January 2025 Ocean Pines Progress

Viola proposes $18.9 million budget with modest lot assessment increases

Initial draft of spending plan would boost base assessment $25, $50 for owners of bulkheads maintained by the OPA

By TOM STAUSS Publisher

The preliminary draft budget for 202526 unveiled by General Manager John Viola in late December calls for a modest increase in assessments, $25 in the base assessment and $50 for property owners who live along canals with bulkheading maintained by the Ocean Pines Association.

If approved by the Board of Directors, the new base assessment would be $975 and $1,515 for most waterfront owners. It’s the first increase in several years and a break in the pattern of lower assessments

resulting from $1 million operating fund surpluses in recent years.

The proposed budget also is calling for increases in amenity membership dues.

Viola attributed the latter to inflationary pressures and statutory minimum wage requirements, among other factors.

He said staff surveyed other communities in the area and discovered that Ocean Pines was very favorably priced compared to others. That’s still the case even with higher membership dues, which range from about five percent in some categories to more than 20 percent in others. Ten per-

Board to vote Jan. 8 on new food and

beverage contract

A press release was issued on Jan. 4 announcing a special Board of Directors meeting on Wednesday, Jan. 8, for the purpose of voting on a new food and beverage contract. The Board will discuss the contract in closed session and then will reconvene in open session to vote on it.

General Manager John Viola told the Progress that the identity of the approved vendor would be officially disclosed during the Jan. 8 meeting. Sodel Concepts of Rehoboth Beach, De., has been reported as the prospective vendor with whom the OPA has been negotiating a contract.

But an informed source told the Progress that that the Matt Ortt Companies is still in the running for a new contract.

Lawyers for Sodel and the Ocean Pines Association are “butting heads hard” over terms of the contract, the source said, adding that Matt Ortt has been invited in to talk to Viola on Jan. 6 to discuss terms of a contract renewal.

The Progress will publish a special report after the Jan. 8 meeting. Find it on www.issuu. com/oceanpinesprogress.

~ Page 16

Proposed budget

From Page 1

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

The proposed budget calls for $15.78 million in department expenditures balanced by spending of an identical amount, $1.1999 million in capital spending on bulkhead repair and replacement, and $1.913 million in spending from the replacement and new capital reserves.

u cent is typical.

compared to the $18.514 million approved in February of last year for the current fiscal year. Viola and Director of Finance/Controller Steve Phillips are estimating that this year’s spending will come in at $19.159 million, so the proposed 2025-26 budget actually anticipates less spending next year than is estimated for this year.

The year-over-year increase in the budget works out to be about 2 percent.

ASSESSMENT RATES

The total is $18.897 million,

This year’s budget process is

ASSESSMENT RATES

FISCAL YEAR 2025-26

FISCAL YEAR 2025-26 PROPOSED ASSESSMENT RATES Fiscal Year 2025-26

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DEPARTMENTAL SUMMARY

Proposed Budget 2025-26

* Budget for Food & Beverage is subject to change over the next week. Included are the parameters along with midpoint.

2,265,0082,494,4973,156,038

and Beverage was evaluated based on the following criteria:

ESTIMATE/BUDGET COMPARISON

ESTIMATE 2024-25/2025-26 BUDGET COMPARISON

24-25 ESTIMATE VS. 25-26 BUDGET

Proposed budget

From Page 3

made more complicated because when it was drafted, Viola didn’t have a food and beverage contract on hand with which to finalize proposed budgets for the OPA’s three food and beverage venues.

Once a new contract is presented to and voted on the Board, Viola will be able to present an amended version of the budget for consideration, possibly incoporating specific proposals from the approved vendor.

In a Dec. 30 phone interview with the Progress, Viola said he was hoping to have an approved contract to work with, perhaps as soon as Friday, Jan. 3. That didn’t happen.

Because of the unsettled status of management of the three venues, the usual supporting departmental summaries were omitted from the initial budget proposal.

Nonetheless, the initial budget projected $185,474 in net operations at the Yacht Club, $133,010 at the Clubhouse Grille, and $243,831 at the Beach Club.

EXPENDITURES

In lieu of detailed summary sheets for these three departments, the draft budget included a compact work sheet containing two possible performance scenarios for them. One scenario, estimating $4.7 million in gross revenues for all three, showed net revenues of $3,464,546 and operating costs of $2,902,231, for a combined net of $562,315.

This scenario matches the projected net in the budget summary, titled Estimate/Budget Comparison [shown at left].

Another scenario contained in the worksheet proposed gross revenues for these venues of $6 million, producing a net of $711,441. Viola and Phillips chose the more conservative of the two scenarios.

Once a new contract is in place, it’s possible that neither scenario will survive the budget review process. Viola has said that revisions are possible.

The draft budget also projected spending out of the OPA’s various reserve funds for next year. It projected a beginning reserve balance of $6.379 million on May 1, $3.876 million in assessment contributions, interest, casino funds and surplus transfers, and expenditures of $3,113 million, with an estimated balance in the reserves on April 30, 2026, of $7.142 million. The draft budget calls for $1.913 million in non-bulkhead capital spending [see story in this edition for details.]

More budget details emerge during committee review

Viola explains reasons for proposed assessment increase

By TOM STAUSS Publisher

The Jan. 2 review of the proposed 2025-26 Ocean Pines Association budget by the Budget and Finance Advisory Committee revealed key details about the document that were not evident in the package released on the OPA Website in late December.

It’s always that way.

In a brief summary of the budget at the beginning of the Jan. 2 review, General Manager John Viola explained the reasons for the proposed $25 increase in the base assessment and $50 increase in the waterfront assessment.

Statutory increases in the minimum wage, increased insurance premiums, and public safety expenditures were cited. Later in the meeting, Viola disclosed that the proposed budget envisions a three percent increase in payroll cost, which has to be a contributing factor in the proposed assessment increases.

“Were it not for [operational] efficiencies, the assessment increase would have been higher,” he said.

Viola also acknowledged that the food and bev-

erage budget might be adjusted after the Board of Directors approves a new food and beverage management contract the week of Jan. 5. He later told the Progress that a special meeting of the Board will be scheduled at 2 p.m. on Wednesay, Jan. 8, during which the Board will be asked to vote on a new contract.

If the new contract is approved, Viola said that the identity of the new vendor will be announced in public.

Details of the new contract could affect revenue estimates for the coming year and a projected bottom lines for the Yacht Club, Clubhouse Grille and Beach Club, hed told the committee Sodel Concepts of Rehoboth Beach has been reported as the front-runner for the new contract, with the Matt Ortt Companies in the running if a contract with Sodel isn’t finalized. Touch of Italy might still be in the running, according to an informed source.

Although the draft budget proposes an assessment increase, it transfers $560,000 of the prior year’s surplus - Viola prefers the term favorables -- to the operating fund from retained earnings. Although in recent years that transfer result-

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ed in an actual reduction in the assessment for property owners, it doesn’t have that effect in 2025-26. Without the transfer, however, the proposed assessment increase would have been higher, so prior year surpluses or “favorables” still benefit OPA members.

In response to a question from Committee Chair Doug Parks, Viola said that there are no proposed changes in credit card convenience fees charged by the OPA on those who use credit cards to pay for OPA assessments or amenity memberships.

In a response to another Parks’ question, Viola said a comprehensive study by DMA Reserves will commence in April of 2026.

Parks pressed Viola on whether the general manager is “happy” with the NorthStar management software and relations with the vendor.

“It’s a process,” he responded. “They’re moving in the right direction.” He said NorthStar is “interfacing” with software in the golf pro shop and that he is looking forward to the day when NorthStar is fully integrated with food and beverage operations.

In other comments during the meeting: • Viola said that the marketing and public re-

Doug Parks

From Page 5

lations department is netting sponsorship revenue for its series of podcasts

• Director of Business Operations Linda Martin that payroll costs in the Compliance, Permits and Inspections Department are up 25 percent, resulting from the hiring of an administrative assistant and a new inspector. Similarly, the Public Works Department’s expenses are up because the department is fully staffed.

• Viola said it’s a challenge trying to locate staging areas for bulkhead replacement because of complaints from residents. “There’s a cost when we have to move the barges,” he said, but that efforts are made to keep the staging area as clean as possible. The intent is to minimize inconvenience to residents by having bulkhead replacement complete by Memorial Day.

• Parks and Recreation Director Debbie Donahue said her department is trying to improve summer camp finances by keeping more of the deposits paid by those who cancel some or all of the weeks reserved.

• After Donahue said that the OPA has outgrown the Community Center and needs more space for department activities, Viola said that once the new Southside firehouse is built and operational, he’ll turn his attention to ideas for obtaining more space for the department.

• While Racquet Sports fees would increase in the range of 20 percent, Director of Finance Steve Phillips mentioned that when compared to Sea Colony in Bethany Beach, De., and the Town of Ocean City, Ocean Pines still charges less.

• Martin disclosed that the OPA is seeking a liquor license for the Swim and Racquet Club snackbar operation and Viola said that “we’ve been told that we can get it.”

• Viola said that it appears that all lifeguard positions will be filled next year.

• He also said that a bathroom attendant will continue to be employed at the Beach Club.

• Director of Golf Bob Beckelman said that greens and cart fees for those who don’t own property or live in Ocean Pines will be increased next year, to within $100 of fees charged by other local golf courses. These fees for Ocean Pines Association members will not be increased, however.

• Chief of Police Tim Robinson told the Board his department is almost fully staffed, up to 12 officers from the seven on board when he was hired as the new chief. The goal is 14, he said, adding that there’s a sergeant position open and that it could be filled by someone already employed by the department.

He said there’s one police vehicle in the capital budget and that overtime costs will be coming down in the new fiscal year.

He told the Board that the Ocean Pines police department is a respected entity. He also said that he’s most proud of the grant money he’s been able

to bring to Ocean Pines, the most recent example funds used to buy tasers for the department.

• Ocean Pines Volunteer Fire Department President Joe Enste explained the proposed OPVFD budget for next year that calls for an OPA contribution of $1.12 million, about $150,000 more than this year.

Before adjourning the meeting, Parks said one issue to be resolved is whether to increase interest revenue estimates in the proposed budget. Another issue is whether there should be a revision to credit card convenience fees charged by the OPA.

Pancakes for breakfast

The Ocean Pines Department of Parks and Recreation held its annual holiday pancake breakfast Dec. 7. The Kiwanis Club of Greater Ocean PinesOcean City cooked the pancakes, sausages and scrambled eggs, just like they do for its three annual pancake breakfasts. Pictured are the Kiwanis Club kitchen team members, left to right, Tom Flanagan, Ed Ahlquist, Candy Foreman and Dave Landis.

Proposed 2025-26 budget increases dues for amenity memberships

MEMBERSHIP DUES

PROPOSED MEMBERSHIP DUES - Fiscal Year 2025-26

By TOM STAUSS Publisher

Ocean Pines Association members who purchase memberships in various amenities -- golf course, swimming, racquet sports and beach parking or rent boat slips at the Yacht Club -- will be facing increases in their dues if the Board of Directors approve the package of proposed increases contained in the preliminary draft budget for 2025-26, the fiscal year that begins May 1.

There isn’t a uniform percentage increase proposed across all the amenities.

Proposed golf membership increases range from 2.86 to 5.88 percent, aquatics memberships hover around 10 percent, while proposed racquet sport increases range from 13.64 percent to 25 percent.

Proposed beach parking membership percentage increases hover around 10 percent, while Yacht Club boat slip fees would increase in a range from 7.91 to 10.6 percent.

Daily user fees at Ocean Pines’ five swimming pools would increase modestly, as would those at the racquet sports complex.

No fee increases are proposed in annual golf cart packages or daily greens or cart fees at the golf course for members of the Ocean Pines Association or residents of Ocean Pines.

Family golf memberships would increase from the current $2,625 to $2,700 (2.86 percent), family after noon memberships would increase from u

$1,700 to $1,750 (2.94 percent), individual memberships would increase from $1,700 to $1,800 (5.88 percent), and individual after noon memberships would increase from $1,000 to $1,050 (5 percent)

Cart packages for families would remain at $2,200 and $1,500 for individuals.

In the category of family aquatics memberships, summer-only dues would increase from $350 to $385, winter-only dues would increase from $500 to $550, and yearly would increase from $630 to $695.

For couples, summer-only dues would increase from $310 to $340, winter-only dues would increase from $450 to $495, and yearly from $575 to $635.

For individuals, summer-only aquatics memberships would increase from $210 to $230, winter-only dues from $325 to $$360, and yearly from $405 to $445.

For non-members, daily user fees at the pools would increase from $10 to $12, from $8 to $10 for children 5-7.

For non-residents, the daily fee would increase from $15 to $17, children from $13 to $15.

Multi-sport racquet sport memberships would increase $690 to $800 for families (15.94 percent) and from $440 to $500 for individuals (13.64 percent).

Pickleball memberships for families would increase from $325 to $404 (24.62 percent) and from $200 to $250 for individuals (25 percent).

Proposed platform tennis memberships for families and individuals are the same as for pickleball.

Tennis memberships would increase from $465 to $550 for families (18.3 percent), while the family after 12 category would be eliminated.

USER FEES

BOAT SLIP RATES*

BOAT SLIP RATES*

FISCAL YEAR 2025-26

FISCAL YEAR 2025-26

BOAT SLIP RATES*

PROPOSED BOAT SLIPS RATES Fiscal Year 2025-26

FISCAL YEAR 2025-26

* Non-property owners, if slips become available will be charged an additional $100 per season, or an additional 10% of the rate, whichever is higher.

* Non-property owners, if slips become available will be charged an additional $100 per season, or an additional 10% of the rate, whichever is higher.

* Non-property owners, if slips become available will be charged an additional $100 per season, or an additional 10% of the rate, whichever is higher.

From Page 8

Individual tennis memberships would increase from $295 to $350 (18.64 percent increase), while here, too, the individual after 12 category would be eliminated.

rates would increase from $16 to $20 for tennis, platform tennis from $9 to $11, with the pickleball rate remaining unchanged at $11.

Beach parking fees would increase from $222 to $245 for those who don’t purchase other amenity memberships.

We Now Have Panini Sandwiches

11304 Manklin Creek Road, South Gate Ocean Pines (Manklin Creek & Ocean Parkway)

BREAKFAST SANDWICHES

Served on Bagel, Roll or Bread (White, Wheat or Rye Croissant or a Wrap

Egg & Cheese ..................................…

$5.55

Meat, Egg & Cheese …............................ $6.95

Your choice of Bacon, Sausage, Ham, Turkey Sausage,Ham, Taylor Ham or Morning Star Vegetarian Sausage

PLATTERS & OMELETS

Two Eggs Any Way with Meat ............. $5.95

Your choice of Bacon, Sausage, Ham, Turkey Sausage,Ham, Taylor Ham or Morning Star Vegetarian Sausage

Cheese Omelet .................................. $7.00

Veggie Omelet …................................... $7.50

(green peppers, onions, tomatoes, carrots, celery)

Western Omelet …................................ $8.00

(ham, cheddar, green pepper, red onions)

Quiche ................................................... $4.00

BAGELS WITH ...

Bagel with Butter ...….......................... $2.50

Bagel with Cream Cheese ….............. $3.95

Bagel with Cream Cheese and Jelly ..... $4.25

Bagel with Peanut Butter and Jelly ..... $5.25

Cinnamon Crunch Bagel

With Butter $3 With Cream Cheese $4.45

Bagel with Nova Cream Cheese ......…... $6.95

Bagel with Sliced Nova or Lox Salmon … $10.95

LUNCH SPECIALTIES

Homemade Soup Small ........................ $3.25

Chicken Pot Pie ...................................… $5.49

Pizza Bagel ~ Plain $5.75 - Pepperoni $6.50

Bagel Dog ............................................. $5.25

Daily OPA member drop-in rates for tennis would increase from $11 to $15, while pickleball and platform tennis would remain unchanged at $8.

For non-OPA members, drop-in

For those with other memberships, the rate would increase from $145 to $160.

Weekly memberships would increase from $155 to $170 and the daily membership would increase from $47 to $50.

Marina boat slip rental fees would also increase if the proposed budget is adopted as is by the Board.

At the Yacht Club, slip fees for boats under 26 feet would increase from $2,170 to $2400 (10.6 percent), from $2,950 for $3,250 for boats from 26 to to under 40 feet (10.17 percent), and from $4,170 to $4,500 for boats over 40 feet and live-aboards (7.91 percent).

At the Swim and Racquet Club Marina, boat slip fees would increase from $1,570 to $1,730 (10.19 percent).

New at the Swim and Racquet Club are jet ski rental slips, priced at $1,000 for OPA members.

LUNCH SANDWICHES

Served on Bagel, Roll, Sliced Bread, Croissant or a Wrap

Includes a Side of Macaroni Salad

Ham …………............................….…….

Turkey ………...................................…..

Roast Beef …..................................……

$9.45

$9.45

$10.45

Cappicola …….................................….. $9.45

Genoa Salami …................................… $9.45

Italian Combo …...........................…… $10.45

(Roast Beef, Cappicola, Salami and Provolone)

Roast Beef & Turkey Combo ..............….. $10.45

Liverwurst …...............................………

$7.95

Bologna ................................................. $7.95

Chicken Salad ........................................ $9.95

Egg Salad ….............................………… $8.95

Tuna Salad ………..........................…... $10.25

Whitefish Salad ….................………… $10.25

Grilled Cheese ……........................……. $7.25

Add to any sandwich Cheese $1 • Avacado $.50

FRESH PASTRIES

Scone (blueberry, cranberry or raisin) ..$3.55

Lemon/Pecan Bar …….....................…… $2.55

Muffin …….........................……………. $3.55

Croissant Pastry/Danish ……….............. $3.55 Cinnamon Bun ..........................…. $3.55 Éclair ………..................................... $3.95

Big PB Cup/Chocolate Chip Cookie ...... $2.50

Banana Bread ....................................... $3.25

Black and White Cookie (seasonal) ............ $3.65

Mrs. Peggy’s Sugar Cookies Small $2 Large $3

Two-pack Cookies ......................... $2.35

Chocolate Chip, Oatmeal, Double Chocolate, Sugar, M&M

Cheesecake ~ Small $2 Large $3.50 Plain, Cherry, Blueberry

Linzer Tart ~ Small $2 Large $2.50

Irish Soda Bread .. Slice $2.00 Loaf $6.50

Dog Biscuits .................................. $2.50

FRESH BAKED BAGLES

Plain • Cinnamon Raisin • Sesame

Onion • French Toast • Garlic Honey Wheat • Asiago • Everything Everything Wheat • Rye Marble • Egg • Pumpernickel Poppy • Berry

Sundried Tomato • Cinnamon Crunch

1 Flagel (weekends only) .............. $1.40

Bagel ………..............................…. $1.40

Half Dozen Bagels …..........……… $8.00

Dozen Bagels …............….......… $14.50

Cinnamon Crunch Bagel ….....….. $1.90

N.Y. Kaiser Roll ……............….. 75 cents

Portuguese Roll ……........…….. 75 cents

Knot Roll ................................... 75 cents

WHIPPED CREAM CHEESES

Plain • Light • Veggie • Light Veggie

Walnut Raisin • Almond • Scallion

Scallion & Tomato • Chive • Olive

Spinach & Cheese • Nova Spread

Seasonal: Crab, Pumpkin, Strawberry

Plain Cream Cheese 1 lb. …......… $6.40

Flavored Cream Cheese 1 lb. ...... $7.90

Nova Cream Cheese 1 lb …………$10.90

All prices subject to change

11304 Manklin Creek Road, South Gate Ocean Pines (Manklin Creek Road & Ocean Parkway)

Ocean Pines Association Director of Golf Bob Beckelman in a presentation to the Budget and Finance Committee Jan. 2 disclosed that he was proposing significant increases in greens fees for non-OPA members or residents of Ocean Pines.

Outside play and package play through organizations such as Pam’s Golf is a significant source of revenue for the Ocean Pines golf operation.

Beckelman said that even with proposed changes in greens fees for outside play, rates in Ocean Pines for this contingent of golfers would be less than at other area golf courses, such as River Run or the golf course on Route 611 owned by the Town of Ocean City.

For example, weekend greens fees for outside play during the spring months top out at $115, $95 for play during the week.

During the summer months, that would drop down slightly to $90 and $80 respectively, less for play after noon. Greens fees fluctuate for outside play depending on the time of year. dropping down to $45 during the winter.

In addition to greens fees, outside golfers pay for cart fees, which are the same for all golfers regardless of category, $25 for 18 holes and $15 for nine holes.

Golf course irrigation system leads list of spending from replacement

Proposed capital spending in draft 2025-25 budget projected at $3.913 million

By TOM STAUSS Publihser

Capital expenditures in the proposed draft budget for 202526 unveiled after Christmas shows relatively modest spending, led by $900,000 on the continuing rebuild of the golf course irrigation system.

The proposed capital budget includes $1,226,040 in outlays from the replacement reserve, $87,595 in new capital spending, $350,000 from the roads reserve, and $250,000 on drainage.

Bulkhead repair and replacement is estimated at a cost of $1,199,901, with this outlay from a reserve earmarked for that purpose. This re-

serve is funded primarily from the so-called “waterfront differential” paid over and above the basde lot assessment by owners of canalfront properties in Ocean Pines.

With bulkhead spending included, the Ocean Pines Association’s proposed capital budget is $3.913 million.

Golf maintenance is the department with the highest amount of proposed spending from the replacement reserve, which is replenished annually with funds collected from lot assessments. The replacement reserve is the fund that historically carries the largest balance.

