June 2023 Ocean Pines Progress

Page 1

June

Board approves Washington state firm to handle 2023 election

Horn, Jacobs oppose change to OPA’s ballot procedures

AWashington-state based company is the Ocean Pines Association’s new elections voting contractor. On the recommendation of the Elections Committee, the Board of Directors at its May 20 monthly meeting approved a $15,994.50 contract with Election Trust to take over as the OPA’s voting contractor.

Director Rick Farr offered the motion to approve the contract, which allows the Elections Committee to enter into an agreement with Election Trust LCC of Bainbridge Island, Washington, as a single point of contact to conduct and perform all printing, mailing, receipt and counting of all votes for the upcoming election.

The company is based near Seattle. Farr is the Board’s liaison to the Elections Committee.

Along with Farr, OPA President Doug Parks and Directors Stuart Lakernick and Monica Rakowski voted in favor of the motion. But Directors Colette Horn and Steve Jacobs were opposed, and outgoing Director Frank Daly abstained from voting on the matter.

As background, Farr said it is the responsibility of the Elections Committee to source a contractor to perform the handling of the election materials for the upcoming election. The Board has already approved the committee’s recommendation that the 2023 election will be con-

Parks inks new legal contract

Previously on the other side of legal matters involving the Ocean Pines Association, Bruce Bright, of the Ocean City-based law firm Ayres, Jenkins, Gordy and Almand, will be serving as the OPA’s general counsel and chief litigator.

OPA President Doug Parks on May 22 signed a two-page contract that makes the relationship official.

~Page 13

Four candidates vie for OPA Board

Four Ocean Pines Association members have filed as candidates in this summer’s Board of Directors elections, with a fifth submitting an application by disqualified after a search of land records showed she was not an owner of record of Ocean Pines property.

Elaine Brady and John Latham were the first to file, and Jeff Heavner and Jerry Murphy followed for the two seats to be contested in this summer’s election.

~ Page 16

Heavner, Murphy complete OPA Board slate

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Election outsourcing

From Page 1

ducted with paper ballots only, so the next step was to find a contractor.

Farr said the Elections Committee conducted a search for a national company to perform a full array of election services to include end to end verifiable election by paper ballots. As an option for future elections, Election Trust can provide a hybrid balloting platform of vote-by-mail and online voting.

On-line voting will probably be added next summer if all goes well this summer with the election. After last summer’s glitchy process, the majority directors and Elections Committee are hopeful for a seamless and controversy-free process this year.

The approved contract amount of $15,994.50 actually is for the hybrid option, with $13,937.50 listed in the meeting materials for paper-only. Farr later told the Progress that he decided to go with the higher number in his motion because of the difficulty in predicting the cost of postage for returning ballots.

Some OPA members will no doubt use the U.S. Postal Service to send ballots across country, while the OPA will be encouraging those who are able to do so to drop off their ballots at the police station dropbox. The intention then is to FedX ac-

cumulated ballots to Election Trust for next day delivery.

Election Trust will design, mail out, tabulate, audit, scan, and archive ballots using a federally certified system. The option of a live observation via Zoom, counting and report of all the ballots is included in the pricing, as is confirmation that a ballot has been received.

Ballot receipt confirmation will take place via email if an OPA member has an email address on file with the OPA.

The usual fault lines on the Board emerged during discussion of Farr’s motion, with Horn immediately voicing her objections and Jacobs following.

Daly, who has been aligned with Horn and Jacobs on some recent controversies, took a more nuanced view, parting company with his erstwhile allies on the final vote by abstaining.

“I’m not appreciating why this company’s capability for hybrid voting or email voting is a consideration for this year since that’s not on the table for this year,” Horn said. “I’m also not appreciating why we haven’t heard from the local vendor [Ace Printing and Mailing of Berlin] that has been used for years.”

She said the processes used by Ace Printing in years past have been adequate and are not in question.

She wanted to know why the OPA s going out

of state for a vendor, particularly since there are issues related to the mailing back and forth of election materials and there is no cost savings over the local vendor.

“We’re giving up an opportunity to support a local business,” Horn said, adding “This is not in the best interest of Ocean Pines Association to go with this company this year.”

Daly wanted to know why the vendor the OPA has used basically all our past elections has “been iced out” for some reason. He said there seems to be some changes in the timing for mailing and return of ballots in the request for proposals that was circulated to vendors and he wanted to know why. He said it’s an issue of “community trust” that is being raised.

Regarding the lack of a response to the RFP by the local vendor, Parks said he was informed that company did not submit a response by the deadline even after being reminded. [See article elsewhere in this edition of the Progress for details.]

Daly then asked if the recommended company has the ability to notify members who have voted in an election that their mail-in ballot has been received. He said it appears that Election Trust

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Election outsourcing

From Page 3

has the capability of doing that, while in past elections members had no idea whether their ballot had been received and counted.

“It seems to me that’s worth the cost of doing it,” Daly said in reference to hiring Election Trust.

Using a company located on the West Coast to handle ballots raises the issue of more ballots arriving too late to be counted, but Daly indicated he was not too concerned about that.

Members are “not six year olds that need to be parented,” he said, suggesting that with all of the elections communications sent to members in various ways, members should be able to avoid their ballots arriving too late.

But he acknowledged that the postal service is challenged with mail delivery and everyone knows about it.

“I’m not real sympathetic to people that say my ballot’s late,” Daly said. “You’re an adult. Act like an adult if you want to vote.”

He voiced support for retaining the ballot dro box that has long been an election fixture at the Ocean Pines Police Department. Voters can drop off their ballots there at any time up to the deadline.

Farr said the dropbox will be retained and that FedX will be used to overnight the ballots to Election Trust.

Parks said he didn’t buy the argument that mailing ballots to Washington state will delay their arrival any more than it would to closer locations.

He supported retaining the police station dropbox, but also said members could send their ballots directly to the vendor. “We’re trying to introduce a new system but at the end of the day I think its practical because people are used to doing it that way and there’s not a lot of overhead or risk associated with continuing to offer that service.”

For those ballots dropped off at the police station, he agreed that the OPA could do one or more batch mailings of them to the vendor in Washington state.

Jacobs opposed the motion, saying the Board Resolution M-06 places the responsibility for counting ballots on the Election Committee and that the count should be open to members to observe. He said the resolution goes further stating that should occur “in a room sufficient to accommodate the process and association members wishing to observe the count.”

There can’t be any question that the language assumes the count and ability to witness the count is to be local and not virtual, he said.

He said there is also no evidence the Elections Committee met to deliberate the contract; there was no announcement of a meeting or minutes of a meeting where the subject was discussed. In-

stead, he said earlier minutes from an Election Committee meeting said they had in fact talked with the local contractor. That did not happen because the request for proposals was released instead, he said.

Finally, Jacobs said the cost of the contract at $16,000, not including postage, which could add another $4,000 in expenditures. The previous contractor’s cost was about $8,500 last year.

“There’s nothing in this proposal that says that the local contractor used over the last number of years cannot do same function that this contract calls for at a lower cost,” he said.

Regarding use of the police department dropbox for ballots, Jacobs was supportive. He said doing away with online voting this year has closed off one venue for people to vote.

“Now we’re talking about closing off the dropbox, whether we do or we don’t, there’s nothing in this proposal that says it will continue,” he said.

It’s clear from subsequent comments from Farr, however, that it will. He said the matter has been discussed with General Manager John Viola and that using FedX to overnight the ballots won’t be a problem.

Farr took issue with the comments about shutting out Ace Printing and Mailing. He said the vendor simply didn’t reply to the RFP in time, and therefore the Elections Committee selected another company. He said Election Trust has

June 2023 Ocean Pines PROGRESS 5 COVER STORY
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6 Ocean Pines PROGRESS June 2023

Election outsourcing

From Page 5 “flawless election processes.”

Jacobs was not persuaded.

“This proposal basically leaves us wholly dependent on the abilities and structure and funding of the United States Postal Service. And I’ll guarantee you there’s more than one person in this audience right now who’s still waiting for the Christmas card from their favorite aunt and uncle to be received,” Jacobs said.

He said there is an opportunity to keep the process local and use a system that works so it doesn’t make sense to change the process.

Later in the meeting, Daly reiterated his comment that members should receive confirmation that their votes have been received.

If the Election Trust can provide those confirmations to voters, then it may be worth using the Washington state-based company, he said.

Farr said that tracking of ballots and confirming receipt of ballots is included in the vendor’s proposal.

Elections Committee chairman Tom Piatti told the Progress in a May 26 telephone interview that for those property owners with an email address on file with the OPA, the vendor will send confirmation via email that a ballot has been received at Election Trust’s headquarters.

He said that the OPA as part of the election process will provide an Excel spreadsheet con-

taining the name, address and, if available, the email address of eligible voters. Outer envelopes containing ballots will be cross-checked with that list, he said, triggering an email receipt.

Horn said she wondered what will happen if voters say they haven’t received confirmation their ballot was received.

Members have never received confirmation that their ballots were received in OPA elections, Parks said. “It’s existed that way for a very long time,” he added.

Horn said changing the procedure and adding a confirmation of ballot receipt is a new step. She conceded that it presents an opportunity for voters for the first time to say their ballot wasn’t confirmed.

Parks said having a vendor that can send confirmations to voters is an added benefit.

Prior to the 2022 election, for many years Ace Printing and Mailing of Berlin handled the mailing and processing of ballots.

For the 2022 election, the Board approved a hybrid voting approach, with Ace Printing awarded a contract to print, mail, handle election materials and VoteHOA NOW contracted to perform the online voting function.

According the Elections Committee, Ace Printing did not submit a proposal for services for the 2023 election prior to the March 31 deadline, and that as a result the committee conducted research to find a national company to perform the full array of election services.

After researching five and disregarding three “online only” voting companies, the committee recommended awarding a contract to Election Trust.

“Not only do we find Election Trust to be the best value, but they also offer an “Observable Live Count” option via Zoom live streaming.

Also, there will be no back-and-forth electronic exchange of election data as was done in 2022, and OPA will no longer have to procure software or equipment for ballot counting purposes,” Committee Chair Tom Piatti said in the committee’s recommendation to the Board.

Some critics have pointed out that outsourcing the election is a violation of Board Resolution M-06, which specifies that the Elections Committee is responsible for counting ballots on-site in Ocean Pines and that the count must be open to the OPA membership.

That conflict will be remedied, with Farr confirming that general counsel Bruce Bright is already working on a M-06 revision on second reading that will be voted on at the June Board meeting, with approval all but assured well before ballots are counted in early August.

“It’s an easy fix,” Farr said, noting that the Board made a similar after-the-fact change to M-06 last year to accommodate the change to online voting. “I don’t recall complaints then about changes to M-06,” Farr said. “Board resolutions, unlike the DRs (declaration of restrictions) or bylaws, can be easily changed by Board majority.”

June 2023 Ocean Pines PROGRESS 7 COVER STORY

Apparent misunderstanding ends Ace Printing’s involvement in OPA Board elections

Election Committee shopped mailing and counting services to national firms when local vendor didn’t submit a bid by the deadline

An apparent misunderstanding or miscommunication between Ace Printing and Mailing, the Berlin vendor that has been involved in the printing, mailing and counting of ballots cast in annual Board of Directors elections for more than 20 years, and the Ocean Pines Association’s Elections Committee has led to the termination of that long-standing relationship.

It’s always possible that future Boards will again use Ace Printing and Mailing for election-related services, but for the 2023 election at least and probably in 2024 the OPA will be using a Washington state firm, Election Trust LLC, of Bainbridge Island, near Seattle, instead. [See article elsewhere in this edition of the Progress for details.]

Statements in the latter part of May that appeared on the oceanpinesforum.com Website from Ace Printing owner Thom Gulyas and Elections Committee member George Alston provide the back story for how this long-standing relationship was severed.

The short version of the story is that Gulyas didn’t submit a formal bid in response to the committee’s request for proposals for the 2023 election services.

The longer version is that Gulyas said he didn’t have enough information from the committee to submit a bid by the deadline.

A communication or misunderstanding occurred over whether Gulyas or the committee was to reach out to the other for a follow-up meeting to obtain that information, with Gulyas in his remarks apologizing “for any confusion and misinterpretation of my lack of communication. I now understand how it could have seemed like I was not showing any interest in helping, when in fact I should have been more direct. I will take extra steps to make sure this mistake doesn’t happen again in the future.”

Whether he will be given a realis-

tic shot in 2024 to regain the contract may depend in part on how well this summer’s election in its numerous facets is handled by the Washington State firm. The committee’s Board liaison, Rick Farr, recently said this company is set up to handle on-line voting, which he said could resume next year if this year’s election goes well.

The company also will be conducting the counting of ballots at its offices in Washington State, to be observed by the committee via Zoom, an on-line meeting streaming service. That’s new; in previous years the committee has been intimately involved in the vote count.

For this summer, the Board has voted to go with paper ballots only, with one ballot to be sent out to each and every lot in Ocean Pines whose owner is in good-standing.

For next summer’s election, should Gulyas want to renew his relationship with the OPA, he probably would need to present a viable path for an on-line voting option.

According to Alston, the commit-

tee began the selection process for an election vendor wanting “to use Thom Gulyas to be our contractor. We did not even look into another company. We had total respect for Thom and his history with OPA.”

Alston said he did the research for new scanning software that would work with the OPA’s highspeed scanner and “asked Thom to check it out. He looked at a webinar on it and approved it. We even sent our recommendation to the board to do only paper ballots using the size ballot Thom suggested. We had made arraignments for him to do testing of the software on our scanner which is very good and fast. We were all in with Thom,” Alston said.

The committee then sent a request for proposal to be signed by Gulyas and returned to General Manager John Viola by a March 31 deadline.

“He [Gulyas] sent an email that he [had] received the PDF. He then contacted us that he had a few questions,” Alston said. “Then nothing. We tried to contact him after he

did not respond to the RFP because we really wanted him. Nothing. We should not have to beg for a bid.”

Alston said that put the committee “between a rock and a hard place. We had a timeline. Thom had been the only one locally to bid in the past, so we had to look elsewhere.”

The committee found seven national companies that handle elections. All but two had issues and two had stopped paper ballots altogether, he said.

Of the two that could provide services the committee wanted, Election Trust LLC seemed to be the best fit for Ocean Pines in the view of the Elections Committee.

Alston said he attended the May 20 Board of Directors meeting and was prepared to answer any questions posed by directors about the proposal. There were none, although Alston said there had been phone calls prior to the meeting from unnamed “Board members with stupid accusations.”

He did not itemize those questions in his posted remarks on the forum or who had posed them.

In his statement, Gulyas made it clear that his failure to submit a proposal by the March 31 deadline did not imply that his company was “not interested in helping OPA continue with their elections. I have always stated that we are willing to provide our services to OPA, but we understand that, due to budgetary constraints, turnover of committee volunteers, etc., they may need to

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June 2023 Ocean Pines PROGRESS 9

Board to revise to M-06 election procedures

The Board of Directors at its May 20 monthly meeting discussed changes to Board Resolution M-06 that establish procedures for the conduct of annual Board elections.

