May-Early June 2013 Ocean Pines Progress by Ocean Pines Progress

May-Early June 2013

Vol. 9, No. 2

410-641-6029

www.issuu.com/oceanpinesprogress

Residents blame drainage woes on poor maintenance

THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY

Snagged COVER STORY

Permitting issues pose challenges to OPA constrution projects

Uncertainty rules in Hingham Lane drainage, Yacht Club pool and marina gasoline sales By TOM STAUSS Publisher nyone who thought that the major construction projects under way in Ocean Pines would proceed smoothly and precisely on time without a glitch or two probably is not too acquainted with the real world. Ocean Pines Association General Manager Bob Thompson delivered a dose of reality to the board of directors at its April 24 monthly meeting, mixed in with his usual sunny optimism about outcomes and some short term victories. One thread that seemed to link all three major projects – Hingham Lane drainage, Yacht Club pool reconstruction, and the new Yacht Club and marina project – is that the OPA and its construction partners as of that date in time were lacking key permits from state regulators. Needed permits, of course, can arrive anytime, dependent on the whims and work loads of state officials less concerned about construction timelines than OPA officials. A fourth major project, golf course green replacement, has been completed. Drainage improvements on holes 11 and 12 have been installed, fairways on the two holes have been resodded, and the course reopened May 1 with all 18 holes playable. Thompson is effusive with optimism about To Page 10

While Ocean Pines Association General Manager Bob Thompson is working toward additional structural improvements to the stormwater management system in Section 3 to augment recent improvements completed by Worcester County, local residents there are suggesting that the best way to further improve conditions is for the OPA to do a better job of keeping ditches free of debris. Steps are in motion on both tracks. ~ Page 12

Budget committe proposes relaxed investment policy Even as its chairman is resigning out of frustration that many its recommendations are falling flat with the board of directors, the Ocean Pines Association’s budget and finance advisory committee is taking on two potentially controversial proposals that suggest its members are not quite ready to fade into the proverbial woodwork. In a meeting dominated by a discussion over why committee chair Dennis Hudson was resigning from that leadership position while continuing as a committee member, the panel in a rather abrupt shift of focus began discussing the possibility of developing a policy recommendation to ease somewhat what most committee members regard as an overly restrictive investment policy. ~ Page 18

County’s septic tier vote could prompt estate rezonings Despite a plea to move forward with the proposal from the only representative to speak on behalf of property owners who would be directly affected, including those with a large tract on Route 589, the Worcester County Commissioners decided not to approve a four-tier system governing and restricting the use of private septic systems for new subdivisions. In a 6-1 vote, the commissioners rejected the proposed septic tier maps, which were included in the Sustainable Growth and Agricultural Preservation Act of 2012 adopted by the Maryland General Assembly, following a public hearing on April 16. ~ Page 33 To Page 18

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May-Early June 2013 Ocean Pines PROGRESS

THE “PINES” OMBUDSMAN The City of Ocean Pines By Dennis R. Hudson

Don’t you think it’s time to revisit the incorporation of Ocean Pines? Despite the many years our Boards of directors and General Managers have made their annual trips to Snow Hill, hat in hand, requesting improved county funding, we continue to be in last place as a major community. Despite having two hard working commissioners representing Ocean Pines we continue to be in last place. Donation to Diakonia

Pictured are local Kiwanians Tom and Barbara Southwell with a full load of food collected from the members and donated to Diakonia. The Southwells chaired the program and got a great response as evident from the load of goods in their SUV. May is Kiwanis International’s Membership Month.

I suspect the reason is clear: If the county commissioners were to open their coffers to one home owners association, they are fearful a line would form outside Snow Hill from every association in the county. In my opinion they simply cannot and will not open themselves to this. As a result I don’t expect to see any increase in funding next year and I actually expect to see less with higher taxes. I believe this topic may be a good one for a “Town Hall” meeting.

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Maybe we should consider ending this cycle, or at least assemble all the facts to make an intelligent and independent review. Many have informed me this was studied several years ago, and the county was not receptive to the incorporation of Ocean Pines. May I suggest they share this information with the community, if this is true. Whereever these studies are, I suggest that anyone in possession loan them to the Budget and Finance Committee, and charge them with developing an impartial second examination and public report. If the reports are nonexistent or outdated, I believe it may be time to revisit the numbers using professional independent sources from outside the County or BOD; in my opinion there simply would be too many conflicts of interests if this study was attempted internally or through the county. This to me is an investigation worth funding. A Paid Advocacy Advertisement, Authority Dennis R. Hudson

4 Ocean Pines PROGRESS

May-Early June 2013

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May-Early June 2013 Ocean Pines PROGRESS

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West OC, Berlin, Ocean Pines trolley service proposed

The Ocean Pines Association is exploring the possibility of participating in a proposed summertime bus trolley service that would link Berlin, Ocean Pines and West Ocean City. The service will be a joint venture between Worcester County and the Tri-County Council’s Shore Transit. OPA General Manager Bob Thompson informed the board of directors at its April 24 monthly meeting that the association has been asked whether it wants to join a service that would run from Memorial Day through Labor Day, seven days a week from 10 a.m. to 9:30 p.m. The service would transport riders from Ocean Pines and Berlin to stops in West Ocean City, Assateague Island, Ocean Downs casino, Berlin and Ocean Pines. There would be no bus service directly into Ocean City, but riders could connect to the resort’s bus service at the West Ocean City Park and Ride. The service would begin with two trolley buses. Thompson said that pick-up points in Ocean Pines would include the Community Center, but other stops could be added. He said that there was a “sponsorship element” included with the proposed service, such as display advertis-

ing on the buses. He did not ask for comments from board members and none were offered, which probably indicates that the board would be receptive when Thompson comes back with further details at a later date. According to published reports, the two trolleys would run in opposite directions and each route depending on traffic would take about 90 minutes. The service could be free or the county could decide to impose a fare of $1 or more. Shore Transit recently purchased the used trolley buses from the town of Ocean City, which had eight in its bus fleet.

May 10 deadline looms for board candidates

Any property owner in good standing who wants to run for a seat on the OPA board of directors this summer needs to be aware of a looming deadline: Applications are due to be filed with either the OPA search committee or the administration offices in White Horse Park no later than Friday, May 10. Applications are downloaded from the OPA Web site or can be obtained at the admin building or from members of the search committee, who include Jim Beisler (410-208-2682), Tom Sandusky (410-208-3232), Ron Fisher (410-208-

6431), Janet Morse (410-208-9790), or Jean Louis (410-208-6219). There are three vacancies on the board to be contested this summer. The search committee has been looking for five candidates, two more than the number of vacancies, consistent with OPA bylaws. As of late April, there were no announced candidates, although OPA President Tom Terry is considered by some to be a likely candidate for reelection. Another individual said to be considering a run is Bill Cardwell, a candidate last year. One rumored candidate, OPA budget and finance advisory committee chair Dennis Hudson, said he would not be running. He recently announced his resignation as chairman of the budget and finance committee. Filing for the board is pro forma; only unpaid assessments and perhaps some unresolved compliance could prevent someone filing for the board from appearing on the ballot. During the April 24 board of directors meeting, Terry designated director Dan Stachurski as a replacement board liaison to the elections committee, which is chaired by Judy Butler. Terry cited a potential conflict of interest should he decide to seek reelection.

Stachurski then announced other key dates in this year’s election cycle: June 10, when candidates draw for position on the ballot; June 24, the committee-sponsored candidates’ forum; July 12, ballots mailed to property owners; Aug. 8, deadline for return of ballots; Aug. 9, ballots counted by the elections committee; and Aug. 10, election results announced at the OPA annual meeting.

Thompson reports on bridge repairs

OPA General Manager Bob Thompson briefly updated the board of directors on plans to repair the community bridges, particularly the bridge on Ocean Parkway near Clubhouse Drive, during the board’s April 24 monthly meeting. Thompson said that funds to relocate utility lines at the Clubhouse Drive bridge will be raised as part of a county bond issue. County-owned utilities include water and sewer lines. As for bridge maintenance, Thompson said the strategy he is planning to follow will be to award a bridge engineering support contract to help the OPA prepare an RFP (request for proposals) for bridge repairs and then later to monitor and verify the repairs as they are made. He said the actual repair work would be done in the spring and fall to avoid high population months.

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6 Ocean Pines PROGRESS

May-Early June 2013

OCEAN PINES

McDonald’s ribbon-cutting

The Ocean Pines McDonald’s held a ribbon-cutting ceremony for their newly remodeled restaurant on Rt. 589 April 13, complete with Ronald McDonald and American Legion Post#166 Honor Guard from Ocean City. Shown from left in front row: Ocean Pines Chamber of Commerce Executive Director Liz Kain-Bolen, Worcester County Commissioner Judy Boggs, McDonald’s owner/operator Tom Baxter, Ronald McDonald, OP McDonald’s owner/operator Tiffany Baxter Beach, McDonald’s Vice President of QSC (Quality, Service & Cleanliness) Bianca Olivas, OP Chamber of Commerce Vice President Gwen Cordner, and OP Chamber of Commerce Past President Terri Mahoney.

From Page 5 OPA Director Marty Clarke pushed back against the idea that an engineering firm is needed to help draft an RFP for repairs.

He said a 2009 engineering report on the condition of the bridge should provide all that’s needed for the OPA staff to draft an RFP without additional outside help. He later told the Progress that the 2009 engineering study includes a draft

RFP that could be used in lieu of hiring an outside firm. Clarke also said the 2009 report did not include relocating the utility lines as a priority repair item. He said the cost of moving the utility lines should be borne by the county, as the owner of water and wastewater lines, and by individual utility companies, such as Choptank Electric or Mediacom, that share the conduits that pass over the bridge on either side of the roadbed. He said he would oppose any bridge maintenance contract that includes utility relocation. While supportive of making needed repairs to the Ocean Parkway bridge, Clarke said that the bridge will need to be replaced sometime in the not too distant future. Thompson said that the OPA will share the cost of reconstruction on an 80-20 basis with the county, with the OPA responsible for the smaller share. Bridge maintenance is the responsibility of the OPA. Director Sharyn O’Hare questioned

whether installing a new utility conduit under the bridge would impede boat traffic. Thompson said he had been assured that there would be enough clearance for boats even with installation of new utility conduits.

Terry reaffirms vote on suing delinquents

In response to recent reports that OPA General Manager Bob Thompson was entertaining the possibility that he might be able to avoid acting in accord with a board-adopted motion in late January, OPA Tom Terry has reaffirmed that the board intended and expects OPA staff to pursue property owners delinquent in lot assessments by filing suit in small claims court. “We didn’t pass a motion in January in order to ignore it,” Terry said during discussion of the status of delinquencies during the April 14 board of directors meeting.

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May-Early June 2013 Ocean Pines PROGRESS 7

OCEAN PINES

Marina gas sales on hiatus pending tank relocation ly disturbed Yacht Club basin. The board, in budgetary action for the new fiscal year beginning May 1, overruled OPA General Manager Bob Thompson and added about $34,000 to the Yacht Club marina bottom line to reflect a more optimistic outlook on gasoline sales.

OCEAN PINES BRIEFS

during the Aug. 14 meeting of the OPA board of directors.

From Page 6

Anniversary weekend events announced

OPA General Manager Bob Thompson has disclosed a number of events that are being planned in concert with the Ocean Pines Chamber of Commerce to help celebrate Ocean Pines 45th anniversary. Events include a Friday night birthday bash at the Yacht Club on Aug. 23 from 5-7 p.m. and a community picnic in White Horse Park the following day from 10 a.m. to 4 p.m. The weekend’s festivities would conclude with a classic car show and parade on Sunday the 24th. The parade route would be from White Horse Park to the Veterans Memorial Park. Thompson made the disclosures

Clarke questions GM about Web site revision

In response to a question from OPA Director Marty Clarke, OPA General Manager Bob Thompson recently revealed that the cost of the OPA Web site revision that is supposed to be rolled out very soon is a mere $8,900. The GM said that he hadn’t initiated a formal RFP process but rather had informally “reached out to different companies” in the area and asked them to submit proposals and ideas for redesigning the site to make it more user-friendly and interactive. From three such Web site design companies “we made the final selection,” Thompson said, not disclosing the name of the successful design company.

Thompson had lowered expectations because of construction of the new Yacht Club this summer, which he suggested might convince some boaters that the marina itself will be closed. It won’t be, and some board members during discussion said that gasoline purchases might even increase over last summer because boaters will want to see the new building under construction. That could only turn out to be true if the marina gasoline operation is up

and running and selling its sought-after gasoline without ethanol to boaters. As April drew to a close, the marina was not offering any gasoline for sale, to the growing consternation of Ocean Pines’ boating community. Boaters who want the non-ethanol gasoline as a way to protect their boat engines have a few choices elsewhere, including one across the bay in West Ocean City, but that doesn’t help if they’re caught short and

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ust two short months after the Ocean Pines Association’s board of directors adjusted Ocean Pines Yacht Club marina revenues higher based on a more optimistic assessment of potential gasoline sales, Murphy of Murphy’s Law fame seems to have taken up residence on the banks of the new-

8 Ocean Pines PROGRESS

May-Early June 2013

Gasoline sales From Page 7 want to gas up closer to home. Murphy’s Law, loosely translated as mandating that if something can go wrong, it will, seems applicable to the marina situation as of late April. While the marina itself was open to boaters, who have access to their boat slips, storage tanks to be relocated in order to accommodate new Yacht Club construction are not yet functional. Thompson told the board at its April

OCEAN PINES

24 monthly meeting that “he didn’t know when fuel will be available for sale” at the marina. When it is, notice will be posted on the OPA Web site and announced in press releases. He said the OPA’s construction contractor is awaiting a permit from the state before it can actually relocate the tanks. He said the permit to allow tank relocation could happen any day, perhaps in early May, and that it shouldn’t take very long to accomplish the relocation once the permit is in hand.