In addition to $900,000 in golf course irrigation system improve-

ments, the proposed capital budget for this department includes $55,000 for a groundmaster 3500D mower, $58,000 for a John Deere 2500 E-Cut mower, $40,000 for repair of a bridge over a canal on hole number four, and $11,000 for paving the golf maintenance yard.

Total proposed capital spending for golf is $1,064,000.

Racquet sports is the department with the second highest total of cap-

ital spending, at $65,850.

Proposed capital items in this department is $16,0000 each for pickleball and tennis court maintenance, $9,500 for patio furniture, and $2,350 for bench replacement, all from the replacement reserve. The proposed budget calls for $22,000 in new capital reserve spending for a pickleball court shade structure.

Also out of the new capital reserve is $65,595 for a new Ford police department interceptor vehicle, not previously part of the department’s vehicle inventory.

There’s $59,840 in proposed capital spending for Aquatics, all out of the replacement reserve.

Items proposed include $4,500 for a cat controller; $6,000 for a pool handicap chair, to be kept in storage in the event an existing chair goes bad; $3,500 for an inverter; $5,500

Yacht Club projected to lose $17,000 this year

First time this premier food and beverage amenity would generate red ink in the Matt Ortt Companies era

DEPARTMENTAL SUMMARY

Estimate for 2024-25 Fiscal Year Ending April 30, 2025

By TOM STAUSS Publisher

As the Ocean Pines Association kicked into high budget season in late December and January, one interesting number that emerged is the staff estimate for the operating fund positive variance for the current fiscal year. It requires General Manager John Viola and Controller/Director of Finance

Steve Phillips to look into a crystal ball and come up with an estimate for April 30, roughly four months into the future from when the draft budget is unveiled.

The duo is projecting a $673,579 operating fund positive variance for this year, on projected revenue of $15.679 million and expenses of $15.005 million.

The estimated operating surplus is well off that of recent years, when it topped off in excess of $1 million.

Perhaps the most notable estimate reported on the scheduled called “Departmental SummaryEstimate for Year Ending 4/30/25” is a projected loss at the Yacht Club, the first time this would have occurred in the seven-year tenure of the Matt Ortt Companies managing this venue for the OPA.

It’s not a huge loss -- $16,975 -but it’s a number that will probably come up a shock to OPA members who have come to expect that this amenity will generate a profit.

The more startling number is the estimated negative variance to budget. The Yacht Club is projected to miss its budget by $177,025.

A budget miss of this magnitude has not been achieved since the

days of former acting general manager Brett Hill prior to MOC taking over management of the Yacht Club about seven years ago.

The other two venues managed by MOC are projected to continue recent history of generating sizable operating surpluses.

Viola and Phillips estimate that the Beach Club will end the fiscal year with a net of $247,177 and the Clubhoue Grille with a net of $75,640.

The Beach Club is projected to exceed budget by $77,0006 and the Clubhouse Grille by $27,915, in the aggregate well short of the Yacht Club’s negative variance.

Viola and Phillips are projecting golf operations to continue their stellar financial performance for the remainder of the fiscal year, with a net operating surplus of $484,917, ahead of budget by $195,560.

They’re estimating that most amenity departments will end the year in the black.

The exceptions in addition to the Yacht Club are Aquatics (-$39,479) and tennis (-$61,674). But they expect Aquatics will out-perform its budget for the year, with tennis missing by about $4500.

Viola and Phillips expect that departments funded primarily by the lot assessment will for the most part perform better than budget.

Parks and Recreation is the exception, with a projected negative variance of $23,925.

Public Works is projected to be the top performer relative to budget, with a projected positive variance of $224,138

Board budget review set for Jan. 8 and 9

The Board of Directors is scheduled for two days of reviewing the proposed Ocean Pines Association budget for 2025-26 unveiled by General Manager John Viola in late December.

The Jan. 8 and 9 review is a normal part of the process leading up to budget approval in February. The review sessions will be live streamed and will be open for the OPA membership to attend in person.

The Budget and Finance Committee’s review took place Jan. 2 and 3.

The capital budget also includes $53,150 to replace a Ford Ranger used in the Public Works Department and $5,200 for the Parks and Recreation Department to replace the baseball scoreboard, both items to be paid out of the replacement reserve.

Board to meet in special meeting to ratify food and beverage contract

Sodel Concepts might be the front-runner, but Matt Ortt might still be in the running

By TOM STAUSS Publisher

As 2024 drew to a close, there was no word that the Ocean Pines Association and Sodel Concepts of Rehoboth Beach, De., had finalized a contract for the management of the Ocean Pines’ three food and beverage venues.

An informed source told the Progress on Jan. 4 that it’s not a done deal, although “it’s Sodel’s to lose.”

The source said that Sodel’s attorneys are seeking some changes in what the company submitted originally.

“It was stone cold done deal, but the attorneys are butting heads hard,” the source said. The OPA’s attorney is Bruce Bright.

The source didn’t know the issues over which the attorneys are at odds.

The source also said that General Manager John Viola has asked Matt Ortt of the Matt Ortt Companies to come in on Monday, Jan. 6, to discuss possible changes in MOC’s proposal.

Viola is said to want changes that are more favorable to the OPA, perhaps with an even 50-50 split of profits generated by the three venues.

The source said it isn’t clear that Ortt will be will receptive to changes in the current contract. There was an event at the Yacht Club in the new year when Ortt reportedly said good-bye to staff.

Another informed source suggested that Touch of Italy, the third vendor to submit a management proposal, remains in the running.

If the Sodel contract isn’t finalized or the MOC contract modified in a way acceptable to Viola, that might open the possibility that Touch of Italy will become the OPA’s new food and beverage contractor.

The OPA issued a press release on Jan. 4 announcing a special Board of Directors meeting at 2 p.m. on Wednesday, Jan. 8.

According to the published agenda, the Board will vote to discuss the contract in a closed session and

then will reconvene in open session to vote on it.

Viola told the Progress that the identity of the approved vendor would be officially disclosed during the Jan. 8 meeting, ending weeks of keeping details of the contract under wraps.

Viola has declined to identify Sodel as the prospective vendor with whom the OPA has been negotiating a contract.

Members of the Board have also been tight-lipped.

There is circumstantial evidence that it’s Sodel with whom the OPA has been negotiating to complete a contract, despite the fact that neither Viola nor anyone on the Board has confirmed it.

A source close to Matt Ortt said in late December that no one from the OPA had been in contact with Ortt since the Board of Directors in a special meeting Nov. 25 authorized Viola to begin negotiations for a new five-year food and beverage contract, without announcing the contractor with whom negotiations were to take place.

If MOC had been the contractor that had been selected for negotia-

tions, it might seem unlikely that there would have been no contact between the OPA and Ortt after contract negotiations were authorized.

But another informed source told the Progress that it’s possible no contact occurred because the terms of a contract renewal were spelled out in the proposal submitted by MOC.

MOC also would have submitted a proposal with hard numbers for banquets next year, based on bookings to date. The source said that might be a factor in the Board deciding to stay with MOC, although Sodel has lots of experience in the banquet business, too.

The lack of a public announcement or confirmation that a contract with Sodel is imminent is consistent with Viola’s handling of the controlled process that will lead to a new contract to manage the Ocean Pines Association’s three food and beverage venues, the Yacht Club, the Clubhouse Grille and Ocean Pines Beach Club in Ocean City.

The new contract will begin at the start of the 2025-26 fiscal year on May 1 of this year.

Another indicator that a new contractor is possible is contained in the

draft budget for 2025-26 unveiled by Viola after Christmas.

There was no supporting documentation included in the draft for the three venues, an omission that suggests that it will be supplied once a new contract is ratified and its terms reflected in a budget proposal for the three venues.

At the Budget and Finance Advisory Committee’s Jan. 2 budget review meeting, Viola said there might be adjustments to the budgets of the three venues once a new contract is finalized.

There is a departmental summary schedule for the OPA included in the draft budget that shows the Yacht Club netting $185,474 next year, the Clubhouse Grille $133,010 and the Beach Club $243,831.

Normally, supporting documentation would be included that details revenue and expenses, but that’s not included in the budget draft.

A day or so after the draft was posted on the OPA Website, there was an update showing work sheets for all three departments, limited to data about operations this year.

There still was nothing posted detailing revenues and expenses for these three venues for 2025-26, suggesting a fluid situation related to a new food and beverage contract.

As exclusively reported by the Progress in its November, 2024, edition, the three area food and beverage contractors who submitted proposals in response to a request for proposals were MOC; Sodel Concepts, owners or lessee operators of more than 35 restaurants in Ocean City and in Sussex County beach communities from Fenwick Island to

Fishing tournament winners

The Ocean Pines Anglers Club presented the awards for the 2024 Walt Boge Memorial Fishing Tournament at its December meeting. Winners, left to right, included Budd Heim, bluefish, 33 1/2”; Jill Thompson, croaker, 11”; Frank Tortella, tautog, 16 1/2”; Ken Thompson, bluefin tuna, 69”; and Ted Glick, fresh water trout, 13”. Other award winners included Judy Schaible, flounder, 24 1/8”, sea bass, 19 1/2”; Walt Klein, large mouth bass, 15”; and Greg Donahue, spot, 9 1/4”.

Board approves accelerated golf course irrigation spending

By ROTA L. KNOTT

Contributing Writer

WViola proposes moving ahead on holes two and three

ith Phase I of a golf course irrigation project under way, the Ocean Pines Association is already accelerating the pace of the work. While the contractor is on site doing irrigation work at the pump station, 1st and 9th holes, and driving range, the OPA wants to expand the project to include holes 2 and 3, General Manager John Viola said.

During the Dec. 21 Board of Directors meeting, Viola said he is proposing to move forward with emergency replacement of sprinkler heads and main pipelines for the two fairway greens. He said the OPA will use the same vendor for the expanded scope of work because crews are already on site.

Justin Hartshorne, golf course

superintendent, said the irrigation renovation project is “very exciting.” He called the irrigation system the single most important tool that his department uses to maintain the golf course.

Since the contractor is on site, he said he wants to move forward with emergency replacement of irrigation lines on holes 2 and 3. “It is vitally important for some of those areas,” he said, adding that the project will still be on schedule for completion prior to the spring golf package season.

Director John Latham asked if it is fair to assume that since the contractors are already working in Ocean Pines that it is more efficient to do holes 2 and 3 now rather than later. “There’s probably some synergies there that we can kind of achieve,” he said.

Hartshorne agreed, saying because the contractor has mobilized a lot of equipment to the OPA’s golf course, the project will just be an extension of what they are already doing. That will save the OPA money on the project by not having to bring back the contractor at a later date.

Phase 1 of the golf course irrigation project started in September and is scheduled for completion by February or March 2025. Viola said Phase 1 of the work at the pumping station went well and now installation of sprinkler heads and connection to the main pipes are under way.

Hartshorne concurred, saying the contractors is “buttoning up some things around the building” and installing some irrigation heads in the ground. All the main irrigation lines have been installed. He said the contractor will test the system in the spring to “make sure everything is up and running properly” prior to the start of the golf season.

At a cost of nearly $1 million, the first phase of major irrigation improvements are being made after 50 years of use. Viola said he believes the replacement pipe will last at least 75 to 100 years.

During the meeting the Board also approved a $40,000 contract with Fisher Marine Construction for replacement of the golf course bridge re-decking on the 4th fairway over the canal. The project includes replacing only the top deck boards, Viola said.

Viola noted that the project was

included in the OPA’s replacement reserve program for 2025-26 at an anticipated cost of $189,307.94. But that included replacement of the underlying piling structure as well. He said contractor Fisher Marine evaluated the structure and determined that “everything looks good.” So, the OPA is proceeding only with replacement of the bridge deck. “This will extend life by years,” he said.

Director Steve Jacobs asked whether the fencing along the sides of the bridge will be replaced.

“The fencing’s pretty bad,” Viola said, adding that it will be replaced. He said it will need to be a minimum of 40 inches high.

Lewes, De., as well as a beachfront wedding venue in Rehoboth Beach; and Touch of Italy, with restaurants in Ocean City at 66th Street and in Lewes, De.

A source, who was in contact with an individual who attended a threehour-plus Nov. 21 special meeting of the Board in which Viola presented detailed information about the competing bids, said it was clear to the directors that the vendor preferred by Viola and the management team was Sodel.

The source said after hearing details of each of the proposals, the directors agreed that the Sodel proposal was stronger and of greater financial benefit to Ocean Pines than the other two.

OPA President Stuart Lakernick said after the November meeting that the Board was not provided with the identity of the entity that submitted the preferred proposal to the OPA.

He has not deviated from that assertion since then.

Chief Robinson announces grant for taser purchases

Board approves $63,000 expenditure

By ROTA L. KNOTT Contributing Writer

Agrant from the Governor’s Office of Crime Prevention and Policy is funding the purchase of 12 tasers for the Ocean Pines Police Department. The tasers will provide OPPD officerss with a less lethal method of subduing a person while minimizing risk of injury.

Police Chief Tim Robinson presented the $63,371 purchase of 12 tasers and associated hardware, software and training for approval during the Dec. 21 Board of Directors meeting. The contract was awarded to the firm of Axon Enterprises, Inc, the preferred vendor by Maryland Law Enforcement and the current supplier of the OPPD’s body cameras, he said.

Robinson said the cost of the equipment will be fully reimbursed by the fiscal year 2025 Edward J. Byre Memorial Justice Assistance Grant. The Ocean Pines “Less Lethal Program” will equip officers with new equipment that “will avoid unnecessary fatal police-citizen encounters while also elevating the image of our agency to the ranks of what is expected in policing in 2024.”

Robinson said one of the best tools that law enforcement officer can have is a taser. He said tasers started to be used by police departments about 15 years ago, and now most police departments in the region have them.

“It’s a wonderful intermediary tool to prevent from having to resort to deadly force,” Robinson said, adding “It’s something that I think we

desperately need as an option in our toolbox.”

However, he said, tasers are not inexpensive. He said the cost is more than $60,000 to equip the OPPD but the state of Maryland is going to fully cover the cost. Robinson wrote the grant to GOCPP, and has written several others since taking the helm of the police department.

“I do enjoy writing grants,” he said, adding that he has brought in about $150,000 in grant funds to the OPPD.

He said the grants allow the OPPD to acquire resources it wants and needs, and also helps to offset the cost of unfunded state mandates like requirements for body cameras. He called body cameras a “necessary evil that’s unfunded.” He also secured a $35,000 grant to pay for the

first year of a body camera contract.

“I’m very pleased that money is out there and we were able to steer it here at the Ocean Pines Police Department,” Robinson said.

He also provided the Board with an update on OPPD activities since the last meeting. He said the OPPD has been busy doing enforcement, but also performing wellness checks, responding to calls with the Ocean Pines Volunteer Fire Department, and checking on suspicious activity in the community.

Since the last board meeting, he said the OPPD handled calls for an online harassment, minor vandalisms, and two domestic assault arrests, and an assault on an officer.

The department conducted 11 wellness checks for residents of Ocean Pines.

Robinson said these are cases where someone hasn’t been seen in quite a while and “unfortunately we have had a couple that have we’ve gone in it’s not been a good situation.”

One recent incident handled by the OPPD was vandalism at the

Resident looks to start bocce ball league u

For Michael Galello, a 24-year resident of Ocean Pines, bocce ball is more than a game – it’s a lifelong passion rooted in family and community.

Now semi-retired, Galello is channeling that passion into an exciting new venture: creating a bocce ball league for the Ocean Pines community.

“This is something I grew up with,” Galello said. “It was a neighborhood activity, and it has been part of my life for as long as I can remember. I think it is part of the European culture, just like other sports are for other cultures.”

Galello’s love for bocce ball began as a child in northern New Jersey, playing with his uncle Tony and other members of his local Italian American Club.

He also recalled visiting Italy with his wife in 2005 and 2023 and being amazed by late-night bocce games in Rome. “You would see people playing at 1 or 2 a.m.,” he said. “It’s a game that brings people together.”

In Ocean Pines, there are two bocce ball courts – one at White Horse Park and another at the Yacht Club. The Yacht Club court, with its carpeted surface and recent upgrades by Ocean Pines Public Works, is Galello’s preferred spot.

“The lights were just installed at the Yacht Club by Public Works, and they’re perfect for bocce,” he said. “They’re positioned low to reduce overhead shadowing, which is how courts in Europe are designed. Public Works also moved the existing scoreboard to a safer location, making the area much more player-friendly.”

While the White Horse Park court has its charm with an ash surface, Galello said the Yacht Club offers additional advantages.

“You can grab a glass of wine, something to eat, and enjoy the ambiance while playing,” he said. “Plus, the lighting makes it more functional for evening play while listening to a band during the summer season.”

Galello envisions the league as a casual, social activity rather than a highly competitive sport.

“It’s not about physicality or endurance. It’s about strategy, skill, and having fun,” he said. “You can play with teams of up to two or four people, or individually. It’s easy to pick up and can be enjoyed at any age.”

“I’ve seen people watching us play, asking questions, and showing interest,” Galello continued. “I thought, this is a great opportunity for the community. It’s perfect for people who may have graduated from more physically demanding sports but still want to stay active and engaged.”

Galello has already had preliminary discussions with Ocean Pines Recreation and Parks Director Debbie Donahue and received support from General Manager John Viola. The next step, he said, is to host a community meeting to gauge interest.

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Ocean Pines golf course. He said some juveniles went into the restroom and did some significant damage to the property. “We were very pleased that when they decided to come back,” he said, adding “We were able to catch them, and we were able to identify who these individuals were and we’re going to hold them accountable for the damage that occurred.”

Robinson said traffic safety is one of the topics he is most asked about by Ocean Pines residents. He showed the Board a photo of the OPPD’s speed camera set up along Nottingham Lane. He said that device is “in demand” around the community to help slow down motorists. He added that by the time a driver sees the speed camera, it has already clocked their speed. “It gives me a detailed report of what’s going on,” he said of the speed camera.

He said he is also working with Worcester County regarding the installation of signs to warn motorists of curves on the roadways in Ocean Pines. He said the signs would remind people to slow down on the curves.

Two new OPPD officers, Michael Arnold and Kyle Mann, were also sworn in at the Board meeting. “You guys are about to enter our neighborhood to keep us safe,” OPA President Stuart Lakernick told them. “If you are recommended by Chief Robinson I know we are in good hands.”

Viola says OPA will have to fund state-mandated family leave progam

To cost the association $30,000 annually

General Manager John Viola informed the Board of Directors of a new state-mandated family leave program during his GM Report at the Dec. 20 Board meeting.

Viola said in 2022, Maryland enacted a paid family and medical leave program in which all employers with one or more Maryland-based employees will be required to provide this benefit. The program is funded by contributions from both employee and employer slated to begin July 1 of this year, Viola said.

The program specifies that .9 percent of wages, up to the Social Security wage base, is to be split between employers and employees, with employees paying through a payroll deduction.

Estimated annual cost to OPA is approximately $30,000, Viola said.

Benefits will not be available to employees until July 1, 2026.

Employees are eligible for benefits if they have worked at least 680 hours in the four most recently completed quarters.

Viola said the state approves any requested paid leave, and that it must be used for certain qualifying reasons, such as caring for a family member with a serious health condition.

Viola again comments on public safety spending

Public comments: Member angered by canal leaf blowing

By ROTA L. KNOTT

Contributing Writer

General Manager John Viola anticipates nearly half of the annual Ocean Pines Association assessment will be budgeted for public safety by fiscal year 2026-2027. Viola emphasized the portion of the assessments dedicated to covering public safety expenses as part of his monthly financial review during the Dec. 21 Board of Directors meeting and said public safety spending will be part of the OPA’s budget process for fiscal year 2025-2026.

Viola said the increased percentage of the assessment revenue dedicated to public safety expenditures is the result of significant investments in both the Ocean Pines Police Department and Ocean Pines Volunteer Fire Department.

He said there are two components to the increasing percentage of assessment dollars expended for public safety, the increasing cost of providing public safety and past Board decisions to reduce the overall amount of the annual assessment charged to property owners.

That resulted in an increase in the percentage of the assessment allocated for public safety.

In his monthly report, Viola included a graphic illustrating public safety funding by percentage

of the assessment. It shows: FY18-19 was 23.8 percent, FY 19-20 was 24.2 percent, FY 20-21 was 25.2 percent, FY 21-22 was 25.6 percent, FY 22-23 was 33.3 percent, and FY 23-24 was 32.7 percent.

Estimates show public safety spending by percentage of the assessment dollars at 36.8 percent for FY 24-25, 38 to 39 percent for FY 25-26 and 44 to 45 percent for FY 26-27.

“We need to be aware of that,” Viola said, adding that the OPA will need to look at expenditures for the next four to five years.

Viola called it a “big jump” of a 14 to 15 percent increase in public safety spending for the coming fiscal year.

His graphic showed the base property assessment will be in the range of $850 to $875 in 202526, with an additional $25 possible the year after.

It came in at $875 in the draft preliminary budget he unveiled later in December.

Costs driving up the use of assessment dollars for public safety are the adjustment to police pension equivalent, at $21 assessment dollars for FY 24-25. In FY 25-26, police salary adjustments were at $18 assessment dollars and the increase from 50 to 75 percent in contribution to OPFVD for its apparatus reserve equals $15 assessment

dollars. For FY26-27 the proposed new southside firehouse will take $31 assessment dollars and funding full time equivalent positions not included in FY 24-25 for $12 assessment dollars.

Viola said the Budget and Finance Advisory Committee will review the draft budget on Jan. 2 and 3, with the Board review scheduled for Jan. 8 and 9.

