity managers to finding, attracting, and winning new customers; nurturing and retaining current customers, and encouraging former customers to return.”
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Farr raises questions about Knupp foundation spending
As a donor who gave $500 in cash to ‘Justice for Gavin’ prior to the establishment of the Knupp foundation, OPA director say it’s reasonable to ask how contributions have been spent
By TOM STAUSS
Publisher
Ocean Pines Association Director Rick Farr has denied an allegation that he has accused the foundation created in the name of Gavin Knupp, the Ocean Pines teenager who died in a hit-and-run incident last summer, of misspending foundation revenues.
In recent comments posted on Esther Diller’s Get Involved Facebook page, Farr was critical of the efforts to raise money for the Knupp foundation, but he did not accuse the family of misspending any money collected so far.
He told the Progress that as a cash donor of almost $500 in cash to what he believed was the Justice for Gavin campaign or the foundation, he believes he’s entitled to an accounting of how such donations have and will be spent.
On the Get Involved page, he is quoted as say-
ing “I believe someone is going to request an audit of the foundation,” without mentioning who that might be.
In a recent commentary, oceanpinesforum.com administrator Joe Reynolds wrote that Farr had suggested “inappropriate spending of foundation funds.”
Not so, Farr said.
“I don’t know if funds are being spent inappropriately,” he told the Progress. “I hope not. I don’t know. I believe donors are entitled to know how the funds collected have and are being spent. I am asking a question, and I hope the foundation will be fully transparent in itemizing funds collected and funds spent.”
He added that he’s not the only one who wonders how foundation funds raised are being spent.
“It’s not just me,” he said. “Many association members have asked the same question,” as
have people he knows in Ocean City.
Farr said that he’s OK with gofundme funds that may have been collected on behalf of the Knupp family being used for personal purposes,such as paying an OPA lot assessments to personal debts, or buying a car, a vacation, whatever it might be.
“I don’t care how she [Tiffnay Knupp] uses gofundme money,” he said.
Rick Farr
“I would hope it’s put into the foundation, but if she wants to buy a car, pay bills, good for her. If she wants to go on a vacation, great.”
Farr said “Reynolds threw me under the bus” when he wrote that Farr had alleged inappropriate spending by the foundation and that his comments reflected poorly on the OPA.
“I’ve told him I won’t be speaking to him again,” he said. “There’s a huge difference between asking questions and making accusations.”
While stopping short of accusing the foundation of misspending donors’ contributions, Farr in his post on the Get Involved site made it clear
February 2023 Ocean Pines PROGRESS 7 OCEAN PINES u
Farr questions
From Page 7
he’s grown disenchanted with the effort to raise funds in the name of the late teenager.
He said that he believes “someone is going to request an audit” of foundation spending, without saying who that might be or how an audit and by whom an audit would be conducted.
Again, that comment fell well short of an accusation.
He also is making it clear he is opposed to any effort by those associated with the Justice for Gavin campaign that is advocating for the boycott of Matt Ortt Companies’ restaurants in the area.
“This is nothing more than a money grab for the Knupps and their mob mentality followers to include former board members Peck and Wheatley, who openly are boycotting the Matt Ortt Company and our food and beverage amenities in Ocean Pines.
“Sherrie Clifford from the ROC {Residents Oversight Community} Facebook page cannot be trusted either - she is as divisive as the others,” he wrote on the Get Involved Page. “She wants to bring in another F&B [food and beverage} company and on the other hand says she supports Matt Ortt! Can’t trust her. We all stand by Matt Ortt, his family and his businesses!”
Farr said another concern of his is that the foundation Website says it’s a non-profit organization but he has learned that the association has not yet obtained its 501(3)(c) non-profit designation from the Internal Revenue Service.
“They can’t say it’s a non-profit until it is,” Farr said. “Those who donate aren’t able to deduct contributions until the non-profit designation comes through.”
Another potential problem for the foundation, he said, may be failure to collect sales taxes on the items such as sweatshirts and wristbands it is selling to the public through its Website or in tables set up at a South Gate restaurant.
“That’s an issue that’s serious and needs to be looked into,” he said, adding that as of Oct. 18 of last year the foundation’s Website indicates it has sold about $20,000 in merchandise, with an unknown amount of cash sales occurring since then.
Ray Knupp, Gavin’s father, posted screenshots of Farr’s Get Involved comments on the JusticeforGavin
facebook page, according to Reynolds.
That in turn prompted comments from individuals named by Farr in his Get Involved comments, Reynolds added, Clifford, administrator of the ROC, wrote, “Rick Farr trying to throw Ocean Pines ROC under the bus is defamation.”
Former OPA board member Josette Wheatley wrote, “What the heck? Why are they mentioning our names?”
On oceanpinesforum.com, Peck was highly critical of Farr.
“It can take easily six months to get this [non-profit] form completed,” she said. “The foundation has a lawyer who has filed. [Farr] insinuating that they improperly used foundation funds to pay for a past due HOA fee is sad.
“I don’t recall this much interest in how Mr. Farr spent his Go Fund me donations or anyone looking into his debt history or boat purchase. Can we at least offer the grieving family the same consideration?” she said.
Farr said in response that he remains in favor in “Gavin obtaining justice,” adding that feels sympahty for the grieving family.
Peck in another post on oceanpinesforum.com brought OPA President Doug Parks into the discussion.
Peck referred to a message from Parks to Farr in which the OPA president wrote “I couldn’t agree more.” Doug clearly accused someone (me?
Ms. Clifford? the Knupps?) of ‘being divisive and sowing hatred.’ How does this bring down the temperature?”
Reynolds wrote in his commentary that “Farr created a firestorm for OPA where none existed and it appears to serve no purpose. Farr has been highly critical of statements and actions of the previous board majority, accusing them of ‘poor judgment.’ While Farr did not say he was speaking for the Board of Directors, his unsupported, undocumented, unproven public comments about the Knupps reflect badly on the Ocean Pines Association.”
Farr said that if comments on Ocean Pines social media is any indication, there’s no firestorm but only the critical comments of a few people, including Reynolds, Peck and Wheatley, and that Reynolds
and Peck have misconstrued what he said.
He added the thread on Reynolds’s site includes critcal comments from a relatively few people, incited by the commentary of the site administrator.
He said he’s not looked at the ROC page recently but believes its membership includes many individuals who are not members of the OPA.
Diller, the Get Involved administrator, told the Progress that she accepted Farr’s commentary because it represents a point of view that is growing in the community -- that MOC is being unfairly targeted by the Justice for Gavin campaign.
“Matt Ortt had nothing to do with Gavin’s tragic death,” she said. “These boycotts are wrong and need to stop.”
Business license for contractors?
Business licenses for contractors that do business in Ocean Pines? It’s not clear that it has any traction or even has been formally recommended of the Budget and Finance Advisory Committee, but it’s an idea that was kicked around during the committee’s recent 2023-24 budget review meetings.
The idea’s origins are murky, but it’s possible that it has some support from within the Architectural Review Committee.
General Manager John Viola said recently the idea might be considered by the Board of Directors before the budget is approved in February, but even that isn’t clear.
Ocean Pines Association governing documents do not give the OPA authority to levy fees on entities that are not members of the OPA.
The amount for an annual license that was kicked around was $1,850, Viola said. “It was a rough estimate.”
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Police chief remains on administrative leave
Investigation of alleged burglary at storage shed continues
By TOM STAUSS Publisher
O
There’s been no information released about Ehrisman’s possible involvement in or knowledge of the alleged burglary, or what item or items are missing, or why he was placed on leave.
There has been some opinion on local social media that Ehrisman was “hung out to dry” in a press release about the matter, with no way for him publicly to shed light on the incident because it involves an ongoing investigation.
What is known is a time lag between when the alleged burglary was first discovered -- according to the press release that occurred on Dec. 17 of last year, but by whom was not disclosed -- and when General Manager John Viola first became aware of it. That was Friday, Dec. 31.
Ehrisman was placed on paid administrative leave the following day, after Viola had conversations with State’s Attorney Kris Heiser and Sheriff Matt Crisafulli.
“After consultation with partners at the Worcester County Sheriff’s Office and the Office of the State’s Attorney, OPA has taken steps to ensure that a thorough and independent investigation is conducted, and that police services to residents of Ocean Pines remain uninterrupted,” the press release said.
Crisafulli disclosed to the Progress that Lt. Brian Caramone of the sheriff’s department had been dispatched to “provide oversight and assistance” to the Ocean Pines department as the investigation unfolds.
The press release said that “a commander from the Worcester County Sheriff’s Office will provide on-site leadership to the Ocean Pines Police Department and will oversee a complete audit and inventory of the contents of the storage shed and the property room. OPA has been working with the Sheriff’s Office to implement these changes since last Friday and has pledged to cooperate fully with the investigation.”
That statement seemed to sug-
cean Pines Police Chief Leo Ehrisman remained on paid administrative leave at the end of January as an investigation into an alleged burglary at the police department’s storage shed continued with an absence of details.gest that actual day-to-day control of the department has been ceded to the sheriff, but Viola told the Progress in early January that “the two lieutenants” are jointly overseeing the department. Caramone is directly overseeing the investigation into the alleged robbery while Lt. Shaker Koppin continues to oversee the
daily activities of officers within the department, Viola said.
“Both report to me,” Viola said, which would seem to underscore that the OPA remains in control of policing in Ocean Pines. The investigation of the alleged robbery, on the other hand, is being handled by the sheriff’s department.
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Daly proposal for forensic audit of 2022 election fades
Parks says it’s ‘too far past the election’ to consider
By TOM STAUSS Publisher
It would appear that Ocean Pines Association Director Frank Daly’s quest for a forensic audit of the 2022 Board of Directors election by an independent company has faded, with Daly himself not pressing the issue at the January Board meeting and a Dec. 1 deadline for Board authorization having passed with no action.
OPA President Doug Parks told the Progress in a Dec. 21 telephone interview that he personally believes it’s “too far past the election” for an audit to take place.
He added that “I don’t know that it needs to be done” with the recent submission of a report containing recommendations for this year’s Board election by the Elections Committee.
“I’m not sure it (an audit) would produce anything that our own Elections Committee couldn’t produce,” he said.
The Board at its October meeting tabled a motion by Daly to authorize a forensic audit of the 2022 Board election by an outside firm, after Parks and three other directors said they were not ready to authorize an audit unless the newly appointed volunteer Elections Committee indicated that it needed the help.
Since then, there’s been no indication that the committee wants outside help, and also no indication that the committee believes a forensic audit as suggested by Daly needs to be done.
Joining Parks in his reluctance to proceed with an outside audit were directors Rick Farr, Monica Rakowski and Stuart Lakernick.
Pressing for an immediate solicitation of a request for proposals from outside auditors were Daly, Colette Horn, and Steve Jacobs.
When it became clear that Daly, Horn and Jacobs didn’t have the votes for an immediate request for proposals for an outside audit, Daly accepted a proposal by Parks to table the motion. Parks at the time agreed to a Daly suggestion that the committee would have a hard deadline of Dec. 1 to conduct its own review of the 2022 Board election, identifying areas that went wrong this summer and offering recommendations on how next year’s election should be conducted.
The committee didn’t meet that deadline, but that didn’t seem to bother the Board majority and if it bothered Daly, he didn’t bring it up during the December or January Board meetings.
The committee chair, Tom Piatti, had been prepared to make a presentation to the Board at its December meeting but he had to cancel
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According to an OPA press release at the time of his appointment, Ehrisman’s first job with the OPPD was part-time dispatcher. Chief Murray sent him to forensic and CSI school and he became a forensics and crime scene investigator.
He rose through the ranks from patrolman to private first class, to corporal, sergeant and then lieutenant, continuing to run criminal investigations as he rose through the ranks.
As police chief, he has served as a coordinator with multi-jurisdictional task forces from county, state and even federal law enforcement agencies.
Born in nearby Pittsville and serving for more than 30 years as a volunteer firefighter in his hometown, Ehrisman was a professional musician touring all over the U.S. before switching careers.
The OPA through its press release encouraged anyone with information about the alleged burglary to contact the Worcester County Sheriff’s Office at 410-632-1112.
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Election audit
From Page 10 because of an illness.
The topic didn’t come up for discussion at all during the Jan. 21 Board meeting.
Parks had reached out to the firm that conducted a forensic audit of OPA finances in 2018 to see if the company was capable and interested in conducting an election audit should one be authorized by the Board. Parks later reported that this particular firm, Gross Mendelsohn, a Baltimore-based audit firm, was not interested in auditing an Ocean Pines election.
Farr, the Board liaison to the Elections Committee, later said that Gross Mendelsohn had indicated there is a dearth of firms that conduct audits of homeowner association elections.
Daly back in October he presented the issue as one that required immediate and urgent attention.
It’s not clear if he still will be pressing for one.
When asked, he told the Progress in an email that the latest Election Committee report was issued too late to be included on the Jan. 21 Board meeting agenda.
“I was in the middle of some extensive travel and did not review the report. The discussion of this report will be at the February meeting,” he said.
In October, Daly said an outside forensic audit should reconcile the initial count of paper ballots conducted by the former committee members in early August using scanning equipment that some suspected even before the 2022 election had programming issues.
Daly said the initial count recorded vote totals exceeded the number of ballots received, ranging from about 500 votes more than 1,000, a widely reported fact in the local media.
The initial vote totals were overridden by a later committee hand recount of vote totals, which still had candidates Jacobs, Lakernick and Rakowski winning the election but with former Director Amy Peck only 15 votes behind Rakowski in fourth place.
Usually the difference between the third and fourth place finishers are about 50 votes, so this year’s spread of 15 votes “doesn’t inspire confidence” in election results, Daly said.
He said that issues with scanning equipment could have been a prob-
Board votes to expand video surveillance throughout Ocean Pines
Subject to status of existing camera locations, Viola recommendations
By ROTA L. KNOTT Contributing Writer
Big Brother may soon be watching at more of the Ocean Pines Association’s facilities. During a Jan. 21 meeting, the Board of Directors agreed to ask staff to investigate the installation of additional surveillance cameras at OPA venues.
Director Frank Daly offered a motion he said is designed to implement a video surveillance system and retention policy to improve security and mitigate legal risks to the association.
Daly’s original motion was to direct General Manager John Viola, in consultation with video surveil-
lem “for a long time,” a comment that implicitly left the impression that Daly doesn’t necessarily accept the election results from any of the years in which the current scanning equipment has been used.
Up to about four or five years ago, the OPA had used equipment called ScanTron, with no reported concerns about accuracy.
Daly also pointed out another well publicized problem with the conduct of this summer’s election, the fact that owners of multiple lots
lance experts, “to establish a ‘best practices’ video surveillance scheme for all alcohol-serving venues that will provide 100 percent coverage of the entire properties.”
Daly said that the OPA’s “alcohol-serving venues currently do not employ state of the art video surveillance systems. These systems improve security and protect against lawsuits. There have been three incidents over the past two years where improved surveillance videos would have been beneficial to law enforcement or the association,” he said in offering the motion.
in Ocean Pines were provided with only one ballot rather than one ballot for every lot owned, unless specifically requesting ballots for each lot.
He said that OPA records show that there are 535 lots in Ocean Pines that are owned by property owners who own more than one lot, with 479 eligible to participate in the 2022 election.
“We don’t have a handle [on the number of eligible lots that could have voted in the election but didn’t],” Daly said.
He went on to argue that the OPA spent more than $200,000 on the 2018 forensic audit of OPA financial after allegations of theft surfaced, and that spending a much more modest sum on an election audit would not be opposed by most OPA members.