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McDermott talks politics

NARFE Chapter 2274 had as its April meeting guest speaker State Delegate Mike McDermott representing District 38B. Delegate McDermott gave an impassioned talk about Maryland politics. Shown from left: Trea11001 Manklin Meadows Lane, Ocean Pines MD 21811 surer Jack Scott, Programs chairperson Anna Foultz, and McDermott. All active and retired federal workers 410-208-3500 • 1-866-666-1727 (Toll Free) Judy Froman 410-208-3500 • 1-866-666-1727 (Toll Free) 2012 BRER Affiliates, Inc. An independently owned and operated broker member of BRER Affiliates Inc. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudentialare invited to NARFE’s monthly meetings. The next meeting will be the club’s annual picnic held May 23 at 2012 Inc., BRERandAffiits liates, Inc. An independently andjurisdictions operated broker member BRER license Affiliateswith Inc.noPrudential, theaffi Prudential logoPrudential. and the Rock registered service marks Financial, related entities, registered owned in many worldwide. Usedofunder other other liation with Equalsymbol HousingareOpportunity. White Horse Park in Ocean Pines, starting 10:30 a.m. Cost is $15.50; reservations aee required by May 19. of Prudential Financial, and its related registered in many jurisdictions worldwide. Usedmembership under license withrequired no otherto other affiliation Housing Prudential PenFed is an Inc., independently ownedentities, and operated member of BRER Affiliates, Inc. PenFed is not conduct businesswith withPrudential. PrudentialEqual PenFed RealtyOpportunity. Prudential PenFed is an independently owned and operated member of BRER Affiliates, Inc. PenFed membership is not required to conduct business with Prudential PenFed Realty Interested persons can call Arlene Page on 410-352-3749 for more information. Ocean Pines South Gate - 11001 Manklin Meadows Lane, Ocean Pines MD 21811

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May-Early June 2013 Ocean Pines PROGRESS

May-Early June 2013

From Page 1 scheduled outside play rounds brought out by Casper Golf marketing efforts and more lucrative revenue per round. He says he is optimistic that golf membership will increase as a result of a golf course in much better condition than it has been in recent years. The golf course drainage project was tied in with a companion project to make needed improvements to Hingham Lane, the road that provides access to the Innerlinks section of Ocean Pines and that runs between the 11th green and the 12th tee box. Hingham Lane drainage improvements have been delayed, Thompson said, as is evident by the large outfall pipes that have been temporarily parked

OCEAN PINES

on the side of the street behind the 11th green. Thompson told the directors that in the process of beginning the work on Hingham Lane, contractors discovered additional underground piping that was either defective or misaligned, requiring a redesign of that component of the drainage project. Changes in a drainage plan require – no great surprise, here – a new set of permits from the Maryland Department of the Environment. Thompson later told the Progress that work can resume on Hingham Lane as soon as the MDE permit is issued. He offered no date as to when that might happen. Presumably that means the street will be a construction zone this summer, unless a decision is made – and it hasn’t been – to delay the work until fall.

In the meantime, residents with homes in the vicinity of the 11th green and 12th hole teebox have not yet realized the benefits that the completed drainage project were intended to deliver. It remains to be seen how well the area around the green and teebox will drain absent the Hingham Lane improvements, which are designed to relieve extreme flooding in this area. The existing drainage infrastructure has essentially failed, so stormwater that accumulates in the area still has no way to exit the premises easily or quickly. Improved drainage on the golf course probably will not immediately translate into substantially improved drainage in the adjoining residential lots. The Yacht Club pool reconstruction project has made some visible progress but it seems a virtual certainty that

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it will not be open by Memorial Day weekend, the original target date. The more pressing issue is whether it will be open by the Fourth of July weekend. In March, Thompson said he thought sometime in June was more realistic. At the April 24 meeting, he didn’t offer a prediction, which perhaps is significant. The fact is it’s anyone’s guess as to when the new pool will be open for use. The OPA membership office and others are worried that the uncertainty will affect the willingness of some aquatics members to renew their memberships before summer. Here, too, a permitting issue factors into the construction timeline. Thompson told the directors that the old pool and wood decking has been demolished and removed. The hole where the old pool sat has been filled with dirt, the dirt where the new pool will be excavated has been impacted, and the pool reference points delineated. A permit application for the new pool was filed with the MDE in early April, Thompson said, adding that he hoped that the agency would issue the permit by the first of May, if not sooner. “We’re poised and ready to go (as soon as the permit is issued),” he said. There’s much to be done and not all that much time to do it if the pool is to open this summer. The pool construction itself is only one component. A new pumphouse will need to be built and fully equipped. All the utilities – electric lines and plumbing – will need to be installed, then the pool decking, a concrete base with a paver overlay. Much coordination will be required between Harkins Construction, the overall Yacht Club contractor, and Parrish Pools, the pool subcontractor, as well as the subcontractors that handle the utilities. The apparent lag in pool reconstruction triggered a mini-debate between

10 Ocean Pines PROGRESS Permit problems

Yacht Club project on schedule, GM says

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cean Pines Association General Manager Bob Thompson told the board of directors during their April 24 monthly meeting that, with allowances for when the contract with Harkins Construction Co. was actually executed, the construction timetable for the new Yacht Club and related project remains on schedule. Thompson said that if the Maryland Department of the Environment issues a permit for the Yacht Club marina reconfiguration in a timely fashion, gasoline sales at the marina could resume by May 6. That’s the target, but he acknowledged he really didn’t know if MDE would issue the permit and approved gasoline storage relocation as proposed. [See separate stories elsewhere in this edition of the Progress for details.] A target date for opening of the new Yacht Club pool is June 28, but that, too, is contingent on receipt of a MDE permit to enable construction to begin, Thompson said.

OCEAN PINES Permit problems

May-Early June 2013 Ocean Pines PROGRESS

From Page 10 Thompson and Director Marty Clarke during the April 24 board meeting. Clarke wondered why the permitting process was taking so long when the board took action approving the new pool in late January. Thompson responded that the critical date was not when the board acted to approve the new pool but when the contract to build it was executed, several weeks later than the original timeline. Clarke wasn’t satisfied with that answer, and Thompson said he really didn’t want to debate the issue. Clarke didn’t press. Thompson then moved on to a discussion of the Yacht Club marina and why gasoline is not available for purchase. The news there isn’t much clearer. The answer is complicated. Thompson flatly told the directors that he didn’t know when gasoline sales would resume, and he described in some detail the reasons why. He promised to post an announcement in press releases and on the OPA Web site whenever gasoline becomes available for sale. It could happen relatively soon, because Thompson said the contractors are working on a parallel track designed

to use the existing storage tanks in their present location while preparing their new location in the reconfigured marina area. As part of the site preparation for relocating the tanks, the electric power to the area had to be shut off, Thompson said. New lines have to be laid to serve the relocated tanks. Thompson said the new lines will provide power to the tanks at their existing location as well as their new site, with only one of the existing tanks topped off for temporary use this summer. He said that Choptank Electric will install three separate power pedestals for the area, one each to service the pool, marina and new Yacht Club. The reconfigured layout has to be approved by the MDE – another permitting issue of unknown duration. “There’s no guarantee the state will allow the parallel operations,” Thompson conceded, although he said that because most of the project involves buried power lines, he said he’s hopeful that the MDE won’t object to what the OPA is proposing. But again he couldn’t say when, if and how the issue would be resolved. If MDE rejects the parallel track, gas sales won’t be possible until the tanks have been relocated.

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12 Ocean Pines PROGRESS

May-Early June 2013

Section three residents say maintenance shortfalls to blame for neighborhood’s drainage woes Thompson working with engineering firm to develop plan for additional structural improvements By TOM STAUSS Publisher hile Ocean Pines Association General Manager Bob Thompson is working toward additional structural improvements to the stormwater management system in Section 3 to augment recent improvements completed by Worcester County, local residents there are suggesting that the best way to further improve conditions is for the OPA to do a better job of keeping ditches free of debris. Steps are in motion on both tracks. During the April 24 meeting of the OPA board of directors, Thompson announced that he has been in contact with the Davis, Bowen and Friedel engi-

neering firm to develop an RFP (request for proposals) for additional structural fixes, among them to straighten out 90-degree turns in some of the drainage infrastructure. In addition, he said that some of underground drain pipes are not at the proper depth and that some of them are undersized “as water leaves the property” on its way to a stormwater pond in nearby River Run. “So far, nothing has been spent” in the DBF interaction, Thompson said, adding that DBR’s involvement thus far has been preliminary and is designed to culminate in the drafting of an RFP that will be presented to the board for review and approval before any proposals are solicited. The clear implication of Thompson’s remarks is that he believes continuing drainage issues in Section 3 are caused primarily by structural problems with the infrastructure, even as he acknowledges that recent county-funded upgrades have improved stormwater

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removal from the area. He calls those improvements steps in the right direction, while others, such as OPA Director Marty Clarke, regard them as significant solutions that have substantially improved the situation on the ground. Two Ocean Pines residents affected by Section Three drainage woes, Richard Clagett and John Roeder, appeared before the board at its April 24 meeting at the invitation of board member Dan Stachurski, who also has a home in the neighborhood. Their presentation to the board, including photographic evidence, emphasized shortfalls in ongoing ditch maintenance. They did not express opposition to Thompson’s proposed structural improvements. “Eighty to 90 percent (of the problems) could be fixed by cleaning out the ditches,” Roeder said. “I just think it’s the (poor) maintenance” that’s mostly to blame. He said that setting up a consistent program of ditch maintenance will solve most of the problems in the area, citing ditches on Beaconhill Road, Sandyhook Road and Pinehurst Road as “clogged” and overdue for a thorough, focused cleaning. He said in some cases leaves, branches and sapplings obstruct the flow of stormwater. At one point during the presentation, when Clagett was pressing the point about cleaning out the ditches, Thompson pushed back, telling the resident that what he said had been “disrespectful” of the Public Works department. That brief flare-up ended quickly enough, but it seemed to suggest that the general manager was resisting the idea of a focused maintenance effort. Later, Thompson and Director Marty Clarke engaged in a debate over responsibility for keeping the ditches free of debris. Thompson said it was a shared responsibility between the OPA, county

OCEAN PINES and homeowners. “We’ve got to work together,” he said, noting that the county is very responsive to requests to blow out culvert pipes that are clogged with leaves and other debris. Thompson said the OPA spends about $100,000 per year on leaf removal, with residents asked to rake out their ditches for pick-up by the OPA. Clarke said the maintenance concerns raised by Clagett and Roeder were not being addressed by the OPA’s leaf removal program. He also said that while he was not opposed to working together to improve drainage, he repeated that under an applicable OPA resolution, that responsibility is clearly the OPA’s. The director and general manager also briefly debated the question of who owns the roads, with Thompson suggesting that they’re county owned. That triggered a mini-explosion from Clarke, who said the roads are OPAowned with a public easement issued to the county in return for a pass-through share of state gasoline tax revenues, which have been substantially curtailed in recent years. Other directors offered their views. Sharyn O’Hare said that in some cases crushed culvert pipes are restricting water flow. Dave Stevens said that based on what he had just heard, it’s clear that a focused effort to keep the ditches free of debris was the next step that should be pursued. OPA President Tom Terry also opined that a more “focused” maintenance effort was needed and would be forthcoming. In a subsequent interview with the Progress, Stachurski said he had concluded that the OPA needed to do a better job of maintaining the ditches throughout the community, not just in Section 3, especially some of the larger ditches that are designed to move stormwater out of Ocean Pines. He said the last time a concerted effort was made to do so was under the administration of former General Manager Dave Ferguson in the early 2000s. He said that he understood that Thompson and Public Works Director Eddie Wells had walked the area with Roeder and Clagett for a first hand inTo Page 14

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14 Ocean Pines PROGRESS

OCEAN PINES

May-Early June 2013

Association off budget by $54,553 for month of March By TOM STAUSS Publisher s the Ocean Pines Association enters the final month of its fiscal year, the OPA’s financial performance continues to struggle relative to budget. In March, the OPA produced a negative operating fund variance of $45,292, contributing to a cumulative operating variance for the year of a negative $402,663. March’s performance took a turn for the worse from February’s negative $10,994 variance and January’s negative $6,272. According to OPA Controller Art Carmine’s financial report for March, made available in late April, March’s revenues were under budget by $54,553 and expenses were under budget by $9,486. New capital expenditures were on target, over budget by a mere $225. Cumulatively for the fiscal year, with only April remaining, revenues are under budget by $601,103, expenses are under budget by $237,774 and new capital is over budget by $39,334. The negative variances do not tell the

entire story, however. One schedule in Carmine’s financial report indicates that actual net financial performance for the year is positive, with a $235,000 operating surplus through March. That’s based on net operating revenues of $8,856,000, operating expenses of $8,499,000, and other transfers (new capital expenditures and Sports Core loan principal payments) of $122,000. In remarks delivered during the board of directors’ April 24 monthly meeting, Director Dan Stachurski said he was less concerned about operating results relative to budget than bottom line performance. Later, he said he had little doubt that, after April, the OPA would be in deficit by a substantial amount, probably by the $300,000 to $400,000 that staff predicted several months ago. OPA General Manager Bob Thompson offered no commentary about OPA finances in his segment of the meeting, which left Stachurski to fill the vacuum. In March, Thompson told the directors he would no longer offer a monthly “by the numbers” recap, telling directors

that bylaws require quarterly reports only. Carmine’s financial reports are produced monthly, however, and are made available to members of the OPA’s Budget and Finance Advisory committee and the board of directors for review. Ocean Pines property owners can also stop by the administration building in White Horse Park for copies or to review

the controller’s work product. Carmine’s summary for March indicates that of the major amenity departments, the Yacht Club, golf and aquatics, all three produced negative operating variances relative to budget and all three produced actual losses for the month. As it has throughout the year, golf op-

Projects update

drainage work to the company of Bunting and Murray. The project included the placement of approximately 156 linear feet of 24-inch stormwater pipe on the lands of River Run. An easement for this activity was granted to the county by Meltzer at a cost of $1. The easement runs from the northwesterly side of the Beauchamp Road right-of-way north to a pond in River Run. The improvements included installing the larger pipe under Beauchamp Road at a less severe angle so there would be no “deadhead spot” in which water can back up. The larger pipe carries water away from the affected areas in Ocean Pines and funnels it to the retention pond in River Run, which in turn drains into the St. Martin’s River.