A Town Hall meeting on the budget is tentatively scheduled for Feb. 5.

He said he hopes for Board approval of the budget by Feb. 22.

Public comments

Property owner Louis Lazzaro pleaded with the Board of Directors during the Public Community segment of the Dec. 21 Board meeting to do something about yard waste being put in the canals.

Lazzaro said he lives on a canal where the water doesn’t flush out. “It just dead ends,” he said. He alleged that he had a boatlift installed and the contractor was diagnosed with pfisteria from being in the polluted water.

Lazzaro said he called the police department about crews working for his neighbor blowing leaves into the waterway. Another time he spotted the crew blowing leaves out to the road.

He said he also contacted Public Works but was told the department will not tell the contractors to stop blowing debris into the canals, but would only fine homeowners for doing so.

OPA President Stuart Lakernick encouraged Lazzaro to email his concerns to oceanpines.org.

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From Page 22

He said that is the best way to reach the OPA’s operations team “that will actually be able to do something.”

Lazzaro asked if the Board could send a letter to waterfront property owners educating them about not putting debris into the waterways and telling them to keep their contactors from doing so too.

Lakernick said no, that is not the role of the Board.

Karen Kaplan asked about the purpose of an OPA Town Hall meeting tentatively scheduled for February.

Viola said the Town Hall meeting will be to gather feedback from the community on the proposed fiscal year 2025-26 budget.

Kaplan also asked when budget materials will be available to the community members to review in advance of the Town Hall meeting. Viola said all budget materials will be posted online.

The preliminary proposed budget drafted was posted in late December.

CPI violations

The Board of Directors voted unanimously during the meeting to suspend the voting rights and amenity use of several properties in Ocean Pines and to refer them for legal action.

The properties with outstanding violations are: one violation each at 240 Ocean Parkway, 86 Teal Circle, 10 Sundial Circle, 18 Brookside Road, 23 Garrett Drive, 45 Tail of the Fox Drive, 70 Crest Haven Drive, and 5 Morning Mist Drive, and with two violations at 9 Castle Drive.

Linda Martin, director of busi-

ness administration, said first and second notices of the violations were sent to the owners of all of those properties and no one requested a hearing before the Board.

Martin said 44 Footbridge Trail, which was cited for two violations, was pulled from Board consideration because the owners are working to address their violations.

Dashboard data

As of November 1, there were 193 outstanding property violations outstanding with the Compliance, Permits, and Inspections office.

Another 225 violations were initiated in during the month, including 32 maintenance, trash or debris; 29 no permit, 87 signs, and 77 miscellaneous, such as parking, stop work orders, trailers, and junk vehicles.

CPI closed out 119 violations during the month, but there were still 299 remaining as of month end, including 68 maintenance, trash and debris, 56 no permit, 68 signs, and 107 miscellaneous.

Director John Latham asked if the majority of the sign violations were for election signs placed on properties in Ocean Pines.

Martin said yes and added that CPI has processed a lot of violations due to election signs not being removed from properties in a timely manner.

Public Works had 88 open work orders as of November 1 and received 39 new work orders during the month.

It had 79 open at end of the month, with 38 of those open work orders are for drainage issues.

The OPA had 49 customer service contacts in November, including 6 for amenities, 12 for CPI, 0 for

1,595

Swim and Racquet jet ski launch gets go-ahead

Slip

By ROTA L. KNOTT Contributing Writer

Six slips for jet skis will soon be for rent at the Swim and Racquet Club marina. General Manager John Viola announced during the Dec. 21 Board of Directors’ meeting that the Ocean Pines Association will be redesigning the small, shallow boat slips at the club for jet skis.

The project is currently in the county permitting process.

Viola said he has received requests for jet ski slips, and already has someone who wants to reserve two of them.

“We already have one individual that signed up, ready to give us a check for two of them and we have two other people that have expressed interest,” he said. “We will put this out once I get approval.”

He said there are three or four open slips at the Swim and Racquet Club marina that cannot be rented out to boaters because the water depth is too shallow, but they can be reconfigured to accommodate jet skis.

Viola said the OPA will be installing ski lifts in those otherwise unusable slips. That will create space for six jet ski slips.

“This is something again to enhance the amenities and the customer experience here,” Viola said of the proposal. He estimated the cost of the project at $18,000 to $19,000, and said they should be ready by Memorial Day.

The rental fee for each slip is $1,000.

rentals set at $1,000 meeting.

drainage, 22 in general questions or comments, and 9 public works.

Appointments

The Board of Directors made three appointments to standing advisory committees during a Dec. 21

Thomas Mc Elroy and Marlene Ott were appointed for a first term on the Elections Committee.

Robert Moulden was appointed for a second term on the Golf Advisory Committee.

OPPD Chief highlights safety initiatives

Ocean Pines Police Chief Tim Robinson provided a detailed update on safety initiatives during the Ocean Pines Association Board of Directors meeting Dec. 21.

The Board also welcomed two new police officers, Michael Arnold and Kyle Mann, introduced by Association President Dr. Stuart Lakernick.

Robinson addressed recent police activity, emphasizing the department’s diverse responsibilities beyond traditional law enforcement.

“The police department’s pretty active here, and we do a lot of nontraditional stuff,” Robinson said. “We’re visiting people, doing check-the-welfare calls, responding with the fire department, and checking on suspicious activity.”

Robinson detailed several incidents since the last Board meeting, including two arrests for domestic assault — among the most common charges in Ocean Pines — an assault on an officer, and a trespassing case. He noted progress in holding individuals accountable for a vandalism incident at the Ocean Pines Golf Club restroom.

“We were very pleased that when [the juveniles involved] decided to come back, we were able to catch them, identify them, and hold them accountable for the damage,” Robinson said.

Robinson also highlighted the department’s efforts to promote traffic and pedestrian safety. He worked with the Worcester County Bicycle and Pedestrian Safety Co-

alition to secure a grant from the Maryland Highway Safety Office. The grant funded safety equipment such as bicycle lights, reflective strips, and blinking lights for nighttime walkers.

“We’re also looking at new signage, particularly advisory signs for curves, and working with the Director of Public Works in Worcester County on possible improvements,” Robinson said.

Traffic enforcement will remain a priority, aided by tools like the department’s portable speed camera.

“Most people, when they see it, it’s already caught you,” Robinson said. “It gives me a very good indication of what the true picture is.”

Robinson concluded with a commitment to continuing safety education for drivers, pedestrians, and bicyclists, especially for Ocean Pines’ aging population.

The meeting began on a celebratory note with the introduction of Arnold and Mann.

Road signage under consideration for installation.

Board yet to act on Elections Committee recommendations

Board liaison John Latham says that any changes requiring by-laws changes won’t be happening

By TOM STAUSS Publisher

So far there’s been no public discussion at the Board or committee level on whether recommendations contained in the Ocean Pines Association’s Elections Committee’s report on the 2024 Board of Directors election will be implemented before the 2025 election season begins.

Technically, that season begins in February, when the OPA President under the OPA governing documents is supposed to appoint a Search Committee to find candidates to run in that year’s election. That hasn’t

happened in recent years, and probably won’t happen this year either, as OPA President Stuart Lakernick is a likely candidate for re-election. There are no consequences in the governing documents spelled out in the event a Search Committee isn’t appointed.

Regardless of what does or doesn’t happen with a Search Committee, the Elections Committee made a number of recommendations that would affect the conduct of this year’s Board election if implemented.

The Progress reached out to Committee Chair Steve Ransdell and

Board liaison John Latham for comment on what their intentions are regarding pressing forward with the committee’s recommendation.

Latham responded and said that any change that would require amending the OPA by-laws most likely won’t be acted upon because it would require a community referendum, a time-consuming and expensive process. He also said a committee suggestion to hold off on announcing election results until the annual meeting instead of the day of the vote count isn’t likely to happen.

“We [the Board] would probably have some difficulty with that one,” he said, noting that there is an expectation in the community that election results will be announced as soon as they’re known.

One recommendation in the committee’s report is for the committee to coordinate with the By-laws and Resolutions Advisory Committee to adjust the 35-day eligibility date for voting or to change the date of the annual meeting from the second Saturday of August.

The other is to eliminate the observable count requirement that is part of the by-laws.

These are kinds of changes that Latham said are unlikely to be implemented because they require changes in the by-laws.

The 35-day requirement refers to a provision in the by-laws that say that in order to be eligible to vote, a member must be in good standing -- paid-up assessment and no outstanding violation of OPA governing documents or rules and regulations -- 35 days prior to the annual meeting, normally held the second Saturday in August.

For the 2023 election, according to the committee report, that date was July 6 and the annual meeting was scheduled for Aug. 11. It was later postponed two weeks to accommodate the late arrival of ballots.

The report did not mention the dates for the 2024 election or what

challenges occurred during that year’s election because of the allotted 35 days. “The point here is that election materials cannot be mailed prior to the thirty-five-day cutoff,” according to the report. “Thirty-five days may have been sufficient in the past when the USPS was reliable and [the Ocean Pines Association used] a local printing contractor to print, mail and pick up envelopes from a local post office, besides volunteers to count ballots, but today, 35 days is insufficient.”

The committee recommends that “our documents be revised to provide ample time to process election documents.”

The report also said the committees finds “that the requirement for remote observation of the ballot count unnecessary because ballots are electronically machine read and disputed ballots are set aside and adjudicated by humans. Moreover, and as experienced during the 2022 election, there was no way to observe electronically submitted online ballots.”

The same was true in 2023 and 2024 and will likely be true going forward.

The report said that the remote observation requirement shrinks the number of contractors that would be able to manage the Ocean Pines election process. That may less of a concern now as the committee, in a meeting in late August, voted to recommend the rehiring of MK Elections of Pittsburgh, Pa., to manage this year’s election for the OPA.

Remote viewing is referred to in a Board resolution, so it’s possible that this could be eliminated or modified by the Board.

Latham said this and other recommendations in the 2024 report will be discussed at the committee level now that the committee has been repopulated with two new members, Marlene Ott and Thomas McElroy.

The report listed a series of “lessons learned” during the last election:

• Electronic email of election materials should be sent after paper ballots have begun to be delivered in Ocean Pines.

This year, e-mail of election materials occurred almost two weeks before the paper ballots arrived.

• Electronic materials must include a link to candidate photos, bios and statements.

• Materials must explicitly state the drop box location [the Ocean

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From Page 26

Pines police station], and the deadline [for dropping off ballots].

• Packaging requirements for dropped-off ballots [should be clarified]

• MK Elections contact information [should be removed] from ballots

• Better clarity of voting information [is needed], [such as] drop-box location and deadline, only voting one way [paper ballot or online], [and] ways to contact the Elections Committee

• Deadlines for online voting and paper [ballot] voting [should be] coordinated with MK [Elections]

• Desperately need a campaign to educate voters to update OPA records [e-mail addresses on file]

• Drop-box cut-off [should be moved up] at least a week earlier to [allow more] time to ship ballots to MK [Elections]

• Final UPS drop-off at Staples [should be] 4 p.m., a reference to the West Ocean City business where the OPA dropped off dropbox ballots for overnight shipping to MK Elections

• Reminder emails with MK Elections [should be reviewed to eliminate] mixed messages, discrepant closing times, etc.

Another last item in the list needed some clarification.

It read: “Secret ballot envelope said to place all ballots in the envelope.”

The “secret ballot” envelope refers to the envelope in which a filled-out ballot is placed before it’s mailed back for counting. In four instances in the 2024 election cycle, owners of multiple properties placed all of their return ballots in a single envelope.

They were all counted, committee chair Steve Ransdell told the Progress, but next year the election materials should make it more clear that only one ballot should be placed in a return envelope.

The report then went into greater detail on lessons learned during this year’s process.

It said that initial mailings should indicate three ways of voting: on-line, by mail [paper ballot] and by dropbox [paper ballot].

“There was some Internet chatter that the dropbox was not publicized,” the report said.

The committee also suggested that some consideration should be given on “whether we need to clarify” the meaning of a “single mailing” to include the ballot and candidate biographies and that “an e-mail as to online voting will be sent at the same time as the [paper ballot] mailing.

“The fact the email is received first is not in violation of our rules,” the report said.

Even so, the arrival of an email promoting online voting well before paper ballots arrived in local mailboxes did raise questions about timing.

The report also contained some suggestions on how to eliminate one of last year’s glitches, when, on the day of the vote count, MK Elections displayed the election results on-screen before public adjudication of ballots occurred.

The committee needs “to make sure we have

disclosed our processes to the vendor. Our vendor may very well be used to elections where they do everything and disclose the results to the board.

“This may have created confusion [prior to] ballot adjudication,” according to the report, adding that the committee needs to make the vendor aware of who is watching the video.

“They can’t be expected to guess whether or not it is public,” the report said.

This year’s adjudication process was public, available for viewing by any OPA member at home or on a large screen at the Golf Clubhouse meeting room where Elections Committee members were present.

The report said the committee needs to clarify to the vendor whether the whether the counting process is public or in an executive session.

“I don’t think there was a public link to the second call we had scheduled to certify. It turned out we did it in one call because the results were known [resulting from the inadvertent display of results prior to adjudication],” the report said, with Ransdell, the report’s author, using the first person reference to himself.

“The process should be that no results are released to the committee until after adjudication of ballots,” according to the report. “The margin this year made it [premature disclosure of election results] irrelevant, but we had a large number of defaced ballots [needing adjudication].”

The committee suggested building in more time into the schedule, such as closing off the dropbox earlier and “giving us [more] time to adjudicate and certify.”

The report suggested that election results could be announced on the day after the official vote count, but did not offer a reason why that would be an improvement over the practice of announcing results on the same day as the count.

Of all the committee suggestions, this one is the one most likely to invite push-back from members who don’t want to wait for election results.

The committee also is recommending that clear instructions be posted on the OPA Website if a member “did not receive a ballot, received a ballot missing something, did not receive an email, etc.”

The report said the instructions

should advise members to include contact voicemail and email and “a reminder the owner is responsible for making sure OPA has the right address and email. It would be helpful to be able to point to this on the Web when the inevitable questions come up on Facebook and Forums and such.”

The report also addressed confusion for some voters caused by the inclusion on this year’s ballot of a barcode, which some members apparently thought would identify them and how they voted in the election.

Not so.

“The barcode identifies this ballot as [intended] for the OPA Board of Directors [election]. All ballots have the same bar code. It in no way identifies the person casting the ballot,” according to the report.

Some voters cut off the barcode before sending in the ballot, which could have voided it in this year’s election because of rules that defaced ballots need not be counted.

“We counted them [defaced ballots] as an induced error [by the committee this summer] but we should correct the misunderstanding going forward,” the report said.

Proposed changes to M-09 Board resolution may be headed for a vote

Jacobs proposal would give the directors the authority to appoint a Search Committee if the president doesn’t

By TOM STAUSS Publisher

Aproposal to amend Board Resolution

M-09, a provision dealing with the candidate search process for OPA Board elections, to make it more consistent with Ocean Pines Association by-laws, may come up for a second reading at the January monthly meeting of the Board of Directors.

Director Steve Jacobs offered an amendment for first reading at the Board’s November meeting.

At the time, it seemed possible that it might come up for a second reading at the December Board meeting, but it didn’t happen.

As background, he said the OPA by-laws provide for the president’s appointment of a Search Committee, subject to confirmation by the Board.

However, there is a provision that the lack of a Search Committee has no effect on the validity of the election.

In recent years, no search committee has

been appointed, with little apparent effect on the number of candidates running for available seats on the Board.

This year, OPA President Stuart Lakernick is thought to be considering a bid for reelection, which might make appointing a Search Committee for him somewhat awkward if not inherently conflicted.

If the Board adopts the amendment, the revised resolution would give the Board the authority to appoint a Search Committee.

In addition, the application form for candidates to run for the Board has also been changed somewhat.

In a Jan. 3 telephone interview, Jacobs said he may bring up the amendment for a vote at the Board’s January meeting if the Bylaws and Resolutions Advisory Committee, to which he’s the Board liaison, votes in support of it.

The proposed language has been vetted by legal counsel, Jacobs said, with no reported objections to the text.

Next year, similarly defaced ballots probably won’t be counted.

The committee then included some other instructions to voters it hopes will be followed in this year’s election.

Owners of multiple lots were again advised to place no more than one ballot in a return envelope if voting by mail or dropbox.

For voters who fill in a circle on the ballot for a candidate in error, and then try to cross it out or otherwise obscure a candidate’s name, “your vote may not be counted unless the Elections Committee can ascertain your clear intent.”

To avoid the possibility of a voided ballot, the committee suggested voting online or requesting a replacement ballot.

The report reiterated the policy and practice of not counting duplicate ballots.

“Your vote is final once received and cannot be changed. If duplicate votes are received, only the first is counted.

The check for duplicates is done by the third-party vendor and duplicates removed without identifying the candidate voted for, the report said.

During the November Board meeting, Jacobs noted that during the last several years a Search Committee has not been appointed by the OPA president.

At various times, including prior to the last extensive review and modification of the bylaws, there has been discussion regarding the need for a Search Committee. Eliminating it wouldn’t be an easy process.

Amending by-laws is difficult, requiring a majority of those voting in a community referendum to approve any changes.

The proposed resolution corrects deadlines between the current resolution and requirements found in other governing documents.

Jacobs said the proposed amendment removes redundant or incorrect provisions, aligns responsibilities in this resolution with what is found in the by-laws relating to the role of the association secretary and adds to this resolution the correct application form for all Board candidates.

There are some formatting modifications and minor technical and conforming corrections as well, he said.

Jacobs said there is an inconsistency between the Board resolutions and the by-laws.

“This is an attempt, in part, to address that and also to correct other problems,” he said.

None of his colleagues commented on the merits of the amendment, so it’s fate is uncertain.

OPA tightens rules on tree-cutting on lots prior to building

Clear-cutting won’t be approved, and extensive replanting will be required if it happens

By CINDY HOFFMAN Contributing Writer

Ocean Pines for many is synonymous with trees. Many parts of the community have beautiful tree canopies, and numerous residents move to the community for its park-like setting.

But there has been a recent trend in new house construction.

“In the last several years, myself and others have noticed multiple events of clear-cutting of trees on waterfront and other properties in Ocean Pines,” Tim Peck, a resident of Ocean Pines since 2002 and a former chair of the Environment and Natural Assets Advisory Committee.

Peck is also a professional geologist and volunteer for the Maryland Coastal Bays Program and Assateague Coastal Trust.

Based on Peck’s research, clear-cutting has been occurring since at least approximately 2020.

“There is an obvious contrast to the adjacent existing homes that have several large, old trees saved around the homes.”

The Ocean Pines Association has

fairly strict regulations on the removal of trees. Any tree larger than six inches in diameter needs a permit to be removed.

According to the OPA tree removal form, the tree must be dead, damaged, or dangerous, or within ten feet of the foundation or three feet of the driveway to be removed.

This issue was recently discussed on the Ocean Pines Forum page and at the July OPA Board of Directors Meeting.

At that Board meeting, General Manager John Viola noted that going forward, a thorough review for reasonableness and consistency with OPA governing documents would be addressed regarding tree-cutting.

Since then, Viola has instructed more thorough inspections and reviews.

“The General Manager has instructed the CPI Department to be more involved with the tree-cutting process, particularly with new homes.

The CPI Inspector is now attending the county pre-construction meeting for new homes, and CPI

is now requiring a separate meeting with the contractor before a lot is cleared,” Linda Martin, director of business Administration for the OPA, said.

The changes in the way Ocean Pines is approaching the issue were brought on by the clearing of an entire lot on Tiller Lane for new home construction without first contacting CPI, according to Martin.

In that case the landowner is now required to replant trees to replace those that would not have been approved to be removed as they exceeded the line of disturbance.

The updated Architectural Review Committee Guidelines state that contractors shall notify CPI 48 hours prior to lot clearing. If a lot is cleared without without prior approval, contractors will be required to replant trees to replace those that were removed.

Usually during the review with the CPI Department, and upon review of the landscape plan and site plan provided for the new home, the line of disturbance (or limit of clearing) is marked on the site plan, allowing trees within ten feet from

the proposed foundation and three feet from the proposed driveway to be removed.

This is also the policy for approval of tree removal from existing homes. If the tree is dead/dying, diseased, damaged, or causing a safety issue to the home or to neighboring homes, then approval will most likely be given, according to Martin.

“This is a good thing that Ocean Pines is reengaging to implement the long standing policy of controlling tree cutting,” Peck said.

“CPI is also investigating existing homes as well and making sure they are following the requirements on removing trees,” Martin said. “We have found that a lot of trees are being removed on weekends without a permit so we now have an inspector working on weekends to catch the culprits.

Since starting this scheduling in July, CPI has issued ten violations on properties that were removing trees without a permit.”

Ocean Pines’ regulations are stricter than county regulations, and can be enforced above and beyond those county regs. If a tree is within 100 feet of a waterway, the county must approve its removal.

The county is required to follow the 1984 Chesapeake Bay Critical Area Protection Act and its 2002 amendment that included the Atlantic Coastal Bays within the county. It states:

This new home on Tiller Lane triggered the Ocean Pines administration to get more engaged in the approval process for lot clearing.

Tree-cutting

From Page 30

“The Critical Area law requires no net loss of forest or developed woodland cover in the Critical Area. In general, trees that are located within the buffer (within 100 ft of shoreline) cannot be removed unless they are dead, dying, diseased, or creating a hazard to people or property.”

In addition, for attempts to enhance the view from the home as the guidance notes “Removal of healthy trees and natural vegetation in the buffer is not permitted solely for the purpose of creating a view. However, trees and shrubs can be pruned and limbed up to create openings that provide a view.”

