Ocean Pines Progress March 2021 by Ocean Pines Progress

Captain’s Cove hires Phillips as senior general manager

MARCH 2021

Colby Phillips, who had resigned Feb. 16 from her management role in Ocean Pines, was announced during the Feb. 23 meeting of the Captain’s Cove Golf and Yacht Club (CCGYC) as Captain’s Cove new Senior General Manager. Cove Presisdent Tim Hearn also announced that Indigo Golf, formerly Billy Casper Golf, has been given an expanded role in Captain’s Cove. ~ Page 33

Stuart Lakernick is first to announce board candidacy Dr. Stuart Lakernick is the first Ocean Pines Association member to announce his candidacy for one of two seats to be filled on the Board of Directors this summer. He ran for the board last summer, capturing 1,149 votes in a third place finish behind Doug Parks and Colette Horn, both of whom ran as incumbents. Recent events in Ocean Pines compel him to run, Lakernick said. ~ Page 24

Horn, Parks email confirm launch of ‘witch hunt’ probe Previously undisclosed to Ocean Pines Association members, details of an investigation of senior OPA management over allegations that they might have been involved in an effort to undermine John Viola as General Manager have recently emerged through an exchange of emails that included Directors Doug Parks and Colette Horn. ~ Page 6

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COVER STORY

Directors Janasek and Parks call for special meeting to consider removing Perrone as OPA president OPA members lament resignation of Colby Phillips, blame board for letting it happen By ROTA L. KNOTT

Contributing Writer lleging a pattern of poor behavior, two members of the Board of Directors are calling for a special meeting to remove Larry Perrone as Ocean Pines Association’s President. Directors Tom Janasek and Doug Parks, respectively, made and seconded a motion during the Public Comments segment of a Feb. 20 Board meeting to hold a special meeting to remove Perrone as an officer following the resignation of a key OPA employee. There was no immediate indication when the meeting would be held. Two directors calling for a special meeting normally means it’s more or less automatic, but it’s still necessary for all seven directors to agree on a date. That hadn’t happened in the week following the Feb. 20 board meeting. “There has been a pattern of behavior on this board that includes threats of legal action against directors, blatant lies to influence directors’ votes, and interference with committees managing important projects, such as

Tom Janasek

Doug Parks

Larry Perrone

drainage, and food and beverage operations, to name a few,” Janasek said in making his motion. He led the call for Perrone’s removal as OPA president in response to the recent resignation of Colby Phillips, director of amenities and logistical operations, who had filed a human resources complaint against Perrone alleging a hostile work environment. “Colby Phillips, who never met a project she didn’t give 110 percent to. Always looking to better Ocean Pines and its residents. The way she was treated was To Page 3

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disgraceful,” Janasek said. Phillips’s complaint charged Perrone with violating Board Resolution B-08, pertaining to director and officer ethics and conduct. Her complaint of a hostile work environment was dismissed by the board after an investigation by Mike Neary, a human resources attorney with the Lerch Early law firm. “There was a request to have a special meeting for the consideration of removal of a director. I’d like to join that list to put a formal request in to call for the meeting for looking at removing an… officer,” Parks said during Public Comments during the board meeting. “We’re elected to this board to serve the community, not further our own personal agendas. I’ve been here longer than all of the directors combined. And I never thought I would see it revert back to a good ole’ boys network that we had in the past. And I hate to say I told you so, but I told you so,” said Janasek, who

had faced his own B-08 complaint just weeks prior. “It would behoove us to remember who we represent. This is not a board of one or two, and that is what it’s become,” Janasek said. He called on everyone watching the board meeting on-line to “help me change this situation.” Perrone did not respond to the comments of either Janasek or Progress Parks. He later told the Progress that any director has the right to call a meeting for the purpose of removing an officer and that the proper place to handle that is a special meeting Director Camilla Rogers said during the Feb. 20 meeting that this is a very difficult time for the board. “We need to be doing housekeeping from the inside. And we’ve considered a number of possibilities,” she said, adding a promise that “we will continue to work on rectifying our internal situation so that we can be more transparent to all of you.” Rogers’s comment did not really signal whether she was in tune with Janasek and Parks on the possible removal of Perrone as president. He

would remain a director if removed as president. Director Frank Daly said the message from the community following Phillips resignation is loud and clear. “Look, housecleaning starts with us. And for us owning up. We have had two B-08 hearings in 60 days. That in itself indicates there is something wrong, and something wrong that needs [to be] corrected. And it needs [to be] corrected immediately.” Daly took issue with the Resolution B-08, which establishes ethical standards and codes of conduct for directors. “It’s a bad process. I’ve said this publicly. And I’ll say it again. By May 20 we either fix it or I make a motion to rescind it.” He said the “cloak of secrecy” around Phillips’s resignation “is unfair to the community and to all involved parties. Because, yeah, there’s been thousands of comments made but they all come from one side. Like it or not there are two sides to every story. And I don’t like a process that handcuffs one side.” During the public comments

segment of the agenda, Esther Diller, a former director, reminded board members who they work for. “You people work for us. You need to remember that. You’re not an elitist group. You work for us. And what you’re doing and how you’re behaving is an embarrassment to our community, to me as a former director,” she said. She called out the board for interfering in personnel matters between the general manager and employees. “You need to stay out of operations. Stay in your lane. Do your job. And the GM needs to do his. He needs to fight his own battles with the employees,” she said, adding, “I’m extremely disappointed in this board and the black mark you’ve put on our community, as well as your treatment of an excellent employee.” Nearly a dozen other residents spoke during public comments, praising Phillips and chastising the board for its role in her departure from the OPA. Jackie Kurtz presented a letter signed by 104 Ocean Pines residents stating the community is upset To Page 5

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by the mistreatment and loss of Phillips, and the board’s involvement in personnel matters. The letter took issue with the Board holding several “closed-door” meetings to review the allegations against Perrone without Phillips being present or allowed to present her case. “Even if Perrone’s actions were legal or did not violate the B-08, it was wrong on every level. It’s wrong that the board, the majority of the board, was willing to put up with this behavior without any kind of censure and apology to Colby,” the letter said. Patti Stevens said she couldn’t even find out what had occurred when she first heard the was an allegation of an ethics violation. She said she watched several on-line board meetings and likened them to a Saturday Night Live skit. “There was no reference to what the issue was. There was no acknowledgment of what was involved and having been a public employee myself for

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30 years, I had never seen a meeting like that.” Stevens said the OPA can do better. She called on the general manager to support staff and allow their side to be heard in the community and by the board, and for the board to handle issues in an upfront and public way. Janet Deutsch said she finds it “distasteful and very upsetting to see and hear the turmoil that’s been going on recently. So as a homeowner I am asking for full transparency with every meeting that goes on about what happened with the Colby situation.” She said the board should not be involved in day-to-day operations and personnel matters of the OPA. “That’s why we hire well skilled staff to do so.” Len Smith, a former technology consultant for the OPA, called the situation appalling. “I want each of you to consider your own personal role in why we have lost several, not just Colby, but several valuable employees in what I consider to be highly questionable ways,” he told

Colby Phillips resignation letter:

Feb. 16, 2021 Dear Mr. Viola: This letter serves as a formal notification that I am resigning from my position as the Director of Amenities and Operational Logistics with the Ocean Pines Association. Per the company’s Employee Handbook, I am required to provide you with two weeks’ notice; therefore my last day at work [would be] March 2, 2021. {She was advised that she did not come in for work during that two-week period.] I am very grateful to the OPA organization for my successful seven-year professional career. I will always cherish my love for this community and the homeowners that embraced me and appreciated my dedication and loyalty. I would like to take this opportunity to wish all my OPA colleagues a healthy and successful year and I extend my well wishes to you and to the Board. Sincerely, Colby Phillips

General Manager John Viola statement:

This announcement is to inform you that Colby Phillips has resigned from her position as Director of Amenities and Operational Logistics, and her last day with Ocean Pines Association was Thursday, February 18, 2021. She will continue to teach the swim aerobics class until March 31, 2021. We are thankful for Colby’s contributions at Ocean Pines Association. Please join me in wishing her the very best in her life and career endeavors. John Viola, General Manager

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‘Witch hunt’ investigation details emerge in email from directors Horn and Parks Was Colby Phillips targeted? Former Director Esther Diller says yes By TOM STAUSS Publisher reviously undisclosed to Ocean Pines Association members, details of an investigation of senior OPA management over allegations that they might have been involved in an effort to undermine John Viola as General Manager have recently emerged through an exchange of emails. Details remain sketchy, and there is a dispute over whether the investigation was targeted at Colby Phillips, former director of amenities and logistical operations, or at senior management in general. Evidence suggests the former. The

investigation appears to be related to comments by Director Camilla Rogers at an Aug, 17 special board meeting in which she referenced what she called a “witch hunt, an attempt to squeeze out John (Viola) as general manager.” No further references to a witch hunt or similar allegations were made during the meeting, and there were no statements by Rogers or any other director on who might be engaging in a witch hunt designed to force Viola out as GM. Since that meeting, there were no public disclosures to the effect that the allegations were being investigated. But recent emails from directors

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Doug Parks, who also serves as the OPA treasurer and chief financial officer, and Collette Horn, OPA vice-president, confirms that an investigation was launched.. The Progress has learned that the human resources attorney from Lerch Early who conducted the investigation, Michael Neary, concluded that the allegations about a campaign to undermine Viola were unsubstantiated and unproven. The results of the investigation were revealed to Phillips but no other senior OPA management except for Viola and human resources coordinator Kathy Stryjewski in a Jan. 11 meeting. Horn and OPA President Larry Perrone were present, with Horn by her own admission in the lead role. The fact that no other department head was called in to discuss the results has led to an allegation that the investigation was mostly targeted at Phillips. The comments from Rogers about a possible effort to undermine Viola

Perrone removal From Page 5

directors, adding, “I will be a pain in your side for every meeting from now on with that request until you guys individually make it clear to me that you are committed to stopping this nonsense ...” Slobodan Trendic, another former board member, said the real question is one of appropriate corporate governance for Ocean Pines. All organizations have some form of corporate governance, he said, adding that OPA is no different. As a former director, he said he knows that the OPA has all of the pieces in place to have a very good corporate governance. “But all those tools, all those pieces become worthless if we don’t enforce them, if we don’t have the proper oversight. And that oversight starts with the top and it trickles down,” he said. Trendic said that, in addition to resolving the issues that resulted in Phillips leaving her position with the

appear about five minutes into the Aug. 17 special meeting, which involved allegations that Viola influenced Rogers in her decision to vote for Larry Perrone as OPA president over former OPA Director Steve Tuttle. The directors were debating whether to go into closed session to discuss the allegations about undue influence, which had been the subject of an article that appeared in the Progress’ August edition circulated one day earlier. Rogers vehemently denied Viola had exerted undue influence, and directors Perrone and Frank Daly said that Rogers had every right to seek advice and information from Viola. Rogers said Viola told her he could work with either Tuttle or Perrone as president. Eventually, after directors Tom Janasek and Parks said they wanted to discuss matters not necessarily addressed in the Progress article, the directors voted to go into closed session. It’s not clear whether the directors in closed session voted to launch an investigation or whether a consensus was reached to do so without a vote. The email chain that confirmed the fact of an investigation began with a Feb. 20 email to the board by former OPA Director Slobodan Trendic, who questioned why, if the OPA was following good corporate To Page 8 OPA, he hopes the board will take an independent look at corporate governance and why this appears to have failed in Phillips’s situation. “This is not to point a finger at anybody. But if we don’t get to the root of this problem we will have some more problems in the future and we all want to avoid that.” Lora Pangratz asked if the OPA lets the community know when employees in management positions resign for any reason. “There should always be a statement for transparency’s sake when a resignation has been received by the board of Directors no matter what the situation or scenario was for the at resignation.” In the matter of Phillips, she said the Board should thank her for a job well done. There was no immediate indication when a special meeting would be called to consider the removal of Perrone as president. None was set in the week following the Feb. 20 regular meeting.

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March 2021 tial results were not shared with our GM or HR manager, the board agreed that Larry and I be the ones to share the results with her,” she continued. “I led that meeting. Even though no personnel action was required, and nothing was to be put in Colby’s personnel file regarding this, it was agreed that the HR manager should be present to represent Colby’s interests and our GM be present as her direct superior, also to represent her interests and to hear the information that was shared. I can give you no other specifics, since they are confidential.” She concluded by saying she hoped “this clears up the misinformation that is in the public domain regarding this matter.” It didn’t, and she didn’t identify the “misinformation” to which she referred. Two emails followed that shed more light on the matter. One was from Parks, who challenged a statement Horn made in her email. The other was from Esther Diller, a former OPA director, who questioned the accuracy of Horn’s claim that there was no investigation of Phil-

Witch hunt From Page 6 governance, that events that led to Phillips’s resignation were allowed to happen. Trendic then asked the board to be “transparent and forthcoming” in answering several questions, including who made the request to investigate Phillips, who approved the investigation, and did Perrone and Horn obtain the board’s prior approval before holding the meeting with Phillips, Viola and the HR coordinator. Horn responded. “There was no investigation of Colby,” she said. “The board voted unanimously in closed session to elicit an independent investigation of the senior management team based on allegations that I cannot disclose due to confidentiality requirements. After that investigation was done the board was given a report of the findings, and the board agreed that the findings should be shared with Colby. “Since the investigation was board-initiated and the confiden-

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lips. In his email, Parks said he was not disputing the fact that the board had voted to conduct an investigation. “I am disputing the comment that “... the board agreed that Larry [Perrone] and [Horn] be the ones to share the results ...” According to Parks, a few days before the report was presented, at the end of a meeting on a completely different topic, also attended by Perrone and Horn, “I pulled them aside and suggested they let the GM present the results [of the investigation] to his employee [Phillips] as I felt, and as I have felt for some time, that the level of involvement in operational issues [by Perrone and Horn] is exceeding the stated roles and responsibilities of a director.” Parks went on to say that while they were open to discussion, Perrone and Horn “were steadfast in their belief that they should be the ones to deliver the report. I just wanted to ensure that everyone knows I was not supportive of who delivered the report but respect the concept of a majority in the deci-

sion-making process.” While Parks didn’t fi nd fault with anything else in Horn’s response, the same was not the case with Diller, who unloaded on her former board colleagues. In reaction to the suggestion that Horn was not the subject of an investigation, Diller said that “if this is the case, then why was Colby the only one brought in to review this investigation as well as telling her the claims against her were not substantiated? Why not bring every one of the senior management team in and have the same conversation? Why just Colby?” Horn had not sent a reply to these questions prior to publication of this edition of the Progress. Regarding Horn’s statement revealing that she and Perrone were the ones who delivered the results to Phillips, Viola and Stryjewski, Diller reacted with apparent derision and incredulity. “What the heck are you and the board doing involved in operations? When the report came back unsubstantiated, it should have stopped

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Tucker belatedly confirms that Perrone was subject of Colby Phillips’s complaint Attorney’s timeline omits detail on how board learned of allegations By TOM STAUSS Publisher erch Early attorney Jermey Tucker has released a timeline on the process that addressed a complaint by former Department head Colby Phillips against Ocean Pines Association President Larry Perrone. Phillips has since left the employment of the OPA. Tucker offered his timeline of the complaint during the Board of Directors’ Feb. 20 meeting,

Witch hunt From Page 8 there. If it was thought best to have a conversation with Colby, then why was it not done with the GM, who is her direct superior, and HR? Last time I checked, isn’t that why we have an HR person?” she asked Horn. Diller then asked Horn whether she understood “how intimidating it must be for an employee to have this type of conversation with board members and you, Colette, taking the lead.” She then urged Horn to read the OPA by-laws regarding di-

omitting a key detail on how the board first learned of the complaint, initially filed with the OPA’s Human Resources coordinator Jan. 4. Nonetheless, for the first time someone associated with or representing the OPA admitted that it was Perrone who was the subject of the Phillips’ complaint, which concerned allegations of a hostile work environment. Most board members learned of the complaint in a Jan. 25 email from Duane Phillips, husband of Colby Phillips, who pointed

rector interaction with employees. But she wasn’t finished. “This situation continues to get worse by the minute. Your email, Colette, basically shows that Colby was the only senior management member directly addressed by board members and told of the intent of the investigation ... Stop fighting the GM’s battles. He is a grown man and knew what this role involved. If he is having a morale issue with the team or is hearing that senior management is unhappy, that is for him and HR to address, not the board.” There was no response to those comments.