From Page 12 spection several days after the board meeting. “I believe there will be an action plan put in place” to deal with ongoing maintenance, Stachurski said. In improvements completed in late February, Worcester County officials worked with River Run developer Lew Meltzer to find a way to make improvements to the drainage system at a “tremendous savings” as compared to original project estimates at more than $1 million. The county reached an agreement with Meltzer for the installation of a drainage pipe from Beauchamp Road to a pond in River Run. The Worcester County Commissioners awarded a $38,126 contact for the

Entering the final month of its fiscal year, OPA is off budget by more than $400,000 cumulatively through 11 months of operations, but is still $235,000 in the black for the year

Financial report From Page 14 erations led the way with a monthly loss of $80,850, which was $18,618 off budget. The Yacht Club, which reopened for weekend business in mid-March after a couple months of hiatus, lost $28,224 for the month, compared to the budgeted loss of $22,410, for a $5,814 negative variance. Aquatics lost $34,347 for the month, for a $2,808 negative variance to budget. For the first 11 months of the year, golf has racked up a loss of $425,593, which is $331,555 worse than budget forecasts. March Revenues of $36,091 were $20,000 behind budget.

May-Early June 2013 Ocean Pines PROGRESS Total golf expenses, however, were more or less on budget, $112,530 actual against $114,846 budgeted. Another relative bright spot: Cart revenues of $9,333 were close to budget. Other revenue categories, from green fees to member dues, all underperformed relative to budget. Food and beverage revenues were close to budget, however, even while food and beverage costs were under budget by about $1,000. Golf operations have been handicapped by the fact that the back nine has been closed for play as holes numbers 11 and 12 have been rebuilt, undergoing significant drainage improvements, with new sodding for the fairways. All 18 holes on the course are scheduled to

OPA Net Financial Operations through March 30, 2013

reopen on or about May 1, but the back nine’s closure during April probably will affect golf’s bottom line in much the way it did in March. Golf is on its way to losing $500,000 for the current fiscal year, even before depreciation expense is allocated in the audited financial report issued this summer. Thompson told directors during their April 24 monthly meeting that bookings and revenue per round are doing well in anticipation of all 18 holes being open for play beginning in May. The Yacht Club’s deficit for March was worse than February’s red ink, $28,224 to $19,657, suggesting that the partial reopening of the club in March

did not positively affect the bottom line. Gross revenues of $24,790 missed the budgeted target of $50,131 by $25,341. The negative variance for net revenues was $19,518. Aquatics for March produced a $34,347 operating deficit, up from February’s $26,403 deficit. Revenues of $14,567 were $6,059 behind budget, reversing February’s positive variance of about $2,000. All aquatics revenues categories were close to budget, save one, swim lessons, which underperformed relative to budget by $6,845. Aquatics expenses continue to be under control relative to budget, with actual expenses of $48,914 comparing favorably to the budgeted $52,167. That beat the budget forecast by $3,252. Because swim lessons revenues were not accurately budgeted, the loss for the month of $34,347 exceeded the budget by $2,807. That compared to February’s positive variance of $4,314. For the year, through March, aquatics has a cumulative deficit of $123,859, $82,015 worse than the budget had forecast. It would appear that aquatics’ losses for the year will be somewhere close to $150,000, give or take. Status of reserves – The reserve summary released as part of the March financials shows that the OPA’s reserve balance through March 31 stood at $5,343,742, a sharp drop from the $6 million balance at the end of February. This compares to January’s balance of $6,207,642. In December of last year, the balance stood at $6,397,755. November’s balance was $6,991,574. The decline over the course of the fiscal year is normal. Infusions into the reserves occur in May, the first month of the fiscal year, with expenditures from the reserves occurring throughout the year. The balance in the roads reserve through March was a negative $111,341, up from February’s negative $54,426. The bulkhead and waterways reserve stood at $326,726, which compares to February’s balance of $455,880 and January’s $566,890 balance. The major maintenance and replacement reserve remains as the OPA reserve most flush with earmarked assessment dollars. Its March balance of $5,279,852 represents a drop of about $230,000 from February. There are two funding streams that contribute to the replacement reserve. The reserve summary indicates that one of those revenue sources, the fiveyear funding plan, had a balance of $1,173,112 through March 31. The other revenue stream, historical depreciation expense, stood at $4,106,740. The approved $4.3 million expenditure for a new Yacht Club will take a substantial bite out of the major maintenance and replacement reserve whenever it is spent. The intent when the current year’s budget was approved in February of 2012 was to spread the construction cost over at least two fiscal years. Each year, the OPA collects between $3 million and $4 million in assessment q

OCEAN PINES

16 Ocean Pines PROGRESS

OCEAN PINES

May-Early June 2013

Mathias visits Democrats

Senator Jim Mathias and Judy Davis were the guest speakers for the April 17 meeting of the Democratic Club of Ocean City/ Berlin (DCOC/B) held at Davinci’s by the Sea Restaurant. Senator Mathis’ topic was the 2013 Maryland Legislative Session and Judy Davis talked about “Women in Politics”. Pictured are Senator Matthias, Lanny Hickman, DCOC/B Chair, Judy Davis and Ted Page, committee members. Meetings are held quarterly and interested persons should call 410-6000552 for information.

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Point Clubhouse in tax sale list

egal notices purchased by Worcester County in local newspapers includes the vacant and unfinished clubhouse in the Point section of Ocean Pines as a property that will be sold at a tax sale auction if the its owner does not pay property taxes owed on the property. The clubhouse, owned by Bankers Development LLC, an entity controlled by developer Dave Meinhart, is part of 30.47 acres listed in the notice in the parcel that is subject to sale. Although the notice doesn’t specify, that 30.47 acres could include roads and other common area assets that are controlled by the developer. The property has an assessed valuation of $152,300 and the notice indicates that $14,422.63 is owed in back taxes. Ocean Pines Association Tom Terry said that the OPA is aware of the listing but said there has been no discussion by the board of directors on whether the OPA would bid on the property if it’s still available on the scheduled day of a tax sale. He said that the property was listed for tax sale a couple of years ago and the developer paid overdue taxes in time to avoid the sale. Waiting until the last possible time to avoid a tax sale is common. The number of properties available for tax sale diminishes in the days and weeks leading up to a scheduled sale as owners pay up. In addition, should the property go to auction, in most cases the financial institution that holds the mortgage on the property participates in the sale in order to protect its financial interest. There is reportedly several million dollars of debt attached to the clubhouse property. Marketing efforts to see the property thus far have been unsuccessful.

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From Page 15 dollars that are allocated to various reserves. What is depleted in the form of capital expenditures is replenished by this infusion of new assessment dollars. Casino revenues – The OPA continues to reap local impact funds for casino operations at Ocean Downs and elsewhere in the state. Through November, the OPA had collected $435,562 in casino funds. The December balance sheet showed that number reduced to $49,562, with $400,000 of casino money transferred to the roads reserve, consistent with board of directors’ policy. The Jan. 31 balance sheet showed that the casino fund had grown to $63,918 from December’s $49,562, meaning that total funds collected from casino operation through January totaled $463,918. That number had increased to $476,918 at the end of February. By the end of March, the number had risen to $497,435, a $20,517 month-tomonth improvement. The increase indicates that the recent pattern of slowing revenues to the OPA may be abating.

May-Early June 2013 Ocean Pines PROGRESS

18 Ocean Pines PROGRESS

OCEAN PINES

May-Early June 2013

By TOM STAUSS Publisher ven as its chairman is resigning out of frustration that many its recommendations are falling flat with the board of directors, the Ocean Pines Association’s budget and finance advisory committee is taking on two potentially controversial proposals that suggest its members are not quite ready to fade into the proverbial woodwork. In a meeting dominated by a discussion over why committee chair Dennis Hudson was resigning from that leadership position while continuing as a committee member, the panel in a rather abrupt shift of focus began discussing the possibility of developing a policy recommendation to ease somewhat what most committee members regard as an overly restrictive investment policy. Later in the meeting, the committee decided to take up another potentially controversial proposal, one that would restrict the spending authority of the board of directors, currently allowed up to about $1.6 million per year before a requirement to conduct a referendum of property owners is required. Any such restriction would require amending the OPA bylaws, which specify that the board can spend up to 20 percent of annual charges levied on property owners for any purpose. The term “annual charges” has been interpreted over the years to mean annual lot as-

Budget committee to propose relaxation of ‘very conservative’ association investment policy Panel also researching ways to curb board of directors’ spending authority sessments only, to the exclusion of annual amenity memberships. In order to reduce the board’s spending authority, a majority of property owners voting in a referendum would have to approve specific language changes in the bylaws. There are two ways a referendum could be drafted and brought to property owners for consideration. The board of directors can draft and propose a bylaws amendment or ten percent of property owners – about 840 or so – can petition for a referendum, with the board retaining authority over specific enabling language. Hudson suggested that the committee consider recommending a loosening of the OPA’s investment policy without substantially increasing risk of potential losses of principal. He said current policy restricts investments to very low yielding government paper or bank deposits protected by federal deposit insurance.

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“You can’t consider anything” that yields more substantial interest income, Hudson said, mentioning that shortterm municipal bonds are generating returns of around 5 percent per annum. Other low risk investment vehicles can generate up to 7 percent, he said. Committee member Gene Ringsdorf said the committee should at least consider recommending alternatives, while member Dale Buley said he didn’t feel it was appropriate to put “8,000 families” at risk of losing accumulated OPA funds. Investments have to be safe, he said, to which Hudson said that over time, because of the effects of inflation on the value of OPA investment funds, 50 percent of that value is effectively lost. He called the OPA’s investment policy “very conservative.” Member Joe Wetzelberger said the OPA could afford to take “a little more risk” with longer term funds, and John Trumpower said he agreed with that,

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prompting Ringsdorf to suggest that the committee could recommend a “tiered approach” to investments. Hudson emphasized that he was not suggesting that the OPA even consider stock market investments, which he said are far too volatile and risky for an HOA. Ringsdorf offered, and Hudson and the rest of the committee accepted, to draft a new investment policy recommendation that will be considered by the committee whenever it’s ready for review. Hudson then shifted the discussion to a proposed curb on board spending authority, which committee members, except for Trumpower, seemed to heartily embrace. Ringsdorf said one way to do it would be to allow the existing 20 percent threshold to remain for most board spending initiatives, while reducing it for spending for projects or purposes that “have never functionally existed before.” He cited the 2007 Sports Core pool enclosure as an example of such a project for which board spending authority should be curbed. The committee unanimously voted to appoint Wetzelberger and Trumpower to draft a specific policy recommendation for committee consideration. Hudson recently unveiled his own idea on how board spending authority To Page 20

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By TOM STAUSS Publisher ennis Hudson, chairman of the budget and finance advisory committee, has resigned effective the end of May. He will continue as a member of the panel, and the hunt is on for a replacement to head the group. In a wide ranging discussion during the committee’s monthly meeting April 23, Hudson expressed frustration with the committee’s perceived inability to influence the board of directors in its budget decision-making earlier this year. Despite what he called good relations with Ocean Pines management, namely General Manager Bob Thompson, and individual members of the board of directors, he said many of the committee’s key recommendations in the last budget cycle were ignored. “Good personal relationships are for naught,” Hudson said, telling committee members that while he will remain on the committee as a rank-and-file member, he did not feel he could accomplish anything of importance remaining as chairman. Instead, he said he preferred to concentrate on developing a systematic approach to seeking grant funding as a way of reducing reliance on annual lot assessments to fund various OPA departments. Later, Hudson said that he was not contemplating a run for the board of

Budget committee chair resigns, decries panel’s ineffectiveness Hudson to remain on committee, to concentrate on ways to increase the OPA’s grant funding as a way of reducing reliance on lot assessments directors this year, and with a May 9 candidate filing deadline looming, and a dearth of announced candidates, he issued a Shermanesque statement of non-candidacy. While the committee did not rehash recommendations that members felt had been ignored or rejected by the board during the April 23 discussion, Hudson later itemized the main recommendations that the board, for whatever reason, did not adopt. Perhaps the most controversial one called for the board to set up a process over a number of years that could have led to a decision for the OPA to get out of the business of running a golf course, perhaps by leasing out the golf course to an outside operator or, worse case, closing it and converting the course into a park and walking/bike trail complex. The committee had said the process as proposed would have included a community-wide referendum to decide the fate of the golf course, sometime in a threeyear to five-year timeframe.

The board of directors never publicly addressed this particular recommendation during this year’s budget process. Behind the scenes, it was readily ap-

Investments From Page 18 could be curbed. He suggested changing the reference in the bylaws from “annual charges” to the amount of money from annual charges that are transferred into the OPA’s reserve accounts every year. In the approved budget for FY 2014, that transfer is about $3.9 million. Twenty percent of that is $780,000, roughly half of what the board is authorized to spend without a referendum under the prevailing interpretation of Section 5.13 (c) of the bylaws. Hudson said his preferred method of amending the bylaws is to have the board of directors make the change on a majority vote. He said he has hopes of

OCEAN PINES parent the directors as a group, with perhaps an exception or two, were not interested in a community conversation about the status of an amenity that is on a course to lose a half million dollars this year, with depreciation expense added during the annual audit process guaranteed to make the bottom line look even worse. Thompson and the board are hoping that golf course green and drainage improvements, and a course that has all 18 holes open throughout the year, will q

20 Ocean Pines PROGRESS

convincing at least four directors of the wisdom of making that change. Director Marty Clarke, a former budget committee member, is on board as advocating a reduction in board spending authority, and Director Dan Stachurski also supported that idea when he ran for the board two years ago. But Hudson said that if the effort to change the bylaws via direct board action fails, the alternative would be to petition for a referendum of property owners on a proposed bylaws change. He noted that the bylaws give the board substantial discretion to affect the wording in a referendum, adding that he believes that if there are a sufficient number of petition signatures to force a referendum, the board would be duty-and honor-bound to arrange for one.

