July 2016 ocean pines progress by Ocean Pines Progress

July 2016

www.issuu.com/oceanpinesprogress

443-359-7527

OPA Board Election Coverage Pages 34-40

Sports Core pool closes for summer for major upgrades

THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY COVER STORY

‘Secret’ memo from Thompson to board recommends higher reserve fund levels Stevens slams report that general manager declines to release on grounds that it is a ‘working document’ integral to completion of a reserve study and a capital improvement plan. Increases in reserve funds normally suggest assessment increases By TOM STAUSS Publisher memo from General Manager Bob Thompson to the Board of Directors in June recommends funding the Ocean Pines Association’s replacement reserve fund at a significantly higher level than it stood at the end of fiscal 2015-16. Boosting the reserves to the level recommended by the general manager would require a hefty assessment increase if it were to happen all at once, but the general manager is recommending a glide path of ten years to reach the desired goal. OPA Director Dave Stevens told the Progress that Thompson is recommending that the OPA fund its Major Replacement and Maintenance Reserve at 50 percent of an arcane calculation favored by the accounting profession known as the annual component cost. That’s been estimated at $14 million in prior years, but it probably is higher now because of new, higher priced assets replacing older depreciated items since that calculation was done originally by former OPA board member Pete Gomsak, an OPA assistant treasurer. At 50 percent of $14 million or more, Thompson’s recommended minimum replacement reserve balance would come in at roughly $7 million or more, about $3 million higher than the replacement reserve balance on April 30, the end of the 2015-16 fiscal year. Boosting the replacement reserve by $3 million averages out to $300,000 in additional assessment dollars per year over ten years, or about $35 per year per property owner over that ten-year period. But that might be understating reserve requirements by a lot if the OPA decides to embark on a spending spree to replace major assets and decides to fund it the same way that it funded the $5 million Yacht Club. That funding mechanism amounted to a special assessment – funds over and above that raised through the traditional funding of depreciation of OPA assets – spread out over five years.

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The original five-year plan conceived as the way to finance the Yacht Club lives on in year seven or eight, depending on what start date is chosen, in the form of the replacement reserve’s “legacy” funding component. A solid board minority is determined to end the legacy funding component once and for all next year. Whether that happens probably will depend a great deal on who’s elected and who’s not to the board in this summer’s election. The premise of that funding meth- Bob Thompson od was to have most of the funds already in the bank to finance a major purchase, which turned out to be the new Yacht Club. OPA Treasurer Tom Terry recently alluded to the possible need for financial resources in addition to what would be necessary to fund an acceptable percentage of the annual component cost. An approved capital improvement plan – Thompson is proposing a deadline of December for board action on that – could help determine that need, Terry told the Progress in a recent telephone interview. Terry also said that the accounting profession recommends that a range of 30 to 70 percent of the annual component cost should be held in an homeowner association’s replacement reserves, with 30 percent considered the “bare minimum” and 70 a very healthy level. Without confirming that Thompson’s recommended percentage is 50 percent, Terry said that 50 percent clearly represents a middle ground between the optimal and minimal percentages. The OPA has never formally adopted the ACC model for its reserve accounting, but it appears almost as an aside in To Page 44

The Sports Core indoor swimming pool will close beginning Monday, July 11, for an expected two months to allow the Ocean Pines Association to make major improvements to the pool and decking while all of the seasonal aquatics facilities are open and available for use by property owners. ~ Page 6

Food truck purchase won’t happen this summer, GM says General Manager Bob Thompson’s proposed $55,000 food truck purchase is not going to happen this summer, a victim of a 3 to 3 tie vote in May and concern that with fewer weeks in which to operate this summer, revenue projections could not be met. The proposal may not be dead, however. It’s in the budget for this year, and Thompson may bring it for a board vote next year. ~ Page 26

Collins unhappy with Beach Club process delays Contractors must respond to a request for proposals to renovate or construct new bathrooms at the Ocean Pines Association’s Beach Club in Ocean City by July 26, but it is unlikely that staff will present a recommendation for bid award to the Board of Directors before September. That has caused some friction with Director Jack Collins, who wanted RFPs to be issued much sooner and bids submitted sooner as well, to allow the current board of directors time to review them and approve the project before a new board takes over in August. ~ Page 15

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July 2016

OCEAN PINES

July 2016 Ocean Pines PROGRESS

OCEAN PINES BRIEFS Jacobs curbs directors’ free speech rights

Ocean Pines property owner Steve Tuttle has organized a forum for Saturday, July 16, at the Ocean Pines library to give candidates who are running for the Ocean Pines Association’s Board of Directors in this summer ‘s election another opportunity to address property owners. This will be the third candidates’ forum in this election cycle. The first one was hosted by the OPA’s Elections Committee and the second by the Parke at Ocean Pines homeowners association. Tuttle’s forum is scheduled from 9 a.m. to 11 a.m. in the meeting room to the right as one enters the library. Submitted questions will be given to the candidates prior to the forum. Candidates will be allowed to ask other candidates questions, and questions will be taken from the floor during the forum. All 11 candidates for the board were invited to participate. As of June 21, seven candidates committed to attend. Tuttle is a new year-round resident of Ocean Pines interested in the election, the board and the community. Anyone wishing to submit questions to be addressed by the candidates can email them to Steve Tuttle at sltuttle08@gmail.com by July 13, 2016.

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Prior to opening the floor to Ocean Pines Association members, as is required by state law, Cheryl Jacobs, who chaired the June 25 Board of Directors meeting in the absence of President Pat Renaud, told her fellow directors not to respond to statements made during the public comments section of the agenda. “For clarity” she said she wanted everyone to understand that the Public Comments segment of board meeting agendas is not a time for directors to have a dialog with members. Jacobs said the Public Comments segment is on the agenda because the board wants to have an opportunity to let the community give feedback. “However, public comments is not for us to have a discussion about these items. And I think there might be some misunderstanding about that because there have been comments about well ‘they never do anything’.” She was referring to board inaction of items brought to the attention of the board during public comments. Jacobs suggested members who feel they need follow-up on an issue do so with a board member outside of the meeting if they make a comment and don’t see any action or discussion on the topic in the future. Jacobs’ unilateral decision to curb the

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From Page 3 ability of directors to respond to property owners, which no director challenged, did not go unnoticed by one Ocean Pines property owner. “Public comments are not allowed by the board of directors. Public comments are mandated by the Maryland homeowner’s association act. So let’s get that straight to start with,” member Joe Reynolds said in response to Jacobs’ ban on board interaction. He said there is no OPA prohibition against board members speaking to the people who make a public comment and he doesn’t believe the chairman has the right to tell board members “what they can say or can’t say.”

OCEAN PINES Collins asks about Harbor Mist properties

Director Jack Collins during the June 25 Board of Directors meeting asked for an update on the status of efforts to have to derelict properties on Harbor Mist Circle cleaned up, but didn’t get much information from Ocean Pines Association staff. At an April board meeting several neighboring property owners approached the board to complain about the condition of the two properties. Collins said he has visited one of the properties and “it was totally inundated by, I’m going to say, at least three year’s cycle of leaves.” He said he believes the other lot in question was in foreclosure and was told by a neighbor that squatters had been living in the house until the police re-

moved them. “In viewing those properties, they are in pretty bad shape,” Collins said. OPA General Manager Bob Thompson said he was not prepared to address the compliance status of those properties at the meeting. He did say that he and other OPA staff visited the properties. One property is in foreclosure and the association has been in contact with the bank that holds ownership. He said he can’t remember the disposition of other property. Collins, who is running for reelection to the board this summer, is making the presence of derelict properties in Ocean Pines an election issue, reminding property owners that he has been among those pressing for faster action by OPA management when such properties are identified.

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Reserve study approval awaiting more meetings

Months after receiving a draft from consultants retained to develop a reserve study of Ocean Pines Association assets, the Board of Directors has made no move to approve the document. The reserve study, which reviewed all of the OPA’s existing facilities and the association’s ability to fund their maintenance, was conducted by consultants Design Management Associates Inc. of Richmond, Va. The OPA hired DMA to perform an interactive reserve analysis that when complete will detail how long the components of various facilities will last, where in that life cycle they are and the cost to replace them. In June General Manager Bob Thompson distributed recommended next steps in the process and a draft timeline aimed at having the document finalized for use in preparing the OPA’s fiscal year 2017-2018 budget. He is still waiting for board guidance and until he gets it the document will remain just a draft. Director Cheryl Jacobs said she thought some information was missing from the document prepared by DMA and the board was waiting for it to be added. Thompson responded that the “missing” information was the approved fiscal year 2016-2017 budget. Staff is now working to make sure that information is included in the draft. “We need to get moving,” Director Tom Terry said. He added that the board needs to take action soon on the document so it can be used in next year’s budget development. He made a motion to accept the timeline provided by Thompson for completing the reserve study in order to have it ready for use by the board in the budget process. Director Bill Cordwell gave a second to the motion. He said the board needs to move on the reserve study soon and thought that work sessions were going to be scheduled to discuss it. “Let’s just keep kicking it down the road…” he said, adding that if the current board puts off finalizing the reserve study it will have an impact on budget planning for next year. Director Jack Collins agreed with Cordwell and said he too thought work sessions were going to be scheduled to complete the reserve study. He said it is an important document that should have the full consensus of the board and some members have concerns about it. “I would hate to think that we would adopt a plan of action visa vie a reserve study on a 4-3 vote, it should be 7-0.” Jacobs proposed an amendment to Terry’s motion, which was approved unanimously to schedule a discussion of the document for the board’s July meeting and to schedule work sessions in the meantime.

Two directors drafting new compliance rules

Two members of the Board of Directors are drafting proposed revisions to

4 Ocean Pines PROGRESS July 2016 OCEAN PINES BRIEFS

OCEAN PINES OCEAN PINES BRIEFS

July 2016 Ocean Pines PROGRESS

From Page 4 the guidelines for addressing violations of the Ocean Pines Association’s restrictive covenants that are designed to expedite the clean-up of problem properties. Directors Tom Terry and Cheryl Jacobs met with Jim Trummel, former Bylaws and Resolutions Committee chairman, and Glenn Duffy, chairman of the Architectural Review Committee, to develop language that will allow the OPA to take faster action against property owners who fail to maintain their lots. The highlight is the suggested repositioning of the ARC involvement to be much earlier in the process so that the OPA doesn’t have multiple rounds of communication back and forth with members who are in violation, Terry said. By engaging ARC, which officially finds properties to be in violation and sends them to the board for resolution if necessary, in the review process sooner, the OPA hopes to convince to remedy problems in a more time fashion. Terry said the group also had an extensive discussion about the fast track option by which the board can expedite legal action against a property owner who violates the restrictions and how fast-track appears to be somewhat in conflict with previous legal advice. Using the fast-track option, the board has occasionally given authority to the

Park clean-up

On June 6, members of the Ocean City Power Squadron participated in the annual spring cleanup of Pintail Park in Ocean Pines, which has been “adopted” and maintained by the group for the past several years. Members pictured are from left to right are, first row, Morton Brown; second row, Antonino Curro, Raymond Calandra, Bela Gulyas, John Wytrwal, Jean Stiehl, Teresa West, Joleen Killinger; third row, Janet Tellman, Patti Lookner, Neal Lookner, Marjorie Calandra, Stuart Glassman, William Sewell, Jack Sipes, Fredrick Stiehl, David McAllister, Anthony Smith; and fourth row, John Tellman, Stock Harmon, John Hess, and William Killinger. general manager to pursue ongoing legal action against owners who don’t comply, without bringing the violation to the board during each step in the process. However, that 2014 opinion from OPA legal counsel Joe Moore seems to indicate that the board does have to approve each action against a property owner, Terry said. The group hopes to get clar-

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ification from OPA Moore on that issue. Another problem uncovered by the group reviewing the procedure for addressing property violations is the lack of ability for the general manager to take immediate action to address safety issues on lots in the community without board approval. However, General Manager Bob Thompson has been doing just that. “He

has been doing it if there’s a safety issue,” Terry said, but added that there is nothing on paper that gives him that authority. Currently every step in the process in order for staff to go onto a private property requires the board of directors to approve that action, Terry said. He said that will need to be addressed in the revised procedures for violations.

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OCEAN PINES

July 2016

Spore Core pool to close July 11 to allow for major upgrades

Swimming lessons will be shifted to other pools in Ocean Pines while the Sports Core indoor pool is upgraded for roughly two months beginning July 11. Group swim lessons in Ocean Pines are conducted by teams of instructors, allowing for lots of individualized attention. Private lessons are also available, increasing the level of one-on-one interaction between beginning swimmers and their instructors.

167

he Sports Core indoor swimming pool will close beginning Monday, July 11, for an expected two months to allow the Ocean Pines Association to make major improvements to the pool and decking while all of the seasonal aquatics facilities are open and available for use by property owners. The Board of Directors during a Feb. 25 meeting approved $255,634 in contracts for the project, including $196,866 to Pearl Pools for pool improvements and $58,768 to Pools and Spas for pool decking. The contractors are scheduled to complete the work by Sept. 10. During the two-month period when work will take place, the check-in area at the Sports Core pool will remain open to handle inquiries, in some cases probably to advise pool users that four outdoor pools are available for Aquatics members and others. The pool expansion and improvements include replacement of all 12 skimmers, tile work, depth markers, lining and demarcation and installing new Diamond-Brite plaster. The project will enlarge the pool in the shallow area by about 114 square feet, with a stepped entry; and will install a new handicapped chair lift and safety rails between the deep end and

enlarged area in the deep end. Deck improvements include installing a rubber chip surface around the pool area and the entrance area to the pool. The enlarged pool area will allow the Aquatics staff to better its growing swim lesson program, lessening the impact on pool usage when classes are in progress, Thompson said filter replacement wasnâ&#x20AC;&#x2122;t originally included in the proposal but state officials recommended their replacement during their review of the project. That addition increased the project cost by about $9,000, he said, and the filters will be replaced as part of the project. The existing pool slide will be removed as part of the project, with a new one, funded separately in the 2016-17 capital budget, to be located in the area of the decking where guards currently sit. The new slide has an estimated cost of $17,500. Last year the OPA opted to postpone refinishing the Sports Core swimming pool after receiving just two bids with vastly different prices for the work. Due to the low number of bids, coupled with a potential for other improvements to the pool, Thompson recommended putting off the project until fiscal year 2016-17. To Page 8

July 2016 Ocean Pines PROGRESS

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OCEAN PINES

July 2016

THE PONTOON THAT DEFINES

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GM says raised platform tennis courts will require stormwater mitigation Reconfiguration of tennis courts for pickleball proceeds By ROTA L. KNOTT Contributing Writer hile the Ocean Pines Association is finally ready to proceed with plans for the creation of two new pickleball courts at the Manklin Meadows Recreation Complex, construction of new platform tennis courts is still stalled by stormwater woes. General Manager Bob Thompson told the Board of Directors during a June 25 meeting that he hasn’t had any luck so far with finding elevated platform tennis courts to add to the racquet sports complex, but it will not matter anyway when it comes to meeting the requirements for stormwater mitigation on the site. Regardless of whether the courts are built above ground or at-grade, the OPA will need to provide appropriate stormwater management, Thomson said, addomg that he had checked with Worcester County’s stormwater inspector to discuss the issue and found that the county and state laws regarding mitigation for any new impervious surfaces will not change based on the elevation of the courts. Thompson had been hoping that installing elevated platform courts instead of at-grade ones would change the county’s calculation for impervious surface area and reduce the requirements

Sports Core pool From Page 6 The approved project does not include funding for salt-generated chlorination or ultra-violet disinfection system, which have aquatics committee objectives for many years. Aquatics Committee chair Colby Phillips has been looking into a system that substitutes hydrogen peroxide as the primary chemical for disinfection, along with UV, with minimal chlorination still part of the mix. – Tom Stauss

for addressing stormwater, thereby also lowering the project cost. “Unfortunately, that’s not the case,” he said, adding, “Whether they’re raised courts or onground courts, the stormwater mitigation is the same.” He was also anticipating that perk tests of the absorption rate of soil on the property would allow the OPA to lower the cost for mitigation by changing the design of the stormwater structures. However, that hasn’t worked out to the association’s advantage either. He said it has been too “soft and soggy” on the site to perform perk tests. As a result, the OPA is back to working with the original stormwater design for the property that was completed by Soule and Associates as part of the overall Manklin Creek master plan. The approved master plan only received on bid when a request for proposals was circulated and that came in at more than $750,000, largely because of the cost of required stormwater mitigation. At that time, Thompson suggested breaking the project into smaller phases in order to accomplish the work. He said that there is not a specific cost associated with just the paddleball courts. Rather, the stormwater management will address the needs of that entire side of the park, with the courts contributing to that. An earlier estimate for phase one of the master plan to accommodate stormwater was $150,000. Meanwhile, Thompson said he is still trying to acquire cost estimates for elevated courts and refurbished at-grade courts. “They’re not right down the street,” so the OPA is searching online for alternative versions of platform tennis courts, he said. The OPA already has a bid for construction of two new on-ground platform tennis courts. The cost does not include the pouring of the pad for the courts. Director Jack Collins asked for clarTo Page 10

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July 2016 Ocean Pines PROGRESS

ATTENTION: Ocean Pines HOMEOWNERS!

Had enough of our Board and Management nonsense? We have and we are Voting for:

SLOBODAN TRENDIC

Just look at our run-down properties, neglected bridge maintenance and crumbling children’s playground at Manklin Meadows Park.

It’s time for the Board to attend to OUR priorities!!!

As your New Board member Trendic will represent everyone equally and work hard to:

• • • • • • •

Bring an END to our wasteful spending; Improve appearance of our community; Hold the OPA Management Accountable; Fix neglected infrastructure and facilities; Find solutions to our Yacht Club problems; Always promote applying Best Practices; and Better support needs of diverse homeowners.

Trendic’s top priority is to undertake the projects that will help make our community more attractive and increase our home values. He will work with other Board members to promptly address management performance issues.