A Board majority has been comfortable with the Elections Committee doing its own analysis of what went wrong with last summer’s election and presenting its own slate of recommendations.
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Video surveillance
From Page 13
Other directors questioned why the task would be focused solely on the alcohol-serving venues and not include other OPA properties.
“I’m in agreement with Frank, but I think we need to expand it,” said Director Stuart Lakernick. He said there are many other locations throughout the community where it would be beneficial to have video surveillance including places like the skatepark.
Director Rick Farr said the OPA does already have some cameras at its facilities. As a first step in the process, he asked for an audit of those cameras, their locations, status, and cost of any repairs or replacement necessary.
“There are systems that may not be working or may not be working correctly,” he said.
Daly’s motion also called for obtaining quotes for the installation of systems that will incorporate these practices and developing a retention policy for videos based on the current state law related to personal injuries.
OPA President Doug Parks didn’t think it was necessary to bring in experts, but said he does see the need for a policy on retention of video captured on the surveillance cameras. With video surveillance throughout all of its facilities, and not just the alcohol serving ones, the OPA needs a policy that is consistent with county, state and federal regulations, he said.
This is particularly important for any instances that may involve “a police matter or some sort of disorderly conduct,” he added.
Parks said he doesn’t think the OPA needs an expert to develop that policy but rather “common sense will allow us to get to that.” From an operational perspective, he said the Board could simply tell the general manager that it wants to make sure all areas of the community are covered, not just the alcohol-related ones, and to have a policy that details how long to retain videos.
Daly said he included language in his motion regarding seeking expertise because surveillance camera vendors can help the OPA determine the best locations and best practices for use of such equipment. That expertise can most likely be local, he added.
There are ways and places to place cameras to protect them from the elements and vandalism, he said. “And typically the people who sell have this equipment have that expertise as part of their sales team.”
As an example, Daly said there is not 100 percent coverage currently at the Yacht Club. He said experts can help the OPA determine where to place cameras indoors and outdoors, at entry and egress points, and other locations throughout the facility for the best coverage he said this will help “to protect against the whole spectrum of things from personal liability to crime.”
He agreed that the OPA is “just as liable” for something that occurs at the skatepark, golf course, or other facilities as it would be at the alcohol-serving venues. That’s why it’s important to “get somebody that knows what they’re doing” to discuss camera placement and policies, he said.
Director Steve Jacobs pointed out that Daly’s motion focuses on best practices for use of video surveillance, and expert vendors would likely be the best people to consult for that information. He suggested tiering the approach to adding more cameras, possibly starting with the alcohol-serving venues and then adding other facilities.
Eventually, Parks suggested tabling the motion to allow Viola time to gather additional information on the current system and possible talk with vendors before the Board passes any motion. “It sounds like we’re on the right track but we may need some more information,” he said.
Director Colette Horn leaned toward a delay for information gathering as well. “I think the issue of coverage is an important one but I think that needs to be well thought out what coverage are we seeking,” she said.
Viola said he already has information on current camera locations and can update that report for the Board. “We do have a good base but it definitely needs to be fine-tuned,” he said, adding that he can reach out to vendors and law enforcement for input on any proposed expansion of the system. He also agreed that a retention policy “definitely needs to be looked at.”
Horn said any decision about expanding the video surveillance system needs to be based on the intended purpose for the association. “What do we want to achieve by having this coverage?” she asked.
Farr said public safety should be a priority. For example, he said hav-
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Daly doesn’t offer motion critical of MOC
By TOM STAUSS Publisher
Ocean Pines Association Director Frank Daly did not offer a motion at the Jan 21 Board of Directors meeting alleging that Matt Ortt Companies staff failed to follow established policy in handling the incident last June at the Yacht Club tiki bar involving former directors Tom Janasek and Josette Wheatley.
Following the December Board meeting, Daly suggested that a motion or at least a discussion pertaining to MOC’s handling of the incident would be part of the January meeting.
“Multiple motions are being prepared to address a number of issues that were pointed out in this incident,” Daly said in response to a Progress text message after the December meeting, he said.
“Not all of the motions are being prepared by me. It would be safe to say that part of the discussion will touch on” allegations of MOC mishandling of the Janasek/Wheatley incident.
Director Colette Horn emerged as the other director who prepared a
Video surveillance
From Page 14
ing cameras at the North Gate could help law enforcement in the event of an accident.
Viola countered by saying there may also be good reasons why the association can or cannot place cameras in certain locations, including at the North Gate.
Parks ultimately suggested simply deleting the words “alcohol serving venues” from Daly’s motion. Instead it would be applicable to all venues. The Board agreed and voted unanimously in favor of the amended motion.
While Daly’s motion called for Viola to present recommendations for installing these systems and the quotations for doing to the Board by Feb. 18, Parks said he will consult with the general manager to make sure there is at least a status report at the next meeting.
Viola is establishing a working group to assist him in providing the information that the Board is seeking.
Farr says his criticism may have convinced Daly to back off
motion for the Dec. 21 meeting.
Farr said one of the Daly motions could have been notice to MOC that if it handles any future incident at the Yacht Club the same way it handled the Janasek/Wheatley incident, its contract to manage OPA food and beverage venues could be revoked.
Farr said after the December
Board meeting that he was certain that no motion that’s the least bit critical of MOC would pass the Board and that no such motion or motions “should see the light of day.”
But if in fact Daly and Horn follow through, Farr said he and other Board colleagues would mount a vigorous defense of MOC.
“This is all a political hit job designed to shift blame and deflect responsibility for their own poor judgment, violation of OPA governing documents, and ignoring of legal advice” in the handling of the Yacht Club incident, Farr said.
It turned out that neither Daly
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MOC motion
From Page 15 nor Horn offered any motion during the January Board meeting that could be construed as critical of MOC.
Farr said he believes that was because he “beat up Daly pretty bad” on the issue in comments published in the Progress and in emails among the directors.
In an email to the Progress, Daly said that “no motion was ever considered by me or anyone on the Board that would have been directed at the Ortt Companies.
Both Daly and Horn did offer proposals at the January Board meeting related to the Janasek incident, however.
Daly offered a motion to expand video surveillance at venues that serve alcohol in Ocean Pines, and Horn presented for first reading a proposed revision of the M-02 amenity policy that would give the Board explicit authority to suspend an OPA for a second offense of poor behavior at an OPA amenity.
Both proposals seemed more targeted at Janasek than MOC.
Daly said that “both motions have been in process since the Janasek/ Wheatley issue first came up, and both were withheld until the Janasek/OPA litigation was finalized.”
He said that the decision by the Court in the Janasek case “provided a road map to the Association on how this event could have and should have been handled. Discussion of these motions may touch upon how the initial incident was handled as we debate the rules to handle any similar event in the future based on the court’s opinion.”
Daly’s motion for additional camera coverage at venues that serve alcohol was amended after Board discussion to authorize the possibility of expansion of video surveillance in Ocean Pines beyond amenities that serve alcohol, and General Manager John Viola agreed to come back to the Board with a formal proposal that would also address the issue of video retention.
Viola later told the Progress that
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he would be forming a working group to review current placement of cameras and retention procedures. He said there probably would be a recommendation for some additional cameras or re-aiming of existing
cameras.
He said that after a forensic financial audit of OPA facilities in 2017, all OPA facilities that handle cash have cameras at the point where cash is exchanged.
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Parks says Board needs to revisit amending DRs to restrict short-term rentals
Two directors already on record as opposing amending DRs
By TOM STAUSS Publisher
The Board of Directors didn’t get around to tackling the short-term rental issue at its Jan. 21 monthly meeting, but Ocean Pines Association President Doug Parks later said the issue needs to be revisited by the Board before anyone can declare it dead.
The issue facing the Board is whether to authorize a section-by-section vote to change the Declaration of Restrictions to regulate short-term rentals in Ocean Pines, adopting county statutory language and giving the OPA the ability to fine violators.
Director Stuart Lakernick recently posted a message on oceanpinesforum.com that he opposes a community vote on short-term rentals, and Director Rick Farr has also said he’s reluctant to proceed.
Parks in a Jan. 21 telephone interview said the Board needs to “take a fresh look at it” and decide whether to authorize the voting.
OPA staff has prepared election materials that would be sent out to property owners, awaiting Board approval that has not been forthcoming
Though not technically a referendum as that term is defined in Ocean Pines, it’s a vote to amend restrictive covenants to give the OPA more tools to regulate short-term rentals.
A majority of property owners in each section must agree for changes to be enacted in that section. The OPA can lobby those who haven’t submitted ballots to do so.
The vote could result in some sections amending the DRs, and others declining to do so.
Parks said the possibility of a mixed result concerns him, suggesting that a patchquilt of a different rules in sections throughout Ocean Pines could present administrative challenges.
If Parks ends up joining Lakernick and Farr
as no votes, that leaves Monica Rakowski as the director who could be the deciding vote. She’s not made any public pronouncements on the issue, but she often has joined Parks, Lakernick and Farr as part of a Board majority.
Directors Frank Daly and Collette Horn were part of a majority on last year’s Board in favor of giving the OPA more tools to enforce rules on short-term rentals. Director Steve Jacobs often is
aligned with Horn and Daly.
One related issue that remains undecided is whether the short-term rental vote would be conducted by paper only or a hybrid paper-electronic method. Horn said recently that she believes the vote should allow electronic voting, but the committee has said that scanning software used to count paper ballots is defective.
Obtaining reliable software that works well with scanning equipment is several months away. Paper ballots would have to be hand-counted by the Elections Committee if the Board votes to proceed with a vote on amending the DRs.
Daly told the Progress in a recent email that the issue isn’t dead, that there was an approved motion that the general was to act upon.
“At one time the delay was to determine if the vote could be done via email. As I understand it, legal, as well as technical reasons have eliminated that possibility,” he said.
Board votes to clarify email request policy
Motion establishes fee structure for documents
By ROTA L. KNOTT Contributing Writer
Property owners should prepare to pay if they want to see copies of Ocean Pines Association email correspondence. Director Frank Daly offered a motion, approved unanimously by the Board of Directors during a Jan. 21 meeting, to task the general manager with establishing a procedure for disseminating association emails when requested to do so by a property owner in good standing.
“What this would do is make books and records available on demand to an association member providing that they covered the cost of doing so,” Daly said.
He said there have been several instances of property owners requesting association emails. However, the legal status of email correspondence as part of the association’s books and records is not well defined. “We need a policy that recognizes we’re in an information age that deals with computers and email.”
In justifying his motion, Daly said the exponential growth of email correspondence has resulted in a large amount of association business being discussed and debated outside of scheduled Board meetings. The factors justifying these discussions are timely decision making and efficiency. However, conducting business via email results in a lack of public discussion and debate on a wide range of association business, he said.
The time and costs to complete each request will be estimated by the association and will in-
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Email policy
From Page 18
clude the staff labor rate to retrieve, copy and transmit the information to the requester as well as any material costs. If the total estimated cost to obtain and transmit the requested information is less than $20, the OPA will provide the emails free of charge. If greater than $20, the OPA will notify the property owners of the total estimated cost and arrange for payment prior to dissemination of any emails.
In consulting with legal counsel, Daly said there is some question about what constitutes the OPA’s books and records and what falls under attorney client privilege when it comes to emails. In the corporate world, the corporate Internet system is only used to conduct corporate business and that should also be the case for the OPA, he said. Therefore, only the two types of email, those that involved attorney client privilege and those considered books and records, should be on the OPA’s servers.
Daly said some of the biggest concerns are how to distinguish between the two types of emails ad the amount of staff time involved in pulling out emails on request of property owners.
“Suppose we get these frivolous requests?” like a request for all emails with the name Charlie in them, OPA President Doug Parks asked. “Is there any way we can try to find some basis for the request?” He said the chances of frivolous requests are small but still exist. “I just want to make sure that it doesn’t turn into a free for all.”
Daly said that’s why his motion calls for General Manager John Viola to develop a procedure for responding to requests for emails based on the guidelines in his motion. He agreed that somebody could request all of emails from him, and they would have to be sorted by staff to remove any that fall under attorney client privilege.
However, he noted, that if the OPA rejects a request the property owner could file suit in the courts, resulting in considerable expense to the OPA with no opportunity for reimbursement. “We could be in for this thing for a lot of money and end up being told to do it in a certain amount of time no cost by the court,” he said.
Director Colette Horn said she doesn’t believe the OPA has the authority to determine if a request for
emails is frivolous. “I don’t think we have the authority to filter through various purposes people might have for making requests.”
She said all the association can do is identify those emails that qualify as attorney client privilege and separate them from books and records type emails. The only additional filter the association can apply is by keyword for the requested search, she said.
Horn agree the OPA should probably have a Board policy on what constitutes attorney client privilege and ensure that the subject lines of emails they send denote that classification. That will make it much easier for the person doing searches to find the requested emails, she said.
Daly said it will be obvious if someone requesting association emails has a specific intent. For example, he said if a property owner requests a large number of emails and agrees to pay a significant required fee to obtain them, it’s not a frivolous request. “You know damn well there’s going to be a problem,” he said. “You start getting into any sizable expense and you know it’s not frivolous.”
Parks said there is no way to avoid a cost to the association for providing property owners with copies of email correspondence.
“I can see the logic there, but we’re already going to spend staff time to arrive at an understanding of how much data is involved and how much it will cost,” he said. “It’s going to cost the association no matter what.”
If staff does the work to calculate the expense for copying the emails and then the party decides they don’t want to pay for them, the OPA has already lost money, he said.
Parks was also worried about Horn’s proposal to ensure that emails with attorney client privilege somehow note that status by subject line. He asked whether if someone forgets to put that keyword in the subject line it somehow puts them at risk. “It seems innocuous but those kinds of things will percolate up.”
Personally, he said, if someone requests his emails he wants to know why they are doing so. “I think you’re perfectly within your right to ask why these emails are being requested.”
Horn disagreed and said the OPA can’t do that. “We can know and then take action,” she said, but the association can’t use the reason to deny the request.
Director Steve Jacobs said the
OPA’s policy should follow the Maryland homeowners association act as to what is confidential for the association to transact business. “Residents should have an opportunity to see as much as possible as to what the business of the association is,” he said.
The intended use of the information requested by property owners is not something the OPA can request, he agreed. “You may be interested, you may be curious…” he said. “But he doesn’t have to answer you.”
If a request is broad, the OPA can send it to legal counsel, who can respond and tell property owners that they need to narrow down the request, he said.
Horn said the discussion of Daly’s motion also bring up the need for the directors to be more disciplined about what’s in the emails they send and to alert recipients that it is privileged information.
The approved motion states that emails that will not be disseminated include discussion of matters pertaining to employees and personnel, protection of the privacy or reputation of individuals in matters not related to the homeowners as-
sociation’s business, consultation with legal counsel on legal matters, consultation with staff personnel, consultants, attorneys, board members, or other persons in connection with pending or potential litigation or other legal matters, investigative proceedings concerning possible or actual criminal misconduct, consideration of the terms or conditions of a business transaction in the negotiation stage if the disclosure could adversely affect the economic interests of the association.
Emails involving compliance with a specific constitutional, statutory, or judicially imposed requirement protecting particular proceedings or matters from public disclosure can also be denied, the motion continues.
Any email falling outside those parameters may be requested by any member of the Association in good standing at any time.
All requests must be in writing or via email and directed to the general manager with copies to all Directors. The requests must be defined by topics and/or key words. Requests for emails from a specific person, department or committee will not be accepted.
