Ocean Pines Progress

January 2019

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During a 2019-20 budget review meeting, members of the Budget and Finance Advisory Committee tried to get General Manager John Bailey to provide a detailed explanation on precisely how the Mart Ortt Companies’ contract to manage the Yacht and Beach clubs will deliver bonuses this year.

Director of Finance Steve Phillips came up with some information in the form of a sample calculation during a Jan. 9 meeting that seemed to confirm that Ortt will be receiving a substantial bonus for exceeding an “adjusted” budget at the Yacht Club for 2018-19, even as that amenity is expected to lose roughly $100,000. ~ Page 6

THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY

COVER STORY

Bailey draft budget keeps assessments at $951 while projecting $3.9 million in ‘total capital spending’

Bailey unveils plan for $905,000 in drainage upgrades

General manager proposes waterfront differential holiday for owners of bulkheading maintained by OPA

By TOM STAUSS Publisher cean Pines Association members aren’t facing an assessment increase in the draft 2019-20 budget released in early January by General Manager John Bailey, but most who elect to purchase amenity memberships will be paying more for the privilege.

The assessment is subject to adjustment by the Board of Directors, which could decide to lower or increase it before the budget for the year beginning May 1 is approved next month.

Waterfront property owners whose bulkheads are maintained by the OPA could be receiving a one-year holiday in paying the $465 differential over the base annul assessment of $951. That one-year holiday has the support of the influential Budget and Finance Advisory Committee, which held three days of budget review meetings Jan. 7, 8 and 9. For the second consecutive year,

O

Bailey is also proposing to waive the $19 per lot previously assessed every lot in Ocean Pines for common area bulkheading within the Ocean Pines golf course canal system and waterfront parks in Ocean Pines.

The waterfront differential holiday is made possible because the OPA’s bulkhead and waterways John Bailey reserve has ballooned in recent years with relatively little bulkhead replacement accomplished relative to prior years. The community’s bulkhead replacement program is being revived, but with large surpluses having accumulated in recent years, there seems to be more than sufficient funds available in the reserve to pay for replacement that To Page 4

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Ortt Companies seen as likely to receive Yacht Club bonus

General Manager John Bailey and Public Works Director Eddie Wells unveiled the outline of a $915,000 drainage plan as part of Bailey’s draft 2019-20 budget and discussed its details during budget review meetings hosted by the Budget and Finance Advisory Committee Jan. 7 through Jan. 9. ~ Page 11

Board votes in favor of pursuing NorthStar software solution Having exhaustedly investigated both in-house and outsourcing options for an information technology system to replace the antiquated systems in use by the Ocean Pines Association, the Board of Directors has finally voted to move forward with a long-debated proposal from NorthStar Technologies for a new financial software package. Negotiations to finalize a contract with NorthStar are under way. ~ Page 15

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4 Ocean Pines PROGRESS

COVER STORY

January 2019

Draft 2019-20 OPA budget contains no assessment increase From Page 1

Source: Draft 2019-20 Ocean Pines Association budget

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can be reasonably be accomplished in the coming year.

Bailey’s draft budget called for $12.47 million in departmental operations, only $232,175 more than what’s projected for the current fiscal year in the latest forecast.

With projected capital spending of $3.9 million ($2.7 million in replacement projects and $1.2 million in roads and drainage) and another $100,000 in transfers to operating funds, Bailey’s initial budget drafted called for $16.49 million in total spending. That’s roughly $2.1 million more than the current year’s budget and about $1.9 million more than called for in the latest forecast for the current fiscal year.

On the recommendation of the budget and finance committee, Bailey is adding another $200,000 to his original capital budget for a room addition at the Sports Core indoor pool, to be financed from either internal borrowing or a bank loan if approved by the board.

The room, to be attached to the southside of the enclosd pool, would be used for parties, an after-school program, training and other uses.

The loan would be serviced by an estimated $30,000 per year in net earnings from fees, a business rationale offered by Aquatics Manager Colby Phillips that won over members of the B&F committee.

Big ticket capital items in Bailey’s proposed budget include $1.6 million for a possible renovation of the second floor of the Country Country and other exterior and roof improvements to the aging amenity.

The board of directors is also considering the possibility of razing the existing building and replacing it with a new golf, smaller golf clubhouse.

Bailey is proposing to spend $915,000 for drainage projects, up

from the current year’s $117,000.

[See separate story elsewhere in this edition of the Progress for details.]

If Bailey’s draft budget is approved as initially presented by him, amenity users will be paying on average three percent more for annual memberships, according to Bailey, but that’s an almost meaningless number, as every amenity is treated differently in percentage terms. Amenities rates are the same for property owners and yearround renters in Ocean Pines, with so-called associate memberships for non-resident, non-property owners paying more.

For instance, Bailey is not proposing to increase boat slip rental fees at all, as those fees were increased last year. Marina Harbormaster Ron Fisher told the committee that there are 35 applications for slips on file, which could at least in theory lead the board to decide to increase these fees if other amenities are increased.

Bailey is of the opinion that raising slip rates two years in a row might not be well received by boaters.

Golfers, on the other hand, would be paying substantially more in percentage terms for annual memberships than they did this year. Bailey’s draft budget restores fees that were in place in the 2014-15 through 2016-17 fiscal years, The fees were lowered in 2017-18 and were not adjusted this year.

Family membership rates for golf would rise from $2,000 to $2,300, a 15 percent increase. Individual memberships would increase from $1,200 to $1,315, 9.58 percent higher year-over-year. The family after 12 noon rate would increase from $1200 to $1315, 13.75 percent higher, and the individual after 12 noon rate would increase from $800 to $875, a hike of $9.37 percent.

Bailey’s draft budget did not

PROPOSED ASSESSMENT RATES 2019-20 January 2019

LOT TYPE # OF LOTS RATE

NON-WATER 6,714 $951 NON-WATER/ESTATE

77 $1,426 WATER 1,361 $951 WATER/ESTATE

6 $1,426 WATER/NON-BULKHEAD 288 $951 WATER/NON-BULKHEAD//ESTATE 1 $1,426 COMMERCIAL 5 TOTAL 8,452 Source: Draft 2019-20 Ocean Pines Association budget

COVER STORY slightly more than three percent higher, year-over year.

For individuals, the summer membership would increase from $190 to $195, winter membership from $290 to $300, and yearly from $370 to $385, with increases of 2.5, 3 and 3.9 percent, respectively.

The one aquatics rate that is proposed for a much higher percentage increase is the so-called Realtor package rate. The six-week option would increase from $600 to $1050, while the 12-week option would increase from $1,000 to $1,800.

Phillips told the B&F committee that the increase was in response to complaints from property owners

PROPOSED USER FEES 2019-20

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change one golf membership category, the one that offers 30 18-hole rounds or 60 nine-hole rounds for $1,290. It was $1,440 during the 2015 through 2017 fiscal years, but lowered with the other rates in 2017-18. It would remains at $1,290.

The Golf Advisory Committee initially objected to the higher rates and may continue to do so as the board begins its budget deliberations the week of Jan. 13.

Aquatics memberships would be adjusted only modestly for families and individuals. For families, the summer membership would increase from $315 to $325, winter membership from $445 to $460, and yearly from $580 to $660. That’s

January 2019 Ocean Pines PROGRESS

PROPOSED MEMBERSHIP RATES 2019-20 January 2019

Source: Draft 2019-20 Ocean Pines Association budget

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Draft 2019-20 budget From Page 5

COVERY STORY

January 2019

who buy the $150 weekly rate for swimming, which is unchanged in Bailey’s draft budget.

She told the committee that property owners who buy the $150 weekly membership for tenants felt that in comparison Realtors who buy the six- and 12-week packages have received a much more attractive rate on a weekly basis.

So the response was to bring the two categories more in line with one another, she said.

Racket sport memberships would also increase modestly this summer, in percentage and dollar terms.

Tennis family rates would increase from $425 to $435 (2.4 percent), individual rates from $260 to $270 (4.3 percent), families after 12 from $160 to $165 (3.1 percent), and individuals after 12 from $100 to $105 (5 percent).

Platform tennis rates would increase from $250 to $260 for families (5 percent) and from $150 to $155 for individual (3.3 percent).

Pickleball individual and family rates would increase the same as platform tennis.

Bailey and Phillips decided not to increase the racket sport combo rate, which is currently set at $625 for families and $400 for individuals.

In other draft budget highlights, Bailey • proposes to allocate $100,000 for previous year deficit recovery in 2019-20, followed by $250,000, $325,000 and $325,000 in the subsequent three years.

According to Bailey, a previous $1.6 million deficit was reduced to $1 million in the current fiscal year.

• reallocates $225,000 used for a forensic audit and $500,000 in deficit recovery contributions in the current year’s budget as a downpayment on new funding, including $120,000 for deferred maintenance from sources other than reserves, $178,000 for drainage, $275,000 for a two percent increase in labor costs and a 10 percent increase in benefits, and $152,000 in other budgetary adjustments.

• proposes $305,000 in replacement reserve funding for deferred maintenance and $620,000 from the roads for drainage.

• does not fund road depreciation through an increase in the lot assessment.

• increases the contribution from assessments to the replacement re-

PROPOSED RESERVE FUND ACTIVITY, 2019-20

Source: Draft 2019-20 Ocean Pines Association budget

serve from the current $1.677 million to $1.773 million, based on a higher calculation for funded depreciation.

• proposes spending $580,000 in road resurfacing and $620,000 in drainage pipes under roads, from the roads reserve.

• funds only one new capital project from the lot assessment, $65,000 for police department software.

• produces a reserve summary with a projected May 1, 2019, reserve balance of $7 million and an end-of-year balance of $4.2 million, reflecting $2.28 million in new contributions and $5.5 million in expenditures.

• proposes reserve expenditures include $2.7 million from the replacement reserve, $1.6 million from the bulkheads and waterways

reserve, and $1.2 from the roads reserve for roads and drainage.

Bailey unveiled his proposed budget with changes that arose during the budget and finance committee review in a Dec. 12 town hall meeting.

The board of directors will conduct three budget meetings from Jan. 14-16, with the expectation a budget will be approved next month.

BUDGET BRIEFS B&F Committee questions Ortt bonuses

During a 2019-20 budget review meeting Jan. 7, members of the Budget and Finance Advisory Committee tried to get General Manager John Bailey to provide a detailed explanation on precisely how the Mart Ortt Companies’ contract to manage the Yacht and Beach clubs will deliver bonuses this year.

Interpretations of the contract ranged all over the map during the meeting, with member John O’Connor at one point hypothesizing that, for purposes of calculating bonuses, about $147,000 in utility and other expenses might be excluded, thereby boosting the chances that the management company will receive sizable bonuses in the fiscal year that ends April 30 of this year.

Bailey struggled to answer O’Connor’s and other member’s questions about what, if any, exclusions enter into the bonus calculation. Bailey promised to deliver a definitive response in writing later in the budget review process.

Director of Finance Steve Phillips came up with some information in the form of a sample calculation during a Jan. 9 meeting that seemed to confirm that Ortt will be receiving a substantial budget bonus for exceeding an “adjusted” budget at the Yacht Club for 2018-19.

Indeed, while it seems the Yacht Club is on a path to lose about $100,000 this year, the “adjusted” budget could enable the Ortt Companies to receive a $50,000 budget bonus, the maximum allowed under the contract, even as the OPA shows an operating loss.

The Yacht Club’s budgeted loss for this year is roughly $100,000.

If the sample calculation produced by Phillips holds true, then the OPA could lose up to $150,000 at the Yacht Club this year while paying out a budget bonus.

The explanation that seemed to gain some currency during the meeting is that, if a particular expense appears in the budget for this year and the second year of the contract, that expense number won’t be excluded from the bonus calculation. But if an expense item exceeds that which appears in the budget, through no fault of the contractor, then the Ortt Companies won’t be penalized for that.

That interpretation of the contract, which seems to be one supported by Bailey and Phillips, would allow, for instance, excess utility or insurance costs or other budgetary overages to be excluded from the “adjusted” budget used for purposes of a bonus calculation.

Ortt Companies are entitled to receive bonuses of up to 50 percent of net earnings that exceed budget in both amenities individually, not to exceed $50,000 at each location. Performance bonuses kick in when combined earnings at the two amenities exceed $100,000, on a sliding scale.

Bailey’s draft budget calls for two percent average payroll increase

While as in prior years budgeted salary increases don’t mean automatic raises for OPA employees, the draft budget prepared by Bailey includes two percent increases in the employee salary lines throughout the organization’s departments.

Assuming the two percent increase is approved by the board later in the budget review process, which is hardly guaranteed, then some employees could receive bonuses in excess of two percent while others receive less or no raise at all.

q

6 Ocean Pines PROGRESS

January 2019 Ocean Pines PROGRESS

BUDGET BRIEFS Police chief appeals for more space

During a Jan. 8 budget review meeting, Chief of Police Dave Massey delivered an emotional appeal for action from the OPA to provide his department with additional space. He’s been waiting patiently for the promised expansion, but the Board of Directors in recent years has been preoccupied with attempting to renovate the second floor of the Country Club, so far without much to show for the effort. Under an scenario developed by a previous board, police department expansion was to take place once the renovation of the Country Club was completed.

Massey emotionally argued that the OPA’s priorities might be misplaced, because his department is working in a space provided to it in the 1980s when it operated with six officers. The department has tripled in size since then, more or less, and it’s generally acknowledged that there are safety concerns because of cramped conditions.

Massey also said that the OPPD is dead last in the county when it comes to starting salaries for police officers, and that several departments in the county have moved into new, spacious headquarters built to modern specifications.