Please cast Your VOTE for:

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BOARD OF DIRECTORS

July 2016

Celebrating Our 19th Year

Racquet Sports Committee lobbies board for universal membership date Board sends proposal to Thompson for review and recommendation

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By ROTA L. KNOTT Contributing Writer n an effort to ensure that everyone who is playing is paying for the privilege, the Racquet Sports Advisory Committee is recommending that the Ocean Pines Association set a single registration deadline for tennis, platform and pickleball memberships. The recommendation was put forth on behalf of the committee during a June 25 Board of Directors meeting by Director Jack Collins without any input from OPA administration on the proposed change. Collins offered a motion to set a universal renewal date of May 1 for all racquet sports memberships. For the current fiscal year only memberships would be pro-rated based on the date of registration. Director Tom Herrick gave a second to the motion, which was ultimately tabled to give General Manager Bob Thompson and his staff time to assess the proposal. “This is a recommendation from the committee,” Collins said, adding “This is

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From Page 8 ification whether stormwater mitigation would still be required if platform courts were built on an existing impervious surface. Thompson said “No,” but added in that case the stormwater would have already been addressed in the past. However, that’s not an option for the platform tennis courts. “We’re talking about new courts,” he said and that means more impervious surface is being created. Collins asked if staff has considered the option of reallocating low or unused existing courts for platform tennis. Similarly, the OPA board just approved changing two existing tennis courts to pickleball courts to meet the growing de-

not something that has been concocted by a member of the board of directors or group of members on the board of directors.” Currently, racquet sports memberships, like those for golf and aquatics, are sold throughout the year. Members can join at any time and their membership runs for a full 12 months from the date they originally signed up. The RAC wants to eliminate those staggered memberships in favor of a universal renewal date so it is easier to determine who is a valid member and who is not. The committee unanimously believes that the universal membership date would be beneficial to members, help staff with tracking of memberships and support the generation of new members. Collins said the racquet sports facilities are not staffed year round and as a result there is only random verification of membership status for players. He said there is no reasonable way to control access to the facilities as there is for golf and aquatics because players don’t have to check in with OPA staff; they can simply go straight to the courts and

10 Ocean Pines PROGRESS

mands of members who play that sport. Thompson said the only option would be to reallocate more tennis courts for platform tennis. The OPA is proceeding with plans for conversion of tennis courts 11 and 12 at Manklin Meadows for pickleball. Thompson said staff is working with contractors to straighten out the angled back corners on the court, relocate fencing and install new nets. Public works is doing much of the work, but private contractors may be needed to perform any necessary repaving. Director Cheryl Jacobs asked when completion of the pickleball courts is expected. Thompson didn’t have a definitive answer but said he hopes the work will be done within the next 60 days. “We’re moving as quickly as we can.”

July 2016Ocean Pines PROGRESS 11

BOARD OF DIRECTORS Racquet sports From Page 10 play. Because the OPA does not send a notice to members that their membership is about to expire, there are problems with individuals continuing to play racquet sports even though they have lapsed memberships, he said. That can be a point of friction between staff and members. Director Bill Cordwell said it doesn’t make sense to change the membership registration structure just for racquet sports. “I believe the administration put out the staggered memberships for the benefits of the members,” Cordwell said. He said it allows flexibility for members who do not live in Ocean Pines year round or who do not have the money to purchase clubs memberships by May 1. For members who join several clubs that can be a “steep amount of money to put out,” he said. He wanted to know why the OPA should single out one type of amenity for a different membership structure. “I thought it was a good solution and now you want to take one amenity and change it from the rest of the community,” Cordwell added. As for verifying membership, Cordwell said that should be easy to do. The OPA can print out a membership list every month and provide it to staff at Manklin Meadows. “All those people in all those sports know who comes there and who belongs there and who does not belong there. They take care of their own down there,” he said. Herrick said the staggered memberships do cause a lot of confusion for the racquet sports because the players are not required to check-in and show their membership card anywhere. He added that the passes are a single color for the entire year, regardless of when a member joins. That means someone could have an expired card but pass it off as still valid. When staff is on site they have no way of knowing whether or not a member’s pas is valid without physically checking the date it was issued. “It’s very consuming. It takes a lot of time from the help,” Herrick said. He believes it would be much easier if membership renewals were once per year. Director Tom Terry said he was the board liaison to the Tennis Advisory Committee, pre-cursor to the RAC, when it made the recommendation to move to the existing membership structure. The argument at that time was that it would increase the ability of the OPA to sell memberships if an individual could sign up at any time. “This wasn’t something administration did,” Terry said. “This is something done by a previous advisory committee.” Terry said he doesn’t understand the problem. Staff is on site and can verify memberships during most of the year. “What’s the problem we’re trying to solve?” he asked. Herrick said if every member renews at the same time and the pass is the

same color for the entire year, then staff will automatically know if they have a valid membership. Now they have to physically look at the pass, he said to look for the renewal date. He also argued that the proposed change will assist the OPA with planning because there will be a definitive number of members for each racquet sport annually. Currently, every month the numbers change as people join or allow their memberships to expire. Cheryl Jacobs, who chaired the meeting in the absence if OPA President Pat Renaud, asked OPA General Manager Bob Thompson for his input on the committee’s recommendation. “I haven’t been asked to ever consider this or reconsider going back to this,” he said immediately, telling the board that he had no immediately opinion to offer on the

recommendation. Thompson said it would be easier for staff to renew all memberships on May 1 of each year. But, he said, it’s not about the ease of work for staff. It’s about allowing the members to have the best possible experience, he said. The current system for all of the sporting clubs was put in place to allow members to decide when it is the best time for them to renew or buy into a membership in order to ease their burden of payment. The challenge with the RAC proposal is that it would require treating one amenity differently than the others, Thompson said. If the board wants to consider the change, then he would recommend doing so for all of the amenities, he said. “We need to be consistent in our approach.” That might not be all that difficult,

as aquatics and golf membership for the most are renewed or purchased in the April, May and June period. Thompson said all racquet sports members are supposed to check in at the pro shop before playing. However, he acknowledged that at those time when staff isn’t present anyone can use the courts. If that is a concern, he said the OPA can lock down all the courts so they can’t be used unless staff is present. Terry suggested the board give Thompson some time to talk with the Racquet Sports Advisory Committee about its proposal and determine the impact on the association. He said he is neither for nor against the recommendation but thinks “more work needs to be done.” “I think that’s quite mature,” Collins responded.

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By ROTA L. KNOTT Contributing Writer uilding a patio and buying outdoor dining furniture for the Tern’s Grille at the Country Club wasn’t completed before the summer season kicked off because the Ocean Pines Association had higher priorities, General Manager Bob Thompson told the Board of Directors recently. He said the project is scheduled to be done in-house with public works crews building the patio, but those employees had other, more important projects to complete first. Director Tom Herrick had an agenda item added to the board’s June 25 meeting asking for an update on the capital improvements at the Country Club. He said funding was included in the fiscal year 2016 budget to create an outdoor seating area for the Tern’s Grille, make cosmetic changes and buy furniture, with the goal of generating additional revenue to support the golf club. Addi-

tionally, the board budgeted for an update to an existing engineering report on the Country Club building. He wanted to know the status of those projects. Herrick questioned the OPA’s priorities and suggested that the board needs to set that list. He said the intent of the patio dining area was to expand the season to generate additional revenue at the Tern’s Grille. “I think we’re starting to miss that opportunity the later the season goes” he said, adding that it should be easy to add some tables outside to make the area more inviting. When asked by Cheryl Jacobs, who chaired the meeting in the absence of OPA president Pat Renaud, why the furniture hasn’t been purchased, Thompson said it is an issue of timing. He responded that the association had higher priorities, such as opening the swimming pools by Memorial Day weekend, that required the attention of staff.

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12 Ocean Pines PROGRESS

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From Page 12 Now, however, they can begin working to accomplish smaller projects like that at the Tern’s Grille with public works crews doing some of the renovation work necessary to create the proposed patio. “It’s more than just ordering and purchasing furniture?” Jacobs asked. “Oh yes ma’am,” Thompson responded, adding there just isn’t enough staff to tackle all of the projects at one time. “I appreciate the explanation because it sounds like we just hadn’t ordered the furniture,” Jacobs said. Still, Herrick said the timing is off for completion of the Tern’s Grille project. He said a project to reconstruct a Huntington Park ballfield was on the board’s agenda for that same meeting, yet it will take four months for those fields to be usable, where right now there is a market to bring in revenue at the Country Club’s restaurant. Thompson pointed out that the field work, which he pulled from consideration by the board at that meeting, is being contracted out to a third party vendor, whereas the patio project is scheduled to be done by OPA crews. “My understanding was this was a semi-selfhelp project to get through the season,” Thompson said. The project could be completed more quickly by contracting it out, he added,

July 2016 Ocean Pines PROGRESS but then the cost would be significantly higher. “We’re trying to prioritize to keep the cost low,” he said. “If our teams can do it, it keeps the cost lower.” Thompson said that bidding out the work is easier for the association than doing it in house. “I’d be more than happy to bid it all out and have it done as quickly as we can. That’s the rationale I had behind it. It wasn’t trying to slow or speed up a process,” he told the directors When asked if he could order the furniture, Thompson responded in the affirmative. But Director Bill Cordwell said that doesn’t make any sense. He said the OPA shouldn’t be purchasing furniture “before we know where it’s going and how it’s gonna fit” on the new patio. He said the golf superintendent and golf pro have a plan for the area and the board needs to allow staff to proceed. “It’s not as if nothing’s being done. They have plans over there.” In the meantime, Thompson said the association has had repairs made to address significant water intrusion that had occurred at the amenity in recent months. He said the side of the building where the golf carts are parked suffered significant water damage as a result of missing and improperly installed flashing under the siding. Repeated repaving around the Country Club raised the level of the asphalt adjacent to the build-

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BOARD OF DIRECTORS

July 2016

By ROTA L. KNOTT Contributing Writer fter being called out by a candidate for the Ocean Pines Association’s Board of Directors for having sketchy information about a proposed capital purchase, General Manager Bob Thompson during the June 25 monthly board meeting withdrew his request to revamp the ballfield at Huntington Park. Brett Hill took to the microphone during the public comments section of the board meeting to chastise the OPA for failing to follow the proper process for bidding out the project to convert the existing 62,500 square foot softball field in the park to a multi-purpose field. “I believe the purchase is in violation of the bylaws,” he said, referring to requirements for competitive bids. Hill said only two bids were received for the project, which was budgeted at $25,000, and they were “apples and oranges.” The absence of a third bid is where Thompson violated the by-laws, according to Hill. “I don’t see how that’s competitive,” he said of the two bids, contending that the request for proposal for the field work was not even posted on the association’s Web site. During his public comments, Hill said at least one of the two bidders, Growing Solutions LLC and McDonald and Sons Inc., didn’t properly complete the bid documents. Additionally, he said

Candidate Brett Hill criticizes Hunting Park equipment proposal, Thompson removes it from agenda there appears to be a discrepancy in pricing from Growing Solutions LLC, the company to which staff was recommended bid award. He said the bid totaled $19,275, but there appear to be additional costs that were not inBrett C. Hill cluded on the bid firms that increase the total price to $29,300. Growing Solutions LLC’s bid included redoing the field by double aerating the existing grass areas, sprigging the field with Bermuda grass, distributing top soil, applying fertilizer and herbicide and designing and installing a new irrigation system. McDonald and Sons Inc. $45,612.10 bid called for rototilling the field twice, stripping the infield, cutting and filling and adding a new irrigation system. Included in the bid was laser grading the field to prepare it for grass at a cost of $9,375. Hill said the two companies’ bids are not comparable. “They are two completely different practices for the repair

on that field,” he said and encouraged the board to request proper documentation before voting to approve any capital project at the park. When the item came up for discussion later on the board’s agenda, Thompson asked to withdraw it from consideration. He said he did not “completely agree” with Hill’s comments but did acknowledged that there could be some confusion about the content of the two bids. He said he believes there was an update to the Growing Solutions LLC bid and that is the cause of the discrepancy

Country Club From Page 13 ing above the level of the siding. That also allowed stormwater to run off the pavement, under the siding and into the building. Thompson said he has also met with the engineering firm that completed a study of the Country Club structure in 2011 and has asked for a proposal for updating that document. “I’m assuming it’s not going to be terribly expensive

in funding. However, he wanted to verify that information with his staff. As for the process, Thompson said the OPA followed the procurement requirements and a third bid is not necessary. “We’re comfortable with the bids we actually have received,” he said, but again added “But I would like to regroup on this just to make sure don’t ask for something that is inaccurate.” Director Tom Terry asked Thompson to ensure to provide an explanation of the laser grade cost included in McDonald and Sons bid and why something similar is not part of the Growing Solutions LLC bid when he brings the project back for board approval. He said he wants to know “what value is this laser grade?” Director Tom Herrick suggested the OPA should acquire a third bid for the field work in Huntington Park. because it’s an update,” he said. “And if it’s not, we’re gonna go ahead and get moving on it.” In brief conversation after the meeting, Thompson told the Progress that the patio expansion project could include removal of the annex section of the grill area used for additional seating. It blocks the view from the main area of the grill to the ponds and greens. That would seem to be a more ambitious project that may or may not be doable in-house.

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BOARD OF DIRECTORS

July 2016 Ocean Pines PROGRESS 15

Beach Club bathrooms still on path to fall/winter project Collins unhappy that decision to go with replacement or renovation most likely will be made by new board

hind sending out and receiving bid proposals. He said other projects needed his attention for spring and summer, and that he hadn’t moved sooner on the Beach Club project because construction won’t begin until fall and conclude in late winter or early spring. Several months ago, Collins had offered a motion to direct the general manager to begin an RFP process, but he dropped it when Thompson presented his own plan at the same meeting with a timeline that dovetailed with

Collins’ own. The director has made it clear that he was upset that Thompson fell behind that timeline, making it less likely if not impossible that the current board will make a decision on the project, including what could be a controversial choice of a new building over a substantial renovation. The choice between replacement or renovation has been roiling board politics for some time, with three directors – Collins, Tom Herrick and Dave Stevens – generally in favor of renovation. Thomp-

son is in the other camp, for the most part, and he has allies on the board – Terry, Cheryl Jacobs, Bill Cordwell and OPA President Pat Renaud – who tend to agree with him. The board included $525,000 in the fiscal year 2017 budget for engineering and construction of a renovated or new above-ground bathhouse. The RFP solicits design-build proposals from contractors and can include renovation of the existing below grade bathrooms or con-

RE-ELECT JACK COLLINS Ocean Pines Association, Board of Directors

“Working Together for a Better Ocean Pines” • Remain dedicated to responsible budgets, reducing assessments if possible • Responsible stewardship of our Replacement Reserve Funds • Keep the renovation of the Beach Club bathhouse on track • Work toward improvement of our infrastructure needs such as our police facility, Country Club, roads, bridges, and continue our drainage project • Suggest the establishment of a Beautification Committee to improve the landscape and eye appeal of our community entrances, open spaces and amenities • Work toward solutions to incentivize members to maintain their property in a neat and orderly fashion • Do what is necessary to bring the Board, administration,and the GM into an amicable and positive working relationship Authority: Jack Collins Re-Election Committee

By ROTA L. KNOTT Contributing Writer ontractors must respond to a request for proposals to renovate or construct new bathrooms at the Ocean Pines Association’s Beach Club in Ocean City by July 26, but it is unlikely that staff will present a recommendation for bid award to the Board of Directors before September. That has caused some friction with Director Jack Collins, who wanted RFPs to be issued much sooner and bids submitted sooner as well, to allow the current board of directors time to review them and approve the project before a new board takes over in August. Collins and at least two of his colleagues also favor renovation over replacement of the lower level facilities with a new building and want to be able to review competing proposals rather than simply accept a recommendation from General Manager Bob Thompson. During his June 25 general manager’s report to the Board of Directors, Thompson said the Beach Club project is still anticipated for a fall and winter construction in order to have it ready for use by members in the summer of 2017. The RFP for the project was released on June 15 and is posted on the OPA’s website under the “projects” tab. On June 28, the OPA hosted a walk-through for any potential bidders and final proposals are due by July 26. Director Tom Terry immediately questioned the timeline, saying that the board does not typically meet in August. The OPA’s annual meeting is held in August and the results of the board election, in which three seats are up for grabs, will be released at that time. Terry wanted to know if the project timeline will require the existing board to hold a special meeting to review the proposals or if the project would be considered by the incoming board. “Is there gonna need to be a decision made by this board or can you wait until September to get this work started?” he asked. Thompson said he doesn’t know how long the staff review of proposals or how long the permitting process will take. It will depend on the proposals that are received, he said. “We won’t know definitively how much time we’re gonna need for all of that until we see what the bids are. That will give us a much better understanding based on the different types of bids that may come in. And then we’ll be smarter about it then,” Thompson said. However, he said he does envision bringing the project to the board in September for a final decision. That means Collins, who spearheaded the effort to bring the bathroom project to fruition, will be involved in approving the project only if he is reelected to the board this summer. Thompson told Collins recently that he had been unaware of the urgency be-

16 Ocean Pines PROGRESS

BOARD OF DIRECTORS

July 2016

No solution yet to mysterious odor at Yacht Club By ROTA L. KNOTT Contributing Writer n unpleasant odor is evident in parts of the Ocean Pines Yacht Club and no one can determine its origin. It’s a smelly situation that seems to be emanating from the downstairs ladies’ restroom but just what is causing the sulfuric stench remains a mystery. Bob Thompson, Ocean Pines Association general manager, during a June 25 meeting told the Board of Directors that he is taking steps to address the problem. But, so far, he said, he hasn’t had any luck determining the source of the odor. “We’re still having that recurring odor downstairs,” he told the board. Thompson said rumors that nothing is being done to address the problem are “factually inaccurate.” In fact, he said he has been working diligently to address the issue. So far, Thompson said the wax seals on all of the toilets in the restroom have been replaced with new ones and new check valves have been placed in the floor drain. Additionally, crews have inspected all of the trap primers to ensure that they operating properly and that all traps

Thompson says it’s not ‘factually accurate’ to say that staff has not been working to solve the problem had liquid seals and were installed at the proper height. Finally, contractors performed a pressurized sulfur smoke test on all of the sanitary sewer lines and the venting system to determine if there were any leaks. Nothing amiss was found, according to Thompson. He said a smoke test will typically find any cracks or separations of piping in the system, “but everything was fine.” “But with all these steps being taken they have not identified why this is occurring?” Cheryl Jacobs, who chaired the board meeting in the absences of OPA President Pat Renaud, asked Thompson. Thompson agreed that is the current situation and that he will keep trying to resolve the issue. The next step is to change the intake valve on the side of the building that is experiencing the odiferous intrusion. Thompson said the old Yacht Club had a similar problem with odors that emanated from the mens restroom. Ultimately, it was determined that that odors in the old Yacht Club build-

ing were intruding into the old facility through an intake valve. He said there could be a similar cause for the odors at the new Yacht Club. The intake value will be blocked off and tested to determine if that’s where the odor is coming from this time, too. If the test finds that the intake valve

Beach Club From Page 15 struction of a separate bathhouse above ground. The Beach Club is located on the ocean between 49th and 50th streets in Ocean City. The building was constructed approximately 45 years ago and includes a bathroom facility on the ground floor. The bathroom facility is approximately 3,000 square feet and contains both men’s and women’s locker rooms, showers and toilets. Included are areas for entry, storage and a janitor’s closet. Proposals must provide a detailed description of the renovation work to be completed or the new construction

is not the problem, then all of the wastewater lines will have to be scoped with camera to search for potential problems, he said. While the OPA continues to battle the bad odor, other repairs are under way at the Yacht Club. Thompson said work has already been completed on a rusty beam high up on the building’s entrance canopy. It’s been painted to match the color elsewhere. proposed and address mechanical, electrical, plumbing, interior and exterior finishes, site work and landscaping and technology to improve energy efficiency, safety and operational efficiencies. The proposals must include all costs for management and construction, design costs for the renovation or replacement of the facility, labor, material, equipment, permits, design, approvals, permissions and all other direct and indirect costs. Contractors are encouraged to propose any initiatives either in design or construction to enhance the project or reduce costs. The completed project, including a certificate of occupancy, must be delivered to the OPA prior to April 1, 2017.