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Former Board candidate asks for replacement of Election Committee
Strategic Planning Advisory Committee member praises relocation of AED
By ROTA L. KNOTT
Contributing Writer
Paula Gray, a candidate in last summer’s election, renewed her request for the Board of Directors to reconstitute the Elections Committee during Public Comments at a Jan. 21 meeting. She said there is a great deal of concern among residents of the community about who was appointed to serve on the Ocean Pines Association’s standing committee and how that was done.
A slate of new members was appointed to the committee after numerous previous members resigned amidst controversy over ballot counts during the August Board election.
There is little or no chance the Board will act on her recommendation, with a majority of directors in full support of chairman Tom Piatti and other members.
“The Election committee has been populated by people who have a very vested interest in different activities that might be contraindicated with the Board,” Gray said. She added that when the current members were appointed to the committee, two Board members expressed reservations about the appointments and refused to support of a few of the applicants.
“Everyone showed up within 20 minutes to populate this committee,” Gray said, adding there was no consideration given to a lot of interested people “who didn’t make it in that time window.”
Gray lauded the Board for its performance and said the directors have largely handled matters well. She called it the best Board she has ever seen in Ocean Pines.
“My concern is that the same group has been attacking recently one of the members sitting on the Board,” she said without providing additional detail. “We don’t need that kind of potential behavior …”
She said having two sitting Board members decline to confirm appointments of “these people,” the new committee members, “made me have lot of concern, and I waited to see what would happen.”
Gray said the Board can address the matter easily without “insulting
their integrity” by once again cleaning house and reconstituting the Election Committee. She suggested they simply thank the current members for their interest and service and invite them to reapply for a committee seat along with all of the other applicants.
“This is not dodge ball. It’s not the first six people in the door to get on the committee and that apparently came close to what happened,” Gray said. She asked the Board to find committee members who will provide good service for Ocean Pines.
Rebecca Ferguson, a retired nurse who used to work in cardiac care, also spoke during Public Comments to thank the association for moving forward on the racquet sports community’s request for an outdoor accessible automated external defibrillator.
General Manager John Viola announced the addition of another AED during his monthly report to the Board.
“The fact that the Board has listened to the people that have requested to move this AED to a public space. I’m just so pleased. I’m thrilled,” she said.
Ferguson, also a racquet sports member, supported moving the AED at the racquet center from locked position to a public position. She said there is currently only an AED inside the racquet sports building and no one knows how to get to it in an emergency. She said she queried people using the center and no one knew how to access the AED and one person from outside of the community didn’t even know there was an AED.
She cited the recent resuscitation of Buffalo Bills player Damar Hamlin as an example of the importance of access to an AED. She said the reason he is still alive is because an AED was accessible and staff knew ow to use it.
She said everyone should know how to use at AED. “I’m encouraging that there’s an audit of the amount of people in Ocean Pines that are members that are currently up to date in CPR,” she said.
Ferguson said that an AED needs to be 1.5 minutes from any spot on the campus of Ocean Pines to deliv-
er an effective response at the site. For every minute that is lost, the likelihood of survival is decreased by 10 percent, she said. “We’re talking about money spent here to save a life,” she said, adding that she personally has been involved in three resuscitations, all of which occurred in a controlled setting.
As a school nurse, Ferguson said she checked the AED and her procedures to responding if someone needed medical assistance ever day. She said it is important for OPA staff trained and to practice how to respond to an emergency because that helps emergency responders when they get to the site. She also encourages an AED to be brought to every emergency response even if it doesn’t seem necessary.
Ferguson praised the stable financial position of the OPA and thanked the Board for working to
make sure the OPA is a financially viable homeowners association. She singled out golf as a particular money-maker for the association and said the money invested in the golf course has paid off in increased revenue for the OPA.
But, she said, the OPA also needs to pay attention to the racquet center, which she called “deteriorating” with a damaged back board and molding nets. She said the is equipment displaced into the hallways blocking access to the bathroom and surrounding the racquet center because there is no storage.
“There are millions of people playing pickleball,” she said, adding that the Ocean Pines complex is tournament quality. But the OPA doesn’t have the facilities or parking to support that. she added.
“We need to think about using our land so that we can get the best revenue ad bang for the buck for what we’ve got,” she said, indicating that a recreation complex with dog park and a “minimally used” ballpark may not be that best use.
She encouraged development of a three to five-year plan for use and growth of the racquet center.
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Board considers appeal process for CPI violators
M-01 amendment would bring OPA into compliance with new state law
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Property owners will soon have a right to appeal to the Board of Directions any compliance actions taken against them by the Ocean Pines Association’s Department of Compliance, Permitting and Inspections and Architectural Review Committee.
In response to state legislation passed last year amending the Maryland Homeowners Association Act, the OPA is updating Resolution M-01, Policy and Compliance Procedures for Declaration of Restrictions and ARC Guidelines Violations, to include an appeals process.
Director Colette Horn presented the revised resolution to the Board for a first reading during a Jan. 21 meeting.
She said the purpose of her motion is to bring the language of the resolution in line with recent changes in state laws as they pertain to sanctions imposed for continuing violations of the OPA’s governing documents.
Horn said the revisions are proposed by the Architectural Review Committee to address specific revisions to the homeowners association act following the passage of House Bill 615 by the Maryland Legislature. The new law came into effect on Oct. 1, 2022.
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Horn said the current resolution M-01 is generally a fair representation of the requirements of the state law with one major exception, the lack of a Board appeal hearing process available to homeowners prior to sanctions for noncompliance.
The proposed changes contain requirements for informing members of violations and mandates that property owners whose membership rights are restricted as a penalty for continuing violation be given the right of appeal.
The state law states that they have the opportunity to appeal the restriction to the HOA’s governing body in an executive session, a meeting not open to the public.
“To summarize this really is in reaction to HB 615 and the requirements to that law passed back in October,” OPA President Doug Parks said, adding “We have to update our M-01 in order to be in compliance with that…”
The revisions to the OPA’s Resolution M-01 are meant to clarify the process for identifying, declaring, and giving notice of violations and to incorporate the new state mandates.
Horn said the proposed revisions appear to achieve that intended objective.
However, the requirement is that a hearing in an
To Page 24
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Appeal process
From Page 22
“executive session” of the governing body is granted without clear definition of that term.
Maryland restricts governing bodies of homeowners associations from holding closed meetings to eight specific purposes, and that in effect authorizes many of them.
But that does not include meetings to hear appeals to decisions made in the course of enforcement of declarations of restrictions and architectural guidelines, hence the need of an amendment to M-01.
Horn said with the approval of the revisions to Resolution M-01 the Board, in consultation with counsel, will need to verify that the envisioned changes meet the intent of the new law.
She also said the Board’s closed session motion form will need to be updated to provide the reason for the closed session meeting.
Horn outlined changes to the OPA’s process for notifying property owners of a violation of the guide-
lines or restrictive covenants. Initial steps in the process, including sending out letters to notify property owners of violations, will continue to be handle by the Compliance, Permits, and Inspections office.
The content to the notice letter sent to property owners will be amended to include language taken from the new state law, including notice that CPI may need to enter onto a property to determine if a violation exists.
Failure to bring a property into compliance within 15 days will result in a second notification being sent to property owners.
But instead of coming from CPI, the letter now has to come from the Board and will notify the property owner of their right to request an appeal hearing before an executive session of the board within 10 days.
“This is the only time this opportunity will be available to the Responsible Party. Failure to make contact within that time voids the Responsible Party’s right to request an Appeal Hearing and OPA will continue with the enforcement tools
Let’s maintain our driveways before snow arrives
available to force compliance,” the revised resolution states.
If a property owner requests an appeal hearing, the Board will respond with a schedule of available dates.
If the property owner loses the appeal or does not appear for the hearing and Board determines the imposition of sanctions is valid, any sanctions previously authorized will be put in place immediately and remain in place until the property is brought into compliance, the resolution states.
Parks wondered whether the appeal hearing has to be held in closed or open session.
“Do we need to clean up that language and specifically define what executive session means to the HOA?” he asked.
“So it’s very clear for the membership that they know this discussion will happen in a closed session,” he added.
Horn said the law refers to executive sessions and that is usually a closed meeting.
However, she acknowledged that
is an area for which clarification is needed.
Director Steve Jacobs said he thinks the Board needs the guidance of legal counsel before passing any changes to the resolution.
He said it may meet the intent of the law to give a property owner filing an appeal the option of having a closed or open session hearing.
“That may suffice. I don’t know,” he said.
Parks told Jacobs to reach out to the By-laws and Resolutions Committee and get that group to contact the OPA’s legal counsel to discuss the definition of executive session and the option of waiving the right to a closed session hearing.
The Board accepted the revised Resolution M-01 on first reading but reserves the opportunity to make changes when it comes back for a second reading.
That could happen as soon as the February Board meeting, although the additional steps of consulting with legal counsel and the By-laws and Resolutions Committee could delay reconsideration somewhat.
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Viola cites OPA shift to out-sourced services
‘Bold move’ has saved money and compensated for employee shortages
By ROTA L. KNOTT Contributing Writer
With the Ocean Pines Association continuing to struggle to recruit qualified employees, the OPA is relying on outside contractors to tackle numerous public works projects. General Manager John Viola said during his Jan. 21 report to the Board of Directors that the OPA would need to hire nine full-time employees to fill vacant positions and handle all of the work being outsourced.
Viola reviewed the status of several public works and general maintenance projects during his report.
He highlighted projects that are being done by contractors that would have been completed in-house in the past, including renovations to the administration building, drainage and pipe replacement, and dock installation.
He said typically Public Works crews would complete a lot of that work at the administration building. But, the department is short-staffed and he anticipated that will continue to be the case for at least another six months. “Yes we have open positions. Just like everybody else in the labor pool.”
As an example, Viola said Public Works crews completed renovations at the golf course maintenance building. But, now because of staff shortages, they wouldn’t be able to do that work in-house.
Public Works currently has four full-time equivalent positions open and it would take another five FTEs [full-time equivalents] to do all of the work being contracted out. Viola noted that the contractors are not having much better luck with hiring employees.
“The contractors are also having trouble getting people,” he said.
Viola said the OPA in using outside contractors for pipe replacement and drainage work and it would take another two FTEs to do the work in house. Similarly, he said it would take 1 FTE each to handle bulkhead topsoil and sod, HVAC and refrigeration, plumbing work in house, 2 FTEs for drainage ditches, one-half FTE each for painting, fencing and concrete work, T docks replacement ad one-quarter each for road painting, and carpet and tile installation.
Viola said it was a “bold move” to outsource some of the work, and that eventually led to major savings for homeowners on initiatives including drainage, bulkheads, roads, and T-dock replacement.
Whether or not to outsource certain services has been a contentious issue in Ocean Pines. At one point there was a proposal afoot to outsource the entire management of the Ocean Pines Association, and there have been proposals to outsource financial management. The concern has always been that to do means to some extent a loss of internal control over OPA affairs.
Marina gas dock
New docks for the gas pumps at the Yacht Club marina are being fabricated by contractors and the OPA hopes to have them installed by May.
Viola said the Board approved the dock replacement project in September, at an estimated cost of $633,500, including $350,720 for the docks, $169,521 for the gas lines, and $113,259 in other costs. Final drawings for the docks were signed off by engineers on Jan. 13, allowing the contractors to begin fabricating the structures.
Viola said Fisher Marine will be the local contractor remove the old pier and install the new docks as soon as they are received. He said he hopes that will be by mid-March so the entire project can be finished by May.
AED for Racquet Club
An automated external defibrillator is being purchased and will be installed outdoors at the Racquet Center.
The OPA already has 19 AEDs in place in its facilities. They are located inside at the Racquet Center, public works, all of the swimming pools, inside at the golf clubhouse and a portable unit for outside, recreation and parks, both floors at the Yacht Club, Beach Club, the marina, administration building, and in police cars.
Viola said staff is trained to use the AEDs in case of an emergency. “Safe-
ty is always important,” he said, adding that an OPA bartender once saved a person’s life using an AED.
Bainbridge Park project
In response to a question during the Public Comments segment of a Board meeting more than a month ago, Viola and Senior Executive Office Manager provided an update on a stormwater management project in Bainbridge Park. They said the project was never about drainage but rather that it was designed to improve the quality of water running off into the bay.
“People misunderstood that this would solve drainage,” Viola said. He added that he believes the drainage in the area is better as a result of the project but it that was not the goal. “It truly believe the drainage is better. But it depends on any given day and where you live.”
He said the project began in March 2021 with a budget of $717,337, with OPA contributing $314,783 and a grant of $402,554. The project wrapped up in October 2021 with volunteers installing planting around the new pond to help filter the runoff.
In response to a question from Director Stuart Lakernick, Viola said original plans for the project were to include piping out to Beauchamp Road to address drainage issues in the area. However, the OPA was unable to secure a grant for the work. “We didn’t get the funding that we thought we would get.”
Drainage improvements were completed on other roads, including Beacon Hill and Sandyhook.
Administration building
The OPA is addressing long-deferred maintenance of the administration building with an extensive makeover. The work being completed by contractors include replacement of heating, ventilation, and air conditioning equipment, installation of new ceilings and flooring, and painting.
“The administration building certainly needed renovation. It’s a long time coming,” Viola said, adding that he is hoping all of the materials for the project will arrive in a timely fashion.
He anticipated the renovation will be completed by mid-February.
Amenities updates
Advertising continues for open positions at the OPA’s swimming pools, Viola said. He added that the association continues to struggle with hiring lifeguards and is trying new ways to attract applicants, including displaying a banner at the Sports Core.
At the golf course, the OPA continues to sell rounds thanks to the mild weather. Viola said there is a mis-perception that outside play generates a lot of revenue, but the majority of revenue at the golf course is from local golfers who are OPA members but not prepaid members of the golf amenity.
He said the course is starting to get requests for junior golf, club fittings, and lessons. They are working enhance package programming and bring on additional staff to offer lessons. “I truly believe we’ll have more people there for clinics as well as for lessons.”
The Recreation and Parks programs are busy, Viola said, adding that if the department had a bigger building it could fill it with activities. Youth basketball camp with 165 participants and indoor youth soccer with 100 participants are both full to capacity. “The place is packed,” he said.
The Racquet Sports Center is now open daily 8 a.m. to 4 p.m. and is doing well with member play and some drop-in play on good weather days, Viola said. Indoor pickleball fills up each week, as well.
Dashboard activity
The Compliance, Permits, and Inspections office started December 2022 with 105 outstanding violations and processed and additional 78 violations during the month. CPI was able to close out 55 violations, leaving 128 outstanding at the end of the year. Of those cases 62 are being addressed by
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Directors do clean-up of Book of Resolutions
By-laws and Resolution panel recommendations sail through with no opposition
By ROTA L. KNOTT
Contributing Writer
In an effort to bring the Ocean Pines Association’s Book of Resolutions up to date, the By-laws and Resolutions Advisory Committee proposed changes to clarify who can represent people presenting petitions to the Board of Directors, require comments from legal counsel to be attached to updated resolutions, and formally establish a drainage reserve fund.
GM report
From Page 26
legal counsel, and some date to 2019 because of court closures during the pandemic, according to Martin.
Public Works started December with 69 open work orders and receive 53 new work orders during the month. Of those new work orders 18 were for drainage, 3 landscaping and grounds, 8 roads, 3 signs, and 21 general maintenance. Public Works closed out 68 work orders, leaving 54 open.