OCEAN PINES Chairman resigns From Page 20 reverse golf operations’ financial performance in Fiscal Year 2014. Billy Casper Golf is in the third year of its three-year contract to manage the course for the OPA, and the approved budget calls for a $350,000 turn-around in golf’s bottom line, in rough numbers a loss of about $150,000, in the new fiscal year. Whether that target is actually achievable should be apparent after the spring and summer seasons. BCG’s tenure probably hangs in the balance, if certain suggestions and comments made during the budget process are predictive. The budget committee also called for reforms of and reductions in spending for employee health insurance, a topic that remains on the board’s radar. The committee called for an outright rejection of the Parks and Recreation Department budget, a proposal the board did not accept. The committee also wanted larger cutbacks in overall employee expenses that were not incorporated into the approved budget. Recently, Hudson disclosed that he was working on an idea for a referendum on the issue of reducing board spending authority for significant capital projects, currently set at 20 percent of the dollars collected annually in lot assessments, or

ASIAN CUISINE

May-Early June 2013 Ocean Pines PROGRESS roughly $1.6 million. Projects costing in the aggregate more than that amount must go to referendum before the money can be spent on a big-ticket capital project. Although there are a number of ways that the spending authority could be reduced, Hudson told the committee that, in conversations with two board members, whom he declined to identify, he has met resistance to the concept. He said that in order for that issue to gain any traction, it probably will be necessary for property owners to petition a specific proposal to referendum, using a process that is codified in the association’s bylaws. Under that process, the board is more or less obligated to conduct a referendum in accordance with the petition drive – ten percent of properties or between 800 and 900 signatures are required – with the board retaining authority over the actual wording in a referendum. During the committee’s April 23 meeting, members expressed sympathy with Hudson’s rationale for resigning as chairman, and no one attempted to talk him out of his decision. The board of directors’ liaison to the panel, Director Terri Mohr, didn’t either. She pushed back gently against his rationale, contending that the board, during the January-February budget deliberations, had given consideration to

all of the committee’s recommendations. Mohr, a second year board member, is the OPA treasurer in addition to her role as board liaison to the committee. She conceded that she and the board had fallen short in the area of explaining why certain recommendations had not been accepted. “I will try to give you reasons (in written form),” she told the committee, adding that she had “struggled” in an attempt to do so but simply had not produced a document explaining the board’s reasons for not acting on committee suggestions. After committee member Gene Ringsdorf asked rhetorically if the committee is just “wasting our time” drafting budget recommendations, Mohr said the committee’s role is important and should be continued, even while acknowledging that there is no guarantee that recommendations will be adopted by the board. In answer to a question from member John Trumpower, she said the recommendations had been helpful. OPA Director Marty Clarke, attending the meeting as an observer, agreed with Mohr that the panel’s recommendations had been taken seriously by the board during the recent budget cycle. “Everyone appreciated what you did,” Clarke, a former committee member, said.

In previous years, he said that the committee and its recommendations “were belittled,” something he said had not occurred this year. Indeed, Hudson’s appointment to the committee as chairman last year was touted at the time as a way of reducing adversarial relationships between the committee and the OPA administration, and that did seem to happen in the recent budget cycle. Better atmospherics, however, did little to paper over substantive disagreements about budget policy. Mohr told the committee that its recommendations to reform the OPA’s health insurance program for employees will be discussed by the board with action possible, but Hudson employed a barnyard epithet to express his skepticism that any changes will be made to the system to reduce its cost. When Trumpower said that the ability to effect change is “above us,” Hudson essentially agreed, adding that if he couldn’t persuade Thompson and the board to act to accept more of the committee’s recommendations, “nobody can.” He later said he wouldn’t “stop pushing” on behalf of committee objectives, predicting that he would probably “offend some board members” that in turn “will mean confrontation.” He said of that effort might occur outside the confines of committee deliberations.

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By TOM STAUSS Publisher hen Ocean Pines Association President Tom Terry, liaison to the Aquatics Advisory Committee, showed up at the group’s April 3 meeting and launched into an angry critique of committee member Randy Romblad, he informed the panel that all but one of the seven-member board agreed that Romblad had committed a serious breach of protocol. Romblad, without the expressed approval or explicit support of his colleagues on the aquatics committee, had addressed the directors at their March 27 meeting, expressing sharp criticism of OPA management for failing to issue RFPs (requests for proposals) to fix a number of maintenance issues at various Ocean Pines swimming pools. Terry told Romblad that while he has every right to speak at board meetings as a member of the association, he does not have the right to use information obtained as a member of an advisory committee to criticize OPA employees. He accused Romblad of throwing OPA Aquatics Director Tom Perry “under the bus” during his March 27 presentation to the board. While committee members have differing recollections over whether Terry specifically said he had talked to OPA Director Dave Stevens about whether Stevens agreed that Romblad had over-

OCEAN PINES

May-Early June 2013

Stevens dissents from critique of ‘rogue’ committee member Romblad replies that he was just trying to keep the board informed about the condition of OPA pools stepped bounds, there is little doubt that the OPA president conveyed to the committee that six of the seven directors were unhappy with Romblad’s March 27 remarks. But it seems that Terry misspoke when he included Stevens in his description of six board members unhappy with Romblad. “I wasn’t there, so there’s no way I could have been,” Stevens said, referring to the fact that he was away from Ocean Pines on March 27 and did not participate in the meeting via remote video or telephone. He said that he had no subsequent conversation with Terry between the March 27 meeting and the committee’s meeting on April 3. In addition, Stevens said from what he’s learned since those two meetings, he doesn’t believe Romblad overstepped his bounds, even while acknowledging that the better way of informing the board of committee concerns is for committee-endorsed documents and recommendations to go to all members of the

board, with courtesy copies to OPA management. “I don’t have an objection to the way Romblad handled it,” Stevens said, echoing Director Marty Clarke who opined shortly after the March 27 meeting that criticizing Romblad amounted to “shooting the messenger.” According to Stevens, targeting Romblad for criticism is a way to “sweep the issue (of pool maintenance) under the rug,” which he says too often is the way OPA management deals with criticism of the way it is handling certain issues. Stevens cited other recent examples in which he believes management displayed a “thin skin” with respect to criticism. At the board’s April 24 meeting, two residents of the Section 3 area of Ocean Pines commenting on drainage in the neighborhood suggested that the OPA needed to do a better job of clearing debris from drainage ditches as a way of facilitating removal of stormwater from Ocean Pines during heavy rains. At one point, OPA General Manager Bob Thompson said one of the residents was being “disrespectful” in his characterization of the OPA’s maintenance efforts. “And then Bob talked about $100,000 in leaf removal, as if that program has anything to do with the issue raised by the residents,” Stevens said, adding that in general he believes the OPA isn’t as aggressive as it should be in dealing with ongoing maintenance in Ocean Pines. He cited conditions on certain fairways of the Ocean Pines golf course as another example of maintenance that has been unacceptably deferred. Stevens said he would like to learn about what the aquatics committee thinks about the conditions of OPA pools and hopes that it will forward its findings to the entire board of directors

as soon as possible. The committee has completed the first draft of a summary, which Thompson directed Perry to address, and committee chair Virginia Reister has said a final draft will be going to the board through its board liaison, Terry, as soon as the committee has had a chance to approve it. Romblad’s March remarks to the board contained some of the same observations as the committee’s draft, albeit with a spin that was critical of OPA management, perhaps less directed at Perry than it was at Thompson. In a two-page letter that he read to the board, Romblad said there has been no request for proposals (RFPs) issued by the OPA staff to fix numerous maintenance issues at the pools, which he itemized. The one that seemed to catch at least some OPA directors off guard was the condition of the Mumford’s Landing pool, which has a crack in the bottom of the pool from one side to the other. One corner of the pool has subsided a few inches. There is some degree of water leakage caused by the crack, and Romblad suggested there is an urgency behind the need to fix this pool. He also said that delamination of the concrete pool surface at the Swim and Racquet Club pool needed a fix before the summer season and that the OPA is lagging behind in efforts to complete ADA (Americans with Disability Act) requirements at the pools. Later in the meeting, OPA General Manager Bob Thompson offered pointby-point rebuttals to Romblad, telling the committee that all maintenance issues will be addressed before the summer, in some cases with temporary fixes, and the OPA has received a waiver for certain ADA-improvements for another year. Delamination issues in particular should be resolved by using a better product for patching, Thompson said, telling the committee that “Public Works will be doing the patching before summer.” As for ADA issues, Thompson said that the OPA has received waivers that take the pressure off the need to make immediate improvements.

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OCEAN PINES

Board wanders in the weeds on committee procedures Directors confirm that Thompson can ask committees for help in researching topics of interest

By TOM STAUSS Publisher fter about two hours of wandering deep in the weeds on advisory committee procedures and relations between committees and the board of directors, Ocean Pinesâ&#x20AC;&#x2122; elected officials seemed to have reached a meeting of the minds in what, to some observers, seemed to be a solution in search of a problem. By the end of a special meeting held May 1 in the Community Centerâ&#x20AC;&#x2122;s Assateague Room, witnessed by several Ocean Pines residents and three media reps, Director Ray Unger was visibly bored and anxious to leave. He said, more or less, that little had been accomplished during the meeting. Ocean Pines Association President Tom Terry, however, begged to differ. He summed up the results as a reaffirmation of the right of General Manager Bob Thompson to ask advisory committees to perform specific tasks, so long as the board liaison notifies his board colleagues of the assignment and no one objects. In a kind of trade-off to giving the general manager to right to seek committee help, Thompson or department heads will be expected to attend committee meetings to provide information to help the committees perform their primary function as advisors to the board. Department head attendance will also give them the opportunity to learn how community members regard various administration initiatives. At the same time, there continues to be the understanding that the committees have no authority to ask department heads to perform a task, as department heads work for the general

manager. Similarly, it is understood that the committees are not obligated to perform tasks for the general manager. Committees that undertake activities that cost the OPA money need board authority to do so, requests that are supposed to be conveyed to the board through the committeeâ&#x20AC;&#x2122;s board liaison. Terry said several times during the meeting that there is nothing wrong with any of the committeeâ&#x20AC;&#x2122;s charging documents, or mission statements, but he said there have been some procedural issues that have arisen of late with respect to the way the committees interact with management. Two recent examples provided by Thompson involved the communications and aquatics committees. In the case of the communications committee, Thompson told the board that there had been some confusion caused when the committee asked the OPA public relations director to assist in a survey the committee was discussing. Apparently she was confused as to whether she should assist. Apparently she can, but only with the approval of the Thompson and the board. In the case involving the aquatics committee, Thompson cited the recent incident in which a member of the committee, acting outside the committee structure, was critical of staff in public remarks delivered to the board of directors. He said he would be reluctant to allow department heads to attend committee meetings if they would be verbal-

$)3#/6%2

ly abused by committee members or if confidenbtial information given to them is revealed publicly outside the committee structure. OPA Director Sharyn Oâ&#x20AC;&#x2122;Hare was asked early in the current board term by Terry to attend advisory committee meetings and assess member attitudes. She said she discovered a lot of confusion and angst among the committees as to their roles, and she also said she frequently heard complaints that the board was not giving feedback to the committees after they submitted recommendations for board consideration. Among her recommendations to her colleagues was more effective two-way communication between committees and the board, as well as reaffirming the general managerâ&#x20AC;&#x2122;s right to ask commit-

tee to research topics of mutual interest. Her colleagues for the most part agreed that asking the committees to engage with Thompson as proposed was OK, at the same time confirming that the committeesâ&#x20AC;&#x2122; primary function continues to be advising the board on topics within their areas of interest. Director Dan Stachurski cited one other example of where he believed a committee had overstepped its bounds at the same time it was providing a service to the community. He said the parks and recreation committee was doing good work cleaning up the communityâ&#x20AC;&#x2122;s walking trails, but had erred in calling them bike and walking trails. He said the trails lack the width to accommodate both walkers of wide girth and bikers. The committeeâ&#x20AC;&#x2122;s board liaison, Terri Mohr, conceded that she had not realized that the trails in question were for walkers only.

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presented to Thompson. The natatorium idea may appear in the list of projects that the general manager is assembling for a revised â&#x20AC;&#x153;rack and stackâ&#x20AC;? to be presented to the board of directors by June. The idea of an indoor aquatics center was discussed by the committee at its May 1 meeting in the context of replacing the existing Sports Core indoor pool sometime in the next five to ten years. Committee members expressed no support for the OPA building a new aquatics center anytime in the next ten years, instead treating the concept as something that could be considered in a timeframe of ten years or more, and then not by the OPA operating alone. Reister told the panel that she has been working on the assumption that there would be little support in Ocean Pines for taking on a multi-million aquatics project anytime in the foreseeable future. She said she regards the concept as something that might be feasible only in the distant future and in the context of a joint venture with Worcester County, the Mid-Delmarva YMCA, Atlantic General Hospital and possibly other entities that would combine resources. Grant money might also be part of the funding mix. Property on Route 589 owned by the Mid-Delmarva Y is seen as a possible site for such a complex. As an alternative to setting aside money in the next ten years for a new aquatics center, the committee is solidly behind a concerted effort to improve and maintain the existing five pools in Ocean Pines. The committee is recommending that the OPA keep all four outdoor pools filled with water over the winter, as a way of the protecting them from the spalling or plaster delamination that

TRUST THEIR HOMES TO T

he Ocean Pines Associationâ&#x20AC;&#x2122;s aquatics advisory committee is not supporting a new aquatics center, sometimes called a natatorium, to replace aging swimming pools in Ocean Pines in the next five to ten years, committee chair Virginia Reister has confirmed. The committee chair, at the request of OPA General Manager Bob Thompson, has been researching the concept. Reister has assembled a dossier of information on a natatorium that will shortly be

OCEAN PINES

Aquatics center From Page 24 has been occurring to some extent at all the outdoor pools in recent years. They are also suggesting that the OPA invest in pool covers, for reasons of safety, aesthetics and keeping debris out of the pools over the winter. Thompson has been resisting the idea, telling the committee at its March meeting that there is no industry consensus on the issue of whether pools can be drained at the end of the summer season. Committee members believe that pool manufacturers routinely advise keeping pools filled and will not warrantee their surfacing products unless that basic maintenance practice is followed. The committee is supporting a plan to resurface, repair skimmers and to add perimeter coping at the Sports Core pool in late summer, for which the board of directors has set aside $60,000 in this yearâ&#x20AC;&#x2122;s capital budget. The poolâ&#x20AC;&#x2122;s surface in various locations has worn down to concrete, and committee members have expressed fear that the pool could experience a catastrophic failure if the pool is not resurfaced very soon. At the committeeâ&#x20AC;&#x2122;s March meeting, Thompson declined to commit himself to proceeding with Sports Core resurfacing this summer, instead suggesting that those funds could be diverted to building a new indoor pool, aka the natatorium. As envisioned by Thompson, a natatorium could include a competition-ready 50-meter length pool, a warm-water therapy pool, and a water park. He also suggested that the existing pool cover could be relocated and used as a greenhouse cover in the Public Works department. OPA President Tom Terry and member Sharyn Oâ&#x20AC;&#x2122;Hare attended the committeeâ&#x20AC;&#x2122;s May 1 meeting. During discussion of the natatorium idea, Terry suggested that the decision-makers would need to keep in mind that Ocean Pines is managed by a homeowners association and that its amenities should be sized accordingly. But he seemed receptive to idea of some sort of joint venture to build a regional facility, so that the cost burden would not reside primarily with Ocean Pines property owners.