IMPORTANT SIGNS !

CAUTION WHY ARE ONLY 2 OF 12 CANDIDATES FOR BOARD OF DIRECTORS SUPPORTING THE STATUS QUO?

STATUS QUO By authority of S.T.O.P (Stop Taxing Ocean Pines) Joe Rinehart, Treasurer

MUST GO

July 2016 Ocean Pines PROGRESS

18 Ocean Pines PROGRESS

BOARD OF DIRECTORS

July 2016

Board reverses earlier rejection of new equipment buys for golf course Special meeting in late June produces four votes for three mowers and a sprayer By TOM STAUSS Publisher t took a June 23 special meeting to approve several capital expenditures for the Ocean Pines golf course this summer. What in some years could have been considered routine was anything but this year, with the Board of Directors divided over golf course management issues from the macro level – is Landscapes Unlimited fulfilling its obligations under its management contract to boost golf memberships? – to the micro level of capital purchases already included in the 2016-17 capital budget for golf. In the latter case, top LU management had advised against the purchases, and a minority bloc of directors did not want to oppose the recommendation of LU corporate. Golf course superintendent Rusty McLendon wanted the equipment – three mowers and a fairway sprayer – while LU executives at the regional and national levels preferred the purchase of new golf carts, at least they did early in the 2016-17 budget review process, over the mowers and sprayer. McLendon is an employee of LU, and he has been in the awkward position of supporting purchases his bosses at the corporate level have not embraced. Apparently his differences with top management are being tolerated, with no indication that his job is in jeopardy or that he is suffering any retaliatory action by corporate executives. The minority bloc of pro-LU directors include Dave Stevens, Jack Collins and Tom Herrick, who voted at a board meeting May 26 meeting in opposition to the capital purchases. Stevens and

Collins were directors when the board acted to remove Billy Casper Golf as the golf course management firm almost two years ago, subsequently voting to hire LU as the replacement management company. Directors Tom Terry and Bill Cordwell were in the minority when the earlier board voted to fire BCG and hire LU, but they are now part of a majority faction of directors that has not been impressed with LU’s management of the course since the change in companies. The discontent lies mostly with the failure of the company to make good on its promise to rebuilding declining golf course membership. It appears not to be directed at Director of Golf John Malinowski or McLendon, both of who had been employed by BCG. OPA President Pat Renaud, then part of the majority of directors who voted for the management change, has since come over to the sketical side. OPA Vice-president Cheryl Jacobs is part of that faction as well. Their criticism of LU lies in its apparent failure to make good on its promise to boost golf membership in Ocean Pines. They also didn’t like LU management’s proposal to buy a new golf cart fleet in the current fiscal year. General Manager Bob Thompson opposed the purchase, and the four majority bloc directors agreed. They accepted Thompson’s recommendation to exclude the cart purchases this year while opting instead to buy new mowers and a sprayer. These decisions were adopted as part of the budget for this year, over the objections of Stevens, Collins and Herrick. Thompson argued that the existing cart fleet had been retrofitted with new batteries and had received cosmetic upgrades, relatively recently, and that full replacement was premature. Inclusion in the OPA capital budget To Page 20

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BOARD OF DIRECTORS

July 2016 the older unit will be sold or scrapped. At the May 25 meeting, Thompson had recommended purchasing three 80-inch cut Toro fairway mowers from Turf Equipment Supply at a cost of $44,633 each and the fairway sprayer at $68,224. He said the OPA will receive a significant discount for purchasing all of the equipment from the same company. Director Bill Cordwell offered a motion to accept the bid and purchase the equipment. “They were asked for by the superintendent who is taking care of our course,” he said. Herrick said the mowers were not recommended by Landscapes Unlimited, the professional golf management team retained by the OPA to manage its course, so he will not support purchasing the equipment. Cordwell responded that the management team didn’t want the mowers because they wanted to buy “nice new shiny” golf carts instead. He said the board specifically put the purchase of the mowers in the fiscal year 2016-17 budget because the existing mowers are well past their useful life and have had numerous repairs just to get them through last season. “During the budget process the board elected to move purchase of mowers forward,” Thompson confirmed. ‘The board made that decision after determining that the existing mowers in use on the

Golf equipment From Page 18 is not the final action required to bring about a capital purchase. After bid solicitation and vetting by staff, proposals for capital items must be presented and approved by the board. It’s that process that temporarily derailed these capital purchases at the May 26 meeting, when Jacobs was absent because of a family emergency. The proposed purchases failed on a 3 to 3 tie, with Stevens, Collins and Herrick opposed and Renaud, Terry and Cordwell in favor. With Jacobs present and Stevens absent at the June 23 meeting, a new vote on the golf course expenditures was foreordained, with the result more or less predictable. The vote for the new mowers and sprayer was 4-2 in two separate votes. The mowers came in $26,000 under budget. Collins raised an issue over whether the new sprayer will include a GPS (Global Positioning System). Thompson responded that it did, and that the GPS will allow for more precise spraying, making it possible for golf course golf maintenance crews to avoid traveling over sections of the golf course more than once. He said one of two sprayers in current inventory dates back to 2003; it’s this sprayer that will be replaced by the one just approved. Thompson said

golf course have many more hours of use on them than originally thought. As a result, the mowers were scheduled for replacement based on USGA guidelines for usage.” He said their replacement is a capital expenditure and does not have an impact on LU’s budget for managing the course. Thompson said he was following that budget directive in presenting bids to the board for consideration. He added that the new mowers have been in the superintendent’s requested budget for at least four years. Stevens responded the course superintendent works for the golf management company but he doesn’t speak for it. The management company, specifically the regional manager, made a recommendation and the board can’t just ignore it, he argued. Thompson clarified that the regional manager for LU is opposed to purchase the specific mowers recommended by the course superintendent but recommended buying a different type of mower instead. He said the regional manager suggested purchasing two mowers with a wider cutting base instead of the three 80-inch units in order to reduce the number of man-hours expended cutting the course. That option was evaluated, according to Thompson, but rejected by the course superintendent because the larger units

would be heavier and exert more pressure per square inch on the turf. Additionally, the bigger units would provide for a less consistent cut. “The smaller mowers allow for a more consistent cut because the base is not as large,” he said. “The fairways are mostly bent grass and require a light weight cutting unit to effectively groom the turf and not damage the fairway,” Terry said. “The soil structure underneath softens dramatically with moisture creating many rutting opportunities.” Maintaining a three-mower system also allows course maintenance staff to stay out of the way of golfers. Thompson said reducing it to just two mowers would mean they would need to stay on the course longer, breaching the 11 to 11:30 a.m. window when the first tee time of golfers makes their way to the latter part of the course. “I would not be putting the recommendation forward if I didn’t believe it was in the best interest of the community,” Thompson said. Renaud, who participated in the meeting via conference call, said the issue really is about the level of service provided to golf members. “I think that’s an excellent point,” Collins agreed, but he still wanted input from LU’s team. “I still think I would behoove us if we did receive some recommendation from corporate.” To Page 22

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22 Ocean Pines PROGRESS

BOARD OF DIRECTORS

July 2016

Board gives LU 30 days to present membership plan

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BJ’s Wholesale Club, in partnership with the Ocean Pines Association, donated $220 to the Worcester County Veterans Memorial at Ocean Pines as a part of its recent spring membership offer. Marie Gilmore (left), president of the Worcester County Veterans Memorial Foundation, was presented a check by Ocean Pines Association Department of Marketing and Public Relations representative Julie Malinowski June 23.

Thompson offers to take over golf oversight role from LU, Renaud says By TOM STAUSS Publisher n a closed meeting of the Board of Directors June 23 with executives of Landscapes Unlimited, the Ocean Pines golf course management company, the board gave the company 30 days to present a specific plan for how it intends to boost membership at the course, the Progress has been told by an informed source. The board’s working group that oversees LU – OPA President Pat Renaud and directors Tom Terry and Bill Cordwell – have not been pleased with the company’s progress so far in boosting membership. It was awarded the management contract in a contentious board process mostly on the strength of its promise to build membership through a “proprietary” method that, at the time, it declined to disclose. One LU executive even went so far to say that if the company didn’t produce the boost in membership – the company goal was to increase membership so that member revenues are roughly equivalent to revenues from non-member play – then it would expect to see its management contract terminated. The OPA golf working group has been waiting for details, growing increasing-

Golf equipment From Page 20 Terry reminded the board that the original request for the mowers was not put forth by the general manager. It was a request by the course superintendent for his department and the board moved it forward and tried to take into consideration input from LU. However he said, LU provided skewed information about the number of usage hours on the current mowers. He said the general manager presented a suggested purchase that is under budget and meets the needs at the OPA golf course. Terry said the board has a staff request to make a purchase that the board

put in the budget. “We’re simply re-adjudicating the argument that was put forth during budget (review),” he said in an effort to end the discussion. When the motion for approval of the mower purchase locked in a 3-3 vote, Terry immediately said the discussion would be moved to a special meeting of the board the following week. He did the same when the motion to approve the sprayer, about which there was no debate, failed for lack of majority support. No special meeting occurred the following week because of scheduling difficulties. Because of a lone hold-out, Renaud was rebuffed in an effort to revisit the issue via an email vote.

ly frustrated with the apparent lack of specificity from LU on how it intends to increase the number of members. There hasn’t even been a concerted effort to contact former members to encourage them to give Ocean Pines another try, Renaud has said. The company is in its second year of managing the course, the first under a budget it drafted. Last year, LU operated under a budget largely devised by its predecessor, Billy Casper Golf. For the most part, because it didn’t take over management of the course until June 1 of last year, it was not held accountable for membership levels last summer. Renaud recently told members of the Comprehensive Plan Advisory Committee that the working group hasn’t been happy with LU’s performance on the membership front for quite some time. A meeting of the board to air out differences with LU executives was in the works as a way to determine what specific plans the company has to remedy the membership shortfall, Renaud said. He also told the Progress after the meeting had concluded that OPA General Manager Bob Thompson had expressed willingness to oversee the management of the course should the To Page 24

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By ROTA L. KNOTT Contributing Writer roperty owners seeking to serve on the Ocean Pines Association’s governing body could soon be subject to personal background checks before being allowed to run for office if the Board of Directors acts on a recommendation from the 2016 Search Committee. During a June 25 meeting, directors voted unanimously to accept the annual report of the Search Committee, which is charged with soliciting candidates to run for the OPA’s Board of Directors, but took no action on recommendations included within the document. Martin Baer, Search Committee chairman, officially presented the 2016 report to the board and the three recommendations contained within it. One of the primary recommendations is that a criminal background check be added to the candidate vetting process for future elections. The committee further recommended that the Board of Directors review the findings of the criminal background checks and decide if the findings for candidates would disqualify any of them from running for election. Baer said if the board agrees with the recommendation to have background checks performed on future candidates, then the association will have to undertake the appropriate by-laws changes to implement the requirement. Before Baer even made his presentation to the board, the proposal sparked

BOARD OF DIRECTORS

July 2016

Search Committee proposes criminal background checks for OPA board candidates Board votes to ‘accept’ panel’s report but not recommendations the ire of one property owner. “This is absolutely incredible,” resident Joe Reynolds said. During the public comments segment of the board meeting agenda, Reynolds said he has “heard a lot of screwball ideas come out of this community over the last 27 years” but never anything as “ludicrous” as the Search Committee’s recommendation for background checks. Even though the board has not yet reviewed the recommendations, Reynolds said the fact that the committee even made such a suggestion should be grounds for reconstituting its membership. “We’re gonna let the board of directors decide based on a criminal background check if somebody can run,” Reynolds said and told directors, “hopefully you won’t even give this a second thought.” Baer argued that the committee made the recommendation because some members had concerns based on their experiences with other homeowner associations. He said it is possible

that board candidates could have criminal histories that could negatively impact the OPA, such as tampering with association funds. “We were just looking to safeguard our community with regard to that,” Baer said. For that reason, he said the committee felt it would be “good to know about” any candidate’s criminal history. He said the committee felt it was important to vet candidates on some basis other than simply whether or not they have paid their annual property assessments. “This is the only vetting process that occurs right now,” he said, without mentioning that the vetting is done by OPA staff, requiring no input from the Search Committee. This year, most if not all of the candidates did so without the need for encouragement from the Search Committee, a remnant from the days when Ocean Pines was sparsely populated and built out. If the board does elect to begin implementing requirements for background checks on candidates, then the associa-

tion will need to investigate the “necessary requirements,” Baer said. The committee did not provide any input as to what rules and regulations would need to be changed to add background checks to the candidate application process. Bill Cordwell was the only OPA director to comment on the Search Committee’s recommendation for background checks during the meeting. He said he keeps hearing that the association needs “transparency and information

24 Ocean Pines PROGRESS

Golf membership From Page 22 board decide to bring management of the course back “in-house.” For most of its 45-plus year of existence, the Ocean Pines golf course was managed in-house. A vote to return to in-house management would require a vote of the board to terminate the contract with LU, which could happen if the company doesn’t deliver a membership plan that a board majority regards as credible. Renaud declined to say whether he was ready to oust LU, but he made no attempt to disguise his and the working group’s growing frustration with the company’s executive leadership over the membership issue. Dissatisfaction is not aimed at Director of Golf John Malinowski or Course Superinendent Rusty McLendon, both of whom were BCG employees before being hired by LU.

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My goals as a member of YOUR Board of Directors are maintain and improve the lifestyle, affordability, homeowner value and public safety that we enjoy moving forward into the future and to restore YOUR confidence in the ability of the Board to govern the association with the highest professional standards. For more information on where I stand on the important issues please visit my candidate statement on the Ocean Pines Forum, https://www.oceanpinesforum.com Or contact me at FDaly73228@gmail.com

BOARD OF DIRECTORS Background checks From Page 24 has to get out there,” and then during Public Comments Reynolds said that the committee’s suggestion to perform background checks on candidate’s is a bad idea. “How can that be bad?” Cordwell asked. He said it would ensure that Ocean Pines residents know who they are voting for during board elections. However, he said he does not agree that either the Board of Directors or the Search Committee should have the ability to decide whether or not someone is a good candidate. “But shouldn’t we know who’s on our Board of Directors?” he said. Cordwell said without background checks it is possible for individuals who may have been convicted of crimes such as embezzlement or have filed for bankruptcy to win seats on the board and make decisions regarding the finances of the OPA. He said other criminal offenses could be even worse and hinted that the community could be at risk by inviting board members to events with children. “We don’t have enough in our reserves to write that check,” he said. The Search Committee’s other two recommendations barely garnered a mention during the meeting. One involved having the board task the committee with actively seeking part-time residents to serve on the board and the other was that the committee be allowed to conduct an online-only meeting to encourage part-time resident participation. Director Tom Terry made a motion to accept the report and Director Jack Collins, board liaison to the Search Committee, suggested he and fellow directors review the document and decide at a later date if they want to pursue any of the suggestions made by the group. OPA board resolution M-09 establishes the formation, roles and responsibilities of the Search Committee, which is appointed annually by Feb. 1. The resolution specifies that the role of the Search Committee is to stimulate community interest in the board election, solicit candidates from the OPA membership, provide information to and assist candidates with the application process. The committee is charged with verifying the validity of candidate’s applications and forwarding a list of all eligible candidates to the Elections Committee, which then conducts the actual election. Listed under the Search Committee’s responsibilities in that resolution is contacting individuals who may be interested in becoming a candidate, including property owners who may have served on committees, been involved in community organizations or affairs or were recommended by another member. Validation of eligibility is the responsibility of the association secretary after all applications are received by the annual deadline. The only criteria for running for election are that the individual be a property owner of record on Jan. 1 and have paid their annual association dues by May 15 of the election year.

July 2016 Ocean Pines PROGRESS

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Doug Parks I am a full-time resident but still work in the DC area and want to represent all Ocean Pines property owners! • WE need a team on the board that is aligned with the needs of the members • WE need to eliminate the wasteful and unwarranted spending that drives up assessment costs

Brett Hill I am a recent full-time resident as of 6/15, formerly a non-resident owner, raising my family in Ocean Pines! • WE need our amenities to be profitable and selfsustaining, per Resolution M-02 • WE need management that MANAGES our new and existing projects, as well as daily operations

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26 Ocean Pines PROGRESS

BOARD OF DIRECTORS

July 2016

Thompson abandons food truck proposal for this summer

With time running out and revenue estimates out of date, general manager pulls the plug on controversial purchase, but says he may bring it up for board approval next spring term-limited and Cordwell electing not to seek reelection this summer. Thompson said that he would have needed a board vote approving the purchase in May in order to have had the

truck up and running before the summer season. The delay meant that revenue projections for the truck could not have been met, Thompson said. But in fact the revenue projections

for the truck probably were unreachable even if the purchase had received four votes at the May 26 meeting, the Progress has determined. That’s because the approved budget for the fiscal year that began May 1 included the food truck as part of Yacht Club operations in May. According to the Yacht Club financials for May, the food q

By TOM STAUSS Publisher eneral Manager Bob Thompson’s proposed $55,000 food truck purchase is not going to happen this summer, a victim of a 3 to 3 tie vote in May and concern that with fewer weeks in which to operate this summer, revenue projections could not be met. The Board of Directors deadlocked on the controversial asset purchase in a May 26 vote, in which Cheryl Jacobs, a director who favors the food truck, was absent because of a family emergency. Her absence meant that the four directors who favored the purchase were not present to approve it. Directors Pat Renaud, Tom Terry and Bill Cordwell voted for the truck at the May 26 meeting, with Jack Collins, Dave Stevens and Tom Herrick opposed. There was some expectation that Thompson would ask for reconsideration in an email vote or at a special meeting later in May or in June, but there, too, the majority was stymied because of difficulties in arranging both the email vote and a special meeting. An email vote requires all seven directors to agree on that method of decision-making, and there was at least one director who objected to it. OPA President Pat Renaud also was having difficulty in scheduling a special meeting of the board in early June because of vacations and other problems in getting all seven directors to agree on a date and time. Thompson told members of the Aquatics Advisory Committee in early June that he had abandoned the food truck purchase for this summer, reserving the option of bringing it up again next spring “because it’s still in the budget” for the current fiscal year. He said he would determine whether to bring it up for approval partly on his assessment on whether the board that takes office in August would be receptive to it. Two proponents, Terry and Cordwell, will be off the board in August, Terry

The May financial statement for the Yacht Club indicates that the OPA administration had assumed that the proposed food truck would be operational in May, with projected revenue of $16,400 and expenses of $5,740. The food truck line items for revenue and expenses apparently will appear in every monthly financial for the rest of the year and likely will contribute to the amenity missing revenue projections.