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out what he called a “lack of action” on the complaint. He said that Payroll and Human Resources coordinator Kathy Stryjewski, in a follow-up meeting with General Manager John Viola and Colby Phillips, told Duane Phillips that Perrone had been “made aware” of the complaint. Duane Phillips suggested that Perrone then had the responsibility of notifying his board colleagues of the complaint, but that did not occur. OPA Director Frank Daly told the Progress that shortly after receiving the email from Duane Phillips, he sent an email to Perrone and other directors asking what the complaint was all about. Other directors also were in the dark about the complaint at that time, Daly said. Tucker, who in his Feb. 20 remarks did not include any reference to the Duane Phillips email, showed a timeline which indicated responsiveness to the com-

More details about the meeting with Horn, Perrone, Viola, Stryjewski and Phillips have emerged in the context of those emails, suggesting that Phillips was the primary, if not exclusive, target of the investigation. According to information about the meeting obtained by the Progress, Phillips was told that “an investigation led by [Perrone] as the board representative was done on [Phillips] to look into accusations that [she] was undermining the GM by sharing information with the paper, taking full credit for things such as Bainbridge {Park], giving info to people in the community at the expense of others to help” Phillips “move up in the organization.” She was also alleged to have released an emergency organizational chart for the OPA that had her role substantially devalued, answering

To Page 12 to the director of golf during a time of crisis. Neary, the HR attorney, found all these allegations to be unsubstantiated, that they were matters of “perception only,” the Progress was told, open to interpretation. Phillips regarded the investigation as “targeted” against her even as Horn assured her that no “personnel action” would be taken against her. Phillips was told that she could take this meeting “as an opportunity” to be counseled so she could “decide how to control the outcome and make changes.” But she wondered how someone could “make changes with no proof of any issues?” This meeting was cited by Phillips in her complaint against Perrone alleging that he had fostered a hostile work environment, complaints that Perrone has reportedly denied.

March March 2017 2017 Ocean Ocean Pines Pines PROGRESS PROGRESS25 25 MarchMarch 2017 Ocean Pines PROGRESS 25 11 2021 Ocean Pines PROGRESS

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March 2021 cording to Tucker. In the case of a complaint filed by Complaint an OPA department head or other From Page 10 employee, the complaint is written plaint by the HR department and by a director on behalf of the employee, according to Daly. Viola. But there is no language in B-08 Tucker said that Viola, shortly after learning of the complaint from that says a complaint can only be Stryjewski, contacted Lerch Early filed by a director against another attorney Michael Neary, who spe- director, or that an employee must cializes in HR complaints for his rely on a director to write up a comfirm. Neary was authorized by Viola plaint on his or her behalf. Daly told the Progress this is just to begin an investigation of the allegations in the Phillips’ complaint. one example of where B-08 and the Tucker said that Phillips around current B-08 process is defective. He the time of her husband’s email said B-08 complaints should be writspecified that she wanted her com- ten by the aggrieved employee, not a plaint handled under Board Resolu- director who may or may not sympation B-08, which is the OPA’s ethics thize with the complaint. Tucker said that OPA Vice-prespolicy. But there is every reason to believe that Phillips and her hus- ident Colette Horn was the director band thought that the complaint al- selected to write the complaint on ready was covered by B-08, because Phillips’s behalf. Tucker did not say his email referenced “governing doc- why Horn, who did not ask Phillips if she approved of Horn drafting the uments” of the Association. B-08 is the only such document complaint, was selected for that role. Horn has been identified by forthat spells out of a process for filing complaints against directors, and it mer Director Esther Diller as a dispecifically says the board should rector who has expressed opposition act on a B-08 complaint in a public to Phillips’s eventual ascension to meeting within 14 days of a com- the OPA’s general manager position. “It’s a conflict of interest for Coplaint being filed. Duane Phillips’s sent his email lette to be writing the complaint on after there was no board action or behalf of Colby,” Diller said. “Just as acknowledgment of a complaint out- bad is the fact that the complaint was not shared with Colby” before side that 14-day window. Under past precedent, a B-08 it was given to the board and atcomplaint and the clock of the 14- torneys, she said, adding that she day response window is triggered doubted that Horn’s version was a not by a filing of a complaint with fair and accurate rendering of the the HR department but rather a original complaint. According to Tucker, Neary subcomplaint written by a director, acmitted a report on his investigation cording to Tucker.

OCEAN PINES “It’s a conflict of interest for Colette to be writing the complaint on behalf of Colby.” Esther Diller, for OPA Director

of the complaint to the board on Jan. 28. The report included references to contact with some, but not all, of the corroborating witnesses cited by Phillips in her original complaint. The board then decided to meet in closed session on Jan. 29 to discuss the report, Tucker said, with Phillips not invited to participate, “just like Viola had not been” in the recent complaint filed by him against Director Tom Janasek. That B-08 complaint, which Perrone wrote up and then prosecuted in a public meeting, resulted in a 4-3 vote not to remove Janasek from the board. According to Tucker, B-08 only requires a public board meeting when there is a possibility that a board member would be subject to possible removal. That was not an option in the Phillips complaint, he said, omitting the fact that Viola made a public statement during the Janasek hearing that he (Viola) was not pushing for Janasek’s removal from the board. Perrone was pushing for Janasek’s removal without the explicit request of Viola. Tucker concluded his comments by saying that the complaint was

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“taken very seriously” by the board and his colleague Neary and that “every effort was made to adhere to the same process” that had been used in the Janasek complaint. Perrone said that Tucker would not be taking questions because of privacy concerns. In his Jan. 25 email letter to the board, Duane Phillips referenced a scheduled meeting on Jan. 26 concerning a so-called 360-review of her job performance in which comments by some of her colleagues would be discussed by the board in closed session. The 360 review was part of the OPA’s succession planning process, in which a successor to Viola will be identified when he decides to retire. Phillips, who had indicated an interest in succeeding Viola when his contract expires in June of next year, subsequently took herself out of the running for the GM position, a clear response to the drama unfolding around her complaint. The 360 review in which Perrone was a participant “doesn’t seem to me to be more important than a complaint of a hostile work environment. Also during this time frame meetings and interaction has taken place with whom the complaint was regarding. I’m not fully aware of OP policies regarding a time frame for filing grievances/ complaints however I believe 20 days without action by the board is irresponsible,” Duane Phillips wrote. He said he noticed “an increase in anxiety and stress at home as a result of this matter and lack of action taken. I inquire daily with Colby regarding this issue because of my concern with her stress level. When it’s now affecting myself and our family I felt a need to share my feelings and concerns with this issue,” he wrote. “I respectfully request from the board, full cooperation and in conjunction with the governing documents of the Association for a resolution to be a priority and expedited moving forward,” he concluded. There’s no indication that Duane Phillips received a reply to his email to the board or if his email contained any incorrect information.

OCEAN PINES

March 2021 Ocean Pines PROGRESS

Director lists ‘defects’ in OPA’s ethics policy By TOM STAUSS Publisher

cean Pines Association Director Frank Daly is demanding changes to the B-08 board conduct/ethics resolution by May 15 or he will offer a motion to repeal the resolution in its entirety.

He is frustrated with the process used by the Board of Directors in handling the complaint by Colby Phillips, former director of amenities and logistical operations, against OPA President Larry Perrone. The board appointed a task force to consider revisions to B-08, but it’s not clear it will produce an amended version by Daly’s May 15 deadline. In a recent post on oceanpinesforum.com,

Daly criticized B-08 because he said it handcuffed the board in dealing with the complaint in a way that could be easily understood by the OPA membership. “This resolution has prevented the Board from identifying who made the complaint, who the complaint is against and what the complaint is. This resolution has completely prevented the accused of making any comments to defend themselves. It has prevented answers to totally appropriate questions from Association members and the process itself has raised fair, and serious, questions,” he said. Daly said he’s been through three B-08 processes and has voiced concerns regarding it. “My colleagues on the board have agreed to review B-08 with the intent of addressing my concerns and those raised by others,” adding

that “my position on B-08 is very public and clear. Fix it or get rid of it entirely. And if appropriate fixes are not in place by the May 15 Board meeting, I will be making a motion to do exactly that,” Daly said. The process Frank Daly for handling ethics complaints, spelled out in B-08, is notable for its lack of detail. It says only that complaints “regarding violations of ... standards and policies shall be addressed by the Board in a public meeting timely but not to exceed 14 days after the complaint is received. Meetings to consider such complaints shall be held in closed session only if authorized by the Maryland HOA Act Section 11B-111.” It concludes by saying that “for the purpose of determining authority to hold such meetings in closed session, Directors may be considered q q

Daly slams B-08 process, demands revision by May 15 or he’ll offer motion to repeal

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B-08 process From Page 13 Employees of the Association.” In a follow-up conversation with the Progress, Daly acknowledged that this B-08 language does not appear to handcuff the board from identifying persons involved in a complaint and “what the complaint is.” He went on to say that privacy concerns and legal advice to the effect that details of a complaint should be kept confidential is what leads to a cloak of secrecy over ethics complaints. Also, when an investigation occurs in a B-08 complaint, as it usually does, then issues of attorney-client privilege concerns come into play, Daly said. Investigations of complaints can involve an attorney specializing in human resources cases. In the case of the Phillips complaint, an investigation was conducted by Michael Neary of the Lerch Early law firm. His colleague, Jeremy Tucker, handles most of the legal work for the OPA. OPA General Manager John Vi-

ola ordered the investigation of the Phillips complaint after it was filed with Kathy Stryjewski, the OPA human resources coordinator, on Jan. 4. Although there is no language in B-08 that specifies that a B-08 complaint can only be filed by one director against another, Daly said that this is the way B-08 has been applied in all the cases with which he is familiar. Phillips’s complaint, he said, did not immediately fall under the provisions of B-08. It only became a B-08 complaint when Phillips weeks later indicated that she wanted it to be treated that way, Daly said. In another process not spelled out in the language of the resolution, Daly said a director is required to write a formal B-08 complaint on behalf of the aggrieved employee. Daly said that task was taken up by OPA Vice-president Colette Horn. Sources told the Progress that Horn did not consult with Phillips in drafting the complaint. Phillips was totally locked out

of the process at that point. Horn’s version of the complaint was never shared with Phillips. Nor was she given an opportunity to discuss it with the board. The board apparently based its decision to exonerate Perrone of a B-08 violation -- according to an OPA press release the board found no violation of B-08 -- on the basis of Neary’s investigative report. Daly said one of his objections to B-08 is the practice of a board member writing a complaint on behalf of an employee, who is not involved in its drafting or even consulted before it is shared with the board. “Any B-08 complaint should be written by the person making the complaint, not a board member who at some point will be asked to render a judgment on it,” he said. His suggestion is that a standardized B-08 form should be used in any complaint against a director by an OPA employee. Any narrative or supporting detail would be written by the employee making the complaint, he said. Daly said another weakness in

B-08 is the long lag time in the filing of the complaint and the board learning of it. In the case of the Phillips complaint, the board as a whole did not learn of it until Duane Phillips, Colby’s husband, wrote an email to the board expressing concern about the lack of action on the complaint. His emailed arrived on Jan. 25, about three weeks after the complaint had been filed with the OPA human resources coordinator. This three-week delay would seem to be inconsistent with language in B-08 specifying that a twoweek turn-around, but Daly said the B-08 clock under the current practice begins when the complaint on behalf of an employee is written up by a director and shared with the board. He acknowledged that this timing is not spelled out in B-08 and is not understood by the OPA membership or OPA employees who might think that filing a complaint with the HR coordinator triggers the B-08 clock. “This needs to be clarified if we’re going to keep B-08,” he said.

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Phillips complaint details revealed

Board scheduled to meet March 1 to determine release of relevant documents By TOM STAUSS Publisher etails of encounters that former Ocean Pines Association department head Colby Phillips had with OPA President Perrone dating back to June of last year and continuing into January of this year seem to bolster her perception that they weren’t friendly and oftentimes were contentious. Some of those encounters were cited in a document she prepared that was turned over to Lerch Early human resources attorney Mike Neary and used in his investigation of her allegations that she was laboring in a hostile work environment. Those allegations were the basis of a complaint she initially filed with OPA Human Resources Coordinator Kathy Stryjewski in early Jan-

uary. About three weeks after her complaint was filed, her allegations were converted into a complaint filed under Board Resolution B-08. The B-08 version of the complaint was prepared by OPA Vice-President Colette Horn without the involvement of Phillips. Neither that document nor the report submitted to the board by Neary after the conclusion of his investigation has been released to Phillips or the OPA membership. That is likely to change. A board meeting has been scheduled for Monday, March 1, at 2 p.m. to discuss the release of documents related to the Phillips complaint as well as an unrelated investigation of Phillips and other department heads on whether there was a conspiracy to “squeeze out” John Viola

as OPA general manager. Neary investigated that matter and reportedly found no evidence of it. Daly thinks there are either four or five votes on the release of the documents related to the Phillips complaint. He was uncertain on prospects for a release of the earlier investigation. Director Frank Daly has been urging Perrone to waive his privacy rights and authorize release of documents relevant to the Phillips complaint before a special meeting of the board called for by directors Doug Parks and Tom Janasek is held. Parks and Janasek made their request for a special meeting during the Feb. 20 monthly board meeting, with the possible removal of Perrone as OPA president cited as the reason.