Clarke still pressing for boat ramp monetization had called for board approval to direct OPA General Manager Bob Thompson to investigate ways and means of monetizing boat ramps, something he has said heâ&#x20AC;&#x2122;s been doing anyway without board prompting. In brief remarks at the boardâ&#x20AC;&#x2122;s April 24 regular monthly meeting, Clarke said that his objective is not to force Ocean Pines property owners and residents to pay for the privilege of launching their

The committee briefly debated the idea by one of its members in support of building a new outdoor pool adjacent to the indoor pool at the Sports Core, and another member, Kelly Middleton, suggested that whatever the OPA does in the future to improve its aquatics offerings, the pools should become â&#x20AC;&#x153;funâ&#x20AC;? again for families and younger people. The consensus on the committee is that the removal of diving boards from the pools in recent years has not been well received by young people. Terry promised to research the insurance costs of restoring a diving board to at least one of the pools. The Swim and Racquet Club with its deep well would be the most likely candidate. The committee also noted in passing that itâ&#x20AC;&#x2122;s been discovered that the Beach Club swimming pool is not â&#x20AC;&#x153;holding waterâ&#x20AC;? as the Public Works Department prepares to reopen it for the summer season. Efforts are under way to investigate the source of the leak and to fix it before the pool reopens Memorial Day weekend.

boats, since they already pay for the privilege when they pay their annual lot assessments. Instead, he said his intention is to â&#x20AC;&#x153;eliminate the free use of the boat rampâ&#x20AC;? by those who donâ&#x20AC;&#x2122;t live or own property in Ocean Pines. He said that while heâ&#x20AC;&#x2122;s aware that Worcester County includes the ramp in its brochures promoting boat usage in the county, White Horse Park â&#x20AC;&#x153;is not a county ramp.â&#x20AC;? Nor is a similar launch facility near the Mumfordâ&#x20AC;&#x2122;s Landing swimming pool, Clarke said. Whatever proposal Clarke comes up with â&#x20AC;&#x201C; and he said he continues to meet with Thompson to see if they can reach

some meeting of the minds on a proposal both can support â&#x20AC;&#x201C; there are some indications that at least some directors will have difficulties with the concept and particulars. After the April 24 meeting, Clarke said he doubted that Thompson would support a boat ramp fee proposal in time for implementation this summer. OPA President Tom Terry questioned the proposalâ&#x20AC;&#x2122;s â&#x20AC;&#x153;IRS impact,â&#x20AC;? a reference to the possibility that, if outsiders are treated differently from property owners with respect to this particular amenity, the IRS might decide that any revenues collected from boat ramp fees are taxable as income unrelated to the OPAâ&#x20AC;&#x2122;s purpose as a tax-exempt social welfare organization. Clarke seemed to suggest that there shouldnâ&#x20AC;&#x2122;t be an IRS problem because the boat ramp would be accessible to the public, and that the only difference between Ocean Pines residents and propq

By TOM STAUSS Publisher lthough he admits to falling behind schedule in bringing a proposal to the board of directors on monetizing the White Horse Park boat ramp, especially as it relates to outsiders who use the popular boat launch facility, Ocean Pines Association Director Marty Clarke vows to have something for his colleagues to consider at their May monthly meeting. He had hoped to have something for the April meeting and he actually had arranged for a motion to be placed on the board agenda in March, only to rescind it because he said he needed more time to develop the idea. The motion simply

May-Early June 2013 Ocean Pines PROGRESS

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26 Ocean Pines PROGRESS

OCEAN PINES

May-Early June 2013

Kiwanians of the month

Pictured are (L-R) Mary Evans, Kiwanis President Barb Peletier, and Mike Evans. The Evanses were honored as the latest Kiwanians of the month by President Peletier at the April 17 weekly meeting in the Ocean Pines Community Center. The Evans chaired the 2012 holiday toy drive, worked on the Christmas Tree decorating in Whitehorse Park, worked the winter pancake breakfast in February, sold Kiwanis hotdogs for the OPA Easter/spring celebration, worked the Italian dinner on April 14 at DeNovo’s and procured the wine for the wine tasting and Auction May 4. They’ve been members of the club for five months.

Boat ramp fees From Page 25

erty owners and outsiders is the method of paying for the boat ramp’s maintenance and availability. When Director Sharyn O’Hare asked Clarke what the revenue potential would be for the boat ramp, he said it could be in the six figures. Director Dan Stachurski said that, as part of a feasibility study, the OPA could post someone with a clipboard on site

to count the number of outsiders and those with an Ocean Pines connection who use the ramp. He suggested that Ocean Pines Boat Club members could be asked to volunteer for the job. Thompson said that it’s his understanding that no one from the boat club or the Marine Activities Advisory Committee would be interested enough to participate. He said that their numbers don’t so much oppose Clarke’s idea as simply have “no interest” in it. Clarke said that if that’s the case it

may be because of concern that the OPA will at some point try to charge Ocean Pines residents and property owners for access. A former OPA director and boat club member Bob Abele told the directors that a survey was done several years ago on boat ramp access and revealed that “very few” outsiders use the White Horse Park ramp. He said the OPA would need to install a gate at the site to control access, and that in his view the attempt to levy fees for access would be “counter- productive.” He said the likely result would be anger and confusion, and a “hornet’s nest” of opposition, along with costs that would exceed the revenue. “It doesn’t seem rational to consider it,” Abele said. Stachurski, however, seemed open to the possibility. He repeated his suggestion for a survey of current users, and suggested that June would be a good time to start collecting access fees if the board approves them. Thompson joked that hiring personnel to collect data at the ramp would be a non-budgeted item, a sly reference to Clarke’s consistent opposition to expenditures that are outside of the OPA’s approved budget. The board took no action on a fee for access to the White Horse Park boat ramp this summer when it approved the Fiscal Year 2014 budget in late February. Pushing the idea during the budget review process, among others, was Bud-

get and Finance Advisory Committee member Gene Ringsdorf, a long-time proponent of imposing fees on those who use the White Horse Park boat ramp. He said the idea was intended more as a way of monitoring what goes on at the site, and who uses it, than as a revenue measure, although it would have the collateral benefit of introducing a new OPA revenue stream, say advocates. Ringsdorf raised the proposal with Thompson when the committee met with him in January. Thompson admitted that he had “completely forgotten about” the idea when drafting his proposed budget for 2013-14. “We (the OPA staff) had looked at it,” Thompson told Ringsdorf. The general manager said the fees might be $25 or $30 for residents, and $50 for non-residents, should he recommend them to the board for adoption, something that he did not do later in the budget process. Usually when Thompson doesn’t act on something, it’s because he has doubts about the idea’s efficacy. Ringsdorf said those paying the fees could be given stickers that would be affixed to boat trailers, with Ocean Pines police officers tasked with enforcement by periodically checking the trailers left on site. Thompson said that there would a “challenge” attempting to enforce access to the ramp with an access gate. He also noted that the ramp is listed in county literature as a ramp open without charge to the public.

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OCEAN PINES

May-Early June 2013 Ocean Pines PROGRESS

Public Service Commission Law judge approves sale of Eastern Shore Gas Co. to Chesapeake Utilities State regulatory agency official also approves ‘blended’ natural gas rate structure and new line item for conversion costs, while homeowners will be responsible for appliance replacement costs whether appliance replacement costs are included in the SIR, an ambiguity that may require further clarification as natural gas roll-out proceeds. The Romine decision distinguishes between appliance conversion costs and appliance replacement costs, a distinction that homeowners may have difficulty in comprehending. That suggests that Chesapeake faces a challenging task of customer education as natural gas roll-out occurs in the coming years. Under Romine’s decision, Newco, which is the Chesapeake subsidiary established to hold former ESG assets, will “provide each homeowner with a conversion assessment, which includes the cost of each conversion or replacement planned for appliances and other similar equipment owned by the homeowner.” The decision says that “if a homeowner chooses to replace an appliance that is planned for conversion, then the homeowner must pay the difference between the cost of the conversion and the cost of replacement.” This seems to suggest that appliance replacements costs will become the responsibility of homeowners outside the SIR charge, while appliance conversion costs – adjustments to existing applianc-

es – will be components of the SIR. What Romine did not address is how in-home appliance replacement will be paid for. Romine makes clear that appliances outside the home, such as swimming pool heaters, are excluded from the SIR component list. There is nothing in Romine’s language that specifies that appliance replacement costs can be spread out over time, but that may become the intent of Newco as it tries to convince its customer base to switch from propane to natural gas. Large appliance replacement costs, as opposed to conversion of key appliance components, could be quite costly and could discourage some homeowners from converting to natural gas. Jeffrey R. Tiebohl, vice-president of Chesapeake, in testimony in support of the agreement that formed the basis of Romine’s decision, wrote that the company’s recovery of “behind-the-meter conversion costs” will occur over time through the SIR, rather than by large upfront customer payments. Behind-the-meter costs are those that occur in the home, and generally include appliance conversions and any needed replacements. In earlier filings with the PSC, there were indications that Chesapeake Utilities intended to “socialize” these conver-

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sion costs over the entire customer base in the county while avoiding a separate charge on monthly billings for them. The inclusion of the SIR as a separate line item on customer invoices makes it clear that in fact a separate charge for conversion-related costs will become a reality as a result of the PSC decision. While conversion costs are being socialized through the SIR, Romine’s language suggests that any appliance replacement costs won’t be. What’s not clear is whether appliance replacement costs can be spread out over time by including them as a third line item on customer invoices. That’s a detail that no doubt will be clarified in due course. In documents on file with the PSC, Chesapeake referred to many lower income and fixed-income residents in the county who could balk at converting to natural gas if they face hundreds if not thousands of dollars of out-of-pocket expenses related to converting their appliances from propane to natural gas. As proposed and now ratified by the PSC law judge, Chesapeake had indicated that its residential customers would be billed at an across-the-board blended rate that would charge all residential customers an equivalent rate, regardless of whether they are purchasing natural gas or propane. The blended rate would drop as more customers are converted to natural gas, and it would not matter which community in the county is the first to be converted. q

By TOM STAUSS Publisher Maryland Public Service Commission law judge on April 24 approved the sale of Eastern Shore Gas Co. to Chesapeake Utilities Corporation, along with a rate structure designed to facilitate the conversion of ESG’s propane distribution system in Worcester County to natural gas, a complex process that will directly affect ESG propane customers in Ocean Pines. The decision by Chief Public Utility Law Judge Terry J. Romine will become the official order of the PSC on May 29 unless there is an appeal filed before then, considered unlikely because Romine’s decision is based on a compromise worked out by the PSC staff, the union representing ESG employees, and Chesapeake Utilities. The decision sets out the manner in which former ESG customers will be billed for conversion costs, but the language is not entirely clear in some of its key details. In addition to monthly usage charges for natural gas or propane on what’s been called a blended rate structure, designed to accommodate the extended roll-out of natural gas conversion in the county, the new natural gas tariff establishes a second line item that will appear on customer invoices, called a system improvement rate, or SIR. The agreement says all former ESG customers will benefit from an immediate reduction in energy bills regardless of where they stand with respect to the natural gas roll-out. In the first year of roll-out, however, the reduction will be barely noticeable. Over time, as natural gas conversions occur, the rates are expected to decrease. Cost components of the SIR include inside-plant conversion costs, distribution system conversion costs, and costs associated with a March 2003 consent order agreed to by ESG, the decision says. There is no specific mention of

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28 Ocean Pines PROGRESS

OCEAN PINES

May-Early June 2013

Pines Plaza under contract, in due diligence phase County moving ahead to complete engineering on new service area infrastructure By TOM STAUSS Publisher he Pines Plaza Shopping Center is under contract to be sold to a Baltimore-based commercial developer, with the due diligence phase continuing as of late April, an informed source told the Progress recently. The contract purchaser is Vanguard Realty Division, which is evaluating whether or not the shopping center, located just west of Ocean Pines on Cathell Road, can be redeveloped. The company has been active in developing and managing shopping centers in coastal Delaware, and is generally thought to be well capitalized. Company representatives have been in contact with Worcester County’s Public Works department, water and wastewater division, to determine the availability of public water and wastewater treatment services. The answer has been in the affirmative, but is contingent on the county finalizing plans to create a new service area in the vicinity of Cathell Road and Route 589. Pines Plaza is the lynchpin of efforts to create that service area. The Worcester County Commissioners recently authorized the water and wastewater division to complete the engineering for it, in anticipation of the Pines Plaza ownership change. Although some county officials have said that the sale had gone to settle-