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Food truck From Page 26 truck was budgeted to generate $16,400 in revenue that month against $5,740 in expenses, for a projected $10,600 surplus. The published profit-loss statement for the Yacht Club in May [Ocean Pines Association Web site, forms and documents, monthly financials] shows zero revenue for the food truck and zero expenses, contributing to the amenity’s $115,962 negative variance in revenues to budget. Indeed, because the board had approved the food truck, albeit tentatively, in the budget for the current fiscal year, the food truck apparently will show up as zero revenue and expense line items in the monthly financial statement for the Yacht Club for the rest of the year. Thompson could use the presence of the zeroes as a partial explanation for why the Yacht Club falls short of revenue and bottom line projections throughout the fiscal year, with a none-to-subtle subtext of blaming the board for failing to approve staff ’s recommended vendor for purchasing and retrofitting the food truck. But if Thompson indeed had intended the food truck to begin generating revenue for the Yacht Club in May, he would have needed to ask up for a board vote well before the May 26 meeting. Even if it had been approved then, the vendor would have needed some time to retrofit a 15-year-old Fed-Ex delivery truck

July 2016 Ocean Pines PROGRESS into a vehicle capable of delivering food service. As a practical matter, even a favorable vote May 26 would have meant delivery of the truck in June or perhaps even July, making it almost impossible to reach revenue projects for the first three months of the fiscal year, May, June and July. With Jacobs absent from the May 26 meeting, it became evident almost from the start of board discussion that Thompson wouldn’t have the votes to approve the purchase. Thompson opened the by reminding the board that it is designed to provide food service primarily to the Mumford’s pool during the lunch hours, in addition to special events such as concerts in the park, Fourth of July fireworks, the farmer’s market and the like, in addition to supplementary food service at the Yacht Club later in the afternoon. Cordwell offered up a motion to accept the $53,000 bid from the Lucky’s Garage in Delmar, whose Web site indicates that it’s the trade name for Malone and Companies, Malone referring to Mack Malone, one of the company’s principals. Thompson explained that Lucky’s Garage specializes in repurposing used Federal Express vehicles into food trucks. In answer to a question from Herrick, Thompson said the vehicle dated to the year 2000 but that there was no mileage or maintenance information made available to the OPA about the vehicle. Thompson stood by previous estimates for a near-break-even operational

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cost for the vehicle, but Stevens pushed back against many of the estimates and assumptions. He said the competitive bids were actually prices taken off E-bay, and that the $53,000 estimates for buying and repurposing the truck weren’t substantiated. “I can’t imagine buying it,” Stevens said, after noting that revenue estimates provided by Thompson mistakenly listed 16 summer weekends when the truck could be operational, rather than the 15 weeks between Memorial Day and Labor Day. When Collins asked Thompson whether he continued to support the food truck despite a lot of negative feel-

ing in Ocean Pines against it, Thompson said he did. The 4-3 vote keeping the food truck in the capital budget occurred during the board’s final 2015-16 budget review meeting Feb. 19, with Renaud and directors, Terry, Cordwell and Jacobs in favor. Collins, Stevens and Herrick voted in opposition to including it. Those views did not waver in the weeks leading up to the May 25 vote. Terry’s proposal to include the $55,000 capital item in the budget came with a caveat: Thompson would have to come back to the board with “additional information” about costs associated

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July 2016

Neighbors complain about Swim and Racquet Club bulkhead staging area Residents ask for board help in removing Fisher Marine from park and river setting By ROTA L. KNOTT Contributing Writer ed up with living in a perpetual marine construction zone near the Swim and Racquet Club, residents are calling on the Ocean Pines Association’s Board of Directors to return use of the property to a parks and recreation area. Community spokesperson Robin Tomaselli, backed by numerous others who

live near the Swim and Racquet Club, approached the board with complaints about the condition of the property during the Public Comments segment of a June 25 board meeting. “We want this area returned to a park and recreation area immediately and ask that it be maintained that way all year long,” said Tomaselli, representing more than 50 households and countless residents and visitors who utilize Swim

and Racquet Club marina tennis courts and recreation area. She alleged that many violations of both the OPA’s declaration or restrictions and state law have taken place in the area, which is part of the Atlantic Coastal Bays Critical Area, during the past eight years. Until eight years ago she said the area that is now referred to as the staging area by OPA General Manager Bob Thompson was considered simply a transfer station by the previous general manager. At that time only an occasional truck from Ocean Pines public works would transfer dirt onto a barge. “This happened about two or three times a month for only a few minutes each day and drew little concern from

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Food truck From Page 27 with the food truck, including items such as licensing, associated equipment costs, and depreciation, before the board would authorize Thompson to follow through with a purchase. Terry said he agreed with the impression that the vote approving the food truck came with an asterisk, acknowledging that its inclusion in the budget did not come with a presumption that the $55,000 would be spent. He acknowledged that every bud-

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any of the residents of the surrounding communities,” she said About six years ago, Tomaselli said the OPA began allowing Fisher Marine, the company with which the OPA contracts to complete its annual bulkhead replacement project, to use and store equipment on the Swim and Racquet Club property for up to ten months per year. Then the company reportedly moved in barges, and so did McGinty Marine, another local marine contractor, according to Tomaselli. She said residents have complained to the OPA repeatedly but nothing has been done to remedy the situation. So they contacted the State of Maryland, which investigated immediately and found the barges were illegally moored and stored in the canals, she said, adding that the marine companies were cited and made to move the equipment. Since then, Tomaselli said, the association has allowed Fisher Marine to use the so-called staging area and parking lot at the Swim and Racquet Club as a location to store pilings, lumber and materials for bulkhead construction, as well as a 20-foot tool trailer, bulldozer,

28 Ocean Pines PROGRESS

geted capital expenditure above the general manager’s approval threshold must come to the board for a vote, but in the case of the food truck he said that Thompson would have a heavier burden to prove to a board majority that Ocean Pines will benefit from it and that Thompson’s cost estimates are realistic , Terry told the Progress. Thompson began the discussion of the proposed food truck at the Feb. 19 meeting by repeating earlier assertions that it would only increase the OPA lot assessment by $1 after operating profits are factored in. Since the purchase is considered new as opposed to replacement capital, it would be funded out of next year’s assessment rather than reserves. Stevens questioned the accuracy of the predicted $1 impact and said he was “dissatisfied” with Thompson’s supporting rationale for the food truck. Terry acknowledged that there has been a lot of opposition to the food truck in the community – the “public clearly wants it out,” he said – but he contended that critics have “totally misrepresented” Thompson’s proposal. There’s “a reasonably solid idea behind it,” Terry said, suggesting that it was not so much Thompson but Yacht Club manager Jerry Lewis who was “behind it” from the beginning. Terry said that in addition to offering supplemental food service to the outside deck and swimming pool at the Yacht Club, the food truck, according to plans, will also be parked at the nearby Mumford’s Landing pool during lunch hours. Additional venues for the food truck would be the weekend farmer’s market, concerts in the park, and other events sponsored by the OPA, as well some events in Ocean City where food trucks are permitted.

July 2016Ocean Pines PROGRESS

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BOARD OF DIRECTORS

July 2016

Annual garden tour

On June 9, the Ocean Pines Garden Club held its annual garden tour featuring eight gardens in Ocean Pines. This year’s theme was “Hats Off to our Gardens.” Tour gardens included lawns, flowers and trees, vegetables, tropicals, statuary, and even a train garden. The tour was followed by a luncheon at the Ocean Pines Yacht Club where a scholarship award was presented to Zainab Mirza, a recent graduate of Stephen Decatur High School. She will be attending American University in the fall to study international relations with concentrations in environmental policy and peace and conflict resolution. Pictured, bottom photo, are left to right, Judy Baumgartner, OPGC Scholarship Committee chair; Zainab Mirza, scholarship recipient; and Ruby Mirza, scholarship recipient’s mother. Also pictured (left photo) are, left to right, OPGC members Lilly Cordwell, Robin Wolinski, Anita Roberts, Marsha Reeve, Barbara Ferger, and Marian Bickerstaff.

Swim & Racquet

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From Page 28 trucks and other equipment. Again, she said residents complained to the OPA but nothing was done. In meantime one resident contacted Fisher Marine directly and asked the company to move its tool trailer and the company complied. Ocean Pines resident Joe Reynolds echoed Tomaselli’s statement during the Public Comments segment of the board’s agenda. “It’s been a disaster been long time over there,” he said. “And it’s about time that something be done about it.” Tom Janasek, a property owner and candidate for the board of directors, agreed and reminded the board about equipment that the marine companies have moored at the dock as well. Tomaselli presented the board with a letter from Kathy Phillips, Assateague Coastkeeper, in support of resident’s concerns. Phillips said the area subject to discussion is adjacent to the St. Martin

River, which is impaired for sediment and nutrients and is part of the coastal bays watershed that has continuously received a “D” grade because of the impairments. The river is closed to shell fishing and struggles due to stormwater impacts from both urban and agricultural runoff, she said. While she acknowledged that marine yards are allowed in the critical area, Phillips, apparently under the impression that the OPA is leasing the site for private commercial use, suggested the association require a wider, more protective vegetative buffer around the property. Following a May 25 visit to the site, Phillips said inadequate sediment and erosion control precautions were in place to prevent sand and dirt being stored there from washing into the creek and river and the construction entrance was not properly stabilized. Poorly maintained construction equipment was stored in a manner that could allow leaking fluids to be washed into the creek and river, she said. To Page 32

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BOARD OF DIRECTORS

July 2016

Thompson says bulkhead staging area mostly cleaned up

day after a group of Ocean Pines residents appeared before the Board of Directors to complain about a bulkhead staging area in the Swim and Racquet Club recreation campus, General Manager Bob Thompson said the area had been mostly cleaned up by Fisher Marine, which has been op-

erating a bulkhead replacement staging area at that location. In a brief conversation with the Progress on June 26, the day after the Board of Directors’ June 25 montly meeting, Thompson said that only one piece of equipment remained at the location, with much of the clean-up occurring

even before the neighbors showed up at the board meeting to complain about the situation. An inspection of the property by the Progress indicated that Thompson was correct about the remaining machinery; one yellow vehicle that looked it could be a grader was parked on site.

What Thompson failed to mention was the presence of three large piles of gray dirt or gravel within easy view of the Swim and Racquet Club pool, tennis courts and basketball court. The piles were still there as the Progress was going to press the first week of July. – Tom Stauss

Swim & Racquet

dockage of their barge and boats that is not within an area designated for recreational use, which is a much less polluting use of that land.” Tomaselli said the Swim and Racquet Club is designated in the restrictive covenants as a park and recreation area and by the state as part of the Atlantic Coastal Bays Critical Area. Yet the conditions in the area are continuing to deteriorate every year, she said, adding that items stored on the site include not just equipment and construction materials but also hazardous materials, and explosive fluids. She said they are “being left and stored without care or concern by the manager or board members to the safety of the Ocean Pines residents and visitors who utilize these areas as they are designated park and recreation” and “care

or concern to the damaging environmental impact created by the construction site on our water’s edge.” In the restrictive covenants, Tomaselli said the Swim and Racquet Club is listed as a park and recreation area; there is no mention of it being used as a construction staging area. The OPA (as a social welfare organization under the Internal Revenue code) is supposed to promote the welfare of the community, but creating a dangerous situation for children and adults who use the Swim and Racquet Club property is not promoting community welfare, she said. Tomaselli said residents of the area want the Swim and Racquet Club to be returned to the state that it was intended for at its conception, “a safe and eye-pleasing area for the residents of

Ocean Pines to enjoy.” She suggested to the board that the bulkhead replacement staging area be moved to the wastewater treatment plant area, which is county owned. If any dredging is needed to accommodate the required equipment, then Fisher Marine should do it to suit their needs, she said. If there is any additional cost to establish a new area for staging bulkhead replacement, that can be spilt among all waterfront owners and Fisher Marine since both parties benefit, she argued. “We’re asking you to do the right thing and for the first time in eight years maintain that park and recreation area as park and recreation,” Tomaselli told the board. Directors did not engage in discussion or ask follow-up questions.

From Page 30 Phillips contacted Worcester County inspectors, who visited the property that same afternoon and found several violations. The marine construction company was ordered to clean up and properly stabilize the site, she said. During a visit the following week, Phillips found that most of the materials and equipment had been removed. “This was a very positive step in the right direction. However, it would be much better for the health of the river if the Ocean Pines Association and the marine construction company could find an alternative location, outside of the critical area buffer, for the storage of their equipment and debris, and perhaps find an alternative location for the

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OPA BOARD ELECTION

July 2016

Trendic, Lind pledge to support ‘new management’ for OPA Thompson blamed for board, GM dysfunction; other candidates stop short of pledging GM’s replacement

is organized in August. Thompson’s tenure with the OPA has been an issue in prior board elections, but this summer the general manager’s status is far and away the most significant issue dividing candidates and giving Ocean Pines property owners a real choice in the future of their community. Both Lind and Trendic say that the relationship between the board and the general manager is dysfunctional and

blame it mostly on the general manager. Other candidates agree that the relationship is dysfunctional, but tend to blame the board as much or more than Thompson for that. Even if Trendic and Lind win the election this summer, they would need the votes of at least two carry-over directors to oust Thompson “without cause,” other than a desire to take Ocean Pines in a new direction under new leadership.

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The OPA would owe Thompson nine months of a pay and benefits should his employment be terminated by majority vote under the “without cause” standard. If past is prologue, Thompson would be replaced as acting general manager by whomever the board elects as president. A search process would commence shortly thereafter for a replacement, with department heads and other key personnel asked to stay on during a transition. The search process could include consideration of management companies such as Leggum and Norman, the firm that manages the Parke section within Ocean Pines to the satisfaction of most residents. The two directors most likely to join Lind and Trendic in voting for new management are Dave Stevens and Tom Herrick, both of whom have been vocal in their dissatisfaction with the general manager’s job performance for quite some time. Herrick has said on more than one occasion that he believes board dysfunction is caused primarily by differences over Thompson between a majority and minority faction on the board. In a recent interview with the Progress, Lind acknowledged that “it is just me and Slobodan who have been clear about our viewpoint that the GM situation must be corrected for the good of the community, and must be addressed immediately.” Lind said that “I see no choice but to bring new management to Ocean Pines. There is a groundswell of discontent, especially among the year round population, when it comes to the current GM.” Lind that while he and Trendic have been out front in their call for new management, “there are three or four other candidates who seem to be leaning in the direction of considering GM options, but they have stopped just short of making a definitive statement on this GM’s future employment.” The candidates include Brett Hill, Tom Janasek, Doug Parks and, perhaps, incumbent candidate Jack Collins. In various candidate forums and other public venues, all have expressed dissatisfaction with the GM’s relationship with the board and, in varying degrees, with his job performance. Hill crticized bid irregularities with equipment purchases at Huntington Park that was pulled from the board meeting agenda last month by Thompson, and, at the Parke’s candidate forum June 6, Hill singled out credit card ma-

By TOM STAUSS Publisher wo of the 11 candidates competing for the Board of Directors this summer have confirmed, on oceanpinesforum.com and in interviews with the Progress and elsewhere, that they would vote to terminate the contract of Ocean Pines Association General Manager Bob Thompson on “day one” or as soon as possible when a new board

OPA BOARD ELECTION

July 2016 Ocean Pines PROGRESS

From Page 34 chine problems and the early closure of the tiki bar at the Yacht Club as indications that not all is right with OPA management currently. Seen as much more supportive of the general manager and his continued tenure in Ocean Pines are candidates George Simon, Frank Daly, Pat Supik, Ray Unger, and Larry Perrone. In varying degrees, all say that if the general manager is not effective in doing his job, then a lot of the blame has to fall with the board for failing to set out clear objectives and direction. Perrone has said that if the board provides new direction to the general manager and he fails to deliver, he would be receptive to a change in management. Lind says some of these candidates “are very content with the way things have been,” and “will attempt to label any effort directed at remedying the current OPA dysfunction as being ‘negative’.” According to Lind, the last two elections in Ocean Pines “gave us three new directors whom the voters had hoped would bring us change regarding the relationship between the board and the GM, candidates who basically were expected to ‘rein in the GM’.”

He said three of the four open seats in these last two elections were filled by candidates who had “made their dissatisfaction regarding the GM known.” Lind said one of those candidates ”quickly ‘converted’ and joined the lockstep majority, the very majority that he was elected to office to oppose,” a reference to current OPA President Pat Renaud. Lind said that in the 17 elections he has observed since living in Ocean Pines, “the last three (in which the GM has been a leading issue) have been unprecdented. A GM should not be a controversial figure, a GM should not be a polarizing figure. A GM is not elected by the people, a GM is an employee who answers to the people’s representatives, the Board of Directors. There should be no politics and personality in the GM office.” Lind said he would favor a quick exit for Thompson should two, or even three, of the anti-Thompson candidates emerge victorious in this summer’s voting. If that happens, “is it wise to have an employee who is concerned with the possibility of termination having access to the OPA records, contact lists, personnel info etc?” He said the results of the election will “dictate the strategies and timelines that should be implemented to effect management change.”