When asked for clarification on the implementation of the Critical Area Protection Act, Brian Soper of the Department of Environmental Programs responded, stating that the Tiller lot and others in Ocean Pines are “all located in the Intensely Development Area and are legally existing buildable lots.

While there may be more restrictive standards, the code allows for the development of the lots along with required mitigation for the removal of existing vegetation. The

language pertaining to hazardous or dead, dying, or diseased trees is used primarily for existing developed lots involving a small number of specific trees.”

So while the landower or builder can cut down trees in Ocean Pines, mitigation is required. The county uses a point system for mitigation, assigning a certain number of points to mitigate the tree-cutting. The homeowner or builder is required to plant enough plants to meet the mitigation requirements.

Large trees get 200 points, smaller trees are 100 points, shrubs range from 50-75 points.

“I would be hesitant to say that the laws are not being enforced. You have to take it on a case by case basis,” Kevin Smith, Director of the Maryland Coastal Bays Program, said.

“Replanting or preservation would vary from site to site depending on stormwater management, the location of wetlands, and the scale of the development. There are clearing limitations on properties located within the Limited Development and Resource Conservation Areas inherently providing preservation while also requiring replanting for the amount cleared,” Soper said.

“I think that over the years,

Two electronic signs to be installed by end of month

The Ocean Pines Association will be installing two additional electronic signs in the coming by the end of January, General Manager John Viola announced in his GM report at the Dec. 21 Board of Directors meeting.

He didn’t mention where they will be located, but Cathell Road and the South Gate are possible prospects.

The first sign was installed at the North Gate.

Viola said that the OPA is seeking county appropval of an additional two electronic signs.

Four are included in this year’s budget.

Viola also said that work continues on upgrading the driving range building, that the Racquet Sports building renovation will be starting soon, among other initiatives.

Ocean Pines has been able to build this development and maintain a large part of the tree cover, which has been beneficial environmentally and economically. People are noticing changes to that. Whether or not they are doing it in a way that is allowable are legitimate questions that people who live there have,” Smith said.

“What would be beneficial would

be to have the county, state or Ocean Pines itself help clarify what the rules are. What can and cannot be done. That would help address some of these issues and provide clarity.” Peck encouraged people to reach out to county commissioners to ask how they are implementing the critical area regulations and raise any concerns they might have on clear-cutting.

OPVFD leadership remains intact after 2025 elections

Enste reelected as president, and Joey Widgeon returns as fire chief

By CINDY HOFFMAN Contributing Writer

The Ocean Pines Volunteer Fire Department (OPVFD) held its annual elections for officers for 2025 in December.

The leaders of the department did not change, with Joe Enste remaining as president and Joey Widgeon as fire chief. Both were first elected to their positions last year.

As President, Enste will oversee the Fire Department’s Board of Directors and will collaborate with the Chief and Administration. As Chief, Widgeon will oversee operations. Both are volunteers with fulltime jobs.

OPVFD has an administrative arm and an operations arm. The administrative unit is led by the President, Vice President and four Board of Directors.

The operations division of the Fire Department is led by the Fire Chief. This team oversees the “chain of command,” providing clear direction, lines of communications and accountability. This is especially important on an incident scene for personal safety.

Board members include Dave VanGasbeck as Vice President and Board Members Bill Brickner, Rob Eicher, Chris Rathel, Widgeon and Steven Ready.

Fire Line Officers include Rathel as First Assistant Fire Chief, Steve Grunewald as Second Assistant Fire Chief, Enste as Fire Captain, Steve Giannini and Don Clemens as Fire Lieutenants.

Harvey Booth is captain of the Career officers and Jamie Englishmen, Trey Heiser, and Glenn Shockley are lieutenants.

Ready is Captain of the Fire Police Officers with Bill Birckner and VanGasbeck as Lieutenants.

These officers will lead the department through 2025.

The department is currently holding its end of year annual fundraising drive. This year, all funds will be directed towards three critical areas: replacement of apparatus.

A single fire engine can cost upwards of $1 million and keeping the fleet up to date is vital to ensuring the safety of the Ocean Pines community.

Two other priorities include training tools for its firefighters and EMS personnel and building a mostly new South Station.

The current station is inadequate in size and has outdated safety features.

Other fundraising activities include the Queen of Hearts Jackpot, with virtual drawings on Tuesday at 5:30 pm. Week 40 of the Queen of Hearts drawing saw a winner, Stacey V, who walked away with sixty percent of the $34,437 jackpot. The remainder goes to the Fire Department as part of its fundraising efforts. The jackpot started again at $5000.

The department also raffled off a brand new 2024 Ford F-150 Supercrew STX on December 21. The department sold 1623 tickets at $100 a piece. Final net profits are still to be determined at press time.

To donate to the OPVFD, visit opvfd.com/fund-drive/. All donations are tax deductible. Residents are also encouraged to consider becoming a member of the department. Opportunities include fire and rescue, EMS, Fire Police, Fire Cadet for youths and administration.

Visit opvfd.com/become-a-member for more information.

OPA records $23,000

positive variance in November

For the year so far, the positive variance approaches $570,000

By TOM STAUSS Publisher

The Ocean Pines Association

continued its profitable ways in November, recording a positive operating fund variance of $22,922. As a result, the OPA’s financial performance for the year improved to $569,681. According to a report issued by Controller/Director of Finance Steve Phillips in late December, November’s result reflected revenues under budget by $492 and expenses under budget by $23,414.

For the year through November, revenues were over budget by $325,310 while expenses were under budget b y $244,371.

The OPA continues to be heading towards another excellent year financially, even if the positive operating fund variance falls well short of $1 million, which now seems more or less certain. Phillips and OPA General Manager John Viola in the draft budget for 2025-26 released just after Christmas included a projection for the current fiscal

year, 2024-25, which estimates the year-end positive variance to budget at $673,579, well off the $1 million result of recent years.

As the OPA enters the coldest months of the year, when amenity activity tends to retract, all amenities with only one exception, tennis, were in the black at the end of November.

All but pickleball and the Yacht Club were ahead of budget.

For November, all amenities except for beach parking were in the red, and beach parking is not operational this time of year.

One measure of financial success is how well an amenity is performing year-over-year.

All but two OPA amenity operations are doing better than they were through November of 2023.

The two that not performing as well as the did a year ago were Aquatics and the Yacht Club, with the latter more than $200,000 off its pace from a year ago. Aquatics is roughly $20,000 under its pace through November of 2013.

As it has been for all of this year, golf continues to be the OPA’s most profitable amenity year to date, with $732,090 in net earnings through November and ahead of budget by $180,273.

During November, golf recorded a $37,800 deficit, but that was ahead of budget by $4,718.

A year ago through November, golf had net earnings of $622,622. The year-over-year improvement was $109,428.

Beach parking is the second highest net producer for the OPA so far this fiscal year. Through November, this cash cow had netted $498,297, ahead of budget by $14,758.

For the month of November when it isn’t operational, beach parking netted $10,336,392, missing budget by a scant $439. A year ago through November, beach parking had netted $484,950. The year-over-year improvement was $13,347.

Marinas through November moved ahead of the Yacht Club as the third highest net producer, with a net of $272,570 and ahead of bud-

Net Operating by Department - November 2024

Source: Ocean Pines Association Finance Department

get by $49,901.

For the month, marinas, which also are closed for the season, lost $3,398, ahead of budget by $6,590.

A year ago through November, marinas had earned $215,722 for the OPA. The year-over-year improvement was $56,848.

The Beach Club food and beverage operation continues its tradition as a cash generator for the OPA with only three months or so of operations. It generated $268,772 in net revenue through November, ahead of budget by $76,207.

During Novmber, the Beach Club was in the red by $5,139, just under budget by $759. A year ago, the Beach Club had netted $233,837 through November. That’s a yearover improvement of $34,935.

The Beach Club’s year-to-date performance actually is better than the Yacht Club, which slipped as the OPA’s fourth highest net producer so far this fiscal year. Through November, the Yacht Club brought in net revenue of $208,804, missing its budget target by $177,024.

During November, the Yacht Club lost $71,925, missing its budget target by $29,675. Through November of last year, the Yacht Club had netted $404,749. That’s a year-overyear decline of $195,945.

Aquatics remains a revenue generator for the OPA so far this year, with net earnings of $51,927 and a positive variance to budget through November of $27,653. During November, however, Aquatics recorded a $38,273 operating deficit, under budget by a scant $398.

Aquatics has slipped behind last year’s year-to-date performance. A year ago through November, Aquatics had netted $151,927. That’s a year-over-year decline of $21,015.

Though not a high revenue earner for the OPA, the Clubhouse Grille consistently operates in the black. Through November, it had netted $117,721, ahead of budget by $27,512.

For the month, it more or less broke even, showing a deficit of $79, under budget by $3,085. Through November of last year, the Clubhouse Grille had produced earnings of $120,874.

The year-over-year decrease in net was $3,153.

Racquet sports in the aggregate continues to be a profit center for the OPA, led by pickleball.

Pickleball earnings through November were $82,500, under budget by $4,991.

During November, pickleball lost $2,298, ahead of budget by $882.

Earnings through November of last year were $74,275.

That’s a year-over-year improvement of $8,225.

Platform tennis is in the black through November, with a net of $4,183, ahead of budget by $11,758.

For the month, this amenity lost $1,930, but that was ahead of budget by $1,065.

Platform tennis through November of 2023 had lost $4,405. The year-over-year increase was $8,688.

Finally tennis, the amenity that generates the least for the OPA in net revenue, is in the red for the year, in the amount of $4,932. But that’s a positive variance over budget of $2,716.

Year-over-year, tennis is much improved. A year ago through November, this amenity was in the red by $23,291. The year-over-year improvement was $18,359.

Reserve funds: The OPA’s reserve fund balance through the end of November was $8.062 million, down from $8.24 million in October, $8.593 million in September, $8.877 million in August, $9.15 million in July, $9.39 million in June and $9.795 million in May.

The replacement reserve as of Nov. 30 was funded in the amount of $5,634,214, bulkheads/waterway $902,983, roads $1,148,058, drainage $271,152 and new capital $105,738.

Balance sheet: As of Nov. 30, the OPA had $42.739 million in assets, compared to $42.118 million at the same time in 2023.

Membership: OPA amenities reached 107 percent of budget by the end of November, no change from October. Total memberships sold through Nov. 30 were 4,177, compared to 4,033 at the end of November la year prior.

Membership dues collected through Nov. 30 were $1,306,729, ahead of budget by $84,381.

All membership categories were ahead of budget with one exception, with tennis at 93 percent through the end of November, no change from October.

November cash at $16.1 million

The Ocean Pines Association’s cash and investment position decreased almost $1 million from the end of October to Nov. 30, with about $16.1 million on hand as of Nov. 30. That compares to the $17 million on hand at the end of October.

According to a report by OPA Treasurer Monica Rakowski at the December Board of Directors meeting, cash decreased $700,000 from the same time last year. Cash decreased $900,000 from the end of October to Nov. 30.

Of the cash on hand, $10.8 million was invested in CDARs, and $57,000 in interest income was recognized for the month. The remaining $5.3 million was invested in an insured cash sweep, treasury bills, money market and other operating accounts, diversified between two local banks.

Elder replaces Bertino as commission president

Ocean Pines commissioner appointed to Maryland Association of Counties Board of Directors

By ROTA L. KNOTT Contributing Writer

After two years as president, Worcester County Commissioner Chip Bertino, who represents the all-Ocean Pines District 5, has relinquished the gavel for the county’s governing body. During a Dec. 3 meeting the commissioners voted in Ted Elder, District 4 representative, as the new commissioner president and Eric Fiori, District 3 representative, as vice president. Jim Bunting, Ocean Pines’ other representative from District 6, cast the lone vote in opposition to both appointments.

Bertino will be joining the Maryland Association of Counties Board of Directors for 2025. Bertino, who was elected as a commissioner in 2014 to represent Ocean Pines, is serving his fourth term in the Worcester County office.

“I very much appreciate the fact that I’ve had the opportunity to serve as president for the past few years and I look forward to handing those responsibilities off in just a few minutes,” Bertino said in conducting the election of officers. “I want to thank staff for all the assistance that they’ve given me the past two years and I wish my successor all the best.”

Meanwhile, on Dec. 12, Gover-

nor Wes Moore installed the MACo Board of Directors for 2025, including Bertino, who was one of 16 county elected officials from across Maryland to be installed to the board for the coming year.

“The opportunity to serve at this level is a tremendous honor,” Bertino said. “It’s humbling to have earned the confidence of my colleagues across the state to fill this position. I look forward to representing and advocating for Worcester County and MACo members with government officials and leaders throughout the state.”

Bertino is the first Worcester County representative to serve on the board since former Commissioner Judy Boggs in 2013. Former board members from Worcester County also include Joseph G. Harrison (1959), Ray F. Redden (1969), K. Bennett Bozman (1990), and Jeanne Lynch (in the 1990s).

Board members are selected by the MACo membership. Board members serve the interests of the association, oversee its management and strategic direction, and maintain and develop relationships with other parties with whom MACo and Maryland counties regularly interact. The board works collaboratively with the MACo Legislative Committee, which sets policy positions for the association and directs its legislative advocacy priorities.

“With Commissioner Bertino serving on the MACo Board of Directors, Worcester County will have more visibility and input on issues that impact our county,” Elder said. “We could not be more supportive of his appointment to this vital board.”

In addition to the Board of Directors, Bertino has also been serving on the MACo Legislative Committee since 2019. The committee meets weekly during each Maryland General Assembly session to determine which legislative positions to take. The committee votes on every bill that they have taken a position on. This lets state legislators know that the committee has the consensus of all 23 Maryland counties and Baltimore City when they take a position.

“Commissioner Bertino brings two years of experience as president

County Commissioners act to protect West Ocean City harbor

To acquire property through eminent domain that offshore wind company had planned to acquire and use as a staging area

The Worcester County Commissioners on Dec. 17 launched efforts to purchase two properties located in the West Ocean City commercial maritime harbor to protect the county’s historic commercial and sport fishing industries.

These sites, which house the only two commercial seafood wholesalers where watermen can offload and sell their catches, are the Southern Connection Seafood and the Martin Fish Company properties.

Plans for the two properties include developing a long-term lease with the existing owners to allow them to continue serving the needs of the commercial fishing industry.

These steps are being taken to stop Renexia SpA, a foreign-owned construction company and the parent company to US Wind, from purchasing these same properties. The goal of US Wind is to tear down the

existing fish houses and develop an operations and maintenance facility to support its proposed offshore wind project.

The proposed project would obliterate commercial fishing operations and reduce navigability on land and the bays in and around the WOC commercial maritime harbor. Maintaining the harbor is a critical component of the county’s economy in countless ways.

“None of our actions today have been entered into lightly,” Commissioner President Ted Elder said. “Over the past year or so, we have spoken out at every opportunity to Governor Moore, to state legislators, to the Maryland Public Service Commission, to Sussex County where wind turbine cables would come ashore, and to the Bureau of Ocean Energy Management (BOEM), warning that Worcester

County’s commercial and sport fishing industries would be destroyed if US Wind is permitted to close down the fish houses. They have turned a deaf ear to us.”

The WOC harbor is home to the commercial fishing fleet. The commercial fishing boats have federal fishery catch quotas that require their harvest to be landed in a Maryland port. Their catches, which are processed and sold by Southern Connection Seafood and Martin Fish Company, have an annual market value in excess of $3.7 million. In addition to commercial fishing operations, the Martin Fish Company handles humane horseshoe crab bleed operations for the testing of vaccines by the biotech industries in Maryland and worldwide. These crabs are caught, humanely bled, and safely returned to their sanctuary off the coast within the vicinity

of the BOEM offshore wind lease area.

Close to the is the world’s largest billfish tournament, the White Marlin Open. In 2023, this annual tournament generated 130 jobs, attracted 3,500 anglers, and awarded roughly $10.5 million in prize money.

Worcester County’s commercial and sport fishing industries depend on the commercial marine support provided in and around the WOC harbor, the only harbor in Maryland with direct access to the Atlantic Ocean.

“If there ever was a worthy use of eminent domain, this is it,” Chief Administrative Officer Weston Young said. “There is support for the actions being taken today by the Worcester County Commissioners, the Ocean City Mayor and Council, and area stakeholders, as well as an overwhelming majority of residents, businesses, and property owners, who are against US Wind destroying our commercial harbor and the resort’s viewshed.”

The commissioners established the Commercial Marine District to protect the commercial fishing industry.

Sports complex idea still alive

By ROTA L. KNOTT

Contributing Writer

Asite near Ocean Pines at the intersection of Routes 589 and 113 is one of three properties still being considered as the location for a new sports complex.

The Town of Ocean City engaged the Maryland Stadium Authority to provide support in the development of an indoor-outdoor sports complex. This summer MSA solicited a request for proposals to hire an architect/engineer to provide preliminary design services for the proposed facility.

Officially listed as “Site 3 (Routes 589/113” in an addendum to the RFP, the property near Ocean Pines is located just off of Route 113, about 3 1⁄4 miles north of another site under consideration near Stephen Decatur High School. The property is near the intersection with Route 589 and consists of 147 acres, with 117 acres currently cleared and farmed, and the remaining is a forest area. There is water and sewer access approximately 2,000 feet from the site.

The number one site listed in the RFP is property located adjacent to Stephen Decatur High School and near the intersection of Routes 50 and 113 in Berlin. Site 2, known as the Taylor property, is located just off of Route 50, about 2.5 miles west of the SDHS site. It consists of 150 acres, including 116 acres are currently cleared and be-

Rt. 589/Rt. 113 location still on the table

ing farmed and the remaining is forest. There is water and sewer access approximately 4,000 feet from the site.

A market analysis previously completed by consultants for the MSA and Ocean City found that an outdoor sports facility would attract new sports tournaments and competitions that generate significant economic and fiscal impacts to the area. Offering multipurpose fields will allow the facility to host multiple sports such as soccer, lacrosse, rugby and ultimate frisbee. The proposed outdoor field complex also creates the opportunity for local and state organizations to develop new sports tournament activity.

The market analysis states that the outdoor complex would require a minimum of about 36 to 45 acres of land.

It also indicated a relatively strong demand for a new indoor fieldhouse near Ocean City. Market research, including input from potential users, suggests that a first-class facility with a minimum of eight full basketball courts and other related supporting infrastructure should place the Ocean City in a favorable position to attract new indoor sporting tournaments and competitions that increase visitation in non-peak months.

Based on industry experience as well as building programs at comparable facilities, the market report estimated that the indoor complex would

require about 105,000 to 125,000 square feet of gross enclosed space. Including parking, the study estimated that development of the indoor fieldhouse would require 7 to 10 acres of land depending on the actual building concept developed.

Ocean City officials are considering creating a business investment district to fund the sports complex. The model would require the state to create a BID designated area in Ocean City that would create a special assessment to fund the sports complex.

County voters in a referendum two years ago rejected public financing for the proposed complex.

Bertino

From Page 33

of the Worcester County Commissioners and five years on the MACo Legislative Committee, where he and I serve together,” Bunting said. “His experience in both of these areas will be invaluable as he steps into his new role on the board of directors. He is knowledgeable, experienced, and distinctly able to evaluate all of the issues surrounding legislative issues. This makes him ideally suited to advocate concerning matters that impact not only the three Lower Eastern Shore counties, but all Maryland counties.”

TidalHealth, AGH announce intentions to merge

AGH would become part of the TidalHealth family, suggesting that the proposal is more than a merger

By TOM STAUSS Publisher

In a Dec. 12 press release, the respective boards of Atlantic General Hospital (AGH) and TidalHealth announced to that they have signed a non-binding letter of intent to combine organizations.

If the two organizations are able to complete a merger, which more accurately can be defined as TidalHealth absorbing AGH, it would end a rivalry that has played out in the Ocean Pines area.

TidalHealth operates a medical campus adjacent to the Ocean Pines North Gate, while Atlantic General Hospital operates a medical building about a mile south of the Ocean Pines South Gate on Route 589.

Atlantic General Hospital in Berlin since its founding has in some respects competed for patients with the TidalHealth hospital in Salisbury, known in previous decades as Peninsula General Regional Hospital. It’s now called TidalHealth Regional Hospital.

How what have been competing operations will be combined in such a way to minimize duplication of services while taking advantage of available space will be one of the

more interesting aspects of the merger.

Earlier this year, the AGH Board of Trustees announced the launch of a strategic partnership exploration process to consider all options to enhance healthcare in the region.

“After thoughtful consideration, the board chose to affiliate with TidalHealth as both organizations are well aligned in their missions and share a deep commitment to serving the healthcare needs of the Lower Eastern Shore of Maryland and Delaware,” according to the press release.

“The board was delighted to find a potential partner that shares our exciting vision of serving our local community,” said Doug Cook, chair of the AGH Board of Trustees. “Together, we can make advancements in recruiting and retaining top physicians, as well as invest in the infrastructure and technology that will improve our care delivery. This is an important step forward for our community.”

Steve Leonard, Ph.D., president/ CEO of TidalHealth, offered similar comments.

“TidalHealth recognizes AGH’s longstanding commitment and service to the community and looks for-

ward to the opportunity to combine our shared objectives and missions and develop a strategic relationship that will further enhance the services we provide to the citizens of Delmarva,” he said in a statement.

He went on to say that TidalHealth has great respect for AGH’s historic contribution to the healthcare needs of its community.