He said the disparity in starting salaries is making it more difficult to attract and retain officers. He cited an example of the recent departure from Ocean Pines of an officer who had been promoted twice in the past two years. He left for a job with the Worcester County Sheriff’s Department because of a better pay package, Massey said.

The budget proposed by Bailey for 2019-20 doesn’t address any of the issues cited by the chief.

Director Frank Daly said he hoped that someone would present to him and the board completed architectural drawings for an expansion of the police station before the end of the fiscal year, preferably sooner. There’s $50,000 in the current year’s budget for architectural and engineering drawings for the expansion, but Bailey acknowledged that he’s not sent out a request for proposals for the A&E phase of the project.

Daly said he wanted to see the expansion project begin promptly this fiscal year, without having to wait for board action on the Country Club.

Golf panel opposes member fee increases

During a Jan. 7 budget review meeting, members of the Golf Advisory Committee made it known they opposed an increase in membership fees recommended by Bailey for 2019-20. Bailey’s draft budget would restore the membership rates in place during 2017, which had been reduced in 2018 in an attempt to increase membership or at least to stem membership losses.

Membership has continued to erode despite the losses in membership.

When the committee chair complained that Bailey had not been responsive to committee concerns, even ignoring emails, the general manager testily responded that he had engaged in the committee in developing his draft budget and had responded to emails, perhaps not as quickly as some might have preferred. Bailey said that the committee may not have liked his recommended fee increases but members had not been ignored.

The committee was going to meeting later in the week to discuss the rates and, perhaps, revise its opposition.

The B&F committee, which hosted the meeting, did not take a vote on the proposed golf rates. Although proposed golf rate increases are in the double digits in percentage terms, other amenities, such as aquatics and racket sports, would be increased more modestly, in the range of three percent.

Boat slip rental fees are not increased at all in Bailey’s draft budget, having been increased last year.

Aquatics and racket fees have not been increased for about five years, Bailey said.

Aquatics dealing with splash pad hazard

During a discussion of the proposed Aquatics Department budget Jan 8, Budget and Finance committee member Larry Perrone warned that a water hose that provides water to the mushroom water feature at the Swim and Racquet Club’s splash pad constitutes a trip hazard. He called the hose an accident waiting to happen and one that could produce a substantial in

7

punitive damages for negligence if it’s not dealt.

Aquatics Director Colby Phillips in a presentation on her proposed budget later that day said her department and the Public Works Department was aware of the problem and are taking steps to deal with it prior to the summer season.

She also reported that the pool at Mumford’s Landing has developed a leak and that, so far, the source of it has not been found. Phillips said the leak isn’t serious enough to require the pool’s closure but is serious enough that it’s wasting water.

She reported that the pool management company that Aquatics Advisory Committee Chair Kathy Grimes used to work for in Ocean City has agreed to send over some of its experts to see if they can determine the source of the leak prior to the scheduled reopening of the pool Memorial Day weekend.

Panel endorses Sports Core addition

Aquatics and Recreation Director Colby Phillips is not asking for a room addition designed for parties, training and an after-school program at the Sports Core pool in 2019-20. But it might happen anyway.

Bailey’s draft budget initially did not include the room addition, proposed a year ago but not funded because of cost concerns. It would be considered a new capital expenditure, which in the OPA’s arcane if not antiquated budget rules are usually funded directly from current year assessments.

But Viola and members of the B&F committee, in a budget review meeting Jan. 8, were very interested in trying to find a way to fund the room addition in 2019-20 because Phillips has presented what they regard as a persuasive business case for it. She said the addition could generate about $30,000 in net earning from programs that can’t be offered now efficiently or at all because of space limitations at the indoor pool.

The addition would pay for itself in seven or eight years at an estimated q

COVER STORY

8 Ocean Pines PROGRESS January 2019 BUDGET BRIEFS From Page 6

COVER STORY

PROPOSED CAPITAL BUDGET, 2019-20

cost of $200,000 if it’s able to generate $30,000 per year in net earnings during that time.

The committee voted to recommend an alternative to funding the addition through an increase in the lot assessment. Instead it will suggest that the $200,000 be raised either by taking out a bank loan or, as has been done from time to time over the years in Ocean Pines, borrowing internally.

The borrowed funds would be paid back by the addition’s net earnings.

Bailey is adding the room addition to the budget that was presented to the community in a Dec. 12 public hearing.

Bailey budgets for $10,000 in referendum expenses

q

Bailey’s draft budget for 2019-20 includes $10,000 for unspecified referendum expense.

During a Jan. 8 budget review meeting, Bailey said that while the Board of Directors has made no decision on whether to conduct a referendum on changing the declaration of restrictions that govern property use in the various sections of Ocean Pines, that could be one of the reasons for including money for a referendum for next year’s budget.

Although Bailey didn’t mention it, there’s also been talk at the board level of conducting a referendum to authorize a seven figure renovation of the Country Club’s second floor or, perhaps, a new smaller golf clubhouse to replace the Country Club.

The purpose of changing the DRs could be to give the OPA the authority to impose fines on Ocean Pines residents who violate DRs or the guidelines that have been established in support of the DRs. A recent survey of property owners heavily skewed to resident owners in Ocean Pines generated a substantial percentage of owners who supported the institution of fines.

But an on-line poll on oceanpinesforum.com has produced a different result, according to the forum’s owner, Joe Reynolds, who spoke out against fines during the budget review meeting.

He called including $10,000 for a referendum on changing the DRs a waste of money, and also said it wouldn’t be enough the cover the expense of conducting what in effect would be separate referendums in Source: Draft 2019-20 Ocean Pines Association budget

From Page 8

each of the residential sections of Ocean Pines.

The B&F committee did not weigh in on the proposed $10,000 expenditure during discussion.

OCEAN PINES

Departments not charged for marketing expenses

It’s not a surprise to anyone who’s followed the OPA’s byzantine budgetary traditions over the years, but there’s been some new confirmation that the OPA doesn’t account for marketing expenses in the way that a for-profit business such as a restaurant does.

During a Jan. 8 budget review meeting, Marketing and Public Relations Director Denise Sawyer confirmed that her department budget includes marketing expenses for various OPA amenities, such as the Yacht and Beach clubs.

If these two food and beverage operations handled expenses in the way privately owned and managed restaurants do, marketing costs would be allocated to them.

Golf marketing expense also is, for the most part, allocated to the marketing department rather than to golf operations.

The effect of excluding marketing expense from the various amenity departments is to make them look better financially than they actually are performing.

There is no movement afoot to change the way that the OPA accounts for marketing expense.

That’s the way it’s always been done in Ocean Pines. Committee members did not raise any objections to this long-standing practice.

Bailey signals revamping of golf member structure

Although he is proposing membership fee increases for golf that are in the double digits percentage-wise, Bailey told members of the B&F committee Jan. 8 that he is holding off on a major restructuring of golf membership until such time as the OPA either completes a renovation of the Country Club or, alternatively, tears it down and replaces it with a new, smaller golf clubhouse.

The implication seemed to be that once the board of directors deals with the Country Club, Bailey has some ideas on how to address declining golf membership.

He didn’t spell any of those ideas out.

January 2019 Ocean Pines PROGRESS

Former HR manager calls out board for ‘rash, politically-motivated’ termination that he says was related to Trendic matter Douty says he’s willing to work with Bailey, board if they’ll give him his job back, claims general manager told him firing was directed by board

By TOM STAUSS Publisher

T

he abrupt termination of Nate Douty in early January as the Ocean Pines Association’s human resources manager, a position he had held for about eight months, has placed the Board of Directors in an awkward, if not embarrassing predicament.

While the termination was handed to Douty by General Manager John Bailey in a brief one-on-one meeting, Douty in a letter to the board dated Jan. 11 said that Bailey, when pressed to explain the decision, responded that he “had no choice” in the matter.

The general manager essentially was blaming the board for the action resulting in the termination, according to Douty.

Initially, according to Douty, Bailey would only say “board no confidence” when delivering the termination.

In the absence of a clear explanation for why he was terminated, Douty said “others” are left to draw their own conclusions, which he said would be “both hurtful and damaging to my reputation.”

He, too, was left to speculate on the reasons.

His conclusion was that the termination stemmed from his involvement in what he called an attempt to “railroad” Director Slobodan Trendic off the board.

[See article on page 16 for details.]

“How ironic that the response to an action by a board member [Trendic], that may have been intended to railroad a director, ended instead in railroading the HR representative,” Douty wrote.

The former HR manager then seemed to suggest that it was OPA President Doug Parks who drove the internal process that may have been designed to force Trendic’s removal from the board.

“The specific direction from Director Parks (as witnessed by Directors Tuttle and Horn) was to try to get a written statement from the independent contractor” who was on a job site near Trendic’s home and allegedly a witness to an incident involving Trendic and a member of the OPA’s Public Works department. The incident led to a written complaint against Trendic by the employee.

Trendic was subsequently absolved of any wrong-doing by the board, no evidence having been produced that could have proven that the director had instructed the Public Works employee how to do his job.

That would have been improper according to language in Board Resolution B-08 that pertains to board and employee conduct and ethics.

Douty said he was unable to produce a written statement from the contractor, who he said had agreed to supply one but didn’t.

That failure to produce a written statement, he

Excerpts from Douty letter to board, page 34

seemed to suggest, was what produced the “no confidence” in him by certain directors.

Tuttle, Horn, Bailey and Parks were all in a meeting where Douty was told how he should proceed in investigating the complaint against Trendic.

“I provided a summary of the contractor’s sentiments in an email to Director Parks,” Douty said.

“I followed through on this request. ... I was never provided a copy of B-08. ... It was never defined what success looked like in this matter.”

Douty wrote that Parks’s directive to him “produced warning bells that dealing in internal board politics is a matter” in which it’s better to “tread lightly.”

Adding to what he termed “confusion,” Douty contrasted what he called the “private hammering (of the) HR investigation” of Trendic with the subsequent statement that Trendic had engaged in no wrong-doing.

“This is a pretty confident statement to make if you had ‘no confidence’ and significant issues with the ‘shortcomings’ of said investigation,” Douty said.

“Further proof of hypocrisy,” he added.

After detailing what he called an entrenched culture of “mediocrity, entitlement and change resistance” within the OPA, a culture he said he tried to combat in his HR role, Douty acknowledged that his efforts as a “change agent” within the OPA may have “rubbed some employees the wrong way.”

Among changes he implemented was to ask job applicants to identify family members who work for the OPA. “Hiring relatives can in many instances result in a direct violation of the Board’s B-05 policy on conflict of interest,” he wrote. “I think some employees were beginning to hear rumblings that I was beginning to focus my attention on this.”

Douty then shifted back to the incident that led to his termination.

“Your rash, politically motivated, ill-informed ‘no confidence’ action (against) a competent, business-focused HR change agent has also just sent a powerful reinforcement message to the entrenched ‘do-it-the-way-we-always-have-done-it’ culture,” he told the board. “That guy in HR that tried to change things here at the OPA, ha, ha, we just showed him.”

After detailing other efforts by him to reverse “dubious” employee practices including too generous overtime pay, Douty again returned to the two-minute conversation in Bailey’s office where the termination occurred.

“When he stated ‘board no confidence,’” I asked him if he agreed.” Douty wrote. “His response was ‘I q

OCEAN PINES BUDGET BRIEFS

9

10 Ocean Pines PROGRESS

OCEAN PINES

January 2019

Douty termination From Page 9

BUDGET BRIEFS From Page 8

had no choice.’ ” According to Douty, “the board strong-armed the general manager who OPA bylaws designate as chief personnel officer, to take this action, perhaps at the threat of his own job.”

Douty said he was judged to be a “clear and present danger to the Association! A letter is handed to me (my name misspelled). No time to hear me, listen to me. No orderly transition, no hand-off (which by the way, presents it own risk to the association. Classy and dignified ... not!”

Douty took issue with an email to staff indicating that he had been “terminated, let go (by the OPA).

There is no need to say that. Amateur hour. The implication (of that) is misconduct, inappropriate behavior or whatever anyone can imagine.”

He went on to say that “since the reality of the situation is that this rash judgment was made for political reasons without cause, the public statement of termination is defamatory.”

Despite his biting critique of the board, Douty said he still wanted to

work for the OPA and make a difference.

“One of the following statements is true: The Board acted rashly, did not do its homework, and has now put the association at risk, or a disgruntled employee is venting. Hint: Disgruntled employees don’t normally ask for their job back.”

If the board rescinds the action terminating him, Douty said he would be open to creating a “performance plan” designed to “restore the board’s confidence” in him.

But he then described his termination as a “politically motivated punishment” and questioned the board’s “real commitment to the OPA” because it “exposed the association to more risk and a lower bar to measure success.”

The termination has consequences, Douty said, including financial loss, loss of reputation and “it certainly taints my sense of pride, reputation, satisfaction and desire to live in this community. You have crafted a false narrative ... a classic example of ... political malfeasance and duty of care. The record needs to be corrected.”

He concluded by telling the board he was awaiting its response.

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January 2019 Ocean Pines PROGRESS 11

Bailey unveils $915,000 plan in drainage improvements General manager proposes to outsource labor for some preventative maintenance

By TOM STAUSS Publisher rainage continues to be at or near the top of the list of concerns by property owners, and General Manager John Bailey and Public Works Director Eddie Wells have some ideas on how to address issues with more than 300 miles of roadside ditches, ditches that run behind and between properties, and larger drainage channels.

They unveiled the outline of a $915,000 drainage plan as part of Bailey’s draft 2019-20 budget and discussed its details during budget review meetings hosted by the Budget and Finance Advisory Committee Jan. 7 through Jan. 9.

The plan is divided into four parts.

The first is a proposed increase in internal payroll dedicated to drainage in 2019-20 from $85,000 to $118,000, $33,000 more year-overyear.