Two directors requesting a meeting on a particular topic means a meeting must be called. This meeting had not been set as of Feb. 26, but Daly said it would be scheduled a week or more after the March 1 special meeting on the document release. The Progress has obtained a timeline of the events in sequential order that were cited in Phillips’s original complaint and turned over to Neary. The Progress has reached out to Perrone to respond to allegations, but he has declined on the grounds that it is personnel matter and that the OPA is obligated to respect employee privacy. Daly said that there has been enough detail about Phillips’s complaint in the public domain that persuades him that she has effectively waived her privacy rights. So now it’s up to Perrone to do so as well, explicitly, so that relevant documents can be released to the OPA membership, he said. Daly said Perrone would like to release all relevant documents. On June 30 of last year, at a meetq

16 Ocean Pines PROGRESS

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OCEAN PINES about the project, causing her embarrassment. Two months later, Phillips created a Go Fund Me for Andre Jordan, former superintendent of the Ocean Pines golf course. Other OPA employees who had worked with JorJanuary 1st dan contributed as a way of helping him pay for medical expenses. No thru January 18th. We will OPA resources were used in the efopen January 19th. fort, and it was done on their own time. Phillips was called into a disciplinary meeting with two directors,

Perrone and Parks, the HR coordinator and Viola. After Viola read a statement, Perrone allegedly took over the meeting and said she needed to represent Ocean Pines as a senior member of OPA management. Phillips reportedly was taken aback by the criticism of her involvement in a charitable enterprise, and she again thought that Perrone had spoken to her in a demeaning and condescending tone. In November, she was brought before a group including Perrone,

Horn and Viola and given the results of the investigation into the alleged spear campaign to oust Viola. She said she was the only department head brought in to discuss the alleged smear campaign. A Jan. 4 meeting, again on the Bainbridge Park project, was the event that precipitated the filing of a formal complaint with the HR coordinator. Initially just a meeting with Viola, the general manager had invited Steve Phillips and Perrone q

ing on the issue of Aquatics coupon cards requested by a property owner, Perrone reportedly was subbing for General Manager John Viola. Although Phillips had already met with the homeowner to discuss coupon cards, he insisted that he wanted to meet with the GM, but in this case the meeting was held with Perrone, Colby Phillips, and Finance Director Steve Phillips in attendance. According to the complaint, Perrone after the meeting asked Phillips why she would bring a homeowner to the GM to discuss the coupon card issue when there was a process in place that would not directly involve the GM. Perrone allegedly asserted the Phillips did not understand the process and she in turn reportedly replied that she did understand and that she considered it her role to bring homeowners to the GM when they insisted. Phillips regarded Perrone’s attitude toward her as “condescending and demeaning” and she reportedly shared that belief with the HR coordinator. In July and August of last year, Phillips was informed that Perrone was alleging that she was behind a smear campaign intended to remove Viola as general manager. That allegation was in turn investigated by Neary and found to be unproven and unsubstantiated, and she again reportedly felt her character and integrity had been challenged. She allegedly confronted Perrone on Aug. 6 about “why he was saying things that were untrue” behind her back and he allegedly replied that they were just rumors. Another incident the following day involved a homeowner who allegedly was told by Perrone that Phillips would never become OPA general manager because of a lack of financial background and that she was unable to do a simple calculation involving the lot assessment. Phillips again regarded this incident as one which was insulting, disrespectful and demeaning. Phillips has been preparing departmental budgets in Ocean Pines for seven years. On Aug. 25, Phillips attended a meeting with county officials on the Bainbridge drainage project, with Viola, directors Doug Parks, Steve Tuttle and Perrone in attendance, along with Viola. Phillips’s complaint says that Perrone was condescending and argumentative when speaking to her

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OCEAN PINES

March 2021

Daly, Perrone urge release of Phillips’ B-08 documents

Phillips complaint From Page 17

to the meeting to discuss finances related to the Bainbridge project. As perceived by Colby Phillips, Perrone asked questions about the project in a “yelling voice,” questioning whether the OPA had received a grant from the state and how much it would be. Phillips asked Perrone why he is “always yelling at me,” to which he allegedly responded that she does not give him what he needs and is always changing the totals. According to Phillips, Perrone accused her of having guaranteed $1 million in state funding for the project. She said she never did and couldn’t possibly, as those who request state funding never know what will be awarded until an announcement is made by state officials. Perrone allegedly continued to disagree with Phillips in what she regarded as an aggressive and condescending manner. Viola eventually intervened in the conversation to lower the temperature and explain to Perrone what Phillips had tried unsuccessfully to convey.

Daly wants two special meetings, one to address a document release and the second one to consider removal of Perrone as OPA president By TOM STAUSS Publisher here is a complicated choreography under way as part of a process that could lead to a special meeting called by Ocean Pines Association directors Tom Janasek and Doug Parks to consider the possible removal of Larry Perrone as OPA president. The two directors made that call for a special meeting during the Public Comments segment of the Feb. 20 Board of Directors meeting. Director Frank Daly said he was amenable to the meeting called by Janasek and Parks, but he wants another special meeting first. It would be a public meeting called for the purpose of debating and voting on the release of documents pertaining to former Amenities and Operational Logistics Di-

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rector Colby Phillips, who resigned earlier this month. The meeting has been scheduled at 2 p.m. on Monday, March 1. Daly said the first tranche of documents he wants released pertains to the complaint by Phillips alleging a hostile work environment. The complaint eventually ended up as a matter handled under the OPA’s convoluted Resolution B-08 process. The B-08 resolution covers board conduct and ethics and includes some instructions on the process of addressing alleged violations. Daly has been a critique of B-08, calling it “a bad process. I’ve said this publicly. And I’ll say it again. By May 15 we either fix it or I make a motion to rescind it.” He said the “cloak of secrecy” around Phillips’s resignation “is unfair to the community and to all involved parties. Because, yeah, there’s been thousands of comments made [unfavorable to Perrone] but they all come from one side. Like it or not there are two sides to every story. And I don’t like a process that handcuffs one side.” He in effect was saying that Perrone has been unable to defend himself against allegations that have been made against him, including those by Director Tom Janasek at the Feb. 20 monthly meeting of the Board of Directors.

Among this first tranche of documents is the investigative report of the Phillips B-08 allegations. The report was drafted by Lerch Early human resources attorney Mike Neary. Contrary to an assumption of some people in Ocean Pines, Daly said the report didn’t actually include a conclusion or recommendation to the board. The directors based their judgment that there was no B-08 violation on information in the Neary report, Daly said. There have been suggestions that key witnesses supporting Phillips were not contacted in the Neary investigation, among them former Director Steve Tuttle and one or two county officials, perhaps a county commissioner. This report might include as attachments the original complaint notes that Phillips presented to the OPA human resources coordinator, Kathy Stryjewski in early January, Daly said. Parts of that report have surfaced on oceanpinesforum.com. A summary appears elsewhere in this edition of the Progress. Daly has said that releasing the report and its supporting documents will allow Perrone’s side of the difficulties with Phillips to be aired. To Daly that’s a matter of simple fairness. “Members will be able to decide for themselves what they think

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OCEAN PINES

March 2021 Ocean Pines PROGRESS voted to approve the investigation. OPA Director Camille Rogers in an Aug. 17 special meeting called out what she termed a “witch hunt,” an effort “to squeeze out” Viola as GM. Daly said the allegation originated with Viola, who was told by members of the Ocean Pines community that this effort was under way, with the possible involvement of a key Frank Daly Larry Perrone upper level department head. August. Tuttle, in a recent post on oceanThe investigation had to do with pinesforum.com, also said that Vioallegations that there was an effort la was responsible for the launch of under way to undermine Viola as this investigation. general manager and possibly result The Progress has learned that in his removal. Lerch Early submitted an invoice in Former Director Steve Tuttle said November that might have been for in a recent post on oceanpinesforum. this investigation, which resulted in com that he doesn’t recall a formal a judgment that the allegation was vote that authorized this investiga- unproven or unsubstantiated. The tion. invoice amount for this item was “It could have happened. I’m just $14,000. not sure,” he said in a follow-up teleDaly acknowledged that there are phone interview with the Progress. privacy and liability concerns with If not a vote, then he conceded that releasing the documents and that there was a board consensus to in- there have been discussions with levestigate the allegations gal counsel about them. Director Colette Horn said in a He said the views of counsel will recent email to Former Director Slo- be considered and that he believes bodan Trendic that the boardMarch, had that Lerch Early attorneys will be 2021

about all this,” he said. Daly said that Perrone wants these documents to be released as well, but he’s not sure how other directors will come down on that. “If not, I’d like to know why,” he told the Progress. In a Feb. 25 text, Daly amended that statement and said he believes there will be either four or fi ve votes in favor of the release. The four likely votes are Daly, Perrone, Frank Brown and Colette Horn. Daly said he told Perrone that support for having Perrone’s side released publicly doesn’t mean he necessarily will oppose the push by Janasek and Parks to remove Perrone as OPA president. Janasek and Parks contend that Perrone has been much more involved in operations in Ocean Pines than he should be, interfering in the day-to-day affairs of Ocean Pines. Daly is said he’s open to hearing evidence and competing points of view on that subject. A second tranche of documents has to do with a second investigation conducted by Neary, this one authorized by the board this past

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present at the meeting on March 1 when the document release will be rleased. He opined that the attorneys would have less difficulty in accepting the release of the first tranche of documents than they would the second tranche. Daly went on to say that once the document release issue is resolved, it will be appropriate to hold the meeting requested by Parks and Janasek on Perrone’s possible removal. Daly initially had hoped that the directors would agree to hold the first hearing on Feb. 23 or Feb. 26, but both dates didn’t work for a majority of directors because of scheduling difficulties. Perrone told the Progress in a Feb. 23 telephone call that he had sent proposed dates to the directors in the hopes of having a special meeting sometime the first week of March. That effort succeeded with the announcement of the March 1 meeting on document disclosure. He remains steadfast in declining to comment on any of the allegations against him.

20 Ocean Pines PROGRESS

OCEAN PINES

March 2021

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tunity to weigh in on reducing the Board of Directors’ spending authority as the result of an agreement announced earlier this month by former Director Slobodan Trendic and the board. The agreement, the outcome of which was never really in doubt, requires the Ocean Pines Association to conduct a community-wide referendum on the question raised in Trendic’s 2019 petition drive. The referendum is supposed to ask property owners whether they support reducing the board’s capital spending authority from the current 20 percent of lot assessment revenues to a flat $1 million. The spending threshold under the 20 percent ceiling is about $1.8 million. The petition drive was conducted by Trendic and supporters in a loosely organized group called Start, which collected about 800 signatures, barely enough to force a referendum. The petition was rejected by the board after signatures were presented at the annual meeting of the OPA in August that year, on technical legal grounds that Trendic challenged in court. He won the case in a decision by Circuit Court Judge Beau Oglesby issued in October of last year. But the decision was stayed until Jan. 1 and then again to Feb. 11 to give the parties time to work out settlement details, including the issue of attorney fees and whether terms of the agreement would be subject to non-disclosure. OPA President Larry Perrone, announcing the settlement in a statement issued Feb. 16, said that the terms require the OPA to conduct a referendum in compliance with the December court order upholding Trendic’s challenge and procedures set out in Section 4.08 of OPA by-laws. Perrone also said the settlement agreement specifies that the OPA is to reimburse Trendic for court filing fees in the amount of $196.65. Not included in the agreement are Trendic’s legal fees owed

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Douty suit goes for another round in court After having his wrongful termination case dismissed, attorneys for the former human resources manager filed a motion for reconsideration

2019 several months after Douty, a former Human Resources manager for the OPA, was fired by former General Manager John Bailey. It turns out that the dismissal of the case isn’t the final chapter in the Douty legal drama. His attorney, Francis Collins of Baltimore, filed a motion for reconsideration on Douty’s behalf on Jan. 18. It was followed in turn by a

Trendic asks for donations for petition legal expenses

ormer Ocean Pines Association Director Slobodan Trendic is asking for donations to help defray expenses for his successful suit against the OPA to force a referendum on Board of Directors spending authority. “I wish to thank everyone who participated and supported my petition efforts. Our shared success was made possible with the excellent legal representation from our attorney, Mr. Bruce Bright,” Trendic said. “I am still responsible for the attorney fees so your financial contribution is most welcome.” Donors should make checks payable to Ayres, Jenkins, Gordy & Almand, P.A. and on the description line write: “Trendic case”. Trendic asks donors to send checks to the following address: Slobodan Trendic, 20 Drawbridge Rd., Ocean Pines, MD 21811. “I wish everyone a safe and healthy year and thank you for your generous support,” he said.

motion in opposition to reconsideration on Feb, 2, filed by attorneys for the OPA’s insurance company. Collins filed a number of supporting documents with his motion, including transcripts of depositions and affidavits of various OPA officials, both current and former. There also is a transcript of minutes of a closed board meeting on Jan. 5, 2019, in which Douty’s status with the OPA was likely discussed. He was fired after that meeting by John Bailey, then general manager of the OPA, on grounds that were never explained by the OPA. Douty said at the time that he was fired on the instructions of the board, in retaliation for the manner in which he handled a complaint against then Director Slobodan Trendic, who was exonerated after an investigation by Douty. Douty asserts in his suit that his firing was a violation of Board Resolution B-08, the OPA’s ethics and conduct policy, the same resolution cited by Colby Phillips, former OPA amenities and logistical operations director, in her recent complaint against OPA President Larry Perrone. 

By TOM STAUSS Publisher\ hen Ocean Pines Association oﬃcials learned that the Worcester County Circuit Court ruled in their favor in the Nate Douty wrongful termination suit, they probably thought the protracted legal drama was ﬁnally resolved. The court dismissed the case on Jan. 15. It was initially filed in July of

his attorney, Bruce Bright of Ocean Pines. The issue of attorney fees was left open in the December court order, with Trendic facing an uphill battle in a state where there is no loser pays statute or precedent for a losing defendant paying the legal costs of a prevailing party, absent a clear indication of bad faith. Bright on Trendic’s behalf had alleged bad faith in his original court filing because of the way that the board at the time treated the petition. But the board’s position was based on the legal opinion on the issue of the petition’s legality by OPA attorney Jeremy Tucker, which makes a bad faith argument unlikely to prevail. In addition to the issue of legal fees, Trendic told the Progress recently that lawyers for the OPA’s insurance company wanted a non-disclosure agreement as part of a settlement. That would have prevented Trendic from commenting on details of the agreement, which would have been evident or implied anyway when the board scheduled a referendum. Trendic told his attorney not to agree to any non-disclosure provision, and no such provisions was included in the settlement. In comments during the board’s Feb. 20 meeting, Perrone said the OPA was moving ahead with referendum planning and that an announcement of a public hearing would take place soon. A public hearing is a Section 4.08 requirement. Costs for the referendum estimated in a range of $20,000 to $30,000 will be absorbed in the current fiscal year that ends April 30. The board also is mandated under the by-laws to take a position on the referendum issue, and the expectation is that a majority of directors will oppose a change in the board’s spending authority. The judge’s order from last October mandated the OPA to carry out its duties under Sections 4.07 and 4.08 of the OPA by-laws and said he would “reserve” judgment on Trendic’s request for reasonable attorney’s fees. Section 4.08 (b) requires the board to conduct a public hearing on a valid petition within 60 days of a valid petition’s submission. That public hearing never occurred. The judge’s order implicitly rejected the notion that the petition had been improperly worded. Within 15 days of a scheduled hearing date, the OPA is required to send out a notice of the hearing to OPA members.