“We are honored to have been chosen. We are confident that we can further enhance their strength in the region with AGH becoming part of the robust health system that has been providing high-quality care since 1897. Our Board of Directors, physicians, and our entire healthcare team are looking forward to welcoming Atlantic General to the TidalHealth family.”

That language suggests that the pending merger is more like an acquisition.

If consummated, the merger will be structured to provide access to an integrated electronic medical record through Epic, improve the coordination of services and access to care for patients, provide capital funding to expand services, and strengthen the hospital’s ability to retain and attract a high-quality workforce, according to the press release.

The two health systems hope to finalize an agreement in spring of 2025, pending further board approvals and regulatory review.

“This partnership is a win for our patients, our associates and the communities we serve,” said Don Owrey, president and CEO of AGH.

“By affiliating with TidalHealth, we have the opportunity to combine the strengths of our two organizations to fundamentally improve the availability of high-quality healthcare close to home.”

Memo Diriker, chairperson of TidalHealth, said his organization is “excited about the opportunity to combine and bring together two strong organizations, each with outstanding reputations for the patient experience and quality of care. This partnership brings an incredible opportunity to unite and enhance care delivery in our region.”

As the two organizations continue to work through the comprehensive due diligent period to determine the details of a final agreement, the press release said the parties would commit that the proposed combination will not impact either health system’s daily operations, and nothing changes in the interim for patients or associates.

County reviews plans for Giant supermarket

Residential rental complex included in project

By ROTA L. KNOTT Contributing Writer

Along-planned Giant supermarket, along with 168 newly proposed residential apartments, may finally be coming to Route 50 south of Ocean Pines. The Worcester County Technical Review Committee on Dec. 11 evaluated major site plans for the Coastal Square development, which includes the supermarket and apartments. The developer hopes to break ground this year.

The 168 apartment units will be included in seven proposed three-story, 24-unit buildings with associated open space.

The residential units are part of the Coastal Square commercial development proposed for the corner of Racetrack Road and Route 50 along Samuel Bowen Boulevard, and will include one, two, and three-bedroom units.

The commercial area, including the outlots, must be “improved with uses before the residential portion can be permitted.

The addition of a Giant supermarket adds to an already abundant supply of such stores to the area, creating lots of choices for consumers.

There’s a Wal-mart Super Center nearby, an Aldi, and the Pennington Commons complex across from the Ocean Pines South Gate features a Food Lion as an anchor store.

A recently adopted text amendment to the county zoning code for

the C-3 Highway Commercial District permitted multi-family dwelling units of an accessory use to an established commercial structure or use of land.

The code notes that 65 percent or more of the net lot area of the parcel must be improved with 15 percent open space.

Questions from TRC members included whether any community signs are proposed for the apartment complex and if dumpsters are located too far way to provide reasonable access to them by apartment residents with disabilities.

They also wanted more information on plans for parking and travelways, landscaping, and lighting.

For a major site plan to move forward the developer must address all comments provided by the TRC and resubmit any changes as needed prior to sign off by TRC and final approval by the Worcester County Planning Commission.

The Worcester County Commissioners don’t weigh in on the project because no rezoning is involved.

Shopping center access will be provided from Route 589, Route 50 and Samuel Bowen Boulevard, and an internal traffic circle will connect the outlots of the new commercial development to the adjacent Ocean Landing Shopping Center.

The era of declining assessments is over COMMENTARY

Although it’s always possible that the Board of Directors will find some way to reverse General Manager John Viola modest proposed assessment increase in the 2024-25 Ocean Pines Association budget, it may not be worth the effort.

It’s true that in recent years, Viola’s budgets gave back a portion of the prior year’s million operating fund surplus in the form of an assessment decrease. It was a way of rewarding OPA members for contributing to that surplus, mainly through consistent, stellar support of OPA amenities.

When amenities ranging from golf to marinas to beach parking and food and beverage venues yield operating surpluses, giving rise to those million dollar operating fund surpluses, Viola made it a mission to return some of that money to those who made those surpluses possible.

In the new proposed budget, there continues to be a transfer of what Viola likes to call “favorables” from the prior year’s retained earnings into the operating fund. The proposed assessment increase is lower than it would be if the transfer didn’t occur.

What’s different in the proposed 2024-25 budget are the pronounced inflationary pressures and anticipated increases in the cost of providing top notice services in the public safety arena. OPA members are supportive of, and very proud, of their police and fire departments, and these departments can’t be run on the cheap.

Fire/EMS expenditures would increase about $150,000 in 2024-25 over what was approved a year ago in the 2023-24 budget, and the police department expense budget would increase about $130,000.

The same is generally true of most of the departments funded by the lot assessment. It’s simply costing more to run the association and Viola’s budget proposal reflects that. Perhaps it’s time to say adios to the era of declining assessments.

Viola has been signaling his intentions to propose an assessment increase during his GM Report at recent monthly meetings of the Board of Directors. He has been displaying graphics that illustrate rising public safety costs as a percentage of expenditures.

The graphic showed an assessment increase of $25 in 2024-25 and another increase in the same amount in the year after. No one should pretend that this was not a broad hint of what was to come when he actually unveiled his proposed budget in late December.

In addition to a modest $25 base assessment increase, and $50 increase in the waterfront rate paid by owners of bulkheaded property in Ocean Pines, members of all of the amenities will be facing higher dues this coming year if Viola’s proposals are accepted by the Board.

The increases range from around five percent for golf but more than 20 percent in racquet

sports.

The proposed increases in Aquatics memberships, beach parking and marina boat slip fees hover in the ten percent range. Here, too, Viola provided some hints that increases in amenity membership dues were coming.

At the December board meeting, he displayed a graphic titled pricing study for amenities.

It contained these bullet points:

• Team calculated aggregated inflation numbers for the last five-six years compared to pricing increases

• Benchmarking to comparable amenities was addressed

• Recommendations were made by department heads

• We incorporated the findings into the budget process

It was all rather cryptic, to be sure, lacking detail, but the message for those tuned in was unmistakable: Amenity fee increases were heading our way. Precisely how much would await the release of the proposed budget for next year.

The disparity in amenity fee increase percentages may give some directors cause of concern during the budget review process, but no doubt Viola will be able to defend them.

Golf, for instance, has been a cash cow in recent years, racking up operating surpluses that came close to or even covered depreciation expense. Depreciation really isn’t an operating expense in a non-profit association such as the OPA, so there’s no particular reason earnings need to cover depreciation.

But that earnings were so substantial as to be sufficient to cover depreciation means that golf operations in Ocean Pines are very profitable, and perhaps the amenity that least needs to have any membership fee increases next year.

But the five percent increase in projected golf membership rates is modest, and golf still costs less to play in Ocean Pines than in many other local courses. It should be noted that Viola’s budget shows no increase in golf cart packages or in greens fees paid by OPA members to play the course.

This is wise. Without non-member play, the golf course would not be the success story it clearly is. A well-maintained golf course, and attractive rates for OPA members who don’t buy annual memberships, will continue to generate the revenue that makes the Ocean Pines golf course the leader in net revenue production among all the amenities.

Ten percent increases should not be deal breakers for those who regularly use Ocean Pines pools, purchase beach parking passes, or rent boat slips at the Yacht Club.

Racquet sport membership fees would be twice that, and some directors might be tempted to bring those down, in an effort to equalize the increases across all amenities.

All things considered, this proposed budget by

A well-maintained golf course, and attractive rates for OPA members who don’t buy annual memberships, will continue to generate the revenue that makes the Ocean Pines golf course the leader in net revenue production among all the amenities.

Viola and his team represents a credible effort to bring in sufficient revenues to operate the OPA efficiently and as affordably as possible.

What is complicating this budget cycle is the fact that, at the time of its drafting, and even into the first week of January, Viola and Finance Director/Controller Steve Phillips didn’t have accurate budget numbers for the three food and beverage venues for budgeting purposes.

That awaits the completion and ratification of a new food and beverage contract, whose terms presumably will be reflected in whatever final projections are proposed for the Yacht Club, Clubhouse Grille and Beach Club.

Projections for these departments that appear in the preliminary draft budget may be place-holders awaiting the “real” numbers that presumably will reflect the terms of the new contract. That remains to be seen.

Will they be sufficient to reverse the proposed assessment increase? Probably not. New food and beverage management is not a pretext for overly rosy projections in what may be a shakedown year for a new contractor. ~ Tom Stauss

Josh Vickers, OPA’s chief enforcer of community rules and regulations

Juggling administrative and fieldwork keeps him busy

By JOSH DAVIS Contributing Writer

For Josh Vickers, chief inspector for the Ocean Pines Association’s Compliance, Permits, and Inspections (CPI) Department, the road to his current role has been both diverse and rewarding. With nearly 16 years of service under his belt, Vickers has made a significant impact in Ocean Pines, drawing from a wealth of experiences and skills developed both on the job and in academia.

Vickers grew up in Dagsboro, Del., where he still lives today with his wife, Alexis, and their two children, Connor, 11, and Derek, 7. His ties to Ocean Pines began long before his career started, thanks to his family’s deep roots in the community.

“My two uncles used to work in Ocean Pines,” Vickers said. “One was a police officer, John Wharton, and the other was Donnie Davis, who worked for Public Works. John actually got me the job, and I ended up working under Donnie.”

His first role with Ocean Pines was on the grounds crew, where he tackled tasks like weed-eating, lawn care, and sign installation.

Over time, he took on more responsibilities, including heavy equipment operation, which he counts among the valuable skills he learned on the job.

“I never used to know how to run heavy equipment,” Vickers said. “But now I can jump in a backhoe

and move a mountain if I need to.”

Although he enjoyed his time with Public Works, Vickers didn’t initially view it as a long-term career. He had pursued a college degree in nursing, later switching to biotechnology with a focus on forensic science. Along the way, he earned minors in graphic design and Microsoft Office applications, adding to his already diverse skill set.

“I’ve always kept my opportunities open for forensic science,” he said. “But life happens. Having chil-

Josh Vickers, chief inspector for the Ocean Pines Association’s Department of Compliance, Permits and Inspections

dren, needing medical benefits, and providing for my family meant I had to shift my focus.”

Vickers was able to use more of his collegiate training when he made the switch to the CPI Department roughly seven years ago.

“When I was in forensic science, I was always the safety officer,” he said. “I liked rules, order, and structure. When I saw what the CPI Department did, I realized it was similar. The rules are clearly written, and homeowners have free access to them. It’s black and white. If you don’t follow the rules, you get a violation. That principle really resonated with me.”

Vickers credits his success in CPI to his innate curiosity and his ability to retain information.

“When I started in CPI, I did a lot of ride-alongs with Dino McCurdy, who was the chief inspector at the time,” Vickers said. “He handed me the rulebook, and I read it cover to cover three or four times. I have an eidetic memory, so I can recall what I’ve read when I need it. That makes it really easy to do this job.”

In his role as chief inspector, Vickers splits his time between administrative tasks and fieldwork.

“An average day involves a lot of

administrative work, like ensuring violations are up to date, sending letters, and refiling necessary information,” he said. “I also set aside at least three days a week to go out and handle violations.”

The CPI team includes Vickers, fellow inspector Travis Brittingham, and administrative assistant Lori Timmons. Together, they handle a range of responsibilities, from addressing property violations to processing permits and inspections.

“Travis and I divide Ocean Pines between us, but I often step into his section to help with the workload,” Vickers said. “We also rely on Lori, who doubles as a CPI inspector when needed.”

Code enforcement in Ocean Pines often requires a mix of investigative skills and creativity. Vickers said his background in forensic science has been surprisingly useful in this aspect of the job.

“When investigating a complaint, the problem isn’t always obvious,” he said. “You have to look for clues. For example, if someone reports ducks in a backyard, you might not see them right away. But if you hear quacking, you might follow the sound and find the ducks hidden under a tarp.”

While some violations are straightforward, others require careful interpretation of the community’s rules.

“Livestock is a common issue,” Vickers said. “We’ve had chickens, ducks, and even a pot-bellied pig. The pig was fine because it lived indoors and was treated like a pet, but chickens and ducks are not allowed.”

One of the most frequent issues Vickers encounters involves parttime homeowners who neglect their properties during the offseason.

“Grass violations are a big problem in April and May,” he said. “Second homeowners often don’t arrive until June, but grass grows quickly in the spring. If you’re not always here, it’s your responsibility to set up a landscaper or make arrange-

ments to maintain the property.”

Another common issue involves signage.

“Contractors often leave signs behind after completing a job,” Vickers said. “Homeowners get frustrated because the violation is their responsibility, even though it’s not their sign. Signs are only allowed in Ocean Pines during certain periods, like elections, and they must be removed promptly afterward.”

Beyond code enforcement, Vickers has used his graphic design skills to create a cohesive aesthetic for community signage.

“My goal is to create a unified look in Ocean Pines,” he said. “I’ve worked on signs for White Horse Park, Public Works, and Recreation and Parks. They’re all roughly the same size and color, which creates a consistent, harmonious appearance.”

Vickers is currently working on an OPA Board of Directors’ charging document to further standardize community and street signs.

“It’s a big project, and I plan to start after the holidays,” he said. “I want to ensure everything looks clean and consistent.”

Looking to the future, Vickers hopes to advance within the Association by stepping into a managerial role.

He’s already there to a degree,

“My goal is to become the CPI manager,” he said. “That would allow me to focus solely on the department and its needs, relieving Linda Martin, the director of business administration, of those responsibilities.”

Outside of work, Vickers enjoys spending time with his family, often watching “The Great British Bake Off.”

He’s also active in the community as the second committee chair for Cub Scout Pack 280 in Ocean View, De

“I organize activities, camping trips, and parades,” he said. “We recently designed a float for a parade, which took up a lot of my time this fall.”

Reflecting on his time with Ocean Pines, Vickers said he’s grateful for the opportunities he’s had to grow personally and professionally.

“I’ve learned so much over the years,” he said. “From running heavy equipment to graphic design, I’ve brought my skills together in ways I never expected. It’s rewarding to do something I love while helping the community.”

GIVING BACK TO THE COMMUNITY

‘Ocean Pines Get Involved’ holiday gift-giving

By CINDY HOFFMAN

Contributing Writer

Esther Diller may be a parttime resident of Ocean Pines, but you would never know it, considering her extensive efforts to engage in the community and bring joy and support to others.

She manages the Ocean PinesGet Involved Facebook page, with 1800 followers. The page encourages Ocean Pines residents to engage and give back to the local community. It also promotes local events and socializing amongst the community.

For Christmas, Diller reached out on the Get Involved page and asked people to identify seniors who might be alone this holiday season. She received six names of seniors and then reached out again on the Facebook page to pair them up with people who would be willing to provide gifts to brighten their holiday season.

One person suggested a neighbor on their street who recently lost both her husband and son.

Diller noted that over the holiday season, we naturally think of children, but it can be very lonely for seniors who don’t have family nearby.

“We never remember the seniors,” Diller said. “It can be a lonely day for them.”

Last year, she started her focus on seniors, recruiting people to leave gifts on their doorsteps.

Diller strongly believes in paying it forward. “You never know when it is going to be your time. There could be a day when you are going to run into bad luck.”

The nice thing about Ocean Pines is that people do look out for one another, especially senior residents. She knows of people who check on local seniors, mow their grass or rake their leaves.

She also organized a toy drive for Worcester Gold. She collected presents for 14 people of all ages and abilities.

“We had massive bags for each person.”

For six years, she has organized a food drive for Diakonia around Thanksgiving. This year, Get Involved collected 850 pounds of food.

Last year, they were able to collect over 1000 pounds of food. She

believes the economy impacted this year’s collection, but was still proud of the outcome.

“People are struggling,” Diller said. “There are a lot of people who need help.”

Her efforts through Get Involved are not limited to the holidays. She has also managed “Operation Flip Flop.”

Working with Worcester Gold, she collected flip flops, beach towels and other items for kids for summer camp.

This past collection resulted in two truck loads of goods for the kids.

For those wanting to get more involved in the community, visit Ocean Pines-Get Involved on Facebook.

Mitzvah Team focusing on first responders

By CINDY HOFFMAN Contributing Writer

The holiday season is a time when many think of giving back to those in need. But the Teal Bay Mitzvah Team in Ocean Pines makes this a priority year round.

The Mitzvah Team was born during COVID. Margit Novack moved into her Ocean Pines home full time when COVID hit. She met other neighbors while walking her dogs.

“It was wonderful to live in paradise, but I needed more purpose,” Novack said. So through some brainstorming, she and her neighbors came up with the idea of working together to benefit others.

Novack, who is Jewish, suggested the name. Mitzvah means a good deed, so she suggested calling the group the Teal Bay Mitzvah Team. While she is the only member who is Jewish, they all embraced the name for its meaning.

The team’s first project was international, but they usually try to focus their efforts locally.

That project was a shoe drive for Soles for Souls. They collected several thousand pairs of shoes, which were then sent through Zappos for Good, which provided free shipping, to micro businesses in Africa who then sell the shoes for very low prices.

“We worked well as a team,” Novack said. They enjoyed the collaboration, using their own personal skill sets and doing meaningful work for others.

“We are ready to do another shoe collection this spring,” said Novack.

The Teal Circle Mitzvah team with their collection for the Ocean Pines first responders, left to right, Cheryl Hook, Margit Novack, Cyndy Spicknall, Patty Pickett, Robin Walukonis and Susan Solum.

The team members get together twice a year to brainstorm what their next project should be. Once they have a concept, they interview the organizations, to make sure they are providing a needed service.

They have conducted six projects since their inception, including collecting food for Town Cats and Worcester County Humane Society, a sock drive for local nursing homes, Berlin Head Start and Worcester Gold, collecting hygiene products for Diakonia and other local charities, and creating Valentines Day cards for several nursing homes.

Currently the Mitzvah Team is focusing on our local first responders. Several of the group members have had to rely on first responders for emergencies and wanted to thank them.

“Either you’ve been helped personally by Ocean Pines Police or Fire/EMS, or you know people who have,” Novack said. “This is a way to show your support and give back.”

The team is collecting Keurig K-Cups (caffeinated and non-caffeinated), boxes of sugar, stevia, and raw sugar, Gatorade (diet and regular), bottled water and individual snack bags (requested only for police personnel)

“The police and fire/EMS teams are always there when we need them. This is a small way to say thank you and help make their workday a little easier,” she said.

Donations are being collected through early January and can be dropped off or shipped directly to Novack at 2 Riverside Court in Teal Bay, Ocean Pines.

People who are members of clubs in the area can help publicize their projects.

Novack can provide flyers or press releases to help spread the word.

Novack sees the efforts of the Mitzvah Team in two ways: she considers it a privilege to live in such a great community and to give back to others. She also said it serves a selfish purpose, giving meaning to life and helping them thrive.

“We need to have a purpose and give back,” she said.

For more information about the campaign, contact Novack at margitnovack@gmail.com.

Gifts gathered by the Get Involved Facebook Page members for distribution to a needy family during the holidays.

COVE

CURRENTS

YEAR IN REVIEW - 2024

Litigation, townhouse development, Board elections dominate the headlines

By TOM STAUSS Publisher

It doesn’t require too deep a dive into the published content of the Cove Currents this past year to uncover the top stories of 2024.

The lead story would be the ongoing litigation challenging the governance of Captain’s Cove since the momentous Settlement Agreement of 2012, ushering in an era in which the community’s declarant/developer assumed an out-sized role in determining membership on the Board of Directors.

A key development in the socalled Birckhead litigation actually occurred in December of 2023, but with affects that carried into 2024. It was a bench ruling by since retired Accomack County Circuit Court Judge Revell Lewis III reaffirming an earlier decision declaring that the Captain’s Cove property owners association does not own Captain’s Corridor adjacent to a planned townhome project, located at the east entrance into Captain’s Cove at State Line Road.

The ownership issue is one of the key areas of dispute in a lawsuit filed last year by officers of the Concerned Citizens of Captain’s Cove (CCCC) against the Cove association, formally known as Captain’s Cove Golf and Yacht Club, and CCG Note, the Cove’s declarant/developer.

The plaintiffs, led by CCCC President Teresa Birckhead, had been seeking a court determination that the Cove association owns the entire length of Captain’s Corridor and has the right to deny access to the townhome project from Captain’s Corridor. The other six plaintiffs were CCCC Board members at the time of filing.

Two CCCC directors, later filed

a separate lawsuit against CCGYC and CCG Note over the issue of who’s responsible for build-out of roads in Captain’s Cove. The suit was litigated concurrently with the Birckhead suit.

Judge Lewis back on Oct. 2 of 2023 ruled from the bench that the portion of Captain’s Corridor in dispute is developer-owned, and authorized the attorney for the prevailing side to draft a written order to that effect.

The plaintiff’s attorney, Douglas Kahle of Virginia Beach, objected to the language of the written order, asked the judge to reject it, and then asked for a new hearing on the issue, which the judge granted and set for Dec. 12.

Kahle argued that the judge’s earlier ruling was erroneous and that there is evidence that shows that Captain’s Corridor is part of Captain’s Cove and therefore owned by the Cove association.

Judge Lewis disagreed, and told the litigants that his original order would stand.

Other issues raised by the Birckhead plaintiffs, including the one about responsibility for roads buildout, were raised throughout 2024 in court proceedings presided over by Revell Lewis’ successor as a Circuit Court judge, Lynwood Lewis, a former state senator whose district included Accomack County.

The second judge Lewis delivered a devastating defeat to the Birckhead plaintiffs in a September bench ruling, with a written order memorializing decisions still to be signed at year’s end.

Another major story from 2024 involved a request by the owners of a planned townhome project at the east entrance into Captain’s to extend by two years a conditional use permit for the project, which is opposed by CCCC but supported by most elected and appointed members of Accomack County government.