The changes, likely to be voted in a second reading at the Board’s June meeting, would allow the OPA to outsource the annual Board election process to Washington state vendor Election Trust.

More specifically it would remove the Elections Committee’s handson involvement in the counting of ballots. Remote viewing of the actual count would be authorized if not mandated

Ocean Pines Association Director Rick Farr said that counsel Bruce Bright is working on the language that will be voted on by the Board at its June meeting. “It’s a relatively simple rewrite,” Farr said.

Also likely to be discussed at the June meeting is a new attachment to M-06 that pertains to recount procedures. There never has been a recount request from a candidate in an OPA election.

The proposed procedures would require a candidate requesting a recount to do so prior to the annual meeting.

Rules to require a recount request before the annual meeting

The request would have to be made to the OPA president and chairperson of the Elections Committee.

This proposed change would give the candidate requesting a recount only a couple of days to do so.

The ballot count typically is scheduled for the Thursday before the annual meeting, which is always held on the Saturday following the count and announcement of results.

Among the proposed changes:

• A request for a recount must be received in writing from the candidate prior to the annual meeting of the Association. This request must be provided to the Association president] and to the Elections Committee chairperson.

• Directors completing their first term and a candidate for reelection will recuse themselves “from any discussion, process and procedures related to the conduct of a recount.”

• The Board will request the Elections Committee chairperson to conduct a recount of the valid ballots cast for the election.

• The Elections Committee chairperson will schedule an Elections Committee meeting including the committee members, contractor operating the scanner {a reference to Scantron, equipment once used by the OPA has been deleted), and As-

sociation staff as needed. This meeting will be on the day of the annual meeting “or as soon as possible after the annual meeting.”

• The recount will be completed in an open session that any association can attend “in a manner like that specified in M-06 ...”

• The results of the recount will be communicated to the association president and posted immediately after completion ... in the Administration Building of the association.

• The Board will hold a special meeting no sooner than three days after the completion of the recount, but as soon as possible.

• The Elections Committee chairperson or designee will attend the special Board meeting and present the results of the recount for acceptance/validation by the Board on behalf of the association.

• The election results will then be final and the winning candidates will begin the process of joining the Board.

Elections Committee chair Tom Piatti told the Progress in a May 27 telephone interview that Election Trust, the OPA’s newly appointed elections vendor, would overnight outer envelopes and ballots to Ocean Pines in the event of a recount request.

Piatti said one of the benefits of

having Election Trust handle the mailing and counting of ballots is that the company will be able to notify OPA members via email that their ballot has been received.

The OPA will be providing the vendor with an Excel spreadsheet of property owners include name, address and e-mail address, if there is one on record. The vendor will be able to cross reference ballots received with this master list of property owners, Piatti said.

For those owners who have an email address on file with the OPA, they will be receive an email indicating that their ballots have been received.

“That’s never been possible before now,” Piatti said.

Ace Printing

From Page 8 look into other options for future elections.”

Gulyas said when he received the RFP, he did not have enough information to accurately bid on it.

“It was not known by me at that time how many vacancies on the OPA Board of Directors (BOD) would be filled, nor how many candidates there would be in total. I was tasked with reviewing the new software used for counting ballots. I confirmed with the committee that I had accomplished that task and the software was more than adequate,” he said.

But Gulyas said he still could not price a proposal “because there were still too many variables. I was contacted by the committee as to my non-response and I shared these very same facts. I said ‘as we get closer, I’ll reach back out in midMay to meet again and get started.’”

Gulyas said he was waiting to see how many candidates filed for the election by the filing deadline “before accurately pricing this job. If I’m not mistaken, I believe the cutoff is somewhere in the beginning of June.”

Actually it was May 10.

Five candidates met that deadline, with one disqualified because she was not listed as a property owner on a recorded deed.

That’s when Gulyas in his statement apologized “for any confusion and misinterpretation” in his lack of follow-up with the committee.

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Board approves new legal contract

Agreement for legal services with Ocean City attorney Bruce Bright has no termination date

Previously on the other side of legal matters involving the Ocean Pines Association, Bruce Bright, of the Ocean City-based law firm Ayres, Jenkins, Gordy and Almand, will be serving as the OPA’s general counsel and chief litigator.

OPA President Doug Parks on May 22 signed a two-page contract that makes the relationship official.

Despite some initial push-back from two directors regarding the change in legal counsel, the Board of Directors unanimously approved a contract with the AJGA firm during the May 20 Board of Directors meeting.

Parks offered the motion to approve the terms and conditions in the contract.

Director Stuart Lakernick gave a second to the motion, which was approved unanimously with little discussion and devoid of the dissent present during the Board’s April meeting.

Director Steve Jacobs asked if specific changes brought up during an April Board discussion have been worked out with the firm.

Chief among those issues was whether the law firm could serve as both the OPA’s general counsel and chief litigator.

“During the consideration by the Board, there were several suggested changes to be made to the contract. Are those in the contract?”Jacobs asked.

Parks said the specific terms and conditions of the contract had been submitted by the law firm and reviewed by the Board.

He said changes discussed during the April meeting were incorporated into the contract for services.

Director Frank Daly had broached the topic of the firm fulfilling the role of both general counsel and litigator during the April Board meeting.

He noted that there is a benefit to having a local litigator who has connections in the community, and there could be cost savings as well.

The proposals for services submitted by AJGA and the OPA’s former general counsel, Lerch Early, indicated that the local firm’s hourly rates are less than Bethesda, Md.-

based Lerch Early.

In prior years, litigation involving the OPA was handled by a firm selected by the OPA’s insurance company, but given Bright’s success in litigating against the OPA, most of the directors are adamant that it wants Bright in the courtroom representing the OPA if it comes to that.

They are also hoping that Bright, with his demonstrated mastery of the OPA’s governing documents, will offer legal advice that will keep the OPA and the directors from being sued for alleged violations of these governing documents.

The contract specifies that the firm will serve as outside general

counsel to OPA, its Board, and its departments.

As necessary and as authorized and directed by the general manager or OPA President, legal counsel will attend association meetings, but this is not expected to be the usual practice.

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

FRESH PASTRIES

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

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

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

Brownie ….................................……….. $2.55

Crumb Cake ............................................$3.55

Turnover ………..........................……… $3.55

Croissant Pastry/Danish ……….............. $3.55

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Éclair ………..................................... $3.95

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From Page 13

AJGA will provide services and legal advice and recommendations as requested, with most of that occurring in communications with the general manager.

AJGA will assume the responsibility of legal counsel, replacing Lerch, Early, and its lead attorney Jeremy Tucker in that role.

In addition to serving as litigation counsel, the firm will also handle all assessment collection mat- Bruce Bright ters, and compliance, permits, and inspections, or covenant enforcement matters as requested by the OPA President or general manager.

Tucker is handling at least one matter that began prior to Board’s decision to hire AJGA -- the request for documents related to the 2022 Board election by OPA member Sherrie Clifford.

Perfect vacation get-away place for your summer and weekends in the Fall & Winter. Immaculately maintained cottage home with a nice shade tree and deck is located within minutes of Ocean City and Berlin. Nice set of bulk beds, with an extra mattress underneath, along with 2 sleeper sofas make this great for all to enjoy. Unit has a small washer and dryer in it. Detached shed is perfect for your bikes and beach gear. Clubhouse, Laundry & Bath house, Swimming Pool with Life Guard, Cable TV, Basketball Court, Children's Playground, Picnic Area, Boat Marina with slip fee usage, Lawn Maintenance, Boat Ramp Boat and RV Storage with fee available, Trash service, water & sewer and Management. Not a yearround community. Full time occupancy only from April 1 through September 30. Between September and April homes may only be occupied for 30 consecutive days or an aggregate of 60 days. All weekend enjoyment allowed.

Firm partners Bright and Maureen F.L. Howarth will have principal responsibility for working with the OPA, with Bright serving as the litigator. Associate attorneys Bradford J. Kirby, Victoria O’Neill, and Spencer A. Cropper and paralegals will assist as needed.

Partner time will be billed at the rate of $325 per hour, with associate time billed at $225 per hour and paralegal time at $95 per hour.

Attorney time for insurance-covered litigation defense will be billed at the rate approved by the OPA’s carrier, which is currently $220.

The OPA will be charged a monthly flat fee of $400 to cover minor and non-lengthy phone calls during each month to Bright or Howarth from the general manager or OPA President, “subject to a reasonableness limitation as to total monthly time expended fielding such calls.”

Fees for assessment collections pursued under the Maryland Contract Lien Act will be paid through the collection process, by lot owners or, in the case of completed lien foreclosure proceedings, from sale proceeds.

The agreement may be terminated at any time by either party but otherwise has no termination date.

Termination of services will not affect OPA’s responsibility for payment for legal services rendered and out-of-pocket costs incurred before termination and in connection with an orderly transition.

In addition to fees, the OPA will be responsible for all out of pocket costs, expenses advanced or incurred for any matter handled by AJGA, including court costs, deposition costs, service of court documents, large copying tasks, expert witness fees, delivery costs.

AJGA can also request funds in advance, where appropriate for litigation expenses, to be held in escrow and then disbursed for litigation-related costs and expenses.

Parks said the OPA is required to have legal services as a part of the overall operation of the association’s business.

Periodically, generally after five years or so but sometimes longer than that, the OPA reviews contracts of all current professional service providers, including legal services.

It sent out a request for proposals to a number of law firms that provide various legal services to homeowners associations and other similar organizations to see if there was interest in providing counsel for the OPA.

Two of the firms contacted responded with proposals, AJGA and Lerch, Early, Tucker’s firm.

That the current Board was looking seriously at making a change in legal services was hardly a secret, with several directors prior to the RFP suggesting that a respected local attorney might serve the OPA well.

Even so, Parks made it clear in public statements at the April Board meeting that Tucker was an excellent lawyer who had performed admirably in his five years as OPA general counsel.

Bright’s hiring by the OPA follows two recent cases in which he prevailed in court against the OPA.

The most recent case involved the temporary suspension of former Director Tom Janasek from OPA food and beverage amenities after a widely publicized incident at the Ocean Pines Yacht Club.

The suspension was lifted and determined to be contrary to OPA governing documents.

Prior to that Bright succeeded in having current OPA Vice-president and Director Rick Farr declared the winner in a Board election, after a former Board majority was complicit in a decision to declaring him ineligible to run for and serve on the Board.

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Four candidates file for OPA Board; one disqualified

Third seat could open up for competition and directors may appoint replacement depending on when Daly resigns from Board

Publisher

Four Ocean Pines Association members have filed as candidates in this summer’s Board of Directors elections, with a fifth submitting an application by disqualified after a search of land records showed she was not an owner of record of Ocean Pines property.

Elaine Brady and John Latham were the first to file, and Jeff Heavner and Jerry Murphy followed for the two seats to be contested in this summer’s election.

A fifth candidate, Jean Miller, was formally disqualified by OPA Director and Secretary Stuart Lakernick when it was discovered she was not listed on the deed at her declared address.

Two candidates who had been identified as possible candidates, former director Amy Peck and Residents Oversight Community founder Sherrie Clifford, opted not to run.

The four who are candidates all seem like they would be a good fit with the current Board majority, taking positions on some recent decisions that agreed with that majority. [See articles on Heavner and Murphy in this edition of the Progress.]

The decisions included the hiring of a local attorney and law firm as the new OPA general counsel and outsourcing the handling of this summer’s Board election to a national firm based in Washington state.

The two seats to be filled are currently held

Robert D. Park, DMD, MSD ORTHODONTIST

by retiring directors Doug Parks, the OPA president, and Colette Horn, a former president, both of whom are term limited.

It remains possible that this summer’s ballot will contain a third vacancy to be filled. Director Frank Daly recently announced he will resign from the Board when the purchase of a new home in Florida goes to settlement.

It’s unknown when that will happen, but Daly’s confirmation of his intent to resign was not contingent on the sale of his Ocean Pines home but rather the purchase of his Florida home.

He would automatically lose his seat on the Board if he no longer is an Ocean Pines property owner and Ocean Pines Association member. There is no indication that the sale of his Ocean Pines home is imminent.

The timing of his resignation would have an effect on whether that third seat opens up.

If he resigns before the ballot is finalized in early July, OPA by-laws say that the vacancy for the final year and a half of Daly’s term would appear on this summer’s ballot.

Whoever finishes third in this summer’s election would serve out the remainder of Daly’s term, which ends in August of 2024.

If Daly’s resignation does not occur in June prior to the printing of the ballots, then another provision in the by-laws governs how the vacancy is to be filled.

Subsection (c) of 5.04 appears to preclude the

To Page 18

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Board election

From Page 16

Board from appointing a Daly replacement before the annual meeting.

Instead, the authority to appoint a replacement to fill the remaining year of Daly’s unexpired term falls to the new Board that organizes after the election concludes in August, no later than 30 days after the new Board’s organizational meeting.

With Parks’s term expiring this August, the remaining Board majority of Rick Farr, Lakernick and Monica Rakowski would seem to be a position to name Daly’s replacement should at least one new director elected this summer join them in a new majority coalition.

The appointed director would serve out the remaining year of Daly’s term.

Time ran out on another method for filling the pending vacancy. It would have applied had Daly submitted his resignation on or before May 12, or 90 days prior to the OPA annual meeting.

Had Daly done so, the six remaining directors would have been required to appoint a replacement who would serve until the August annual meeting.

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Heavner, Murphy complete four-person slate

JEFF HEAVNER

Served as a Naval intelligence officer and instructor and 30 years with ExxonMobile

Publisher

Jeff Heavner, one of four candidates running for two and possibly three seats on the Board of Directors this summer, supports a number of recent decisions by the current Board, suggesting that he would be a good fit with the majority coalition that formed after last year’s election.

Heavner, a former naval intelligence officer and

instructor and oil company engineer, purchased a condominium with his wife in the Marina Village in 2017 and another home in 2019, when they became full-time residents.

In a recent interview with the Progress, Heavner cited the hiring of a local attorney, the outsourcing of the Ocean Pines election process to a national firm based in Washington state, and the opportunity to restore Jenkins Point as positive initiatives by the current Board.

He called the hiring of local attorney Bruce Bright, and his law firm, Ayres, Jenkins, as “a very good choice” for the Ocean Pines Association’s general counsel.

“It’s always better to keep it local if you can, especially in the legal arena,” he said. “I support what the Board did.”

The Board took a different approach with respect to the mailing, processing and counting of ballots in this summer’s Board of Directors election, taking most of the process out of the hands of the Elections Committee.

“The Board had an election to run, and my understanding is that the local vendor, Ace Printing, didn’t respond in time to a request for proposals. The Elections Committee and the Board needed to act, and seem to have chosen a reputable and competent firm to handle the election,” he said.

Heavner said a new feature of the voting this summer will be confirmation from the vendor that a ballot has been received.

“I’m not sure if it will be an email, or a postcard,” he said, “but in any event it’s a key enhancement.”

He also said that those concerned about sending a ballot across country using the U.S. Postal Service can avoid that by dropping off their ballots at the police station dropbox.