March 2021 Ocean Pines PROGRESS

OCEAN PINES

March 2021

Work group drafts ARC amendment to regulate short-term rentals Daly says final version will come up for board approval in March or April By TOM STAUSS Publisher he Ocean Pines Association is preparing to piggyback on county legislation regulating short-term rentals by adding new language to the Architectural Review Committee’s guidelines. OPA Director Frank Daly said the Short-term Rental Work Group has

drafted an amendment to the ARC guidelines that have gone to OPA attorney’s for a final review. Subject to any 11th hour tweaking, he said the short-term rental amendment will be presented to the Board of Directors for approval either in March or April. Short-term rentals are defined as properties that are rented for 28

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days or fewer. Daly, during a segment of the Feb. 20 meeting of the Board of Directors, said that there are currently about 180 homes that are rented shortterm in Ocean Pines, with that number expected to increase in the coming years. While the “vast majority” of these rental homes cause no problem. he said, “a small number cause extreme problems to the neighboring homes,” with complaints including excessive noise, unsightly trash, lewd behavior, and parking issues, all which can be construed as “disturbing the peace” of the neighborhood. He said that the proposed amendment strikes a balance between property rights and responsibilities, maintaining peace and calm in the neighborhoods and maintaining home values. The document was included in the board packet for the Feb. 20 board meeting, and Daly urged OPA members to check out the document before the board votes to approve it. The regulations say that owners of short-term rental properties or their agents will be required to

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obtain both a county permit and an Ocean Pines permit and rental sticker. OPA permits will be for one year only. A inspection of the home by a licensed Maryland inspector approved by the OPA Department of Compliance, Permits and Inspections will be required before a permit is issued. The draft amendment specifies that short-term rental homes without all-electric heating systems will have to be equipped with carbon monoxide detectors. Smoke detectors and fire extinguishers will be mandatory in all short-term rental homes. Each house will have to display a clear, unobstructed house number and the “proper” number of waste receptacles, a minimum of 35 gallons in size with a hinged lid. The “proper” number is not specified. The draft amendment says that the property should have a “proper” number of off-street parking spaces. These terms are more or less defined by a chart that sets the maximum number of occupants, number of waste receptacles and the number of off-street, “non-stacked” parking spaces according to the size in square foot of a homes’ finished area. The chart indicates a maximum number of occupants in a range of four to ten, depending on square footage. But the draft language adds that q

22 Ocean Pines PROGRESS

Douty lawsuit From Page 21 rone. The court in July of 2019 threw all but the wrongful termination count, and it literally took another year and a half for the court to rule on it. According to Collins, the OPA took the position that B-08 doesn’t really apply to employees and wasn’t designed to protect them. The OPA’s position with respect to B-08 is somewhat more nuanced, however. B-08 complaints can result from an aggrieved employee, but only if a complaint is written by a director on behalf of an employee, according to OPA officials. Douty’s suit was filed against the OPA and several directors, so the likelihood that any director would have been willing to file a B-08 complaint on his behalf is small.

OCEAN PINES

March 2021 Ocean Pines PROGRESS

From Page 22

no more than four individuals unrelated by blood, marriage or adoption may occupy a short-term rental. A comment in the margin by an unidentified work group member suggests that this provision may be unenforceable. The rental sticker issued by CPI “must be affixed to the front entry door of the property in a conspicuous location at eye level,” and must show the maximum occupancy of the residence, according to the draft. If property owners do not live within a 30-minute drive of Ocean Pines, then they will be asked to designate an “authorized adult representative” for the property. This agent is supposed to be given the authority to make decisions on the owners’ or renters’ behalf. Complaints against offending renters are to be promptly addressed and resolved by the owners or their agents, the draft amendment says. The proposed amendment adopts occupancy limits in the compan-

ion county legislation, based on the number and size of bedrooms. “If at any time the occupancy is contrary to the number of allowable renters ... or the life safety requirements are not in full compliance, then the rental permit shall be withdrawn and made invalid,” according to the draft. To obtain a permit, owners of short-term rental properties or their agents must agree to make the residence available “for inspection during reasonable hours upon request by the Association to very compliance” with ARC guidelines, the draft says. Permit fees will be set forth by a future board resolution. The enforcement mechanism in the draft amendment seems somewhat ambiguous. Short-term rental homes without permits or without proper egress or life safety equipment will be considered in violation of the “rental codes” and “must be immediately vacated” and not rented until “brought into compliance,” according to the draft document.

Viola confirms NorthStar POS software on hold at food and beverage venues Significant difficulties continue, and Significant difficulties continue, appears andthe theGM’s GM’spatience patience seems to tobe bewearing growingthin thin

By ROTA L. KNOTT Contributing Writer hile the issue wasn’t originally included in his Feb. 20 general manager’s report to the Board of Directors, when queried about the installation of the NorthStar software package at the Ocean Pines Association’s food and beverage facilities, John Viola said he has stopped that process. For how long is anyone’s guess. As a result of on-going problems with the new NorthStar software, the food and beverage operations will revert to using a pre-existing point-of-sale system until the fall, at the earliest. “Are we going to talk about the elephant in the room, the NorthStar

at the [Golf] Clubhouse?” Director Tom Janasek asked when seeing there was no update on the project in the monthly general manager’s report. Viola responded that he had addressed the status of the project at last month’s meeting and wasn’t planning to do so during the Feb. 20 meeting. But, he agreed to discuss the project anyway, while obviously reluctant to do so because the latest development isn’t exactly good news. The NorthStar system was installed at the Clubhouse Grille several months ago as a test site for food and beverage operations before rolling it out at the Yacht Club and

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March 2021

NorthStar software From Page 23

Beach Club because it is not as busy a site, Viola said. “We had update meetings with NorthStar top management there, explained all the issues that we saw, and the food and beverage team gave us their feedback,” he said. When he updated the Board on the project in January, Viola said he believed the problems were caused by lack of capacity and the vendors was going to address the issue. “They said that they would follow up immediately on changes. With that said, we monitored the situation. Ralph (DeAngelus of the Matt Ortt Companies) and I were continually in communication as well as with our team,” he added. Several weeks ago on a Saturday morning, Viola said DeAngelus texted to let him know there were significant issues with the NorthStar software at the Clubhouse. “I told Ralph we’ve got to pull the plug on it. I hate to use that term. I asked him how long before he can go back to the system that [we had used previously]. And this was all part of what we discussed. How to back up if this didn’t work out over X amounts of trial days.” Viola said it took about three days to revert to the previous point-ofsale system at the Clubhouse Grill. He noted that the facility was closed anyway on that Monday through Wednesday so there was no disruption to service. “I believe he got it up and running by Thursday,” Viola said of DeAnge-

lus re-implementing the previous POS software. “So we are back to the system we had there.” He said the OPA will continue to address implementation of the NorthStar software in what he called a “sandbox scenario,” instead of going live with it, outside of the food and beverage operations. As for implementation at the Yacht Club, Clubhouse Grille and the Beach Club, he said, “I put a hold on that.” Viola previously had indicated that the NorthStar POS software would be used at the Yacht Club this summer. Janasek thanked Viola for the update, saying “I just wanted some clarification. I figured everybody needed to know. We’ve invested a lot of time and effort and money into this NorthStar system, and I just want to make sure that the community knows that we’re taking this project seriously. And that we’re not going to let it interfere with our money-making operation of food and beverage. That’s all.” Viola agreed and said he will have a further update for the Board at its March meeting. In previous updates, Viola has urged patience and indicated that the vendors were cooperating in trying to resolve operational issues. Procedures are in place to address them as they arise, but the POS system at Matt Ortt Company venues has proven far more resistance to solutions. Server capacity has been identified as a reason for why NorthStar cuts out at some locations

OCEAN PINES

Stuart Lakernick announces another run for OPA board

r. Stuart Lakernick is the first Ocean Pines Association member to announce his candidacy for one of two seats to be filled on the Board of Directors this summer. He ran for the board last summer, capturing 1,149 votes in a third place finish behind Doug Parks and Colette Horn, both of whom ran as incumbents. In a Feb. 21 post on oceanpinesforum.com announcing his candidacy, Lakernick said he had been contemplating whether to run for the last couple of months. Lakernick is a chiropractic functional neurologist practicing in the Philadelphia area who is married to former OPA board member Dr. Stuart Lakernick Esther Diller. board, the first time in Ocean Pines’ Of the two seats that will history that the community failed be contested this summer, one to produce the minimum number of currently is filled by Frank Daly and candidates. the other by Frank Brown. Daly was The by-laws also say that the OPA elected three years ago and Brown president must appoint a candidate was appointed several months ago Search Committee no later than Feb. after the resignation of Steve Tuttle. 1, but that hasn’t happened either. The deadline to file is by close of Lakernick said that recent events business on Monday, May 10. in Ocean Pines triggered his decision Daly is considered a likely to run. candidate while Brown’s intentions “Considering recent events, it are unclear. Brown was recruited by has become crystal clear to me that OPA President Larry Perrone and I must run. Change is never easy, Vice-president Colette Horn. but change is what we need. It is Brown voted with Perrone and important to have elected officials Horn last year to remove Tom that are responsive to residents. I Janasek as a director after a need input from you, our community complaint by OPA General Manager on what you feel are the big issues John Viola. that need to be addressed,” he said. OPA by-laws mandate two more Lakernick said he would like candidates than the number of to “work on our severe drainage board seats to be contested, but that problems” while “offering our standard was not met last summer. employees a safe, non-hostile work Only three candidates ran for the environment, as well as helping our association to be fiscally responsible. These are the goals I will strive to achieve (if elected to the board).” He pledged to work “towards changing the unhealthy dynamics of the board and the toxic work environment that continues to Sunshine’s Proven Plan plague our community.” • BRIGHT MLS Multiple Listing He added that he wants “to make • MRIS Multiple Listing sure that we do not lose any more • Double Your Exposure good employees,” a reference to the • Complete Web Presence recent resignation of Colby Phillips, • Full Color Virtual Tour former OPA director of amenities • High Def Digital Photo Package Call and Ask About Our Buyers Advantage Program and logistical operations. • Open Houses Lakernick said board members • Experience Proven Results can have differences of opinions but • Get Your Money’s Worth still “can work in unity for what’s 3.95% Commission Broker/Ofﬁce: 410-600-3419 best for our association. I intend to make this a top priority. Thank you Ocean Pines and I will graciously be asking for your vote.” Resident Broker 9928 Old Ocean City Blvd., Berlin, Md. 21811 In a Feb. 21 interview, Lakernick MichaelRay@sunshinepropinc.com expressed disappointment in what he called a “hostile work environment”

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Viola touts innovative solution to aging drainage pipes Board approves $207,000 contract for cured-in-place pipe epoxy pipe liners By TOM STAUSS Publisher here is potentially some very good news regarding an innovative product, curedin-placed pipes or CIPP liners, that can be used to extend the useful life of corrugated metal drainage pipes located underground throughout Ocean Pines. The CIPP liners are a substitute for replacing the pipes, many of which run under Ocean Parkway. Without CIPP liners, or some other comparable solution, the OPA would be facing a very expensive and disruptive process of replacing the pipes, including tearing up the heavily traveled Ocean Parkway to install replacement piping. The liners are an epoxy product ‘blown into” underground pipes that coats the existing metal and then cures or hardens, extending the life of the existing infrastructure anywhere from 50 to 100 years. General Manager John Viola, in remarks during the Feb. 20 Board of Directors meeting, said the approach will be try the product in some areas where pipes are known to be failing. If it works as everyone hopes and expects, the plan will be to move to other areas, eventually extending the life span of about five miles of corrugated metal pipes. He said there’s a 50-year warranty on the material, but its lifespan can extend to 100 years. “It is a process that is well known [and] that

comes highly recommended,” Viola said, adding that county officials suggested it to Public Works Director Eddie Wells. Vista Design, the engineering consulting firm in nearby Showell that the OPA often calls in, reviewed the proposal and endorsed it, Viola said. A company based in Louisiana was the one selected over two others involved in a bid process conducted by Public Works Director Eddie Wells and Operations Manager Nobie Violante, assisted by Colby Phillips, former director of amenities and logistical operations. The firm chosen is Pelican Underground LLC of River Ridge, Louisiana. The successful bid was for $207,167.47, covering 632 feet of pipe in eight Ocean Parkway locations. Unlike some recent OPA contracts, this one was the low bid, with the closest bid from another Louisiana-based compnay coming in at $293,842. The third bid from a Montana-based company was $6,000 more than the second lowest bid. The Pelican contract was unanimously approved by the board during the Feb. 20 meeting. The work is planned for the current fiscal year, out of funds allocated for drainage this year. Viola said the contract amount is a significant savings to what the OPA was planning to spend on drainage improvements in these areas. “This is coming in well above a 50 percent savings,

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that he believes caused Phillips to decide to leave Ocean Pines. But he said it’s no longer just about Phillips and how she was treated. “It’s about the GM (John Viola),” Lakernick said, suggesting that he allowed two directors, Perrone and Horn, to interfere in operations to the point that Phillips no longer felt she was a valued employee in Ocean Pines. Lakernick also said that Viola failed to follow through on a mentorship that was set up to provide additional training to make it possible for Phillips to be promoted to GM when Viola retires. His contract runs through June of next year, but at least one director, Daly, has said he hopes Viola will be willing to extend his contract. Other directors would no doubt agree. Lakernick said that Viola “has been very quiet” in the Phillips resignation controversy and that he hopes the general manager will be more vocal and dynamic in fighting back against board interference in operations. Lakernick added that with Phillips’s resignation and earlier decision to take herself out of the running to succeed Viola, the OPA’s succession planning has been derailed. “We don’t have anyone as a logical successor to Viola. We don’t have a plan,” he said. In a recent post on oceanpinesforum, Lakernick was critical of the slow roll-out of NorthStar software, particularly the point of sale system at OPA food and beverage venues. “We were promised a system that would make life easier for the folks who run our community,” he said, but it hasn’t delivered. “Why can’t this system do the most simple of things in our restaurants? Like add a beer on to a bill or split a check? The system is down more than it is up. I would like to hear from other departments. They won’t post here for fear of retribution. The vendor over promised and sold us a piece of crap software that doesn’t work,” he said. Viola recently disclosed that implementation of the NorthStar point of sale systems at the Golf Clubhouse Bar and Grille is on hold, and it won’t be ready for the Beach Club this summer, either. He had previously announced that NorthStar’s POS system wouldn’t be used be used at the Yacht Club this summer because of implementation difficulties.