The plan also calls for $20,000 for

D

engineering services “for all sorts of projects, problem sites, drainage specific plans, pipe replacement not related to those that go under roads, [and] strategic assistance.”

The plan’s third component calls for additional outsourced labor “to address the long-standing need to meet our preventative maintenance drainage needs.” The plan divides Ocean Pines into four drainage areas, with an outside contractor to be hired that would work in one area per week.

Area one would extend from the North Gate to White Horse Park.

Area two would extend from White Horse Park to the Route 90 underpass. Areas three and four would include portions of Ocean Pines south of Route 90.

“For example, [in Area one, in the first week of the program], they would start just inside the [North] Gate and address every drainage area along Bramblewood and ...

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Section 7.” After four weeks, crews would start again, rotating through the four areas.

“For those times we have five weeks, the crew can be assigned the certain critical areas that we know

need more attention,” according to the plan.

The plan’s third component carries a price tag of $125,000 to cover the cost of out-sourced labor.

The plan’s fourth component calls for $620,000, including engineering, for the replacement of failing pipes under OPA-maintained roads. Three such failures have been identified.

The source of the funding would be the OPA’s replacement reserve.

The plan notes that the “current

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12 Ocean Pines PROGRESS

OCEAN PINES

January 2019

Bailey, committee debate purported morale problem General manager budgets ten percent increase in health benefits for employees

By TOM STAUSS Publisher hile no one can quantify it or even verify its existence, General Manager John Bailey and members of the Budget and Finance Advisory Committee debated the possible reasons for a purported morale problem within the Ocean Pines Association during a budget review meeting conducted Jan. 9 in the Assateague Room of the Ocean Pines Community Center.

The discussion occurred when the Bailey and committee addressed a study of OPA salary and benefits, the purpose of which is to determine whether the OPA is competitive in the lower Eastern Shore market for employees.

The study compares Ocean Pines to municipal and county governments in the area, which drew a rebuke from former OPA Director and current chairman of the Bylaws and Resolutions Advisory Committee Marty Clarke.

Clarke said any credible salary and benefits study should reference other area homeowner associations, an opinion not shared by B&F committee member Larry Perrone, who said that the OPA resembles a town or municipal government even it isn’t one technically.

The meeting was streamed live on the Internet, which meant that department heads and others could watch and judge for themselves whether they and their colleagues are suffering from poor morale.

Bailey suggested that one possible reason for poor morale could be the ongoing forensic audit in which one or more employees -- none has been arrested -- were alleged to have stolen cash from the OPA. He also opined that OPA starting salaries for some positions, such as those within the Ocean Pines police department, aren’t competitive with those of neighboring jurisdictions.

Although Bailey didn’t explicitly say it, another possible reason for poor morale if it actually exists could be the ongoing effort by the board of directors to bring health insurance benefits more in line with industry standards.

Last year, and now in place for 2018-19, the board made some relatively minor adjustments in health insurance benefits.

For the 2019-20 budget, the directors last year had decided that there should be additional changes in benefits, with health insurance premiums to be shared either 90-10 or 80-20 between the OPA and employees.

Former boards can’t bind future ones, so it’s not clear whether the current board will follow through with the phased percentage reduction in premium support advocated by last year’s board.

Director Ted Moroney was a leading advocate for a two-year phase of benefit adjustments. Director Slobodan Trendic pushed for a more aggressive phase-in.

There’s no indication that Bailey’s draft budget changes the percentage support for health insurance premiums. In fact, he’s proposing a ten percent increase in benefit costs for the OPA in his proposed budget for next year, along with a two percent average raises. Bailey said a 10 percent increase in health insurance costs are in line with industry rates, citing information given to him by the OPA’s financial advisor, Mitchell and Hastings, a West Ocean City financial management firm.

Bailey and the committee did not discuss possible changes in the premium support subsidy provided employees by the OPA, suggesting that his budget may assume the ten percent increase in rates would be absorbed entirely by the OPA. Current full-time employees’ health premiums are paid for entirely by the OPA, while family members’ coverage requires contributions by employees.

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Farmers Market moves indoors

The Ocean Pines Farmers and Artisans Market has moved indoors this winter. A weekend fixture at White Horse Park during spring, summer and fall, the market is running each Saturday through March 9 from 9 a.m. – noon at the Northside Fire House next to White Horse Park. The indoor market is featuring vendors such as Bay Mushroom, Charlie’s Treats, D.J. David & Company, DelVecchio’s Bakery, Eastern Shore Kettle Korn, Ethne Coffee Roasters, Girdletree Farms, Home Canning Classics, Pampered Chef, Pureblend Teas, Stag Run Farm, Tout de Suite Patisserie, and Windmill Creek Vineyard & Winery. Items for sale include fruit, vegetables, meat, eggs, poultry and dairy products, as well as freshly baked goods, jams, cider, wine, honey, maple syrup, coffee, sauces, soups, kitchenware and treats for pets.

Drainage From Page 11

spend” on drainage in Ocean Pines is $117,000.

All four plan components total

$798,000, bringing the total budget request for 2019-20 to $915,000.

The plan will be considered by the Board of Directors during the budget review process now under way.

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OCEAN PINES

January 2019 Ocean Pines PROGRESS

13

documents, because as envisioned a building that focuses on golf is a change from the Country Club’s dual use as both a golf-oriented clubhouse and a multi-purpose community building.

New building would cost slightly more, Daly says; referendum seems likely if board chooses new golf clubhouse option

Daly said he was aware that an Ocean Pines builder/developer, Marvin Steen, has offered to assist the OPA in renovating the existing building without charging a builder’s mark-up, at an estimated cost, including an elevator, at roughly

By TOM STAUSS Publisher he Board of Directors soon will be deciding whether to move forward with a renovation of the Country Club at a cost of about $1.6 million or a new building that purportedly costs slightly more. A referendum is under consideration.

The $1.6 million estimate is included in the draft budget for 201920 that the board is reviewing.

If a decision is made to focus on a new building, Ocean Pines Association Director Frank Daly has said he personally is inclined to let OPA members decide whether to go that route in a referendum.

Daley was the first director to disclose details of the bids recently received by the OPA for the renovation, the result of request for proposals solicited late last year.

The low bid was submitted by Gillis-Gilkerson, a Salisbury area building contractor active in the area.

The firm is building the Peninsula General Medical Center complex on a parcel adjoining Ocean Pines’s North Gate, with the complex’s third building currently under way.

Daly confirmed that the renovation bid was for roughly $1.3 million, with other bids ranging from $1.5 million to $1.7 million.

Daly said that OPA President Doug Parks has contacted Gillis Gilkerson to obtain a rough estimate of the cost of building a new building, a single-story golf-oriented building of about 7000 square feet.

He said the estimate was slightly more than the cost of a renovating, which to his way of thinking favors a new building over renovating a building built in the 1970s.

Parks said the estimate for a new building covered construction costs only, excluding site preparation and demolition.

Before a referendum could be prepared for a new building, all the costs would have to be fully detailed, he said.

Daly said that if the board decides to go the route of recommending a new building and taking it to referendum, he would be inclined to attach a maximum dollar amount

T

that the project could cost the OPA. “I don’t want what happened with the Yacht Club (costs that over time exceeded what was approved in referendum) to happen with a new golf

: lots, E L 0 SA ded ch; ,00 R o 0 a FO wo 00 e , $5 o ,0 ot Tw $50 ed l ar e l ec on

facility,” Daly said.

He said he was particularly inclined to insist on the necessity of a referendum, even if not technically required under governing

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Gillis-Gilkerson submits low bid for Country Club renovation

14 Ocean Pines PROGRESS

OCEAN PINES

January 2019

Country Club From Page 13

$500,000 or less.

He said he had no idea why the OPA would not have investigated this possibility long before now.

“That decision was made before I became a director,” Daly said.

With bids solicited for a renovation and received, Daly said he tended to agree with Parks, who according to Daly believes a referendum should be based on proposals submitted by contractors in writing in response to a formal RFP process.

But Daly said if a referendum for a new building fails, then he would be inclined to contact Steen to ob-

tain details of his offer to assist in a low-cost renovation.

Steen has made his offer known in statements published in the Progress, with no formal notice to the OPA. More recently, he said subcontractors have given him quotes on various components of an interior renovation that add up to less than $500,000.

Steen said his prices do not include exterior and roofing improvements included in the RFP sent out by the OPA. Parks first disclosed the option of tearing down and replacing the venerable Ocean Pines Country Club with a new building in the December 2018 Progress. Unlike the last

time the replacement option was a political issue in Ocean Pines, during the 2016 Board of Directors election season, this time the idea is to replace the building with a smaller, single-story clubhouse geared to golf-related activities.

“My approach is to look at all the options available to us, so we can make an informed decision,” Parks said in his statement. “Knowing there is significant cost to renovation of the second floor and knowing there will still be part of the structure that is approximately 50 years old, it makes sense to consider the idea of a tear-down and replacement of the existing building.”

He offered “purely arbitrary num-

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bers” in an argument for why a replacement might make sense.

“Let’s say the renovation costs come in at $1.5 million. That investment will address the immediate concerns of golf operations and provide some additional meeting space as per the original intent from 18 months ago. If we decided on that solution, I’m confident the requirements to support golf operations and meeting space will be met,” Parks said.

But he said that “due diligence” requires the board to compare renovation costs to that of replacing the building.

“For example, if the cost to replace the building is $2.2 million (again using a purely arbitrary number), one would consider evaluating the benefit provided by the extra dollar investment over time. Factors such as operational costs for an old building vs. a new building need to be considered,” he said.

In addition, “basic utilities such as heating, A/C, plumbing and electrical can be compared, as a new building will meet updated standards and be much more energy efficient.

“Additional consideration needs to be given to the question of what items currently in the building, specifically on the first floor, will require repair or replacement in the next several years and the projected costs for those requirements,” Parks said, adding that “there are numerous other specific items that can be discussed in conjunction with an evaluation of the options to renovate or replace.”

Parks said he suspects a referendum “will be required” before the OPA would embark on an effort to replace the Country Club.

“However, we need to get the bids back and move the process forward before knowing for sure. In my opinion, the option of replacing the building is required in the evaluation so we have as much information as possible to allow for an informed decision on this important matter,” he said.

Last month, Daly, who is liaison to the Golf Advisory Committee, said he was open to consideration of both renovation and replacement options, with the caveat that changing the use of the Country Club into a golf-only facility would require buy-in from the Ocean Pines Association membership in the form of a community-wide referendum.

To Page 15

January 2019 Ocean Pines PROGRESS

Board votes to continue in-house financial management, wants project manager to oversee roll-out of new software Directors authorize negotiations with NorthStar Technologies to finalize contract

By ROTA L. KNOTT Contributing Writer aving exhaustedly investigated both in-house and outsourcing options for an information technology system to replace the antiquated systems in use by the Ocean Pines Association, the Board of Directors has finally voted to move forward with a long-debated proposal from NorthStar Technologies for a new financial software package.

Director Ted Moroney during a Jan. 5 special board meeting offered a motion, which passed unanimously, to accept the staff recommendation to implement the NorthStar solution, which will include modules that will allow some but not all OPA departments to interface directly with the OPA’s back office.

In making his motion for approval,

H

Country Club From Page 14

“Although I am open to listening and evaluating all alternatives, a golf-only facility will be a tough sell; in my opinion any golf-only facility would need to be approved by referendum,” Daly said then. “The very good thing about the current RFP is that it creates a ‘community centric’ space, an area to be potentially utilized by all Ocean Pines homeowners and clubs. Take that away and the dynamics of the discussion change significantly.”

In recent comments to the Progress, Director Slobodan Trendic indicated that he was leaning against either a renovation or a new building that costs in excess of $1.3 million, or more. He said he was inclined to support the Steen low-cost renovation option.

Moroney said his the approval gives the general manager the authority to enter into contract negotiations with the primary recommended provider, Northstar, and other ancillary support software providers as soon as practical “based upon a mutually agreeable schedule to be developed.”

He said the association had two work groups review both internal software solutions as well as outsourcing options and both recommended moving forward with the inhouse IT software solution offered

by Northstar.

“I think we have asked every question that I can certainly think of everybody as to whether or not it will be a better solution than what we have today or a better solution for outsourcing. From a technical standpoint I think its passed muster,” Director Frank Daly said in

supporting the motion.

Director Slobodan Trendic concurred, saying “I think we all agree that this is a very important project for the entire association. We need to move from an old legacy system into a new modern solution.”

He said because this is the staff recommendation for a new IT solution, he would vote in favor of the purchase.

But he cautioned the management team “to take this project very seriously.”

He said poor planning and management could easily cause it to fail.

He said there will be problems that arise throughout the project period and therefore it is imperative the OPA have a sound plan, an experienced project manager to oversee the implementation, and appropriate contingency plans in place.

15

“This is an investment that’s going to impact the operation of this association for years to come. And it’s a huge investment over a period of time so I think we need to be very careful.”

Director Esther Diller, one of the directors who insisted on investigating and option for outsourcing financial management of the OPA, said she would follow the staff recommendation. “They are the ones who have to use every single day.

They like it.”

OPA President Doug Parks also recommended designating a project manager to oversee all aspects of the project planning and implementation.

“It’s paramount to have somebody who’s running roughshod over the vendor so deadlines, hours don’t turn into days which turn into weeks which turn into months,” he said. He said the OPA needs someone internally that is accountable for seeing the project to completion.

“The amount of information, the complexity, integration of the system in and of itself dictate that it’s going to warrant a long and very extensive detailed process in order to implement.”

Moroney’s motion specified that the cost of the software licensing agreement and any additional hardware required will be funded from the OPA general replacement reserves.