On the customer service side of operations, the OPA received 54 contacts from residents in December via email at info@oceanpines.org or phone calls. Linda Martin, OPA executive office manager, said 10 calls were for amenities, 9 for CPI violations, 22 general information, and 13 for public works.
“Any time I’ve sent something to info@oceanpines.org they’re really quick at getting back to me,” Lakernick said. He commended staff for their quick response to inquiries from community members.
“I’ve got to tell you this is one of the best things that we’ve done from the very beginning and of course putting the right people on it,” Viola said.
Director Steve Jacobs presented the slate of recommendations for changes to the various resolutions on behalf of the committee.
He said the committee is attempting to catch up on updates to a variety of resolutions, particularly of those that govern actions of the Board.
He said the Board needs to act on the Resolutions to officially accept the proposed changes. The Board accepted most of the resolutions on first reading during a Jan. 21 meeting; they will be subject to a second reading prior to approval.
Resolution B-07
An amendment to Resolution B-07 is to clarify who may represent petitioners in addressing the Board on the topic of the submitted petition.
As background, Jacobs said the current version of the Resolution does not explicitly state that a person making presentation on behalf of the petitioners to the Board must be a member eligible to vote on the petition.
He said the updated resolution will change that language to require the person to be a member,
Additionally, it provides that the representative of the petitioners may be assisted by others who do not have to be a member of the association.
Jacobs said that allows for the petitioners to have the assistance of a person who has expertise and knowledge of the subject matter of the petition when addressing the Board. As example, he said that could be someone with expertise in environmental matters if that was the topic of the petition.
“It does in the long run I think give the Board an opportunity to gather a
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variety of opinions as to how to proceed,” he said.
Resolution B-01
The committee recommended an update to Resolution B-01 to establish that when the Board seeks a written review of a proposal to add or amend a resolution, any opinion on the matter issued by legal counsel should also be entered into the Book of Regulations.
The current Resolution B-01 does not require legal review of a new or amended resolution.
The Board is always free to seek legal review of any proposed change.
This change in Resolution B-01 requires that where written review has occurred that legal counsel affirm that the review took place by signing off on the change prior to entering the change in the Book of Resolutions.
In presenting the proposed revisions, Jacobs said the proposal would make it easier for people to understand and review why a resolution was enacted or amended by having the legal opinion attached to it.
OPA President Doug Parks said the original resolution allowed the Bylaws and Resolutions Committee to seek advice from legal counsel prior to Board action on a resolution.
He questioned why the association would wait until a draft resolution is presented to the Board to get a legal opinion on the document.
He said legal input is important earlier in the process to ensure there are no conflicts with other governing documents and the committee should be able to seek that advice from legal counsel.
Jacobs said the change simply seeks to make sure any legal opinion obtained is included in the Book of Resolutions along with the subject resolution.
“Where there’s a written review there should be a record that accompanies that,” he said.
Parks noted that part of the responsibility of the By-laws and Resolutions Committee is to ensure that the resolutions it recommends do not conflict with the other governing documents, or to recommend legal review if they are unsure. “That’s the way I would see them bringing it forward. They are perfectly within their authority to
make a recommendation to us,” he said.
Jacobs agreed that is consistent with what the committee is supposed to do and the proposed amendment to the resolution doesn’t change that.
Still Parks said he would feel more comfortable if language was retained in the resolution stating the committee may recommend a legal review, as opposed to requiring it.
It’s not clear if Parks’s reservation will make it into the resolution before there’s a vote on it in the second reading.
Resolution F-03
Another amendment would revise Resolution F-03, Financial Reserve Accounts, to establish a separate Drainage Reserve Account to specifically address expenditures for drainage.
The current Resolution F-03 only addresses “associated drainage” as part of the road maintenance reserve account.
The creation of reserve accounts has aided in providing funding to maintain and replace capital assets, to allow for better planning in multi-year plans, and to provide for better long term budget planning and to offset certain expenditures over a longer period of time. Drainage efforts undertaken by the OPA been on the increase over several years. Establishing a reserve account would assist in planning for and addressing drainage projects in the future.
The Bylaws and Resolutions Committee is proposing the establishment of separate reserve account for drainage efforts that take place regularly in Ocean Pines.
Parks said the OPA already has this fund in place and the update to the resolution is simply catching up on the required documentation.
Resolution M-05
A change to Resolution M-05 clarifies who has legal authority in Ocean Pines regarding animal control. Under Maryland statute, the authority for enforcing animal control issues regulations and ordinances rests with Worcester County. However, the resolution acknowledges that there may be instances where the Ocean Pines
Police Department may have to act and take custody of an animal where Worcester County Animal Control is unable to act at that particular time.
In those cases, the general manager should have a schedule of fees for the impoundment of an animal.
Resolution M-08
The committee recommended rescinding Resolution M-08 regarding association manuals. The committee recommended that there are certain OPA policy and operational manuals but there is no way of determining whether they are kept up to date.
Therefore, it suggested the resolution be eliminated.
Parks agreed that operational manuals are not the purview of the Board but he was hesitant to eliminate the resolution completely.
He pointed out that there are financial policy manuals that establish items such as the general manager’s spending authority, that the Board must ensure are kept up to date.
If the resolution is rescinded, he wanted to know where the financial policy maintenance should be addressed.
“I think it’s absolutely imperative that we keep the financial policy manual,” Parks said.
Director Colette Horn said in addition to the financial policy manual there are other manuals like human resources that must be maintained and for which the Board is ultimately responsible.
She said the Board is responsible for ensuring that policies in all departments that may have legal ramifications are kept up to date.
Resolution C-14
The Board also approved on second reading a minor change to Resolution C-14, Racquet Sports Advisory Committee, to replace the term “paddle ball” with “platform tennis.”
That change will bring the language of the resolution in line with the racquet sports offered by the Ocean Pines Racquet Center.
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Assessment decrease adjusted; base rate revised to $892
Committee recommendations add $17 back to base assessment; committee also suggests hefty increase in reserve funding from retained earnings
By TOM STAUSS Publisher
The latest iteration of the proposed 202324 budget after some suggested changes in the preliminary proposed draft anticipates a base assessment of $892, a $4 decrease from the current $896. That’s an add-back of $17 in the base assessment over the original proposal of $875.
The revised assessment decrease is the result of some proposed revisions in the draft budget by the Budget and Finance Advisory Committee. The panel reviewed the initial budget draft in two days of meeting in early January.
As a result of the committee review, the proposed budget has increased from $16,634,659 to $16,769,314, an adjustment of about $135,000.
The committee suggested lowering the proposed increase in beach parking passes, the one change in the proposed budget that OPA members might notice.
In General Manager John Viola’s initial draft, beach parking passes were slated to increase $35, from $215 to $250 for those with no other amenity memberships. That’s was a 16.3 percent increase.
For those who purchase other amenity memberships, the beach parking pass would have increased $25 from $140 to $165, a 17.9 percent hike.
Committee members during their review noted the increase was much higher than the inflation rate, countering the staff’s initial position that supply and demand justified the higher rate.
Viola subsequently lowered the proposed increase in parking fees, to $230 standalone and $150 with other memberships. It cost the OPA $41,135 in projected revenue, which then had to be added to the assessment.
In the second draft of the proposed budget, net beach parking revenue was reduced from $581,739 to $540,604.
There were no other changes in proposed amenity membership fees as proposed in the initial draft, which were modest and under the cost of living percentage. There were no proposed increased in most daily fees, which for the most part were not increased from the current fee structure.
Another factor that had an effect on the assessment was a committee recommendations to add another 1 percent to what Viola calls ‘mark to market’ -- a term that means fair market value in a competitive labor market -- and increases re-
lated to employee promotions.
In addition, the committee suggested adding another 1 percent for merit pay increases.
In the preliminary proposed budget, employees were slated to receive on average three percent merit increases, with an additional one percent when someone is promoted.
These two changes added to overall payroll cost throughout OPA departments.
The committee recommended that Viola and
staff review CPI fees for a possible increase. They’ve not been changed since 2019.
The committee is recommending an increase in the replacement value of all assets kept in the replacement reserves from the current range of 22 to 28 percent to 33-35 percent.
During discussion, Viola said that a portion of operating fund surpluses of recent years could be allocated to reserves to help reach the recommended 33-35 percent range.
He suggested a $1.5 million reallocation. Viola later told the Progress that if the Board of Directors would like to return some of that suggested $1.5 million in operating surpluses to OPA members, it could do so.
If, for example, the Board would decide to divert half of that $1.5 million for assessment reduction, or $750,000, it would reduce the assessment by roughly $87.
During its own budget review later in January, the directors did not discuss diverting this $1.5 million in surplus funds to property owners in the form of a larger decrease in the assessment.
During its review, the committee endorsed proposed changes in the OPA’s leaf removal policy including paid access to the Public Works yard for
30 Ocean Pines PROGRESS February 2023 OPA FINANCES
OPA FINANCES
members, discontinuing contractor access to the yard, and changes to the vacuum truck usage.
The Board of Directors has not yet formally approved these changes.
The committee noted that Fisher Marine continues to deliver favorable rates for bulkhead replacement.
Viola told the committee that Parks and Recreation facilities are operating at peak capacity and that more space would provide opportunities to enhance available programs and increase revenue. Demand for services increased following the covid downturn, he said.
There are currently no plans on the drawing board for adding to the Community Center or addiing new facilities elsewhere.
Viola told the committee that marinas have consistently produced $225,000 to $250,000 net operational profit the last several years and that OPA will be investing in necessary upgrades and improvements with eyes on continuing those positive results.
During the Jan. 4 budget review meeting, the Ocean Pines Volunteer Fire Department’s request for funding support was examined. It includes a request for repair and maintenance of $50,000, a decrease of $30,000 over the current year’s budget.
The committee asked the OPVFD to take a second look at this to see if this is reasonable or if it should be adjusted.
Similarly, the committee asked the department to review EMS billings of $520,000 are budgeted equal to the prior year’s actuals, which is two years removed from next year’s budget.
In the second draft of the proposed budget, the requested funding support was increased from $994,578 to $1,008,917.
The committee was told that the department will be looking at a new service provider for handling billings with insurance companies. The committee recommended that any discussion with the current or potentially new service provider include options to increase billing revenue.
The proposed police department budget includes funding for five open positions. Two recruits are scheduled to attend the academy immediately with three open positions remaining. The committee suggested that the vehicle gas budget seemed low and might need adjusting.
In the second draft of the pro-
posed budget, net funding for the police department was increased from $994,578 to $1,008,917.
For racquet sports, the budget includes $45,000 or so for a facility manager, an increase over a vacated position.
The plan going forward is to include funding in the 2024-25 budget for renovation the pro shop building, likely using the existing foundation. The warming hut will also be included in any renovation plan.
Viola noted that all three racquet sports have been trending positive over the last few years and expectations are that will continue.
Revenue projections for golf include an increase in golf package rates that Viola said still compare favorably to local market competition. Golf range income was strong this year and a revenue increase next year is projected, while merchandise sales are projected lower because of anticipated decline in golf club sales. Even so, Director of Golf Bob Beckelman wants to focus on high margin merchandise going forward.
Beckelman is launching a new initiative this summer to expand lessons, clinics, and summer camps through independent instructors. The OPA will reap a 20 percent of any instructor-led service fee.
The golf maintenance budget shows a $25,000 reduction in the chemicals and fertilizer expense, $25K, but overall there is an increase. Other than analysis and planning, there will be no spending to replace the golf course’s irrigation system next year.
In the food and beverage budgets, Matt Ortt of the Matt Ortt Companies said that sales are still heavily weather dependent at all three venues managed by MOC.
Ortt reported that while wholesale prices have increased, MOC is able to negotiate volume discounts that have helped to offset those higher costs. However, liquor prices are up, and new added delivery charges have hampered margins.
In Aquatics, Director Kathleen Cook said her biggest concern continues to be adequate lifeguards for the coming summer season. Proposed increases in payroll reflect the need. Efforts are under way to attract qualified staff and to train eligible candidates.
While the Aquatics dept turned a modest operational profit in 2022 and the same is anticipated for 2023, the proposed 2024 budget reflects a loss should full staffing be attained.
Proposed 2023-24 OPA Budget - Second Draft
Hearing for proposed budget Feb. 1
Ahearing on the 2023-24 budget is scheduled for Feb. 1 as a hybrid of in-person and virtual, with seating available in the Clubhouse Meeting Room on 100 Clubhouse Drive. The meeting is scheduled to start at 11 a.m.
Valid property owner ID cards are a requirement to attend Board meetings. Cards may be obtained at the front counter of the Ocean Pines Administration Building on 239 Ocean Parkway. The office is open from 8 a.m. to 4:25 p.m., Monday through Friday.
Property owners must bring a driver’s license for verification to obtain a card. First-time cards are free, and replacement cards are $5. Property owner ID cards are the same s membership cards.
There is no deadline to get a card. For questions, call 410-641-7717 or email info@oceanpines.org.
By TOM STAUSS Publisher
The Ocean Pines Association earned a $98,060 operating surplus in December, a slight reduction from the $114,329 record-
ed in November, but still robust for this time of year. That increases the cumulative surplus for the 2022-23 fiscal year to $1,035,894, with four months in the year.
In December, General Manager
John Viola and Controller/Director of Finance Steve Phillips had been projecting a conservative year-end operating fund surplus of $840,414.
Without coming up with a projection, Viola in remarks during the
Jan. 23 meeting said the surplus would be more than that based on the latest numbers.
Indeed, if the OPA can somehow replicate the financial performance of November and December for the remaining months of the fiscal year, the year-end surplus would be in the neighborhood of $1.4 million.
So far this year, there have been no monthly operating deficits.
According to a financial report by Controller/Director of Finance Steve Phillips, the December positive variance to budget resulted from revenues over budget by $20,790 and expenses under budget by $77,270.
The positive operating fund surplus for the year through December resulted from revenues over budget by $928,204 and total expenses under budget by $107,690.
For the month, all amenity departments except beach parking were in the red, the same as occurred in November.
Amenity departments except for aquatics (-$6,757), Clubhouse Grille (-$875), Beach Club (-$427) and Beach Parking (-$1) out-performed their budgets for the month.
Through December, all amenity departments except for tennis were in the black and all departments except for the Clubhouse Grille were ahead of budget.
Golf is the leading amenity relative to budget, with a $202,503 operating surplus through December.
General Manager John Viola, during remarks part of his report to the Board of Directors Jan. 21, mentioned the continued excellent performance of golf aided by recent mild weather.
The Recreation and Parks Department, funded by annual assessment dollars and class and event fees, was ahead of budget for the year by $84,358, continuing the pattern of recent months.
Golf was the top producer for the month relative to budget ($4,358), followed by pickleball ($2,298), tennis ($1,326), and platform tennis ($1,112).
Aquatics was under budget by $6,757, and the Yacht Club missed its budget for the month by $3,326.
Other departments that had a negative variance to budget, though in modest amounts, were the Clubhouse Grille (-$875), and the Beach Club (-$427).