Directors divided over open vote count Committee chairman says his integrity has been challenged by those promoting open process By ROTA L. KNOTT Contributing Writer he Board of Directors tabled consideration of a motion to open the annual counting of ballots cast during the Ocean Pines Association election in part because the advisory committee that recommended doing so had not broached the issue with the committee that actually runs the election. The Bylaws and Resolutions Advisory Committee has been asked to meet with the Elections Committee to see if an agreement on the issue can be worked out, perhaps before this summer’s ballots are opened and counted. Early indications are that the two committees will not be able to reach agreement, with the Elections Committee chairman, Bill Wentworth, continuing to oppose opening up the vote count because he regards the proposed change in procedure as an attack on his person-

al integrity. Last year, he closed the vote count on the grounds that it’s an OPA personnel matter. Director Jack Collins, liaison to the bylaws and resolutions committee, offered a motion during the board’s June 25 monthly meeting to eliminate the words “in closed session” from language in board resolution M-06, which outlines election procedures including the ballot counting process. Director Tom Herrick gave a second to the motion. The removal of those three words would have the effect of requiring the vote count to be conducted in open session, which bylaws and resolution committee members say is already mandated by the Maryland Homeowners Act. Collins said given the number of candidates, 12, vying for three open seats on the board in this summer’s election and what he agrees is an apparent vio-

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OPA BOARD ELECTION

July 2016

Vote count From Page 35 lation of the Maryland Homeowners Association Act by counting ballots behind closed doors, the committee suggested doing so in an open setting. He said nine of the 12 candidates will not be elected to the board, with many losing by just a few votes. Additionally, he said the state requires homeowners’ association meetings, including those of advisory committees, to be held in open session and counting ballots in private may violate that provision of state law. There are some exceptions to the open meeting requirement, including personnel matters. By opening up the process under these circumstances, Collins said the OPA can comply with the law and validate the vote count is performed properly according to the required process. “We guarantee the integrity of the process,” he said and eliminate any questions about the accuracy of the vote count and perceptions of a corrupted process. “To my way of thinking it just makes absolute common sense,” he said. Collins said the committee’s recommendation is not intended as a reflection upon the Elections Committee, its chairman or members. Before opening to board discussion, Cheryl Jacobs, who chaired the meeting for absent OPA President Pat Renaud,

pointed out that Collins is one of the 12 candidates running in the election. Director Bill Cordwell said the issue of counting the ballots behind closed doors comes up every year as part of a conspiracy theory. “To say that it has nothing to do with the integrity of the people on this committee is just bull. You are questioning the integrity of everybody,” he argued. Cordwell said counting ballots in closed session is not a violation of any law. But doing so in public and having dozens of people in the room at the time could cause problems. He said it’s not even the Elections Committee that does the counting; that’s handled by a private contractor. “Stay out of the election process,” Cordwell told his fellow directors. “We have a process. It works fairly every year.” Herrick said he supports increased transparency and doesn’t have a problem with a public ballot counting, adding that the board is fully involved in the election process because it develops the guidelines under which the committee operates. Still, he said every year the board hears the conspiracy theories about the election being rigged. “By opening up the process, that would end,” he said. Jacobs said the argument that counting the ballots in private violates state law is incorrect. She said the Maryland

Homeowners Act only applies only to meetings. The ballot counting is not a meeting, she contended, and therefore can be done without opening it to the public. Director Tom Terry said he didn’t realize that the proposal to change the resolution came from the Bylaws and Resolutions Committee and not the Elections Committee. He said that is a “very interesting dynamic” in that one committee is saying the documents governing another committee ought to be changed. “I just question that process in itself,” he said. Terry said the OPA already has volunteers in the room during the ballot counting to audit the process. He said the process shouldn’t be changed in the middle of an election. “If this process is going to be changed, it needs to be changed not in the heat of the elections process,” he argued. Since the election process has already begun this year, Terry suggested the two committees meet to discuss the issue and determine if the proposed change has any merit. He said it is inappropriate that the Bylaws and Resolutions Committee took action without talking about the proposal with those on the Elections Committee. If the committee’s recommend such a change, the board could start the process in September and have it in place for next year’s election, Terry said.

For us to change the election process now, quite honestly I think is highly inappropriate,” he said, adding “You don’t change the rules of the game, once the game is started folks.” Collins supported Terry’s proposal that the two committees get together to hash out the issue. But he wanted that done sooner rather than later. He said if the can get together soon, the board could still make the change to the resolution and open up the ballot counting in time for the August election results. During the public comments segment of the board agenda, Elections Committee Chairman Bill Wentworth went on the offensive about Collins motion to change the resolution regarding election procedures. He said as a courtesy that he should have been contacted about the proposal. “You are challenging the ethics of myself and the members of the committee. And you will not challenge our ethics,” Wentworth told the board. He pointed out that the ballots are processed by a private contractor (using a Scantron) and that the Elections Committee members are not the sole people in the room when the counting is done. Also during public comments, board candidate Slobodan Trendic offered his support for opening up the ballot counting so the public can attend. “I certainly would like to do so my-

36 Ocean Pines PROGRESS

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OPA BOARD ELECTION

July 2016 Ocean Pines PROGRESS

Trummel says ‘personnel matters’ insufficient reason to close count

Trendic says he will attend vote count meeting Aug. 12

Former bylaws and resolution committee chair says a quorum of committee assembling for any purpose constitutes a meeting subject to the Maryland Homeowner Association Act and its open meeting requirements By TOM STAUSS Publisher cean Pines Association Vice-President Cheryl Jacobs recently characterized former Bylaws and Resolutions chairman Jim Trummel’s signature on the board resolution M-06 governing election and vote count procedures in Ocean Pines as indicative that he believes the traditional counting of ballots in closed session of the Elections Committee is legally acceptable. Jacobs noted that Trummel, like Jacobs, is a lawyer, implying that he knew what he was going when he crafted and signed the resolution. Well, in turns out that Jacobs may have jumped to conclusions about Trummels views on M-06 without actually talking to him before she did so. The result is that she mischaracterized his nuanced views on M-06. In a July 5 telephone interview with

the Progress, Trummel said his signature on the M-06 resolution, and the fact that he wrote most of it himself, doesn’t necessarily mean he agrees that the committee can count ballots in closed session. That might seem contradictory, because in fact M-06 specifically says that the committee can conduct a vote count in “closed session.” He acknowledges there is an apparent conflict in M-06 language and the Maryland HOA Act. “M-06 gives the responsibility for overseeing the vote count to the Elections Committee, but it still must do consistent with the Maryland Homeowners Act,” Trummel said. That means the elections committee, before going into closed session to count the ballots, must invoke one of the six reasons for going into closed session authorized in the Maryland HOA act, he

Vote count

mon ground on the issues. Collins gave a second to the motion to table. The Progress has learned that the week after the board meeting, Elections Committee member Marty Clarke had lunch with Wentworth to privately discuss the issue. “He still feels like his integrity has been questioned,” Clarke said, suggesting that a meeting of the minds between members of the two committees remains unlikely.

From Page 36 self,” he told the board. Trendic also took issue with the way candidates were able to subvert the restrictions on the length of candidate’s responses to questions that were printed in the Ocean Pines Report newsletter. While the OPA resolution limits the length of candidate biographies to 200 words, it does not put a word limit on responses to election questions. Still most candidates stuck to the 200-word limit, assuming that met the requirements of the resolution. Others, however, wrote pages of responses that were then printed by the OPA. He said that is unfair and the association needs to create a level playing field for candidates. Candidate Frank Daly is the candidate whose responses were much longer than 200 words. Jacobs said the two committees, Bylaws and Resolutions and Elections, could meet and work out both issues, public counting of the ballots and the word count requirements for publication of candidate information. “Why not address all of those items at the same time?” she suggested. Terry agreed and said while the resolution does specify a word limit on certain candidate information there is a loophole in it that needs to be closed. “There was a loophole there that some people took advantage of and wrote an enormous amount of words,” he said.” He made a motion to table consideration of the proposal so the two committees can meet and try to find some com-

said. That was done last year. When two property owners showed up for the vote count meeting, committee chair Bill Wentworth invoked “personnel matters” as the reason the committee was going into closed session to count ballots. Trummel said in his “personal opinion” the “personnel matters” exclusion is not a proper reason for closing a meeting of the committee to the OPA membership. He said that while committee and board members might be construed as “personnel of the association,” candidates running for a seat on the Board of Directors in an election definitely are not. Counting ballots therefore can’t be considered a personnel matter as a reason for justifying closure of the meeting where the election ballots are tabulated, he said. During a June 26 meeting of the Board of Directors, Jacobs also argued that the meeting in which votes are counted isn’t actually a meeting, an opinion that OPA legal counsel Joe Moore echoed in comments to the Progress after the meeting. “It’s not a meeting, it’s a counting of ballots,” Moore said, using the same language as Jacobs did during the meeting. Trummel differed with Jacobs and Moore, contending that as long as a quorum of the committee is assembling for To Page 39

Hopes large group of property owners will show up to challenge ‘illegal’ closure of session

oard of Directors candidate Slobodan Trendic has put Ocean Pines President Pat Renaud and the rest of the Board of Directors on notice that he won’t passively accept a decision by the Elections Committee and the board to allow the counting of ballots in this summer’s election in closed session. He raised the issue of the closed count in a June 26 email to Renaud, giving the OPA president until July 1 to respond. The deadline came and went, with only one director, Tom Herrick, acknowledging receipt of the email. “I am yet to hear from you (Renaud) and the Board on matter I raised in my June 26th message. This is unacceptable,” Trendic wrote in a follow-up email to Renaud July 7, adding, “Be aware that I plan to attend August 12th Elections Committee meeting and I will insist on observing the vote count. I hope other candidates and the media representatives will join me in challenging your unjustified ‘closed session’.” He also warned Renaud that “if To Page 39

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38 Ocean Pines PROGRESS

July 2016

OPA BOARD ELECTION

July 2016 Ocean Pines PROGRESS

Trendic challenge From Page 37 the community elects me and like-minded candidates, you will have a first-hand opportunity to observe some swift and prompt actions,” without specifying what they might be. Trendic has said that he supports quick action by the board to replace General Manager Bob Thompson. “In a few week’s time we will find out if the Ocean Pines homeowners want to put an end to the missing Board leadership and failed management of our community,” Trendic told Renaud. Trendic told the Progress that he hopes that many Ocean Pines property owners will attend the meeting to oppose any attempt by the Elections Committee to close the meeting to property owners. He said that if enough property owners show up to protest the closure and refuse to leave if asked, the committee may be forced to back down and count the ballots in open session.

Trummel From Page 37 a specific purpose – in this case, overseeing the tabulation of OPA election ballots by Scantron equipment – then it’s a meeting of the committee and subject to the HOA act’s open meeting requirements. He offered one way to circumvent the HOA Act’s open meeting requirement, if that is what the OPA decides it wants to do. He said the committee could delegate the counting of ballots to a minority of its members, less than a quorum in other words, who he said could meet in closed session to count or oversee the counting of ballots without running afoul of the HOA Act. “It’s not a meeting of the committee if a quorum isn’t present,” he said. But if the OPA decides to count election ballots that way, it would constitute a change in current practice and in resolution M-06 that gives the responsibility of counting ballots to the full elections committee, not a subset of the committee’s members. “M-06 would have to be tweaked to allow less than a quorum of committee members” to oversee the count, he said. Given problems that have risen with the committee’s invocation of personnel matters as the reason it was going into closed session to count ballots, Trummel suggested that M-06 needs revision, to reflect whatever procedure the board decides is appropriate for vote counting. He also said the resolution needs to be brought into harmony with the HOA Act. Despite his call for changing M-06, Trummel said he didn’t regret having signed the document back when he chaired the committee. Not every situation can be anticipated, and when problems and conflicts arise in the text of resolutions they should be fixed, he said.

Safe boating course

The last USCG Auxiliary Safe Boating Class of 2016 will be conducted July 12-14 at the Ocean Pines Library from 6 to 9 p.m. each night. To register, contact Barry Cohen at 410-973-1097 or email at bmc_rsc@yahoo.com. The fee is $15. The Maryland Safe Boating Class and certificate are required for boat operators born after 1 July 1972. At left is Flotilla Commander Art Flora, lecturing on best practices when hunting from a boat.

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40 Ocean Pines PROGRESS

OPA BOARD ELECTION

July 2016

PARKE CANDIDATES FORUM

Candidates line up in two camps, those generally satisfied with OPA management and those who aren’t By TOM STAUSS Publisher harp differences emerged among the 11 candidates who are running for the Board of Directors this summer, as they debated and answered questions at the Parke forum June 6 in the clubhouse that serves this 55-plus community in South Ocean Pines. A 12th candidate, Sharona Ezaoui, recently withdrew from the race. All 11 remaining candidates were present at the Parke’s forum. The candidates fell into two camps on the issue of whether they tend to favor renovation or replacement of aging Ocean Pines’ amenities, such as the poorly maintained Country Club, and whether OPA reserves are too high or too low. Based on comments at the Parke forum and in other venues, Slobodan Trendic, Steve Lind, Jack Collins, Tom Janasek, Brett Hill and Doug Parks are in the camp that says the OPA overfunds

reserves, and that these bloated reserves provide the funds used to replace buildings at a substantial expense. They prefer spending the money necessary to keep OPA facilities in a state of good repair and, when it becomes necessary, renovate them. All were critical of OPA management for allowing OPA facilities to deteriorate by deferring needed maintenance. All seem solidly in the camp that the Country Club should be renovated rather than replaced with a smaller pro shop building, in part because they don’t want to lose the meeting space potential of the little used upper level. Other candidates either have not weighed in on the reserve fund issue or are more in the school that suggests the OPA underfunds reserves. During her two years as chair of the Budget and Finance Advisory Committee, Pat Supik has spoken about the underfunding of reserves. She has been publicly endorsed by OPA assistant

treasurer Pete Gomsak, who is identified with that view. Supik has also been leaning very much in favor of replacing the Country Club rather than rebuilding it. At the Parke forum, candidate George Simon also emerged as a strong proponent of replacing the Country Club. He said it’s poorly designed for tournaments, is cut up into too many rooms, is not in good shape, has a bad odor, will face major ADA challenges if renovated, and that it will be difficult to entice contractors into giving a firm price for renovation. Both Supik and Simon have been targeted with non-endorsements by the STOP (Stop Taxing Ocean Pines) group that surfaces during election season. Individuals associated with STOP include former board member Marty Clarke. STOP apparently won’t be publicly supporting candidates this cycle, instead focusing their efforts on encouraging property owners not to cast ballots

for Supik and Simon. During the forum, candidates differed on whether OPA General Manager Bob Thompson should be removed from office. Two candidates, Slobodan Trendic and Steve Lind, were candid in their desire to see new management in Ocean Pines. Other candidates, particularly Brett Hill and Tom Janasek, cited examples of management shortfalls and seemed the most likely votes for a move to replace Thompson should two carry-over directors, Dave Stevens and Tom Herrick, agree that change is warranted. On the other side, candidates George Simon and Frank Daly were both supportive of Thompson, with Daly suggesting that any move to remove him should be planned out very carefully. Other candidates who have been supportive of Thompson in the past are Supik and former director Ray Unger. Another election that has emerged this cycle is the practice of counting election ballots in close session. [See articles elsewhere in this edition for details.] Trendic is the most outspoken candidate in opposition to close session counting of ballots, although Collins, the one incumbent board member seeking reelection to a three-year term this summer, also is on record as supporting an open vote count. The issue was not a dominant one at the Parke forum, however.

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OPA FINANCES

July 2016 Ocean Pines PROGRESS

OPA reserves soar to $9 million, boosted by new assessment dollars By TOM STAUSS Publisher s always occurs in May, the first month of a new fiscal year, reserves held by the Ocean Pines Association soared, reflecting the infusion of new lot assessment dollars. As of May 31, total reserves were $9.05 million, a sizeable jump from the 2015-16 end-of-year balance of $5.68 million. The increase works out to be $3.7 million. Most of that increase occurred in the Major Maintenance and Replacement Reserve, which grew from $4.1 million at the end of April to the $6.2 million at the end of May. The historical component of the replacement reserve, that which is attributed to funded depreciation of OPA assets, rose from $5.3 million to $6.5 million, mostly attributable to $1.549 million in new assessment dollars. The legacy component of the replacement reserve, that which is attributed to supplemental funding earmarked for major new projects, improved from a $1.2 million deficit at the end of April to a $342,181 deficit as of May 31. There is some sentiment among OPA Directors to eliminate the separate legacy funding, once called the five-year-plan, next year. Whether that occurs will probably depend a lot on which candidates to the board are elected in this summer’s election. Also experiencing a major transfusion of funds from new assessment is the bulkhead and waterways reserve, which had a $1 million balance on April 30. As of May 30, the balance had grown to $1.87 million, mostly from the waterfront assessment differential. That is roughly $1 million more than what is spent on bulkhead replacement each year, suggesting that this particular

whether this reserve needs to be continued. It grew from $272,628 at the end of April to $407,992 at the end of May, with

$135,000 in new money from assessments. If certain liabilities turn out not to require payment, no other purpose has been identified for this reserve.

Aquatics membership spikes early in new fiscal year Golf, tennis, platform tennis fall behind budget By TOM STAUSS Publisher t didn’t take long for Aquatics to establish itself as the Ocean Pines amenity with the largest membership growth early in the 2016-17 fiscal year.

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According to the May financial report issued by OPA Controller Art Carmine, aquatics membership revenue hit $181,179 in May, more than $11,000 above the budgeted $170,084. In Mayof 2015, Aquatics membership revenue was $168,464. The only other amenity to have a year-over-year increase in revenue in May, the first month of the new fiscal year, was pickleball. In May of last year, pickleball had $9,495 in membership revenue. This year it had grown to $10,460. That was off the budgeted $10,550 by a hair. Other major amenities are all lagging behind last year’s membership numbers for May and also are behind budget for the year. May is the month when most amenity membership revenue for the fiscal year is booked, with the exception of golf operations, which prorates membership revenue monthly throughout the year as a matter of policy. While memberships in aquatics and racquet sports can be purchased anytime during the year, as a practical matter most members renew close to the beginning of the fiscal year. Aquatics memberships that are renewed in April are booked in May to more accurately cover the fiscal year covered by the membership.

fund may be substantially overfunded by owners of bulkheaded property in Ocean Pines. The roads reserve, reflecting $300,000 in funding from casino impact funds, grew from $251,307 at the end of April to $554,428 at the end of May. The $300,000 contribution is a $50,000 increase over last year. The roads reserve will be used to pay for road resurfacing this year. Finally, the operating recovery reserve, originally created to offset operational deficits from years ago – the OPA has recorded operating surpluses in more recent years – continues to grow apace. The original excuse for creating this reserve, concerns about certain liabilities that might require payment, appears to be no longer relevant. Some directors have questioned

42 Ocean Pines PROGRESS

OPA FINANCES

July 2016

OPA in the red in first month of new fiscal year Aquatics off to solid start, not so much for Yacht Club and golf By TOM STAUSS Publisher he Ocean Pines Association began the new fiscal year in May with less than stellar financial performance, losing $61,495 on net revenues of $5.023 million against a budget of $5.085 million. Aquatics was the exception to the rule, generating a $126,496 operating surplus against the budgeted $105.913. The positive variance to budget was $20,583. Membership revenue did particularly well. Lessons also have gotten off to an excellent start on the year. The Yacht Club was the biggest loser of the month, generating $17,876 in red ink and a negative variance to budget of $64,978. OPA General Manager Bob Thompson, in comments to the Board of Directors at its June 25 regular monthly meeting, attributed the loss and subpar performance to budget on the late arrival of Memorial Day weekend this year and poor weather throughout during much of May. He blamed the weather for under-performance at the Ocean Pines golf course, which did record an operating surplus for the month of $20,424. Still, golf had been budgeted to earn $47,667 for the month. The negative variance to budget was $27,243. The racquet sports amenities were all in the black operationally for the month but all missed their budget targets. The Beach Club food and beverage

Net operating results by department for May, the first month of the 2016-17 fiscal year operation, a perennial financial winner for the OPA, lost $5,222 for the month and missed its budget by $3,086. Full months of operation in June, July and August will reverse that. The other perennial cash cows for the OPA, marina operations and Beach Club parking, performed at or better than budget. Beach Club parking recorded $250,733 in net revenue for the month, an even $75 more than budget. The marinas were $166,257 in the black, with a $3,884 positive variance to budget.