The motion specifies that annual software costs will be funded by the operating fund and the general q

OCEAN PINES

High speed Internet redundancy eyed with NorthStar roll-out

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Mediacom contract almost ready for board approval, Parks says

ith the decision having been made to negotiate a contract with NorthStar Technologies for financial management software, the Board of Directors is well aware that unreliable Internet service could complicate how the software performs in the future, especially if, as seems likely, a Cloud-based version of the software is used by Ocean Pines Association staff.

Cloud-based solutions are totally reliant on the Internet. Mediacom high speed Internet service, even with recent fiber optic lines installed in areas of Ocean Pines, is subject to frequent intermittent outages that annoy customers.

OPA President Doug Parks told the Progress recently that a solution would be to have redundant Internet service available in the event of a Mediacom outage. One possibility is to contract with Comcast to run parallel fiber optic lines to key OPA departments, he said.

In a related matter, Parks said that the long-awaited contract with Mediacom to provide cable television and high speed Internet services to residential and commercial customers in Ocean Pines is awaiting a few final tweaks in the contract that don’t involve attorneys.

Parks seemed sensitive to the perception that protracted back-and-forth between the OPA and Mediacom attorneys is one reason OPA legal expenses are substantially over budget for the year.

He said the contract should be ready for board review and approval in February.

16 Ocean Pines PROGRESS

OCEAN PINES

January 2019

Software saga

Trendic survives another board-driven controversy

From Page 15

manager will “specifically identify the expense for each fiscal year’s budget.”

For fiscal year 2019 -20 the general manager is required to separately identify any one time implementation costs in the budget.

The motion also calls for the general manager and legal counsel to negotiate and provide the board with a contract with all anticipated costs for approval no later Feb. 16.

Finally, it gives the general manager the authority to hire an independent consultant to advise on the corporate network solution at a cost not to exceed $10,000.

Daly said data conversion for the project should get under way as soon as possible.

“It appears that a key element of how long and how much it will cost us to implement this solution is going to be dependent upon the ability to download current data into that system. And that should be done immediately as we’re entering into the (2019-20) budget (process). Because if there are problems there, it is going to dramatically impact the cost and the timing of any implementation.”

When Daly asked about the need for another consultant to help address the interface of the food and beverage operation with the Northstar software, Moroney said that would be included as a one-time implementation cost under his motion.

“I think we’re now in a situation where risk falls into this. How much is it going to cost to implement it and how long is it going to take to implement it?” Daly said.

The third risk is “what happens if things go south quickly” and the OPA has to move to another solution like outsourcing the operations.

Those are items that need to be addressed before the OPA signs a contract with NorthStar, he said.

“We’re going to be implementing a system that drives every aspect of the business and the way to manage it for years to come in an operating environment during a peak season.

Saddle up,” Daly said.

Parks said Daly made a salient point and called out OPA staff to “go above and beyond” day-to-day to duties to help with the implementation.

The next step is to finalize a contract that the board can review and approve.

Director objects to disclosure of his name in a posted meeting agenda about a complaint by an OPA employee, but abandons effort to address the issue in public session.

His colleagues dismissed the charges but there’s been no apology

By TOM STAUSS Publisher he Board of Directors began 2019 embroiled in yet another internal controversy, this one involving the way a complaint by an Ocean Pines Association employee against Director Slobodan Trendic was handled by President Doug Parks and Secretary Colette Horn.

The complaint was dismissed by the board in closed session after a special meeting Jan. 5, attended by the employee’s department head, Public Works Director Eddie Wells, but not the employee who lodged the complaint. Contained in a letter to the OPA by a member of the OPA’s Public Works staff, the complaint alleged that Trendic had improperly intervened with the employee who was part of a crew laying pipe on a nearby neighbor’s property.

Sources say that the board concluded there was nothing improper about the contact, because Trendic was simply making inquiries and not directing the employee to take any action. Under OPA ethics/conduct rules, directors are prohibited from directing employees to take specific action. But asking questions or seeking information is not a violation of any rules in place. Contact with employees is not precluded.

If a director observes an employee acting in a way considered improper, the protocol is that the director is supposed to bring the matter to the attention of his or her department head or the general manager, who deals with the matter internally.

Trendic apparently did not regard the situation he observed at the job site warranted informing the general manager or department head, suggesting that at the time it occurred he did not regard the matter as particularly significant.

The employee, however, apparently felt the contact crossed a line, an opinion that Trendic’s colleagues on the board did not embrace.

“In accordance with resolution of B-08, the matter was investigated by the board to include the HR department, the affected Board Director, the appropriate department head and the Board found no violations of B-08 or the by-laws. The matter is closed,” Parks said in a text to local media following the Jan. 5 meeting.

The meeting agenda made no reference to B-08, which is the OPA’s ethics/conduct policy governing the board. Horn was instrumental in the drafting of a recent revision to B-08.

While the controversy ended with an anti-climactic whimper following the closed meeting, earlier in the week it had involved a public airing of internal friction within the board. Director Frank Daly, in a posting on oceanpinesforum.com, made it clear he was extremely unhappy with the way in which the employee’s complaint was disclosed in the posted agenda.

A very upset Trendic in a telephone conversation with the Progress also made it clear he objected to the published meeting agenda.

The agenda item included Trendic’s name, without any explanation about the nature of the complaint, making it possible for OPA members aware of the complaint to assume the worst. The complainant’s name was not included, setting up a disparity of treatment between the complainant and the accused.

As OPA president and secretary, respectively, Parks and Horn would have been involved in the creation of the meeting agenda. No other director has come forward indicating that they had reviewed the meeting agenda prior to its posting on the OPA Web site.

“Publishing Director Trendic’s name is an indefensible breach of conduct and etiquette and I, for one, am not one bit pleased about it. And you can bet the farm that others will clearly understand how I feel at the [Jan. 5} meeting,” Daly said in his oceanpinesforum.com posting.

Daly made no public statements on the matter during the open portion of the meeting.

No other director responded to a Progress inquiry on who other than Parks and Horn might have been involved in drafting or reviewing the agenda before its publication on the OPA Web site.

The Progress has learned that Parks and Horn said it was OK to release Trendic’s name on the official meeting agenda because, in internal e-mail, he had indicated that he would air the matter in public session rather than agree to consider the matter in closed session.

However, the meeting agenda included a motion by Horn to go into closed session to handle the issue.

Directors did not respond to a Progress email asking about the apparent contradiction.

In the Public Comments segment of the Jan. 5 meeting, Trendic took to the floor to explain why he had changed his mind and agreed to consider the matter in closed session rather than in public, his initial inclination. Trendic said a public airing of the matter might have had the affect of discouraging OPA employees in coming forward with complaints against other employees or directors. He said he did not want to discourage legitimate complaints from being lodged. At the same time, he made it clear he thought such complaints should be handled discretely and the names of the complainant and accused kept confidential.

T

OCEAN PINES

January 2019 Ocean Pines PROGRESS

17

Board unhappy with Bailey for not sending out audit RFP But directors go along with recommendation from OPA treasurer to delay solicitation until the fall; Diller scolds GM for not getting the job done

W

“Why wasn’t it done in September is the question? Why are we not meeting deadlines? I think we need to look at the bigger picture here.

And that is not pick and choose motions are going to be done or not.

That’s not the choice of anyone but the board,” Director Esther Diller asked, but she never got an answer.

Later in the meeting, she directed her comments to Bailey, who was charged with carrying out the board’s motion.

“JB we’re not your babysitters.

You’re a grown man who knows his job. So, when an RFP is given get it done. And it’s not our job to babysit you and I don’t want to babysit you,” she said. “I really don’t think you want seven people up your butt every day to get your job done. So, my

feeling is do your job. Do your job.

We’ll do ours.”

Director Ted Moroney echoed Diller’s concerns, although his language was not quite as colorful and direct.

“I’m going to vote for the motion because I think it’s the right thing to do now,” he said, but added that he has “a major problem” with picking and choosing when and how motions are carried out after they are approved by the board.

When a motion is passed, the required action should either be done or someone should explain to the board why it can’t be and provide an alternative, Moroney said.

“There’s no excuse to do anything else but that going forward,” he said, effectively putting Bailey on notice that another similar failure won’t go over well.

With April 30, the end of the fiscal year, nearing, a majority of directors agreed with a recommendation from Treasurer John Viola that there simply isn’t enough time left to draft and distribute an RFP for auditing services for 2018-19.

Director Steve Tuttle made the motion to withdraw that 2018 motion to seek proposals from firms interested in conducting the OPA’s annual audit.

“Since the RFP was not issued as directed and since the treasurer has recommended to the GM that

Esther Diller

John Bailey

an RFP not be issued at this time it is recommended that this motion be rescinded,” Tuttle said in presenting his motion.

While each director in turn expressed concern about overturning motions passed by previous boards of directors, only Director Slobodan Trendic ultimately opposed Tuttle’s motion.

Trendic about a year ago had presented the original motion to issue an RFP and maintained his position that is should be completed.

“The original motion was my motion and I believe the motion should still be honored by the board and not rescinded,” he said, adding that when the board says it wants something done he expects it to be done.

“There are several instances in the past where this has not happened. Why? I think maybe that’s something we need to look into,” Trendic said.

Trendic asked his fellow directors to recall the reasons he put forth the motion last year.

“It was put forward for two specific reasons that have nothing to do with what the treasurer recently recommended to the board. The motion was put forward because the way the way the current auditor was selected at the time,” he said. q

By ROTA L. KNOTT Contributing Writer ith nothing having been done by staff to implement a directive nearly a year after its passage, the Board of Directors opted to rescind a motion approved in January 2018 to solicit proposals for auditing services for the Ocean Pines Association.

During a Jan. 5, 2019 special board meeting, directors voted 6-1 to rescind the January 2018 motion that instructed General Manager John Bailey to issue an RFP for financial auditing services for fiscal year 2019 by Sept. 1, 2018.

That never happened and no one seems to know why. Bailey offered no explanation for his lack of follow-through.

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From Page 17 Trendic argued that the recommendation had been made to the board by a former treasurer and director to select a particular auditing firm from the Baltimore area, but certain prior relationships between directors and the firm were not disclosed to the board. Additionally, he said the board was also not aware that the price of that particular offer was about 50 percent higher than the other two offers received from auditing firms on the Eastern Shore.

“I felt it was my duty as a director

to revisit the whole process and to make sure that we get the best most competitive financial offer for auditing services,” Trendic said. “The intent of my motion that was unanimously approved by the board was to correct what happened earlier.

And that still stands.”

Trendic said Viola’s argument against putting out the RFP because it’s a bad time to change auditors is not valid. He said that argument assumes that they will lose in new procurement process, but the onus is on them to up to submit a competitive proposal. If they do so, the board may decide to continue working

with the same firm. “What I want is a more competitive, more aggressive process for the association,” he said.

As for the motion to rescind the 2018 directive to proceed with the RFP, Trendic said “I think it’s the wrong thing to do and it will set precedent to question judgment of previous boards.”

Tuttle said he is not in favor of rescinding motions as a normal practice. “I just think that’s totally unacceptable. I do believe it this case, considering the circumstances, the timing, [an exception should be made]. The September 1 date has already passed, we’re in the middle

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of a forensic audit. We have the end of the fiscal year’s coming up pretty fast. To try to change audits before the end of this fiscal year doesn’t make a lot of sense to me.”

He said the OPA should still develop and circulate an RFP after the close of the fiscal year to get competitive prices for financial auditing services.

Aside from her bigger concern of why the board’s directive wasn’t carried out, Diller took issue with the practice of rescinding motions.

“I’m really concerned about getting in the habit of doing this. That is my major concern on voting this way,” she said.

Although Viola made a good case for postponing the RFP until a later date, Moroney said any challenges with issuing that document should have been brought to the board prior to September when it was due.

“Not to be told this two and a half months later [is unacceptable],” he said.

Trendic said the “motion was not complied with and it’s four months late.” If it was issued as directed, the results of the RFP would be before the board for consideration by now.

“We’re rescinding the motion for the wrong reason,” he said, adding it has nothing to do with the original motion itself or the approval by the previous board.

“For you to vote in favor of this motion now is absolutely wrong and I will vote against it for those reasons,” he told his fellow directors.

“I certainly understand the position of Director Trendic and I certainly agree that rescinding motions is not a good idea in general principal,” Director Collette Horn said.

However, the board is “in a spot” because motion was not acted on. Horn offered no criticism of Bailey for his role in putting the board in the spot it found itself in.

OPA President Doug Parks said “practically it would be disruptive to conduct a RFP that may change auditing firms at this time. The more pressing problem is the responsibility of the board to follow through on motions. We didn’t do that,” he said.

Parks said the board needs to make sure a similar situation doesn’t occur again.

“We have to do a much better job on following up on that. I think it’s incumbent on us to make sure that not only do we make the kinds of decisions that are helping to move the community forward but that we do follow through with them so that q

18 Ocean Pines PROGRESS

OCEAN PINES Audit RFP From Page 18

we’re not in this position again.”

Diller asked how the board makes sure the work gets done. “The words sound great. But tell me how are we going to follow through because this is not the first RFP that was not completed on time,” she asked, adding “If this board votes on it why aren’t they being done? Tell me.”

Parks suggested creating a spreadsheet of open items for tracking purposes.

Director Frank Daly said the board has to make it clear to the general manager that it expects its motions to be carried out and a spreadsheet of action items may help ensure that happens. “When we pass something we have every expectation that what we pass will be done correct, complete, on time, and on cost every time.”

Trendic said it’s a good idea for the board to have some kind of dashboard to keep track of issues. However, he said it’s even more important for the general manger to keep track of what’s been asked for by the board.