March 2021 Ocean Pines PROGRESS

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Bertino amendment increase number from six in the underlying bill

By ROTA L. KNOTT Contributing Writer n a last minute amendment, the Worcester County Commissioners during a Feb. 16 legislative session voted to increase the number of internal electronic messaging signs the Ocean Pines Association will be allowed to one-on-one complimentary, no obligation * (0.00%) TAX-FREE 3.25 TAX-FREE* ct me at 410-208-1704 for a% oneoron one complimentary, or throughout the community. consultation attend our seminar.no obligation, consultations place attend our seminar. Call for times, and location. Call for times, date anddates location Following a brief public hearing on Bill 21-2, all five commissioners voted on an amendment to allow up to eight Prince Georges Md (Name of MuniCnty Bond) signs instead of the recommended six. Carrie Dupuie, AAMS 98.500 Price: (00.00) Carrie Dupuie, AAMS® My picture The bill adds a new subsection to allow internal community signs within a residential development for the purCoupon: (00/00/00) 3.25 (Financial Advisor Financial Advisor Name) Financial Advisor here pose of conveying community events, amenity and emergency information only, with standards for their placement Maturity Date: 07/15/2036 (00/00/00) (Approved Title) 215 North Main Street 07/15/2028 Callable Date: (00/00/00 or N/A) and design. The internal community signs must be located within the boundaries of an established community 215 North Main Street 100 Call Price: (000) Berlin, MD 21811 like Ocean Pines and cannot include any commercial advertising message unassociated with the community. Berlin, Aaa /MD AAA 21811 Rating: (XXX/XXX) (Address) Ed Tudor, county director of development review and permitting, said his staff worked with representatives Other:410-208-1704 (Obligor) 410-208-1704 (City, ST 00000) from the OPA for about a year to craft the proposed text amendment to the county’s zoning code to allow the Carrie.Dupuie@RaymondJames.com (000-000-0000) I (Toll-Free: community messaging signs. He noted that the Worcester County Planning Commission reviewed and endorsed Carrie Dupuie, AAMS 800-000-0000) Raymond James(Financial Financial Services Inc.,Name) Member FINRA/SIPC Advisor (Approved Title) vestments advisory services offered Raymond James Financial Services Advisors, Inc.the bill. During the planning commission meeting, OPA’s representatives asked to amend an earlier draft of the Fax:through (000-000-0000) (Address) (E-mail (City, STAddress) 00000) (000-000-0000) I (Toll-Free: 800-000-0000) (Website) Fax: (000-000-0000) favorable to pipe replacement at of all accumulated debris and care (E-mail Address) Drainage (Website) must be taken to make sure any $1,000 per foot. From Page 25 He suggested that a plan to install standing water in the pipes escapes compared to the conventional the liners should be developed the cavity between the existing pipe Subject to availability and price change. Minimum purchases may apply. The yield is the lesser method that we have been using all similar to the multi-year program and line prior to or during the liner of yield to maturity or yield to call. Interest is generally exempt from federal taxation and may also be free of state and local taxes for investors residing in the state and/or locality where of replacing bulkheading in Ocean inflation process, he said, adding, along,” he said. the bonds were issued. However, bonds may be subject to federal alternative tax (AMT), and profits and losses on tax-exempt bonds may be subject to capital gains tax treatment. RatDirector Frank Daly, who called Pines. There is a new drainage “otherwise trapped water could lead ings by Moody’s/Standard & Poor’s. A credit rating of a security is not a recommendation to 8 buy, sell or hold the security and may be subject to review, revision, suspension, reduction or withdrawal at any time by the assigning Rating Agency. Insurance pertains only to the timely the emergence of CIPP liners “some reserve fund, split out last year from to bulges in the liner and possibly payment of principal and interest. No representation is made to any insurer’s ability to meet its d price change. Minimum purchases may apply. The yield is the lesser of yield to maturity or yield to call. Interest is generally exempt financial commitments. Ratings and insurance do not remove risk since they do not guarantee the roads reserve, which will be alter the existing invert of the of the better d may alsothebemarket free ofvalue stateof and local taxes for investors residing in the state and/or locality where the bonds were issued. However, news” on drainage that the bond. federal alternative minimum tax (AMT), and profits and losses on tax-exempt bonds may be subject tothe capital gains tax treatment. funded in 2021-22 from casino local drainage network.” OPA has received, said their Securities offered through Raymond James Financial Services, Inc., member FNRA/SIPC. ndard & Poor’s. A credit rating of a security is not a recommendation to buy, sell or hold the security and may be subject to review, (c) 2015 Raymond James Financial Services, Inc., member FINRA/SIPC 15-MFI-0113 ICD BS 8/15 Polk also said that care will impact revenues. $236 per foot cost compares very uction or withdrawal at any time by the assigning Rating Agency. Insurance pertains only to the timely payment of principal and intermade as to any insurer’s ability to meet its financial commitments. Ratings and insurance do not remove market risk since they do Daly has said that the board will need to be taken “to understand t value of the bond. need to establish a funding source the composition of any by-products h Raymond James Financial Services, Inc., member FINRA/SIPC. for the CIPP program, with an produced through the pipe curing annual budget allocation from lot process and to capture any harmful by-products before they are released assessment revenues. es Financial Services, Inc., member FINRA/SIPC 15-MFI-0113 ICD BS 8/15 The locations in the initial trial into the surrounding eco-system. “A few of the CIPP systems we phase approved as part of the contract with Pelican include Ocean explored several years ago generated Parkway at Route 90, 215 Ocean caustic fluid by-products as a result Parkway, 159 Ocean Parkway, 736 of the curing pipe that were deemed Ocean Parkway, 30 Offshore Lane, ‘possibly’ harmful to aquatic life if the four-way intersection at the released. Capture of harmful fluids South Gate (Manklin Creek Road is typically performed through and Ocean Parkway), 102 Robin the use of cofferdams and vacuum Hood Trail, and Fosse Grange. trucks,” he said. In an letter to Wells and Violante Polk also advised the OPA to fully and copied to Phillips. Vista Design understand the drainage network to 800-K S. Salisbury Blvd., 16-B South Main St., engineer Richard F. Polk said the be lined with CIPP. Berlin, MD Salisbury, MD (1 block south of Atlantic Hotel) product has been used by his firm’s “The lining process is fairly (Next to the Greek Pita Place Restaurant) clients on the other side of the Bay typical if the pipe to be lined is a M & F 9-7 • T-W-TH 9-5:30 • Sat 9-3 Bridge. straight section with no incoming Mon., Tues., Thurs. & Fri. 9 a.m. to 4:30 p.m. His firm “found it to be a cost- feeder pipes, but care should be GIVE THE GIFT efficient method for lining failing taken to understand the exact OF SIGHT pipe networks. The obvious benefits location of any feeder pipes, and to of the CIPP method include limited, ensure that the incoming pipes are Make an Appointment EVERY FRAME or no, disruption to overlying streets cut open following the line process for a Loved One IN STOCK or driveways, reduced time to of the main pipe.” With Purchase of Rx Lenses. Includes GIFT CERTIFICATES Designer Frames. Outside Prescriptions Welcome. As part of the bid package posted perform the repairs, and reduced Some Restrictions Apply Expires 3-31-15 AVAILABLE costs compared to open cut pipe on the OPA Web site, Wells posted two favorable recommendations on replacement.” We accept many vision insurance plans. Ask us about YOURS. Installation of the product does behalf of Pelican. One was by a staff Then make your appointment at: Salisbury Optical or Berlin Optical involve “several areas of concern” engineer with Lafayette County in Louisiana and the other came from that must be addressed, Polk said. The existing pipe must be cleared a city engineer in Oxford, Miss.

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

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OCEAN PINES proposed legislation to increase the number of signs allowed under the proposed change from four to six. The planning commission agreed to the amendment, which was included in the proposed bill presented to the commissioners. Commissioner Chip Bertino asked if even six signs are enough for a community like Ocean Pines. He questioned language in the bill specifying that no more than six signs are permitted for any community. “My understanding is in talking with some of the members of the planning commission as well as Ocean Pines, that there was some discussion about more than six signs at that meeting. Is that correct?” he asked Tudor. “There were a lot of number thrown around. Some smaller. Some greater,” Tudor responded. Bertino asked if increased the permitted number of signs from six to eight “would that be a big deal?” Tudor said it would not be an issue because the signs are internal to the community, are not going to be seen by the general public outside of Ocean Pines, and are limited to advertising community messages and events. Bertino pointed out that there are currently more than a dozen messaging signs located within Ocean Pines. “There’s a lot of them,” Tudor agreed. “Yes, there are,” Bertino agreed, adding the ability to have electronic signs that can easily change messages would be a time saver and a benefit to the community, particularly in an emergency situation. “If we were to increase that number to eight instead of six would it really be a problem?” he asked. “It doesn’t cause me any angst by any means,” Tudor responded. Commissioner President Joe Mitrecic asked if that change would have to go back to the planning commission for consideration. Tudor said no, it would not. The commissioners have the authority to amend the bill as deemed necesssary, he said, The OPA requested the code change so it can install new signs to share news with Ocean Pines property owners and residents about clubs and activities as well as emergency information. Colette Horn, OPA vice president, was the only person to speak during the public hearing on the bill and offered few comments. She stressed

March 2021 Ocean Pines PROGRESS the public safety importance of having the signs and noted that “they will not be seen by individuals outside the community.” The bill adds a new subsection the county zoning code to allow internal community signs within a residential development for the purpose of conveying community events, amenity and emergency information only, with standards for their placement and design. The current sign regulations limit a residential development to no more than two community or geographic region identification signs and restrict the verbiage to the identification of the community or region only. Generally, these signs are located at the entrance to a community. The text amendment will allow a community to have internal signs for the display of information such as community events or emergency directives, but not for a commercial marketing message unassociated with that respective community. The code change is not be limited to Ocean Pines, but would be applicable to any established community or subdivision. Under the proposal internal community signs must be located within the boundaries of an established community as shown on a site plan or subdivision plat approved by the Planning Commission. The signs will be permitted in any residential, estate, or village zoning district in the county. The signs will not be subject to any yard setback requirements, but they cannot project over any property line or road right-of-way. The sign must be of a monument design and cannot exceed either 40 square feet in area or ten feet in height, including the base and face of the sign. Where the grade at the sign base is below the road center line, the area in which the sign is situated may be bermed to the center line grade. All signs must be setback a minimum of 450 feet from the perimeter boundary line of the established community and separated by not less than 100 feet from any other sign on the same parcel or lot. The commissioners unanimously approved Bertino’s amendment to increase the number of permitted signs from six to eight and the amended bill. Commissioner Jim Bunting provided a second to both motions. Bertino and Bunting represent different areas of Ocean Pines.

Viola not planning to replace Phillips Work load to be distributed to other department heads BY TOM STAUSS Publisher he resignation of Colby Phillips, director of Amenities and operational logistics, has created a challenge on how to distribute her duties to other department heads. A decision has been made not to replace her, General Manager John Viola said during the Feb. 20 meeting of the Board of Directors. About half of her salary was allocated to the Aquatics department, with the rest distributed to all three racquet sports and some to beach parking. Katheen Cook, director of aquatics, will absorb the aquatics-related duties previously handled by Phillips, Viola said, including budgeting and detailed record-keeping Phillips was known for. The general manager said Phillips will continue to teach her swimming fitness classes through the current cycle that ends in March. She will be paid as a part-time instructor. But he said that Cook will be prospecting for replacement instructors to start new class cycles that begin after April 1. That’s been a real challenge, because some instructors who have worked before in Ocean Pines have been reluctant to come back while the covid pandemic persists. Phillips’s public relations duties, fielding questions from property owners and following up to make sure issues raised previously have been addressed, will be delegated to Linda Martin and Michelle Bennett, Viola told the Progress. Martin is the office manager of the Public Works Department and Bennett is the senior executive assistant whose office adjoins Viola’s in the Administration Building. There already is a three-level process in place to handle phone calls and emails, but Viola said Martin will be keeping a data base of all calls and emails. Many calls and emails will be forwarded to Public Works, which gets the bulk of calls already, Viola added. Beautification efforts, including those designed to improve the gate entrances into Ocean Pines as well as Cathell Road Extended, will now be handled by Recreation Department Director Debbie Donahue, Viola said. Bainbridge Park drainage improvements will be handled by Public Works Director Eddie Wells and Nobie Violante, operations manager in the Public Works Department. They were involved previously, working with Phillips. Racquet Sports will come under the supervision of Donahue, Viola said, with Tennis Director Terry Underkoffler reporting to her and Facilities Director Tim McMullen reporting to Underkoffler. “That’s what Tim wanted,” Viola said, while emphasizing that the two work closely as a team. The Ocean Pines Academy project will continue to be directly supervised by the Marketing and Public Relations Department, with Director Josh Davis and marketing coordinator Julia Malinowksi both heavily involved. All departments are participating, and Colby Phillips will be featured in some of the videos, Viola said. Phillips’s involvement with the Strategic Plan initiative will be delegated to either Steve Phillips, director of finance-controller, a new title bestowed by Viola, or accounting manager Julia Johnson. “Probably Julia,” Viola said. Viola said he wishes Phillips well in her new endeavor and said he appreciated her years of dedicated service to Ocean Pines.

Ocean Pines PROGRESS March 2021

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OCEAN PINES

March 2021 Ocean Pines PROGRESS

OCEAN PINES BRIEFS OPA Board election process gets underway

The Ocean Pines Elections Committee has announced important dates for the 2021 election process, including filing and voting deadlines, and dates for two candidate forums. This year, two seats on the Board of Directors will be up for election: those currently held by directors Frank Daly and Frank Brown. Ocean Pines’ Resolution M-06 calls for at least two more candidates than open seats, meaning the Association is seeking four or more candidates in 2021. The deadline to file is by close of business on Monday, May 10. Applications are available at the administration building or on the Ocean Pines website. Other election dates include: Candidate Draw (to determine ballot order and seating during candidate forums) - Friday, June 4 at 10 a.m. Venue TBD First Candidate Forum - Wednesday, June 9 from 7-9 p.m. in the Assateague Room of the Ocean Pines Community Center Second Candidate Forum (if needed) - Saturday, June 19 from 10 a.m. to noon in the Assateague Room of the Ocean Pines Community Center Ballot Deadline - Wednesday, Aug. 11 by close of business Ballots Counted and Vote Totals Announced - Friday, Aug. 13 starting at 10 a.m. Annual Meeting - Saturday, Aug. 14.

Director of Golf John Malinowski (right) giving a lesson on the new Foresight GCQuad launch monitor.

New launch monitor at golf club enhances lessons, club fittings

Horn provides update on OP Academy

Ocean Pines Association Director Colette Horn supplied an update Feb. 20 on the Ocean Pines Academy. Horn said Marketing Coordinator Julie Malinowski is leading the Ocean Pines Academy project, with roll-out expected in early spring, prior to the next Board of Directors election. “I certainly encourage the members to keep on the watch for that, because I think it’s going to provide some excellent information for people who may consider stepping up and participating either in our advisory committees, or running for the Board,” Horn said. Horn said the Communications Committee would next work to archive historical documents and artifacts related to Ocean Pines. “I know we have a lot of history buffs in this community, and the Communications Advisory Committee is looking for additional volunteers to help with that effort,” Horn said. Lastly, Horn said the Ocean Pines YouTube channel is an important resource for the community “that is currently underutilized” and has few subscribers. As of Monday, Feb. 22, the channel has only 260 subscribers. Horn said if that number reaches 1,000, Ocean Pines may be able to livestream future Board meetings, once those return to an in-person format. “I encourage the membership to subscribe to our YouTube channel, so that we can get those numbers up and get more full-functionality,” she said.