“The OPA will keep the dropbox, at least for this summer, and will FedX the ballots to Washington state at certain intervals,” Heavner said, adding that he also believes the election will be handled better this summer by ensuring that every lot receives one ballot.

“That alone should solve one of the primary problems with last summer’s voting,” he said.

The candidate also said he is a strong supporter of the Jenkins Point restoration project, subject of a Town Hall meeting in mid-May.

“It’s a really wonderful project,” he said, commending the current Board for maintaining good relations with those who run the Maryland Coastal Bays Program.

Heavner is a 1983 graduate of the United States Naval Academy with a Bachelor of Science degree in resource management, with a strong focus on leadership and engineering.

He served on the aircraft carrier, USS Midway, with the home port in Yokosuka, Japan, as an intelligence officer for one of the last F-4 Phantom fighter squadrons. He served as an instructor at the Navy and Marine Corps Intelligence Training Center in Virginia Beach, and was awarded a Navy Achievement Medal for superior performance in his field.

Leaving the Navy after five years of service and an honorable discharge, he spent 30 years as an engineer with ExxonMobile Corporation and the last four years as a director of an eight-person lubricants leadership team.

He and his wife volunteer at a non-profit horse rescue complex two days a

JERRY MURPHY

Lived on a houseboat at the Yacht Club, built round houses in the 1970s, and was the first manager of the Ocean Pines McDonalds

Jerry Murphy is one of four candidates running for the Ocean Pines Association Board of Directors this summer.

He has history in Ocean Pines that dates back to the early 1970s. That makes him a pioneer, and he’s proud of it.

He was in his 20s in the 1970s when Boise Cascade was actively developing and selling lots in Ocean Pines. His parents owned a Boise-built seasonal home on Widows Watch Court, which they leased back to Boise whose general manager at the

time used it as a sales office, one of many throughout Ocean Pines at the time.

The lease-back lasted for about two years, after which the home was renovated and became a residence for Murphy’s parents.

Murphy recalls entering Ocean Pines over the North Gate bridge, which in the early days was gated and manned by an Ocean Pines resident, Elmer Hastings, who later became a director and Ocean Pines Association president in the early 1980s.

Murphy says he lived on a “beat-up” houseboat moored at the Yacht Club marina. He showered in the Yacht Club.

Murphy took full ownership of his parents’ home in the 1990s, demolished it in 1994 and replaced it with the home that’s on the property today. Initially he was a part-time resident but it’s been his primary home for the past ten years.

“The original was a seasonal home as most were back then,” he said. “Boise built homes designed for summer living, without a lot of insulation and window units for air conditioning. The original home was also built closer to the water than modern set-back rules allow.”

During the 1970s, Murphy became a builder working for himself and was responsible for the construction of eight 28-sided round houses in Ocean Pines. Copy-cat builders tried to compete with eight side houses, but Murphy said his 28-side homes were much closer to an actual circle.

He’s proud that one of his round houses on Dockside Court in Bay Colony remains standing and is occupied today.

Later, he became the manager of the Ocean Pines McDonalds in 1975-76 working for the original owner, Earl Taylor.

He left the area for Baltimore and the Washington D.C. areas.

He has served on the Board of Directors for the Washington Park Company in Baltimore for eight years, with responsibility for preservation and maintenance of a 115-year-old historic building.

His resume also includes a stint on the Baltimore Liquor Board.

In the Washington area, he founded Shamrock Marketing Inc. which he sold in 2006, after which he and his wife, Julie Canard, became Realtors for the Bethesda Gateway Long and Foster specializing in Baltimore, Eastern Shore and Ocean Pines real estate.

Murphy says he spends most of his time in Ocean Pines and has the time to serve as a director and wants to “give back” to the community that launched his career in business. He believes his management skills qualify him for a seat on the Board.

He likes how the Board has been performing of late and agrees with recent decisions, including the hiring of Bruce Bright and the Ocean City law firm of Ayres, Jenkins.

He also says that the Board made the right decision to outsource the mailing and counting of ballots to a Washington state company, Election Trust LLC.

June 2023 Ocean Pines PROGRESS 19
OCEAN PINES
u u

Board to seek review of fining authority

Property owners found to have continuing Architectural Review Committee violations in ten sections of Ocean Pines could soon be subject to fines.

The Board of Directors voted unanimously during its May 20 monthly meeting to establish a system of fining property owners in those sections of the community that grant the authority to take this action.

The directors also agreed to seek a legal opinion on the ability to issue fines for violations in older sections where restrictive covenants don’t expressly allow it.

Over the decades, OPA legal counsel has

advised that absent specific authority to levy fines, the OPA is prohibited from doing so. Director Steve Jacobs during Board discussion suggested that the issue should be revisited by the OPA’s new legal counsel, Bruce Bright.

Director Colette Horn offered a motion, given a second by Monica Rakowski, to use the authority granted the Board in the governing documents to issue a fine penalizing property owners in continuing violation of ARC guidelines in the sections of Ocean Pines for which that authority is included in the Declarations of Restrictions.

The sections that contain this authorization are Section 12 lnnerlinks, Section 158 White Tail Sanctuary, Section 17 The Point, Section

Heavner

From Page 19

18C Mumford’s Townhouses, Section 18E Colonial Village North, Section 18F Marina Village Condominiums, Section 18G Marina Village Townhouses, Section 18S Mumford’s Landing Single Family, Section 19 Harbor Village, and Section 20 Triple Crown Estates.

Horn said the ARC has been proactive in asking the Board to use the interim enforcement tools that have been available to them to help with minimizing the time between the notice of, and compliance with, outstanding violations.

The Board has been open to acknowledging the existence of outstanding violations and authorizing the suspension of right to vote in

week, have a plot in the Ocean Pines Community Gardens, and take care of the gardens at their church.

He grew up in Dundalk, Md., and spent summers in Ocean City working at a family business on the Boardwalk.

As a director, he said he would use his work experience to effectively liaise with OPA advisory committees, the general manager, Board colleagues and support staff “for responsible investment in continued infrastructure improvements,” with focus on amenity maintenance,

safety, homeowner association standards, road maintenance and bulkhead replacement.

He described himself as a problem-solver with leadership skills.

Murphy

From Page 19

With respect to Bright, Murphy said the Ocean City lawyer “sounds like a guy I’d want on my side” in court, citing Bright’s various victories in litigation against the OPA.

He also said Bright’s firm handled the settlement of the home his parents bought in the early 1970s.

“Whenever possible, it’s good to use local services,” he said. “They have an excellent reputation.”

Murphy added that outsourcing election services to a firm on the other side of the country was necessitated by the failure to receive a timely bid from the OPA’s long-time local vendor.

He noted that there was discussion at the most recent Board meeting about the possibility of amending the Declaration of Restrictions to give the OPA authority to levy fines in the older sections of Ocean Pines as a way of improving enforcement of community guidelines.

“I’m not in favor of it, at least not until all the other avenues are explored,” he said. “It may come to that at some point, but not now.”

He said that even if fines were levied, those penalized in that way might refuse to pay the fines, in which case the OPA might end up in court trying to collect.

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Older sections don’t explicitly allow it, but newer sections do; directors vote to establish a system of financial penalties alies where it’s allowed
u

Fining authority

From Page 20

association elections and the use of and membership in Association amenities for the time a violation remains open.

She said the ARC believes the profile of the residents of Ocean Pines has been changing for some time from that of part-time residency using their property on weekends and for vacations to that of full-time residency for all ages using their homes as a primary residence.

Some have school age children, many have full-time jobs in the area and others have found a location to enjoy retirement.

“This has resulted in elevating the status of outstanding violations from a minor inconvenience to a major annoyance,” she said.

Pointing to a property owner’s comments earlier during the May 20 meeting, Horn said people who live in Ocean Pines full-time are asking the Board to use its powers of enforcement, limited as they may be, to compel enforcement in all of the sections.

Many of the people in violation may not care about having their voting rights and amenities privileges suspended for non-compliance, she said, but “most people do care about a fine that would be imposed upon them.”

Director Frank Daly supported Horn’s motion but said there are pros and cons.

He said there are not as many violations occurring in the newer sections of Ocean Pines to which this will apply.

“I don’t believe in any of these sections any violation has risen to the level of consideration by the Board [for enforcement action],” he said.

Typically, the violations are in older sections of Ocean Pines and it would require a change in the declaration of restrictions to fine in those areas, Daly said.

Still, he said he supports the proposal because it can be used to build trust with property owners that the OPA can use the ability to issue fines for violations in an appropriate manner.

He said most property owners do not trust the Board to levy fines, but

that’s the case in most homeowners associations.

“If you start fining personal lifestyles or things like that you’re going to run into serious trouble,” he said.

Establishing that list of fines with stakeholders that really understand the community, like homeowners and Realtors can help build trust, he said.

He suggested making a “list of things that really you think should be fined, keep the list small and impactful. Implement it in sections where it’s probably never gonna be used. And then you might start doing something that doesn’t exist today and that’s develop trust from the homeowners…”

Currently the number of properties now in disrepair does not have serious impact on the community, but they do have a serious impact on their neighbors, Daly said. “If you live next to a trash pit it’s going to affect your homeowner value and your lifestyle.”

Rakowski acknowledged that the newer sections of Ocean Pines may not have many violations, but said establishing fines in those areas will set a precedent going forward.

Then the Board can look at the restrictive covenants in other sections to determine is changes can be made to provide fining authority necessary to enhance the lifestyles and property of everyone, she added.

Horn countered Daly’s comments that trust rests with the degree to which a decision is made objectively versus subjectively.

She said the restrictive covenants and ARC guidelines contain specific criteria that can be applied to the application of fines as an objective process; either a property is in compliance with the rules or it is not.

“Nobody needs to question how offensive it may be or how much it may be part of a particular lifestyle,” she said.

Property owners bought in Ocean Pines knowing that the rules were in place, and in many cases because of those rules, Horn said. “It is the responsibly of the Board to enforce those rules.

“This is a tool that is available to the Board in some sections and is a step in the process to address areas where there are more numerous or egregious violations,” she said.

OPA President Doug Parks said he would want to investigate that possibility and get advice from legal counsel.

He said he believes the association could have the authority to levy fines for property violations, but said he would like to research further how that might unfold.

In general, he said he believes it would be a “pretty simple” process to change the declaration of restrictions in all of the sections that do not currently specifically state that the OPA has the authority to issue fines.

That would involve mailings to all property owners in each section and a section-by-section vote on the matter.

Parks pointed out that one of the arguments against this approach is that the OPA may end up with an inconsistency of property owners in some sections voting in favor of giving the authority to issues fines and others not doing so.

Indeed, that is precisely the argument he has been making to explain his reluctance to do a similar section-by-section vote to amend the DRs in the older sections of Ocean Pines to address the issue of shortterm rentals, including a provision that would give the OPA to authority to levy fines for those who run afoul of county and OPA regulations that govern short-term rentals.

That effort, which has had the backing of Horn and Daly, is opposed by other directors and is more or less off the radar.

Parks recently said it might be addressed by the new Board that is organized in August after the election.

He seems more amenable to such a vote if considered in the larger context of ARC guideline enforcement.

“I think that we owe it to the membership to see if we can follow up and clean that up,” he said, adding that the Board can work with its new legal counsel, Bruce Bright at Ayres, Jenkins, Gordy, and Almand, on the matter.

Berlin

Jacobs then asked if it is possible for the Board to also levy fines for violations in sections of Ocean Pines where the restrictive covenants are silent on the issue.

Daly said in the past the Board has been advised by legal counsel that it cannot issue fines in sections of the community where the declaration of restrictions do not specifically give the association that authority and that it cannot recoup legal fees when the OPA takes a property owner to court over a violation.

The OPA’s new legal counsel may have another take on the issue, he suggested, agreeing with Jacobs that it should be reviewed by Bright.

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OPA ready to accommodate ROC founder’s document request

Director Rick Farr

After months of delay, it now appears that the Ocean Pines Association will be accommodating the request of the founder of the Residents Oversight Community (ROC) Facebook page for access to various documents related to the 2022 Board of Directors election, reportedly including ballots and the coded outer envelopes that contained them.

The ROC founder is Sherrie Clifford. She posted a message on oceanpinesforum.com on May 23 saying that she has been “asking for books and records pertaining to the last election since last year! Then in February 2023 [I] hired an attorney. Still no books and records! Why the stonewalling?”

She said that she understands that “if the Board stonewalls long enough, the documents and emails can be deleted after one year.”

Clifford said that “bigger issue” is that when others request documents they are accommodated, but “when Sherrie Clifford requests them she is stonewalled.”

OPA Director Rick Farr told the Progress in a May 23 interview that there has been no stonewalling on the part of the OPA in response to Clifford’s request.

“The issue is coordination,” he said. The attorney handling the matter for the OPA, Jeremy Tucker, “sent

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a letter to Clifford’s attorney a week ago to coordinate [her visit to inspect documents]. There’s been no response yet from her attorney.”

Farr said once coordination details are worked out, the OPA will make the requested documents available to Clifford, probably in one of the meeting rooms at the Administration Building.

He said that an OPA employee will be there in the room with Clifford. No photos of documents will be allowed, and no individual will be allowed to accompany Clifford because the request for document access was for her and only her, Farr said.

In response to an inquiry from the Progress, Clifford said Farr has it backwards.

“Jeremy emailed my attorney on May 1, telling him that he had received information from the Elections Committee” and that Tucker said he would “do my best to respond” to the request for a meeting to inspect the requested documents the following week.

As of May 25, she said, neither she nor her attorney have heard back from Tucker, who has indicated that despite the recent decision by the Board to replace Tucker and his Bethesda, Md., law firm with Ocean City lawyer Bruce Bright and his firm, Ayres, Jenkins, Tucker has been retained to continue to handle Clif-

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says it’s just a matter of coordinating details, Sherrie Clifford wonders why it’s taking so long
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Document request

From Page 22

ford’s document request.

“We’re waiting on them,” she said. “They’re not waiting on us,” expressing frustration that the process of obtaining access to requested documents has taken so long.

In her May 23 forum post, Clifford encourages OPA members to file a complaint against the OPA pertaining to records access, fair elections, and open meetings with

the Consumer Protection Division within the Maryland Attorney General’s office.

She provided a Website, www. marylandattorneygeneral.gov, and phone numbers, 410-528-8662 and 888-743-0023.

Farr said that he is not at all clear what Clifford hopes to accomplish by encouraging the filing of a complaint with the Consumer Protection Division.

“I’m not sure any of this is even an issue of consumer protection,” he

said. “There is no dispute that she is entitled to inspect the documents she has requested.” Farr said that Tucker had agreed to grant access to the documents sought by Clifford months ago.

In a March 17 email to the Ocean Pines Association, Clifford had requested all Board of Directors’ emails relating to the controversial 2022 election and those relating to the resignation of the Elections Committee members who oversaw the election, and who conducted a

hand-count of ballots cast in late September.

The hand-count confirmed the winning candidates in the election but by margins modified from the tallies in a count of the ballots in early August.