“I don’t think it’s a board responsibility to make sure that the GM does what the motion is calling for.

So that is the issue that I think we have as a board. We know what the board’s role is and the GM knows what his role is and I really don’t want to be tracking his actions. It’s not my role to do that,” he said.

Until five or more years ago, the OPA vice-president maintained an action list of outstanding issues and projects as a way of keeping the board focused.

Tuttle, the current vice-president, has resurrected that spread sheet.

January 2019 Ocean Pines PROGRESS

19

Bailey fails to act on Beach Club, budget reduction directives

By TOM STAUSS Publisher

W

hile General Manager John Bailey took some hits at a special Board of Directors meeting Jan. 1 for failing to issue a request for proposals from financial service companies for conducting the annual audit of Ocean Pines Association finances in compliance with a board motion in January of last year, he’s not followed board directives in other, more recent instances.

So far, there’s been no rebuke of the general manager for this lack of follow-through or any public commentary by the directors that suggests they’re even aware of it.

One instance had to do with a directive to develop an RFP for improvements to the second floor of the Ocean Pines Beach Club in Ocean City.

Another involved a board directive to propose ways to achieve a 2.5 percent or greater reduction in the proposed operating budget for 2019-20.

During a Sept. 8 board meeting, the directors instructed Bailey to develop an RFP for proposals for proposals for improvements to the Country Club’s second floor that could turn it into a revenue generator. He was supposed to work with the Matt Ortt Companies in developing the RFP. Director Slobodan Trendic offered the motion during the Sept. 8 meeting for the general manager to “develop a desirable scope of work with help from Matt Ortt Companies, issue a request for proposals for improvements to the second floor by Sept. 28, and present the results and recommendations to the board by Oct. 20.

Concerned about the tight timeframe proposed, directors ultimately approved a slightly amended motion, changing the date for release of the RFP to Oct. 31 and having it due back to the board in December.

Neither deadline was met.

In an email to the Progress late last year, Director Frank Daly said that the board had directed Bailey “to develop a list of potential cost reductions for board review and action that will achieve a 2.5 percent or greater reduction in the operating budget” in 2019-20.

Items targeted for cost reductions should be those departmental line item expenses that have exceeded the rate of inflation for the past five years, Daly said.

“For items that have exceeded that rate the General Manager will provide an explanation to the Board supporting the increases or a plan to reduce the expenses for those items without impacting service levels,” he said.

In addition, Daly said the board had agreed to continue work to outsource certain functions now performed in-house by the OPA by directing the general manager “to take all actions necessary to provide a cost comparison between using external contracted resources rather than in house staffing” for functions in particular -drainage, OPA-wide landscaping service, golf course deferred and emergency maintenance, and critical facility deferred maintenance identified by department managers.

In the draft 2019-20 budget released by Bailey in early January, there was no schedule of reductions that could achieve a 2.5 percent or more reduction in the operating budget for next year.

Salaries are scheduled to go up two percent, and health insurance benefits are scheduled to rise by ten percent.

The draft budget did contain an outsourcing proposal for a targeted drainage program, however.

Bailey proposes to hire an outside crew to supplement efforts to deal with drainage issues throughout Ocean Pines. It’s part of a targeted drainage remediation plan costing just less than $1 million next year.

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20 Ocean Pines PROGRESS

January 2019

January 2019 Ocean Pines PROGRESS

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22 Ocean Pines PROGRESS

OCEAN PINES

January 2019

Dive-in movie

The Ocean Pines Aquatics Department has scheduled a dive-in movie showing of “Charlotte’s Web” on Saturday, Jan. 19, from 6-8 p.m. at the Sports Core Pool. Guests will watch the movie on a blow-up screen while floating on inflatable rafts in the heated indoor pool. Popcorn will be available for purchase. The cost to attend the dive-in movie is $3 for Ocean Pines swim members, $5 for Ocean Pines residents and $7 for non-residents. Families of more than four may pay a flat rate of $20.

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OCEAN PINES

23

Proposal would require changes to declaration of restrictions

A majority of owners in each section have to approve any changes, not just who opt to participate in a referendum. Non-participation is the equivalent of a no vote.

Director Frank Daly supported included funding in the budget to pursue changes to the covenants.

have a different declaration of restrictions. “We’re all in the same town. I think it is time. And I think we really have to discuss that about making the same rules for everybody. No matter what section we’re all in Ocean Pines is the bottom line

at the end of the day.”

Each set of restrictive covenants was recorded following often extensive negations between the OPA and the developer of individual sections of Ocean Pines. Language included in the documents is based on the

q

ARC recommends fines for property violations

maintenance requirements, amenities, and general character of the specific sections. Changes to the declaration of restrictions require a referendum of the property owners in the individual section when an amendment is proposed.

By ROTA L. KNOTT Contributing Writer ased on a recommendation from Architectural Review Committee, the Board of Directors is considering taking on the arduous task of condensing the restrictive covenants for each section of the community into a single governing document that would give the Ocean Pines Association the ability to issue fines for violations of the governing documents.

Director Ted Moroney presented that suggestion, along with another to ensure the availability of an OPA staff inspector on Saturdays, during a Jan. 5 meeting. He didn’t offer a motion to that effect, however.

As both recommendations come with a cost, Moroney said the board should review them during its 201920 budget discussions now under way.

“In agreement with the recent survey conducted of Ocean Pines homeowners we strongly recommend a system of fines be established for violations of the ARC guidelines and the OP covenants. We suggest that the initial fine be sufficient enough to be an attention getter and after a 30-day grace period fines would increase every day the violation is not corrected,” the unanimous ARC recommendation states. The committee didn’t recommend a specific fine structure, but rather said that is up to the board.

“There is no way for us to be able to fine across the board currently and it’s a tool that they are recommending that we consider adding,” Moroney said. He noted that in order to have the ability to issue fines for property violations, the OPA would have to seek revisions to the various restrictive covenants for sections within Ocean Pines.

Director Esther Diller repeatedly called Ocean Pines a town and a city, even though the homeowners association has no municipal standing.

Its an HOA-managed community with certain municipality-like functions and responsibilities.

“We’re a town. We’re a small city,” she said, adding that she has never understood why the sections each

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ARC recommendation From Page 23 “I have watched a number of boards spend countless hours talking about menial things because at the end of the day the root cause is we cannot enforce our declaration of restrictions. I think it’s time to either crap or get off the pot. Put it in front of the people either live with the problem or give us the tools to solve the problem� he said.

OPA President Doug Parks said the concepts presented by the ARC are sound, but he added that there’s a lot more to it than just accepting the recommendations.

He acknowledged the differences in the declaration of restrictions for each of the sections in Ocean Pines. “Maybe it’s time that we really do have that discussion and see where it takes us. There could be, I see some benefit in making everything consistent across all the DRs.�

Director Slobodan Trendic supported investigating what would be required and the associated costs for pursuing a collective change to the declaration of restrictions to give the OPA the authority to issue fines for property violations. “It will be timely. It will be costly and it will involve the entire community,� he said, signaling reservations about the merits and the prospects for success.

The ARC also recommended increasing the available inspections staff within the compliance, permits and inspections division from one full time and one part time worker to two full-time equivalent positions.

Additionally, the committee suggested the staff’s schedules be adjusted to allow an inspector to work on Saturday every week. “Given that many violations such as excessive and unpermitted tree removal takes place on weekends, the flexibility of two full time employees would alleviate some of those issues. We understand that this is both a budget and operational matter however we believe if possible the board should consider this change,� the ARC recommendation states.

Trendic said he wants feedback from the OPA general manager and public works department head regarding the need for an additional inspection staff. He said he wants to know whether the need for additional resources exists – because of a growing case load, inefficiencies, or other challenges. “I’m not against it, I’m not in favor of it. I just feel like

Craft Club’s installation of officers

On Dec. 15, the Pine’eer Craft Club of Ocean Pines held its annual Installation of officers luncheon at the Captain’s Table in Ocean City. Pictured are the newly intalled officers, from left to right: Sharon Puser, presideht; Linda Brindley, recording secretary; Ginger McGovern, assistant shop manager; Jeannette Rembach, shop manager; Jane Walnik, Treasurer; Barbara Stillwell, assistant shop treasurer; Carol Quinto, shop treasurer; and Barb O’Connor, corresponding secretary.

we need a little more information before we can really entertain this as a board position.�

Moroney said he wasn’t planning to make a motion on either matter during the Jan. 5 meeting, but simply wanted to bring them to the attention of the full board for consideration as part of the annual budget process. “There is an expense involved in that to do so,� he reminded his colleagues.

A FEW JANUARY HAPPENINGS ...

The Pine'eer Craft Club will be meeting Jan. 17 at the Ocean Pines Community Center, with refreshments at 9:45 a.m. followed by business at 10 a.m. and a project to be announced. The Pine'eer Artisan and Gift Shop is open every Saturday from 9 .m. to 3 p.m. and Sunday 0 a.m. to 4 p.m.

The January meeting of the Democratic Women’s Club of Worcester County is scheduled for Monday, January 21 2019, at the Ocean Pines Community Center at 9:30 AM. We offer coffee and conversation from 9:30 to 10:00.

At 10:00 our guest speaker will be Matt Heim, who is the Mid-Atlantic Campaign Organizer for Oceana, an international ocean advocacy organization that is leading local efforts against off shore drilling.

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Property owner contends OPA lacks will to enforce DRs

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uring board discussion of possible amendments to the restrictive covenants to allow for the levying of fines, OPA President Doug Parks opened the floor to comments from OPA member Joe Reynolds, who Financial Advisor expressed opposition to giving the OPA the authority to impose fines.

215 North Main Street Berlin, MD 21811 Contradicting Daly, Reynolds said the OPA has the tools to enforce the DRs but lacks the will to do so.

410-208-1704 Carrie.Dupuie@RaymondJames.com “The lack of will to enforce the DRs originates to a great extent out of the General Manager’s office, this general manager and most prior general managers,” Reynolds said. “The current DRs give the board broad powers to send work crews on to privately owned lots and correct any violations the board deems needing correction Call Price: 100 (000) * and to send the lot owner a bill. Over the 50 years of OPA existence, boards and general managers have been Other:% (Obligor) (0.00%) TAX-FREE 3.25 TAX-FREE* 8/15/2045 Maturity Date: (00/00/00) 100 Call Price: (000) A2/A Rating: (XXX/XXX) reluctant to use that authority.”

A2/A Rating:(Name (XXX/XXX) Reynolds also said that for ten years or more the general manager has had the authority to “fast-track” an Prince Georges Md of MuniCnty Bond) Other: 8/15/2025 Callable Date: (00/00/00 or(Obligor) N/A) Carrie Dupuie, AAMS Other: (Obligor) alleged violation, a process that is set up to avoid the usual time-consuming back-and-forth between the OPA Carrie Dupuie, AAMS 98.500 Price: (00.00) (Financial Advisor Financial Advisor Name) (00/00/00) 3.25 Advisor and members before any legal action is taken by the board.

(Approved Title) Financial Advisor Name) 100 Call(Financial Price:Coupon: (000) 215 North Main Street 07/15/2036 Maturity Date: (00/00/00) Berlin, MD 21811 “Fast-tracking involves bypassing the time consuming normal process and bringing a violation directly to (Approved Title) (Address) 07/15/2028 Callable Date: (00/00/00 N/A)Dupuie, AAMS Carrie 215 North Mainor Street 410-208-1704 (City, ST 00000) 100 (Financial Advisor CallCarrie Price: (000) Dupuie, AAMS the board of directors. Fast-tracking can have a violation before the board in a matter of days, if necessary.

Financial Advisor Na A2/A Carrie.Dupuie@RaymondJames.com Rating: (XXX/XXX) (000-000-0000) I(XXX/XXX) (Toll-Free: 800-000-0000) Berlin, 21811 Aaa /MD AAA (Financial Advisor Name) Rating: Financial Advisor (Approved Title) (Address) The normal process can result in violations left open for a year or more as the bureaucracy grinds out reams 215 North Main Street Fax: (Obligor) (000-000-0000) Other: (Approved Title) 410-208-1704 215 North Main Street (E-mail Address) Berlin, MD 21811 of paperwork,” according to Reynolds.

ST 00000) Other: (City, (Obligor) (Address) (Website) Berlin, MD 21811410-208-1704 Carrie.Dupuie@RaymondJames.com (Address) No director responded to Reynolds. There was no board vote giving Bailey the authority to pursue the mat(City, ST 00000) (000-000-0000) I (Toll-Free: 800-000-0000) Carrie Dupuie, AAMS 410-208-1704 Carrie.Dupuie@RaymondJame (Financial Advisor Name) (City, ST 00000) (000-000-0000) I (Toll-Free: 800ter with counsel Jeremy Tucker to create a master set of DRs, though Director Ted Moroney suggested that it Carrie.Dupuie@RaymondJames.com (Approved Title) Fax: (000-000-0000) (000-000-0000) I (Toll-Free: 800-000-0000) Fax: (000-000-0000) (Address) and a related ARC suggestion to expand the OPA’s enforcement staff could be discussed during the 2019-20 Fax: (000-000-0000) (E-mail (City, STAddress) 00000) (E-mail Address) (000-000-0000) I (Toll-Free: 800-000-0000) budget review process now under way.

(E-mail Address) (Website) (Website) Fax: (000-000-0000) (Website) Address) Carrie (E-mail Dupuie, AAMS The ARC suggested expanding the current one full-time enforcement person and one part-timer to two full(Website) time enforcement employees in the Department of Compliance, Permits and Inspections.

(Financial Advisor Financial Advisor Name) This would give the OPA the ability to improve enforcement on weekends, when a disprortionate number of (Approved Title) * As of 9-28-18 Subject to availability and price 215change.