For the year through December, Beach Parking is the top producer among the amenities, with $487,224 in net earnings, followed closely by
32 Ocean Pines PROGRESS February 2023 OPA FINANCES
OPA Director of Finance/Controller Steve Phillips Traditional & Cremation Services Available for Pre-Need Arrangements The Burbage Funeral Home 108 Williams Street, Berlin 208 W. Federal Street, Snow Hill Berlin• Ocean City Ocean Pines • Snow Hill 410-641-2111 Since 1810, we’ve been caring for people like you “An Eastern Shore Tradition” OPA records a $98,000 surplus in December Positive operating fund variance for the year now in excess of $1 million MONTH MONTH YTD YTD YTD ACTUAL BUDGET $ VARIANCE ACTUAL BUDGET $ VARIANCE LAST YEAR GENERAL ADMIN 3,503 3,384 119 5,896,873 5,907,343 (10,470) 6,083,347 MANAGER'S OFFICE (23,126) (23,483) 357 (193,993) (197,048) 3,054 (197,800) FINANCE (62,768) (64,806) 2,038 (520,853) (540,557) 19,704 (477,656) PUBLIC RELATIONS (18,597) (10,916) (7,681) (176,580) (178,349) 1,769 (135,802) COMPLIANCE / PERMITS (11,209) (7,989) (3,220) (65,411) (38,481) (26,931) 2,259 GENERAL MAINT (46,824) (61,273) 14,449 (415,895) (494,941) 79,046 (406,443) PUBLIC WORKS (106,489) (155,224) 48,735 (937,465) (1,110,515) 173,050 (913,141) FIRE / EMS (88,669) (88,669) - (709,349) (709,349) - (496,633) POLICE (134,215) (153,283) 19,068 (705,010) (795,710) 90,699 (670,168) RECREATION / PARKS (22,962) (47,773) 24,811 (249,837) (334,195) 84,358 (277,194) TENNIS (2,619) (3,945) 1,326 (921) (3,573) 2,652 (12,316) PICKLEBALL (582) (3,551) 2,968 63,651 44,556 19,096 57,428 PLATFORM TENNIS (1,178) (2,290) 1,112 2,256 (10,176) 12,431 3,441 AQUATICS (28,504) (21,747) (6,757) 229,481 87,911 141,569 133,424 GOLF OPS + MAINT (53,580) (57,938) 4,358 463,440 260,937 202,503 438,582 CLUBHOUSE GRILLE (7,902) (7,027) (875) 55,110 55,780 (670) 51,421 BEACH CLUB (3,949) (3,521) (427) 226,978 139,765 87,213 156,411 BEACH PARKING 10,989 10,990 (1) 487,224 464,007 23,216 453,113 YACHT CLUB (64,635) (61,309) (3,326) 360,057 261,703 98,354 421,972 MARINAS (3,377) (4,383) 1,005 249,856 214,605 35,251 251,372 NET OPERATING (666,693) (764,753) 98,060 4,059,610 3,023,716 1,035,894 4,465,614 OCEAN
NET OPERATING BY DEPARTMENT DECEMBER 2022 1/18/2023 OPA NET OPERATING RESULTS BY DEPARTMENT - DECEMBER 2022
Source:
PINES ASSOCIATION
u
December financials
From Page 34
golf, with $463,440 in net earnings, and the Yacht Club ($360,057), marinas ($249,856), Aquatics ($229,481), and the Beach Club ($226,978).
The next tier of producers include pickleball with $63,651 in net earnings through December, followed by the Clubhouse Grille ($55,110), and platform tennis ($2,256).
Tennis has a slight operating deficit through December (-$921).
Compared to budget, golf’s $202,503 positive variance through December was followed by Aquatics ($141,569), the Yacht Club ($98,354), the Beach Club ($87,213), Marinas ($35,251), Beach Parking ($23,216), pickleball ($19,096), platform tennis ($12,431), and tennis ($2,652).
The Clubhouse Grille is the only amenity with a negative variance to budget through December, (-$670).
All three food and beverage venues managed by the Matt Ortt Companies are performing well, suggesting that a boycott of MOC venues advocated by some in the “Justice for Gavin (Knupp)” campaign has not had any measurable impact in Ocean Pines.
Reserve summary -- The Dec. 31 reserve summary indicates total reserves of $8.254 million, down from $8.814 million in November.
The replacement reserve balance in December was $5.88 million, with bulkheads and waterways at $1.118 million, roads at $839,328, drainage at $213,181, and new capital at $130,255.
Balance Sheet -- The OPA’s balance sheet as of Dec. 31 shows total asset of $40,568,750, up from $39,015,242 at the same time in 2021.
Amenity memberships decrease, but revenue is up nonetheless
By TOM STAUSS Publisher
An amenity membership summary included as part of the Dec. 31 Ocean Pines Association financial report shows a pattern of decreasing amenity membership this year, but with revenue up in what may seem to be an anomalous result.
Indeed, total amenity membership revenues through Dec. 31 were 110 percent or $104,126 ahead of budget.
The positive variances reflected increases in membership dues this year.
Although no one wants to see memberships decline, the OPA allows access to its amenities through annual memberships or daily user fees. Some households find the latter easier to handle financially.
Total memberships declined from 3,912 in 2021-22 to 3,566 this fiscal year, generating $1,012,928 in revenue through Dec. 31. That was a 110 percent of budget.
Total memberships are not likely to change much for the remainder of the 2021-22 fiscal year, which ends April 30.
Beach parking is one of two amenity departments that didn’t reach its revenue target this year, but at 98 percent it was close. There
were 2,381 beach parking passes sold through Dec. 30, compared to 2,396 for the same time the year prior. That generated $446,646 in revenue, under budget by $9,649.
Aquatics was 117 percent and $47,809 ahead of budget for the year. Memberships sold dropped from 953 to 753 year-over-year. That generated $287,944 in revenue.
Golf not including cart packages was 117 percent and $24,287 ahead of budget through Dec. 31. There were 86 memberships sold, down from 100 year-over-year. Golf membership revenue totaled $140,400.
Golf including cart packages was 124 percent and $47,487 ahead of budget, on total revenue of $194,600. Memberships including lifetime members dropped from 160 to 105 year-over-year.
Tennis was the other amenity department that fell short of meeting its target, at 94 percent and $1,177 under budget on revenue of $20,410. But total tennis memberships increased year-over-year from 72 to 74. Tennis was the only amenity whose membership grew.
Platform tennis was 105 percent and $691 ahead of budget, on revenue of $12,785. Year-over-year, platform tennis memberships dropped from 67 to 60.
Pickleball was 136 percent and
$15,145 ahead of budget, on total revenue of $41,870. Year-over year, the membership dropped from 239 to 174.
Combo racquet sports were 140 percent and $3,820 ahead of budget, on total revenue of $9,625. Memberships sold decreased from 25 to 19 year-over-year.
Total racquet sports including combos were 122 per cent and $18,499 ahead of budget, on revenue of $84,690. Year-over-year, membership in this category dropped from 403 to 327.
OPA flush with cash
Ocean Pines Association Treasurer and Board Member Monica delivered an upbeat report on the state of OPA finances as of Dec. 31.
She said that as of that date, the OPA had about $15.1 million in cash, an increase of about $1.1 million for the same time in 2021.
The December number was a $900,000 decrease from November.
She said that $13.3 million in CDARs, with another $2 million in insured cash sweep, money market and other operating accounts.
With interest rates continuing to increase, Rakowski said the OPA will see “an upward trend in interest income realized in reserve accounts in the coming months.”
State approves grant for Southside firehouse
State Senator Mary Beth Carozza has announced that the Board of Public Works on Jan. 25 approved $250,000 for the Southside Firehouse project, one of two tranches of state funding for the project.
“Both Del. [Wayne] Hartman and I made this a local bond priority project last session,” she said in her announcement.
This grant is in addition to a pledged $1.35 million grant from the state announced last year, bringing the total of state support for the project to $1.6 million.
February 2023 Ocean Pines PROGRESS 33 OPA FINANCES
BULKHEADS NEW REPLACEMENT WATERWAYS ROADS DRAINAGE CAPITAL TOTAL BALANCE APRIL 30, 2022 4,769,395 535,600 4,666 687,014 150,090 6,146,765 TRANSFERS FROM OPERATING FUND: CONTRIBUTIONS FROM ASSESSMENTS 1,710,166 1,053,850 - - - 2,764,016 TRANSFER FROM PRIOR YEARS' SURPLUS 75,000 700,000 210,000 985,000 INTEREST INCOME (EXPENSE) 84,976 17,461 10,534 6,546 1,570 121,086 RESTRICTED CONTRIBUTIONS: TRANSFER OF CASINO FUNDS 350,000 100,000 450,000 TRANSFERS TO OPERATING FUND: OPERATING EXPENSES (418,808) (418,808) CAPITAL ADDITIONS (756,489) (225,872) (580,179) (231,405) (1,793,945) BALANCE DECEMBER 31, 2022 5,883,048 1,188,103 839,328 213,381 130,255 8,254,115 RESERVE SUMMARY PERIOD ENDED 12/31/2022 UNAUDITED RESERVE SUMMARY PERIOD ENDING 12/31/2022 UNAUDITED
Source: OPA Director of Finance/Controller Steve Phillips
Plenty to do, see and taste at winter farmers market
Ocean Pines’ offseason marketplace features local produce,meats, breads and community groups
Winters in Ocean Pines can be chilly, but Saturday mornings are warm and welcoming at the Ocean Pines Farmers and Artisans Market.
Market Manager David Bean said many make it a habit to bundle up and gather with family and friends at the market each week.
“‘Winter market warrior’ is a title the market shares with its shoppers and merchants alike, and the number of those who brave the elements of a winter morning have grown significantly over the years,” Bean said. “We have a steady and growing winter artisan participation that is beginning to match the number of participating green market merchants.”
The marketplace will celebrate its 12th anniversary this year, and the 11th year for the offseason market.
“It's rewarding to see the embrace of the community supporting all those who participate. Our merchants saw the desire for a year-round marketplace, and we are hoping this love for the offseason market will only continue to grow stronger over the coming years,” Bean said.
For Ocean Pines shoppers, the winter marketplace provides a source for locally grown winter crops and other products from area producers.
Story Hill Farm from Frankford, Delaware brings their grass-fed beef, pork and poultry, while Brightman Farm sells fresh eggs by the dozen.
Bean said shoppers visit the winter market to stock up on local ingredients, perfect for cozy cooking like locally grown sweet and crunchy carrots, buttery potatoes, and winter radishes.
Caregiver Support Group meetings
This year, customers of produce merchant D. J. David can enjoy locally grown winter varieties of radishes, along with Brussel sprouts and frostkissed cabbages. Brandon Brady at Stag Run Farm helps fill customers’ salad bowls with artisan lettuces grown at his farm’s greenhouses.
Many treat themselves to handcrafted pastries and baked goods from the market’s bakers.
John DelVecchio, owner and baker at DelVecchio's Bakery, works through the night to bring fresh baked goods to his Saturday morning customers. His bread selections are popular with his customers, and few can pass on his Danishes, cookies and scones.
“The winter market also features several other bakeries, including those that specialize in gluten free and plant-based baked goods, as well as homestyle baked goods like grandma made,” Bean said.
Other items found at the winter market include spices, honey, jams and jellies, spirits, seafood, and kettle corn.
Bean said the winter merchants also have more time to directly interact with their customers.
“The offseason market gives many shoppers the opportunity to really get to know the merchants, since the merchants have more time to stop and chat during the colder, slower months,” he said.
The market will celebrate Valentine’s Day with a sweetheart market on Saturday, Feb. 11, featuring special activities and all the necessary ingredients for a special Valentine’s dinner.
The Ocean Pines Farmers and Artisans Market is open Saturdays from 9 a.m. to noon in White Horse Park. In-season hours return on March 4, from 8 a.m. to 1 p.m.
LIFESTYLE BRIEFS
Because many people have joined the Caregiver Support Group, meeting times have been expanded.
The group will continue to meet on the second and fourth Thursdays in the Ocean Pines Library. The start times will remain at 3 p.m., but the meeting will now last until 4:30 p.m. so that everyone can participate.
Many neighbors are providing care and seek to share their experiences and ideas for assistance. The meetings are private and confidential.
For additional information, contact Margaret White at Salisbury MAC, 410.742.0505, ext. 128, or at mwhite@macinc.org.
Free square dance lessons
Free square dance will be offered March 1, 8,15, and 22 on Wednesdays from 7-8:45 p.m. at the Ocean Pines Community Center. For information, contact Barbara C. Roos at barbcroos@gmail.com or 908-229-8799.
AARP volunteer tax preparation aid
AARP Tax Aide volunteers have been training for the current tax season and are ready to take appointments.
This year, the program will return to in-person tax preparation where community members can bring their tax records and have their federal and state taxes prepared in a single sitting.
The AARP program is for those with regular wages, retirement income, interest, dividends, capital gains, non-employment income, and most other common tax situations.
This free tax preparation service is available to most everyone, but focuses on seniors and those with lower incomes. Those who make more than six figures, or have rental income/depreciation or multiple brokerage statements or special tax situations, may be better suited by a paid preparer. Those wishing to have their taxes done should call 443-373-2667 to make an appointment.
Tax Aide volunteers serve the Ocean Pines area on Mondays at the li-
brary starting in early February.
Volunteers are in Ocean City on Saturdays, in Salisbury on Tuesdays, and in Pocomoke on Fridays.
AARP membership is not required.
Clients are asked to make sure they have all current tax documents and related information with them and sorted prior to their appointment. A copy of the previous year's return is also helpful.
Card and game luncheon
The Republican Women of Worcester County will be hosting a card and game party luncheon on Thursday, March 23, from 11 a.m. to 2:30 p.m. at the Grand Hotel Terrace Room, 1200 Baltimore Ave., Ocean City, MD. Cost is $30 per person.
Merilee Horvat at 410-641-6110 is handling luncheon selections.
Anglers to meet Feb. 12
The Ocean Pines Anglers Club will meet on Saturday, Feb. 11, at 9:30 a.m. in the Ocean Pines Library. The Speaker will be Captain Sonny Gwin, commercial fisherman and member of the Mid-Atlantic Fishery Management Council. He fishes out of Ocean City Harbor on his vessel Skilligalee. Sonny will discuss the life of a waterman as well as fishing industry issues.
Kiwanis pancake breakfast returns
The traditional Kiwanis Pancake Breakfast returns Saturday, March 4, to the Ocean Pines Community Center’ Assateague Room from 8-11 a.m.. Cost is $9, children under 4 free. Tickets available from Kiwanian Neighbor/Friend or pay at the door.
Kiwanis gather on Wednesdays
Every Wednesday, the local Kiwanis Club meets in the Assateague Room
34 Ocean Pines PROGRESS February 2023 LIFESTYLES u
of the Ocean Pines Community Center. Doors open at 7:30 a.m. 7:30 am for the meeting at 8 am. Third Wednesdays meetings are off-site and will be updated monthly. Guests are encouraged to visit and learn about what the club is and does. See www.kiwanisofopoc.org and Facebook for more information. Kiwanis is a volunteer organization dedicated to helping children and families in Worcester County.
Republican women to meet Feb. 25
The Republican Women of Worcester County will be hosting their Febru-
ary general meeting and Luncheon at Worcester Technical High School on Saturday, Feb. 25, The location of the High School is 6290 Worcester Highway (Rt 113), Newark, MD.
The guest speakers will be Julie Giordano, Wicomico County Executive and Patrick Kerr, president of the Salisbury University College Republicans. Doors open at 10:30 a.m. and the meeting will begin at 11 a.m..
Cost of the luncheon is $23.50 per person, tax and gratuity included. Deadline for reservations is February 16. Seating is limited. To submit reservations, go to gopwomenofworcester.org.
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Micromanaging amenity conduct
Just when it looked as if the Janasek/Wheatley incident and its litigious aftermath was behind us, now comes former Ocean Pines Association President and current Director Colettee Horn with an ill-timed and poorly thought out proposal to keep the controversy alive. It was introduced in the materials packet for the Jan. 21 Board meeting.