Among the two dissenters was District 2 Supervisor Roger DeGeorges, whose district includes Captain’s Cove.

The other major story from 2024 was the CCGYC Board of Directors election. Results were announced at the November annual meeting of the association, in which candidates backed by CCG Note were elected,

After the county’s planning commission endorsed by the extension, the county supervisors followed suit, voting 7-2 to extend the conditional use permit, accepting the contention of county planning staff that very little had changed in the proffers and other conditions that were part of the 2022 decision to grant the permit. To Page 49

New Captain’s Cove playground

New this year in Captain’s Cove: playground equipment that is part of the Town Center improvement project planned for a multi-year roll-out. Pictured are Captain’s Cove association member Kristine Haley’s grandchildren, Callie and Garrett, enjoying the new playground while visiting.

Concerned Citizens continue to fund-raise for legal costs

Birckhead says plaintiffs are expecting to pay $152,000 to cover legal fees imposed by the Circuit Court;

Hearn suggests Cove residents avoid throwing ‘good money after bad’ to finance losing legal challenges

By TOM STAUSS Publisher

Tim Hearn, newly elected alternate director of the Captain’s Cove property owners association, suggests that members of Captain’s Cove Golf and Yacht Club

court decisions,” Hearn said. “None of their arguments have convinced anyone in authority on the correctness of their positions.

“On the contrary, they keep losing, and there’s no reason to expect they will do any better if they fool-

ishly try to appeal their losses,” he added.

He said that if CCGYC residens resist the latest appeals for donations from CCCC, it will help Captain’s Cove move on from a negative and non-productive year or more

fighting legal battles in court.

He also said that there’s a question whether CCCC can cover costs incurred by private individuals in their individual capacities.

CCCC was not a party to the lawsuits but all seven plaintiffs were at the time of filing members of the CCCC Board of Directors.

The Cove Currents has obtained a fund-raising appeal posted on social media by Teresa Birckhead, president of the CCCC and one of the seven plaintiffs whose legal challenges have been rebuffed by two Accomack County Circuit Court judges, retired judge Revell Lewis III and his replacement, Lynwood Lewis, no relation.

According to the Birckhead post, “The 4Cs have updated their books and we are ready to accept 2025 annual membership dues and legal fund donations.

“Within the next 45 days (the message was posted in early December), the seven plaintiffs on the lawsuit are expected to pay the $152,000 legal fees to the court,” Birckhead wrote.

Judge Lewis in a bench ruling last year ordered the plaintiffs as the losing party in the litigation to cover the legal fees of one of the prevailing defendants, CCGYC.

The other prevailing defendant, CCG Note, the Cove’s declarant/developer, has not submitted a request to have its legal fees covered by the plaintiffs, but there’s no reason it can’t choose to do so at some point in the proceedings.

If it does, and should the Court grant legal fees to CCG Note, then CCCC will be under even more financial pressure to raise funds to cover prior costs.

Birckhead in her post said that “each of us are taking out individual personal loans (to cover legal costs) but would like to reduce the amounts. Remember, all these folks took a risk to file this lawsuit and they did so for the good of all the members of the Cove,” she wrote.

Hearn was not persuaded.

He told the Currents that it’s delusional to argue the litigation benefited the Cove in any way.

Birckhead said that “those of you who attended the [Court] hearings and trial know why an appeal is so u

Concerned Citizens

From Page 42

important to our community. Please, help us help our community and reduce this individual liability.”

Hearn said the best way to reduce individual liability is to decide not to file an appeal and risk additional legal cost when the appeals fails.

Birckhead suggested that if 1,000 Cove residents donated to the legal fund at $100 each, “we could easily wipe this burden off your neighbors. We could then just concentrate on the appeal and fundraising for our own attorney fees.”

As 2024 drew to a close, attorneys for Captain’s Cove Golf and Yacht Club and CCG Note, the Cove’s declarant/developer, were still waiting for Accomack County Circuit Court Judge Lynwood Lewis to sign a recently submitted draft order reflecting a September bench decision on the Birckhead and associated Leslie-Reece litigation.

The plaintiff’s attorney, Douglas Kahle, had agreed to the text that had been drafted by the defendants’ attorneys while continuing to object to the judge’s decisions that are contained within it.

In effect, Kahle is agreeing that the draft order accurately reflected the judge’s decisions. But he’s reserving the right to challenge the findings on appeal if authorized by his clients.

With attorneys for both sides apparently notifying the Court that there is agreement on the text, with no hearing needed to argue over the order’s language, there is little reason for the judge not to sign off.

Nontheless, he had not done so by year’s end, according to sources, with no indication on when he might do so.

Once the order is signed, the window opens for the plaintiffs to appeal various decisions by the judge in which they disagree.

There have been various statements on social media indicating that an appeal on at least some of the rulings by the judge are possible.

An earlier decision regarding ownership and access to Captain’s Corridor by Judge Revell Lewis III who handled the earlier phase of the protracted litigation is perhaps the most likely item to be appealed.

Appeals to the Court of Appeals must be considered under state law, with the process taking up to two years or even more.

“This should all be over,” Hearn said.

Jan. 3 document drop suggests Birckhead litigation is not ending soon

Unidentified residents retain attorney to challenge 2024 Board election

By TOM STAUSS Publisher

Adocument made available to the defendants in the Birckhead and Leslie/Reece litigation on Jan. 3 suggests that 2025 is beginning in the way it ended, with the Captain’s Cove community fac-

ing continued courthouse drama over issues that have already been extensively litigated.

One of the documents suggest that a new issue might make its way to the courthouse.

“I have been retained to represent a few lot owners in Captain’s

Cove who view the recent election of the Board of Directors for the Association as void and/or voidable for a number of reasons,” attorney Zachary A. Handlin wrote in a letter to the Captain’s Cove Golf and Yacht Club and Board members elected in November.

Recipients of the letter include directors Michael Glick, Jim Silfee, Roger Holland and John Costello, along with alternate director Tim Hear.

Handlin, of the Virginia Beach law firm Kinser, Lettwich and Kahle, said his clients, who are not named, “contest the election of more than three persons to the Board who are affiliated with or controlled by CCG Note (declarant) in contravention” of the 2012 Settlement Agreement. It’s a document that has played an outsized role in the affairs of the Cove association over the past 12 years.

The attorney said his clients contest the use of the three to one voting rights in the recent election, in which the declarant cast three votes for every lot it owns in Captain’s Cove, about 1,200 of them.

He further said his clients object to the conduct of the election, “discrepancies in the member’s list for voting, and the lack of transparency in the pre- and post-election process. Other matters may appear as the matter develops,” which could hint at the possibility of future litigation.

Handlin said his letter was aimed “to serve as notice pursuant to Va. Code, subsection 13.1-861 that members of the Association are aggrieved by your election to the Board of Directors for Captain’s Cove.”

The second letter, this one from Handlin’s colleague, Douglas E. Kahle and sent to attorneys for the Cove association and CCG Note, gave notice of the plaintiffs’ objection to a court order by Accomack County Circuit Court Judge Lynwood Lewis on issues that have been litigated for the past year and a half, or so. It also probably covers a decision by a retired judge in 2013 that pertains to the ownership of Captain’s Corridor.

Kahle’s letter, which was actually sent to Circuit Court Clerk Talia Taylor with copies to the defendants’ lawyers, asked that she file the objections to the final order as soon as Judge Lewis signs it.

The objections raise no issues that were not extensively litigated, with the judge in every instance ruling in favor of the defendants.

On the Captain’s Corridor ownership issue, Kahle alleges that the judge made nine separate errors, including his award of attorney’s fees to the Cove association.

[See the 2024 Year in Review article in this edition of the Cove Currents for a detailed summary of Kahle’s objections to the court’s decisions.]

FORECLOSURE SALE OF REAL ESTATE IN CAPTAIN’S COVE

January 17, 2025, 11 A.M.

To be held at the Marina Club in Captain’s Cove Subdivision 3323 Dock Ct., Greenbackville, VA 23356

The following properties will be auctioned:

TERMS: Minimum Bids will be announced prior to the start of the auction on the date of sale. Announcements made at auction time take precedence over any print, electronic, or verbal information, including but not limited to the Minimum Bid. Successful bidder will be required to deposit with Trustee a deposit (non-refundable) in an amount equal to the lesser of $5,000 or 10% of successful bid in cash or certified funds at time of sale, with the closing to occur within thirty days of the date of said sale. Written oneprice bids will be accepted for any of the properties pursuant to the terms set forth in Va. Code § 55.11833. There is no warranty relating to right, title, interest, or the

like in this disposition. Property is being sold pursuant to Va. Code §55.1-1833, and title will be conveyed pursuant to statute and subject to all liens or encumbrances as provided in said statute. All information for review by appointment only. Notwithstanding the Minimum Bids announced at the time of sale, the Trustee reserves the right to accept and/or reject all offers. Time is of the essence. Other conditions may be announced at the sale.

TRUSTEE: Pender & Coward, P.C., 222 Central Park Ave., Virginia Beach, VA Phone: (757) 490-6261

Majerus, Hearn carve out roles in new finance committee

By TOM STAUSS Publisher

At the initial meeting of a new finance committee established by the Board of Directors in November, two Captain’s Cove Golf and Yacht Club directors volunteered for niche roles on the new panel, with the Board expected to ratify the roles at its meeting in late January.

At the Board’s Nov. 12 monthly meeting, the directors had agreed to CCGYC President Mark Majerus’ proposal to create a finance committee of up to four Board members to ease the work load of the full Board.

Budget and substantive policy issues will still be handled by the entire Board.

Areas that the finance committee will focus on include plans to implement the Cove’s capital investment policy, dealing with the member accounts receivables issue, and working with the Property Management Team on jump-starting the Cove’s foreclosure process.

When the new committee met Dec. 12 to organize itself, Majerus offered to oversee efforts to manage the capital investment, and alternate director Tim Hearn volunteered to oversee the accounts receivable issue and the related issue of reinvigorating the Cove’s foreclosure process. Previously he said that legal teams could be formed to handle as many as 100 cases that could lead to foreclosures on an expedited basis.

Other directors attending the meeting, Dave Felt and John Costello, did not object to Majerus or Hearn’s roles within the committee.

The roles for Majerus and Hearn won’t need to be ratified by the entire Board when it meets in January.

The Board will review policies developed by the committee, including the formal committee charter and investment policy guidelines. Any ideas Hearn has on the receivables issue also would be reviewed by the entire Board.

Majerus asked Felt if he wanted to “specialize” in a role on the committee and he said he would consider it.

Costello was attending to keep himself up speed on its activities and has declined at this time to become a member of the committee, subject to change in the future.

Much of the Dec. 12 committee meeting was devoted to a discussion of the association’s investment policy.

Majerus said a fundamental feature of the policy should be the safety and protection of principal.

He suggested that investments to improve the rate of return could be somewhat liquid, but that return should be subordinate to principal safety.

While the committee would select the association’s investment vehicles, such as certificates of deposit or U.S. treasury bills, Majerus made it clear that the entire Board would review the investments on a quarterly basis.

Felt mentioned that investments should be FDIC insured, noting that there’s a $250,000 cap on accounts insured by the FDIC.

Later he asked whether Taylor Bank, the Cove’s current lender and bank that holds the Cove’s operating accounts, has a division that manages larger investments for clients.

Majerus will be looking into that.

Hearn said that he’s not certain that the association will need these more sophisticated financial management services, noting that CCGYC has been investing its limited resources in various community improvement programs, and that the Board will need to be mindful that substantial resources will be needed later in the decade to upgrade the Town Center.

It’s been suggested that loans might be necessary to finance the upgrades that have been anticipated, including a new Town Center building.

Hearn said it may be “premature” to adopt any kind of new investment policy at this time, but he seemed open to whatever Majerus might propose.

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YEAR IN REVIEW - 2024

including two incumbents, CCG Note principals Jim Silfee and Michael Glick. The election was marked by the return to the Board of Tim Hearn as an alternate member; Hearn served as a director and president of the Board for most of the years between 2013 at 2022. Also elected were CCG Note principal Roger Holland, a former director, and John Costello, a former Captain’s Cove department head who had moved out of Captain’s Cove but then purchased a lot to enable him to run for the Board.

The four winners were aided in their vote tallies by CCG Note taking action consistent with the 2012 Settlement Agreement in which CCG Note cast three votes for each of the lots in inventory, about 1200 of them. The three-to-one provision extends back to the original founding documents of the Cove association.

They defeated five candidates supported by CCCC. These candidates did comparatively well, tallying more than 1,100 votes. Had CCG Note not taken advantage of the three votes per lot provision, Silfee, Glick, Holland, Costello and Hearn still would have won, but not by nearly as much.

In a subsequent Board meetings, the directors re-elected Mark Majerus as CCGYC president.

The following are the top stories of 2024 in Captain’s Cove, by month, as reported in the Cove Currents.

January edition

This edition summarized the court ruling concerning Captain’s Corridor ownership dating back to October and then reaffirmed in December.

In the Oct. 2, 2013, hearing, Judge Lewis ruled from the bench that the Captain’s Cove association does not own roughly 1,200 feet of Captain’s Corridor that abuts the planned townhome project.

He said the road is owned to the center line of Captain’s Corridor by the adjoining property owners. In this case, it’s the owners of the planned townhome project on the Hastings/Mariner parcel and the adjacent part Section 14, most likely owned by Cove developer CCG Note.

He determined that CCGYC lacks the authority to restrict use of the road only to Captain’s Cove property owners and residents, thereby preventing access by future residents of the townhome project from Captain’s Corridor.

More specifically, he said that the ownership “is subject to the right of ingress and egress by persons who had been using it [Captain’s Corridor]” previously.

That would seem to suggest that in the judge’s opinion it’s open to the general public as well as Captain’s Cove residents who have been using it since the 1970s.

February edition

Captain’s Cove Golf and Yacht Club President Mark Majerus during the Jan. 22 Board of Directors said lawyers for CCG Note, the Captain’s Cove declarant/developer, and the CCGYC, the Cove’s property owner association, are meeting in an attempt to resolve an issue over access to Treasure Island, the community’s dredge spoil site.

CCG Note has said that it owns a short causeway called Treasure Island Drive that connects the island with High Seas Drive in Section 3. Majerus previously has said that he has uncovered evidence that the Cove POA owns the access road at issue.

But he subsequently recanted that position after more research.

In a December post on the Member Forum, Majerus said he had been “unaware that a subsequent deed of correction was filed to the above referenced land deed recording. Then in 2011, Treasure Island Drive was listed as Parcel 7 of Exhibit A of CCG Notes Trustees Deed. Treasure Island Dr appears has been owned by CCG Note for the 12+ years.

“This is why one pays for Title Search when purchasing or investigating property ownership. My mistake for assuming that this lot is among the others that are ill-defined in the tax parcel tool. My apologies for any misunderstandings that may have resulted,” he wrote.

In July of 2013, Majerus announced that CCG Note was withdrawing its permission for CCGYC Public Works crews to pass through what he said at the time was Note-owned property on the mainland side of Treasure Island,

the community’s dredge spoil site that is near capacity.

Access to Treasure Island would be needed in order for CCGYC crews to begin work on a clean-out of the spoil site so it can continue to be used for that purpose, Majerus said then.

Access also would be needed for crews to monitor the site for this year’s dredging program.

In June of 2023, former CCGYC President Tim Hearn announced that CCG Note would no longer be willing to make land it owns in Sections 14 and 15 available for use as a dredging spoil site, either as a location for the transfer of spoil from Treasure Island, which is nearing capacity and will likely reach capacity after this year’s dredging season, after which it can no longer be used, or as a new dredge spoil disposal site after a clean-out.

Restoration of that option is contingent on the Birckhead plaintiffs dropping their pending suit against CCG Note, Hearn said at the time, or a resolution of the suit favorable to the defendants.

March edition

It was announced that CCG Note, the declarant/developer in Captain’s Cove, has sold the 24-acre Hastings/Mariner property near the Cove’s east entrance, to an investment firm based in Harford County, Md., called R2JS, LLC. It’s a subsidiary of Scitech Services, a 30-year-old company that provides scientific, engineering and management solutions, primarily to government customers, according to its Website.

The company was recently written up in Baltimore Business Journal as the developer of a former vacated industrial site in Aberdeen that is being converted into a hub for contractors.

County land records show that the transaction for the Hastings/Mariner closed the first week of October. The parcel, which has received zoning approval for a 142-unit townhome development, sold for $725,000. CCG Note bought the property in November of 2021 from the Hastings/Mariner family for $250,000, according to land records.

The sale is the latest indicator that CCG Note is moving to separate itself from actions and activities that are controversial within Captain’s Cove. Earlier this year, the two CCG Note investors who are members of the Captain’s Cove property owners association Board of Directors decided to recuse themselves from voting on any issues that come to the Board. Abstentions have followed ever since.

Hearn was instrumental in arranging the sale of the Hastings/Mariner property to R2JS. According to the Baltimore Business Review article, he played a role in the subsidiary’s creation more than ten years ago.

He told the Cove Currents that he is not an investor in Scitech Services or R2JS, but will be managing the development of the property for the owners.

“My relationship [with R2JS] is similar to my relationship with the investors in CCG Note,” Hearn said. “I work with developers, act as a broker, and will oversee a project as it develops.”

Hearn said CCG Note focused on the early phases of land development, including the initial land purchase and navigation through the rezoning, engineering and permitting processes, “which often involves controversy and opposition by some neighbors” and litigation.

In another story reported in the March edition, it was disclosed that the new owner of the 24-acre Hastings/Mariner property near Captain’s Cove east entrance, R2JS of Harford County, Md., had requested a two-year extension of the original two-year conditional use permit granted for the property in May of 2022. That conditional use was set to expire in May of 2024.

The conditional use permit gives the owner/developer the ability to develop the property as a townhome project with amenities and commercial uses. It would also allow the developer to include land on the site for a future Greenbackville Volunteer Fire Department emergency medical facility.

The conditional use permit was part of action taken by the Board of Supervisors in May of 2022 rezoning the property from R-1 residential to a village overlay zone, which was granted in perpetuity. The conditional use permit had a two-year window, conditional on the outcome of two issues then in question: access to the property via Captain’s Corridor and availability of water and wastewater treatment services through a public utility, u

From Page 49

Aqua Virginia.

YEAR IN REVIEW - 2024

Litigation in Accomack County Circuit Court has confirmed that the owner/developer can access the townhome property from Captain’s Corridor. As a result of a court decision in December and confirmed in a written order issued in early February, R2JS actually owns west of the centerline of the road from State Line Road down the 1200-foot length of the property that adjoins Captain’s Corridor.

A case involving Aqua Virginia also was resolved in a way that suggests that Aqua Virginia can provide water and wastewater treatment services to the townhome project from the utility’s Captain’s Cove facilities. The court determined that a 2016 sale of about ten acres in Section 14 to Aqua Virginia by the Cove property owners association, Captain’s Cove Golf and Yacht Club, had been authorized by the State Corporation Commission (SCC).

He accepted a motion by Aqua Virginia attorney John Byrum to dismiss the complaint by the seven plaintiffs seeking to enjoin future use of that acreage by Aqua to construct what are called rapid infiltration basins, or RIBs, on grounds that the Circuit Court lacked subject jurisdiction over the issue.

“I will grant the request [for dismissal] subject to the SCC,” he said.

The Accomack County Planning Commission was scheduled to consider the conditional use permit extension at a scheduled hearing on Wednesday, March 14.

April edition

The Accomack County Planning Commission voted 6-3 after a public hearing March 13 to forward a favorable recommendation to the Board

of Supervisors for a two-year extension of a conditional use permit for a planned townhome project at the 24-acre Hastings/Mariner property near Captain’s Cove’s east entrance off State Line road.

The extension, recommended by the county’s planning staff, was requested by R2JS, of Edgewood, Md. The existing permit, granted in April of 2022 to facilitate development of the Hastings/Mariner parcel into a 140-unit townhome community, expires in May of this year.

CCG Note, the Captain’s Cove declarant/developer, sold the property to R2JS in October of 2023.

Lee Pambid, Deputy County Administrator of Planning and Community Development, said the request for an extension preserved, except for one minor date change, all of the conditions and proffers of the 2022 condition use permit.

He said media reports of changes in proffers were not verified in the actual application for an extension.

Tim Hearn, R2JS’s local representative, told the Cove Currents that he had requested a meeting with Roger DeGeorges, elected last November to the Board of Supervisors from the district that includes Captain’s Cove, to discuss possible changes in proffers attached to the project.

DeGeorges opted not to take a meeting with Hearn and instead advised Hearn to work with the planning staff in making any changes in the proffers.

“The result is that we kept all of the conditions and proffers from 2022,” Hearn said. “There are no changes,” which is what Pambid said during his brief presentation.

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YEAR IN REVIEW - 2024

Pambid did not make a detailed defense of the project, but did say it was consistent with the county’s desire for more higher density housing.

Commissioner members asked the status of two conditions that had been placed on the conditional use permit two years ago. One had to do with the ownership status of Captain’s Corridor and the other concerned the availability of water and wastewater treatment services to accommodate the project.

Mark Baumgartner, a Virginia Beach lawyer representing R2JS, said a Circuit Court judge had issued a formal written order Feb. 1 declaring that Captain’s Corridor is developer-owned in the area of the Hastings/Mariner parcel, with ownership extending to the center line of the road. An access easement is granted to each party to transit the other’s half of the Captain’s Corridor, he said.