Amenity

May 2016 actual

May budget May 2015

Tennis $23,411 $27,612 $27,612 Platform $10,360 $11,560 $11,560 Pickleball $10,460 $10,550 $9,450 Aquatics $181,179 $170,084 $168,464 Golf $11,752 $15,681 $12,530 Amenity revenues in May 2016 compared to those in May of last year.

Amenity revenues From Page 40 Tennis membership revenue dropped from $27,612 in May of last year to $23,411. It was budgeted to be the same. Platform tennis membership revenue dropped from $11,560 in May of last year to $10,360 this year. Golf recorded $12,530 in membership revenue in May of last year but has dropped modestly to $11,752 in revenue this May. It was budgeted to bring in $15,681 in new membership revenue during the first month of the fiscal year.

The drop-off provides some proof that Landscapes Unlimited, the golf course management company, so far has not made good on its pledged effort to boost membership in that amenity, The OPA prepares membership data in a monthly membership report that is distributed to OPA board members and OPA members who ask for it. The June 30 membership is usually indicative of the year’s totals, with the exception of Aquatics, which experiences an uptick in membership revenue at the end of the summer from seasonal members who want to upgrade to a yearround membership.

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WORCESTER COUNTY

July 2016Ocean Pines PROGRESS

County retains current tax rate in $188.8 million FY17 budget By ROTA L. KNOTT Contributing Writer orcester County will retain the current property tax rate of 83.5 cents as part of its $188.5 million budget for fiscal year 2016-17. The Worcester County Commissioners on June 7 approved an operating budget of $188.8 million in appropriations for the coming fiscal year. This reflects an increase of $6,422,546 or 3.5 percent more than the FY16 budget, while reducing the requested expenditures of $193.9 million by $5 million. The county’s approved FY17 budget maintains tax rates at their current levels of 83.5 cents per $100 of assessed value for real property taxes and 1.75 percent for the county’s local income tax rate. Based on maintaining the real property tax rate, the county’s net property tax revenue is expected to increase by $2.74 million. That means property owners in Ocean Pines, to the extent that their assessed valuation has increased as a result of the three-year reassessment formula, will be paying slightly more in property taxes when their bills arrive in the mail shortly. The Homestead Credit cap remains unchanged at 3 percent and is estimated to be $1.24 million for the county’s qualified principal resident homeowners effective July 1, 2016. The local income tax revenues are anticipated to increase by $3.4 million over the current year based on actual receipts and increased estimates for a full year of local income tax revenue. Other local taxes increased by $287,500 and includes an increase of $250,000 in transfer taxes and an increase in room tax of $97,500 based on current year estimates. State shared revenues increased $22,061 mainly due to a slight increase in highway user revenues. Federal grant revenue decreased by $30,800, which includes a decrease in funding of $31,990 for the emergency shelter grant. State grants increased by $105,128 mainly due to waterway improvement grant funds for Shell Mill and Public Landing boat ramps. Revenue from licenses and permits increased $2,250. Changes include increased estimates for liquor licenses of $25,000 which reflect the amended fees enacted by the State. Also included are decreases to the bi-annual occupational licenses of $28,000. Charges for services decreased by $50,918 mainly due to reductions in community service fees of $23,000 and first offender program fees of $65,000 both due to the State legalization of medical marijuana. Interest on investments decreased by $50,000 due to lower outstanding note balances and rates of return below 1 percent. The county’s largest expenditure category is for the school system. The county allocation for the Board of Education’s operating budget is $81.65 million, an increase of $2.47 million over

the current year. School construction debt is also paid by the county on behalf of the Board of Education. It is not reflected in the Board’s budget; however, it is included in the county’s operating budget. The board’s approved operating budget of $81.65 million plus debt service of $10.76 million totals $92.41 million or 49 percent of the county’s total estimated revenue. The salary package for the Board of Education reflects a payroll increase of 2.3 percent, which includes a step, longevity step for those eligible and 1 percent for those beyond steps. Starting teacher pay will increase 2.2 percent from $42,433 to $43,384. Fixed Charges increased $2,847,011 over the current year budget and include $2.11 million for the Board of Education’s local share of teacher pensions now included in the MOE (maintenance of effort) calculation and $735,690 for health insurance and social security. Fiscal 2017 required maintenance of effort level funding required for the school system is $79.48 million. MOE uses the per-student funding of the current year to calculate minimal local funding levels for the next fiscal year. The required 1 percent increase in FY17 equates to an additional funding estimate of $761,792. The total FY2017 Worcester County Education funding per student based on the estimated student population of 6,660 equates to $16,843 per student, an increase of $360 per student over the current budget. The school system’s bus contracts account increase over FY16 is $40,132 and

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reflects a 1 percent hike to bus contractor’s hourly rate and mileage rate effective July 1, 2016. An additional $56,064 is included for contractors purchasing seven new buses. Many county employees are slated to get a raise in the next fiscal year. Salary accounts increased for eligible employees with a step increment of 2.5 percent in July 2016 and a mid-year step increment of 2.5 percent in January 2017. Also included is a longevity bonus for eligible employees with at least 20-years of county service. County employees have received one step increment over the past seven fiscal years. Major approved county general fund expenditures include an increase to taxes shared with the local jurisdictions by $343,500. The county is increasing its grant funding to the towns and the Ocean Pines Association by $97,000. However, it is decreasing by $37,000 for pass-through fire grants to municipalities and Ocean Pines Association based on actual credit runs. Funding for the Sheriff ’s Department increased $477,787 for raises, three new deputies, new computers, vehicles and equipment; for Emergency Services increased $202,395 for salaries and includes a new Electronic Services Technician position to assist with mobile and desktop radio installations and support, radio maintenance contracts and supplies and software maintenance agreements, and a van. At the jail funding increased by $465,259 in salaries, inmate medical coverage, a new transportation vehicle, replacement of the camera sys-

tem and replacement equipment for the Jail’s sprinkler system. Fire Company grants increased by $100,000 due to an increased base grant of $235,000 for each volunteer fire company, an additional $10,000 per fire company, and ambulance grants increased $64,828 based on the funding formulas and additional personnel staffing. Funding for the Elections Office increased $129,858 mainly due to the addition of a new statewide voting system, for Wor-Wic Community College increased $143,719, and for the Recreation Department by $20,315 for salaries and programs. The county’s spending for projects at the boat landings increased by $80,000 to cover Public Landing boat ramp improvements and $50,000 for Shell Mill parking lot resurfacing. Both projects will be reimbursed by Maryland Department of Natural Resources at 100 percent to the county. Overall support for the public works department’s maintenance and roads divisions decreased in the county’s budget. The county’s cost for insurance and benefits increased by $1.95 million, with $398,529 based on an estimated increase of 4.6% percent for health benefits, $1 million for other post-employment benefits, $272,830 for retirement contributions due to increased State rates, $158,598 for Workers Compensation insurance and $26,714 in property and liability insurance due to a premium increase. Expenditures for debt service increased $221,013 due to the 2015 bond for county projects.

Absolute Investigative, Fingerprinting and Security services opened its third office June 22 at 10540 Racetrack Road near Ocean Pines. The firm operates other offices in Towson and Bel Air, Md. Absolute Investigative services include live scan fingerprinting, security and private investigation. More information about Absolute’s services can be had by calling their Berlin offices on 410-973-2482. The ribbon cutting was sponsored jointly by the Ocean City, Berlin, and Ocean Pines Chambers of Commerce. Shown from left, in front, Teresa Reilly, Barbara Przybylski, son Chase, Reggie Przybylski, and Victor Aulestia.

Ocean Pines PROGRESS July 2016

Grassroots effort

Phyllis Mitchell and Andrea Hastings, of Mitchell & Hastings Financial Services in West Ocean City, recently helped lead a grassroots effort on Capitol Hill with the goal of preserving Americans’ access to affordable, objective financial advice and protecting investors. They met with members of Congress and their staffs as part of the Financial Services Institute (FSI) team on June 15 about the Senior$afe Act, which will help protect seniors from financial abuse and preserve the independent contractor status of independent financial advisors; and the Protecting Workplace Advancement and Opportunity Act, which will help small businesses to continue to thrive and preserve employee advancement opportunities.

BUSINESS BRIEFS Chick-fil-A bringing food to Mumford’s Landing pool

Bob Thompson’s proposed food truck for the Yacht Club and the Mumford’s Landing (and other venues) won’t be happening this summer, but that doesn’t mean the popular family-oriented Mumford’s Landing amenity will be without food service. West Ocean City’s Chick-fil-A restaurant will be filling lunch orders of chicken nuggets and chicken sandwiches every Friday and Saturday this summer, at a cost of $4.50 plus tax. Orders must be made at the pool before 11:15 a.m. for noon delivery and before 12:15 p.m. for 1 p.m. delivery by the restaurant Drinks are available separately at the pool. The delivery service began the Fourth

of July weekend, and was scheduled to continue every Friday and Saturday throughout the summer. Chick-fil-A is known for not being open on Sundays. The Ocean Pines Aquatics Department will share in the proceeds from the delivery service.

Talbott top agent for PenFed Realty

The Ocean Pines Office of Berkshire Hathaway HomeServices PenFed Realty recently named its top agents for the month of June. John Talbott led with the highest volume of new contracts and new listings. Tops in settlements was the Sharyn O’Hare team. Branch manager Sharon Curtiss said he branch is beginning to see properties sold and listed in the same month, an

indicator of a turn-around in the market.

Copy Central robbed of charity proceeds

Copy Central, a business supply and services company located on Cathell Road in the Ocean Pines business district, across from Pines Plaza, was recently broken into and robbed. Among items stolen was cash donated to the Gina’s Warriors Comfort, named for the Gina Maria Barnes, daughter of Copy Central’s owner, who fought a battle against colon cancer. Marty Clarke, a long-time customer of Copy Central, is urging others to hurry into the store to donate to restore funds lost in the theft.

thru Oct. 21

10-21-16

BUSINESS/COVER STORY ‘Secret’ memo From Page 1 the draft reserve study submitted to the OPA some months ago. Stevens told the Progress that he thought the concept was inserted into the reserve study by Gomsak, the former OPA board member currently serving as OPA assistant treasurer. He was appointed to that role last August on the votes of the current board majority bloc of Pat Renaud, Terry, Cherl Jacobs and Bill Cordwell. He had a year’s hiatus from the behind-the-scenes role of assistant treasurer the previous year, when Stevens was president with a tenuous majority bloc of his own, including at the time Renaud. Stevens is on record as objecting to the annual component cost methodology as a way of determining an acceptable level of reserve fund financing, contending that it could lead to the board substantially overfunding reserves, even more so if the percentage of the annual component cost is set too high. Stevens and his board allies tend to favor actual cash flow over an extended period of years to determine proper reserve levels. Using actual capital expenditures over time as a benchmark is a better way of funding reserves, they say, because it avoids collecting too much revenue in advance that in turn can be squandered on projects that are too expensive and unneeded. As it turns out, a 30 percent funding level of a $14 million annual component cost would work out to a replacement reserve of about $4 million, right where the replacement reserve balance stood on April 30. But Stevens is not prepared to accept any particular percentage as a reserve target or even the annual component cost as a benchmark that the OPA should adopt. He recently skewered Thompson’s memo and recommendations in an email to his board colleagues. He referenced a meeting between the board and DMA, the reserve study contractor, and two major actions he said “was agreed to” by everyone in attendance. “The first was to update the (reserve study) with current budget numbers. This was the task of the GM/Controller. The second was to initiate analysis of the study findings with respect to OPA capital requirements into the future. “The GM’s report acknowledges that the report update has not been done, but does not say why,” Stevens said. Stevens went on to say that the need for further analysis stemmed from “from the recognition that the component depreciation model used in the study is a helpful, but obviously insufficient means of determining our required reserve level. For example, in an environment that is devoid of planned maintenance, this method will inevitably lead to far higher reserve level targets than are actually needed.” He cited Country Club components that reached their end of life over 20 years ago, “but are still functioning. And there are others, such as the upstairs kitchen equipment, whose need is now questionable. Exactly how do we set a target funding percentage when we have no idea whether or

COVER STORY ‘Secret’ memo From Page 44 not the 100 percent (annual component cost) target is valid?” Stevens argued that “fifty percent of a bad number is still a bad number.” He also criticized Thompson’s recommendation to set a target date of Dec. 31 of this year as a goal for the board to approve a capital improvement plan for the OPA. “Was it not just last September when President Renaud, in a demonstration of his newfound power, assigned that task to the GM through an announcement (in a local newspaper), as opposed to an actual Board vote?” Stevens said. Actually Thompson did submit a draft CIP to the board this past November, in a format that Stevens didn’t like and without the supporting data that, in his view, would have made it a good starting point for board action. According to Stevens, it fell woefully short on all fronts, hardly moving the ball at all in the development of a usable CIP. “At the last meeting, DMA suggested the analysis (to help with the completion of a CPI) might be divided into logical areas and assigned to working groups. That is about where Jerry Aveta and I were a year ago,” Stevens said, referencing a process that he and Aveta had begun, with little tangible progress, in the year Stevens served as president. “Our focus was on identifying what information was available (studies, analyses) and what more information was needed. The Reserve Study was one obvious missing link (since one hadn’t been done in ten years), but it certainly isn’t the only one. “The goal was to identify specific hard requirements for the facilities and infrastructure in each area and separate them from a ‘wish list’ until costs of both were better known,” he said. Stevens said that creating more space for our police department is likely a hard requirement, while “building a new public safety building out on Route 589 is not. When do we get to see what the alternatives are and what they cost?” The public safety building is a Thompson proposal that has been vetted at all by the board. Nor does it appear in the draft CIP he presented to the board this past November. Stevens said the board could set a Dec. 31 deadline as recommended by Thompson to complete a CIP. “But, who is going to define what that CIP is and who will develop it?” Stevens asked his colleagues. Stevens called Thompson’s memo and recommendations “no more than a rehash of the un-updated DMA draft. It furthers the notion that we should collect more money for reserves without having any good idea of exactly why we need them. “It shoves the idea of a proactive maintenance plan deep back into the corner where it has always been. I would say that we are no further along than we were in April, but it could get worse if this concept of blind funding

July 2016 Ocean Pines PROGRESS takes root.” Terry declined comment on Thompson’s memo and recommendations other than to say that he was in the process of trying to arrange board work sessions when they could be discussed at length. He declined to release a copy of the memo to the Progress, saying it was up to Thompson whether to do so. Thompson said he needed to check with Jacobs, the OPA vice-president and a lawyer, on whether to release his memo and recommendations. While he seemed willing to do so,

in the interests of promoting more accurate and balanced reporting of his ideas, he subsequently said he had been advised that his recommendations are contained in a “working document” that is integral to the process of updating a reserve study and capital improvement plan. Thompson said that “working documents” can be withheld from members of the OPA who request them. The Progress also reached out through email to Gomsak, Jacobs and Pat Supik, chairman of the OPA’s Bud-

get and Finance advisory Committee, for comments on the Thompson reserve recommendations. None responded. Supik is running for the board this summer. She has previously said that OPA reserves are underfunded. An accountant by profession, her candidacy has been supported by Terry and Gomsak. Thompson has sung her praises as chairman of the committee. commending her for the smooth interactions between the committee and OPA staff in the two years she’s chaired it.