It’s a proposed amendment to the M-02 amenity policy that would involve the Board of Directors in enforcing compliance issues at the food and beverage amenities, specifically setting up a mechanism in which the Board could decide whether to suspend an OPA member’s access to certain amenities.
In a nasty aside, the proposed policy amendment would authorize the sending of warning letters to miscreant OPA members whose alleged infractions occurred in 2022 or later. Note to Tom Janasek: Watch your mailbox if this obnoxious invitation to Board micro-management would ever be adopted.
For someone of apparent intelligence, Doctor Horn should ask herself why she seems so obsessed with Tom Janasek and that incident at the Yacht Club involving alcohol and crude language that most sentient beings have already put in the rear view mirror. She has done some good things during her tenure on the Board, most notably engaging in and concluding successful negotiations with General Manager John Viola to his management control
But rather than attempt to come up with a solution to a problem that does not exist, Doctor Horn should heal herself by reflecting on the damage she has inflicted on the OPA’s bottom line during her Board tenure by actions that invite litigation in response. This is litigation -most recently the Janasek amenity suspension case, before that the Rick Farr candidate eligibility case, and before that the Slobodan Trendic referendum qualification case -- in which the Horn point of view and OPA legal arguments in defense of the indefensible failed and failed spectacularly.
Rather than wasting OPA time and resources on quixotic legal adventure, better that she read and reread the OPA governing documents, and then meditate on the proposition that when the OPA governing documents explicitly limit Board authority, that does not give her and like-minded directors license to invent ways to circumvent them.
With respect to behavior at the food and beverage venues, OPA governing documents specify two justifications for suspending access to amenities: failure to pay annual lot assessments and a continuing violation of ARC rules and guidelines. There is also language that confers on the general manager and restaurant managers the ability to enforce decorum, and presumably this includes the right to suspend access for serial vio-
lators. Whether this so-called right would survive a legal challenge is open to debate, but someone else with the fortitude of Tom Janasek fighting a suspension seems unlikely.
A rational club manager deals with bad behavior by escorting the offender from the premises. A rational GM concurs and lets on-site managers manage in accord with rules in place.
Establishing a new mechanism to insert the Board directly into enforcement of decorum rules would be in an obvious and direct conflict with OPA governing documents. These documents don’t allow for the introduction of a new authority for the Board to suspend a member -bad behavior. The Articles of Incorporation explicitly prohibit the addition of authority not already specified. OPA Declaration of Restrictions and by-laws also limit Board authority in this respect. All of these documents supersede and rule over a mere Board resolution.
During her Board tenure, Horn has attempted to impose ethics and conduct rules on Board colleagues, and more recently has displayed an unhealthy preoccupation with her former colleague Tom Janasek. This most recent foray into Board micromanagement needs to be stopped in its tracks. No one elected her Ocean Pines’ scoldin-chief, and a Board majority cannot conceivably want to involve itself in matters best left to
management.
Also during the Jan. 21 Board meeting, Director Frank Daly offered a motion to expand video coverage at OPA food and beverage amenities, which during discussion morphed into a proposal to task the general manager with reviewing camera surveillance throughout Ocean Pines with the aim of augmenting what’s already in place.
It’s hard to view this motion as little more than an attempt to have more cameras available to capture Tom Janasek committing some heinous infraction while imbibing something alcoholic. Here’s a suggestion: Why not buy him a body cam and save OPA members the expense of buying more cameras.
General Manager John Viola intends to appoint a working group to review camera placement in Ocean Pines. He made it clear during the Board meeting that the OPA already has a solid network of cameras in place, later telling the Progress that there are cameras wherever cash changes hands. With recent vandalism at the skateboard park, and an apparent robbery at the police department shed, perhaps additional camera coverage would be warranted in places where security could be of heightened concern.
But let’s not turn Ocean Pines into a surveillance dystopia. ~ Tom
Stauss
Budgetary fine-tuning
The latest iteration of the proposed 202324 budget for the Ocean Pines Association shows only a $4 decrease in the annual budget, to $892, the result of some fine-tuning of General Manager John Viola’s preliminary proposed budget by the Budget and Finance Advisory Committee. The GM’s original budget called for a $21 decrease, from the current $896 to $875.
Here are some additional suggestions for fine-tuning that the Board of Directors might consider before approving the budget document later this month.
• That $4 is inconsequential. Rather than return that to OPA members in the form of an assessment reduction, the Board could it add to the pool of cash already set aside for merit pay increases for deserving staffers. That $4 represents about $34,000 that could be spread around to key employees who help make Ocean Pines the well-managed community it is today. It would be well-deserved gesture of appreciation and a morale booster.
• The projected deficit in Aquatics is a step backward from the department’s financial success in recent years, presumably the result of fully bringing lifeguard staffing to pre-covid levels. It reflects current best-practice efforts to hire more staff, which may or may not come to
fruition, certainly not for a lack of effort. The staffing shortfall isn’t anyone’s fault. They’ve been common occurrences when mid-August comes around, when guards traditionally return to their colleges.
More recently, the shortage has been evident at the beginning of the summer season, necessitating schedule modifications -- i.e. closures of certain pools during the day-- throughout the summer, inconveniencing some members and daily users. There have been complaints, certainly, but many other pool members and daily users roll take it in stride.
This staff shortage has contributed to an aquatics surplus, a positive side effect, as budgeted payroll doesn’t get spent.
The Board should consider voting for a breakeven Aquatics budget under the assumption that staffing will not return to pre-covid levels. Viola and Aquatics Director Kathleen Cook could then devise a conservative staffing structure and pool schedule for each of Ocean Pines’ five pools announced in advance of the season, with longer hours added as staffing allows. Thought could be given to closing the Sports Core pool as a default schedule on warm, sunny days during the summer, to be opened for use on rainy, dreary days.
Alternatively, the Sports Core pool could be
36 Ocean Pines PROGRESS February 2023 OPINION COMMENTARY
u
So-called ‘Farr firestorm’ is so much hot air
OPA Director and Vice-president Rick Farr recently caused a kerfuffle on-line with comments about the foundation established in the name of Gavin Knupp, the Ocean Pines teenager who died tragically in a hit and run incident last summer. The reaction to his comments questioning how funds collected by the foundation are being spent was over the top, one commentary even suggesting that Farr’s comments had created a “firestorm” and reflected poorly on him and the Ocean Pines Association.
His critics accused Farr of contending that the foundation had misspent funds collected so far, on expenditures ranging from paying off debts, including an OPA lot assessment, a new car, et cetera. A careful reading of his post reveals he did no such thing.
A subsequent conversation with him clarified his thinking. His critics might have given him that same courtesy rather than jump to the very worst conclusion possible.
To be clear, neither Farr nor anyone else has any basis to conclude foundation funds have been misspent. There simply is no evidence to suggest that. No one other than those involved directly with the foundation knows how much has been collected and how much has been spent and on what. Non-profits
Budgetary fine-tuning
From Page 36
LIFE IN THE PINES
An excursion through the curious by-ways and cul-de-sacs of Worcester County’s most densely populated community
By TOM STAUSS/Publisher
are entitled to reasonable operating expenses, including salaries paid to those who manage operations.
Those who contribute have every right to know that the lion’s share of their donations go to charitable activities.
Farr is his posting on the Get Involved Facebook page did NOT accuse the foundation of misspending, and in his follow-up interview made it crystal clear that he intended only to raise questions about it. Asking questions and making accusations are two different matters. As a cash donor to the “Justice for Gavin” cause soon after the teenager’s tragic death, Farr says he’s entitled to know how funds raised in Gavin’s name are being spent. He adds that “many OPA members” and people he knows in Ocean City are asking the same question.
He told the Progress that he believes some funds collected in Gavin’s name were the result of gofundme solicitations. While he said he would prefer that these funds were placed in foundation coffers, he added that he doesn’t rea;ly care if those contributions instead went to support the Knupp family, including
made a members-only pool during those days when the outdoor pools are open for use. Access to the Sports Core pool area would be by electronic pass only. There would be no access allowed for non-members, guests, or those with cash. The no-guest policy would be on the honor system, perhaps with occasional checks by Cook or designated staff.
No attendants or guards would be on staff -- a controversial idea to be sure -- so it would be swim at your own risk. Perhaps members who use this pool could sign a liability waiver as part of the process of obtaining an electronic key to the pool.
While a public-access pool must have guards providing protection, the indoor pool at the Parke is private, member-only, without guards, and perhaps that pool could serve as a template for the Sports Core pool during in-season months. Of course, this idea would require close coordination with state health department personnel.
• The Budget and Finance Committee is recommending that the percentage of asset values allocated to the replacement reserve increase from the current range of 22-28 percent to 33-35 percent. To reach that goal,
items that he listed in Get Involved post, ranging from paying off debts to buying a new car.
Sure, he said he believes someone -- he didn’t say who -- will request an audit of foundation expenditures, but again this is well short of leveling accusations.
Farr in his Progress interview raised another issue that he hopes someone will answer. It has to do with the foundation’s tax status, citing the foundation’s Website that says it is non-profit.
No one would argue that its founders hope to operate the foundation as a non-profit enterprise, but Farr said there is no evidence that the foundation has obtained a 501(c)(3) non-profit, tax-exempt designation from the Internal Revenue Service. Apparently an application has been filed by the foundation’s attorney and very well might be secured in due course.
Until then, Farr suggests, it’s not correct to claim non-profit status.
A problem with doing so, he continued, is that donors who might have been able to deduct contributions on their taxes can’t legally do so. Another issue is collection of
Viola suggested that $1.5 million could be transferred from the operating fund surplus -- retained earnings. It didn’t seem as if he was recommending this transfer -- only that a $1.5 million transfer would be a way to accomplish the objective.
Alternatively, the Board could consider allocating half of that $1.5 million to the replacement reserve, with the other half ($750,000) returned to OPA members in the form of assessment reduction.
If the current fiscal year’s surplus -- more than $1 million after December -- turns out to be somewhere in the $1.250 million range, that additional $250,000 could also be transferred to the replacement reserve.
Returning $750,000 of their own money to members would be the equivalent of an $88 decrease in the assessment.
These robust surpluses of recent years represent members’ contribution to OPA’s unprecedented financial health, reflecting impressive support for all of OPA amenities by members. Some but certainly not all of these surpluses could be returned to those whose support of the OPA helped make it happen.
It might take a little longer to reach the 33-35 percent goal, but even at 22-28 percent the OPA’s reserves are probably better than 99 percent of all HOAs in the state. Just a guess. ~ Tom
Stauss
sales tax on merchandise sold by the foundation on-line or at tables set up at fund-raising events.
Farr said the sales tax issue is one that needs clarification and is legitimately raised.
Having said all that, he makes it very clear he is not a fan of the merchandise sales going on in Gavin’s name. Yes, he does find it distasteful, and that’s an opinion he’s entitled to have in a free country.
He links the fund-raising to an ugly aspect of the “Justice for Gavin” movement, unproven allegations that the Matt Ortt Companies have any involvement in or knowledge of events that led to Gavin’s death. Real calumny has occurred in the accusation of MOC involvement in or knowledge about the death of Gavin.
He is also hitting back at those he believes have, to one degree or another, called for a boycott of MOC restaurants in the area. He names two former OPA directors and the administrator of the ROC Facebook page as complicit in this effort.
It would be a step forward if all three unequivocally disavow any support for boycotting MOC restaurants.
In the meantime, Farr is raising questions about foundation operations, questions he says he’s not alone in wanting answers to. Let’s hope answers will be forthcoming.
The Ocean Pines Progress is a journal of news and commentary published monthly throughout the year. It is circulated in Ocean Pines and Captain’s Cove, Va.
February 2023 Ocean Pines PROGRESS 37 OPINION PUBLISHER-EDITOR Tom Stauss stausstom@gmail.com 443-359-7527 ADVERTISING SALES Frank Bottone frankbottone@gmail.com 410-430-3660 CONTRIBUTING WRITER Rota Knott 443-880-3953
127 Nottingham Lane Ocean Pines, Md 21811
CURRENTS
Marina Club roof replacement project to begin Feb. 2
Facility to remain closed at least until Feb. 24, but the indoor pool could be closed up to 90 days
By TOM STAUSS Publisher
The long-awaited Marina Club roof replacement project is scheduled to begin Feb. 2, Senior General Manager Colby Phillips announced in a Jan. 28 email blast. The building will be closed until at least Feb. 24.
Since the project requires disconnection of various utilities and HVAC equipment, Phillips said the building will not be heated during the closure.
“The presence of construction equipment and workers overhead poses safety concerns, so no [CCGYC members] and non-maintenance employees” will be allowed in the building, she said.
According to her announcement, the Marina Club receptionists will temporarily relocate to the Community Room at the Town Center. There is no change in the phone number, 757-824-3465, for member inquiries. There’s also no change in the phone number for the Security Department.
“Property Management Team members will continue to work in other offices areas [in the Town Center] or remotely as appropriate,” she said. That applies as well to the Security Department, which has offices currently in both the Marina Club and Town Center.
Phillips advised that Marina Club mailboxes will remain accessible throughout the duration of the project.
Perhaps the most significant impact of the roof project will be on users of the indoor pool.
Phillips said that the roof above the indoor pool will require work that will extend beyond the building’s expected 22-day closure period, and that means the pool will remain closed for a period of time even after the building is reopened elsewhere.
“The pool closure could be up to 90 days,” she said.
“Thank you for your patience while we have this urgent work completed,” she added.
Gillis Gilkerson of Salisbury will be the general contractor firm on the project, assisted by sub-contractors.
The not-to-exceed cost of the project is $650,000, according to the published agenda of the Jan. 23 Board of Directors meeting. The Board in a consent agenda action Jan. 4 approved a motion to authorize the property management team to execute a contract on behalf of CCGYC with Gillis Gilkerson for the replacement of the roof and renovation of ancillary equipment associated with the project,
The approved not-to-exceed cost falls within a range of $625,000 to $700,000 that Committee Chair Mark Majerus provided during a Dec. 15 meeting of his committee.
He told the Cove Currents in a Jan. 26 telephone interview that an original cost estimate of $400,000 was for the roof only, and that ancillary costs not included in the original estimate is the reason for the higher estimate.
At the committee’s Dec. 15 meeting, Majerus disclosed a recommendation on how the Board of Directors could deal with rising costs associated with the three capital improvement projects
To Page 40
38 Ocean Pines PROGRESS February 2023 CAPTAIN’S COVE
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Dredging season salvaged with boat rental Board authorizes up to
By TOM STAUSS
Publisher
The vandalized dredging equipment that could have canceled this season’s canal dredging may in the end cost too much to repair, but that isn’t stopping Captain’s Cove Golf and Yacht Club from proceeding with this year’s scheduled plan of dredging nonetheless.
The Cove’s Board of Directors voted unanimously Jan. 23 to accept a recommendation from the Operating Committee to lease a dredge boat to begin the dredging that was supposed to have started Dec. 16. Vandalism that substantially damaged the on-site dredge boat occurred Dec. 15.
The Cove is leasing a dredge boat from VMI Dredges of Cushing, Okla., at a cost of about $75,000, including transportation and a crane to lift the boat off a transport truck into the canal. That $75,000 doesn’t include labor to operate it, and it was on-site Jan. 23 in preparation for work to commence.