An email from Tucker obtained by the Progress suggested that Clifford had withdrawn her request for the emails, leaving ballots and the envelopes among the documents she wants to review.

But Clifford said in a text to the Progress that neither she nor her attorney have modified the original request for documents.

She is requesting all election documents and records, including emails that “are in any way related to the subject matter of my original request.

“This should include, without limitation, documents related to the 2022 election, such as all paper ballots, all envelopes, all emails and attachments related in any way to the election, or its results, or the election committee, as well as all databases, tables or files from the online voting company VoteHOAnow.com, and all correspondence to or from vendors involved in the election including ACE Printing [of Berlin}, VoteHOANow.com and Scansurveys.com.”

Farr had said in an April 22 text that Clifford had not yet been given access to any documents because “apparently she has changed her mind again” on what documents in particular she wants to inspect.

Farr later said that in his view no inspection of documents will lead to any greater insight into an election that everyone agrees had flaws but in which there has been no credible evidence that proves the outcome was not as determined by a handcount of ballots by the former Elections Committee in late September.

“The election is over,” he said. “The focus should be on this year’s election.”

In a recent interview, Farr indicated that he thought Clifford had clarified the documents she wants to review, but he later retracted that.

“I really have no idea what she wants,” he said. “It’s kinda late to be asking for anything.”

Clifford in response to a May 23 text from the Progress said she had been “very clear” on what documents she was requesting access to. She also said it’s not too late for the OPA to produce the documents she has requested.

“I’m entitled to them,” she said. “All of them.”

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Amended resolution limits member participation at monthly Board meetings

Revision says Public Comments are available only for those who attend in person

An amended Board of Directors

Resolution will restrict Ocean Pines Association members who are not physically present at Board of Directors’ meetings from speaking during the Public Comments segment of the agenda.

The Board approved the change in a 4-3 vote at its May 20 monthly meeting with OPA President Doug Parks, Directors Stuart Lakernick, Rick Farr, and Monica Rakowski in favor, and Directors Steve Jacobs, Colette Horn, and Frank Daly opposed.

“I will vote against this, because I would prefer to let everybody who wants to make comments make

comments,” Jacobs said. He said he doesn’t support the idea of limiting public comments to only people attending Board meetings in person.

Jacobs said the Board has made a change to allow hybrid in-person and virtual meetings to increase participation.

He said members who attend virtually should be allowed to make comments.

The By-laws and Resolution Committee reviewed Resolution B-02 concerning Rule of Order for Meetings of the Board.

The revision states that any member who desires to address the meeting during Public Comments must be recognized, but then goes on to specify that members must at-

tend the meeting in person to make comments. That is the sole change proposed to the resolution.

“I will be voting against this,” Horn said. She added that during her time as OPA president she strove to make meetings more accessible to everyone and participation easier for members.

“I think this is a bad idea to restrict full participation in the meetings by the membership,” she said.

Changes to Resolution B-03, Meetings of Association Members, will do the opposite for the OPA’s annual meeting, addressing procedures for virtual or hybrid meetings.

The proposed changes to Resolution B-03 addresses the requirements as well as the participation

for Association members who attend virtually or electronically and was recommended by the committee.

While this matter had been previously discussed and considered by the prior Board in 2022, there was no further action at that time.

This revision to Resolution B-03 requires that the general manager report to the Board that the capability exists for only qualified members attending virtually to be counted toward a quorum, to vote and to fully participate in the meeting.

The committee said the suggested changes allow for sufficient safeguards to allow virtual participation by association members.

Horn gave a second to the motion, but pointed out the conflict of allowing virtual public comments at annual membership meetings but not at regular Board meetings.

Parks said the onus is on the general manager to ensure the Board that virtual membership participation is feasible.

Jacobs asked how the OPA will verify the good standing of members so they can participate in the annual meeting.

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Resolutions

From Page 26

He agreed that it is the charge to the general manager to inform board that staff has the capability to determine if a member is in good standing and able to participate in the meeting.

Parks suggested the Board table the motion on the resolution until June to give the general manager time to investigate the issue and provide a solution for verifying the status of members participating virtually.

The directors also discussed a proposed revision to B-05, Conflicts of Interest.

This resolution addresses the disclosure of confidential information, which is undefined in the resolution.

The change specifically addresses financial or personal gain or benefit for the person involved or their family.

Resolution B-05 focuses on any financial or monetary advantage or benefit a director, officer, employee or committee member may realize due to their duty to the association.

On the advice of legal counsel, the Board agreed to remove one section of the resolution regarding disclosure of confidential information, which is undefined and may not conform to the subject.

The limitation on disclosure of confidential information could be a matter for Board consideration in a separate resolution.

Parks said he doesn’t think the language should be completely removed.

He said if there is a piece of confidential information that shows a potential conflict of interest that shouldn’t be removed from within the resolution.

“If it’s not in this, where does it go?” he asked.

Horn responded that she doesn’t think the language regarding confidential information goes far enough but agreed that it doesn’t belong in Resolution B-05.

She suggested creation of a separate resolution that would address the issue and expand confidentiality to topics such as Board email and documents in their possession.

Jacobs voiced support for remov-

ing the language from the resolution and asking the committee to draft a separate document that protects the confidentiality of information.

The revision also specifies that no director, officer, employee or committee member of the association shall knowingly misrepresent facts in order to achieve any measure of personal gain in any matter for themselves or any affiliated company from which he or his family member may benefit.

All decisions must be made with the best interest of the association in mind, the resolution says.

In any situation where any appearance of a conflict of interest could exist, such as when a director, his company, his family member, or friend would be benefited by a decision of the Board, the conflicted director must fully disclose the nature of the conflict in writing.

Any self-dealings or dealings with related parties must be fully disclosed to the Board.

The Board approved changes to Resolution B-06, Indemnification Policy, which updates the authority for indemnification of certain indi-

viduals, the conditions for indemnification and the possible inclusion of some volunteers to be indemnified.

The changes include a finding that a person was acting in good faith on behalf of the OPA, within the scope of the activity assigned, may be indemnified.

It also states clearly that those who have acted in bad faith or act with active and deliberate dishonesty would not be.

The resolution empowers the Board to indemnify certain volunteers, including members of advisory committees, but not does not require it.

While acting on behalf of the Association, these individuals may become subject to claims by third parties seeking to hold them liable for their volunteer activities.

Another Resolution, M-07, regarding bulkheads and waterways was brought to the Board’s attention by the By-laws and Resolutions Committee.

The committee is asking the directors to review the existing document and suggest any changes they feel are necessary.

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Viola avoids publishing names of CPI ‘violators’

Directors approve motion suspending property rights of those found to be violating OPA rules

The Board of Directors suspended the voting rights and access to amenities for ten property owners found in continuing violation of the Ocean Pines Association’s restrictive covenants. The Board took the action during its May 20 monthly meeting after finding that the property owners have failed to rectify violations on their properties lots despite repeated attempts by the Compliance, Permits, and Inspections Department to get them to do so.

While the addresses of the property will be published by the OPA, at least for now, the names of the owners will remain undisclosed.

Director Colette Horn offered a motion, which carried unanimously, to declare the existence of the open violations on the properties, thereby suspending the voting rights and use of association amenities for as long as the violations remain open.

Horn said “this motion is meant to use the enforcement tools that we have at our disposal…”

The subject properties and violations are: 72 White Horse Drive, RV parking not in correct location; 268 Windjammer Road, no permit for a color change; 52 Nottingham Lane, no permit for trees removed; 164 Nottingham Lane, fence placement; 10 Footbridge Trail, placement of an unauthorized driveway; 16 Footbridge Trail, maintenance; 47 Nottingham Lane, unregistered or junk vehicle; 41 Cannon Drive, no permit for a shed and no permit for a storage structure; 506 Ocean Parkway, vehicle parking; and 66 Wood Duck Drive, an attachment to the bulkhead.

Director Stuart Lakernick pushed for publicizing the information about the continuing violations of the subject properties and wanted to know if the names of the property owners will be published. “Is this being published somewhere? Is this going to be on our Website?” He said publishing the names is something for the OPA to consider also.

Horn responded that has not been considered by the operations team to post the names of the owners but the property addresses have been publicized.

OPA President Doug Parks said he would refer that issue to legal counsel “to make sure we don’t have any privacy matters.” He said identifying the address of the properties is good enough for now. He said he doesn’t know that adding the name would do anything to enhance the enforcement process and could put the association at risk.

“We are not [publishing] the names,” General Manager John Viola said, adding that a decision to do so would need to come from the Board as a policy matter.

Director Steve Jacobs supported the resolution to find the properties in continuing violation but wanted to know if there is a mechanism in place to restore their property owner rights once the violation is remedied. “They can then avail

themselves of the amenities and of voting rights assuming they remedy the violations that they’re cited for,” he said.

Parks said operations will manage that process and make sure that if a violation is remedied it will no longer be on the list and OPA members will have their rights reinstated.

Linda Martin, OPA senior executive office manager, said owners on the list who bring their property into compliance will be notified by the OPA membership office of their reinstatement.

Director Frank Daly supported the resolution but was doubtful it would be very effective. “If you let your house turn into a dump I could argue that you’re not really going to care about using the pool or voting,” he said.

He said homeowners associations really exist for two reasons. “Number one is to protect the homeowner value. And Number two is to protect the community lifestyle values, which include safety.” He said most property owners when notified of a violation will comply quickly, but there is a small percentage that will not do so regardless of the pressure from the association.

In the absence of the ability to fine property owners for violations, Daly supported taking this step that is available to the Board. “It’s a step that we should take and see how it works out.” He also suggested more aggressive action from legal counsel.

He noted that there are five sections in Ocean Pines where the Board could vote by a majority of four directors to issue fines for violations. “That may be something for consideration in the future,” he said, but added that in those newer sections of the community there aren’t as many violations as in older sections.

Parks agreed with Daly “that if you’re at a certain level of disarray, you probably don’t care that you can’t use the amenities and you can’t vote.”

He said he was in favor of suspending the rights of the properties presented to the Board at the May 20 meeting. However, he wondered how additional properties that fall into violation will

be addressed.

“Will we have to have a motion every month? Compile this list and then every month or every time we get a number of violations have this same process at a Board meeting?” he asked.

He suggested investigating a way to operationalize the process for future continuing violations so the Board doesn’t have to address it every month.

However, Horn pointed out that the authority to stop membership rights rests with the Board. “So the Board would have to make an affirmative decision to do that,” she said.

For the subject violations, the Board can place blanket restrictions on all of them because they occurred prior to the passage of state law requiring an appeals process. Horn said for future violations, property owners have right of appeal before these restrictions can take place.

Horn said the Architectural Review Committee and CPI believe approving this request will shorten the timeline to compliance, save the association money and provide a better forum for property owners to work out their problem as opposed to the Worcester County Court System.

“This motion requests that the Board use their authority to force compliance by placing restrictions on the property rights of individuals in continuing violation,” she said.

All violations were reviewed as of the date of the Board meeting and all remained open. All but two of the violations represent the cases forwarded to the attorney in 2022. This action does not mean that property owners who fail to comply during this period may not be forwarded to the attorney if it remains necessary to force compliance.

Horn said ARC has previously brought to the Board’s attention the need to use interim enforcement tools currently available to help reduce legal costs and to try to prevent property owners from having to become involved with the county courts. The Board has responded positively by imposing restrictions on numerous properties.

Parks working on Janasek request for better cell phone reception

Ocean Pines President Doug Parks during remarks at the May 20 Board of Directors meeting said that he is investigating ways to improve cell phone coverage in Ocean Pines. He referenced a request from former OPA Director Tom Janasek at the April 15 Board meeting.

“I’ve started that process and John and I have been reaching out to Verizon, [and] there’s some logistics and things that we’re coordinating. Whether or not we will get a new cell tower, I can’t guarantee that,” Parks said. “I will share updates on the issue when they are provided.”

The Progress has learned that one possibility is to mount additional equipment on Ocean Pines’ water towers located both north and south of Route 90.

That option would require the approval of Worcester County officials, as the water towers are part of the Ocean Pines Water and Wastewater district owned and managed by the county.

June 2023 Ocean Pines PROGRESS 31 OCEAN PINES

Parks optimistic that grants for Jenkins Point will be forthcoming

Says estimated $7 million price tag could be adjusted depending on design factors, but that Coastal Bays Program officials would not have mentioned a sizeable contribution to the project if it were not at least somewhat plausible

Following a Town Hall meeting

May 15, Ocean Pines Association President Doug Parks says he’s optimistic that federal funding for the Jenkins Point island restoration project will be forthcoming.

The project, currently in a design phase by Underwood and Association of Annapolis, is intended to restore badly eroded island remnants off the Osprey Point townhomes, near the entrance to the Ocean Pines Yacht Club harbor and in close proximity to Pines Point Marina.

If it’s built, in a joint effort involving the OPA and the Maryland Coastal Bays Program, the restored Jenkins Point would serve as a protective buffer during storm events while providing natural habitat for a variety of local wildlife, from shorebirds, crabs, turtles and other native species.

Restoring Jenkins Point has been an objective of the OPA’s Environment and Natural Assets Advisory Committee for years, but has always seemed out of reach because of a lack of funds.

Parks, the committee’s Board of Directors liaison, said his optimism for federal funding for the estimated $7 million project is based on the fact that the Maryland Coastal Bays Program has a long history of working successfully with the OPA and delivering on grant requests.

The most recent cooperative venture between Coastal Bays and the OPA was the Bainbridge Park Pond restoration, for which the OPA received $570,000 in state grant money.

That was less than the original request of $1.4 million from the state of Maryland, but still evidence of fund-raising prowess, Parks said.

In the case of Jenkins Point, the Coastal Bays program has already received $62,000 in design and per-

mitting money from the state’s Department of Natural Resources.

The grant enabled contracting with Underwood and Associates, an Annapolis, Md., environmental restoration firm, for the design work.

Parks said he doesn’t believe that Coastal Bays Program executives would have mentioned the potential of a $7 million grant if there wasn’t at least some plausible chance of getting it.

“They wouldn’t have come forward like they did unless there was some availability of federal assistance,” Parks said. “It would be embarrassing to over-promise and get hopes up.”

Even so, he conceded that $7 million might be somewhat of a “place-holder amount, an indica-

tion that it’s not a project that a $250,000grant could come close to paying for.”

He said the project could come in for less, and that there’s flexibility in the design in the event the full $7 million does not become available in 2024 as is hoped.

Parks said that he believes the project will also be in the running for state funding, as well.

During the town hall, Underwood and Associates managing partner Chris Becraft said that Jenkins Point is “exactly” what DNR’s Resiliency Through Restoration Initiative “likes to fund.”

Parks said that Coastal Bays will do the grant writing and follow-up solicitation for the project on behalf of the OPA.

Jenkins Point, though situated in the bay, is considered to be part of the OPA’s common area, presumably because of its close proximity to the Yacht Club harbor

Becraft said the island remnants would be fortified with buried boulders and gravel, while the open water between the islands would be partially filled with gravel and sand sourced locally.