Several projects pushed off until spring months

In his general manager’s presentation at the Feb. 20 Board of Directors meeting, General Manager John Viola said the OPA would be waiting for the spring months before undertaking two projects. One is the Robin Hood Park upgrade, which is due for new playground equipment and cosmetic improvements. The other is the White Horse Park/ Administration Building parking lot repaving. Additional parking spaces are planned for the area once occupied by the Pine’eer Craft building, demolished last year and replaced with a new building in White Horse Park.

Board approves donation to ‘Wall that Heals’

On a motion by OPA President Larry Perrone, the board unanimously approved at $1,000 donation to the Worcester County Veterans Memorial Foundation to help offset the cost of bringing in the Wall that Heals, a portable three-quarters replica of the Vietnam War Memorial in Washington, D.C., to Ocean Pines. The foundation will host the Wall that Heals on site at the Worcester County Veterans Memorial from April 20 through April 25. Perrone offered his motion during the Feb. 20 meeting of the OPA Board of Directors. He said the foundation’s goal is to raise $30,000, with the intent of raising the funds prior to the replica’s arrival in Ocean Pines “out of respect for our veterans.”

ndividual instruction and club fittings at Ocean Pines Golf Club with PGA General Manager of Golf John Malinowski now feature the Foresight GCQuad Launch Monitor. This state-of-the-art technology can be used to help personally fit clubs to an individual’s swing by ensuring the correct loft, life and shaft. It is compatible with Ocean Pines Golf Club’s TaylorMade club fitting system and other golf club manufacturers. Professional club fittings ensure that the purchase of a new set of clubs is a worthwhile investment. “Every golfer is built differently and has different swing characteristics, which is why it is so important for golfers to have clubs that are fit specifically for them,” Malinowski said. “Properly fit clubs will help the golfers play and make better contact with the ball, which will ultimately help them to score better.” The price for a full club fitting, which includes irons, woods and putter, is $50. A fitting for irons only is $40. A woods fitting is $30, and a putter fitting is $20. The new launch monitor can also be used in private golf lessons for all ages by determining club path, face angle at impact, club head speed, distance, and point of contact on the clubface to enhance the personalization of instruction. A 30-minute lesson for ages 14 and under is $20. Adult lessons are $40 for 30 minutes and $70 for 60 minutes. “The indoor hitting bay can also be used for lessons in cold and inclement weather without the need for rescheduling or wearing bulky clothing or jackets,” Malinowski said. “This time of year, it allows golfers to get professional instruction to help make their game better now, instead of waiting several months for the weather to improve.” Appointments for private lessons or club fittings can be made by calling the Golf Shop at 410-641-6057 or emailing jmalinowski@ oceanpinesgolf.org.

Mosquito contract approved for another year

Around this time every year, the Board of Directors is presented with a sole-source contract for mosquito spraying in Ocean Pines, offered through the Maryland Department of the Environment. The cost of this year’s spraying is $19,000, a modest increase over the current year. The motion presented by OPA President Larry Perrone to approve this year’ contract was unanimously approved by the board at its Feb. 20 monthly meeting.

OPA FINANCES

March 2021

Board approves 21-22 budget, sets base assessment at $996 Eleventh hour expense savings reduce increase to $10, down from $35 and $121 in earlier budget versions By TOM STAUSS Publisher cean Pines Association members who had thought they would be paying a $1,021 base lot assessment when bills are sent out in a few weeks received some welcome news when the Board of Directors voted Feb, 20 to raise the base assessment by only $10 to $996. It was quite a climb-down from a $121 increase

called for in the proposed draft budget unveiled by General Manager John Viola this past December. A later draft of the 2021-22 budget called for a $35 increase, which would have raised it to $1,021. The base assessment rate was set as part of the 2021-22 budget approved in a 6-1 vote on Feb. 20, with only Director Tom Janasek voting

APPROVED OCEAN PINES ASSOCIATION BUDGET 2021-2022

BULKHEAD FUNDING REPLACEMENT FUNDING NEW CAPITAL FUNDING DRAINAGE FUNDING ROADS INTEREST

1,058,850 1,685,059 183,210 352,500 2,500

BULKHEAD/DRAINAGE EXPENSE CAPITAL EXPENDITURES TOTAL

1,368,221 1,047,970 16,306,299

15,440,371

865,928

no. The waterfront rate for lots with OPA-maintained bulkheading was set at $1,611, a waterfront differential of $615. The approved budget calls for total revenues of $16,306,299, including $13,034,180 in departmental revenues. Other revenues include bulkhead reserve funding of $1,058,850, replacement reserve funding of $1,685,059, new capital reserve funding of $183,210, drainage funding of $352,500, and roads reserve interest of $2,500. Revenues from the OPA share of casino local impact funds, normally allocated to the roads reserve, instead were shifted into the drainage reserve on the recommendation of Viola. The approved budget calls for total spending of $15,440,371, made up of $13,024 in department operational expense, $1,368,221 in bulkhead/ drainage expense, and capital expenditures of $1,047,970. The capital expenditure budget includes $73,000 for new pickleball courts, a junior tennis court and new fencing at the Manklin Meadows racquet sports complex. Viola has been trying to shift this expense into the current fiscal year, but permitting issues might force the project, at least a portion of it, into next year. The capital budget envisions it will be paid for out of the New Capital Reserve in 2021-22. Other notable planned capital expenditures for 2021-22 include $100,000 for bridge improvements on Clubhouse Drive near the new golf clubhouse and replacement railing on the North Gate bridge at an estimated cost of $110,000. All things considered, it’s a relative light year ahead for capital expenditures, especially compared to the last couple of budget cycles. The net positive is $865,929, which constitutes retained earnings and will serve to bolster the OPA’s balance sheet and reserve funds. Funding of the various OPA reserve funds totals $3,282,119, while projected spending out of those reserve totals $2,416,191. With the $865,928 positive net difference, the OPA is close to its goal of building its reserve funds to about 22 percent of its asset base, Viola told the Progress. The department operations portion of the budget is revenue-and-expense balanced at $13,034,180. No funds from the expected operational surplus of $650,000, less some additional expected before the end of the fiscal year, are being budgeted for use in 2021-22 operations. Board members and members of the Budget and Finance Advisory Committee and Viola all agreed that any operating fund balance at the end of the current fiscal year should be held back to cushion any possible shortfalls should covid pandemic restrictions remain in place and adversely affect net revenues in beach parking and aquatics, the two departments that were the most adversely affected by covid capacity restrictions this past year. It is not known whether the state will allow pools to return to 100 percent capacity this summer. They’re currently operating at 50 percent or less. The Beach Club pool last summer was restricted to 40 people, including staff, which greatly affected access to this popular summer q

30 Ocean Pines PROGRESS

OPA FINANCES amenity. That probably affected the number of people and volume of business at the Beach Club food and beverage operation, as did concerns about covid. Association President Larry Perrone said changes in the budget that allowed the projected increase in the assessment to drop from $35 to $10 included removing salary and medical benefit costs made possible by the recent departure of Director of Amenities and Operational Logistics Colby Phillips, as well as a $100,000 decrease in projected health insurance premiums. The latter resulted from the OPA’s broker delivering better than expected news on premiums literally days before the board was scheduled to approve the 2021-22 budget. “We were anticipating a premium increase,” Perrone said. “The original information we got from our broker was [that] it would be at about $300,000. On Thursday (Feb. 18), they advised us that the new estimate was a reduction of about $100,000.” The board vote approved amenity fees and other service fees that remain unchanged from the previous iteration of the budget. [See article and graphics elsewhere in this edition of the Progress.] The budget process started last fall, when department heads used a bottoms-up approach in crafting the budget at the direction of Viola, who instructed each department to give budget estimates without specific adjustments related to the COVID-19 pandemic. After a thorough review by Viola, OPA Director and Treasurer Doug Parks said the budget went through public review by the Budget and Finance Committee and the Board of Directors. It was also posted to the Association Web site, and the board held a public virtual hearing on Feb. 6 “to present the budget to the membership and have an open discussion with the membership to address any questions or concerns,” Parks said. Parks thanked Viola and Director of Finance and Operational Logistics Steve Phillips, who subsequently has been given a new title, Director of Finance-Controller, for helping with some lastminute calculations, which helped to lower the assessment to $996 from the earlier estimate of $1,021. “Kudos to them for the quick turnaround,” Parks said. “I think they did a yeoman’s job in getting this information, so we can have an updated budget that better reflects the real needs of the Association with regard to expenses and the overall annual assessment.” Janasek said he would not vote for the budget, because of those last-minute changes. “I just haven’t had a chance to review it diligently enough to vote ‘yes’ on this,” he said. Director Frank Daly praised the new budget and said he had requested many of the final changes. “I think this budget has been put together in a very concise manner,” he said. “We asked the general manager and his team to put one [together] from the bottoms-up and they did it. [And] things were very carefully reviewed by the Budget and Finance Committee.” Daly said the final assessment increased over

March 2021 Ocean Pines PROGRESS

Amenity rates, user fees adopted with 2021-22 budget By TOM STAUSS Publisher he 2021-22 Ocean Pines Association budget approved by the Board of Directors Feb. 20 adopted amenity fees included in the previous version of the budget without change. The daily tennis fee for residents and owners is $10. The daily tennis fee for non-residents is also $10. The daily pickleball and platform tennis fees for residents and owners remain unchanged at $6. Daily pickleball and platform tennis fees for non-residents have been set at $7. As proposed in the initial budget draft, golf membership rates have increased from $2,300 to $2,400 for families and from $1,325 to $1,500 for individuals. Afternoon golf memberships have increased from $1,365 to $1,650 for families and from $875 to $950 for individuals. Members-only unlimited use cart fees have increased from $1,900 to $2,100 for families and from $1,300 to $1,400 for individuals. Daily rates for non-member Ocean Pines residents, owners and guest play have increased $5 over current rates in the April to October peak season. Current rates are $49 before 12 p.m., $44 from 12-3 p.m., and $34 twilight, including carts. Non-peak season rates will remain at $30. Rates for public play have increased $5 or $10 depending on time of day and season. Beach parking passes for individuals and families have increased from the current $180 to $200. There is no change in the $125 beach parking fee for those with other amenity memberships. Tennis membership fees have dropped, from the current $435 to $380 for families and from $270 to $220 for individuals. Platform tennis and pickleball rates have increased, from $260 to $280 for families and $155 to $170 for individuals. Swimming membership rates for families and individuals have not changed. Summer rates remain at $325 for families and $195 for individuals. Winter rates stay at $460 for families and $300 for individuals. Yearly rates remain at $600 for families and $385 for individuals. Daily user and coupon debit card fees would also remain the same. They currently aren’t be sold, and probably won’t be until covid capacity restrictions are lifted at the pools. Boat slip rentals at the Yacht Club have increased from $1,872 to $1,947 for boats 15 to 25 feet, from $2,548 to $2,649 for boats 26 to 39 feet, and $3,594 to $3,738 for boats 40 to 44 feet. Swim and Racquet Club slip rentals have increased from $1,352 to $1,406.

the prior budget “exactly at the rate of inflation.” “Just like everybody’s household, Ocean Pines faces inflation and we’re managing to do what we’re doing and still keep [within] that inflation rate,” he said. Parks said he received questions about a projected surplus from the current fiscal year, and why that wasn’t used to help reduce the assessment. “Unfortunately … it doesn’t really work that way,” he said. “Retained earning allows us the flexibility to address any issues that may be out of our control due to COVID restrictions continuing through the upcoming fiscal year. So, I think it’s a prudent and conservative approach to keep the money in retained earnings, anticipating that we may have to make some adjustments in … the revenue that we won’t realize if certain restrictions are put on activities,” he said. Parks specifically mentioned Recreation and Parks, Golf, and the Yacht Club as departments that could suffer revenue losses if pandemic restrictions continue.

Actually, during the budget review process, most of those department heads expressed optimism about the waning effects of covid on their operations. The two departments that Parks didn’t mention, aquatics and beach parking, are the two cost centers that are most at risky by continuing capacity restrictions. “We just wanted to make sure that retained earnings are being used appropriately,” he said. Viola said another thing the new budget would do is end prior-year deficits that, at one point, totaled roughly $1.6 million. “Our team, along with this board, we inherited somewhere around $1.6 million of deficit,” he said. “With this budget … that deficit is going to be wiped out. “Part of that [deficit] would have been part of the assessment to pay it off – we didn’t need it,” Viola continued. “This Board over the last three years, and your team [of staff], we covered that $1.6 [million].” Actually, that is projected to occur in the current fiscal year, with the operating fund likely to end up surplus.

32 Ocean Pines PROGRESS

OPA FINANCES

March 2021

Board approves $1.095 million in bulkhead spending in 2021-22 Fisher Marine awarded contract at a cost of $365 per linear foot By ROTA L. KNOTT Contributing Writer t a cost of $1.095 million, the Ocean Pines Association will replace 3,000 linear feet of bulkhead during fiscal year 20212022. The Board of Directors approved a capital purchase contract with Fisher Marine for the annual shoreline protection program during a Feb. 20 meeting. General Manager John Viola presented the capital request, without documentation of which bulkheads are scheduled for replacement. Director Doug Parks wanted to know the location of the bulkheads. “What sections are they targeting right now?” Parks asked. “I think the folks would like to know what section will be targeted with this next investment.”