NorthMinimum Mainpurchases Streetmay apply. The yield is the lesser unapproved tree removals are said to occur. of yield to maturity or yield to call. Interest is generally exempt from federal taxation and may also be free of state and local taxes for investors residing in the state and/or locality where While no mention of weekend yard and garage sales was made during the meeting, weekends in Ocean 09/28/2018 Berlin, MD 21811 **As As ofof 00/00/00. the bonds were issued.

However, bonds may be subject to federal alternative tax (AMT), and 09/28/2018 **As As ofof00/00/00.

(Address) profits and losses on tax-exempt bonds may be subject to capital gains tax treatment. Ratto availability and price change. Minimum purchases may apply. The yield is the lesser of yie Pines are known as the times when signs promoting such sales proliferate on the medians along streets inSubject the ings bychange.

Moody’s/Standard & Poor’s.

A credit rating of alesser security a recommendation to is gener Subject to availability and price Minimum purchases may apply.

The yield is the yieldisinvestors tonot maturity orresiding yield to call. in Interest from federal taxation and may alsothe besecurity free of state and local taxes offor the stat 410-208-1704 06/07/2018 andtaxes may subjectresiding to review,therevision, suspension, reduction or were issue **As As ofof00/00/00. federal andbuy, maysell alsoorbehold freealternative of state and local forbeinvestors and/or locality where the on bonds bonds from may be taxation subject to federal minimum tax00000) (AMT),inInsurance andstate profits and losses tax-exem (City, ST community. at anyminimum time bytaxthe(AMT), assigning Rating pertains only the timely bonds be subject towithdrawal federal alternative and profits andaAgency. losses on tax-exempt bonds may be to subject to capital to gainsbuy ta Ratings by may Moody’s/Standard & Poor’s.

A credit rating of security is not a recommendation payment of principal and interest.

No representation is madetotobuy, anysell insurer’s ability to meet its be subjec Ratings by Moody’s/Standard & Poor’s.

A credit rating of a security is not a recommendation or hold the security and may Carrie.Dupuie@RaymondJames.com Subjectrevision, to availability and price change.

Minimum purchases may apply.

Thedo yield isremove the lesser of Rating yield todomaturity orInsurance yield to call. suspension, reduction or withdrawal at any time by the assigning Agency. financial commitments.

Ratings and insurance not riskpertains since they nottimely guarantee Because yard and garage sales are popular with residents, signage that in some cases are non-compliant revision, suspension, reduction or withdrawal at any time by the assigning RatingtoAgency.

Insurance onlycommitments. to the paymentRatings of princip est. No representation is made as to any insurer’s ability meet its financial from federal taxation and may also be free of state and local taxes for investors residing in the state and/or locality where the I (Toll-Free: 800-000-0000) market value of theability bond.to meet its est. No representation isthe made as (000-000-0000) to any financial commitments.

Ratings and insurance do not remove market risk sib not guarantee market value ofinsurer’s the bond. bonds may be not subject to the federal alternative tax (AMT), and profits and losses on tax-exempt bonds may be subject to guarantee the market value of theminimum bond. with OPA rules is tolerated, at least to some degree.

Securities offered through Raymond James Financial Services, member FNRA/SIPC. Securities offered through Raymond James Financial Services, Inc.Inc., , member FINRA/SIPC. 06/07/2018 **As As ofof 00/00/00.

Subject to availability and price change. Minimum purchases may apply. The yield is the lesser of yield to maturity or yield to call. Interest is generally exem from federal taxation and may also be free of state and local taxes for investors residing in the state and/or locality where the bonds were issued. Howev bonds may be subject to federal alternative minimum tax (AMT), and profits and losses on tax-exempt bonds may be subject to capital gains tax treatme Ratings by Moody’s/Standard & Poor’s. A credit rating of a security is not a recommendation to buy, sell or hold the security and may be subject to revie revision, suspension, reduction or withdrawal at any time by the assigning Rating Agency. Insurance pertains only to the timely payment of principal and int est. No representation is made as to any insurer’s ability to meet its financial commitments. Ratings and insurance do not remove market risk since they not guarantee the market value of the bond.

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Subject to availability and price change. Minimum purchases may apply. The yield is the lesser of yield to maturity or yield to call. Interest is generally exem from federal taxation and may also be free of state and local taxes for investors residing in the state and/or locality where the bonds were issued. Howev bonds may be subject to federal alternative minimum tax (AMT), and profits and losses on tax-exempt bonds may be subject to capital gains tax treatme Ratings by Moody’s/Standard & Poor’s. A credit rating of a security is not a recommendation to buy, sell or hold the security and may be subject to revie revision, suspension, reduction or withdrawal at any time by the assigning Rating Agency. Insurance pertains only to the timely payment of principal and int est. No representation is made as to any insurer’s ability to meet its financial commitments. Ratings and insurance do not remove market risk since they not guarantee the market value of the bond.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. 06/07/2018 **As As ofof 00/00/00.

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©2015 Raymondbonds James Inc.,minimum member FINRA/SIPC ICD BSbonds 8/15 may Financial be subject to Services, federal alternative tax (AMT), and profits15-MFI-0113 and losses on tax-exempt may be subject to capital gains tax treatment.

Ratings by Moody’s/Standard & Poor’s. A credit rating of a security is not a recommendation to buy, sell or hold the security and may be subject to review, revision, suspension, reduction or withdrawal at any time by the assigning Rating Agency. Insurance pertains only to the timely payment of principal and interest. No representation is made as to any insurer’s ability to meet its financial commitments. Ratings and insurance do not remove market risk since they do not guarantee the market value of the bond.

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26 Ocean Pines PROGRESS

OPA FINANCES

January 2019

Bailey’s ‘speculative’ OPA reorganization apparently rebuffed by directors New $100,000 position not well received; GM declines to share what he has in mind with OPA members

By TOM STAUSS Publisher etails are sketchy, but General Manager John Bailey in a closed meeting of the Board of Directors Jan. 5 outlined a proposed reorganization of the Ocean Pines Association that, by his own admission, did not seem to go over all that well.

The proposed reorganization apparently included the creation of a new $100,000 executive position, which, with benefits, would cost OPA members about $125,000 per year.

When the proposed reorganization was discussed briefly by members of the Budget and Finance Advisory Committee in a 2019-20 budget review meeting Jan. 7, Bai-

ar

Bailey called Reynolds disruptive for insisting on details about the proposed reorganization. Reynolds responded that Bailey was not being transparent with the OPA membership.

The general manager said he wanted to keep his proposed reorganization and new position confidential because it potentially involved personnel employed by the OPA. He in effect cloaked what he called a “speculative” reorganization in one of the Maryland Homeowner Association Act’s permitted exception’s, personnel matters.

This provision of the HOA Act was cited when the board voted to go into closed session Jan. 5 to discuss the proposed reorganization, which

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ley declined to describe the new position.

Media representatives in the room speculated that the new position was the equivalent of an assistant general manager. Informed sources tell the Progress that is exactly what Bailey proposed.

When Joe Reynolds of oceanpinesforum.com pressed Bailey for information about the new position and the proposed reorganization, Bailey scolded Reynolds for bringing up the matter in a public meeting.

Earlier in the meeting, Bailey had asked Reynolds not to mention the name of a former OPA Yacht Club manager in public for fear of legal ramifications. Reynolds responded with an eye roll.

Bailey apparently has devised in a chart form.

He came close to saying the issue was no longer on the table because of the board’s initial reaction to his proposal.

Discussion of the proposed new position and reorganization occurred during a meeting in which B&F committee chair John Viola, the OPA treasurer, said was to make the 2019-20 budget review process fully transparent to the OPA membership.

When asked whether the speculative reorganization chart could be separated from the potentially affected individuals, OPA President Doug Parks said they couldn’t be, thereby continuing to keep the proposed new position under wraps.

Parks said that Bailey’s idea wasn’t necessarily dead on arrival, but that the general manager was correct to view the board’s attitude as skeptical because it would have involved additional expense, something the board is not eager to endorse.

Parks said that Bailey is free to promote his reorganization and new position without adding payroll expense.

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OCEAN PINES

January 2019 Ocean Pines PROGRESS

Pine’eer Craft Club donations

Staff donations

Staff members of the Ocean Pines Association partnered with Worcester County G.O.L.D., a non-profit organization that helps area residents for whom traditional means of financial support is not fully available, to provide “food baskets” for 15 families in need in the Ocean Pines/Berlin area during the holiday season.

27

The Pine’eer Craft Club of Ocean Pines held its annual holiday luncheon, installation of officers and presentation of donations at the Captain’s Table in Ocean City Dec. 15. Through fund-raising efforts including the annual artisan and craft fairs held in August and November and with proceeds from the Pine’eer Artisan and Gift Shop, the club donated $1,500 to the Ocean Pines Police Department, $1,200 to the Ocean Pines Volunteer Fire Department, $1,500 to the Ocean Pines Recreation and Parks Department, $500 to the Ocean Pines Public Works Department, $300 to the Ocean Pines branch of the Worcester County library, $400 to the Worcester County Veterans Memorial, and $100 to Ocean Pines Neighborhood Watch. Throughout the years the Pine’eer Craft Club has donated over $151,000

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28 Ocean Pines PROGRESS

OPA FINANCES

January 2019

PROJECTED 2018-19 YEAR-END RESULTS

$16,000 operating loss projected for FY 2018-19

O

Source: Draft 2019-20 OPA budget

cean Pines Association Treasurer John Viola and Director of Finance Steve Phillips issued a year-end forecast for 2018-19 in December. They projected a $9,000 loss or negative variance to budget in a forecast issued as part of the Treasurer’s Report delivered during the Dec. 1 meeting of the Board of Directors.

It represented a major turn-around from a year ago, when the projected loss for 2017-18 was estimated at $1 million or more at the fiscal year’s half-way mark. FY 2018-19 ends on April 30 this year.

The $9,000 estimated loss has now been adjusted upward, albeit only slightly.

In the draft budget released by General Manager John Bailey in early January, the projected loss for the year is now $16,000. The operational surplus is projected at $10,000, but there’s a new capital expenditure deficit of $26,000, resulting in the overall loss of $16,000.

Projections for year-end results issued in December and January, four or five months before the end of the fiscal year, are notoriously suspect.

Yet they’re very important in the drafting of the following year’s budget, as projected results often are the baseline for line items in new plan.

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OPA FINANCES

January 2019 Ocean Pines PROGRESS

By TOM STAUSS Publisher he Ocean Pines Association continues to be in solid financial shape seven months into the 2018-19 fiscal year. After recording a $22,851 positive variance to budget in October, after similar results in July, August and September, the OPA generated a positive operating fund variance of $21,633 in November.

For the first seven months of the fiscal year, the positive variance to budget is $139,777, including new capital, $150,899 without it.

In November, revenues exceeded budget by $53,375 and total expenses were over budget by $31,741.

The positive variance to budget through November was produced by revenues over budget by $347,041, total expenses over budget by $!96,151, and new capital over budget by $11,113.

Seven months into the fiscal year, the OPA recorded a $3,328,463 surplus, which compares to a $2,509,804 surplus a year ago.

That’s a year-over-year swing in net operating results of almost

T

q

OPA records $140,000 positive variance to budget for first seven month of ‘18-’19

29

November 2018 OPA operating results. Source: OPA Finance Department

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30 Ocean Pines PROGRESS

WORCESTER COUNTY

January 2019

Operating results From Page 29

$819,000.

The Yacht Club slipped back into deficit territory in November, losing $21,359 but out-performing its budget by $1,951.

Through seven months, the Yacht Club was in the black by $129,028, ahead of budget by $122,121.

The year-over-year positive swing through November was $449,914.

Golf recorded a $40,626 negative variance to budget in November, ahead of budget by $644.

Through seven months, golf remained in surplus territory.

7

$ 99

Net operations of $40,389 were ahead of budget by $17,702.

There’s a year-over-year negative swing of $68,784.

The Tern Grille continued to hold its own in November, losing $3,005 for the month while exceeding budget by $798.

For the year, the Tern Grille is ahead of budget by $2,633 on net earnings of $8,196. That represents a $27,275 over the same time in 2017.

The Beach Club, not open this time of year, lost $5,328 for the month and missed budget by $2,457.

For the year so far, the Beach Club has a $130,421 surplus, ahead of

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budget by $14,392.

That’s a $186,452 improvement over the same time in 2017.

Aquatics, while recording a $5,454 loss in November, nonetheless recorded a positive variance to budget for the month of $12,522.

Seven months into the fiscal year, Aquatics is in the black by $234,589, under budget by $56,977, for a negative year-over-year swing of $75,123.

However, Aquatics’ negative variance to budget is being offset by a revenue adjustment recently announced by OPA Treasurer John Viola in the amount of $85,000, spread over the last six months of the fiscal year in equal increments of just over

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$14,000 per month.

That will work out to an additional $70,000 adjustment for the onths of December through April.

The revenue is attributable mostly to coupon debit cards sold but not credited to Aquatics over a two or three-year period.

It’s sufficient to offset much of the negative variance to budget recorded by Aquatics through the first half of 2018-19.

Other amenity departments, while losing money in the month, missed their budgets by very modest amounts.

Pickleball continued to be the top performing racket sport, in the black through November in the amount of $11,939 and ahead of budget by $7,583.

Its operating surplus is sufficient to offset a loss in tennis recorded as of November.

Platform tennis had a net operating surplus of $6,286 through November, ahead of budget by $779.

Tennis was in the red by $10,237 through November, with a negative variance to budget of $4,356.

When combined, all three racket sports are in the black for the year and ahead of budget.