The built-up islands would be capable of supporting native grasses and, perhaps, pine trees. Sand dunes could eventually form on the restored islands.

Parks said he had been hopeful that spoil dredged from Ocean Pines canals could be used in the restoration, but he said he’s been told that it’s not possible.

“It’s the wrong material for what they have in mind,” Parks said.

Becraft said oyster beds could be added at some point and that kayakers would be able to land on the islands because of their gentle slope.

He said the design is modeled after a similar project his company oversaw about four years ago on the mainland west of Assateague Island near the bridge.

If all goes well on the fund-raising side, Becraft said that restoration work could begin as soon as December 2004, depending of course on the available of funding.

Parks urges residents to adhere to pedestrian, bike safety rules

Ocean Pines Association President Doug Parks underscored recent pedestrian and bicycle safety messaging during an the monthly Board of Directors meeting on May 20.

In his opening President’s Remarks, he read through a recent Ocean Pines communication that he said was important “in light of the tragedy that happened a couple of weeks ago when a pedestrian was struck by a vehicle and killed” on Ocean Parkway.

“It has to do with people walking on the streets [and] the direction they’re supposed to be walking in,” Parks said.

According to Maryland code, “Where a sidewalk is not provided, pedestrians must walk on the left shoulder or the left side of a roadway, facing any traffic that might approach from the opposite direction. Walking on the opposite side is a violation of Maryland Transportation Code 21-506b, and violators are subject to a $50 fine.

“The idea is that we see a lot of people walking,

especially on Ocean Parkway, with their back to the traffic,” Parks said. “I think this is something that people should be aware of and try to practice more often.”

Parks said it was probably not practical for the Association to fine violators, but he added, “that education and knowledge is important, and those rules are for the public’s safety.”

Actually the OPA has no authority to levy fines. The Ocean Pines Police Department has never enforced the state code with respect to bicycles and pedestrians.

On the subject of bicycle riders, Parks referenced another section of Maryland code states riders cannot wear headphones or ear plugs in both ears because “they cannot hear the traffic.”

“Just be aware of those kinds of things,” Parks said. “A little bit of practice, a little bit of encouragement, maybe you mention it to a friend ... there are some laws out there for the safety of people either on bicycles or walking on crowded parkways.”

32 Ocean Pines PROGRESS June 2023 OCEANPINES black and white
Tragic death on Ocean Parkway prompts OPA president to comment

New Marina fuel dock reopens for Memorial Day weekend

The new fuel dock at the Ocean Pines Marina reopened on Friday, May 26, after a complete replacement and just in time for the Memorial Day weekend.

Dockmaster Ron Fisher said the entire C-dock was replaced with an aluminum structure that includes a new gas dock building and new gas pumps.

The replacement was mandated by new state environmental regulations.

“It’s been a process, because we wanted to be certain that we complied with all the new regulations as they pertain to the gas lines, electrical, everything,” Fisher said. “The piping that’s going out there right now meets the new standards, so it’s pretty much leak proof. The wiring is explosive-proof wiring when you get up close to the gas dock. So, if there’s any fumes from gas pumps, it won’t ignite.”

Fisher said the new pedestals at

1,445

each boat slip are also meet state regulations.

“The other nice thing is they have hose hangers for the boaters as well,” he said.

Fisher said he expects to have a strong season at the marina.

“I think we’ll be good,” he said. “We finished staff training today (Thursday) on the new fuel management system, which is very accurate, and it eliminates a lot of manual work.”

He said they also added new fishing tackle at the marina shop, which is adjacent to the Yacht Club.

Ocean Pines General Manager John Viola said improving overall safety near the fuel lines was always his main concern.

“What they’ve done in terms of safety has been incredible, and we believe the new C-dock will also require less maintenance and have a longer useful life,” Viola said. “I’m also very happy that the contractors and the team were able to get this done in time for Memorial Day weekend. We’re excited for a big season at the marina!”

The Ocean Pines Marina is open daily, 8 a.m. to 5 p.m.

June 2023 Ocean Pines PROGRESS 33 OCEAN PINES
Before and after pictures of the new fuel dock at the Yacht Club Marina, which reopened for business just in time for the Memorial Day weekend.

Viola updates Board on season preparations

The Ocean Pines Association has been busy prepping for the busy summer season. At the May 20 monthly meeting, General Manager John Viola provided an update to the Board of Directors on golf course operations, marina preparations, and amenity improvements.

Golf course

Viola said business has picked up at the golf course and is on track to surplus revenue from last year. At the May 20 meeting, he said the golf course had 258 rounds the previous day versus 226 rounds last year on the same date.

“We did almost $20,000 in revenue yesterday compared to $16,000 last year,” he said, and added that the pro shop had $2,500 in sales as compared to $400 last year. “Golf numbers are excellent,” he said.

The OPA received 76 new golf carts that were purchased from Yamaha for $260,908. “They look great,” Viola said, adding that the association placed its order early to ensure the golf carts arrived in time for the summer season.

Public works crews are renovating the iconic golf course gazebo, including replacing the roof. Viola estimated completion in two weeks at a cost of about $1,000.

Marina showers

In response to comments from the property owner during the Board’s April meeting, the OPA made improvements to the showers at the Yacht Club marina. The OPA member said only one of three showers at the amenity was operational.

“When she said there was only one shower I didn’t understand that but she was correct,” Viola said during the May meeting. He said one shower was working, one was broken, and one was being used for storage.

He said the situation was addressed and all three showers are now operational. “All that’s been taken care of. We’ve upgraded the showers.”

Palm trees

The annual addition of palm trees at the Beach Club each summer is something residents look forward to, Viola said. “I know this is a big one. Everybody’s asking about the palm trees,” he said.

He announced during the Board meeting that the palm trees have been installed at the Beach Club and were added to the North Gate this year as well.

“Everybody complements on it,” Viola said, adding that he feels like “I’m in Jamaica or somewhere in the Caribbean but it’s great.”

NorthStar software

Integration of the NorthStar software with other systems used by the OPA is nearing completion. Viola said a representative from the firm was on site April 27 and 28 to work with the OPA on the final implementation. He added that Northsatar now has key personnel located on the East Coast, making access to them easier.

Viola said one of the last pieces of the software transition is the integration of the EZ Links reservation system used at the golf course with the Northstar system. He said that will be completed by FY 2.4

“This is big,” he said, adding that operational efficiencies will be recognized as a result of the integration. “This is last piece I need.”

He said Northstar integration with the system in place at the racquet sports center will also allow members to check in using swipe cards. They will also be able to set up online reservations for new classes, leagues, and court use.

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Long-awaited Yamaha golf carts recently arrived at the Ocean Pines golf course. Public Works is refurbishing the iconic golf course gazebo.

Strategic planning

Linda Martin, OPA senior executive office manager, said she met on April 13 with representatives from the Strategic Planning Committee Bernie McGorry and John Lynch to review and update the strategic plan. She said the group made minor edits to the strategic goals that included highlighting the outcomes of each goal.

Martin said the team continues to be on track with strategic plan that was approved on Oct. 31. “We continue to reference the plan as we address initiatives, objectives, and our day to day operations,” she said.

Viola chimed in to agree. “We use it. We update it.” He said staff looks at the results of initiatives to see how they compare with the strategic plan and to make course corrections.

Recreation events

Debbie Donahue, OPA recreation and parks director, said the department had two successful events in early May, Bay Day and Bike Day. Bay Day was held on May 7 in partnership with the Maryland Coastal Bays Program. “This year another great success,” she said, adding that about 1,000 people attended. “It was a great day. We do that every single year with Maryland Coastal Bays and its always a success,” she said. Bike Day was held May 13 but was dampened by rain. While there were 75 registered participants, only 33 riders turned out because of the weather. Bicyclists rode a seven-mile course that started and finished at the clubhouse, and a social event was held after the ride.

Patti Stevens, representing the Worcester County Bike and Pedestrian Coalition, handed out pamphlets on bike safety, and helped map out the course.

Viola added that the OPA is also working with Stevens on other bicycling events. He said a work group that includes Stevens and Bob Beckelman, OPA golf pro, has assembled to study the potential for holding a bicycling event on the golf course.

Dashboard activity

The Compliance, Permits, and Inspections office started April 2023 with 156 outstanding violations and processed and additional 20 violations during the month. CPI was able to close out 34 violations, leaving 142 outstanding at the end of the month. Of those cases 50 are being addressed by legal counsel.

Public Works started April with 95 open work orders and received 80 new work orders during the month, including 4 for bulkheads, 21 for drainage, 17 for grounds and landscaping, 7 for roads, 4 signs, and 27 for general maintenance. During the month, crews closed out 69 works orders, leaving 106 open, with most of those being for drainage.

On the customer service side of operations, the OPA received 108 contacts from residents during the month of April via email at info@oceanpines.org or phone calls. Of those calls, 21 were related to amenities, 10 for Compliance, Permits, and Inspections violations, 60 general information, and 16 for Public Works.

Viola says some pools will have reduced hours

Lifeguard shortage once again to affect schedule in June, with fewer closures in July and first half of August

Despite extensive efforts to expand the candidate pool, the Ocean Pines Association is short on lifeguards for its swimming pools again this summer. That may mean swimmers will experience periodic closures and varying hours at the pools.

“No different than last year, we are short on lifeguards,” General Manager John Viola told the Board of Directors during the Board’s May 20 monthly meeting. He said the OPA will have “probably the same game plan as last year” and summer pool hours are likely to be limited as the lifeguard shortage continues.

The OPA will announce the pool schedule in advance and has already started posting the hours. The pool schedules are likely to be similar to the rotating hours announced last year, Viola said the association will announce the Monday through Sunday operating hours in advance on the previous Friday. Announcements will be posted on the front door of each aquatics facility and advertised on the OPA website, Facebook and weekly email news.

The association is still trying to attract and hire more lifeguards. He said a help wanted advertisement will be posted in local newspapers for the next 30 days.

Last year, Viola admitted the OPA didn’t inform members and residents early in the season that there could be periodic closures and limited hours are some of the pools.

“We did that from the very beginning this year,” Viol said. This season, he said the association notified everyone early and publicized that there is a likelihood of limited hours. He said that information was even included on the aquatics membership applications.

In response to public comments about the number of days the pools were closed during the 2022 season, Viola researched the amenities calendar. He said he looked at calendar on a day by day basic to see when the pools were open and when they were closed.

He found that from July 1 to Aug. 15, the Yacht Club and Beach Club pools were always open. There were a few days when the Sports Core pool was closed, but throughout the year that pool was “pretty much open,” he said.

The Mumford’s and Swim and Racquet Club pools were the most likely to have experienced closures, but Viola said from July 1 to Aug. 15 those pools were also open. “That’s the season. Open,” he said, but admitted that they were frequently closed during the month of June. “They key times we’ve been able to keep them open.”

Viola said the association will continue to seek the staff necessary to keep all of the pools in operation. “We’re trying all different ways to recruit lifeguards…”

Those recruitment tools include increasing compensation for lifeguards and paying for their training, outreach from aquatics staff, advertising in local newspapers, placing help wanted ads, press releases, participating in job fairs, TV news, and the OPA website and social media postings.

Although rain dampened the number of bikers, May 7 Bike Day attracted 33 of the 75 registered participants.

Viola also announced that four of the association’s pools were recognized for the safety track record by the Worcester County Health Department. He said the Mumfords Landing, Yacht Club, Swim and Racquet Club, and Sports Core pools all received a certificate in excellence in pool operation from the county agency in recognition of a spotless safety record.

The Beach Club, the one pool that didn’t receive the recognition, had a problem with its 911 access being down for a short period of time, Viola said. That has since been addressed.

June 2023 Ocean Pines PROGRESS 35 OCEAN PINES

Johnson works with volunteers in offering free racquet lessons

Tim Johnson, the Ocean Pines Association’s new racquet sports manager, recently had to park out by the road when arriving for work at the Manklin Creek racquet sport complex. “That’s awesome because that means people are there,” he said.

Johnson, who started in his role as racquet sports manager in midApril, has been busy working with volunteers to provide free introductory lessons and clinics to help attract new members to the variety of racquet sports available at the center.

“I think the results are in. People are joining. They’re having a lot of fun. I’m happy with that,” Johnson said during the May 20 Board of Directors’ meeting.

General Manager John Viola is happy, too.

“His numbers are there. They’re up. We’re getting people,” he said.

Johnson’s decision to work closely with volunteers seems to have defused a sticky situation that surfaced at the May Board of Directors meeting, when members of the racquet sports community and particularly platform tennis players showed up en masse to complain of an apparent

decision by OPA management to do away with free introductory classes for prospective members.

Instead, OPA General Manager John Viola and staff decided to hold two free group clinics with Johnson.

The newly hired manager, with certifications in two of the three racquets sports in Ocean Pines and a third pending, invited members who had volunteered previously to assist him in the clinics.

“I’ve gotten good feedback from members,” Viola told the Progress in a recent text message.

Debbie Donahue, OPA recreation and parks director, confirmed that there has been an increase in membership for many of the racquet sports, and credited that increase to the work of Johnson and volunteers to attract new players.

Currently platform tennis has 62 memberships, with ten new members joining between April 22 and May 19, Donahue said.

Tennis has 51 members, 6 of whom are brand new members, and pickleball has 307 members, 34 of whom are new, she said.

“We are getting a lot of new memberships from people that have not been members before,” Donahue said, adding “We are getting brand new people which is awesome.”

She said racquet sports combination membership are increasing too. So far this year, the OPA has sold 36 combination memberships, including 6 new ones, as compared to 26 for all of last year.

Some new combination members transferred from individual sports to combination so they can all three racquet sports.

“I want to focus on the programming that we’re doing over there,” Johnson said.

In April he held a spec tennis clinic that attracted 17 participants, nine of whom were new, and the majority of those participants purchased a new membership or upgraded their existing sports membership to include additional racquet sports.

He is also hosting a series of classes to integrate those new members into the spec tennis community and offering them free time with him until the end of May.

May was National Tennis Month so Johnson offered free clinics for juniors and adults to encourage them to try the sport as well. The clinics drew 17 juniors and 9 adult participants.

“We got memberships from that as well,” he said.

For the pickleball community,

Johnson said he has been offering instructional classes and has seen 25 new players every week. “That’s going gangbusters,” he said.

Johnson said he has not yet held any activities for platform tennis yet, but that is because it’s the off season for that sport.

“They like to play in the snow,” he said of platform tennis members.

That’s also the only sport Johnson is not certified to teach in yet. He said he plans to acquire that certification so he will be prepared for more platform play.

He also said he wants to add new activities like league play, tournaments, socials, and fundraisers at the racquet center. “It’s going to be really active down there.”

During his general manager’s report, Viola also provided updates of various maintenance projects completed and under way at the racquet center, and tooted his own horn for many of the improvements.

He said the facilities are in much better condition than they were in 2009 before he took over as general manager.

“I think it looks way better than it did,” he said, and acknowledged the Board’s support in approving improvements to the racquet center over the years.

“We’ve done a lot of maintenance there,” Viola said of work to get the racquet sports center ready for the busy summer season.