Stop taxing ocean pineS After investing $5,000,000 in a new Yacht Club that is poorly designed and poorly managed, the club lost $181,872 last year. The old Yacht Club lost $11,396 in 2010. The Country Club is allowed to deteriorate and is suffering from deferred maintenance. Discussions are taking place to replace it with a new facility that will compete with the new Yacht Club. Poor winter maintenance cracked the Yacht Club pool during Sandy. The new Yacht Club pool cost $800,000. Discussions are now taking place to build a new larger enclosed pool costing at least $3,000,000. Aquatics lost $166,917 according to the last audit report. Total racquet sports memberships have declined 23% since 2011. The present board has considered a $750,000 plan to build additional racquet courts. Golf course repair and replacement has totaled over $1,000,000 in the last five years. In that same period, golf memberships have slipped below 100 and operations lost $116,967 last year. There are discussions taking place to build a replacement on Route 589 for the present administration/police building and South fire station on vacant OPA land valued at $4,000,000. Meanwhile, distressed and abandoned properties remain untouched for years depressing values in entire neighborhoods. Management is not enforcing OPA environmental rules while allowing unpaid assessments to climb well over $750,000. THIS IS THE STATUS QUO • THE STATUS QUO MUST GO Pat Supik, the chair of the Budget and Finance Committee said in the candidates’ forum that OPA’s “three-year bottom line is positive.” Audited statements show a deficit for that period of $132,533. Supik wants a promotion to a seat on the board. Supik is the status quo. At the same forum, George Simon said he is a friend of the General Manager. Simon represents the status quo. Authority: STOP (Stop Taxing Ocean Pines)

Ocean Pines PROGRESS July 2016

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CAPTAIN’S COVE

July 2016 Ocean Pines PROGRESS

County treasurer still refusing to cash previous property tax payments, Hearn says By TOM STAUSS Publisher he Captain’s Cove property owners association recently emerged victorious in one phase of its ongoing battle with Accomack County over the assessed value of property in the community, which in turns affects the amount of property taxes owed by the POA to the county. To the extent it sets a precedent for privately owned property in the Cove, particularly unimproved lots, reductions in property assessments of Cove-owned lots approved by the county’s Board of Equalization in a meeting in April could be used by individual property owners to revised their valuations in the future. While County Dana Bundick continues to decline to cash checks from the Cove for property taxes levied in previous years, including checks in which the Cove POA agreed to pay taxes on values which it previously had disputed but no longer does, future levies on property owned by the OPA should reflect substantially lower values established by the equalization board. “It was a complete win,” Cove president Tim Hearn said during a June 10 meeting of the Board of Directors. He commended communications director Justin Wilder for his efforts to coordinate appeals for more than 400 Cove-owned lots, many of which were reduced to $200 in assessed valuation by the equalization board. Notices for the biannual reassessments of property in the county were sent out early this year, with property owners having until midMarch to file appeals if they disagreed with the county’s determination of value. The Cove POA decided to appeal the values of most of its inventory, which includes some lot lots that never will be buildable and some that currently aren’t but could once roads and utilities are available. Hearn told the Progress in a July 6 interview that as a result of the successful appeals, which reduced most of the assessed valuations by 70 to 80 percent, the Cove’s property tax bill should be reduced this year down to about $5,000 from $170,000 next year. The Cove president said he didn’t want to hazard a guess about whether Bundick would decide to deposit the $5000 check for this year’s property taxes. He said the Cove no longer is trying to engage with the county treasurer in an effort to persuade to cash the checks from previous years. “Even our attorneys failed to get any kind of response from her, so we’ve told

them not to spend any more time on this,” Hearn told the Progress. Why a county that apparently needs the money to pay for basic services would refuse to cash checks from the Cove remains a mystery, Hearn said. 2016-17 Cove budget --- While the process seems almost anti-climactic because the Cove board has already voted not to increase the $1200 annual assessment, work continues on developing a Cove POA budget for the fiscal year that

begins Oct. 1. According to a draft budget posted on the Cove Web site as part of the agenda for the June 10 board meeting, the latest revenue projection for POA next year is $5,296,428, with operational expenses of $5,202,414 and net income of $94,014. Net cash flow before capital expenditures is $477,114; after capital expenditures the net cash flow is a negative $252,491. The numbers are subject to change

before the budget is finally approved, but Hearn said that the budget process is well under way and substantial changes are unlikely. New Billy Casper Golf management – Billy Casper Golf, the company that manages community amenities for the Cove POA, has appointed new executive staff in the Cove to fill the void created by the resignation and departure from the Cove of Tim Johnson, who had headed up the BCG operation since its arrival several years ago. Johnson, who also served as head golf pro in addition to general manager, has been replaced by two individuals with a food and beverage background. Phillip Evans is the new general manager and Wendell Passoa is head of events and banquets. The golf pro shop is now

Captain’s Cove POA cleans up in equalization board appeals

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CAPTAIN’S COVE

Ocean Pines PROGRESS July 2016

Equalization board From Page 47 managed by an assistant pro who arrived shortly after Johnson left this past winter. Reserve study – The Cove POA last had a reserve study done back in 2011 by DLM Architects of Virginia Beach. The study assessed the condition of POA-owned assets, their remaining useful life, and the level of reserves needed to replace them when they wear out. Reserve studies are typical for POAs as a way of avoiding special assessments for unanticipated needs.

During the June 10 meeting, the Cove board unanimously hired DLM for another reserve study, at a cost not to exceed $13,845, with some discounts available. Board election deadline – Property owners interested in filing for a position on the Cove board have until Aug. 1 to do so. Last year’s ballot was well represented with year-round homeowners in the Cove, including former Cove General Manager Lance Stitcher, most of whom fell short in their efforts. Developer-controlled ballots were cast for candidates not considered

hostile to Hearn and his business allies on the board. Whether this year will be much different seems unlikely, unless board member and Cove treasurer Michael Glick and his colleagues decide not to cast ballots for their preferred candidates. Hearn has said previously that he fears that should the developers choose not to exercise their right to cast ballots and elect directors that share their objectives, board policies that have stabilized finances in the Cove will revert to a time when reserves will be tapped for operating expenses, adversely affecting the Cove’s balance sheet and ability to borrow. He also said the financing mechanism in place designed to

complete road construction throughout the Cove will end if control of the board reverts to year-round homeowners. Another Internet option – Proposals for improved Internet service in the Cove come and go as vendors try to gain a foothold. The latest company interested in providing high speed service to the Cove is called Neubeam, which recently sent out a survey to Cove property owners in an attempt to gauge interest for their version of high speed Internet. Establishing a need is critical in a company’s effort to receive a Department of Agriculture grant to make the service possible.

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LIFESTYLES

July 2016

Thursday, July 14 Star Charities Annual Western Night, 4 p.m., Racetrack Clubhouse at The Casino at Ocean Downs. $26 per person. To benefit 4 Steps Therapeutic Riding Program. Emcee Larry Walton, live harness and simulcasting races, door prizes, 50/50 raffle and pictures with the winning horse of the PDR race. Seating limited. Reservations, Barbara Mazzei, 908-581-5553. Thursday, July 21 Pine’eer Craft Club, monthly meeting, 9:45 a.m., refreshments, 10 a.m., business meeting, Ocean Pines Community Center. Craft Project: Flip flop wreath. Friday, July 22, Saturday, July 23 & Monday, July 25 Annual book sale, Friends of the Ocean Pines Library, Ocean Pines library branch, 6-8 p.m. Friday, 9 a.m. to 4 p.m. Saturday, and 10 a.m. to 4 p.m. Monday. Open to club members only on Friday, memberships available at the door for $5 (individual) and $10 (family). Open to public Saturday and Monday; half-off all items on Monday. Fiction, biographies, children’s literature, memoirs, travel books, DVDs and CDs for sale. All proceeds to support the Ocean Pines Library. Saturday, July 23 20th Annual Art Hansen Memorial Youth Fishing Contest, Ocean Pines Anglers Club, the South Gate Pond [near Sports Core Pool], Ocean Pines. Registration 8:30 a.m. to 9:30 a.m., contest 9-10 a.m. Youths should bring their own fishing rod and reel. Bait provided. 3 age groups; 4-7, 8-11, 12-16. Trophy for the biggest fish in each age group. Awards for three largest fish and for the most fish. Children younger than age 4

HAPPENINGS can fish but will not be eligible for a trophy. All participants will receive a prize compliments of the Ocean City/Berlin Optimist Club and the Maryland Saltwater Sportfishing Association. Walt Boge, 410-208-2855. Thursday, July 28 Monthly meeting, Board of Directors, Ocean Pines Association, Ocean Pines Community Center, 9 a.m. Agenda, board packet posted a day or so before meeting on OPA Web site, oceanpines.org. Friday, Aug. 5 Fifth Annual Mary Mac Foundation Memorial Golf Tournament, 9 a.m. shotgun start, Ocean Pines golf course, $110 per golfer / $400 per foursome / $500 per foursome and hole sponsorship / $100 tee sign sponsorship. To benefit non-profit organizations. Includes continental breakfast and lunch, awards and silent auction at the Ocean Pines Yacht Club. www.MaryMac.org. Saturday, Aug. 6 Ocean Pines Chamber of Commerce 9th Annual Flounder Tournament, Pines Point Marina, weighin noon to 4 p.m., $35 per person / $30 two or more. Cash prizes plus calcutta. $500 first prize, $300 second prize, $100 third prize. Free t-shirt to the first 100 entries. Registrations by Friday, Aug. 5 at 3 p.m. Register online at OceanPinesChamber.org. Thursday, Aug. 11 Deadline, ballot submissions, Ocean Pines Association, annual election, Board of Directors, 5 p.m., by mail or hand-delivered, OPA Administration building, White Horse Park.

Friday, Aug. 12 Counting of ballots, OPA Board of Directors election, Ocean Pines Elections Committee, 9 a.m., board room, administration building. Saturday, Aug. 13 Annual meeting, Ocean Pines Association, Ocean Pines Community Center, 10 a.m. Announcement of winners in this summer’s OPA Board of Directors election. Friday, Aug. 26 Kiwanis Club’s annual duck race, Frontier Town, Route 611. Tickets on sale, $5 per duck entry or three entries for $10. Winners do not have to be present to win. Proceeds benefit the club’s youth programs supporting the community. Tickets, 301-788-1517, or from a member of the Kiwanis Club of Greater Ocean Pines- Ocean City. Sunday, Aug. 28 Ocean Pines Chamber of Commerce Classic Car Show and Parade, parade begins at White Horse Park, 10 a.m., car show Veterans Memorial Park, 11 a.m. – 2 p.m. Free. Vehicles of all makes and models. $12 per car pre-registration or $15 day of the event. Vendors, food, music and trophies. Free dash plaque to first 50 entries. 410641-5306 or OceanPinesChamber.org. Ongoing Ask a master gardener, clinic, every Tuesday, May through September, 1-4 p.m., Ocean Pines library. Offered by the University of Maryland Cooperative Extension Service. Master gardeners available to help with gardening questions. Please put your plant damage samples in a plastic bag and label the

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bag with your name and phone number. If your questions cannot be answered at the time of submission, it will be researched and someone will get back to you. Free platform tennis clinics, Saturdays at noon, Manklin Meadows tennis complex. Bring sneakers, the rest is provided. Annual memberships start at $150. Line dance classes, Monday and Wednesday, 9:30 -10:30 a.m., Ocean Pines Community Center. Beginners welcome. Betty Daugherty, 410-7261818, or bettydau@aol.com Pinesteppers Square Dance Club, Wednesdays, 7-9 p.m., Ocean Pines Community Center with caller Dennis O’Neal. Visitors welcome. The group also hosts a dance the fourth Saturday of the month from 7-9:30 p.m., Ocean Pines Community Center. Guest callers lead the dancers with music and choreography. Mainstream/Plus square dancers welcome to join in. President Arlene Hager, 302-436-4033. Pine Tappers free adult tap dance classes, Tuesdays, 2-3:30 p.m., Ocean Pines Community Center. Exercise and have fun with choreographed tap dancing routines. From 2-2:30 p.m., brush up on basic techniques and a review of the routines, then join the regular class from 2:30-3:30 p.m. Every week or drop-in as convenient. Lori at 410-251-2162 or tntandcompany@gmail. com. Ocean Pines Ping Pong Club, Ocean Pines Community Center, Monday, Wednesday and Friday, noon to 2 p.m. All levels welcome. Eric Bowers, 410-208-1794. Suicide Grievers Support Group, 3rd Wednesday every month, 6 p.m., Worcester County Health Department, Healthway Drive, Berlin, adjacent to Atlantic General Hospital. Open to anyone who has lost a friend or loved one to suicide. Free of charge. Quiet listening, caring people, no judgment. 410-629-0164. The Kiwanis Club of Greater Ocean Pines – Ocean City every Wednesday at 7:45 a.m., Ocean Pines Community Center. Sanctioned duplicate bridge games, Ocean Pines Community Center, Sundays 1 p.m., Mondays noon, Tuesdays 10 a.m. Partners guaranteed. $5, special games $6. Third Sunday of every month is Swiss teams (no partner guaranteed for teams). Felicia Daly, 410208-1272; Pat Kanz, 410-641-8071 The U.S. Coast Guard Auxiliary, Flotilla 12-05, meets the first Monday of each month at 7:30 p.m. in the U.S.C.G. Station, Ocean City. Visitors and new members are welcome. Dennis Kalinowski, 410-208-4147. Web site http://a0541205.uscgaux.info. Kabbalah class with Saturday services, coffee, juice and bagels, 9:30 a.m., Saturdays, Temple Bat Yam, 410641-4311. Life after loss support group, second and fourth Tuesday of each month at the Community Church at Ocean Pines, 11227 Race Track Road, Berlin, 11 a.m.

OPINION

July 2016 Ocean Pines PROGRESS

COMMENTARY

Can OPA voters end factional governance? Thompson once again is an election issue, but his tenure could be prolonged by too many credible candidates who want a management change competing for a seat on the Ocean Pines Association’s Board of Directors

‘Mad as hell’ about Supik

I just finished watching the video of the candidate debate, and I am mad as hell! I cannot allow some of this propaganda to go unchallenged. In Ocean Pines some people believe, and rightfully so, that if you repeat an untrue statement long enough it might eventually be believed. A perfect example was board candidate, Ms. Pat Supik, who is the chairperson of our Budget and Finance Advisory Committee. When answering the question “Where do you stand on keeping the Yacht Club open in the winter?” she answered “I do understand the financials of the Yacht Club and factually it is doing very well”. God help us! According to the monthly Controller’s Reports our brand new $5 million Yacht Club has lost $311,219 in the last eight month’s alone. That does not include depreciation. Factually

Because Renaud (elected two summers ago) was voted on a platform of “reining in the general manager,” he originally seemed destined to be a part of the Stevens-Collins faction. Because of the persuasiveness of Terry and Jacobs, Renaud essentially flipped from one faction to the other last year (if not earlier), becoming OPA president in the bargain. Terry and Jacobs (the latter Terry’s and Renaud’s preferred choice for OPA president next year) essentially control the association to the extent they can keep the team together. That’s not always possible. For example, Jacobs recently missed a meeting because of a family emergency. Her absence resulted in a failed motion to approve Thompson’s food truck proposal in time for implementation this summer. It could have been resurrected at a subsequent special meeting, but it was too late; Thompson’s revenue and profit projections were effectively gutted by the delay and he wisely abandoned the proposal, at least for this summer.

LETTERS it is doing very well? Perhaps when compared to the maiden voyage of the Titanic? In her closing statement, Ms. Supik stated “financially we are on good ground operationally. If you add up the last three years the bottom line is positive. ” She goes on to say “the numbers speak for themselves,” which may be the only factual thing she said all night. Sounded like a cheerleader following a script written by Thompson, Gomsak and Terry. According to the audited statements the sum bottom line performance of Ocean Pines Association, Inc. over the last three years was a negative $132,533. This does not even take into account that in 2014 the OPA moved $447,409 out of reserves and into operations to offset deficits.

If Ms. Supik can’t understand the audited statements for our organization, she should not be the chairperson of the Budget and Finance Advisory Committee much less an OPA director. Martin Clarke Ocean Pines

Vacuous utterances by OPA treasurer

How sad to read in the May edition of the Ocean Pines Progress that an OPA Director of six year’s experience, who has been its president and currently serves as its treasurer, said at a recent Board meeting: (a) The policy clearly states that all association amenities are available to the general public;” (b) “They have to be available to the general public because we cannot put a moat around the community;” (c) There are many programs and activities,

With three seats up for grabs in this summer’s voting, one faction or the other winning at least two seats probably seals Thompson’s fate, one way or the other.

Depending on the outcome of this summer’s election, the idea could resurface next winter or spring, as it’s still in the budget for the current fiscal year. This summer’s board election could reinforce the supremacy of the pro-Thompson faction or could produce a new majority that could vote to replace him. Terry and Cordwell will be retiring from the board this August, leaving Renaud and Jacobs as solidly in the Thompson camp. Herrick and Stevens have indicated that their patience with the Thompson administration is wearing thin, with Herrick recently indicating that Thompson is a major cause of divisiveness on the board and within the community. Collins is running for re-election, not necessarily a sure vote for removing the general manager but apparently leaning that way. Collins has not been pleased with Thompson’s handling of the Beach Club bathroom replacement project, contending that the GM has fallen behind a previously adopted timeline for contract approval. If there are three votes to go in a different management direction after the election, Collins seems a good bet to be the fourth. With three seats up for grabs in this summer’s voting, including Collins’, one faction or the other winning at least two seats probably seals Thompson’s fate, one way or the other. Of the 11 candidates running for the three vacancies, Slobodan Trendic and Steve Lind have said they favor taking the OPA in a new management direction sans Thompson. Trendic has made that clear in his campaign promotional material, as well as statements made on oceanpinesforum.com. After initially declining to say for certain whether he would move to remove Thompson, Lind told the

particularly those provided by the Recreation and Parks Department in Ocean Pines, that are only able to be offered because they are supported by people who do not live or own property in the community. The problem with such vacuous utterances is: (a) OPA’s governing documents clearly state that the use of its amenities and facilities like is the exclusive prerogative of Association members; (b) Moats went out of style at the end of the Middle Ages; the modern equivalent is called a membership card; (c) OPA’s Recreation and Parks Department lost over $600,000 last year, notwithstanding the “support” of people who do not live or own property in the community. Let’s hope the members elect three new Directors who have a better idea of what a homeowners association is all about. George Coleburn Ocean Pines

ike it or not, governance in Ocean Pines is riddled with factionalism. Property owners, like the directors themselves, tend to coalesce into like-minded groups, roughly divided into those who appreciate the job the general manager is doing and those who don’t. Into those who believe the position is over-compensated for the lower Eastern Shore and those who think the $165,000 salary plus incentives is about right. Factionalism is further evident by those who see the $5 million Yacht Club as a white elephant mistake and those who don’t. By those who tend to prefer rehabbing existing amenities and other capital assets over building new. By those who tend to think OPA’s overfunded replacement reserves constitute an invitation to spend unnecessarily and those who think they’re very much underfunded, ill-equipped to deal with Ocean Pines’ aging infrastructure. By those who favored replacing Billy Casper Golf as the golf course manager and those who didn’t. In recent months, divisions surfaced over Thompson’s proposed $50,000 food truck, with one faction contending it could be a profitable addition and others suggesting it would be a wasteful boondoggle. More recently, divisions have arisen over whether the annual vote count should be an open, transparent process or closed to the membership (for little more reason than to entice property owners into attending the annual meeting of the OPA, for the most part a snorefest, to hear election results). The waxing and waning of one faction or the other plays out in annual OPA elections. Last year, the pro-Thompson faction retained its precarious hold on the board after the ballots were counted, with director Tom Herrick soon joining the Stevens-Collins wing on most issues and Cheryl Jacobs becoming a reliable member of the Terry-Cordwell-Renaud wing.