Eastern Shore Gas From Page 27 Every customer is supposed to benefit as the company completes more and more conversions and is able to replace its purchase of higher cost propane with lower cost natural gas, spreading the benefits to all customers with quarterly rate reductions. In filings earlier this year, it appeared that Chesapeake intended to carry the idea of blended rates one step further by socializing what it calls “behind-the-meter” costs associated with conversion, with no distinction between appliance conversion and replacement costs. The filings seemed to suggest that Chesapeake didn’t want to ask for an immediate conversion fee from customers but instead preferred to roll these costs into monthly invoices, over time. According to one filing, Chesapeake indicated that an add-on conversion would be “confusing” to customers not yet converted to natural gas. Implicitly, the company seemed to be

ment, as of late April it was still in the due diligence phase common to transactions of this nature. County officials are hopeful the deal will go through, as that is seen as the most likely way that the Pines Plaza’s pro rata share of debt service related to the installation of water and wastewater collection infrastructure will materialize. The county has received formal notice that federal and state loan funds are available to finance that project, as well as to provide funding for a sizable payment to the adjoining Ocean Pines Service Area in what’s called an equity contribution. That contribution compensates the OPSA for the fact that it is providing wastewater treatment services for the neighboring service area. Last year, Worcester County Deputy Public Works Director John Ross told the Progress that the county didn’t feel comfortable with proceeding with construction unless and until officials are sure that Pines Plaza’s owners will be able to pay their share of debt service associated with the creation of the new service area. With word that Pines Plaza is under contract, that calculus changed. Efforts to proceed with the project could be revved up fairly quickly, he said. “The engineering and construction of this project really isn’t all that complicated,” he said. Early in 2013, county officials received word from the U.S. Department of Agriculture on the status of funding that will provide a permanent source of water and wastewater treatment services for the Pines Plaza, located just

west of Ocean Pines and Route 589, and help create a new Greater Ocean Pines Service Area for much of the commercial district on nearby Cathell Road and Route 589. The Maryland Board of Public Works previously signed off on two separate requests before the state, one for about $200,000 for water improvements and another one for about $600,000 for wastewater collection. In January of last year, Ross advised members of the Ocean Pines Water and Wastewater Advisory Committee that he had been notified via e-mail by the Department of Agriculture office in Dover, Del., that the long-established rural development program administered by that department would provide $2.1 million in low-interest loans to the county to help create the service area. Total cost of the project is now estimated at $3 million. Ross told the advisory committee that the federal portion of the funding is available for up to three years, and that therefore the current delay doesn’t threaten the project’s primary funding source. Still, one of those years has already expired. Much of that funding from that $2.1 million loan will in turn be allocated to the Ocean Pines Service Area in the form of an equity contribution related to the cost of building and expanding the Ocean Pines wastewater treatment plant years ago. Pines Plaza and the other commercial properties in the newly created service area will become customers of the OPSA, similar to the relationship between the OPSA and other nearby subdivisions or shopping centers, such as Pennington Commons, Baypoint Plan-

suggesting that it didn’t want any impediments to propane customers converting to natural gas or public relations difficulties with customers waiting for conversion. Some documents on file with the PSC indicated that outside gas stoves and heated outdoor swimming pools would be excluded from this socialized approach to “behind-the-meter” costs. Indeed, customers with those items will be required to retrofit or buy new stoves and pool heaters, at their own expense, according to Romine’s decision. An informed source who asked that he not be quoted said that one reason Chesapeake seemed to be willing to absorb the upfront costs of household appliance conversion is that in most cases appliances can be fairly easily retrofitted for natural gas, and the company will be able to develop good working relationships with contractors who will be authorized to handle these household conversions in an efficient and consistent manner. It now appears than when conversions aren’t possible, and replacement

is the only option, homeowners will be forced to foot the bill. That has been a chief concern of natural gas skeptics for quite some time. The acquisition of ESG assets by Chesapeake ran into some opposition, with filings indicating that ESG’s unionized work force was objecting to it on grounds that jobs would be lost in what effectively would be a merger of ESG and Chesapeake. But in February, Chesapeake offered to hire every ESG employee on staff in the county, and the union that represents these employees dropped opposition to the ESG purchase subsequent to that. Even with Romine’s ruling, it seems unlikely that there will be any massive household and commercial conversion activity this year, but the proximity of a natural gas holding facility near Stephen Decatur High School and the nearby intermediate school could bode well for the conversion of these facilities before next winter, a source told the Progress.

tation and River Run. The debt service on the loan portion of the $3 million package would be a responsibility of the Pines Plaza owners, its tenants, and other commercial property owners in the new service area, Ross said. The funding of the project also would facilitate the redevelopment of a parcel located at the intersection of Cathell Road and Route 589, where a long-vacant real estate office sits. Walgreens has long planned construction of a new pharmacy for that corner parcel, contingent on the availability of public water and wastewater treatment services. The funding of the new service area would solve that problem. The rationale for pursuing options for federal and state funding of the project is that the new service area is being created to replace failed and failing septic systems in much of the commercial area just west of Ocean Pines and Route 589. Ross has said previously that about a million dollars of the funding will cover the equity contribution for the Pines Plaza, a struggling shopping center whose ownership is believed to be in no position to easily come up with an upfront equity contribution, but earlier was thought to be able to handle debt service on it. With the availability of public water and wastewater services, Pines Plaza property managers previously told Worcester County officials that they would be in a much better position to attract new clients. Other business owners in the new service area have been given the option of coming up with their full equity contribution or financing it over time, Ross has said. About $300,000 or $400,000 of the project money covers equity contributions for businesses in the new service area other than the Pines Plaza. In total, Ross said about half of the funding would cover prepaid equity contributions. The other half of the $3 million in state and federal contributions will be used to build water and wastewater lines for the new service area, that will extend down Cathell Road from the vicinity of the Adkins Co. hardware store and Verizon substation southward to Route 589, where it will pick up the 7-Eleven store, the adjoining real estate offices, banks and the McDonald’s restaurant, Ross said. Ross has said that of the $3 million, the share of it that covers the Pines Plaza equity contribution will become available for use in the Ocean Pines Service Area’s capital projects budget. Possible uses of the money would be to help finance improvements to Ocean Pines network of pump stations and to embark on a comprehensive community-wide program of holding tank replacement.

May-Early June 2013 Ocean Pines PROGRESS

By TOM STAUSS Publisher n an easing of sustained criticism of Ocean Pines Association management for what he believes has been a too slow approach to filing suit in small claims court against property owners who are delinquent in paying annual lot assessments, OPA Director Marty Clarke now says he’s satisfied that management is proceeding to take action consistent with a motion passed unanimously by the board in late January. OPA General Manager Bob Thompson told the directors during their monthly meeting April 24 that the OPA is in the early stages of filing suit in small claims court against the owners of five Ocean Pines properties, three that owe more than $5,000 and two that owe less than that. Claims that exceed $5,000 are more expensive to pursue because they require attorney involvement. Claims less than $5,000 can be handled in small claims court by OPA staff without the assistance of any attorney. Clarke told the Progress after the meeting that he’s OK with Thompson’s steps taken thus far, given the fact that the OPA is entering a particularly busy time of year. But he said he reserved the right to change his mind should it turn out that the OPA is not serious about pursuing delinquencies in court in addition to the traditional lien-and-foreclosure approach. Thompson told directors that there

Clarke more supportive of management efforts to file small claims cases Director says he’s satisfied with recent preliminary efforts by management to identify property owners it can sue on behalf of the OPA to collect delinquent assessments are 59 properties in which delinquencies exceed $5,000 and that significant title and related research has been conducted on 26 of them. Of those 26, he said two had been sold and assessments paid, two were pending short sales, 23 had no equity, three were in bank foreclosure, three had possible equity positions and one was in OPA foreclosure. Thompson said the small claims actions are in addition to the traditional foreclosure proceedings. Director Ray Stevens told Thompson that he should not wait until a property owner has accumulated $5,000 in arrearages before pursuing them in small claims court. “The earlier we pursue small claims the better off we’ll be and the more we’ll be able to collect,” Stevens said. He said that once Thompson and his staff “get more comfortable” with the process of

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pursuing delinquencies in small claims court, more such filings should occur, even though the board resolution calling for such action specifies $5,000 as the threshold amount requiring action. The January motion, proposed by Clarke, instructed the general manager to “initiate legal action against those members for all money due and reasonable attorney fees.” In his motion, Clarke said that the OPA’s declaration of restrictions, articles of reinstatement and board resolution F4 requires such action to be taken. After the March board meeting, Thompson told the Progress he had no immediate plans to file lawsuits against property owners in small claims court. He suggested then that the traditional lien-and-foreclosure process might constitute legal action consistent with Clarke’s January motion.

By the April board meeting, Thompson had changed his tune considerably. During the February board meeting, Thompson and OPA Legal Counsel Joe Moore outlined the process of filing a lawsuit in small claims court. Both said the cost of filing claims, particularly those of more than $5,000, and defending them, could partially negate any award from the court. Thompson said he was merely trying to point out some of the practical difficulties in trying to collect from delinquent property owners using methods other than the traditional lien-and-foreclosure process. In response to the motion passed in January, Thompson gathered a committee comprised of the OPA’s controller, assessment supervisor, legal counsel, treasurer, assistant treasurer, and Budget and Finance Advisory Committee chairman to review the financial impact on the association. The committee recommended exempting delinquent property owners who have established a payment plan with the OPA from legal action and reviewing all of the previous contact with those who owe back dues to determine if it is really likely the OPA will be able to collect the money from them. The committee also recommended initially exempting delinquent owners who live outside of Worcester County. Clarke later said he had no problem

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30 Ocean Pines PROGRESS

OCEAN PINES

May-Early June 2013

OPA board approves bylaws, election related charter changes

By TOM STAUSS Publisher hanges in the Ocean Pines Association’s charter were approved in a 6-0 vote of the board of directors in a special meeting April 24, but only after a spirited discussion over whether the most significant charter change, one pertaining to the board’s powers to amend OPA bylaws, is permanent or subject to subsequent amendment by a future board. According to Director Dan Stachurski with no dissent by his colleagues, the most significant approved change in the charter removes language that empowers the board to make changes in the bylaws. The bylaws do not give the board the power to change bylaws, instead giving that authority solely to property owners in a community-wide referendum. Members of the OPA’s bylaws and resolutions advisory committee have long noted that the bylaws as currently written and the OPA charter, which has been amended and restated at various times over the years, are in apparent conflict with respect to board powers to amend bylaws. To remove the apparent conflict, the committee drafted the charter changes, among other housekeeping changes of no apparent policy significance. The special meeting was called one hour before the board’s regular monthly meeting on April 24, and initially seemed as if it would be little more than a pro forma session that would rubber stamp the committee’s work product with little discussion and even less input from the public. That expectation was dashed when

property owner Joe Reynolds questioned whether the change with respect to board powers to amend the bylaws would withstand future board action to restore the power in the charter, which he noted supersedes the powers conferred in the bylaws. Stachurski also said that relevant hierarchy of documents that govern homeowner associations in Maryland are topped by the Maryland HOA Act, followed by HOA charters and articles of incorporation and then the HOA bylaws. He said that hierarchy of controlling documents is the reason the board needed to remove any provision in the charter that would give the board authority to amend bylaws in conflict with the bylaws themselves. Committee chair Jim Trummel at one point during the discussion suggested that he didn’t agree with the idea that the OPA charter trumps the bylaws, but he nonetheless supported the charter change as a way of removing even the hint of conflict. OPA President Tom Terry acknowledged Reynolds’ critique of the charter change by conceding that it was theoretically possible some future board might see a reason to restore its powers to amend the bylaws, but he downplayed the possibility that it would ever occur. Trummel emphatically agreed, suggesting that a future board couldn’t decide to change the charter on a whim, that the Maryland annotated code specifies that such a change would require a compelling reason to do so. He said the clear intent of Maryland law is to confer the authority to change HOA bylaws on members of the HOA rather than the HOA’s board of directors. Later in the regular meeting of the board, the directors approved on second and final reading two changes in governing resolutions they had endorsed on the

first reading March 27. One resolution revises the functions of the comprehensive planning advisory committee. The other one alters the resolution establishing the elections committee. Resolution C-07 is a complete revision of the existing resolution regarding the duties of the comprehensive planning advisory committee. It was prepared by that committee and submitted to the board for review and approval. The new resolution states that the committee advises the board of directors in developing an official long-range comprehensive plan for the orderly growth and development of Ocean Pines. The committee is tasked with developing a general, long range plan that will act as a policy guide for the future decisions concerning the overall growth and development of the community as it responds to the demands of its owners, residents and guests. The committee will gather facts, investigate alternatives, evaluate issues, and upon the board’s request, prepare a

Small claims From Page 29 with either recommendation. Thompson said the goal is to do some preliminary work “so the likelihood of recovery is improved and risk of throwing good money after bad” is reduced. “Let’s start it with a smaller group and see how it works out.” He said doing so limits the cost to the OPA as well as its risk “and we can see how the process works.” Moore said pursuing claims of $5,000 or more requires representation by an attorney even in small claims court. However, for amounts less than $5,000 anyone could represent the OPA by the judge in small claims court.

new comprehensive plan or modify the current comprehensive plan for the orderly growth of the entire community. When performing this function, the committee is to take into consideration community demographic, land use, natural resources and environmental concerns, housing, transportation, public infrastructure, economy, quality of life and recommendations for implementation. The committee is directed to undertake a review of the current comprehensive plan every five years to evaluate its effectiveness and to allow for updates in information and recommendations based on any changes that are observed when making this review. The committee will perform studies of community needs as requested by the board. When preparing reviewing or modifying the comprehensive plan, the committee will solicit information from pertinent sources, including developers, local governmental agencies, public utilities and commercial businesses, other communi-

Pines directors pass housekeeping resolutions on second reading

Clarke asked if the OPA could sue for an amount less than $5,000 and then later file suit to collect any remaining debt owed by the same property owner. Moore said the court may not allow that. Instead, he suggested that it may be more practical for the association to simply sue those with large outstanding debts for $4,999 in order to avoid having his office involved in the small claims process. “You can’t reserve that which you should have done and later sue on the same claim because the court is going to say you waived that claim,” Moore said. “Because it’s the same debt; it’s not a new debt.” OPA President Tom Terry said property owners who don’t live in Worcester County also have the right to have their cases heard in the county where they reside, adding to the cost of any lawsuit for the association. The OPA can file the case in small claims court in Worcester County, but the owner can ask to have it moved to their home county, Moore said. Thompson added that even if the court finds for the OPA in small claims, there is no guarantee of collecting the outstanding assessment money. He said the OPA will still need to try to garnish the wages of the property owner or their bank account. There are 63 property owners, some of whom have made payment plans, currently owing more than $5,000 to the OPA. Collectively they owe $355,000. Thompson said the estimated cost of pursuing those cases in court is $1,000 per case if the property owners contest the association’s claims of indebtedness. Clarke said those costs become the responsibility of the property owner when the OPA wins the case. Moore said the OPA can ask for reimbursement of legal fees but “that is up to the court. They can reject it.”