Among those improvements, he listed the addition of an emergency alert detector, lighting alert detector, new ice machine, new tables and chairs in the lounge, painting the lounge and restrooms, new lighting in restrooms, storage areas being cleared out to make room for other uses, painting of chairs, and construction of a new shade structure.

Court maintenance is also scheduled, with contractors to repair cracks on the pickleball and platform tennis courts.

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Peck complains about election transparency

Former director criticizes Board for not ‘reining in’ Elections Committee

Amy Peck, former Ocean Pines Association director, once again blasted the Board of Directors for not reining in the Elections Committee. “After what happened at last year’s election I thought everyone was in agreement that Ocean Pines wanted transparency and the ability to trust the next election results,” she said during the Public Comments segment of the May 20 monthly Boardmeeting.

Instead the Elections Committee has been busy behind closed doors with no updates on its work during the last several months, she said. At that May 20 meeting the Board was set to consider a recommendation from the committee for a new election voting vendor and policy changes to accommodate the change, she said.

Peck said the Elections Committee is proposing to change election procedures and change and disregard Resolution M-06, the election rules for Ocean Pines. “They decided to do away with online voting so you must vote using paper. They want to change recount procedures. And now they want to change and use a company in Washington state to manage our votes,” she said, adding that is about as far away from Ocean Pines as you can get.

Peck said the committee alleges that the local contractor used in the past wasn’t interested in the job this time, but that contractor denied that claim in writing. [See article elsewhere in this

edition of the Progress for details of what Thom Gulyas of Ace Printing and Mailing said.}

For past elections when the OPA used a local vendor for mailing and counting the ballots, the OPA provided a drop box for people to use to submit ballots. Still, she said, there were still 290 late ballots that were not counted in 2021 162 in 2020.

“Obviously the dropbox in Ocean Pines that was available to property owners as late as Wednesday before the annual meeting will not be available if the ballots are to be mailed to Washington state,” she said. “Considering the recent problems that we’ve all had with the U.S. Post Office, can we trust that a mailed ballot is going to arrive okay and on time to Washington state?”

Actually, according to OPA Director Rick Farr, the dropbox at the police station will be retained, with ballots to be collected and sent periodically via FedX to the vendor in Washington state.

Peck said the community needs the transparency that the current Board promised.

“We need an election where every single property owner, multiple property owner, everyone who is eligible and wants to vote can, and owners have confidence that their vote will arrive in time to be counted and will be counted and recounted if necessary,” she said.

She added that the Board needs to follow the established election rules and not change them to fit what the committee wants to do.

“Under these new proposals we need to be able to trust our election process,” she concluded. Also during Public Comments, Bill Hayes spoke about the hazardous truck route from Beauchamp Road down St. Martins Lane into Ocean Pines. He said there are currently 11 divots in the side of the road on the incoming traffic side.

“I have been the benefactor of uncoupled trailers into my front yard. I have witnessed accidents …” he said. It creates a dangerous situation for bicyclists who could be hit by loose trailer doors or other items dislodged from vehicles traveling the bumpy road. “I would not ride a bike down that road,” he said, adding there is nothing on Beauchamp Road or within Ocean Pines to create safety for bicyclists or pedestrians.

He asked the OPA to contact Worcester County, which maintains Beauchamp Road, about the problem. Hayes also offered up his driveway for the Ocean Pines Police Department to sit and monitor traffic.

Janneil Bagley approached the Board asking for something to be done about neglected properties in the community, including one near her on Sandyhook Road. She said that property looks exactly the same as it did four years ago, containing cars with dead tags and flat tires. At one point a tree was growing out of the roof.

OPA President Doug Parks told Bagley to follow up with General Manager John Viola regarding the specific property near her home.

June 2023 Ocean Pines PROGRESS 37 OCEAN PINES
The Ocean Pines Association commissioned local artist Jim Adcock for this painting of the Yacht Club, which is mounted in the Administration Building’s Board room as part of the building’s refurbishment completed earlier this year. General Manager John Viola says Adcock is working on additional paintings for the OPA.

OPA finishes the year with a $1.15 million surplus Records

The Ocean Pines Association ended the 2022-23 fiscal year on April 30 with a $1.15 million operating surplus, the fifth con-

a $36,000 operating surplus for April

secutive year of a positive variance to budget and a far cry from the disastrous year of 2017-18, when the OPA recorded an historic $1.2 million operating deficit.

This year’s surplus was not as

bountiful as the equally historic of $1.98 million surplus recorded in fiscal year 2021-22, but it nonetheless was evidence of a homeowners association in robust financial health.

This year’s results were virtually the same as the operating surplus of $1.15 million in 2020-21, the year the OPA received $1.43 million in payroll protection plan funds related to the covid pandemic.

By way of comparison, the operating surplus in 2019-2020 was $572,000, and in 2018-2019 the OPA eked out a surplus of $143,700.

The OPA ended 2022-23 on a positive note, recording a $36,130 positive operating fund variance in April, the final month of the 2022-23 fiscal year. Revenues were over budget by $54,405,and total expenses were over budget by $18,275.

For the year, the unaudited operating fund variance is $1,150,814, with revenues over budget by $1,069,884 and expenses under budget by $80,930.

OPA General Manager John Viola has attributed the operating fund surplus mostly to organic growth and revenue increases in the amenities, all of which were in the black for the year except for tennis and platform tennis, offset by a net positive for pickleball.

The April financials are subject to revision during the annual audit process, but in recent years the adjustments in the final audit report from results reported in the April financials have been minor.

According to the monthly recap issued by Controller and Director of Finance Steve Phillips, for the year beach parking remains the top performer, with a net surplus of $527,770. Golf operations are next with a $319,594 net, followed by marina operations (+$229,856), the Beach Club (+$205,096), the Yacht Club (+$188,979), and aquatics (+$70,576).

Pickleball’s net surplus for the year is $51,203 followed by the Clubhouse Grille’s $46,751.

Tennis lost $38,173, and platform tennis lost $6,672.

Amenity performance is also measured against the budget, and here golf operations are the stellar performer with a $267,202 positive variance to budget for the year.

Next is aquatics,with a $127,863 positive variance for the year, followed by the Yacht Club (+$84,568), the Beach Club (+$81,212), marinas (+$24,759), beach parking (+$19,810), pickleball (+$19,695), and platform tennis (+$7,574).

The Clubhouse Grille has a $16,155 and tennis a $1,796 negative variance for the year.

For the month of April, golf operations, the Clubhouse Grille and

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beach parking were in the black, while other amenity departments were in the red, not atypical for April.

The Parks and Recreation Department outperformed its budget for the year, with a positive variance of $63,466 through the end of March.

The department, which is funded by annual lot assessments and class and program fees, recorded a negative variance to budget in April (-$29,496).

Reserve summary -- The April 30 reserve summary indicated that the OPA concluded the fiscal year with $6.691 million, down from $7.067 million in March, $7.62 million in February, $7.9 million in January, $8.254 million in December and $8.814 million in November.

The replacement reserve balance at the end of April was $5.154 million, with bulkheads and waterways at $523,223, roads at $715,176, drainage at $184,688, and new capital at $114,084.

Balance Sheet -- The OPA’s balance sheet as of April 30 shows total assets of $46,383,113, up from $44,855,857 at the same time in 2022.

OPA cash position improves to $17.7 million on April 30

The Ocean Pines Association’s cash position improved in April over March and year-over-year, OPA Treasurer and Director Monica Rakowski reported during the May 20 Board of Directors meeting.

As of April 30, the end of the 2022-23 fiscal year, the OPA had about $17.7 million in cash on hand, which was about $300,000 more than April 30 of last year and an increase of about $3.3 million from March of 2023.

Rakowski reported that $9.1 million is invested in CDARs, with the remaining $8.6 million in an insured cash sweep, money market and operating accounts, diversified between two local banks.

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June 2023 Ocean Pines PROGRESS 39 OPA FINANCES OPA NET OPERATING RESULTS BY DEPARTMENT - APRIL 2023
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A step toward a drama-free OPA election

The decision by the Board of Directors to offload the entire election process to a national firm based near Seattle, Washington, might seem on first blush to be an overly bold move, one that carries risk for the Ocean Pines Association. But seen through a dispassionate lens, the risk is minimal. The Elections Committee recommended it, after investigating the options among national firms, when attempts to secure another deal with a long-term local vendor failed to produce a bid proposal.

Vacating a long-term productive relationship with a local business is never pleasant, and in this instance seems to have been the result of a misunderstanding or miscommunication between the vendor, Ace Printing and Mailing of Berlin, and the committee. Elsewhere in this edition, Ace Printing proprietor Thom Gulyas and committee member George Alston give their versions of what happened, or perhaps more accurately, what didn’t happen.

These narratives were not fundamentally in conflict with one another. Gulyas not to submit a bid by the March 31 deadline because he felt he didn’t have enough information to submit an accurate bid. That was his call to make, and he has paid a price for it. Losing a long-time client has to hurt.

When a proposal from Gulyas was not forthcoming, the committee acted as it should have in seeking alternative proposals.

Criticism of the committee for acting is unfair and irrational, which of course doesn’t prevent a certain contingent of OPA members, including Board members, from indulging in it.

What went down was unfortunate, yes, but for the OPA there is a silver lining.

There are advantages to be had with this Washington state vendor. It can handle all aspects of an OPA election, from printing and mailing ballots, to receiving them and counting them. When the OPA decides to return to a hybrid system of paper ballots and on-line voting -it’s in the works for the summer of 2023 -- it can all be done under one roof by a single vendor. No hands-on involvement by volunteer committee members is needed to facilitate it.

The hiring of Election Trust LLC to handle this summer’s election removes the counting of ballots from volunteers and politics, a process that has been fraught with difficulty in recent years, culminating in the absolute disaster of an election last year, for reasons that needn’t be recounted here. Even before last summer, though, there were elements in the community that wondered if official election results were accurate, depending on whether one’s favored candidate won or lost.

By contracting with an outside firm on the other coast to handle the mailing, processing and counting of ballots, there should be no or little concern about the accuracy of the count.

Moreover, with state-of-the-art, automated opening of ballot envelopes, and an equally automated process of tracking and counting of ballots, the results of the election should be known very soon on the day of the count.

Not to be overemphasized is that the primary defect in last summer’s election, the failure to send one ballot for each and every lot in Ocean Pines, will be remedied. This will have occurred regardless of which vendor the OPA hired to handle the details.

The Elections Committee through a Zoom link will witness the process through which Election Trust LLC opens ballot envelopes, separates the outer envelope from the ballot inside, and then counts them. Any association member who wants to do so will be able to witness the count. It shouldn’t take long.

True, Board resolution M-06 as written requires the Elections Committee to do the count; it will have to be revised to allow the committee to witness the count remotely. Easily done. The OPA’s new attorney, Bruce Bright, is already working on the language. It will be presented at the Board’s June meeting and no doubt will be approved. It won’t be the first time that M-06 has been revised to adjust to a new reality. It was done last year to accommodate the hybrid system of voting approved by last year’s Board.

Critics of the change to Election Trust LLC are bemoaning the fact that ballots will have to be mailed across country to be counted, and quite often the further the mail has to move the longer it takes for it to arrive at an intended desti-

nation. The good news is that OPA elections are not conducted over the Christmas season, when the slow-mail or no-mail phenomenon is a menace to us all.

For those who don’t trust the mail this summer, there will remain the option of dropping off ballots to the traditional dropbox in the lobby of the Administration building/police station. Then the OPA periodically will FedX the ballots to Election Trust, with delivery possible the following day.

True, roughly half of the OPA membership has primary residences elsewhere, but OPA elections are conducted during the season when these part-time seasonal residents are most likely to be in Ocean Pines.

The dropbox option will remain a good one for OPA members worried about the mail. For others, it shouldn’t be too difficult to drop ballots in the mail a little sooner than usual to accommodate travel time to Washington state.

An even better solution will be a return to a hybrid system of paper ballots and on-line voting, which Election Trust LLC is fully capable of handling. On-line voting avoids potential problems with the mail altogether, and sends a voter’s ballot preferences instantaneously to the vendor for counting.

That could have been done this year, and an argument could be made that it should have been. But the Elections Committee previously had recommended and the Board had already made the decision to go with paper ballots only

40 Ocean Pines PROGRESS June 2023 OPINION COMMENTARY
u
Rick Menard

Another go at imposing fines on CPI violators

In a discussion that seems to rear its head every few years, the Board of Directors at its May 20 meeting pondered the possibility of imposing fines on property owners accused of violating the restrictive covenants and the rules and guidelines consistent with them.

It turns out that newer sections in Ocean Pines already contain that authority, and the Board adopted a procedure that would allow the Architectural Review Committee and Compliance, Permits and Inspections Department to act on that authority in sections that expressly allow it.

The motion to do so was offered on behalf of the ARC by its Board liaison, Director Colette Horn.

It’s not particularly controversial and arguably only needed in the rarest of occasions. As noted by Director Frank Daly, for whatever reasons these newer sections of Ocean Pines have fewer compliance issues than older “legacy” sections of Ocean Pines whose DRs do not permit the levying of fines.

Director Steve Jacobs during Board discussion of the Horn motion suggested that the OPA’s new attorney, Bruce Bright, research the question of whether the DRs silence on the issue of fines in the older residential sections of Ocean Pines is defacto acquiescence.

Commentary

From Page 36

LIFE IN THE PINES

An excursion through the curious by-ways and cul-de-sacs of Worcester County’s most densely populated community

In sum, Jacobs seems to be of the opinion that it’s possible that the OPA has the power to levy fines in older sections of Ocean Pines despite legal advice over the decades that it does not.

That notion is fanciful. If not expressly given in the DRs, the power does not exist.

Attorneys that preceded Bruce Bright, Joe Moore and more recently Jeremy Tucker, have said as much.

Most directors over the directors have adhered to that advice. When a Board majority thinks it knows better, and deviates from the letter of the OPA governing documents, the result is catastrophic and expensive.

And embarrassing.

Bruce Bright knows this. He has taught this very lesson to the OPA in a number of cases in recent years, when he was opposing counsel.

There is exactly zero chance that the OPA’s newly appointed general counsel will decide this question differently than Moore and Tucker.

His mission as legal counsel includes trying his best to keep the

this year. It is defensible to suggest that it’s better to see how well the vendor handles paper ballots this year before adding e-voting to the mix next summer.

Soon enough, though, on-line voting will be the way a growing number of OPA members cast their ballots in annual Board elections. According to Elections Committee Chairman Tom Piatti, Election Trust can verify the number of lots whose owners participate in the election and can verify that a particular owner cast a ballot. This isn’t exactly a paper trail, which is what some say is the only way a recount of an election can be effected, but it’s close enough.

In Ocean Pines’ 50-plus-year history, there never has been a request for a recount. The odds of one occurring anytime soon is remote.

The lack of the ability to produce a paper trail was a criticism the committee made of the vendor that handled last summer’s e-voting. It was the pretext for the previously recommendation not to do e-voting this year.