The same judge, Revell Lewis III, now retired, also said that any question about the availability of water and wastewater treatment services to serve the townhomes is a question for the State Corporation Commission to decide, and that the commission had approved rapid filtration basins for sections in Captain’s Cove as a way of expanding treamtne capaicity in the Captain’s Cove system, Baumgartner said.

Aqua Virginia, the Cove’s utility operator, has said there is adequate capacity in its systems to accommodate the townhome project when it’s built.

A new lawsuit filed against Captain’s Cove Golf and Yacht Club by two Captain’s Cove residents, Linda Reece and Bill Leslie, in early March raises an issue that is also being litigated in the Birckhead case that was headed for trial in Accomack County Circuit Court in June.

The issue is who is responsible for the build-out of roads in Captain’s Cove - CCGYC or declarant/developer CCG Note.

Reece and Leslie, Board of Directors members of the advocacy group known as Captain’s Cove Concerned Citizens, are two of seven plaintiffs in the Birckhead litigation.

The plaintiffs are asking the Circuit Court to find that CCGYC governing documents, particularly the Declaration or association bylaws, do not authorize road construction. They contend that these documents only authorize the association to maintain and improve already existing roads.

They contend further that plans to apply tar and chip to areas “where no tar and chip road” exists constitutes building new roads, not improving or maintaining them.

The plaintiffs are asking the Court to enjoin the associatin from building new roads and from borrowing money or levying assessments against Cove property owners for new road construction.

Through their attorney, Douglas Kahle of Virginia Beach, Reece and Leslie are also asking the Court to charge the association for reasonable attorneys fees.

The suit references a document issued late in 2023 called the Road Improvement Plan that lists nine “unfinished road projects” which the plaintiffs contend show no evidence of any construction. A planned Mutiny Drive extension is an example of that.

The suit also cites Seaview Street, a proposed $1.2 million proposed road project that remains in a protracted permitting phase with the U.S. Army Corps of Engineers. The area where the road is planned contains “only large sandy areas where no road exists.,” according to the suit.

Other unbuilt roads in the plan include Davey Jones Boulevard.

The primary difference between the two lawsuits with respect to roads build-out is that the Birckhead litigation seeks to enjoin construction of Seaview Street with association funds, while the Reece-Leslie is more comprehensive, citing Seaview and other roads in the 2013 Road Improvement Plan.

But the overlap has been noted, with CCGYC President Mark Majerus the first to mention it during the March 25 Board of Directors meeting.

Cove directors who commented on the new lawsuit were critical of it,

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YEAR IN REVIEW - 2024

contending that it costs money to defend it in in the initial phases because expenses fall within the policy’s deductible. Majerus said that at some point the association risks losing its insurance coverage if members continue to file lawsuit, with devastating consequences.

No one will want to volunteer to serve on the Board if “errors and omissions” coverage is no longer of-

fered, Director Dave Felt said, adding that major builders who could buy up unimproved lots in bulk may be discouraged from doing so by too much litigation in Captain’s Cove.

Directors also said lawsuits of this nature take up valuable staff time in preparing discovery documents.

They said they wished that the plaintiffs had taken the issue through the normal complaint pro-

cess rather than resort to litigation.

The CCGYC and CCG Note position on roads build-out is that a former declarant/developer, First Charter, conveyed roads ownership in Sections 1-13 to the association, including the obligation to build them, back in the 1970s.

Since the 2012 Settlement Agreement, CCG Note has been paying the interest on private loans used to finance road construction in Cap-

tain’s Cove. Three loans have been executed thus far, at a carrying charge of 6 percent annually.

May edition

When the Board of Supervisors met May 15 to take up the proposed two-year extension of a conditional use permit for the planned Hastings/Mariner townhome project, proffers by the former owner of the land where the project is planned played a key role in the supervisors decision to approve the extension.

The former owner, CCG Note, sold the property to R2JS of Edgewood, Md., in October of last year.

The same proffers that were in play when the supervisors approved the original conditional use permit for the project in April of 2022 have been inherited by R2JS. A proffer is a promise to supply some service or guarantee in exchange for obtaining the conditional use permit.

The proffer that probably has received the most public scrutiny is a promise by the new owners that they will deliver a pad-ready site to the Greenbackville Volunteer Fire Department, of approximately 1.5 acres, for a new emergency medical service station.

In addition, the developer has agreed to provide up to $430,000 for the cost of a new ambulance and toward the cost of the new EMS station. The 2022 proffer is conditioned on the developer proceeding to build out the project.

The 2022 proffer included two potential sites for the new EMS station, one directly fronting on Fleming Road in Section 13, and the other a site within the Hastings/Mariner project. While the GVFD prefers the Fleming Road site because it would enable faster emergency response times in other areas of the county, that option has been opposed by some within Captain’s Cove.

As a result, CCG Note had concluded that it would be prudent to proceed with planning for a pad site within the townhome project.

In addition, the proffer indicates that the property developer will coordinate with the Captain’s Cove property owners association for the design, installation and payment for a new entrance into Captain’s Cove. While the new entrance will be deemed a private road to be owned

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YEAR IN REVIEW - 2024

by the Cove POA, the proffer says the new entrance will be unrestricted in use, that is, open to the general public.

The proffer says the owner/developer will not rent out units in the new subdivsion for daily, weekly or seasonal rentals, “so long as the CCG Note retains ownership of the Mariner project.”

That provision may no longer be applicable because CCG Note no longer owns the property, but it’s also possible that R2JS won’t want to rock the boat and change any proffer from 2022.

Another profffer indicates that the owner will make a $10,000 donation to the Ripken Foundation’s STEM funding in Accomack County schools, prior to the issuance of a building permit for any townhome or commercial building or EMS building on the Hastings/Mariner site.

The 2022 proffer says the developer will be responsible for landscape maintenance, with dense shrubbry designed to screen parts of the devlopment from the view of motorists on Stateline Road.

The businesses that would be added to the project would be restricted to retail, office and childcare services.

June edition

The Accomack County Board of Supervisors voted 7-2 on May 15 to extend by two years a conditional use permit for the planned Hastings/Mariner townhome project, overriding the objections of District 2 Supervisor Roger DeGeorges and three Captain Captain’s Cove residents who spoke out against the project in a public hearing that preceded the vote.

The planned 140-unit townhome project is in DeGeorge’s district that includes Captain’s Cove and the community of Atlantic as its major population centers. The 20-acre site is located at the east entrance to Captain’s Cove off Stateline Road. The Board’s majority accepted the planning and zoning staff recommendation and the recommendation of the county’s Planning Commission in voting for the extension. An initial two-year conditional use permit was granted by the supervisors effective in May of 2022.

R2JS of Edgewood, Md., as the

owners of the property where the townhome project is planned requested the extension. CCG Note, the Captain’s Cove declarant/developer, sold the property to R2JS in October of last year.

Lee Pambid, deputy county administrator of planning and community development, outlined the staff rationale for recommending the extension. He told the supervisors that very little had changed since they approved the original conditional

use permit two years ago.

Pambid said that litigation intended to impede the townhome project was in the process of being worked through, there continues to be a demand for higher density development in Accomack County, and the Planning Commission endorsed the extension in a 6-3 vote on March 3.

He said the rationale for supporting the extension was the same as it was in 2022. Except for some minor

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tweaks, the permit is the same as it was then. Among the changes is the change in ownership, with R2JS the entity requesting the extension. Representing the owners, attorney Mark Baumgartner of the Virginia Beach law firm of Pender and Coward, said that some of the issues in the litigation referred to by Pambid have been resolved at the Circuit Court level in the favor of the developer.

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From Page 55

YEAR IN REVIEW - 2024

One issue pertained to the availability of adequate public water and wastewater treatment services to serve the townhomes. Aqua Virginia, which owns and operates Captain’s Cove water and sewer utility, has said that adequate capacity exists. The Circuit Court judge who presided ohad determined that it’s an issue to be dealt by the State Corporation Commission.

Baumgartner said another issue, ownership of Captain’s Corridor in the vicinity of the townhome project and access to it, has also been resolved in the developer’s favor. The litigants, Theresa Birckhead, Bill Leslie and five other Cove residents, have vowed to appeal that decision.

The attorney in response to a question said that the townhomes “could be rented or sold to homeowners.”

That seemed to be a response to those who contend that the project would become a community of renters that would bring down property values in Captain’s Cove.

Although the conditional use permit contains a proffer for a future site of an emergency medical facility to be operated by the Greenbackville Fire Department on Fleming Road in Section 13 of Captain’s Cove, Baumgartner said a more likely location would be a commercial parcel within the Hastings/Mariner property.

The three Captain’s Cove resident speaking against the conditional use permit were Leslie, Birckhead and Larry Berger.

July edition

The parties to the Birckhead and Leslie-Reece lawsuits were awaiting rulings from Accomack County Circuit Court Judge Lynwood Lewis Jr. following a two-day trial on the merits of four issues that were debated June 11 and 12.

At the beginning of the two-day trial, there were five issues that were scheduled for presentations by the litigants, that include Captain’s Cove Golf and Yacht and declarant CCG Note as defendants and seven directors of the Concerned Citizens of Captain’s Cove as plaintiffs.

A second lawsuit, heard concurrently by the court during the two-day trial, was filed by CCCC directors Bill Leslie and Linda Reece.

The plaintiffs are seeking a judgment that the CCG Note is responsible for building out roads in Captain’s Cove

One of those issues was voluntarily dismissed without prejudice by the plaintiffs early in the trial.

It involved a contention by the plaintiffs that a developer that has been active in Captain’s Cove had not paying assessments on lots sold to it by CCG Note, and whether this was a benefit to CCG Note.

Several months ago, the CCGYC Property Management Team verified that Stone Wall Capital had been delinquent in paying assessments but subsequently had paid them in their entirety.

The plaintiffs’ lawyers told the Court that his clients were no longer contesting this issue, and that left the number of outstanding issues to four.

Judge Lewis made no indication of how soon he might rule on these remaining issues.

The issues that were contested during the trial include:

• A dispute over whether CCG Note is required to service a loan mentioned in the 2012 settlement agreement between CCGYC and CCG Note, but which the defendants assert was never executed by the Cove association Board of Directors at the time.

Short of a court order requiring CCG Note to write a check to the Cove association covering annual payments of $50,000, another possible outcome would be a court order requiring the association to sue CCG Note to recover the disputed annual payments.

CCG Note is seeking an outcome in which it is absolved of any responsibility for repaying a loan that it contends does not exist.

The declarant since 2012 has paid the debt service on three separate private loans used for road construction in Captain’s Cove, including build-out in Sections 12 and 13.

Should CCGYC decide it wants to proceed with building out additional roads, the declarant has said it will pay the debt service on any loan up to

$50,000.

• whether CCG Note should have installed or could be ordered to install bulkheads on two lots it owns on Starboard Street.

• whether CCG Note is authorized in governing documents to convey building lots to the Greenbackville Volunteer Fire Department for possible use as a future site as an emergency medical satellite facility or firehouse.

This issue seems to be moot, as the declarant is no longer interested in having a facility built on numbered lots in Section 13 of Captain’s Cove. CCG Note is no longer party to the townhome project for which a proffer of land to GVFD was contingent on obtaining a conditional use permit for the property.

What is known as the Hastings/Mariner parcel was sold to R2JS of Edgewood, Md., last year.

That ownership group seems unlikely to have any interest in using Section 13 building lots that border Fleming Road as the site of an EMT building.

The Section 13 lots were part of the 2022 proffer and technically this proffer has not been rescinded. Because it’s a site that is close to others within Accomack County served by the Greenbackville Fire Department, that organization is said to prefer it over the townhome location.

CCG Note’s attorney, Mark Baumgartner, told the Board of Supervisors during a public hearing on a conditional use permit for a townhome development that the facility more likely will be built on acreage to be donated by the developer within the 20-acre townhome complex, located at the east entrance into Captain’s Cove at State Line Road.

• whether Seaview Street has to be built by CCG Note or is the responsibility of the Cove POA to complete.

Currently it’s on a priority list that a working group on roads has assembled.

But it’s in a contested area that is awaiting a wetlands delineation from the U.S. Army Corps of Engineers before CCGYC Board of Directors can take action to pave this street.

The Leslie-Reece suit deals with the issue of whose responsibility it is to build out roads in Captain’s Cove, while the Birckhead suit is focused on Seaview Street.

Two other issues in the contentious litigation have already been addressed by the Court, one of them involving Aqua Virginia, the Cove’s water and wastewater treatment utility.

August edition

Two incumbent members and two former members of the Captain’s Cove Golf and Yacht Club’s Board of Directors have filed for re-election, seeking new three-year terms.

The filing deadline for the Board of Directors contest is Aug. 1, and ten candidates eventually filed for four seats on the Board along with one alternate.

The incumbent directors running for reelection are Jim Silfee and Michael Glick. Silfee and Glick are investors in CCG Note, the Cove’s Declarant.

Other candidates who have filed include Roger Holland, John Costello, Gini Weslowski, Cathrine Malstrom, John Hvizda and Patti Borrelli.

Holland is a former director who like Silfee and Glick are CCG Note investors.

Costello is a former director and department head in Captain’s Cove, but recently relocated and is no longer a full-time employee.

If elected, he has said he will resign from any remaining paid duties. He bought a lot in Captain’s Cove making him eligible to run for the Board. There are four directors on the current Board whose terms are expiring this November, to be filled in the election,

In addition to Glick and Silfee, the seats are currently held by Frank Haberek and George Guthridge, neither of whom had filed for reelection as of July 26.

In addition, there is a contest for one alternate seat on the Board.

As of July 25, one Cove resident, Tom Polaski, had filed an application for election to that position.

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Former director and CCGYC President Tim Hearn later filed for the alternate seat.

Concerned Citizens of Captain’s Cove President Teresa Birckhead in a recent social media post indicated that she is supporting four non-incumbents running for the Board this year.

“The Class A members need 1,200 votes to oust the Declarant,” she wrote. “We have two choices for this election. We either unite and vote for the same candidates, or we divide our votes and the Declarant stays in control. We need everyone to vote.”

She said that out of 2,400 lot owners in Captain’s Cove, 500 are not eligible to vote, leaving 1,900 eligible.

Birckhead said that Weslowski, Malstrom, Hvizda and Borrelli are running as a team. Polaski was a team member as well.

“They are active community members who are well respected. I know all of them and can vouch that they are all committed to the best inerest of community members,” she said.

She then launched into reasons why CCGYC members should vote for her recommended slate.

“Are you tried of all the self-dealing activities of the Declarant? The misuse of our dues? The ridiculous amounts of lawsuits brought on from authoritarian decisions? The unrealistic budget decisions? The lack of community representation from members? The misuse of selective committee members? Funding items not related to amenity maintenance? Ridiculously high annual dues paying for these things?

“If so, let’s unite and get these folks on the Board of Directors!” she said.

September edition

Judge Lynwood Lewis called the attorneys who tried the Birckhead and Leslie/Reece cases to his Accomack County Circuit Court courtroom on Tuesday morning, Sept. 24, when he was expected to release his decision in the protracted and contentious litigation that has roiled Captain’s Cove since 2022, when an earlier version of case was filed.

It was subsequently voluntarily dismissed by the plaintiffs, but then refiled several months later.

The Plaintiffs in the case are the seven officers of the Concerned Citizens of Captain’s Cove, whose president is Teresa Birckhead.

Also expected on Sept. 24 is a decision in the companion case initiated by two CCCC officers, William Leslie and Linda Reece.

The issue in this latter suit is who is responsible for building roads in Sections 1-13 of Captain’s Cove, the declarant CCG Note or Captain’s Cove Golf and Yacht Club, the property owners association that governs Captain’s Cove.

The plaintiffs are seeking a determination by the judge that the Cove’s governing documents do not confer upon the CCGYC Board of Directors the right or obligation to build new roads in Captain’s Cove. They are a seeking a court order to enjoin the defendants from doing so in the future.

At the conclusion of a two-day trial in June, Judge Lewis had made it clear he had no target date for releasing a decision in the cases.

“All right. I want to thank you all, but this is a -- everybody did a wonderful job at presenting their case, and you’ve obviously given me a lot to consider. So for those of you in the audience who will be disappointed, this is not like TV. I’m not going to bang the gavel and make a decision here.

“It’s going to be quite some time before we get a final decision in this because there’s a lot of information to process and the arguments have all been well made and well placed,” he said.

Also reported in the September edition, CCGYC announced the resolution of two active Accomack Circuit Court cases involving BIC Construction Inc., Cove property owners David and Stephanie Richards, Coveside Properties, and Captain’s Cove Golf and Yacht Club.

According to a statement from CCGYC attorneys, these cases were quite complex, and there were wide ranging issues, including a substantial issue of enforcement of the Association’s declarations and covenants, the enforcement of County ordinances, and whether the Association had the power to enforce county ordinances and/or compel the county to do so.

The litigation was initiated in large part due to the Association’s frustration caused by the county’s lack of enforcement of the 35-foot height restriction in the County ordinance, which was a significant part of the case. While the County was not a party to the litigation, its staff was drawn in as potential witnesses.

The circuit judge who was designated to handle the case asked the parties to arrange a settlement conference in which all the parties participated, including the judge and the Accomack County attorney. A settlement agreement was reached, but the terms are confidential under a non-disclosure agreement.

Nontheless, it appears as if the CCGYC’s objectives were substantially met in the settlement.

“Even though the County was not a party to the suit, the settlement achieves our goal of enforcement in the future without the delay and expenditure of funds involved with a trial and potential appeal of these two cases thereafter,” CCGYC President Mark Majerus said in remarks at the Aug. 26 Board of Directors meeting.

“One of the results from this particular case is that the County staff, including the County Attorney, had to focus on this height issue. Having done so the County is now committed to better vigilance and active and consistent enforcement of the ordinance in our community. Additionally, we have avoided further public conflict with one of the more active builders in our community, which we believe will be appreciated by all,” he said.

BIC Construction is a local builder, working in Captain’s Cove for decades.

The settlement concludes a protracted legal dispute that goes back several years.

It involved two separate lawsuits filed against CCGYC, one by BIC Construction and the other by David and Stephanie Richards, whose home on Blackbeard Road has been ensnared in a dispute with the association over a portion of the home that exceeded the county’s 35-foot limit.

An Accomack County Circuit Court judge in the spring of 2023 ruled against BIC, dismissing an amended complaint by the builder against CCGYC. But he said the builder could refile an amended version of the case, and that’s what happened.

The two separate cases were later combined.

But that didn’t settle the matter, with the builder filing yet another suit, alleging that CCGYC was interfering in his business operations and applying Cove building standards inconsistently.

The Board of Directors approved a 2024-25 budget for Captain’s Cove Golf and Yacht Club that increased the annual lot assessment from $1700 to $1,874, with the additional revenues to be allocated to the association’s reserve funds, recently described as underfunded by a company hired to review them in detail.

The Board in a 5-0 vote at its Aug. 26 monthly meeting with two abstentions approved the budget with the $1,874 annual assessment, payable in two six-month installments of $937 each. Also approved was a waterfront assessment levied on owners of canal-front property of $415, a reduction from the current $500.

The motion also included a one-time $66,000 increase in the reserves to help pay for capital projects anticipated for next year and a supplemental $547,000 allocation to the reserves to pay for capital expenditures anticipated in future years.

The $66,000 was included to bring the 2023-24 capital reserve account up to the required balance as stipulated in the new capital reserve study by DMA Reserves of Richmond, Va.

The Property Management Team had proposed a 2024-25 budget with no increase in the lot assessment, based on the operational budget it had prepared. But the PMT budget left open the possibility of an increase because of the recent submission of the five-year reserve study by DMA Reserves, whose president told the Board in a July meeting that the association’s reserves were underfunded.

CCGYC President Mark Majerus said adequately funding association reserves is required by Virginia law, and that the approved increase in revu

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enue complies with that requirement. He advised that while Virginia law requires adequate funding for reserves, it does not mandate spending out of reserves in any particular amount or year.

October edition

Judge Lynwood Lewis decisively rejected arguments by the seven plaintiffs in the so-called Birckhead litigation that the Board of Directors of Captain’s Cove Golf and Yacht Club acted outside its authority in the four issues considered by the Court.

In remarks from the bench Sept. 24, in a packed courtroom filled with Captain’s Cove supporters of the Birckhead plaintiffs, the judge succinctly favored arguments in the case by CCGYC and its co-defendants, Declarant CCG Note.

It took about 20 minutes for the judge to issue his rulings.

His decision, which also included an indication that the successful defendants were entitled to attorneys fees paid by the plaintiffs, left many in the courtroom dumbfounded, as they apparently had been expecting a different outcome.

Judge Lewis opened the proceeding with an opening comment, mentioning that he had spent 20 years in the Virginia General Assembly and every few years issues arose between property owner associations and its members and that for some reason, it was “fertile ground for dispute.”

He told the plaintiffs that there are “less stressful and more cost effective ways to deal with” differences than to embark on civil trials.

He then mentioned that the Board of Directors of a property owners association is obligated to follow governing documents, which in the case of CCGYC are the declarations of restrictive covenants, articles of incorporation, and the by-laws.

He noted that three claims in the Birckhead litigation had already been resolved by retired Judge Revell Lewis III and that he would be ruling on the rest.

Another claim, that Cove investor Stonewall Capital had not paid assessments owed the association, was “non-suited” earlier in the trial, leaving four to be resolved.

Perhaps the most critical remaining issue in the litigation involved responsibility for building roads in Sections 1-13 of Captain’s Cove, CCG Note or CCGYC.