Viola said he did not have that information available for the meeting but would have it posted on the OPA’s website. “We have all that. I’ll have them put it on the website. I just don’t have it in front of me right now. But we will definitely put that out there,” he said. Actually the information was already available on the Web site, tucked inside the 2021-22 budget document available in the Finance Department section. It’s somewhat difficult to determine what’s being planned for the current year and in 2021-22, as the project has lagged behind schedule somewhat. Some previously scheduled replacement has been shifted into 2021-22. The information posted on-line shows the work will be completed

on lots along Pintail Drive and Crab Cay Court. Under the contract, Fisher Marine will install new vinyl bulkheads on Pintail Drive lots 8 through 50 and Crab Cay Court lots 3 through 12. Viola requested authorization to proceed with the staff recommendation to award the contract to Fisher Marine at a cost of $365 per linear foot for a total expenditure of $1.095 million, which is $502,053 under budget. A second bid for the project was received in the amount of $1.17 million from Brittingham Construction and Landscaping. Despite the impact of the COVID-19 pandemic and various price increases for construction materials, Viola said the contract price offered by Fisher Marine is in line

Martin to guide update of DMA reserve study

inda Martin, the office manager for Ocean Pines Public Works, will lead an effort to update a study of Ocean Pines’ replacement reserves. Ocean Pines Association General Manager John Viola made the announcement in a meeting of the Budget and Finance Advisory Committee in later January. The OPA originally commissioned the study in 2015, hiring Virginia-based firm Design Management Associates Inc. (DMA) to do the work. Once the initial study was done, Doug Greene, reserve specialist and partner with DMA, presented his findings to the Ocean Pines Board in 2016, which included a recommendation of the necessary level of Ocean Pines reserves, based on its assets. DMA used proprietary software to make the calculation. The Board last reviewed the study in 2018. Starting in February, Martin will work to update the contents of the study. “Linda will be reporting to me as we review and update the fixed assets register,” General Manager John Viola said. Viola said Martin would interact with Director of Finance Steve Phillips, Accounting Manager Julia Johnson, and the Ocean Pines Budget and Finance Committee. “She will also meet with all department heads to receive their input on the updates,” Viola said. “Following that, she will engage with Doug Greene

from DMA, who will use their software to update our calculations and determine the overall status.” After Ocean Pines and DMA update the register and confirm the calculations, Viola will host a virtual town hall, when Martin and the Budget and Finance Committee will present the results. Martin was born and raised in Maryland. She majored in Linda Martin accounting at Anne Arundel Community College and started her career with the Department of the Army. Martin has held other financial-related positions in retail, medical and community-based organizations. She worked for the Public Works/CPI Department from 2006-2017 as an office coordinator. Last October, Viola reached out to Martin and asked her to return to Ocean Pines as an office manager in the Public Works department, which she accepted. A expedited review of the reserve study has been a top priority of the budget and finance committee. Martin’s appointment by Viola is an effort to accommodate.

with bulkhead replacement program costs in the past. “This is basically the same request that I came forward with last year with this same time-frame and the same type of savings,” Viola told the Board of Directors. He said staff conducted the bid process and is asking for approval for the capital expenditure earlier this fiscal year in order to get the project moving. He noted that there will be some additional related capital project costs that are not part of the Fisher Marine contract. Those costs include sod and in-house labor from the Public Works department. He said those additional expenses are included in the OPA budget but are not part of the bid. Parks asked if the amount of linear feet of bulkhead scheduled for replacement this coming year is the same as that replaced by the OPA in previous years. “Are you comfortable that it will be consistent with the amount of linear feet we’ve been putting in on average for the past couple of years?” “Absolutely, Doug,” Viola said, adding that contractors for the homeowners’ association have typically been replacing 3,000 to 3,097 linear feet of bulkheading per year. Director Tom Janasek offered a motion to award the contract to Fisher Marine, and the motion carried unanimously. Fisher has been getting most of the bulkhead replacement work in Ocean Pines since Viola has been general manager.

Board sets interest rate for late payments at six percent

roperty owners in 2021-22 who pay their lot assessments after the due date of June 1 will be subject to an annual delinquency interest rate of six percent, prorated by the month. It’s normally not imposed until the payment is 30 days late. The Board of Directors set the rate, which is the same as in the 2020-21 fiscal year, at the Feb. 20 monthly board meeting, on a motion offered by Treasurer Doug Parks. The rate conforms with language in the Maryland Homeowners Association Act. When he served on the board, former Director Slobodan Trendic pushed the board to set a rate that complies with state law.

March 2021 Ocean Pines PROGRESS 33 said, with revenues collected from these lots allocated to Exhibit X. When the existing Marina Club loan is paid off and a new loan in place, at an interest lower than the current six percent, then the reason for Exhibit X will disappear and Hearn announces transition of Cove management to Indigo Golf all assessment dollars will become available for Cove operational exBy TOM STAUSS penses, Hearn said. Publisher In turn, the Cove’s balance sheet he Feb. 23 Board of Directors will look better and bankers will meeting of the Captain’s Cove look more favorably on the Cove as Golf and Yacht Club (CCGYC) a commercial borrower, he said. may be regarded as the one of the The assessment increase would significant in the history of the Caphave occurred during the current tain’s Cove community. fiscal year, but the board decided to There were three notable disclohold the line for one more year besures. cause of the Covid pandemic, Hearn Colby Phillips, who had resigned said. 16 from her management role in The board voted unanimously to Ocean Pines, was announced by authorize L&H to begin the process Cove President Tim Hearn as Capof developing the 2021-22 budget intain’s Cove new Senior General cluding the $200 per lot increase, in Manager, with all department heads two six month installments of $700 reporting to her. Justin Wilder, who each. The first six-month $700 inhas been serving as General Manstallment will come due in October, ager, will continue to hold that title. when the 2021-22 fiscal year begins. All other department heads will reThe second installment comes due main on the job with no change in six months later. responsibilities. In announcing Phillips’s accepHearn said Phillip’s new role will tance of the Cove’s job offer, Hearn be “accretive,” that is, one that will expressed his enthusiasm and apadd a new level of management preciation for Phillips’ decision to oversight and personal involvement join the Captain’s Cove managein the community. He later characment team. terized the position as somewhat In answer to a question from Larakin to town mayor. ry Berger, Hearn said her salary Phillips will start her new job on will have little effect on the Cove’s March 15. payroll expense because of the reHearn also announced that cent retirement of Facilities ManCCGYC is transitioning to a new ager Rob Giard, whose position has management structure, outsourcing Captain’s Cove Senior General Manager Colby been unfilled for several weeks and all operations in the Cove to Indigo Phillips doesn’t start until March Golf, which has had a contract to possible. BCG years ago had a con- CCGYC, will be responsible for re15. He declined to make a public anmanage the Marina Club and the tract to manage the Ocean Pines imbursing Indigo for payroll expensnouncement of her starting salary, Cove’s golf course. The contract will Golf Course. The company runs golf es presented in a monthly payment, advising that a written request for be amended to bring all Cove em- courses and food and beverage oper- Hearn said. In the third major disclosure at that information can be made under ployees under the Indigo Golf um- ations nationwide, and Hearn and the rest of the Cove board have been the Feb. 23 board meeting, Hearn Virginia’s HOA law. brella. But he said that if the board had It’s more of an evolutionary step pleased with the operational and fi- announced that the annual lot aselected to fill the position through than a revolutionary one, as 13 Ma- nancial performance of Cove ameni- sessment will be increased from a traditional search, the position $1,200 to $1,400. It’s been $1,200 rina Club and golf course employees ties under Indigo. would have been advertised in a Some of the back office payroll for the past seven years, and Hearn already were Indigo personnel. Serange of $100,000 to about $120,000. curity, front office and maintenance functions handled by L&H Account- said that cost pressures make an But he said Phillips’s skill set and personnel, along with Phillips, will ing will shift to Indigo, but L&H will increase unavoidable if the Cove likely availability because of events all become Indigo employees once a continue generating monthly finan- wants to maintain its strong balhe has monitored this past year in new management contract is com- cial statements and will assist in ance sheet. Ocean Pines made it possible for the preparing the annual Cove budget, Another reason for the increase is pleted and executed. Cove board to bypass the traditional that the board wants to renegotiate That will bring another 13 em- Hearn said. Based on her interview with the the remaining balance of $2,450,000 search protocol and offer the posiployees under the Indigo umbrella, board, he said he expects the Cove’s on the Marina Club loan, which car- tion to Phillips. Hearn said. Within days of the offer, she acIndigo Golf was once known as monthly statements, which can be ries a 6 per cent interest rate. Loan cepted. She met with Chip Harris, Billy Casper Golf, but that name difficult to read, will be revamped by payments currently come out of soIndigo Golf’s regional manager, was changed when the Casper Phillips so they’re more “user-friend- called Exhibit X, which is a defacto Hearn and the Cove board as a part reserve fund financed from 792 lots family withdrew from a licensing ly,” Hearn said. of the hiring process. While all Cove employees will segregated out years ago because of agreement, Hearn said. Indigo Golf “Everyone was very impressed,” may soon to be absorbed by anoth- become Indigo employees, and significant assessment delinquenHearn told the Progress in an earlier er national management company, will receive Indigo paychecks, the cies. Since then, 509 out of those 792 he said, with another name change Cove property owners association, are now active dues-payers, Hearn

CAPTAIN’S COVE

Colby Phillips named senior GM of Captain’s Cove association

34 Ocean Pines PROGRESS

March 2021

Management transition

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CAPTAIN’S COVE

March 2021 Ocean Pines PROGRESS

Colby Phillips’ departure is Ocean Pines’ loss

But Captain’s Cove and the popular OPA manager are the winners

out of the day-to-day management here has been a lot of sorrow of the OPA. and angst over the decision of A case in point. An excursion through the curious cul-de-sacs An excursion through theby-ways curious and by-ways and cul-de-sacs OPA manager to leave Ocean OPA General Manager John Vioof Worcester County’s County’s most densely community. of Worcester mostpopulated densely populated community. Pines for a really wonderful opporla had to check with someone -- he By TOM STAUSS/ tunity in Captain’s Cove, a commuBy TOM Publisher STAUSS/Publisher didn’t say who but we can all guess nity about a third the size of Ocean -- to see if it was all right Pines that is reminiscent Colby in Wonderland by Rick Menard, with apologies to Lewis Carroll for Colby to continue to of Ocean Pines in its earteach her swim aerobics lier years. exercise classes at the It has a $5 million Sports Core pool after she budget, about a third had submitted her resigof Ocean Pines’, simination as amenities manlar amenities including ager and logistical operaswimming pools (two tions director. outdoor and one indoor), One blessed by-product a nine-hole golf course, of her leaving is that there tennis courts, and a Yacht will be no logistical operaClub and marina (called tions or operational logisthe Marina Club) with an tics in Ocean Pines any unsullied and spectacumore or anyone directing lar view of Chincoteague it. Steve Phillips’ title has Bay. There are two food been changed to Director and beverage restaurants of Finance Controller, managed by a company, which is what his predeIndigo Golf, once known cessor, Art Carmine, was as Billy Casper Golf. called all those years ago. In the assessment The point here is that of the Cove board of diJohn Viola as the OPA rectors, Indigo is doing general manager should a great job running the not have to check with golf course, the Marina someone to see if it was Club and the town center restaurant. They’re looking for a that appreciates her talents and chronicled elsewhere in this edition OK to allow Colby to finish out her leader that will help take Captain’s wants her to succeed and will help of the Progress and on Joe Reynolds’ cycle as a part-time aquatics inher do that. oceanpinesforum.com constitute a structor. That’s his job, or at least it Cove to the next level. The lack of a hostile work envi- thinly veiled effort to coax her into should be. Colby will be that leader. If he had to check with a highShe will be the senior general ronment in Captain’s Cove is proven leaving? Was it all an orchestrated manager in Captain’s Cove and a by the lack of turn-over. A senior ex- attempt over many months to get er authority on a relatively simple senior employee of Indigo. It’s a role ecutive recently retired, freeing up her to leave, thereby saving a siz- matter involving a part-time contract, what else is out there that ennewly created by the Cove associa- the resources that made it possible able chunk of change? It certainly didn’t take a lot of cumbers his actions as OPA’s chief tion’s Board of Directors that seems to hire Colby without a huge impact time to change the OPA’s 2021-22 executive officer? tailored to Phillips’s strengths of a on the Cove budget. One Ocean Pines department As the saying goes: One door clos- budget reflecting savings from her manager. She will be able to apply what she es, another opens. We all should be departure. The assessment increase head who shall remain nameless for obvious reasons told the Proggot lowered, too, to a nominal $10. learned in Ocean Pines and grow her happy for Colby. Rather than get too caught up in OPA members can make their ress recently that Doug Parks, when skill set as she works collaboratively with the management team in place the reasons why Colby was recep- own conclusions about what’s trans- he served as OPA president for all there. All the department heads will tive to leaving Ocean Pines, OPA pired , and they have, in a solid those years, never once inserted members might pause to reflect just outpouring of support for Colby. himself into operations the way it is report to her. Captain’s Cove is a community what a wonderful opportunity this Anyone paying attention to the op- alleged that Perrone has. He knew where the line was and that has the largest population base is for her. Our loss is her and Cap- tics and acoustics of her departure tain’s Cove’s gain. knows that the OPA board and its never crossed it, according to this in Accomack County. Even if she had not encountered president, Larry Perrone, are taking department head. It has a lot of potential, maybe Board micro-management of opstill a little raw on the edges, but it’s so much difficulty this past year in hits for allowing or even creating Ocean Pines, this would have been conditions that made it possible if erations has been a recurring theme hardly a broken community. not likely that she would be leaving throughout Ocean Pines’ 50 years as Colby will be part of a manage- an opportunity too good to pass up. an HOA-operated community. Some But there’s little doubt that her Ocean Pines on her own accord. ment structure that is stable and As she says in her farewell inter- boards and some presidents have cohesive, supported by a Board of perception and experience of what Directors that avoids all the fraught she felt was a hostile work environ- view with the Progress this month, been able to restrain themselves in atmospherics of a board riven with ment in Ocean Pines made it easi- the culture within the OPA needs to dealing with staff. Others, not so much. er to leave her relationships and change if these kind situations are divisiveness. When this problem is fixed, the friendships behind for a new start to be avoided in the future. Ocean Pines: Take note. It will start with a Board of Di- rest might take care of itself. At Colby is leaving Ocean Pines for down south. Did the pattern of incidents rectors that renews its vow to stay least it will be a giant leap forward. a growing community with a board