As for Election Trust, the committee was silent as to whether this summer’s election could be hybrid of paper ballots and on-line voting. Piatti told the Progress

OPA out of court in the pursuit of dubious legal theories, which recent Boards have pursued with reckless abandon costing OPA members tens of thousands in wasted resources.

Attempting to impose fines on alleged violators when the DRs don’t expressly permit it is a prescription for lawsuits.

Lawsuits that the OPA would assuredly lose.

You’d think with the most recent legal fiasco that the OPA lost in court -- the Janasek case -- that the powers that be, or would like to be, would realize that the Board needs to be exceedingly careful not to arrogate to itself powers that do not exist.

Should the Board want to pursue the imposition of fines on OPA members who are determined by vote of the Board to be in non-compliance with OPA’s governing documents, including the DRs, the only way to do so is to go through the cumbersome, time-consuming and tedious process of amending the DRs in each of the legacy sections.

Good luck with that one.

An effort to amend the DRs to give

recently he and the committee could live with whatever decision the Board opted to make.

With no committee recommendation, the Board took the path of least resistance and simply ratified without discussion its previous decision to go with paper ballots only this summer.

The motion the Board approved actually was for Election’s Trust bid including hybrid voting, but the difference between paper only and hybrid voting is only $2,000, a rounding error in a budget of $16 million.

Staying with paper ballots this summer is not a huge deal, either way, pearl clutchers among us notwithstanding.

Summer of 2024 will be upon us soon enough, and the Elections Committee, with the help of the OPA’s public relations professionals and Communications Advisory Committee, can do a full court press well in advance of the 2024 Election advocating for the virtues of on-line voting.

Chief among them is avoiding cross country slow mail and saving on return postage.

But that’s a year away.

What the Elections Committee and the Board has done for now is to take an important step toward a drama-free election this summer.

We should all hope that’s the result. --

the OPA the authority to levy fines on those who violate county and OPA rules on short-term rentals has effectively foundered because a Board majority opposes the effort.

OPA President Doug Parks is a skeptic, suggesting that section-by-section voting risks producing a patch-quilt of competing rules in adjacent sections, making it onerous to administer.

It’s difficult to imagine a new Board majority emerging that would go even further than that failed effort, expanding the authority to impose fines on alleged misdeeds that far exceed infractions of short-term rental rules.

A proponent of expanding the OPA’s authority to impose fines, Colette Horn, is retiring from the Board in August. Another proponent of fines in the context of shortterm rentals, Frank Daly, has announced his intention to resign from the Board as soon as he and his wife close on a new home in Florida.

Perhaps Steve Jacobs will become a proponent of amending the DRs once Bruce Bright shuts the door on a dubious legal theory that suggests that silence on a particular issue amounts to acquiescence.

Or perhaps Jacobs will decide that spending his three years on the Board tilting at windmills is not the best use of his time. One can hope.

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

June 2023 Ocean Pines PROGRESS 41 OPINION
PUBLISHER-EDITOR Tom Stauss stausstom@gmail.com 443-359-7527 ADVERTISING SALES Frank Bottone frankbottone@gmail.com 410-430-3660 CONTRIBUTING WRITER Rota Knott 443-880-3953
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CURRENTS

Aqua Virginia asks for dismissal of Birckhead et al litigation

Utility contends that plaintiffs filed their case in the wrong venue, presented unsupported claims, lacked standing to sue and failed to file within statute of limitations

An Accomack County Circuit Court judge earlier this year told the plaintiffs in Birckhead, et al vs. CCG Note and CCGYC that because their suit raised issues about Captain’s Cove water and wastewater treatment system, they needed to amend their complaint to include Aqua Virginia as a defendant.

An alternative suggested by the Court was to drop claims associated with Aqua. The plaintiffs were not prepared to drop those claims, and as a result Aqua was added as a defendant in an amended complaint.

Aqua owns the water and wastewater treatment system that serves Captain’s Cove.

Aqua in turn has filed a response that suggests that the utility believes it was improperly named as a defendant.

John K. Byrum Jr, a lawyer with the Richmond, Va., Woods Rogers Vandeventer Black law firm, on May 10 filed a motion to dismiss, which applies only to Aqua’s involvement in the case, on several grounds.

Bryum in his motion contends that the Birckhead plaintiffs filed their case in the wrong venue, presented unsupported claims in its complaint (demurrer), and failed to file its case within the statute of limitations provided in Virginia law.

In addition to Teresa Birckhead, the plaintiffs include Captain’s Cove Golf and Yacht Club members Jim Hayes, William Leslie, Barry Magrogan, Joyce Platterspiel, Linda Reece, and Tom Reidy.

The plaintiffs are asking the Court to enjoin CCG Note from utilizing Aqua Virginia’s water system to provide fresh water and wastewater treatment services to the Hastings/Mariner townhome project, adjacent to the back entrance into Captain’s Cove, which CCG Note is in the process of developing. CCG Note is Captain’s Cove declarant/developer.

The plaintiffs contend that Aqua Virginia lacks the capacity to provide such services to CCG Note, the developers of the townhome project. Aqua Virginia officials have said that such capacity is available and that they are permitted to extend these services outside the boundaries of Captain’s Cove.

The plaintiffs are asking the Court to enjoin Aqua “from using numbered lots within Captain’s Cove in the operation of its sewer system,” a reference to the possible use of about four acres acquired by Aqua from CCGYC for rapid infiltration basins, or RIBs. The purchase price for lots within that four acres was $175,000.

The need for the RIBs in parts of Sections 14 and 15 could be a decade or more in the future.

With the respect to the argument that the plaintiff filed its claim in the wrong venue, Byrum argues that the plaintiffs should have filed its objections to the RIB property sale with the Virginia State Corporation Commission before filing in Accomack County Circuit Court.

“The SCC not only possesses primary jurisdiction but sole and exclusive subject matter jurisdiction to authorize the acquisition of, change of control of and the terms and conditions of service of an investor-owned water and/or wastewsater public service company like Aqua Virginia,” Byrum wrote, adding that the SSC approved the sale of the assets of the former Captain’s Cove Utility Company to Aqua on Aug. 4, 2015, including the RIB parcel.

He contended that “insofar as the amended complaint seeks to undo the conveyance of the RIB parcel authorized by the SSC ... and to enjoin Aqua Virginia from using the RIB parcel” to provide service the townhome project, Accomack County Circuit Court “lacks subject matter jurisdiction to hear such claims, the sole and exclusive jurisdiction of which” lies with the SSC.

He also argued that the plaintiff’s claims are

barred from “re-litigation” by technical legal doctrines.

Even if the Circuit Court has jurisdiction over the plaintiffs’ claims, Bryum contends that the claims failed to state “a cause of action upon which relief can be granted.”

Here he is making a demurrer argument, a pleading that challenges the sufficiency or adequacy of pleadings of the plaintiffs, a fairly standard legal tactic.

“To the extent that the amended complaint amounts to an attempt to belatedly appeal” the SSC’s approval of the RIB parcel conveyance, the lawyer contended that under Virginia SSC appeal rules the plaintiffs had 30 days after the SSC’s 2014 approval of asset conveyane to file a notice of appeal and 30 days after that to file an appeal petition with the Supreme Court of Virginia.

“Because plaintiffs did not present their appeal rights, they lack standing to challenge” the 2014 approval and “have waived claims against Aqua Virginia in this action.”

Similarly, Byrum aruges that the plaintiffs failed to timely file an appeal of the Department of Environmental Quality’s groundwater withdrawal permit, this time with the Circuit Court, within 30 days of filing a notice of appeal.

“Because the plaintiffs did not preserve their appeal rights, they lack standing to challenge the water permit now and have waived such challenged,” he writes, adding that to the extent the complaints allege a prospective future violationof the water permit, “plaintiffs likewise lack standing to enforce the water permit,” authority for which “lies solely in the State Water Control Board” and DEQ.

Byrum then goes on to to rebut the plaintiffs’ contention that the Declarations of Restrictions [known as the Declaration] precludes conveyance of the RIB parcel to Aqua as well as the easements necessary to provide utility service.

He cites Virginia law to the effect that utilities are given the right of eminent domain to acquire land for their business purposes.

At the same time, he argues that Virginia law mandates that a utility “is required to make a bonafide effort to purchase” the land at issue.

“Accordingly, the [Declaration] manifestly cannot preclude Aqua Virginia from exercising its statutory authority to acquire and use property” necessary to provide water and wastewater service to Captain’s Cove, he writes.

Byrum then completes his argument by contending that claims against Aqua “are barred by applicable statute of limitations.”

To Page 45

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Hearn says negative variance mostly attributable to legal expenses, dredge vandalism

CCGYC president defends manager salaries, says they’re not out of line for region, including nearby Maryland counties

Publisher

Captain’s Cove property owner association

President Tim Hearn confronted some hostile questioning during the Members Forum segment of the May 19 Operating Committee meeting.

Members contended that Captain’s Cove Golf and Yacht Club management needs to cut costs to deal with a $300,000 negative variance to budget so far this fiscal year. Members contended that CCGYC annual assessment is salaries are too high, that there are too many managers and that marketing expenses are too high and misdirected.

Another criticism offered is that the annual lot dues in the Cove are too high and rising too fast.

At one point during the meeting, Operating Committee chairman Mark Majerus called for a 15-minute recess, after comments by member Karen Lee who said she had a right to ask questions, including job descriptions of CCGYC department heads.

Majerus, said there is a procedure for obtaining the information she requested, a more private process that would not invite airing of personnel material in a public forum.

“If you’re not going to follow the rules, I’m going to suspend the meeting for 15 minutes,” he said. The meeting resumed after the break.

Majerus later told the Cove Currents that the suspension of the meeting did not have anything to do with the content of Lee’s comments.

“Karen Lee’s two-minute comment period expired and her access through Zoom had been muted,” he said. “She unmuted herself and continued, which added to the background noise in the room. After the third instance of this, I called for a meeting suspension.”

He said during introductory comments he had warned that if there was a repeat of the disturbances similar to the previous Board of Directors meeting, “I warned I would suspend the meeting. I carried through on that instruction.”

Hearn attributed about two thirds of the nega-

Aqua Virginia

From Page 43

Those limitation periods “ran in or around September and October 2015 respectively” and “such claims are, therefore, now barred.”

The attorney asks the Court to dismiss allegations pertaining to Aqua “and grant such further and other relief as the Court deems appropriate.”

Byrum does not explicitly ask for legal fees paid by the plaintiffs if Aqua prevails in the case.

tive variance to legal expenses attributable to the Birckhead et al litigation and expenses related to the recent vandalism of the Cove’s dredge boat, which necessitated the renting of another dredge boat to complete this year’s canal dredging program.

Hearn said that Cove personnel costs are in line with the approved budget for this year. He acknowledged that the Cove might be “title happy” in that key employees have “manager” in their job titles, but that the management structure is typical for an HOA with the size and budget of CCGYC.

He said there are three senior leaders, and four primary operating departments, again contending that employees are not the reason that CCGYC is experiencing a negative budget variance going into the busiest time of the fiscal year, when revenues inevitably will increase.

“It would be nice if we’re not sued and not subject to vandalism,” he said.

Hearn said that all employees are paid “fairly’ and are performing in exemplary fashion.

He cited Food and Beverage Manager Charlie Getz “who is delivering a great product.” He expressed incredulity “that someone would get all fired up because some $22 person has a title” like sous chef.

When one member said that Majerus and

Hearn had been “demeaning” in their answers to critics, Hearn said he was going to defend Phillips.

He said she receives about 50 to 60 percent of the compensation package received by the Ocean Pines Association general manager. He said that if criticism of her compensation continues, more research into compensation for similar positions in nearby Wicomico and Worcester County will ensue, and “the more money she’s going to make.”

He added that “unless you’re a Colby-hater, she’s a bargain from a pay and performance standpoint.”

In response to critics’ contention that CCGYC salaries are too high relative to similar positions on the Eastern Shore of Virginia, Hearn demurred.

“Just to clarify, there is nothing about Captain’s Cove” that justifies a comparison to the Eastern Shore of Virginia for purposes of setting compensation, he said. “We compete with Salisbury and the [greater Ocean City area] for employees. We’re not overpaying. We’d have empty FTEs (full-time equivalents” if CCGYC tried to lower salaries.

“We have to meet the market (for managers),” he said, comparing Captain’s Cove to the higher end planned community of Cape Charles than to the small towns that dot much of Virginia’s Eastern Shore.

Responding to the criticism that the Board does not respond to criticism in a timely fashion, Hearn said that according to the Virginia HOA ombudsman’s office, “Captain’s Cove is one of the most transparent” HOAs in Virginia.

“If you’re not getting an answer on the social media echo chamber, it may be because people (CCGYC management] have better things to do with their time,” he said.

He advised contracting the property management team directly for answers to questions.

Cove not experiencing lifeguard shortage

According to the National Lifeguard Association, one third of all outdoor pools across the country are closing early or permanently due to a lifeguard shortage.

“Not here in Captain’s Cove!” Senior General Manager Colby Phillips said in a recent e-blast to Cove property owner association members.

She said that Program Manager Flynn Kleinfeller had recently finished a second Red Cross lifeguard training class, bringing the Cove’s summer guard total to 15, with not all working at the same time.

“This includes several returning guards as well as new hires. We also hired our first Captain’s Cove Junior Lifeguard recruit, who is now old enough to guard for us,” Phillips said.

The three pools in Captain’s Cove are usually staffed with two lifeguards for safety reasons, she said, “unless we have days we expect to be extremely busy (July 4th), where we may have a third.”

Both outdoor pools in the Cove were scheduled to open Friday, May 26, for the summer season.

“We hope to continue to have both open, weather pending every day after. Several of our guards are in high school, so there is a possibility that the Town Center pool may be closed a few days during the week until mid-June when they are all done with school. At that time, both pools will be open every day,” she said.

Hours of pool operations are:

Marina Club Pool: 9-11 a.m. members only, 11 a.m. - 6 p.m.. members and guests.

Town Center Pool: 9 -11 a.m. classes and lap swim, Monday through Friday, 11 a.m. - 6 p.m., members and guests. Saturday & Sunday, 10 - 11 a.m., lap swim, 11 a.m. to 6 p.m., members and guests.

June 2023 Ocean Pines PROGRESS 45 CAPTAIN’S COVE
CURRENTS
46 Ocean Pines PROGRESS June 2023 CAPTAIN’S COVE CURRENTS
June 2023 Ocean Pines PROGRESS 47 CAPTAIN’S COVE CURRENTS

CCGYC to consider ban of contractors, vendors who violate community rules

Working group to be assembled to come up with ways to encourage better behavior

Operating Committee Chairman Mark Majerus has announced that Senior General Manager Colby Phillips will be populating a working group to draft a policy to deal with a perceived problem of certain contractors and vendors active in Captain’s Cove behaving badly.

The policy could result in certain contractors or vendors no longer being able to submit applications to the Environmental Control Committee.

They could also be informed that they no longer are welcome to submit proposals to provide other kinds of services to Captain’s Cove Golf and Yacht Club.