WORCESTER COUNTY

May-Early June 2013 Ocean Pines PROGRESS

County names Higgins 31 WORCESTER COUNTY as incoming chief School board seeks funds to study expansion of Showell elementary administrative officer March-Early April 2013 Ocean Pines PROGRESS

Charter changes

drawbacks, including limitations on expanding support areas like the media center and cafeteria, significant upHiggins grades said. to bathrooms and mechanical systems, classrooms not Higginsinterior is a certifi ed publicwould accounhaveand suffi cient windows. Another contant has headed up the Worcester cern was construction with County Treasurer’s Officoordination ce since joining thecounty schoolas operations. the the finance officer in 1996. study evaluated site to “IThe would likealso to thank the the Commisdetermine if suffi cient space was availsioners for this opportunity to serve as able for construction of a replacement the next county chief administrative ofschool. The study found that the 22.07 ficer,” Higgins said. “I look forward to the acres available at the Showell site meet challenge and am thankful for the manthe state requirement for such a project. agement that we plans currently have in Two team conceptual incorporating an additional 32,000 square feet of

By ROTA L. KNOTT Contributing Writer he Worcester County Board of Education By ROTA L. KNOTTis hoping to include funding to begin architectural Contributing Writer planning for the renovation and expanong-time Worcester County emsion of Showell ployee Harold Elementary L. Higgins isSchool poisedor construction a new school replace to take theofreins as its chieftoadminit in theoffi fiscal year 2013-14 but istrative cer later this year.budget, In April needs to have the project cost excluded Higgins was appointed by the Worcester from the state’s maintenance of effort County Commissioners to succeed Gercalculations. The estimated cost of the ald Mason in the county’s top position. SES project is $100,000. “Higgins is the person for theof Jerry Wilson,right superintendent job,” Commissioner schools, presented President a request Church to send said. has along experience tenureof that“He project, with aand purchase with the county. We’veand worked with him computer tablets business softforware a number of years and feel thatCounty he is upgrades, to the Worcester more than qualified take on role.” Commissioners ontoMarch 5. this He needed the OK to move forward As commissioners the county’s incoming chief adwith askingoffi the Maryland ministrative cer, HigginsDepartment will offiof Education the costrole of those projects, cially step into ifhis new in late June totalingthe $400,000, can be excluded from following retirement of Mason. maintenance of effort calculation for the “Citizens and government working upcoming budget year. together is the torch that Gerry passes of effort requires the on toMaintenance me that I intend to carry and light same amount of money to be expended our way as we continue to go forward,” per student as in last year’s budget. Any deviation from that requirement needs state approval. Wilson said architectural engineering feasibility study is needed before the From Pagesystem 30 school can begin planning the SES project. He said the renovation and ties, Ocean Pines property owners and expansion or replacement the other school the board, general managerofand is nextcommittees. in line following renovation of advisory Snow Hill High School. The resolution specifies that the comA 2008 study estimated it would mittee should have at leastthat three, but cost about $27.7 million to make the exnot more than nine members and will isting school big enough to accommodate submit an annual report to the board by future student populations, but building Oct. 31. a new school on the same site would only Resolution M-06 amends the base cost about $25.8 million. resolution that establishes theSchool elections The Showell Elementary land committee remove language that simuse studytodetermined that the existing plyproperty describes the bylaws say about is what sufficient to accommodate the of OPA and voting a election renovation and directors addition to the existing school ortothe construction of a rematerials sent members. placement school.included The study included One amendment in the resoan extension evaluation of application the existing lution updates the candidate site features, including surprocess as approved lasttopographic year. It now veys, states wetlands simply that delineation, “The processevaluation through of parking and qualify circulation and which members for patterns a place on investigation of election utility options. the ballot for the of directors is The existing 53,610 square foot facilicontained in Section 5.02” of the bylaws. ty was constructed in 1976 and augmentAnother amendment in resolution ed with a 12-classroom addition in 1990. M-06 to proxies. It states that Overrelates the years as northern Worcester “proxies, when included in voting packCounty has grown, SES, which is locatages, shall comply 3.03” of ed on Route 589 with northSection of Ocean Pines, the bylaws. It increased further states that “proxexperienced enrollment to the iespoint used where for voting issues included in nineonportable classrooms a meeting notice shall be directed proxare currently used to accommodate all of ies. Only those proxy forms approved by the instructional programs. Those portableofclassrooms 25 percent of the vote the board provide of directors are valid.” classroom spaces is that areproposed availableasat The amendment being the school. a way to simplify the proxy provision. It Restrooms and taken other by support funcis based on actions the board tions are included in the main school and elections committee in preparation forbuilding. the 2012Pedestrian election. traffic between the portables and main building occurs via For last year’s election, a proxy for uncovered walkways that expose stuquorum purposes was included in the dents to inclement weather. voting package and was in a form apThe 2008 study said renovating and proved by thethe board of directors. expanding existing school has many

building space were developed at that time to confirm that renovation and expansion or construction of a new school could be accomplished on the property. Those plans also incorporated expanded parking, improved vehicular circulation patterns and student drop-off areas, playgrounds, stormwater management areas and geothermal well fields. Based on those designs, the renovation and expansion was estimated to cost $27.7 million while the new school would cost about $25.8 million to build. Those costs were based on projected fiscal year 2011 building square foot estimates of $261.80.

The study found that with 81 employees plus students arriving at school in private vehicles, the existing parking lot is insufficient to satisfy the parking demands of the school. Only two handicapped parking spaces are provided for the entire facility and are located in the front of the bus loop. In order to be handicapped compliant, a total of five spaces is needed. About half of the students are dropped off and picked up at school by parents, many of whom park and walk their children to and from the school. That causes a significant demand for parking in the morning and afternoon.

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32 Ocean Pines PROGRESS

WORCESTER COUNTY

May-Early June 2013

County anticipates increase in tax revenue by FY ’15

By ROTA L. KNOTT Contributing Writer

roperty assessment revenues for Worcester County are projected to decline again in fiscal year 2014 but should finally begin an upward trend in FY ‘15 because of a shifting in the reassessment period of some properties and an increase in property transfers. Harold Higgins, finance officer and soon to be the county’s chief administrative officer, on April 16 presented revenue projections for the next two fiscal years to the Worcester County Commissioners. The State Department of Assessments and Taxation provides updated assessable base estimates for each county in November and March of each year. Based on an analysis of the most recent SDAT estimates from March 2013, Higgins said it appears that property assessment values will decline again in FY ‘14 but will experience a slight increase for FY ‘15.

“Fiscal year ‘14 is the bottom of the trough,” he said. The projected assessment decline from FY ‘13 to FY ‘14 is $669 million or lost revenues of $5 million, according to Higgins. Since the revenue projections have slightly changed since January 2012 projections, he said it was imperative to update the commissioners on these changes prior to the start of FY ‘14 budget deliberations.

Higgins said the state has shifted about 5,000 accounts for properties located in West Ocean City and South Point to a different assessment period, moving up their re-evaluation by one year to FY ‘15. That change will help increase the property tax revenue for FY ‘15 by $2.9 million over FY ‘14. The county’s assessable tax base is projected to grow from $15.1 million in FY ‘14 to $15.3 million in FY ‘15. As a

result of that minor increase, county property tax revenues are anticipated to grow from $117.7 million to $120.1 million. Income tax revenue is anticipated to remain steady at $22.4 million as are other taxes, including recordation, transfer, room, food, admission and amusement, trailer park and excise taxes, at $22.4 million. “This is the best guess we’ve got

Higgins appointed

County, he spent 15 years in the banking industry, where he served as both an accounting investment manager and division controller for Equitable and Provident Banks. Prior to that, he spent four years in the public accounting sector. Currently, he chairs the Maryland Government Finance Officers Association Tax Affinity Group. On April 16, Mason announced his upcoming retirement as Worcester County’s CAO. He will retire effective June 30, after 27 years of service to the community. Mason originally began serving as county finance officer in 1986 and became CAO in 1994. Mason led the county during times of unprecedented economic growth, invest-

ing increased revenues into one-time capital improvement projects. Projects completed on his watch include construction of the Worcester County Government Center, Charles and Martha Fulton Senior Center, Worcester County Recreation Center and Animal Control in Snow Hill, the Ocean Pines and Ocean City branch libraries and Worcester County Health Department offices in Berlin and Snow Hill. Renovations and additions to numerous county facilities were completed under his leadership as well, including renovation of the Worcester County Court House, Pocomoke Health Center and expansion of the Worcester County Jail. Mason also navigated the county through recent years of national economic decline.

From Page 31 place. Based on the pool of talent that is here, I am confident we will continue to make a difference.” Under Higgins’ watch, Worcester County has been awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association for its comprehensive annual financial report for four consecutive years. This is the highest form of recognition awarded to local governments for accounting and financial reporting. Higgins graduated from the University of Baltimore in 1977 with a degree in accounting. Prior to joining Worcester

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May-Early June 2013 Ocean Pines PROGRESS

County vote on septic tiers could prompt estate rezonings, demand for public systems Defying the state means moratorium on new major subdivisions that use septic systems; Boggs is only commissioner to support greater state involvement in local land use affairs By ROTA L. KNOTT Contributing Writer

espite a plea to move forward with the proposal from the only representative to speak on behalf of property owners who would be directly affected, including those with a large tract on Route 589, the Worcester County Commissioners decided not to approve a four-tier system governing and restricting the use of private septic systems for new subdivisions. In a 6-1 vote, the commissioners rejected the proposed septic tier maps, which were included in the Sustainable Growth and Agricultural Preservation Act of 2012 adopted by the Maryland General Assembly, following a public hearing on April 16. Only Ocean Pines Commissioner Judy Boggs opposed the motion to refuse the septic tiers. Some commissioners said that they would rather find a way to mitigate the impact on those property owners by considering alternative actions such as rezoning estate (E-1) properties to a different residential category or requiring them to connect to public wastewater systems. Eliminating the E-1 zoning category was proposed by both the Worcester County Planning Commission and planning staff as part of the county’s last comprehensive rezoning but the commissioners shot down that proposal at the time. In justifying his vote against the tiered septic system, Commissioner President Bud Church said the state is “run by four counties” that do not care about the impact of legislation like the septic law on Eastern Shore counties. He said there may be a better way to address the concerns of property owners about the loss of development potential had the complex tiered system been approved. The state’s new septic law does not require local jurisdictions to map the

Tax revenue From Page 32 now,” he said. Also helping boost the county’s revenue is growth of the overall assessment base by 80 to $90 million based on recent property transfer activity, Higgins said. He said the “lower end of the market looks like it’s recovering now” and that properties with a value of $125,000 to $200,000 are seeing an increase in sales activity. Higgins said the state’s predictions were even higher, but his office scaled them back. “We were seeing numbers that were significantly better than what

tiers; however, it provides a penalty to those that do not do so. The law places a total prohibition on major subdivisions from being served by septic systems in jurisdictions that do not adopt a tiered system. Ed Tudor, county director of development review and permitting, said not implementing the septic tier maps will have an impact on about 270 lots that could be developed in the E-1 estate zone, where the owners can currently develop a major subdivision using septic systems. “If you don’t map, you lose that ability,” he told the commissioners.

Boggs said the state legislators simply don’t care about the county’s position. “They are just not listening. They don’t care. They are not going to listen,” she said. Boggs then said said she would not support taking away someone’s property rights by refusing to approve the maps “just to thumb my nose at the state.” Bunting ultimately made the motion not to adopt the tier system, with the motion being given a second by Commissioner Louise Gulyas and endorsed by all but Boggs. “I think it will impact people negatively in E-1 zones across the county,”

“I don’t know that I’ve ever been as conflicted representing clients on a land use issue as I am today ... (the new law is a) gross overreach of power from the state down to this local jurisdiction.” - Attorney Mark Cropper

Church said that amounts to a “a taking of private property rights” in areas where no public wastewater service is available. But Commissioners Jim Bunting argued that is not really relevant because all of the county’s E-1 zoned land is adjacent to areas that are served by public wastewater systems. He said those properties could simply be connected to the public wastewater facilities instead, which is “basically what we would want anyway.” Bunting urged his fellow commissioners not to adopt the maps also. Commissioner Merril Lockfaw agreed and said it was time to “stand up and send a message to the state.”

Boggs said of not following the state’s direction to create a system for the permitting of major subdivisions on septic systems. Although no fan of the proposal, attorney Mark Cropper spoke in favor of the septic tier system during the hearing on behalf of his clients, including the Nichols’ family, which owns an E-1 estate zoned parcel on Route 589 near Route 113, Ocean City Golf and Yacht Club, South Point Holdings and Grey’s Point Inc. Cropper said implementing the system would cause less harm to property owners than not doing so, which could prevent development of some E-1 zoned land.

we’re showing you,” he said, adding that his office “scrubbed the numbers” to reach more reasonable estimates. “That estimate was reduced to what we feel are realistic and attainable numbers,” he said. Meanwhile, the county’s general fund operating budget, which was more than $186 million in FY ‘09 and bottomed out at $163.5 million in FY ‘12, is expected to continue to increase. For FY ‘14 the general fund operating budget is proposed at $166.8 million and by FY ‘15 is expected to reach $169.7 million. “Even though revenue projections have improved slightly, there’s a lot of demand for those revenues,” Higgins

said. The commissioners are currently in the middle of FY ‘14 budget review and deliberations. They need to address a $7.3 million difference between funding requests of $171 million and anticipated revenues. The county plans to use its budget stabilization fund surplus to help address that shortfall but will still be short by about $800,000. The commissioners will hold a hearing on its proposed operating budget at 7 p.m. on Tuesday, May 7, at Stephen Decatur High School. If the county maintains the current tax rate of $.77 per $100 of assessment, property tax revenues will decrease by $3.8 million.