Dredging of the canal system between Blackbeard Road and Starboard Street, the western or southern canals adjacent to Swan Gut, is under way. These canals will be closed Monday through Friday, 6 a.m. to 6 p.m., for the duration of the project, expected to last through March 15. Dredging may also occur on Saturdays.
“Please contact Security to confirm that the canal is open or closed prior to boating this canal system on Saturday,” Cove Senior General Manager Colby Phillips said in a Jan. 26 email blast. Steel cables used during dredging will be removed when not in use, but she still advised boaters to use “extreme caution” because some equipment will remain in the water.
The project objective is to complete as much dredging as possible within a 60-day period, and according to the Board’s approved motion, assess the extent of damage to the Cove’s vandalized
Roof replacement
From Page 38 approved in the 2022-23 budget, including the roof replacement.
The other two projects are building a new mail pavilion at the Marina Club to replace the one at the Town Center on Captain’s Corridor and building a new dumpster containment shed and pad on the Marina Club campus, along with a grease holding container.
Majerus proposed and the committee voted to recommend to the Board combining all three projects in a single bid package, in the hopes that the cost of doing all three by one contractor would be less than doing each project separately.
$120,000
for
work interrupted because of vandalism
This season’s scheduled areas of dredging. this year, compared to the budgeted $80,000.
boat in the interim.
Mark Majerus, chair of the Cove’s Operating Committee, has said it’s possible that because of the boat’s advanced age and extent of damage, it may not make good fiscal sense to repair it.
That is to be determined. Evans Marine from Crisfield has pulled the dredge from the Cove’s maintenance dock. Evans has been hired to move the dredge from the CCGYC maintenance building, where it will be assessed by CCGYC staff and an insurance adjuster. and is assessing the extent of damage and the cost of repairs.
It will be up to the Board to decide whether to repair it or make plans to acquire a new dredge, at a cost estimated at $400,000 or more.
The Board motion offered by Cove President Tim Hearn specified that the cost of dredging using leased equipment should not exceed $120,00
That’s basically the approach being taken the Board, with Gillis Gilkerson the general contractor on all three.
Back in October, the Board voted to approve the firm as a construction management consultant. Duties were to include helping to obtain bids for current and future capital improvement projects and overseeing construction projects once they are under way.
At least for the three projects approved in this year’s budget, Gillis Gilkerson’s relationship with the Cove association seems to have evolved into more of a traditional general contractor role.
Majerus said that each of the projects will be costed out separate-
The vandalism of the Cove’s dredge boat is having real financial consequences.
The Board had three other options to choose from in its response to the vandalism but opted for leasing from VMI.
Canceling dredging for this year was one option. Another was waiting to see if repairs on the old boat could be done in a timely way and to see what repairs could be accomplished by March 15.
The Operating Committee also considered going to third party dredging. That would have required modifying the current permit, setting up a new spoil site somewhere in Section 14-18, and getting as much dredging done as possible for $80,000.
The cost of hiring a third party contractor and To Page 42
ly as the Board is prepared to fund them.
At the Jan. 23 Board meeting, the directors approved the dumpster containment shed, pad and grease containment holding container at a cost not to exceed $85,000. The original estimate for this project was $75,000 to $100,000.
Cove President Tim Hearn, in offering the motion to proceed with the shed and pad, said the mail pavilion project would be delayed for a period of time he didn’t specify.
The roof replacement project is quite involved. It includes removal of all the HVAC equipment, gas lines and vents from the roof, using a crane, and then putting it back. During the estimated 22-day closure
of the building, refrigeration trucks will need to be moved on site to protect inventory from spoiling.
An additional protective ventilation layer needs to be added to the substructure under the roof, to prevent the sort of moisture build-up that caused much of the roofing in the indoor pool area to deteriorate.
Adjustments will be made to protect equipment with moisture control, with 50 to 60 percent humidity the target, along with a pool temperature of 82 degrees.
The building’s roof is mostly shingle but there’s a large area not visible from the ground where equipment is mounted on a flat roof.
All areas will undergo structural repairs.
40 Ocean Pines PROGRESS February 2023 CAPTAIN’S COVE CURRENTS
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Dredging
From Page 40
dredging 4,000 cubic yards of canals at a cost of $90 per yard would have been $360,000, distributed in an additional waterfront assessment to more than 357 canal lots at a cost of about $1,000 per lot.
The dredging of 4,000 cubic yards per year is typical in Captain’s Cove, with the spoils a mixture of soil, sand and silt. Currently the Cove has only one spoil site, Treasure Island, in an area of Captain’s Cove near High Sea Drive and Starboard Street.
The Operating Committee rejected the option of a third party contractor in part because of challenges in levying a special assessment for extra dredging costs. Committee members concluded that a sudden $1,000 expense would not have been well received by canal owners who currently pay $200 in a waterfront assessment to cover annual dredging expenses. The $200 had already been approved by the Board for the 2022-23 fiscal year.
In comments before the Board’s unanimous vote approving the lease
option, Cove President Tim Hearn said the location of the vandalized dredge boat on Blackbeard Road suggests the likelihood that the vandalism occurred from within the Cove, by “someone with a bone to pick” with Cove management.
“It’s unlikely it didn’t happen from someone within the community,” he said, adding that he would advise “caution looking outside the community” for the person or persons who committed the crime.
During an Operating Committee meeting before the Board met Jan. 23, Majerus said that CCGYC is very careful in following rules and regulations pertaining to dredging. He recalled that the Cove’s original developer was charged with 29 counts of illegal dredging of wetlands at a depth of six to ten feet. The costs of dealing with these charges almost led to the developer’s bankruptcy.
Among the rules that the Cove adheres to in its annual program is a limit to dredging no more than four feet in depth at mean low tide. No dredging is permitted in state of natural gut areas, such as the one that forms one of the Cove’s boundaries. All spoils must be deposited
in specific areas and monitored, and dredging is prohibited in wetlands areas.
4 December 2022 Captain’s Cove Currents
New lawsuit filed
From Page 1
The Cove also complies with a rule that prohibits dredging within 15 feet of bulkheads.
of the canal, he said, but only if the spoil is placed on their lots. A permit is required to move dredge spoils off site.
Under amended restrictive covenants, CCGYC has the right to dredge Cove canals, but transport and storage of dredge material can only occur with a permit issued by the Army Corps of Engineers, he said.
the authority to exempt Stonewall Capital from paying assessments on 30 lots it purchased from CCG Note in Sections 1, 7 and 10 in 2019. The suit quoted Jim Silfee, a CCGYC director and investor in CCG Note, as “falsely” stating that Stonewall Capital was exempt from paying assessments.
Majerus said the prohibition against dredging on wetlands “is a challenge,” because a sandbar in a canal that develops vegetation is defined as a wetland.
“Despite being in a canal, we cannot remove” the sandbar,” he said. “We can dredge up to the edge, but must be careful. If the soil containing vegetation dumps into the water, we face potential fines.”
Hearn acknowledged that the declarant/developer can’t delegate the dues exemption it enjoys to a buyer of lots in multuple sections of Captain’s Cove, and could only do so if a buyer purchases an entire section.
In a Dec. 22 interview, Majerus described the extent of the damage that was visible after the vandalism was discovered.
But he said the plaintiffs seem to be unaware that CCGYC is billing Stonewall Capital for the annual dues of the 30 building lots it owns.
“They’re not exempt,” Hearn said.
The 15-foot-from-the-bulkhead rule protects the integrity of the bulkhead, he said, “particularly from blow-out of the bottom side.”
Majerus said because water is clear this time of year, it’s been possible to look below the water line to see that the boat’s cutter head “is not aligned as it should be,” perhaps off kilter by about 30 degrees.
Indeed, the Cove Currents has been informed that Stonewall Capital appears on an accounts receivable list of property owners who are delinquent in paying annual dues to the CCGYC.
It also prevents damage to any boat lift, he added.
Majerus rebutted what he said was a common misconception, that Cove canals are private and not subject to U.S. Army Corps of Engineers permitting. He described Cove canals as a series of contiguous private half-canals.
The plaintiffs allege that CCGYC does not have the authority “to charge assessment-paying members the cost of constructing a bulkhead along Starboard Street, a cost that should be paid by CCG Note.” According to the suit, the association is proposing to install a bulkhead along the edge of Starboard Street abutting CCG Note lots at the expense of the Cove association.”
Without a permit, owners may remove silt and sand from their half
He suggested that this kind of damage doesn’t typically happen, and that therefore the conclusion is that it was a deliberate act of vandalism.
Hearn said no such charge and that “bulkheads on the gut required for any of the hundreds waterfront. In addition, there the Army Corps of Engineers such a bulkheading activity into He said that stormwater, erosion control permits have been obtained from Accomack County in ing Seaview Street at some But CCGYC is still awaiting U.S. Army Corps of Engineers, whether and when that might There is no governing document Cove that obligates the declarant/developer complete road construction in 13 in the community, and it’s 2002 that CCGYC is responsible provements according to an Declaration in that year.
During the evening of Dec. 15, he said, someone untied the dredge from the bulkhead at the end of Blackbeard Road. One line was removed and the other untied from
The suit repeats a complex earlier suit, alleging that CCG in violation of restrictive covenants Captain’s Cove numbered lots to the former Captain’s pany operated by Hearn, which to Aqua Virginia.The lots, consisting acres, were set aside for possible rapid infiltration basins (RIBs)
The CCGYC deed restrictions
42 Ocean Pines PROGRESS February 2023 CAPTAIN’S COVE CURRENTS
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February 2023 Ocean Pines PROGRESS 43 CAPTAIN’S COVE CURRENTS
CCGYC lawyer calls BIC lawsuit ‘a mash-up of vague allegations’
Response says Cove Declaration already prohibits that which plaintiff seeks to enjoin
By TOM STAUSS Publisher
The response by Captain’s Cove Golf and Yacht Club to the amended complaint recent filed by a prominent local contractor, BIC Construction, is short and to the point. And it’s literally just a little more than two pages of actual argument, along with a cover sheet.
The BIC lawsuit involves a dispute over the Cove association’s 35foot height limit. BIC is asking the Accomack County Circuit Court to enjoin CCGYC from enforcing its 35-foot height because of alleged inconsistencies in enforcement over the years.
The suit contends that:
• From 1998 to 2021, the ECC consistently approved homes taller than 35 feet from ground level.
• Prior to 2021, ECC approvals took two weeks or less. Beginning in 2021, approvals of BIC applications if they occurred at all took two months or longer.
• According to an engineering survey arranged for by BIC, there are 12 homes in Captain’s Cove that range in height from 37 to 44 feet.
Steven Letourneau, of the Inman and Strickler law firm of Virginia Beach, said in a response dated Jan. 19 that the CCGYC acts that BIC seeks to enjoin are “already prohibited ... by virtue of its own Declaration.
“If there are specific acts by CCGYC, through the ECC [Environmental Control Committee], on a specific construction project or a specific application, that are in violation of the Declaration, then
injunctive relief might be appropriate,” the lawyer said. “But to seek to enjoin, in general, CCGYC from violating its own Declaration is simply asking the court to tell CCGYC not to break its own rules which, again, CCGYC has no authority to do, is improper.”
According to Letourneau, BIC has not alleged BIC will suffer irrevocable harm or does not have an adequate remedy at law.
“It is hornbook law [law by long-established principles] that an injunction can only be granted” if neither of those conditions apply, he said.
He contended that the amended complaint filed by BIC attorney Douglas Kahle of Chesapeake Va. “is a mashup of various vague allegations that CCGYC through the ECC is violating the Declaration by exceeding its ‘authority granted by the Declaration,’ is arbitrary and capricious, and inconsistent with a consistent course of conduct dating back 18 years.”
Failing to come up with an a specific act or acts by CCGYC that are arbitrary or violate the Declaration, Letourneau said an action for breach of contract might be the better approach for the plaintiff.
“The amended complaint merely recites a laundry list of general action CCGYC which it claims to be aggrieved by, and then seeks a vague, unenforceable order from the court enjoining CCGYC from violating its Declaration provisions.”
The layer then requests the court to dismiss the BIC complaint with prejudice, grant CCGYC its attorney’s fees and costs and grant “further relief that the Court finds appropriate.”
The amended BIC suit is similar to an earlier version but makes it
Dredging
From Page 42
both ends and thrown back on top of the dredge.
“Had this been a case of poor knots, the lines would have been attached to one end,” he said.
Had it been “winds that snapped the line, it would still have been
more explicit that the builder wants the court to enjoin the Cove association from enforcing its 35-foot height limit through the Environmental Control Committee.
CCGYC and BIC have been engaged in a battle over a home under construction on Blackbeard Road that the ECC contends exceeds the height shown in the application. BIC argues that the plans clearly indicated a height greater than 35 feet, and that the association improperly pulled its prior approval of the application.
The ECC approved original plans for the home in November of 2021. Partway through the construction process, BIC applied for a variance for additional building height. That variance was denied by the ECC BIC proceeded to build to the new, non-permitted height.
A stop work order was issued based on failure to build to the permitted plan. BIC contends that the variance should have been permitted.
BIC contends there is another home on Blackbeard Road that exceeds 35 feet in height.
The county after the ECC withdrew its approval issued a stop work order on the project, but CCGYC President Tim Hearn said the work has continued despite the stop work order.
CCGYC hired Vista Engineering in 2021 to assist the ECC in reviewing applications for new homes in Captain’s Cove, and soon after the ECC began requiring builders to submit detailed engineering specs with each application.
Most builders active in Captain’s Cove were already complying, but BIC traditionally had submitted plans that were drawn by hand and sometimes not to scale, according to Hearn.
At a recent Cove Board meeting, BIC owner Raymond “Junior” Britton contended that the new requirements adds about $5,000 to the cost of a home, arguing there is no authority in the Declarations to impose it.
attached to the cleat on the dredge and to the pilings. The dredge floated and bounced its way down the canal, damaging the cutting head, he said.
He added that the cutting head received “unknown damage to the point that it is not operational and we will need to pull the entire vessel for further assessment.”
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February 2023 Ocean Pines PROGRESS 45 CAPTAIN’S COVE CURRENTS
Phillips announces monthly health Q&As Committee nixes
By TOM STAUSS Publisher
During the Jan. 23 Operating Committee meeting, Senior General Manager Colby Phillips announced that representatives of the Eastern Shore Rural Health System based in Onancock will be hosting question and answer sessions focusing on the health needs of Captain’s Cove residents.
She said the longer range plan is to for the system to open a clinic in and around Captain’s Cove.
Details of the question-answer sessions will be
official recognition of Humanitarian Projects Club
announced shortly.
Also during the Operating Committee meting, a club requesting official recognition by Captain’s Golf and Yacht Club and associated funding failed to garner majority support of the Operating Committee during its Jan. 23 meeting.
The Humanitarian Projects Club’s proposed inclusion among the Cove’s official committees lost on a 2-5 vote. As a consequence it was not forwarded to the Board of Directors for its meeting later that day.
One member of the committee during discussion said that while not opposed to the committee
“we [CCGYC] can’t take on the world” and said he opposed CCGYC financial support for it.
Member Pat Pelino, the CCGYC secretary and one of four Cove directors who are members of the Operating Committee, said she favored official recognition and funding in the range of $500 to $1000.
Committee members in general said they were fully supportive of the committee’s mission but concluded that it was not an organization focused on Captain’s Cove. Guidelines require official Cove committee’s to operate for the benefit of the management or the members of CCGYC.
The mission statement for the club said it provides basic life-supporting items to individual and families in need in the area. These items include clothing, blankets, hats and scarves and personal hygiene items.