OPINION

July 2016

Election Commentary From Page 51 forum that he would do so, garnering a lot of free media in the process. Four other candidates, including Collins, probably would join Stevens and Herrick in a vote to remove Thompson this August, or perhaps relatively soon after. The “leans against Thompson” group includes Tom Janasek, Doug Parks and, probably Brett Hill, the latter a generation removed from the typical 60ish-70ish retiree who serves as an OPA director. While all of these candidates have stopped short of an absolute commitment to vote remove Thompson if the opportunity presents itself, it probably wouldn’t take much for any of them to join with Herrick and Stevens. If last year’s vote to elect Jacobs satisfied an itch

among property owners to elect a woman to serve, perhaps this year’s vote will satisfy an impulse to elect a younger businessman to the board. Hill has already made an impression, using a few minutes in the public comments segment of the June board meeting to pick apart irregularities in bids for new equipment at Huntington Park. As a result of Hill’s critique, Thompson withdrew the bids and a request for board action, announcing that he and his staff would take another look at the Huntington Park bids. Thompson’s odds for staying on the job after August aren’t necessarily that long. There are six, more or less, credible candidates who have been critical of his management performance, and that means the anti-Thompson vote could in theory be split multiple ways, providing an opening for the pro-Thompson faction to elect one two, or even three candidates to its liking.

LETTERS

Gomsak counters Clarke statements

In a letter published in this edition of the Progress, Marty Clarke criticizes (“ridicules” might be a better word) Board Candidate Pat Supik, current Chair of OPA’s Budget & Finance Committee, for a couple of statements she made regarding Ocean Pines’ financial results, during the recent OPA Candidates’ Forum. Mr. Clarke asserts that Ms. Supik made “untrue” statements and suggested that the source of this “propaganda” was a “script” written by me, General Manager Bob Thompson and current

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Board Member and Treasurer Tom Terry. Ms. Supik’s statements and figures, unfortunately for Mr. Clarke, are true and supported by the facts, as set forth below. The first example offered by Mr. Clarke in his “mad as hell” letter relates to Ms. Supik’s response to a question regarding the Yacht Club. She is quoted as saying financially “it is doing very well.” Mr. Clarke reacts by stating: “God help us” and further states that it may be doing well “compared to the maiden voyage of the Titanic.”

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Two successes would mean the board stays more or less as it is, divided and occasionally rancorously so, with Thompson hanging on precariously. To deal with that possibility, as best they can, those supporting candidates most likely to join Stevens and Herrick on a wide array of issues, including Thompson’ status, have opted to oppose one candidate in particular, budget and finance committee chair Pat Supik, in her election bid. Also targeted for defeat is George Simon, said to be a friend of Thompson’s. STOP, an organization led by former OPA director Marty Clarke, has purchased an advertisement in this edition of the Progress recommending that OPA members not vote for Supik or Simon. Such an approach to electioneering isn’t unprecedented in Ocean Pines – sometimes it’s easier to oppose than to support – but here it seems to be dictated

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Here are the facts regarding the Yacht Club’s financial performance, which I believe Ms. Supik had in mind when responding. For the fiscal year ended April 30, 2016, the Yacht Club had an operating deficit of $76,219 (unaudited), or $9 per member. This compares with an average operating deficit over the previous three years of $189,752. So, FY 2016’s financial performance represented a 60 percent reduction in the average deficit over the three previous years ($181,874, $189,961 and $197,421). This looks positive to me. In his admonishment of Ms. Supik, Clarke states that the Yacht Club “lost $311,219 in the last eight months alone”. It’s interesting that he used a period of eight months and not the full fiscal year (many seasonal businesses lose money in the off season, due significantly to fixed costs, which are incurred whether open, or closed). Mr. Clarke’s eight month figures are correct, but not relevant to the statement made by Ms. Supik. Full year results, not pieces of a year, is the normal way financial performance is measured. Further, apparently in an effort to maximize the negative, Clarke’s eight months include seven months from FY 2016 and one month from FY 2017? Oh, and the figures he uses are “unaudited” (see later commentary)! Mr. Clarke’s second example of an “untrue statement’ and “propaganda” is from her closing statement, in which she stated, regarding Ocean Pines’ overall financial performance, that “…financially we are on good ground operationally. If you add up the last three years the bottom line is positive”. Mr. Clarke disputes the veracity of this statement and states that the bottom line “…. over the last three years was a negative -$132,533”, according to the audited statements. Clarke’s three years, however, are not the last three years of the Association’s financial results, which Supik used as the basis for her accurate and more relevant statement. By using FY 2013, 2014 and 2015, Clarke disregards the Association’s most recently completed fiscal year, which ended April 30, 2016, and had an

52 Ocean Pines PROGRESS

operating surplus of $231,820 (unaudited), but he includes FY 2013, which year had a deficit. Therefore, using a different three-year period and different numbers (apples and oranges), not the most recent three years, Clarke claims that Ms. Supik made an untrue statement. The fact is Ms. Supik stated that “using the last three years the bottom line is positive” and that is a true statement. The figures are a surplus of $231,820 (unaudited) in FY 2016; a deficit of $152,882 in FY 2015 and a surplus of $14,746 in FY 2014, excluding the positive transfer of $447,409 from the Operating Deficit Recovery Fund, as that was a transfer and had absolutely nothing to do with operations. If you add up these three years, you get a net operating surplus of $93,684, or an average of $31,228. Clarke can use any period of time he wishes to make whatever point he wishes, but that does not make Ms. Supik’s statement incorrect. Just for the record, historically in Ocean Pines the differences between the unaudited financial statements prepared by the OPA’s Finance Department, and the final “audited” numbers, which are not available until shortly before the August Annual Meeting, are not significant. In my opinion, Ms. Supik, at the Candidates’ Forum, was simply trying to reinforce what many in Ocean Pines, who are reasonable and not agenda-driven, believe and that is that the sky is not falling. When certain candidates and their supporters, some of whom have no hesitancy in twisting facts, and making outrageous accusations, are suggesting that Ocean Pines has enormous problems, there is reckless spending and very poor financial performance, it’s very difficult to get the factual and positive information to the membership. In conclusion, I believe the real reason for Marty Clarke’s being “mad as hell” is that Pat Supik is a real threat to the election of his favored candidates, which currently number four (Collins; Janasek; Parks and Trendic), based on the lawn signs on his property. Pete Gomsak Ocean Pines

OPINION

July 2016Ocean Pines PROGRESS

Election Commentary From Page 52 by the multitude of candidates. Supik is seen as a Thompson cheerleader, and someone in the mold of Pete Gomsak, a former board member and current assistant OPA treasurer very much aligned with the Terry-Jacobs faction. Both Gomsak and Supik are retired accountants, both are identified with the notion that OPA reserves are underfunded, and both are wedded to the idea that the OPA’s reserve levels should be tied to something called the annual component cost (ACC), a computational confection conceived and embraced by the accounting profession. Gomsak and Terry tried to persuade Supik to run for the board last year, failing to do so, but they succeeded this year. If anyone is the anointed candidate of this particular faction, it’s Supik in spades. Supik has said that, as chairman of the Budget and Finance Advisory Committee, she is used to navigating in very roiled waters, forging a consensus in a group with, at times, sharply conflicting views. Other candidates over the years have said that they, like Supik claims now, can end board factionalism and infighting. It continues, despite the best efforts of those who say they can end it. Factional infighting will probably continue regardless of who is elected this year. It goes with the territory. It becomes ugly when the infighting becomes personal, such as when one director says he’s going to throw a colleague through the wall for the temerity of seeing issues differently. Ocean Pines’ ACC has been estimated at roughly $14 million, which could mean that OPA reserves are underfunded by $10 million if 100 percent funding of the ACC is the goal. Actually, it doesn’t have to be; the accounting pro-

fession reportedly sets a range of 30 to 70 percent as within acceptable limits for ACC funding. The OPA currently funds its replacement reserve at the low end of the “acceptable” range. For what it’s worth, Thompson reportedly has recommended 50 percent funding of the ACC, to be achieved over ten years; the recommendation is contained in a document that the board majority won’t let him release to the OPA membership. A 50 percent funding level still would require a significant increase in the lot assessment, over a number of years, and talking about assessment increases is never popular, especially during election season. The rationale for keeping the document secret, according to Thompson, is that it is a working document involved in the updating and completion of the OPA’s ongoing reserve study. That’s absurd, because the document itself is complete and has been referenced in one or two board meetings. Property owners paid for that document, and it ought to be released immediately. Thompson seems willing to release it, but he’s being stymied by some of his board overseers, who in this instance prefer secrecy over disclosure and transparency. Perhaps they fear that the Thompson recommendation could become an election issue, adversely affecting certain candidates, particularly Supik, who has been open in her viewpoint that OPA reserves are underfunded. What they don’t seem to realize is that by keeping it secret, it could also have the effect of adversely affecting certain candidates, particularly Supik, even more so than if they had allowed Thompson to release his recommendations, and their rationales, to the OPA membership. Supik also has come under fire from former board member Clarke for her public statements to the effect that the OPA and the Ocean Pines Yacht Club is doing well financially.

Clarke points to three years of cumulative Yacht Club deficits. Clarke and Gomsak, elsewhere in this edition of the Progress, spar over which three years should be used for analytic purposes. Let’s look at the two years the new facility has been open. An OPA member could take a look at the April 30, 2016, (end-of-fiscal-year) Yacht Club profit-loss statement to conclude that the new Yacht Club has not performed well financially. The statement is posted on-line on the OPA Web site (under forms and documents, monthly financials). Operational statements exclude depreciation, which appear in departmental summaries contained in the annual audited financial statement released in early August. The unaudited numbers usually come close to the “official” ones available in August. The Yacht Club’s operational loss in 2015-16 was $76,219; a year earlier it was $181,875. Granted, the year-over-year improvement was significant, but a loss is a loss and a $76,000 loss (plus hefty funded depreciation on a $5 million building) this past year still requires a substantial subsidy through the annual lot assessment. Supik could have shed more light on the subject had she indulged in less cheerleading on what the most recentl numbers actually say. Supik also seems firmly in the camp of replacing (rather than repairing and renovating) existing amenities, with the Country Club an example of that. The current minority faction favors substantial renovation; it’s not certain where the majority stands. With Supik part of the majority, the board would gain a voice strongly biased in the direction of replacement. The candidates most likely to embrace Thompson’s continued tenure as general manager are Supik, Simon, Daly, Ray Unger, and probably Larry Perrone. Those who like the status quo are not without options. Perhaps too many, but that’s how it is this election season. – Tom Stauss

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54 Ocean Pines PROGRESS

OPINION

July 2016

Sadly, it depends on what the meaning of ‘meeting’ is … annual vote count occurs in a meeting under any reasonable application of the Black legal definition. To assert otherAn excursion through the curious cul-de-sacs An excursion through theby-ways curious and by-ways and cul-de-sacs wise is to provide prima facie evidence of Worcester County’s County’s most densely community. for why lawyers’ opinions on legal matof Worcester mostpopulated densely populated community. ters should not be considered disposiBy TOM STAUSS/ By TOM Publisher STAUSS/Publisher tive, especially since that for every lawyer who offers one opinion, a 100 more case in Oregon, which clearly repudiates doesn’t occur in a meeting, it doesn’t vio- come out of the woodwork with 100 duthe notion that a corporate director, who late the Maryland HOA act. eling viewpoints. isn’t under the control of a corporation, But Jacobs isn’t the only lawyer who Why, then, does OPA Resolution is “personnel” as the term is common- M-06 clearly reference a “closed session” makes the argument that the meeting ly understood in the corporate world. of the committee for the purposes of vote or session in which votes are counted Former OPA director Jeff Knepper, in counting? Is a closed session not a meet- isn’t a meeting. OPA legal counsel Joe a posting on the oceanpinesforum.com, ing by another name? Jacobs’s argument Moore, who has been dispensing wisdom suggested that Trendic “might be on to that the meeting in which vote counting on OPA legal affairs since 1983, more or something” with his conclusion that di- occurs isn’t a meeting would appear less said the same thing as Jacobs did in rectors (and certainly not candidates) unilaterally to invalidate a board reso- comments to the Progress after the June are not OPA employees. lution, along with an accepted legal defi- 26 OPA board meeting. Knowing full well that citing person- nition of the term “meeting.” “It’s not a meeting, it’s a vote count,” nel as the reason for going into closed Black’s on-line legal dictionary de- Moore said, echoing Jacobs, seemingly session doesn’t pass the laugh test, a fines a meeting as a “coming together oblivious to the obvious fact that vote board majority appears to trying on an- of persons; an assembly. Particularly, in counting occurs in a “coming together” other rationale, equally as (if not more) law, an assembling of a number of per- or “assembly” of individuals who intend risible. According to Director and OPA sons for the purpose of discussing and to discuss and act on the results of that Vice-President Cheryl Jacobs, a lawyer acting upon some matter or matters in vote count. who really should know better than to which they have a common interest.” Moore said the matter isn’t so much a go down this rabbit hole, the meeting Unless the Elections Committee in- legal matter as it is a policy matter that of the Elections Committee in which tends to take a vow of silence as they can be decided by the board of directors. ballots are counted “isn’t a meeting, count ballots and prepare a report of He didn’t say why it couldn’t be both. Init’s a counting of votes.” She went on to election results to be issued the follow- deed, it should be the policy of the OPA say that because the counting of votes ing day at the OPA annual meeting, the

LIFE IN THE LIFE INPINES THE PINES

ne hot issue that has emerged in this summer’s Ocean Pines election season is the case for openng up the vote count to all property owners who want to attend the meeting of the Elections Committee during which the ballots are tabulated by the Scantron machine. The closed meeting of the committee to count the ballots, and the delayed announcement of election results until the OPA annual meeting, is, by any reasonable reading of the Maryland Homeowner Act, a violation of said act. Board resolution M-06, which calls for a closed session of the committee to count ballots, conflicts with the HOA act, Section 11B-111 (4), which includes a number of exceptions to the presumption in favor of open meetings, including personnel matters. Last year, the committee voted to go into closed session to count ballots, citing personnel as the reason. This rationale is farcical, as directors are not HOA personnel by any reasonable understanding of the term, and certainly candidates are not before some of them are elected and certified as directors. Board candidate Slobodan Trendic recently uncovered a Maryland court decision, and another precedent from a

Steve LindLind Steve

Candidate, Ocean Ocean Pines Board Directors Candidate, PinesofBoard of Directors

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Retired NYC Police Officer: Retired NYC Police Officer: Street Street Smart Smart College Educated: Book Smart College Educated: Book Smart Business Owner: Business Business Owner: Business Smart Smart • Iabring a balance of education, formal education, business experience, • I bring balance of formal business experience, and life and life experience. experience. • I’ve been involved in Ocean Pines politics for 17 years, including serving on

• I’ve been in OceanCommittee. Pines politics for 17 years, including serving on theinvolved Clubs Advisory the Clubs Advisory Committee.

• I will put an end to frivolous spending and I will work to restore cost-

• I will put an end budget to frivolous spending and I will work to restore costeffective management. effective budget management.

• I will ensure that spending projects are prioritized according to cost and

need,that andspending will ensure priorityare is given to safety issuestosuch • I will ensure projects prioritized according cost as andbridge repair and/or need, and willreplacement. ensure priority is given to safety issues such as bridge repair and/or replacement.

• I will make positive ‘change’ happen for the good of the community and the association in the two previous elections the community • I will make positivemembers: ‘change’ happen for the good of the community and the voted for positive ‘change’, and we are still waiting association members: in the two previous elections the community voted

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OPINION

July 2016Ocean Pines PROGRESS

Rick Menard

Life in the Pines From Page 54 and its board to act in strict compliance with the HOA Act, in both letter and sprit, without resorting to laughably weak semantic arguments in support of opaque governance. Jacobs went further down the rabbit hole when she suggested that if M-06 was in violation of the Maryland HOA Act, it never would have been offered up for board review and approval by Jim Trummel, former member and chair of the OPA Bylaws and Resolutions Advisory Committee. She mentioned that Trummel is a lawyer, as if that necessarily gives him greater credibility on the issue than someone without a law degree. Actually, in Trummel’s case, it very well might, but as it turns out Trummel’s signature on M-06 doesn’t mean he agrees with everything in it, specifically as it relates to counting ballots in closed session. He told the Progress that he agrees with the current committee members, including its chairman, Doug Parks (a candidate for the OPA board this summer), that counting the ballots in closed session must be done in accordance with the Maryland HOA Act’s listed excep-

tions to open meetings. One of those codified exceptions is personnel matters, the reason the committee last year gave for closing the vote count. According to Trummel, that’s improper [i.e. against the law] because candidates for the OPA board are not personnel of the OPA. Obviously! He also said that M-06 as it stands now -- with its reference to a “closed session” of the Elections Committee to count ballots -- is in conflict with the Maryland HOA Act and should be revised accordingly. One quick and easy way to do it: Elimnate the language pertaining to a “closed session” of the committee, as Tom Herrick’s motion at the June board meeting called for. Jacobs probably should have checked with Trummel before using him in defense of her shaky analysis. Elections Committee chairman Bill Wentworth serves up a final pathetic excuse for continuing to count ballots in closed session, which at least had the virtue of not attempting to justify the violation through semantic contortions, as two of the lawyers did. He said those who advocate for an open vote count are questioning his integrity in conducting an accurate

count of ballots. Perhaps some are, but that was hardly the driving motivation in Herrick’s motion at the June 26 board meeting to delete the reference to “closed session” in M-06. Wentworth’s narcissism is mind-bogglin, as if a fully transparent vote count has anything to do with Wentworth’s tender and aggrieved feelings. If there must be a competition between the two, then the interests of an open vote count supersede any suffering endured by the committee chair from his critics. This isn’t about Wentworth. This is about transparency and delivering election results that all factions in Ocean Pines can accept in a season in which 12 (now 11) candidates are competing for three slots on the OPA board. During board discussion at the June 26 meeting, OPA director Tom Terry opined that making a change of this magnitude in the “heat” of an election season is misguided and inappropriate, but he failed to make a good case for why greater transparency is any less desirable or achievable during this “season” than in any other. To argue as Terry did in favor of a closed vote count creates the impression that he, and directors who agree with him, fear and loathe transparency, when probably, in most instances, they do not. Unfortunately, actions always speak loud-

er than words. Terry, perhaps sensing that he was taking a low road in the final months of his six years of board service, offered a compromise: Have members of the Bylaws and Resolutions Committee meet with the Elections Committee to hammer out an agreement on the matter. Terry, clever tactician that he is, probably was offering up his solution as a delaying tactic, with the expectation that the committees would not be able to work out their differences before this summer’s vote count. In that judgment, he was probably correct. At a recent private meeting with a member of the bylaws and resolutions committee, Wentworth continued to sing from the hymnal of personal grievance, nursing his hurt feelings (or the pretense thereof) and putting them ahead of the interests of the HOA he purportedly serves. But whether that effectively kills off the issue for resolution in this election cycle is not necessarily ordained. Is it possible that enough Ocean Pines property owners will show up for the vote count, refusing to leave when the committee illegally votes to go into closed session for the purpose of dealing with a personnel matter? What will Wentworth do then?

56 Ocean Pines PROGRESS

July 2016

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