The Parks and Recreation Department is also performing well through November, ahead of budget by $32,804.

The Beach Club and beach parking also are out-performing their budgets and are comfortably in the black for the year.

Both departments are inactive this time of year, with no revenue because the amenity is closed.

Some fixed expenses are incurred, however.

Reserve summary -- As of Nov. 30, the OPA had $9,71,364 in reserve accounts, comprised of $5.97 million in the replacement reserve, $2,688,634 in the bulkhead and waterways reserve, and $1,148,463 in the roads reserve.

That’s a drawdown or roughly $300,000 in the bulkhead reserve from the previous month, not atypical of Capital summary -- The OPA through November spent $390,227 in replacement capital, $103,327 more than budgeted.

Balance sheet -- The OPA balance sheet as of Nov. 30 shows $11,224,763 in short-term investments, compared to about $8.1 million held by the OPA in October of 2017. Operating cash of $756,764 contrasted with the $1,568,337 in November of 2017.

WORCESTER COUNTY

January 2019 Ocean Pines PROGRESS

Commissioners approve Rt. 589 sectional rezoning

That hearing and subsequent approval occurred Dec. 18, overriding the views of Tudor, the county’s planning staff, and planning commission.

Ocean Downs casino property excluded from action

D

District to commercial districts.

Ultimately, however, the planning commission recommended making no changes at all to the zoning of properties along the subject corridor, Ed Tudor, director of development review and permitting, told the com-

missioners during a Nov. 7 meeting.

“However, the law does provide that in the case of a sectional rezoning you still have to hold a public hearing even though the planning commission is not recommending any changes,” he said.

Tudor said at the time zoning was established in Worcester County in 1965 the entire area under discussion was given an A-1 Agricultural District zoning classification. During a 1992 comprehensive rezoning, the portion to the west of McAllister Road and Route 589 was rezoned to E-1 Estate District.

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By TOM STAUSS Publisher espite opposition from the Worcester County Planning Commission, the Worcester County Commissioners on Dec. 18 voted for a proposed sectional rezoning along the Route 589, McAllister Road, and Griffin Road neighborhood, sometimes referred to as Taylorville. A public hearing on the proposal will be held before the commissioners on Dec. 18.

The was for in favor with three absentions. Among those abstaining were the two commissioners who represent parts of Ocean Pines, Jim Bunting and Chip Bertino. The action changes the zoning classification of the affected properties from A-1 agricultural and E-1 estate to C-2 commercial.

The rezoning affects six properties on the west side of Route 589.

Because of opposition to the rezoning by the owners of the Ocean Downs Casino and racetrack, that area, east of Route 589, was not rezoned in a bloc to commercial. Currently, the casino and racetrack lie in a patchquilt of commercial and agricultural zoning.

Steve Machen, one of the McAllister Road property owners whose properties was rezoned after a year-long process, said it will have the affect of increasing the potential for commercial development in that area of Route 589, thereby increasing the value of his and his neighbors’ properties. But he said he doubted that there will be any immediate change in the neighborhood, which consists mostly of single-family homes Last April, the commissioners had reviewed and approved the recommendation of the planning commission to evaluate a sectional rezoning of the properties located to the west of Route 589 and north of Grays Corner Road. The proposed sectional rezoning at the time includes the Ocean Downs Casino and racetrack property, which would open that site to additional commercial uses.

The planning commission’s opposition arose from its consideration of five separate rezoning cases seeking to change the classification of properties in the area from E-1 Estate

31

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32 Ocean Pines PROGRESS

WORCESTER COUNTY

January 2019

Ocean Pines property values jump by 9.4 percent Maryland sees first statewide increase in assessments since 2008

By ROTA L. KNOTT Contributing Writer cean Pines property owners saw a significant increase in the value of their properties as part of the tri-annual reassessment of 696,947 residential and commercial properties across the state by the Maryland Department of Assessments and Taxation.

The 2019 notices, mailed to property owners in December, show a 9.4 percent increase in the full cash value of properties in Worcester County that were part of the reassessment, as compared to a statewide increase of 9.1 percent.

The “Group 1” properties, which include all of Ocean Pines and much of northern Worcester County, were last reassessed in 2016.

The overall statewide increase for Group 1 properties was 9.1 percent; this is the first reassessment since 2008 where all 23 counties and

O

Baltimore City posted an increase.

The properties in Group 1 are reassessed by the Department every three years and account for onethird of the more than two million real property accounts in the state.

This represents an average increase in value of 8.2 percent for all residential properties and 12.5 percent for all commercial properties since they were last assessed in 2016.

Worcester County saw a 6.2 percent increase in the full cash value of residential properties that were reassessed, from $3.51 billion in 2016 to $3.73 billion in 2019.

That is slightly lower than the statewide average of 8.2 percent, but more than Wicomico County’s 5.4 percent and Somerset County’s .8 percent increase. Prince George’s County saw the largest increase in residential property values at 19.2 percent.

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ter County experienced a significant 18.9 percent increase in the assessed full cash value, jumping from $1.15 billion to $1.37 billion.

The statewide average for commercial properties was just 12.5 percent.

Neighboring Wicomico County had a 30.9 percent increase, the largest in the state, while Somerset County saw a meager 1.7 percent increase in assessed value of commercial properties.

Across both residential and commercial property categories in Worcester County the full cash value increased from $4.67 billion to $5.1 billion, an average of 9.4 percent.

Prince George’s County had the highest average increase at 16.8 percent. Wicomico County properties averaged 11 percent and Somerset just .9 percent.

In Worcester County 83.09 percent, 11,882 of the 14,301 Group 1

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residential properties reassessed, experienced an increase in value, as did 69.13 percent of the total residential and commercial properties.

Statewide 87.47 percent of residential properties and 78.13 percent of total properties increased in value.

To help property owners facing increasing tax bills as a result of the reassessment, the state’s homeowners’ tax credit provides relief for eligible homeowners by setting a limit on the amount of property taxes that are owed based on their income.

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CAPTAIN’S COVE

January 2019 Ocean Pines PROGRESS

Draft request for broadband proposals near completion

By TOM STAUSS Publisher The consultant hired by the Captain’s Cove property owners association to prepare a request for proposals to provide broadband Internet services to the community should be ready with a draft by the end of January, General Manager Justin Wilder announced during a community meeting Jan. 10 in the Town Center meeting room.

KCI Noovis was awarded a contract late last year by the Cove’s board of directors to draft an RFP for the Cove that will ask bidders to provide a speed minimum of 25 megabytes per second per resident, and complete connectivity to all existing homes within 24 months.

Wilder told the assembled group of Cove residents during the Jan. 10 meeting that KCI Noovis has come

up with a design for a fiber optic network with a group of eight homes in a hub, creating a spider-web system design that should reduce chances for a system-wide failure.

In addition, he said the consultant has been in contact with CGC Note to obtain an easement to place equipment on developer-owned property, essential for any would-be fiber contractor to be able to build out a high speed Internet delivery system in the Cove.

KCI itself is expected to be one of the bidders that responds to an RFP once it is issued by the Cove POA. Wilder said that once KCI completes an RFP, he expects the board of directors will meet to approve it and authorize its release.

That could be sometime in February, but no date, place or time for a February meeting had been an-

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Evans said that operations can’t maintain a low 30-percent labor cost in the cooler months, but that the 38 percent achieved in the first quarter in relation to revenue generated is still very good. A 30 percent target is achievable in the peak months of July and August, he said.

Facilities report -- Facilities Manager Rob Girard updated residents on several projects, including

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nounced as this edition of the Progress went to press.

During the Jan. 10 community meeting, Wilder also announced that the roll-out of a new Cove Web site will occur in the March/April timeframe. A decision to design a new Web site was the result of functionality issues with the current site that surfaced last year.

As a temporary work-around for functionality issues, Wilder said that he is able to get into the site to make content changes using a separate Web address rather than the one users use to access the site.

In a follow-up email to the Progress, Wilder said the site upgrade “is free as part of AtHomeNet, the current provider being bought out

by Frontsteps. We will maintain the same $100 per month payment schedule, so the upgraded website

will be at no cost to CCGYC. The most notable improvement will be making the site mobile-friendly for phones and tablets.

Dinner theater touted -- Billy Casper Food and Beverage General Manager Phillip Evans reported on what he described as a very successful first quarter at the Marina Club, particularly in December with holiday banquets and special events. A three-day dinner theater event that sold 221 tickets at $27.50 per person was well received, he said. Plans are afoot for two dinner theaters this year. The first one is scheduled for May 3, 4 and 5 and a second one on dates to be determined in November.

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New Web site roll-out expected in March-April

33

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CAPTAIN’S COVE

January 2019

Dinner theater From Page 33

the replacement of a malfunctioning fire pump in the Marina Club. Bulkhead replacement will be taking place the week of Jan. 14 in an area where worm infestations have done a lot of damage. Girard also told residents of the first reported breaking and entering in Captain’s Cove in roughly two years; a television was

stolen but a lot of other items that could have been taken were not, he said.

Golf course upgrade -- Golf course superintendent Andrew Leach of Billy Casper Golf reported on the renovation of hole number three of the Cove golf course that will begin the week of Jan. 14. Three fairway bunkers on the left side of the hole will be removed and replaced with sod, and 600 cubic yards of fill dirt

will be dumped in the area of a pond that often overflows, frequently forcing play on the hole to be cart-pathonly.

Leach said hole number three is the most difficult on the Cove course.

With the removal of the three fairway bunkers, more golfers will be able to achieve par on the hole, he said. Building up the perimeter of the pond should prevent overflows in the future, making the hole more

playable and allowing golf carts to move more freely on the fairway.

During the days when the renovation work occurs, he said the hole would be closed for play or turned into a shortened temporary par three. He resisted a suggestion that the hole stay closed until the spring to allow the new sod to take root.

In any event there isn’t much play on the course during the winter months.

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OPINION

January 2019 Ocean Pines PROGRESS

35

NATE DOUTY’S RESPONSE TO TERMINATION The following is former Human Resources manager Nate Douty’s Jan. 11 letter to the Board of Directors regarding the circumstances under which General Manager John Bailey terminated Douty’s employment by the Ocean Pines Association. It has been lightly edited for reasons of space.

S

hocked, saddened, hurt ... I am sure these emotions are of no surprise. However, up until last Monday, they are feelings I had never experienced in my 62 years of life, or 41 years of professional business and HR [human resources] experience. Last Monday I received a two-sentence termination letter with zero explanation. GM Bailey would only verbally give a three-word verbal answer to my question of why: Board no confidence.

Such a reason demands an explanation. Having heard none thus far leads myself and others to speculation. I will outline my speculation shortly.

As to others, they are left to draw their own conclusions, speculative conclusions that are both hurtful and damaging to my reputation...

I am left ... based on the events of last Saturday, and the clear dissatisfaction expressed with me, that this has much to do with the Trendic matter. How ironic that the response to an action by a board member that may have been intended to railroad a Director, ended instead in railroading of the HR representative.

I did everything the Board specifically requested. The specific direction from Director Parks (as witnessed by Directors Tuttle and Horn) was to try to get a written statement from the independent contractor [who was present at the job site and who] I did contact and the contractor, while agreeing, never delivered ... I provided a summary of the contractor’s sentiments in an email to Director Parks.

Director Parks also requested that I relay to staff that they handled the matter appropriately and that the issue is being addressed at the board level. I followed through on this request.

A part-time HR employee is not at the board level. I was never provided a copy of B-08. Nor was I directed to make a recommendation or a report of my findings as related to B-08. In summary, it was never defined what success looked like in this matter.

Yes, I am a senior HR professional who has dealt with a lot of thorny issues in my career. My experience sent personal warning bells that dealing in internal board politics is a matter to tread lightly. To make all this more confusing, while privately hammering the HR investigation, the public statement regarding the Trendic matter was that an investigation by HR showed no wrong-doing. This is a pretty confident statement to make if you had “no confidence” and significant issues with the “shortcomings” of said investigation. Further proof of hypocrisy of this action.

I honestly believe that everything I did in my ten months was in an effort to make OPA better. It was important to do the business of HR and OPA better and smarter. I tried to think out of the box, and not fall into the trap that has captured so many: “that’s the way we have always done it.” ...

Supporting business partners dealing with tremendous levels of lost productivity (unquestionably occurring because liberal and out-of-step paid time-off policies permitted/encouraged it), while trying to improve the overall culture and employee morale. Culture is a huge obstacle for the OPA. While I think some small headway has been been made (has to be drive from the top down), I would characterize it as a culture of mediocrity, entitlement, and change resistance, keep your head down.

In fact, it would appear that others before me and now myself got devoured by the culture because it is so entrenched ...

To change it will take incredibly strong-minded people and board encouragement. The General Manager now has one less partner to make needed headway ...

I am aware that some board members and officers may be hearing from, listening to one or more internal “board whisperers.” I hope you are clear-eyed in at least questioning the potential self-serving motivation of these individuals.

Were some of these whisperings done to derail a potential whistle blower in HR? Your rash, politically motivated, ill-informed no confidence action [toward] a competent, business-focused HR change-agent has also just sent a powerful enforcement message to the entrenched, do-it-the-way-we-have-always-done-it culture. “That guy in HR that tried to change things here at OPA ... ha, ha we just showed him.”

You may be pleased that some employees are likely celebrating my departure, albeit for the wrong reasons. As I said previously, JB’s job just got tougher, if not impossible. Your reckless act of power increased the risks to OPA ...