Donated items are re-purposed for use by individuals and families in need.
The committee’s primary area of focus is the Eastern Shore of Virginia, but some items are sent outside that area.
Over the last six years, the group created over 20,000 items, including 750 cloth face masks during the covid pandemic.
Operating Committee Chair Mark Majerus updated his colleagues on pending legal matters.
He said the forensic audit of Troon Golf financials for the first six months of CCGYC’s 202122 fiscal year will continue for another “several weeks,” and until then the lawsuit filed against Troon is on hold.
He said the suit filed against CCGYC and CCG Note by Teresa Birckhead and others pertaining to the Mariner/Hastings townhome project will be the subject of a Feb. 17 hearing in Accomack County Circuit Court.
CCGYC has filed a response to the lawsuit filed against it by local contractor BIC asking the Court to enjoin enforcement of the community’s 35-foot height limit. It’s been posted on the Cove Website. [See article elsewhere in this edition of the Cove Currents for details.]
Majerus said he’s been told that there will be additional lawsuits filed against CCGYC by individuals for various perceived injustices.
General Manager Justin Wilder said that a date on a new tranche of foreclosure auctions for properties in arrears on their annual dues will be announced shortly. He also reported on rehabilitation projects on homes on Neptune Drive and High Seas Road that CCGYC acquired in previous auctions.
The Neptune Drive home will be leased out once repairs are completed, while the High Seas home will be put on the market for sale.
Also during the meeting, Majerus referred to a 25-year-old Captain’s Cove publication in which issues of concern to the community were itemized by then CCGYC President Dave Landsberger in a column.
Items listed included conflicts between the
To Page 48
46 Ocean Pines PROGRESS February 2023 CAPTAIN’S COVE CURRENTS
Another Captain’s Cove lift-0ff, photo by Tim Keefer
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February 2023 Ocean Pines PROGRESS 47 CAPTAIN’S COVE CURRENTS
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Board approves Felt as alternate member
By TOM STAUSS Publisxher
Retired attorney Dave Felt has been appointed the alternate member of the Board of Directors in a 7-0 vote of the Board in its meeting Jan. 23. He had been recommended unanimously for the positions by the Operating Committee at its meeting earlier in the day.
Felt held several high level positions with the federal government and also has been a Board member and officer of several homeowner associations.
Felt replaces George Finlayson, who was elevated to full Board member on the recent resignation of Roger Holland. Finlayson had been elected alternate in the 2022 election.
Also during the Jan. 23 meeting, the Board approved a motion to affirm the existing funding approval policy which authorizes Senior General Manager Colby Phillips to approve non-budgeted items to a $5,000 level; the combination of Phillips and the Cove Treasurer to a $15,000 level; and the combination of the senior GM, Treasurer and Cove president to the $50,000 level. Unbudgeted amounts in excess of $50,000 require board approval.
Also approved, on the recommendation of the Operating Committee, to execute an exclusive listing agreement for the sale of CCGYC- owned 3396 High Sea Drive with Rob Smith of Monument Realty/Sotheby’s.
Consent agenda items, those approved by the Board via email after the previous Board meeting, included:
• a motion to establish a cost schedule for providing books and records to CCGYC members in good standing. The rates are five cents per page printed/copied, with an additional fee of $20 per 15-minute period. A deposit payment is to be made upfront, with the final amount being due upon delivery of the paper copies.
• a motion to approve prior adopted rules, including the Short-term Rental addendum.
Consent items recommended by the Operating Committee included:
• a motion to accept the Arts and Craft League Committee application for committee status, with Debbie Byars named as the chairperson.
• a motion to accept the Community Emergency Response Team (CERT) Committee application for committee status, with Carol Evans-Muller named as the chairperson.
• a motion to accept the Potluck Committee application for committee status, with Bernadette Palaski named as the chairperson.
• a motion to initiate legal proceedings against the Richards, owners of Lot 1295/Section 3, on grounds that the existing construction is not in compliance with an approved Environmental Control Committee plan.
• a motion to accept a request to swap Section 13 Lot 58 for CCGYCowned lot Section 5 Lot 0036.
• a motion to accept an addendum to rules relating to flags.
The new rules says that “all flagpoles that are mounted in the ground require an approved ECC permit. Flags attached to a house or railing, the typical 4 to 6 foot pole mount, do not require an ECC permit. The following
Health Q and As
From Page 46
now defunct Captain’s Cove Civic Association and the CCGYC Board of Directors. The Concerned Citizens of Captain’s Cove can be considered a successor to the Civic Association.
Other items included the status of the community campground, since dismantled and turned into Cove Commons), the lack of cable television, still a concern but now embracing tje slow roll-out of high speed Internet, and the number of homes built in Captain’s Cove, 300
at the time but now over 1,000. Issues over dredging were also highlighted, still an issue in Captain’s Cove.
“Nearly 25 years later, some of the challenges [remain] and some aren’t even a memory,” he said, but his point was that as much change as there’s been in that 25 years, some of the underlying currents haven’t changed all that much.
The Operating Committee also considered a number of recommendations that were approved in 7-0 votes and forwarded to the Board of Directors for action later that day.
flags are permitted: United States Flag (current or historic), any current US State or territory flag, any current County or other local government flag, the Captains Cove Golf and Yacht Club flag, any US Service branch flag, the Gold Star family flag, the MIA/POW flag, any IRS recognized non-profit 501(c)(3) organization flag, any US college/university flag , any US national team sports flag, and any seasonal flag.
Other flags may be permitted upon approval by the Environmental Control Committee, with no fee application required.
According to the published agenda for the Jan. 23 meeting, the Board also approved a consent agenda motion on Jan. 4 to authorized the property management team to execute a contract with Gillis Gilkerson of Salisbury for the replacement of the Marina Club roof and ancillary equipment [See separate article in this edition for details.]
During the Jan. 23 meeting, the Board:
• approved a motion to authorize the property management team to execute a contract with Gillis Gilkerson for the construction of a dumpster pad and enclosure at the Marina Club site, at a cost not to exceed $85,000. [See separate article in this edition for details.]
• held hearings but took no action on four member complaint hearings. Individuals filing complaints included Jim Hayes, with respect to an incident involving Director of Operations John Costello and his wife; members Barrett Magrogan, Patricia Borrelli, Lorraine Ballentine, Becky Shinski and Kathy McNally, regarding conduct of the 2022 Board election; Hayes regarding CCGYC governing documents; and McNally regarding Cove fees.
Details of the complaints can be gleaned from a recording of the meeting available on the Cove Website.
Cove President Tim Hearn said action on the complaints will be taken at the next Board meeting or perhaps in consent agenda action before the next Board meeting.
Hearn expresses concerns about pending county, state legislation
By TOM STAUSS Publisher
Captain’s Cove Golf and Yacht Club President Tim Hearn expressed concerns about pending county and state legislation in remarks during the Jan. 23 Board of Directors meeting.
One area of concern would be a proposed amendment to Section 78-6 of the Accomack County Code relating to private/public roads. Hearn didn’t provide any detail about what is problematic, but it could have something to do with an assertion he made some months ago about ownership of Captain’s Corridor adjacent to the site of a controversial townhome development.
The roadway in question, Hearn said, was never conveyed to the CCGYC, and ownership remains with the Hastings/Mariner family.
Hearn said that the CCGYC’s attorney, Pender and Coward, will be monitoring the progress of this legislation preserving CCGYC’s interests relating to private/public roads.
He also expressed concern about legislation introduced in the Virginia Senate by State Senator Lynwood Lewis, whose legislative district includes Accomack County.
Hearn said the legislation pertains to short-term rentals, easing rules pertaining to the number of cars parked and people residing in a short-term rental if a home is managed by a licensed Realtor.
He called on Cove residents who want to keep short-term rentals in Captain’s Cove under strict control to avoid nuisances to contact Lewis and register their opposition to his proposed legislation.
48 Ocean Pines PROGRESS February 2023 CAPTAIN’S COVE CURRENTS
February 2023 Ocean Pines PROGRESS 49 CAPTAIN’S COVE CURRENTS
Hearn takes aim at workplace harassment
Rebut s those who say they can do anything they want’ to CCGYC employees
By TOM STAUSS Publisher
Captain’s Cove Golf and Yacht Club President Tim Hearn has a message to association members who say they “can do anything they want” to Cove employees and “there’s nothing that can be done to prevent that.”
Not so, Hearn says.
As recent suspensions of access to Cove facilities by the Property Management Team attests, there is recourse.
In remarks delivered during the Jan. 23 Board of Directors meeting, Hearn said that CCGYC must comply with Virginia and federal law regarding workplace harassments.
Penalties for ignoring these laws can be stiff.
Hearn said that members who think that their status as payers of annual dues “gives them authority to do carte blanche” to employees, that’s
just wrong.”
He said that a recent incident where a Member referred to an employee as a “f*ing scumbag” needs to stop, and that members who see their neighbors acting in such a way should try and walk them back off the ledge.”
CCGYC Director and Operating Committee Chairman Mark Majerus offered his perspective on the topic during a committee meeting earlier on Jan. 23.
He said that Cove “employees do not report to Club members or patrons and should not be harassed accordingly.
This management structure is similar to the way many towns operate – a town council as the top level, the elected authority and then a town manager and various departments and staff that operate aspects of the town.”
He said that those with issues may file a sug-
gestion or complaint with the appropriate manager.
“But managers are not required to explain their daily work product to members or patrons. Under Virginia Property Owners Association Act (VAPOAA) ... there is a limited amount of information that is required to be shared with members of a property owners association: open BOD meetings with certain topics protected and certain financial records can be made available for review.”
In remarks delivered during the Operating Committee meeting, Senior General Manager Colby Phillips said that members with concerns should “reach out directly to a member of the Property Management Team rather than relying mainly on social media. Misinformation and rumors create unnecessary stress and fear in otherwise positive changes,” she said.
CCG Note responds to Birckhead lawsuit
Arguments overlap those made by co-defendants CCGYC
By TOM STAUSS Publisher
Attorneys for CCG Note, the Captain’s Cove declarant and developer, on Dec. 23 filed a response to the lawsuit by Theresa Birckhead and six other Captain’s Cove residents challenging road access to the proposed Hastings/Mariner Townhome project in addition to complaints against other past and future actions of the CCGYC Board of Directors.
The response was made available to the Cove Currents on Jan. 3. It includes two pleadings, a demurrer and plea in bar and, separately, a motion “craving oyer.”
The latter is essentially a demand that the plaintiffs produce certain documents, including a deed or other instrument proving ownership of Captain’s Corridor, critical to their case, omissions of which CCG Note contends effectively undermine it or defeat it altogether.
The “craving oyer” motion also pertains to documents pertaining to a dispute over future rapid filtration basins (RIBs).
Issues in the suit include a contention that CCGYC owns the entire length of Captain’s Corridor, including a section that runs adjacent to the proposed townhome project; whether CCG Note has failed to pay $50,000 per year to CCGYC pursuant to the 2012 settlement agreement, whether the CCGYC Board of Directors is controlled by CCG Note, and a complicated wrangle over the conveyance of land for future RIBs.
CCG Note disputes the plaintiffs’ assertion that CCGYC owns the entire length of Captain’s Corridor.
Tim Hearn, CCGYC president who has business dealings with investors in CCG Note, has said that the section of Captain’s Corridor adjacent to the proposed townhome project is owned by the Hastings/ Mariner families, never having been conveyed to CCGYC.
In its demurrer response, filed by Pender and Coward attorney Mark Baumgartner, CCG Note contends that plaintiff’s lack standing to sue because they fail to allege any violation of an individual right or rights held by any of the named plaintiffs.
Plaintiffs failed to produce sufficient facts that the subject portion of Captain’s Corridor is subject to a Declaration making Captain’s Corridor a private street for its entire length, according to Baumgartner.
In the separate “craving oyer” motion, Baumgartner is demanding that the plaintiff produce documents proving ownership.
He rebuts the plaintiffs’ allegations that the Cove Board of Directors, under “the control of CCG Note, allowed CCG Note to pay less than $50,000 per year on a contractual obligation” related to the completion of road construction in Sections 1 through 13 pursuant to the 2012 settlement agreement.
Instead, interest only payments of less than $10,000 per year have been paid to CCGYC by CCG Note.
“With respect to Plaintiffs’ claims regarding the alleged obligation of CCG Note to pay $50,000 per year to the Association pursuant to the 2012 Settlement Agreement, the Builder’s Assessments, and the Sewer System, Plaintiffs’ request for declaratory judgment is inappropriate, because the alleged harm has already been done,” Baumgartner argues.
In addition, he contends that plaintiff’s requests “for declaratory and/ or injunctive relief relating to the alleged obligation of CCG Note to pay $50,000 per year to the Association ... must be dismissed, in part, to the extent the collection of any alleged debt is barred by the statute of limitations and/or by laches.
CCGYC made the same argument in its filing.
The doctrine of laches suggests a lack of diligence and activity in making a legal claim, or moving forward with legal enforcement of a right.
The attorney also disputes the argument that the CCGYC is controlled by the CCG Note.
“They are legally distinct entities and there are no facts alleged that can make CCG Note legally obligated or responsible for acts of the Association. CCG Note is not an officer or member of the Association’s Board of Directors and does not owe plaintiffs a fiduciary duty,” he wrote. “Mere commonality among owners/investors of CCG Note and members of the Association’s Board of Directors does not constitute control.”
He adds that the plaintiffs do not have the ability to bring such a claim even against the officers and directors, themselves.
“Corporate shareholders cannot bring individual, direct suits against officers or directors for breach of fiduciary duty, but instead shareholders must seek their remedy derivatively on behalf of the corporation,” he writes.
50 Ocean Pines PROGRESS February 2023 CAPTAIN’S COVE CURRENTS
January 28th - Oyster Roast
February 20th - Family Bingo
March 18th - Irish Open Golf Tournament
March 25th - Petals, Parents, Prince & Princesses Dance
April 1st - Easter Egg Hunt & Family Fun Day
April 4th - Family Bingo
May 6th - Kids Craft Day
May 6th - Golf Cart Inspection
May 22nd - Flags for Heroes Start Date
May 27th - USCG Auxiliary Boat Inspection
May 27th - Golf Cart Inspection
May 28th - Cove Family Community Party/Veteran Ceremony
May 29th - Memorial Day Golf Tournament
June 3rd - Flounder Tournament
June 10th - Golf Cart Inspection
June 24th - Summer Community Yard Sale
June 26th - Family Fun Nights every Monday at the MC Pool through August
July 1st - Independance Day Scramble
July 2nd - Independance Day Community Party
July 22nd - Eclectric Golf Tournament
July 26th - Junior Lifeguard
August 5th - Princess Tea Party
August 9th - Junior Lifeguard
August 12th - STEM Crab Pick
August 26th - Fling Golf Family Tournament
September 3rd - Labor Day Community Party
September 4th - Patriot's Day Golf
September 23rd - Fall Community Yard Sale
October 28th - Fall Festival
November 4th - Holiday Shop & Dine
November 11th - Annual Meeting/Veteran's Honor
November 19th - Turkey Trot Walk & Run
December 2nd - Golf Cart Parade & Tree Lighting
December 8th - Cove Community Gingerbread Houses Due for voting
December 9th - Light up the Cove pictures for vote
December - Pictures with Santa
Dates are subject to change pending weather or unexpected circumstances.
February 2023 Ocean Pines PROGRESS 51 CAPTAIN’S COVE
CURRENTS
52 Ocean Pines PROGRESS February 2023