LIFE IN THE LIFE INPINES THE PINES

36 Ocean Pines PROGRESS March 2021

OPINION

OPA ethics/conduct policy and practice need an overhaul esolution B-08 that governs ethics and have the opportunity to make his or her case diCOMMENTARY conduct of members of the Board of Direcrectly to the board. The accused director should

tors and the process by which complaints filed under its provisions are handled needs an overhaul. If that can’t be done, B-08 will need to be scrapped. OPA Director Frank Daly is spot on. Whether B-08 is scrapped or amended, the process for handling complaints against OPA directors by OPA employees is abysmal. All of this has been brought into sharp relief by the way that the Colby Phillips hostile workplace complaint against OPA President Larry Perrone was handled. The process isn’t fair to anybody, either the individual who files the complaint or the individual who is alleged to have committed deeds unworthy of his station. Let’s itemize some of the ways: • The B-08 resolution specifically says the board should act on a B-08 complaint in a public meeting within 14 days of the complaint being filed. The Colby Phillips complaint sat for three weeks before the Board of Directors learned of it through an email sent by her husband Duane. Who is supposed to notify the board that a complaint has been filed? B-08 doesn’t say. • Under current practice and precedent, a complaint filed with the OPA’s human resources department doesn’t trigger the B-08 process. You wouldn’t know that by reading the plain language of the resolution. Instead, the clock of the 14-day response window is triggered by a complaint written by a director on behalf of the aggrieved employee. • There is no language in B-08 that says a complaint can only be filed by a director against another director, or that an employee must rely on a director to write up a complaint on his or her behalf. • The employee doesn’t get to see the complaint written on his or her behalf before it is shared with the Board of Directors. It’s not shared after the directors have had their eyes on it, either. In fact, it’s never shared. • There is no language in B-08 that mentions who and how complaints are to be investigated. The usual practice is that is kicked up to OPA lawyers, who then write a report on their findings and give it to the directors. • The investigative report is not shared with the aggrieved employee. • The whole process is shrouded in secrecy despite language in B-08 calling for a public meeting. There’s fine print that says that despite this head fake about a public meeting, the directors can meet in closed session to deal with the allegations, in accordance with provisions of the Maryland HOA Act. • There is nothing in B-08 that sets up a procedure for notifying the membership of complaint details. The membership is kept in the dark about the nature of the complaint, who filed it, and who it was filed against. • For purposes of dealing with ethics and conduct complaints, B-08 says directors are consid-

ered employees of the OPA. This provision apparently allows the process to be kept under a cloak of secrecy. Notwithstanding the absurdity of this notion -- directors are volunteers, not paid laborers or managers -- B-08 is silent on whether “employee” directors should be subject to the OPA Employee Handbook. Said handbook makes clear that bullying and harassment on the job won’t be tolerated. • B-08 doesn’t seem to allow for the option of an aggrieved employee from making his or her case in person to the Board of Directors. Existing procedure doesn’t allow it, either, unless and until the public meeting occurs. • Nor does B-08 text or current process allow accused directors to defend themselves during the closed meetings called to consider the complaint. Of course that could happen anyway, and probably does. There’s no way anyone outside the room would know it. Director Frank Daly has also gone on record objecting to the fact that under the current process, accused directors can’t go public with their defense. Ocean Pines being what it is, some of the details of the allegations leak into the public domain. According to Daly, it’s unfair that an accused director has to remain silent when that happens. There’s no language in B-08 that handcuffs or silences a director, however. One might think that the First Amendment applies to directors. If this self-imposed silence isn’t based on B-08, why is Perrone keeping silent? Only he knows for sure, but it could be that he feels he is somehow protecting employee privacy interests. If so, the shelf life of this martyr complex has expired. So how can B-08 be rewritten and the process reformed to cure these aforementioned defects? Daly has some good ideas. • He suggests that any complaint against a director should become a B-08 complaint when it’s filed, unless the employee waives that option. • He proposes a form clearly labeled B-08 that the aggrieved employee would fill out, with as much additional information as is considered appropriate. The cause and nature of the complaint would be clearly stated, as would the desired remedy. • He insists that any complaint against a director be written by the aggrieved employee, not a director on behalf of the aggrieved. These are good ideas. In addition: • The HR department and the general manager can attempt a reconciliation of the aggrieved employee and the accused director, in private. If this effort fails to satisfy the employee, then the HR department and general manager can order an investigation of the allegations by the OPA’s legal counsel. • Should any complaint end up at the board level for resolution, then the aggrieved ought to

have an identical right. • The meeting should be conducted in public, with the option of a closed meeting if one side insists. • Prior to the public hearing, if not before, the OPA should release details of the complaint. • Both sides in the dispute should have no restrictions placed on their First Amendment rights of free speech outside a meeting room. • Any investigative report by OPA attorneys should be shared with the parties and with the OPA membership. Redactions of employee names can occur at the request of the employee. • B-08 should be rewritten to spell out precisely the process used to deal with B-08 complaints. • The clock on the 14-day window should start when the B-08 complaint is filed. • The HR department or the general manager should immediately notify all members of the Board of Directors when a B-08 complaint has been filed. • The provision defining directors as employees should be deleted. Even so, language should be added saying directors are held to the same standards of conduct as appear in the Employee Handbook. Will OPA directors agree to Daly’s suggested remedies or these additional suggestions? Hard to say, and of course the lawyers will weigh in to protect the OPA against potential legal actions. Directors should lean presumptively to transparency and adopt practices that are consistent with actual language in B-08, as amended. - Tom Stauss

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

PUBLISHER/EDITOR Tom Stauss stausstom@gmail.com 443-359-7527

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OPINION

March 2021 Ocean Pines PROGRESS

Colby Phillips resigns: The community responds Once again I feel as a former diall these traits. LETTERS rector the need to speak out. This Colby is exceptionally oped since the board of directors allowed Larry Perrone and Colette Horn to be the president and vice president is one of dictatorship and control. There has been difficulty in getting communication from our association to the media as well. There was no formal mentorship program established for Colby Phillips but a lot of criticism. I was personally told by a board member after the election that she would never be GM. A board member in January 2020 told me since Colby didn’t have a college degree she would not be a choice for GM. First, why would board members be involved in these conversations about an employee or even know these things? It is very clear, in my humble opinion, that this could be perceived as targeted treatment and Colby never had a chance. Regardless, if she was to get the GM job, she never had a shot. Why did VP Horn say the first time the board heard of the complaint was 1/26 after receiving a letter from Colby’s husband when the GM notified Colby that he spoken to the board president on 1/21 and said there would be no further interaction between the Board president and Colby? All communication would go through the GM to her from the board. The board president should have immediately notified the rest of the board and he did not. Why was this complaint hidden from the rest of the board.? Why did it take Colby ten days to get a response from HR from the GM with numerous follow ups? The board didn’t acknowledge publicly the complaint until three weeks later? When the GM had an issue with a board member it moved at warp speed and publicly! Why would an employee complaint not get the same priority? Good question! Gossip among employees is common place in all businesses. However, why did our board agree to an investigation into Colby on the allegations she was starting a smear campaign against the GM? Was anyone else investigated? How much did this investigation cost the homeowners? Do we really believe that no one else on our staff complains amongst themselves? Are we now going to investigate every employee

who chooses to complain about their boss or job? Oh, and by the way, it came back unsubstantiated and no proof of claims made against her. Once again this could be perceived as a witch hunt. We have to be fair on both sides of the table here in Ocean Pines. We have by-laws and rules for a reason. There are some directors on this board who are entirely too involved in operations. This is not allowed by our by-laws. The board of directors are voted in by the homeowners of this association. They work for us; they are not above us. The board is made up of seven individuals. Each has equal voice and voting rights as told to us when I was on the board repeatedly by then President Doug Parks. President Perrone and VP Horn would do well to remember that and try to foster more of a team approach and communication on this board and with the community. We lost a great employee. Whether or not she would ever be GM is irrelevant. The current political environment and culture of OPA made her leave. With no future advancement path for her, she chose to go find one for herself and she did. Esther Diller Former OPA director 2018-2019 Ocean Pines

Perrone responds

Esther, thank you for your note. As you know, as a former board member, we do not comment on employee issues whether the employee is current or a past employee. Larry Perrone OPA President Diller responds to Perrone: Larry, it’s not so much as an employee issue as a concerning overall issue with the functions of the board among themselves, operations and the community. Esther Diller

Trendic laments loss

Sample traits of a great leader: Confidence, Conviction, Positive attitude, Great listener, Resourceful, Compassionate, Solution focused, Open-minded, Great communicator, Inquisitive. Colby Phillips possesses

talented person and our Star employee. Companies always try to identify a standout, high potential employees, nurture their talent, invest in their development and most important of all retain them. Which makes one wonder why and who was after our Star employee Colby to the point where she felt compelled to resign and leave the community she so loves. Did the treatment by certain management and board members become unbearable and unhealthy for Colby? And now that we lost our Star employee, what are the OPA homeowners going to do about this beyond this forum chatter? Slobodan Trendic Former OPA Director Ocean Pines

Mistreatment and loss

We, in the Ocean Pines community, are extremely upset at the mistreatment and loss of Colby Phillips, Director of Amenities and Operational Logistics. The board has no business being involved with OP employees, that’s the job for the GM. The board should not be able to hold a closed-door meeting to decide the outcome of Perrone’s actions without Colby and her attorney present. Colby should have been given an opportunity to speak before a Board decision and Perrone should be able to present his side but not vote on any decision. The HR attorney involved, works for the firm retained by OPA for legal matters. Not truly independent. Colby should have had independent HR representation. Even if Peronne’s actions were legal, it’s wrong that the board (majority) is willing to put up with his behavior without any kind of censure and apology to Colby. Colby Phillips is a person of great integrity and a natural-born leader. She’s well-liked by her employees and the membership of OPA. She is knowledgeable, caring, committed, a hard worker who treats people with respect, responds promptly to comments/requests, and works hard to come up with equitable solutions. She cares greatly about our community and it shows in her dedication, professionalism, and work ethic. q

email is NOT solely focused on Colby Phillips but rather the toxic environment which has come to be AGAIN in OPA. Let’s talk about the facts. I was a director on the board when John Bailey left OPA. I invited John Viola to meet me at Taylor’s restaurant. It was there I asked him to consider being the interim GM. He was very reluctant to take this task on. After further conversation and a meeting with then Board president Doug Parks he agreed to take the position with our word it would only be for 6 months as he mentored and trained Colby Phillips to potentially take the GM position. No guarantee was ever made to Colby that she would get the position. I do not pretend to be involved in the day to day operations but saw early on first hand there were some issues with this process. The board that I sat on established the Transition management team. With this structure the GM would be at the top reporting to the board and Steve Phillips and Colby Phillips would be sharing on the next level down with the staff reporting to them. This structure allowed for OPA to never be fully reliant on the GM with the responsibilities spread further down. For almost a year the GM and team were able to accomplish a lot. For some reason a decision was made after the pay study (another one) to rename and move positions around. I am aware that this is totally at the GM discretion. However, what was occurring here was that Colby Phillips was systematically being demoted without calling it a demotion. The interim GM had also decided he wanted to stay on in a permanent capacity as GM. Let me be very clear, that was and is his right to exercise this option along with that of the Board of directors. Having worked in corporate America for many years it was very easy to see what was occurring. The fact that the new board president Larry Perrone and vice president Colette Horn unlike previous board president Doug Parks and Vice President Steve Tuttle, felt the need to be intimately involved with HR and operations. Primarily operations that had to do with Colby Phillips role within OPA. The culture that has now devel-

OPINION

38 Ocean Pines PROGRESS March 2021 LETTERS From Page 37 She made more progress to solve the long-neglected drainage problems than anyone in 30 years. She directed the replacement of more aging bulkheads than any of her predecessors. She has taken steps to replace and improve the mailboxes that are 40-50 years old. She has improved the overall beauty of the Pines by clearing out the old landscaping and bringing in the new plantings. These are just a few of her many accomplishments. Colby is a huge asset to the Ocean Pines community and now, due to the actions of some OP Board members, she felt compelled to resign and leave the community she loves. Instead of alienating such a highly qualified employee, the board should have been trying to recognize her standout performance, nurture her talent, invest in her development, and most importantly, retain her. Which begs the question, why would the board support Perrone’s treatment of Colby Phillips? Why would the board act in the best interest of Perrone over the best interest of our Ocean Pines community? You - the board members who supported Perrone - should be ashamed of yourselves for your part in her resigning. You did not win. We as a community lost. Jackie and Ron Kurtz Ocean Pines About 90 Ocean Pines property owners signed this letter that was read into the record at the Feb. 20 meeting of the Board of Directors.

Swimming ladies oppose pool closures

The following letter sent to the Board of Directors Feb. 10 was copied to the Progress for publication. I am writing on behalf of the OPSC Ladies, a committed group of year-round Aquatics program participants who have become increasingly dismayed at recent articles in the local papers. It would appear Aquatics is once again being pitted against other Ocean Pines amenities for precious Association resources. Admittedly, the Aquatics budget has taken a major hit during the current pandemic, especially with the closing of the pools for such an extended period last year. Even now, admission to the facilities is limited by the Governor’s Recovery Plan. So we believe using 2020 and ear-

ly 2021 financial results as a gauge for the current and future years’ budgets is grossly unfair. According to recent articles, Board President Larry Perrone has charged Aquatics Director Colby Phillips with going back to the drawing board with respect to her 2021 budget projections, with the intent of a substantial reduction in the projected deficit. He has even suggested possibly closing pools, with an emphasis on the Sports Core Pool. The OPSC Ladies strongly oppose such a move. While it may appear self-serving, there are sound financial reasons for keeping the pools open. In prior years, Aquatics has been somewhat of a “cash cow” for the organization. And it will be again. Colby Phillips is a proven commodity within the Ocean Pines community. She is well-respected, responsive to her constituents, and a very valuable OP resource. She should be given the opportunity to manage her department without the proverbial ax hanging over her head. We are not asking for you to restore the previously approved funds for the addition to Sports Core. We only ask for fairness in the current budget process for the retention of existing Aquatics Department assets. OPSC Ladies c/o Donna Topper Ocean Pines

Perrone responds

Thanks for your note. The budgeting process for this year has a lot of moving parts when we try to manage thru the COVID environment. Aquatics is projected to lose $380,000 this year. The board recognizes this is not the fault of our aquatics team. However, that is a substantial loss. The 2021/2022 aquatics budget is projecting a loss of about $240,000 without a adjustment for COVID issues. With the COVID adjustment the projected loss could be another $380,000. Your note seems to indicate some assets have been cut from the aquatics budget. I’m not sure what you are referring to. If you review the board budget hearing you will note that myself and other board members are looking for ways to reduce the projected loss for next year. Yes, the possibility of closing some pools was discussed but no decisions have been made. In fact, Ms Phillips indicated that if the sports core pool was closed it would reduce the projected loss by $40,000. The board is waiting for a plan

from the general manager on what if anything can be done to reduce the projected loss. The budget has not been finalized at this point [Feb. 10]. I can assure you no one blames any of our department heads for the results in this COVID environment.

Captain’s Cove From Page 26 Given her years of experience with the Ocean Pines aquatics program, Hearn said he expects to see new programs offered to residents. New Web site -- General Manager Justin Wilder advised the board during the virtual meeting Feb. 23 that the new Web site is close to roll out. Migration to a new member payment system will lag behind roll-out of the rest of the site but will catch up in two or three months, he said. “Members will still be using the Front Steps payments for a few months” and then will migrate to the Tops One format, he said. Lamp post banners -- Wilder announced that the Cove is looking for a graphics consultant to design new lamp post banners promoting Captain’s Cove. The existing banners “are in need of a refresh,” he said. Cove directory -- Captain’s Cove is seeking submissions for the cover photo of the 2021 Cove Directory. The winner will receive a $50 Marina Club/Town Center gift card

As good stewards of OPA money it is the board’s job in conjunction with the general manager to look for ways to provide quality services to our community and address areas of financial stress. Larry Perrone, OPA President and photo credit in the directory. Here are the submission guidelines: The photo must have been taken by the submitter, and you must have full rights to it. The photo must have been taken inside Captain’s Cove in 2020 or 2021. The photo must not show an identifiable person. The photo must be submitted in “portrait” format. The photo must be at least 1200 pixels wide x 1500 pixels tall and in “.jpg” or “.jpeg” format. A maximum of two submissions may be made per person. Each submission must include the name of the photographer, location where photo was taken, and the date when photo was taken. The winner will receive named credit for the photo on the inside of the Cove Directory and a $50 gift card for the Marina Club or Town Center Grille/Pro Shop. Send your submissions to General Manager Justin Wilder at jwilder@ captscove.com with the subject line “Cove Directory Photo Submission” no later than Sunday, March 17th, 2021.

Homebuyers and Credit Understanding Seminar Sponsored by

Engel & Volker & First Choice Lending of New Jersey Thursday, March 11 • 7 p.m. & Saturday, March 13 • 10 a.m.

Ocean Pines Community Center RSVP 215-802-7778

March 2021 Ocean Pines PROGRESS

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40 Ocean Pines PROGRESS March 2021

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