The plaintiffs sought a determination by the judge that the Cove’s governing documents do not confer upon the CCGYC Board of Directors the right or obligation to build new roads in Captain’s Cove. They wanted a court order to enjoin the CCGYC Board from doing so in the future.

Accepting the argument made by the defendants, Judge Lewis noted that Captain’s Cove roads were transferred to the Association in 1973 and since that time the Association has paved many of those. All streets transfered were those platted on the recorded subdivision map, he said.

He discussed Declaration #12 with regard to the community’s welfare and the responsibilities of the Association,and he then reviewed both Websters and Black’s Law Dictionaries definition of the word “improvement.” The definition is important because CCGYC when it accepted the roads in 1973 took on the responsibility for improving the roads in its inventory.

Judge Lewis summarized the term to mean bring to a “more valuable condition” and “to increase the value or utility.” He noted that paving roads increases the marketability of the association-owned lots, allowing the association to divest itself of those lots, reduce the property taxes and other costs of association-owned lots, and add new dues-paying members, all of which he said are beneficial to the association.

That the association may tar and chip platted roads owned by the association is an allowable act and not “ultra vires,” he said. Ultra vires is a legal term meaning acting beyond one’s legal power or authority.

Another issue in the case involves a dispute over whether CCG Note is required to service a loan mentioned in the 2012 Settlement Agreement between CCGYC and CCG Note, but which the defendants assert was never executed by the Cove association Board of Directors at the time.

Plaintiffs were seeking a court order requiring CCG Note to write a check

to the Cove association covering annual payments of $50,000. Another possible outcome would have been a court order requiring the association to sue CCG Note to recover the disputed annual payments.

CCG Note attorneys argued for an outcome in which the declarant would be absolved of any responsibility for repaying a loan that it contends does not exist.

The declarant since 2012 has paid the debt service on three separate private loans used for road construction in Captain’s Cove, including build-out in Sections 12 and 13.

In ruling for the defendants, Judge Lewis noted that appeared to him that the agreement was drafted by the parties and not attorneys.

There was clear contemplation of a $1 million dollar loan in the agreement, he noted, but he also determined that no such loan existed and because of that “there is no obligation for CCG Note to make payment.”

Judge Lewis said that the CCGYC Board had exercised its “business judgment” in a collaborative matter and that the Court wouldn’t “second guess” the Board’s business decisions.

He noted that CCG Note had made payments to CCGYC in the timeframe after the settlement agreement and that this demonstrated that mutually beneficial decisions had been made among the parties.

He again ruled that the actions of the association were not ultra vires.

A third issue resolved by Judge Lewis concerned a question over whether CCG Note is authorized in governing documents to convey building lots in Section 13 to the Greenbackville Volunteer Fire Department for possible use as a future site as an emergency medical satellite facility or firehouse.

This issue had seemed to be moot for some time, as the declarant has said it is no longer interested in having a facility built on numbered lots in Captain’s Cove. CCG Note is no longer party to a townhome project in which an alternative proffer of land to Greenbackville Fire Department had been made.

With regards to the proposed EMS station, Judge Lewis noted that the proffer of an alternate on land near the east entrance into Captain’s Cove where the townhome project is planned is not on land owned by the association.

He said that nothing has been presented to the Board with respect to an EMS facility and that CCG Note no longer owns the Mariner-Hastings parcel where the townhome project is planned.

Judge Lewis said that since the association is not involved in approving an EMS facility, he would not be issuing any injunctions or other actions sought by the plaintiffs.

Another issue conclusively resolved by the Court is whether Seaview Street has to be built by CCG Note or is the responsibility of CCGYC to complete. Currently it’s on a priority list that a working group on roads has established.

Judge Lewis noted that Seaview Street is a platted, unpaved dirt road and that the Association owns 21 lots along it.

But he said he had discussed the issue of responsibility for road paving earlier and there was nothing “presented otherwise for the Court to rule over.”

Similarly, with respect to Starboard Street, Judge Lewis said there had been no preferential treatment to any lot owner or CCG Note and that the Board had not acted outside its authority in dealing with this street.

There is no action for the Court to take regarding Starboard Street, he said.

In a comment that covered the contentions by the plaintiffs in all the issues they raised, Judge Lewis said that claims that CCGYC or CCG Note had violated the Declaration of Covenants were “too unspecific and overly broad” and that in any event there was “nothing for the Court to rule or act upon.”

He then asked if the attorneys from the respective parties wished to comment. Douglas Kahle, the plaintiffs’ attorney, declined.

James Walker, the attorney for the insurance company that handled the case for CCGYC, asked Judge Lewis whether he wanted Walker to write up an order summarizing the judge’s decisions. The judge authorized the attorney to draft the order.

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He then raised the issue of attorneys fees on behalf of the association and the insurance company. Judge Lewis confirmed that they are entitled to recover expenses and he asked Walker to produce a schedule of fees that Kahle could review before the Court would approve them.

Mark Baumgartner, attorney for CCG Note, declined to comment.

Judge Lewis then closed the case. He did not provide a written copy of his various rulings.

November edition

Concerned Citizens of Captain’s Cove President Teresa Birckhead said in a recent social media post that her organization recently met with the state senator whose district includes Captain’s Cove to ask him to introduce legislation that would reduce the ability of Declarant CCG Note to participate in annual Board of Directors elections.

The senator was Bill DeSteph, who represents Virginia’s 8th senatorial district. A Republican, he is based in Virginia Beach.

“We actually met with our state senator a few months back [asking him] to introduce legislation to prevent declarants from voting [their] eroded or unbuildable lots,” Birckhead said in her post, adding in another post that DeSteph and his staff liked our three ideas and are working to introduce legislation for the next session.”

That would be the session that begins Jan. 8 of next year.

The earliest this legislation, if passed, could affect Cove elections would be in the fall of next year.

The post did not clarify what “three ideas” that Birckhead and her group presented, but presumably it would be additional ideas designed to erode the ability of CCG Note to cast votes in annual Captain’s Cove Golf and Yacht Club elections.

Birckhead’s social media post did not go unnoticed.

Tim Hearn, a former CCGYC Board member and president who was running for an alternate seat on the board this fall, wrote to Senator DeSteph on July 22 to ask him not to introduce the legislation sought by Birckhead.

“I was troubled by her statement that it appears that she has convinced your office to introduce legislation which would preclude certain members of the Captain’s Cove Golf & Yacht Club, Inc. (CCGYC) from voting in association elections,” a reference to CCG Note, the Cove declarant. CCG Note holds Class B membership in CCGYC, controlling roughly 1,200 lots that can be voted in the annual Board of Directors election.

According to an article in the November edition, it appears likely that CCGYC will resume its delayed dredging program.

The CCGYC dredge boat, damaged in an incident last year that some say was the result of vandalism, has been repaired, with the cost reimbursed by the association’s insurance company.

“Now that the Birckhead et all legal matter has been resolved, [CCG Note] will be deeding [Treasure Island Drive] to CCGYC,” Hearn said in a recent post on the Cove Web site’s member forum.

In an email to the Cove Currents, Hearn said “there are seven other properties from which CCGYC could access Treasure island, but the property owned by CCG Note provides the most straightforward access point, if a permit can be obtained from the Army Corps of Engineers.

Attorneys for Captain’s Cove Golf and Yacht Club and CCG Note, the Cove’s declarant/developer, recently submitted a draft order reflecting a September bench decision on the Birckhead litigation by Accomack County Circuit Court Judge Lynwood Lewis that they hope he will sign.

The attorney for the plaintiffs, who lost all the issues decided by the judge, filed a response to the draft order indicating he had seen but objected to its findings.

Some of his objections could form the basis of an appeal of the judge’s rulings and that of retired Judge Revell Lewis III in February pertaining to the ownership and access to Captain’s Corridor in the vicinity of a planned townhome development at the east entrance into Captain’s Cove.

The draft order reads as follows:

“Came all parties on June 11 and 12, 2024, by and with their counsel, for trial on the merits of the Plaintiff’s claims in their Complaints, as amended,

in the two actions listed in the caption of this order, against the Defendants.

“Whereupon the Plaintiffs proceed to present evidence in support of their cases-in-chief against all defendants.

“At the conclusion of the Plaintiff’s cases-in-chief, each Defendant moved to strike the Plaintiffs’ evidence as insufficient as a matter of law and for judgment in its favor on the grounds stated in the record. Whereupon the Court heard argument from all counsel in favor of and in opposition to the motions.

“Following argument on the motions to strike, the Court took the motions under advisement, whereupon the Defendants proceeded to present evidence in support of their cases-in-chief. At the conclusion of the evidence, each Defendants renewed its motion to strike, which the Court again took under advisement. The parties then proceeded to give their summation, following which the Court the proceedings to consider its decision.

“For the reasons stated on the record in open court on Sept. 24, 2024, this Court, sitting as the trier of fact, and based on the law and the evidence presented by the Plaintiffs and the Defendants, FINDS that the evidence of the Plaintiffs and the legal arguments of their counsel to be unpersuasive on the merits, as to each count claimed in these matters. Accordingly, the Court hereby FINDS its verdict for each Defendant on the issues joined, and hereby ORDERS that judgment be entered in favor of each Defendant as to all of the Plaintiffs claims them on both cases tried.

“This is not a final order. There remains for adjudication a claim by Defendant Captain’s Cove Golf and Yacht Club for an award of attorney’s fees and costs pursuant to Va. Code Subsection 55.1-1828(A) as the prevailing part in this action upon which the Court must still rule in order to dispose of the entire matter before the Court. Unless a party requests and the Court enters a suspending order, the order entered by this Court on the Defendants’ claims for attorneys’ fees will dispose of the entire matter before the Court and shall be final as contemplated by Rule 1:1 of the Rules of the Supreme Court of Virginia. The parties are directed to meet and confer on a schedule for any discovery to be conducted on the issue of attorneys’ fee and for entry of an order regarding same. Counsel shall thereafter contact this Court regarding a date and time to be herd on the issue of attorney’s fees should an evidentiary hearing by necessary.

“And this cause is continued.”

Asking the judge to sign the draft order were attorneys James W. Walker and Alison Duffy, of O’Hagen Meyer, of Richmond Va., representing CCGYC, and Mark R. Baumgartner and associates from Pender and Coward, of Virginia Beach, Va., representing CCG Note.

Douglas Kahle, the plaintiffs’ attorney presented a document objecting to the proposed order for the following reasons:

1. The Plaintiffs incorporated by this reference their objections and assignments of error noted and attached to this Court’s Feb. 24, 2024 interlocutory Order dismissing the Plaintiffs’ claims relating to Captain’s Corridor entered in the matter of Teresa Birckhead, et all vs. CCG Note, et all in response to CCG Note’s demurrer.

2. The Court committed error justifying the Association’s alleged ultra vires actions by application of the business judgment rule.

3. The Court committed error with its interpretation of the 2012 Settlement Agreement given the Agreement required CCG Note to pay $50,000 per year for 20 years to the Captain’s Cove Golf and Yacht Club for debt service on a loan, and given the evidence that the Association has, without cause, after repeatedly acknowledging the existence of that obligation, failed to take action to collect such sums, and has instead levied assessment on the property owners for work that should have been paid for with the sums payable pursuant to the Agreement, all in violation of the Declarations of Covenants and Restrictions for Captain’s Cove.

4. The Court committed error with its construction of the terms “improve” and “improving” as those terms define the Association’s scope of authority found in the Declaration, given the parties’ joint stipulation that “putting chip and tar on an uncovered surface, be it dirt, sand or grass” constituted building or constructing a road, not improving an existing road.

5. The Court committed error when it found the Association’s proposal to u

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apply chip and tar on previously uncovered surfaces fell within the scope of its authority to improve existing roads, and did not constitute the ultra vires act of building or constructing new roads.

6. The Court committed error with its construction of the term “improve” and variation thereof, since words in the Declaration which authorize the Association to levy assessments on property owners must be strictly construed and under the principles of strict construction, “improve” must be read together and interpreted narrowly with the more limiting words such as “maintain,” “repair,” and “rebuild,” which are found in the Declaration and in the Association’s Articles of Incorporation.

7. The Court committed error when it dismissed the Plaintiffs’ claim related to the Association’s obligation to mitigate Starboard Street’s flooding.

8. The Court committed error when it dismissed the Plaintiffs’ claim related to the Defendants’ proposal to allow a firehouse to be constructed on lots designated for residential construction only.

The defendants’ lawyers, during Court proceedings, had rebuttals for most of the assertions in Kahle’s response.

The judge has the option of holding a hearing on the proposed order, or he could just sign it over Kahle’s objections.

Signing the order opens up a 30-day window for an appeal to the Virginia Court of Appeals, which by Virginia law is obligated to consider it.

December edition

The long-awaited audit report for the beleaguered 2021-22 fiscal year was finally delivered and posted on the Captain’s Cove and Golf Club’s Website in mid-November.

As expected, the auditors, Rosen, Sapperstein and Friedlander, of Towson, Md., did not issue a so-called clean audit because financial statements for the first half of the fiscal year, when the Cove was managed by a subsidiary of Troon Golf, could not be verified.

CCGYC is currently engaged in litigation with Troon to recover funds that the association contends were improperly accounted for by the management company. A forensic audit of the missing months was conducted by an independent firm, CohnReznick, and the parties are engaged in slow-moving negotiations to arrive at a settlement that could result in a substantial payment to the association.

Meanwhile, though, the association had been without a completed audit for the year in question, which in turn delayed completion of the 2023 audit by RS&F. Once that is done, expected soon, the auditors will begin work on the audit report for the 2024 fiscal year that ended on Sept. 30 of this year.

“We do not express an opinion on the financial statements of the Association,” the 2022 report said. Instead the company explained its basis for what it called a disclaimer of opinion.

“The Association has not maintained adequate accounting records for the year [that] ended Sept. 30, 2022, and we were unable to obtain sufficient appropriate audit evidence to determine whether the balances in the statement statements ... were fairly presented in accordance with accounting principles generally accepted in the United States of America or whether accounting principles have been consistently applied between 2021 and 2022.”

At first glance, the report that has been posted on the Cove Website suggests a year that ended in an operational deficit, with “a deficiency of revenues over expenses” in the amount of $837,627.

Total revenues were $6,533,320 while expenses were $7,370,947.

These results are on page four of the audit report, on a schedule that’s labeled a statement of revenues, expenses and changes in fund balances.

The general operating fund balance at the end of the year is shown at $7,685,282, up from a fund balance at the beginning of the year of $6,829,393, as recorded in the prior year’s audit report.

The auditors for reasons that were not explained adjusted the beginning balance by adding $1,693,517 to the previous year, resulting in a restated beginning of year fund balance for 2022 of $8,522,909.

A typical member of CCGYC might regard the results as reflecting an association that performed poorly in 2022, but on page 15 there’s a schedule

of expenses that might suggest otherwise.

The auditors included an expense item - $2,070,800 -- in a bad debt expense write-off, which was the largest component of the $7,370,947 in general fund expenses for the year.

A bad debt write-off is a non-cash, non-operational expense. RS&F apparently has taken a conservative approach to accounting for CCGYC’s protracted accounts receivable challenges, writing off a lot of debt from prior years that may or may not be collectible. The Board of Directors on occasion has authorized write-offs, which appears to be a consistent recommendation of RS&F.

In prior years, the former auditors, Trice Geary Myers, utilized an alternative method to account for bad debt, a bad debt reserve. Had TGM conducted the audit for 2022, the year might have a shown an operating profit. Without the bad debt write-off, total operating expenses for the year would have been $5.3 million.

Operating revenues would have remained at $6.533 million. The difference would have produced an operating profit of $1.233 million for the year ($6.533 million - $5.3 million), an 18 percent positive margin on $6.533 million in revenue.

“This shows that the property management team did a great job, especially when having to also overcome the challenges that Troon left them from the first six months of the fiscal year,” Cove alternate director Tim Hearn said in a Nov. 25 email to the Cove Currents.

The membership of Captain’s Cove Golf and Yacht Club gathered at the Chincoteague Center on Saturday, Nov. 9, for the annual meeting of the association. It was a packed room and a raucous crowd, most of them attending to hear the announcement of Board of Directors election results.

Many were there to see whether a slate of five candidates calling itself the A Team and endorsed by the Concerns Citizens of Captain’s Cove would prevail in the election. This slate was competing against three incumbents who are investors in CCG Note, the Cove’s declarant/developer, and two former CCGYC directors.

There also was considerable interest in whether the declarant/developer, CCG Note, would exercise its rights as defined in the Articles of Incorporation and By-laws and the 2012 Settlement Agreement to cast three votes for every lot it owns in Captain’s Cove.

Once totals were announced, it was clear that CCG Note had voted three votes for every lot it owns, estimated at around 1,200.

When the election results were announced by Corporate Secretary Justin Wilder, the assembled Cove members erupted in anger and dismay. The so-called A Team had gone down to defeat, even as these candidates fared much better than candidates in year’s prior who were not supported by CCG Note votes. There were some posts on local social media that three of the candidates were considering challenging the results in court, particularly the three votes per lot cast by the Declarant, but that had not happened before this edition of the Cove Currents went to press.

The victorious candidates for new three-year included CCG Note investors and incumbents Michael Glick, with 3,630 votes; Jim Silfee with 3,615 votes; and Roger Holland with 3,612 votes. All are Class B members of the Cove association. Former CCGYC Director John Costello, also a former Cove department head, won a three-year term with 3,615 votes. Former CCGYC Director and President Tim Hearn, running for the alternate seat, won 3,628 votes. His term is for one year.

The four CCCC-endorsed candidates running as a slate did not accumulate enough votes to prevail had CCG Note not cast three votes per lot owned, but they would have come close. The top vote-getter in the A Team was Catherine Malstrom with 1,188 votes, followed by Gini Weslowski, with 1,178 votes; Patty Borrelli with 1,174 votes; and John Hvizda with 1,163. Alternate candidate Tom Polaski, a member of the A Team slate, recorded 1,168 votes.

A spirited campaign for the A Team candidates was conducted on social media, but they faced the reality that candidates that receive the votes of Class B member CCG Note have a built-in advantage of about 1,200 votes representing CCG Note-owned lots.

COVE CHRONICLES

A joyful December in Captain’s Cove

By JULIA KNOPF Contributing Writer

As December unfolded in Captain’s Cove, the enchanting spirit of the Holiday season filled the air, bringing neighbors and friends together to celebrate the season in delightful ways. With various festive activities, residents engaged in holiday cheer, showcasing creativity, community spirit, and the joyous essence of togetherness.

The Cove Chorale performed its 15th Annual Christmas Program. The theme selected was “Christmas at Home,” which shone throughout Captain’s Cove all season.

Twenty-nine talented individuals, including chorus members, musicians, and sound technicians, produced a two-night Christmas spectacular, complete with a visit from Santa and Mrs. Claus.

Nearly 150 community members came to witness the show, held in the Marina Club, proving that there truly is “No place like home for the Holidays.”

Neighbors wishing to see homes decorated with Christmas lights need not leave their community. Members toured the community for the third year and witnessed the twinkling lights before voting on

their favorite. The home on 37187 Buoy Court, the winner the past two years, was replaced by 37473 Sailors Court for first place in the “Light Up the Cove” competition.

Coming in third with a warm traditional scene was 3073 Navigator

Drive.

The homes weren’t the only lights this season; the Town Center Green was lit with hundreds of lights, including the twenty-foot tree in the center. Members, young and old alike, sipped hot chocolate

and caroled as the tree was illuminated during an event on the first Friday of December. Despite a bitterly cold evening, this event warmed the participants’ hearts, reminding everyone of the magic of Christmas and the joy of coming together.

Homes this Christmas came in all shapes and sizes during the annual Gingerbread house contest. Gavin Zubko, a ten-year-old member, beat out adults for the top-themed house. Gavin’s Ice Palace was a crowd favorite. This year’s competition featured three trains, representing the travel toward home.

Mark Majerus won the top prize for his custom-built locomotive with black licorice tracks. He donated the winning gift card back to the association.

Mary Cranford’s simple yet classic house, with a touch of flare thanks to the addition of a golden sidewalk, brought home the prize for favorite Traditional home.

Mary’s classic Christmas style continued to shine during the Golf Cart Parade, where she and her husband, Ken, earned an honorable mention for their dazzling blue-lit cart.

The golf cart parade enticed residents from the warmth of their homes to witness the 17 brightly decorated carts travel around the

First place in the golf cart parade, Tom and Terry Anderson.

First place theme in gingerbread contest, Gavin Zubco.

Overal winner in the gingerbread context, Mark Majerus.

cart path. The train theme was also seen during this event, with two carts decorated like the Polar Express, including the winning cart, designed and driven by Tom and Terry Anderson.

The Captain’s Cove “Home School Group” took home second place thanks to the elaborate paper orna-

ments showcasing the creativity and vision of the students. Coming in third place were new community members excitedly experiencing their first “Cove Christmas.”

Their cart gave Rudolph and his wife a sleigh of their own, decorated and driven by Billy and Dawn Nalley. Santa award-

ed another honorable mention to Brandan and Christina Kellerman, whose Abominable Snow cart caused a chill through the crowd.

As the month’s activities drew to a close, members retreated to their homes, feeling full of the Christmas spirit. Once again, December at Captain’s Cove forged lasting memories, highlighting the warmth of community and the joys

of the holiday season. Each gathering celebrated Christmas and reinforced the bonds of friendship and the power of a strong neighborhood spirit, proving that home is where the heart is.

Julia Knopf is the community relations manager for Captain’s Cove Golf and Yacht Club.

First place in the Light up the Cove contest, 37473 Sailor’s Court.

The Cove Chorale performing its 15th annual Christmas program