At the committee’s May 19 meeting, Majerus said without naming any names that “some contractors are flagrantly violating rules,” citing “messy” construction sites, not stopping at stop signs, or even forging building permit applica-

tions submitted for review.

He said that under existing policy many such infractions are enforceable only through action against a property owner doing business with a particular contractor.

“Only members are penalized,” he said.

Actions against property owners who employ contractors who are said to be in violation of rules includes the the levying of fines of up to $10 per day, not to exceed $900, for each infraction.

CCGYC governing documents do not allow for excessive fines, and in some cases property owners might conclude that paying a fine is less onerous than complying with a rule that they might not agree with.

Majerus said in some instances those mostly responsible for an identified problem are not held accountable, and a new policy is needed to address that.

We need “alternative ways to encourage better

behavior” on the part of vendors and contractors who do business in Captain’s Cove, he said.

Among the possibilities is the suspension or elimination of a contractor’s ability to submit applications for new homes or renovations to the Environmental Control Committee, he said.

Another option is to involve the Accomack County Sheriff’s Department to assist in the enforcement of no trespass orders, which CCGYC does not have the authority to enforce on its own.

Majerus said the latter option would need to be reviewed by legal counsel and also the willingness of the sheriff’s department to assist in enforcement.

He added that the working group named to draft a new policy would need to consider how many infractions would need to be identified to warrant a contractor’s expulsion from the Cove, and for how long, if not a lifetime ban.

CCGYC Board of Directors member Pat Pelino during discussion said she agreed with the establishment of a working group to deal with contractor behavior, mentioning that she has noticed “contractors blowing through stop signs” on occasion.

Majerus responded that “the fact that we’re discussing [it] could encourage contractors to do a better job” of self-enforcement.

The first meeting of the working group is scheduled for June 8, with any CCGYC member wanting to participate directly invited to contact Phillips.

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June 2023 OceanP ines PROGRESS 49 CAPTAIN’S COVE CURRENTS

Circuit Court rules against BIC Construction

An Accomack County Circuit Court judge has dismissed an amended complaint by prominent local builder BIC Constructions against the Captain’s Cove Golf and Yacht Club.

The BIC lawsuit involved a dispute over the Cove association’s 35-foot height limit. BIC asked the Court to enjoin CCGYC from enforcing its 35-foot height because of

Dispute over Cove’s 35-foot height limit dismissed

alleged inconsistencies in enforcement over the years.

The suit contended that:

• From 1998 to 2021, the Cove’s Environmental Control Committee consistently approved homes taller than 35 feet from ground level.

• Prior to 2021, ECC approvals took two weeks or less. Beginning in 2021, approvals of BIC applications if they occurred at all took two months or longer.

• According to an engineering

survey arranged for by BIC, there are 12 homes in Captain’s Cove that range in height from 37 to 44 feet.

In dismissing the complaint, the Court said the plaintiff could refile the case, but it seems unlikely that a refiling would result in a different outcome.

Steven Letourneau, of the Inman and Strickler law firm of Virginia Beach, said in a response dated Jan. 19 that the CCGYC acts that BIC sought to enjoin are “already pro-

hibited ... by virtue of its own Declaration (restrictive covenants).

“If there are specific acts by CCGYC, through the ECC [Environmental Control Committee], on a specific construction project or a specific application, that are in violation of the Declaration, then injunctive relief might be appropriate,” the lawyer said. “But to seek to enjoin, in general, CCGYC from violating its own Declaration is simply asking the court to tell CCGYC not to break its own rules which, again, CCGYC has no authority to do, is improper.”

According to Letourneau, BIC has not alleged BIC will suffer irrevocable harm or does not have an adequate remedy at law.

“It is hornbook law [law by long-established principles] that an injunction can only be granted” if neither of those conditions apply, he said.

He contended that the amended complaint filed by BIC attorney Douglas Kahle of Chesapeake Va. “is a mashup of various vague allegations that CCGYC through the ECC is violating the Declaration by exceeding its ‘authority granted by the Declaration,’ is arbitrary and capricious, and inconsistent with a consistent course of conduct dating back 18 years.”

Failing to come up with an a specific act or acts by CCGYC that are arbitrary or violate the Declaration, Letourneau said an action for breach of contract might be the better approach for the plaintiff.

“The amended complaint merely recites a laundry list of general action CCGYC which it claims to be aggrieved by, and then seeks a vague, unenforceable order from the court enjoining CCGYC from violating its Declaration provisions.”

The lawyer then requested the court to dismiss the BIC complaint with prejudice, grant CCGYC its attorney’s fees and costs and grant “further relief that the Court finds appropriate.” The suit was not dismissed with prejudice, and BIC could refile.

The amended BIC suit was similar to an earlier file that made it explicit that the builder wanted the Court to enjoin the Cove association from enforcing its 35-foot height limit through the Environmental Control Committee.

50 Ocean Pines PROGRESS June 2023 CAPTAIN’S COVE CURRENTS

Late-night ATVs concern Cove Security

Director of Operations and Security Chief John Costello is asking for assistance from residents of Captain’s Cove to deal with recurring incidents of all-terrain vehicles disturbing the peace

late at night in the community.

At the May 19 Operating Committee meeting, Costello invited residents to call Cove Security whenever they hear the ATVs plying the streets of Captain’s Cove or in other places where “they shouldn’t be.”

Costello said that “we think we

know where they’re coming from,” and calls from residents might help Cove Security identify the point of origin.

Foreclosure auction -- Operating Committee Mark Majerus said that no date had been set as of the May 19 meeting for a pending fore-

closure auction, but that one could be scheduled by Pender and Coward, the Captain’s Cove Golf and Yacht Club’s foreclosure attorneys, in late June.

Troon audit -- While the Troon Golf litigation is pending, Majerus disclosed that the forensic audit of CCGYC’s finances for the first six months of the 2021-22 fiscal year ending this past September is nearing completion. For the first six months of the fiscal yer, the Cove’s former management company did not produce monthly financial reports for CCGYC to review.

The omission resulted in the termination of an agreement under which Troon through an affiliate provided management and financial services to CCGYC.

It also resulted in a lawsuit filed against the management company by CCGYC to find out the status of more than $1 million in unaccounted for CCGYC funds under Troon’s control. The parties agreed to put the lawsuit on hold pending completion of the audit.

The CCGYC Board of Directors hired the regional auditing firm CohnReznick to conduct the forensic audit of Troon’s Captain’s Cove books, a process that has been under way since early this year. “The forensic audit “will be done in the next week or two,” Majerus said.

The forensic audit is expected to produce financial reports for the missing months at issue, at which time yearly results for 2021-22 can be compiled and subject to the annual audit process.

Budget timetable -- Senior General Manager Colby Phillips confirmed the 2023-24 budget timetable for the Captain’s Cove association during the May 19 meeting. There was no change in the timetable announced in April.

Key dates are May 19 for completion of the draft budget, with department reviews set for May 22 through June 2.

Community work sessions open to the membership are set for June 6 (security, aquatics, recreation), June 20 (roads and golf maintenance, administration, marketing) and July 11 (golf, food and beverage).

The final draft of the budget will be presented to the Board of Director by Aug. 1, with capital expenditures to be discussed during the August Board meeting.

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Canal dredging fund in need of cash infusion, Majerus says

Shortfall results from dredge vandalism, pending need to remove spoil from Treasure Island fill site

The Captain’s Cove Golf and Yacht Club’s waterfront reserve, used to pay for the community’s annual dredging program,

is low on funds, and will have to be replenished to address critical needs in the future, according to Operating Committee Chair Mark Majerus.

During the committee’s May 19

meeting, he said that CCGYC had spent more in dredging expenses this year than is collected from canal-front owners in the annual $200 waterfront assessment.

This assessment and the water-

Veterans Memorial at Town Center Independence Day, July 4th

front reserve is earmarked for canal dredging.

Majerus said that annual dredging costs have historically been in the range of $60,000 to $80,000, with the waterfront assessment collecting about $70,000 from 350 canal lots.

This year, because vandalism put the community’s 30-year-old dredge boat out of commission, CCGYC had to spend $80,000 to lease a dredge boat in order to complete this year’s dredging on schedule.

It could have been much worse, as CCGYC received a proposal from a local vendor to do the same amount of dredging at an estimate cost of $400,000. Even so, Majerus said the Cove is incurring costs associated with repairing the damaged boat.

In addition, the community’s dredge spoil site, Treasure Island, will be full next year, he said, with the need to remove accumulated spoils at Treasurer Island or to find a new site. Trucking the spoils from Treasure Island to a similar site in nearby Greenbackville has an estimated cost of $150,000, he said.

The community is also facing the need to replace the 30-year-old boat in the next several years, at an estimated cost of $400,000.

“We’d be happy to get three more years out of it,” he said, but there’s no guarantee it will last that long.

None of these additional costs were anticipated, Majerus said, and there are insufficient funds in the waterfront reserve to pay for them.

He said the shortfall “could require a $525 increase in the waterfront dues,” raising it from the current $200 to $725 a year, which he acknowledged would be quite a shock to canal-front owners.

“This is not a recommendation,” he then said. “It’s for informational purposes only.”

He announced the creation of a working group to study the issue and come up with recommendations to the Operating Committee and the Board of Directors.

Senior General Manager Colby Phillips will be tasked with populating the committee, with the first meeting scheduled for June 15 at 10 a.m. “It will take more than one meeting” to come up with a solution to the funding shortfall, he said.

CCGYC members who are not members of the committee will still be able to observe the meeting through a Zoom connection.

“There will be multiple opportunities for [offering] feedback,” he added.

52 Ocean Pines PROGRESS June 2023 CAPTAIN’S COVE CURRENTS

Mail clusterbox update -- Another working group will be populated by Phillips to address an issue on where to relocate the cluster mailbox on Captain’s Corridor at the Town Center.

An earlier plan to build a new clusterbox pavilion at the Marina Club parking lot has been abandoned because of concerns over congestion and traffic flow there.

Majerus said a new site will need to be found, adding that there is additional space on Mayflower Drive that could accommodate more boxes. Cove Commons has been cited as a possibility.

Majerus said any site selected will need to be able to accommodate mail for an additional 2,000 homes that could be built in Captain’s Cove in coming year.

Any Cove member wanting to be a member of this working group should contact Phillips.

Its first meeting has been set for Aug. 24 at 10 a.m.

Road improvements -- Still another working group is in the works to come up with a road improvement plan for Captain’s Cove, specifically dealing with prospective surfacing of Startboard Street, Mutiny Street, and Seaview Street, Majerus said during the May 19 committee meeting.

Whatever plan is developed will be largely dependent on long-awaited wetland surveys to be completed by the U.S. Army Corps of Engineers, he said, as well as the availability of capital funding.

ESVBA completes laying fiber on more Captain’s Cove streets

Eastern Shore of Virginia Broadband Authority has announced that its contractor, Eastern Shore Trenching, completed the installation of fiber optic cable along three Captain’s Cove streets as of mid-May, with more expected by the end of May. Homeowners who live on these streets can contact ESVBA to get quotes for high speed Internet service.

The three streets completed by mid-May were Buccaneer Boulevard, Spinnaker Street and Mayflower Drive. In addition, ESVBA has announced that by the end of May, fiber installation should be completed for homes on Blackbeard Road up to Billow Court, in addition to Billow Court and Sail Court. Quotes for service can be obtained for these areas, too.

Those interested in ESVBA Internet services should contact Maria Stevens at mstevens@ esvaba.com.

“We’re waiting for the Army Corps to determine the location of wetlands,” he said, adding that “we’re expecting that survey will be done this summer.”

Any CCGYC member wishing to be part of this working group should contact Phillips.

Its first meeting is scheduled for Aug. 17.

By-laws update - Majerus announced that a subcommittee of the Board of Directors will be formed to review CCGYC by-laws, in two parts. Article V, a section of the by-laws that pertain to retention of annual Board of Directors election ballots, will be looked at for possible updating.

In addition, the entirety of the by-laws will be

reviewed for typographical errors and to ensure compliance with the Virginia Homeowners Association Act and language in the 2012 settlement agreement, a document that has loomed large in Captain’s Cove governance in the ten years since its acceptance.

ECC update -- General Manager Justin Wilder announced that there were ten new home applications submitted for Environmental Control Committee review in April.

“Ten years ago, there were 15 for the entire year,” he said.

The ECC also dealt with nine compliance issues during the month, Wilder said.

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54 Ocean Pines PROGRESS June 2023 CAPTAIN’S COVE CURRENTS

CCGYC could add registration fees for short-term rentals

Administering program becoming burdensome to property management team, Majerus says

Captain’s Cove Golf and Yacht Club as soon as the 2023-24 fiscal year could to be levying registration fees on homeowners who lease out their homes on a short-term basis, generally

defined as less than 30 says, more often than not weekly or even by the day.

The Captain’s Cove property management team has procedures in place to monitor and register short-term rentals in the community, implementing policies adopted by the Board of Direc-

WEDNESDAY, JUNE 14TH

6 PM - DUSK

tors last year. These include distributing passes entitled renters to use Cove amenities.

While some communities and homeowner associations ban short-term rentals altogether, Captain’s Cove is not one of them.

CCGYC President Tim Hearn has consistently said that Accomack County law prohibits an outright ban, while regulation is permissible.

During the May 19 Operating Committee meeting, Chairman Mark Majerus said administering the program is becoming burdensome to the property management team.

“Thirty to thirty-five homes [used for shortterm rentals] use up to 25 percent of PMT resources,” Majerus said.

That means that 2,000 or so remaining lot owners are paying for administrative services they don’t use.

He said the property management team would be studying the program to determine labor costs required to administer it, the cost per home that uses it and then will be making a recommendation to the Board of Directors for a registration fee.

The fee could range somewhere from $500 to $1,000 per year and would be added to the 202324 budget now under development, Majerus said, adding that no Operating Committee action was needed on the issue.

Also at the May 19 committee meeting, Majerus announced that because of interest by CCGYC members, a working group will be established to study the possibility of introducing electronic voting in annual Board of Directors elections.

A July 20 work group has been scheduled to begin addressing the possibility.

He noted that the Ocean Pines Association tried on-line voting last year but this year opted to return to paper ballots only.

The OPA is in the process of hiring a national company based in Washington state that has the capability of handling both paper ballots and e-voting.

It is possible that the OPA will return to a hybrid approach next year.

Options for the CCGYC working group could include eliminating paper ballots altogether in favor of electronic voting, or adopting a hybrid approach where both paper ballots and electronic voting are used.

CCGYC currently outsources its Board election processes to its audit firm, with no handling of ballots by anyone associated with the association.

That methodology has generally been controversy-free, but this past year some residents had concerns about the accuracy of the ballot count and asked to review the ballots.

That review took place, and in the end the election results didn’t change.

In other disclosures during the May 19 committee meeting, Senior General Manager Colby Phillips announced the formation of a working group to address the possibility of creating a farmer’s market in Captain’s Cove.

Its first meeting is scheduled for July 13.

Also under development is a customer comment card for use at the Marina Club restaurant, she said.

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