While I was not trying to win a popularity contest, I also tried very hard to be a responsive, helpful, service-oriented resource for every employee ... I honestly thought that many on the board wanted exactly that ... bringing a more busi-

ness-like approach to the management of the association. Again, some of these changes or efforts to change did not endear me to employees. If you don’t want an HR to be a change-agent, then make that clear. In my mind that’s not in the best interests of OPA. Sadly, it had taken me these ten months to get my arms around the many tentacles in understanding the HR and business landscape at OPA. That experience is now lost. But perhaps you are looking more for a caretaker of the status quo, don’t rock the boat, we like the way they are, keep your head down, do administrative busy work. “No confidence.”

I want to return to return to the two-minute conversation in JB’s office. When he stated “Board no confidence” I asked him if he agreed. His response was “I had no choice.” So the board strong-armed the General Manager who the bylaws designate as chief personnel officer, to take this action, perhaps at the threat of his own job.

The chief personnel officer has discretion in the hiring and firing of staff. I am staff. The chief personnel officer had no discretion; rather he was “given no choice.”

As you no doubt know, there is no documentation, no conversations preceding this that my performance was in question, creating “no confidence.” Yet, instead of giving me the opportunity to address performance concerns, the choice was to exact the ultimate employment penalty possible. Is this action consistent with the bylaws of the organization? No confidence ... not by my manager!!

Further evidence that this board decision was rash is how poorly the dismissal was executed. I am called into the GM’s office during a ten-minute break of the B&F Committee. I’m told the Board has no confidence, therefore I am terminated immediately. I was judged to be a clear and present danger to the Association!

A letter is handed to me (my name misspelled). Clearly this was not that important in the day’s agenda ... no time to hear me, listen to me. No orderly transition, no hand-off (which, by the way, presents its own risk to the association). Classy and dignified ... not!

But wait, there’s more. Yes, staff needs to be informed. However, I am told the email states that I was terminated, let go. There is no need to say that. Amateur hour. The implication of the use of termination/let go in an email is misconduct, inappropriate behavior or whatever anyone can imagine. Since the reality of the situation is that this rash judgment was made for political reasons without cause, the public statement of termination is defamatory.

So in summary, where does that leave us? It is a legitimate question. First of all I invite you to fact check every statement made here. If am incorrect, I want to know.

I still care. I still want to work for OPA and make a difference. No one makes a difference by being like everyone else. One of the following is true: the board acted rashly, did not do its homework, and has now put the association at risk, or a disgruntled employee is venting. Hint: Disgruntled former employees don’t normally ask for their jobs back.

Should the board rescind its prior action, I am open to having the GM outline a performance plan to restore the board’s confidence. I would much rather be working for you and with you than against you. I enjoyed my co-workers. There are many good, hard-working and dedicated employees at OPA. I was, and always will be, proud of what was accomplished at OPA during the very short time of my tenure. OPA is in far less vulnerable position with better business practices that have either been implemented or were in the process of implementation. My biggest fear and regret is that the momentum and solid business progress will stop dead in its tracks, even regress to the prior “this is the way we always did it.” How sad.

It would be my sincere hope that you have a better picture of my character and my passion and pride to improve OPA. Perhaps you factored all of this into your rash, political motivated punishment. I suspect not. Frankly, I question your real commitment to OPA if this is how all of you define acting in the best interest of the association.

If anything, you exposed the association to more risks, a lower bar to measure success. There are real consequences in your decision to terminate me. Financial loss, loss of reputation. I will be known for one thing in this community, the HR guy OPA fired for ... fill in the blank speculative reasons.

It certainly taints my sense of pride, reputation, satisfaction and desire to live in this community. You have crafted a false narrative, not based on facts, a classic example of elected official political malfeasance and duty of care.

The record needs to be corrected. I await your response.

Nate Douty Ocean Pines

36 Ocean Pines PROGRESS

January 2019

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OPINION

January 2019 Ocean Pines PROGRESS 37

COMMENTARY The general manager’s blinkered reorganization plan

I

n Ocean Pines, nothing stays secret for long.

General Manager John Bailey tried to keep his proposed reorganization plan secret, for reasons that are now blindingly obvious. If you had come up with a plan as devoid of imagination as this one, paid for by raising assessments on members of the Ocean Pines Association, you’d want to keep it under wraps, too, lest your reputation for sound judgment suffer a blow. Indeed, you might hope that people would be in a hurry to forget you’d even come up with the blinkered scheme to begin with.

While no one has come forward to officially provide details of the proposed reorganization, the Progress has learned that the essence of the plan is not so much to reorganize the OPA as it is to lard it up with another layer of bureaucracy, an assistant general manager who would cost upwards of $100,000, with a nice benefits package to boot.

Ocean Pines has had assistant general managers before, with mixed results. It’s hardly a creative solution to much of anything. Its most salient point is that it tends to verify what is rather self-evident in Ocean Pines these days: The General Manager is struggling to handle the work load inherent in the job description he signed up for. It’s also apparent that Bailey is struggling to respond effectively to various instructions from

the Board of Directors that manifest in the form of motions adopted by majorities representing the will of those who pay Bailey’s salary and benefits.

His track record in responding in a timely, effective way to board directives is less than stellar.

Early this month, Director Esther Diller read him the riot act for failing to deliver a request for proposals from financial services firms to conduct the annual audit of OPA finances.

Ocean Pines is blessed with any number of competent department heads who could provide the sort of support and back-up to the general manager that an assistant GM might provide.

Bailey needs to make more effective use of the tools he has at hand, as opposed to hiring someone from the outside who he probably already knows -- a pre-vetted crony whose effect might be more us vs. them separation between the GM and upper management.

What’s needed in Ocean Pines is not more degrees of separation but more cohesion, an inclusiveness established and promoted at the top.

What is truly baffling about the ham-handed roll-out of this not-so-secret restructuring is Bailey’s explanation for why it needed to be secret.

Now that the cat’s out of the bag, so to speak, the absurdity of the explanation is manifestly evident.

Imposing fines is the wrong way to encourage DRs compliance

I

mposing fines as a way to encourage more timely compliance with the Declaration of Restrictions and the rules and regulations that have evolved in their wake is precisely the wrong way for the Ocean Pines Association to achieve what is a worthwhile objective.

The DRs, or restrictive covenants as they are sometimes called, constitute a contract between the OPA and its membership. They impose on both parties certain obligations and expectations.

When Ocean Pines and its governing homeowner association was created all those many decades ago, fines were not part of the relationship. To attempt to impose them now because a non-scientific survey of property owners suggests support for them is hardly sufficient reason to embark on a costly and, in the end, divisive campaign to change the fundamental nature of the relationship between property owners and their HOA. The founding documents of the OPA made it somewhat difficult but not impossible for the OPA to enforce its DRs and related rules and guidelines.

They’re designed to encourage voluntary compliance, and indeed most property owners will

do whatever’s necessary to comply with defects on their properties once advised by the OPA that such defects exist.

For those who thumb their noses at legitimate enforcement by the OPA’s Dept. of Compliance, Permits and Inspections, there are remedies that could be more effective if only they were employed more aggressively.

For properties that are poorly maintained, the OPA already has the authority to enter onto the properties to make the necessary fixes and bill the property owner for the cost of it. For non-payment, the OPA can file liens against the property and, worse case, foreclose.

Other lien-holders, of course, might be ahead of the OPA for payoffs in the event of a foreclosure sale, but that will also be true should recalcitrant property owners ignore fines after already ignoring requests for remedial action.

Part of what’s attractive to life in the Pines is that living here is not akin to living in a police state with an overbearing HOA nitpicking and imposing fines. Does anyone really think that rules and regs that now seem fairly innocuous couldn’t evolve into something far more pernicious with the power of fines behind them?

Be very careful what you wish for. -- Tom Stauss

The eye-roll-inducing rationale from Bailey is that the restructuring -- or more precisely, the hiring of an assistant general manager -- is a personnel matter because it would affect OPA employees.

Depressingly, the OPA president and secretary, drafters of meeting agendas and notices of executive sessions, went along with Bailey’s toxic insistence on secrecy and bogus rationale for it.

Clearly their interest in transparency is to give it lip service.

If indeed such a rationale is even remotely legitimate, then almost any matter that comes up for board consideration could be considered a “personnel issue” that affects employees to some degree or another.

The board might as well simply stop conducting public meetings.

For instance, since the budget affects employees, in direct and measurable ways, budget review meetings should be conducted in private by the flawed Bailey-Parks-Horn logic.

One positive in all of this is that Bailey sent this proposed restructuring up the proverbial flagpole and no one saluted, even the usual suspects on the board who seem reluctant to challenge him. The GM’s been sent back to the drawing board, presumably to come up with a restructuring that doesn’t add to the cost of administering Ocean Pines.

Merging departments might be part of a solution. Whatever Bailey comes up with, assuming he comes up with anything credible, sharing it with the community should be part of the rollout. Withholding key details delegitimizes the entire effort. -- Tom Stauss

The Ocean Pines Progress, a journal of news and commentary, is published monthly throughout the year. It is circulated in Ocean Pines, Berlin, Ocean City, and Captain’s Cove, Va. 127 Nottingham Lane Ocean Pines, MD 21811

PUBLISHER/EDITOR Tom Stauss tstauss1@mchsi.com 443-359-7527

Advertising Sales Frank Bottone 410-430-3660

CONTRIBUTING WRITER Rota Knott InkwellMedia@comcast.net 443-880-1348

38 Ocean Pines PROGRESS

OPINION

January 2019

Trendic complaint much ado about nothing

T

he new year started with a poorly handled complaint against Director Slobodan Trendic that suggested to some that Doug Parks, OPA’s putative chief executive officer, had designs (once again) of removing Trendic from the board.

The complaint was a trivial matter, elevated well beyond its importance for reasons that are unknown but which feed conspiracy theories in the absence of hard information.

It’s not a total information vacuum, mind you, but just enough of one to provide fertile ground for speculation.

What is the known is that the complaint from a member of the Public Works staff came into the OPA in the form of a letter.

What’s not known is if anyone in particular persuaded this staffer to write the letter? Did someone or someones put him up to it, or did the idea pop into his head one day, without prompting from elsewhere, a grievance immaculately conceived?

We’ll probably never know the answer to that question. But there are clues contained in former HR employee Nate Douty’s revelations, published elsewhere in this edition.

In the end, the board decided unanimously that the complaint couldn’t be verified. It involved Trendic asking the staffer about

er, and, inexplicably, Tuttle.

The meeting was one member An excursion through the curious cul-de-sacs An excursion through theby-ways curious and by-ways and cul-de-sacs short of a board meeting quorum. of Worcester County’s County’s most densely community.

Of course, it’s possible that not of Worcester mostpopulated densely populated community. every individual at the meeting reBy TOM STAUSS/

By TOM Publisher STAUSS/Publisher alized that Trendic’s name would be work being done (the laying of pipe, curred transpired in the way the published on the meeting agenda, reportedly) on a neighbor’s proper- (possibly manufactured) complaint, while the employee’s name (propty. Directors are fully within their once surfaced, was handled by those erly) was excluded. There are, after rights to seek information from staff, who surely knew better. all, only two individuals who are reDiscrete inquiries by the general sponsible for drafting meeting agenindeed board resolutions arguably encourage it. Not long ago after be- manager, the Public Works director, das -- Parks and Horn. coming a director, Steve Tuttle (OPA the HR manager, Parks and board Even so, attendance at a meeting vice-president) met with the OPA’s secretary Colette Horn (who are in in which discussion takes place on a human resources manager to edu- charge of assembling meeting agen- matter such as this taints the parcate himself about a new employee das) could and should have easily ticipants, like it or not. determined that the complaint did manual then in draft form.

No one there had the presence of Of course it was perfectly proper not rise to the level of a legitimate mind to head this unfortunate situand acceptable for Tuttle to try to grievance. ation off at the pass.

Instead, a meeting was convened get himself up to speed on an issue That failure gives rise to legitito decide how to elevate and legiti- mate speculation that the purpose of interest.

The line that can’t be crossed is mize a meritless complaint by tak- of bringing the matter to the board, instructing an employee on how to ing it to the board, presenting it in in a way designed to make Trena way, on a posted meeting agenda dic look bad, was not done with the do his job.

Neither Tuttle nor Trendic that mentioned Trendic by name, expectation that he necessarily decrossed the line into forbidden ter- that seemed mean-spirited and de- served to be tossed from the board. ritory when they made their inqui- signed to cause a maximum amount Or that the nature of the comries. Tuttle was seeking information of embarrassment to Trendic. plaint justified removal.

Attending the meeting, in which to help him with an issue he was Or that the votes would be there it apparently was decided that to make removal happen. dealing with as a director; Trendic by all accounts was doing a favor for this was a matter requiring board Rather the entire debacle seemed a neighbor by inquiring about the involvement and Trendic’s name to be designed to pressure Trendic nature of work being done on his should be published despite clear into resigning, to fill him with so neighbor’s property. He also knew a policies that require confidential- much disgust and loathing of the contractor who was working on site ity in matters such of these, were conspirators that he would find Parks, Horn, General Manager John serving on the board with such colwith OPA staffers.

The ethical violations that oc- Bailey, the human resources manag- leagues untenable.

It could have worked, as vindictive strategies sometimes do, but of course it didn’t, not this time at least.

Frank Daly and Esther Diller stepped up in defense of Trendic, in a way that should make all OPA members grateful that these individuals serve on the board, upholding standards of decency and ethical behavior while others failed to do so.

Daly posted a message on oceanpinesforum.com that made clear he was incensed with the discriminatory posting of Trendic’s name in the context of an unverified complaint.

If there was even a smidgen of a chance that Parks and Horn had a prayer of cobbling the votes needed to remove Trendic from the board, Daly’s courageous and timely statement eliminated it entirely.

At that point, it became a matter of how best to extricate the board from this embarrassing episode with a minimum of damage to the board’s reputation. An apology would have been the decent thing to do.

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