“I don’t know that I’ve ever been as conflicted representing clients on a land use issue as I am today,” Cropper, who has represented clients on land use issues for more than 20 years, told the commissioners. He called the new law a “gross overreach of power from the state down to this local jurisdiction.” Cropper said the law in “unnecessary, unreasonable, but at this point its unavoidable. It’s the law.” He said his official position was to approve the maps, not because he supports that proposal but rather because to his clients it is more damaging not to map. “If you don’t map, we don’t even get to the point of seeking an exemption,” Cropper told the commissioners. He urged the commissioners to adopt the maps but to consider doing “anything and everything you can for larger landowners to help mitigate the impact.” However, instead of siding with the affected property owners, a majority of the commissioners took up with a zealous group of opponents, who didn’t argue the merits of the tiered mapping; instead they simply said the county should defy the state because it is trying to take away local authority. Carol Fazier of Ocean Pines opposed the septic tier maps, saying “if you think a pristine environment is more important than liberty you are mistaken.” She said “environmental zealots” are out of control and the county needs to “stand up to this state power grab and just say ‘no’.” Maryland Delegate Mike McDermott also turned up during the public hearing to encourage the commissioners not to acquiesce to the state’s demands. “This is just the beginning of the end for local planning and zoning,” he said, adding that the septic law constitutes a taking of property rights and he encouraged the county to fight the state on the issue. Berlin area resident Dennis Evans asked the commissioners to vote down the tier maps and to “stop giving power to Annapolis.” Kelly Kennett, chairman of the Worcester County Tea Party, suggested the county fight the issue in the courts and try to have the septic law nullified. County Attorney Sonny Bloxom said that would never happen because the state has such a liberal judiciary. Kennett said she would rather see the county try and fail and getting the law nullified than do nothing. She said the commissioners shouldn’t make a decision based on the chances of success. Church responded that taking that kind of action would result in spending all of the taxpayers’ money to try to achieve something that the county knows will not happen. Bloxom said that type of issue would go all the way to the Court of Appeals and would cost hundreds of thousands of dollars because of the need for specialized attorneys and expert witnesses. He said it would take three years to get to court and in the meantime the law would stay in place.

34 Ocean Pines PROGRESS

May-Early June 2013

Hearn says Cove association, developer could accumulate lots in Sections 14 through 18 for recombination, future sale By TOM STAUSS

Publisher With the April 17 foreclosure auction resulting in the Captain’s Cove property owners association acquiring title to more lots throughout the community, with more acquisitions to come in future auctions, there are indications that the Cove POA is in the early stages of developing a grand strategy for the future of undeveloped Sections 14 through 18. Only two of the 45 lots sold at the April 17 auction were in those undeveloped areas – one in Section 17 and one in Section 18. But that low representation is bound to increase in future auctions, perhaps as early as June, when the law firm hired to handle the foreclosure sales for the OPA is working on details prior to conducting another sale. In remarks at the Cove board of directors’ March 16 meeting, Cove President Tim Hearn mentioned that later in the year the POA will be developing a

more formal strategy for what to do with those undeveloped sections, many of whose lot owners are among those who have fallen behind in paying their POA assessments, or have simply stopped paying altogether. In some cases, lots are developer owned, which means they are not required to pay annual assessments. In a follow-up interview with the Progress, Hearn said that one possibility will be for the POA and Captain’s Cove primary developer, CCG Note LLC, to acquire as many of the lots in Sections 14 through 18 as is possible. In some cases, lots would be acquired in formal foreclosure proceedings, while in other cases property owners who can’t or don’t want to pay annual assessments could be encouraged to convey those properties over to the Cove POA. Once a significant number of the roughly 800 lots in those sections are either in association or developer hands,

it might be possible to combine all the individual lots in each of the sections into a single parcel, Hearn said, with the combined acreage then available for sale to a future developer. The Cove POA, CCG Note and individual lot owners would share in the sale proceeds through a method yet to be determined. Speeding – The Cove board during its March 16 meeting briefly addressed an issue that has been raised frequently in the Cove, speeding on Captain’s Corridor and on the side streets. One possibility mentioned was reducing the posted speed limit on the Cove’s main thoroughfare to 25, though no action to do so was taken. The Cove’s security department has no arrest powers, and its members don’t carry guns. The absence of enforcement power doesn’t mean that the board “should establish a city-like police department,” Cove vice-president Tom Nagle said. One possible antidote for those who consistently bother Cove residents with speeding or loud vehicular noise is for residents to submit formal complaint forms to the POA for resolution, he said. Hearn added that the result of that process could be denial of member privileges or the levying of fines. He also said the POA could consider installing speed cameras in certain locations. Another option suggested by Director Bob Miller is for the Cove’s police

CAPTAIN’S COVE

chief to become a deputy sheriff under Accomack County, with powers of arrest. Nagle pushed back against that idea, opposing the possibility that the chief could carry a gun. “Plus, it would be very expensive” for the association to provide the training necessary for the chief to become a deputy sheriff, Nagle said. One association member said that even if the chief becomes a deputy sheriff, the association has no power to issue traffic tickets under state law for speeding on privately owned roads in Captain’s Cove. “People are over-reacting,” the member said. Bulkheads – Director Buz Williams confirmed what 350 waterfront owners in the Cove recently were told in a letter from the association: The board is actively working on an amendment to the community’s rules that would reinstate a former requirement that all canal lot owners install and maintain bulkheading along their properties. Failure to do so could result in the POA doing the work and billing the property owner for it. The cost per lot to install bulkheading CED$10,000. ranges is estimated at U roughly ED R Of the 350 waterfront lots about 40 lack bulkheading, which in turn causes the POA to expend scarce resources on dredging. The lack of bulkhead could also cause potential permitting issues To Page 36

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May-Early June 2013 Ocean Pines PROGRESS

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WORCESTER COUNTY

May-Early June 2013

Burbage files appeal of Route 589 zoning ruling

he attorney for local developer Jack Burbage has filed an appeal of a ruling from a visiting circuit court judge in late March voiding a decision by the Worcester County Commissioners last year rezoning Burbage-owned property on Route 589 to accommodate an Atlantic General Hospital-affiliated medical campus. Visiting judge Raymond Beck, called in to hear an appeal of the commissioners’ rezoning decision filed late last year by a group of local residents, declared the commissioners had erred in rezoning the 31-acre parcel from A-1 agriculture to C-2 commercial. The commercial zoning would be a requirement if Burbage were to follow through on his vow to develop a medical campus on the site with AGH. Burbage is chairman of the hospital’s governing board of directors. The commissioners in a 4-3 vote had determined that a change in the neigh-

Captain’s Cove From Page 34 with the U.S. Army Corps of Engineers. Cove President Tim Hearn said that the association will soon be dealing with an RFP (request for proposals) to deal with erosion issues in the Copper Point and Starboard Street areas of the Cove. “We don’t think present methods are working,” he said. One possible solution involves elevating bulkheading in the area by three to five feet. Hearn mentioned that the state has given the Cove five years to remove gambions in the bay that were once state-of-the-art erosion control devices but which are now disliked by state regulators. The association has received proposals from Coastal Compliance Solutions of Salisbury to provide “on call” services related to shoreline and permitting issues as well mapping and permitting prior to a phased removal of gambions. Roads – In brief remarks during the March 16 board meeting, Hearn said that the cost to complete all the engineering for road construction in Sections 1-13 has been reduced to about $65,000 from the original estimate of $95,000. The reduction was brought out by the fact that previously completed engineering studies were on file and did not require as much work to reproduce. But the Cove president was not optimistic that any road construction will occur this year, contrary to hopes expressed last year that this year would see some actual road surfacing. Hearn said the hope was to do four-plus miles of roads this year, but that the $150,000 needed to do the work is not currently available. Funds could be included in next year’s budget. Among funding options previously discussed is taking out a bank loan.

AROUND THE COUNTY borhood had justified their decision to rezone the property. The primary change cited in a finding of fact that accompanied the decision was the development of a casino on the site of Ocean Downs Raceway, about two miles south of Ocean Pines near Route 50. Beck, in announcing his ruling from the bench after presentations by competing attorneys, said the change in the neighborhood cited by the commissioners had not been substantial enough to justify rezoning. He said the commissioners had known about the Ocean Downs casino at the time of an earlier comprehensive rezoning and had not changed the Burbage agricultural zoning at that time. In addition, Beck noted that Ocean Downs had been identified as one of five likely locations for a casino with video gaming devices by the state of Maryland well before the commissioners made their decision. After the ruling came down, Burbage described himself as shocked and dismayed by Beck’s decision and declared that his attorney, Hugh Cropper IV, would be authorized to appeal it to the state’s Court of Special Appeals within the statutory 30-day window. Cropper completed the filing before the deadline. He told the Progress in late April that the initial filing was little more than a formal notice of appeal. He expects to file substantive briefs arguing his side of the case two months after filing the appeal.

Pines plant rerating subject to hearing

The Worcester County Commissioners on Tuesday, May 21, will hold a public hearing to consider proposed amendments to the comprehensive water and sewerage plan to increase the rated capacity of Ocean Pines wastewater treatment plant from 2.5 million gallons per day to 2.6 mgd. The current nutrient allocation in the existing discharge permit is adequate to accommodate the proposed increase in flow with no physical improvements necessary to the treatment plant. No changes are planned at this time to the approved planning area of the Ocean Pines Sanitary Service Area. The rerating will accommodate the flow from the Ocean Downs property, which was included in the most recent expansion of the Ocean Pines sewer planning area. Last year the Worcester County Commissioners created the Ocean Downs Service Area and approved allowing it to connect to the OPSA for wastewater disposal. The Ocean Downs Service Area includes the racetrack, casino and Rickman’s residual property and to connect it to the Ocean Pines system for water and wastewater service. No improvements to the treatment

plant facilities will be needed. He said the plant “may spend a little more time per day handling bio-solids,” 6.5 hours per day instead of six hours. A report paid for by Ocean Downs found that the treatment plant is capable of handling that additional 100,000 gallons per day without any significant impact on the system. The commissioners’ public hearing on this application will be held beginning at 10:30 a.m. The Worcester County Planning Commission reviewed the proposed amendment at its meeting of April 4 and found it to be consistent with the county’s comprehensive land use and development plan. In addition to the county, the Maryland Department of the Environment needs to sign off on the rerating.

State approves county’s slots funding request

The Maryland Board of Public Works has selected Worcester County as one of three fund managers to oversee the distribution of loan funds generated by Maryland casinos. These funds will be available in the form of loans to small, minority, and woman-owned businesses on the Eastern Shore. In January, Worcester County agreed to partner with Anne Arundel County, home to the Maryland Live Casino, and applied to the state to manage the loan funds. With the application now approved, Worcester County will receive approximately $430,000 annually for business loans beginning July 1, 2013. “As a directly impacted jurisdiction with a casino in our community, we are pleased that these dollars will come back to Worcester County to create jobs here,” Worcester County Commissioner President Bud Church said. Money will be available for companies with fewer than 500 employees and annual revenues that average $35 million or less over three years. All selected fund managers will need to lend up to 50 percent of the $7.8 million within a 10mile radius of Maryland’s three existing casinos. This will ensure additional lending capacity above and beyond the Worcester County allocation. Locally, this means that 50 percent of Worcester funds must be used within a 10-mile radius of the Ocean Downs Casino. Worcester County Economic Development will begin accepting applications for loans ranging from $25,000 and up on May 1. “Because Worcester County’s application has been approved, yearly awards of approximately $430,000 will be available to the County for up to five consecutive years,” WCED Director Bill Badger said. “Such an award has the potential to bring Worcester County more than $2 million over the five–year time frame to support local businesses. We want to get the word out that there are many busi-

nesses in the County that will be eligible for these loan funds.” Revenues for this grant program are generated from 1.5 percent of all Maryland casino yearly proceeds as required by State law. For more information about the grant program, contact WCED at 410-632-3112.

Lewis Road kayak launch open for season

The Lewis Road Kayak Launch is now open to the public for the season from 7 a.m. to 7:30 p.m. daily. This site provides water access for non-motorized boats along Ayres Creek, a tributary of Newport and Chincoteague bays. The site is accessible from Lewis Road, nearly halfway between Ocean City and Berlin. Set in the sheltered waters of upper Ayres Creek, great paddling is available for paddlers of all skill levels. The Lewis Road Kayak Launch, owned by the Town of Ocean City and managed by the Maryland Coastal Bays Program, was originally used as a municipal dump and then later as a police shooting range. The area has since been cleaned of toxic materials and cleared by the Maryland Department of Environment. Through a collaborative effort among the Town of Ocean City, the Maryland Department of Natural Resources, the Maryland Coastal Bays Program, and dedicated volunteers, this site is now a 40-foot section of constructed living shoreline which provides easy access to the water. The Lewis Road Kayak Launch site is part of a larger water trail interpretation program to educate visitors about coastal bays.

Worcester County honors Most Beautiful People

The Worcester County Commissioners on April 23 recognized the contributions of area volunteers during the 2013 Worcester County’s Most Beautiful People Volunteer Awards Ceremony. This celebration honored 16 individuals and two organizations recognized by Worcester County for their ongoing service to the community. Individuals recognized by Worcester County included Jennifer Hamilton of Berlin; Rita Taylor of Bishopville; Andrea Adams, Patricia Ilczuk-Lavanceau and June Yeich of Ocean City; Linda Dearing, Kim Dornes, Bill Gibbs, Irmgard Heinecke, Bozy Markowtiz, Lou Etta McClaflin, Marlene Ott, James Trummel and Patricia Winkelmayer of Ocean Pines; and George Fear and Joann Shoemaker of Pocomoke. The two groups recognized included Contractors for a Cause and Everyday English Class. These individuals and organizations are among the 1.3 million Maryland volunteers whose combined volunteer hours represent a worth of $4 billion this past year.

LIFESTYLES

May-Early June 2013 Ocean Pines PROGRESS

HAPPENINGS

Wednesday, May 8 Worcester Chorale’s open dress rehearsal for its spring concert,”A Night at the Movies,” 7 p.m., Stevenson United Methodist Church, 123 Main Street, Berlin. Free-will offering will be collected, free refreshments.

monthly meeting, Ocean Pines Community Center, 7 p.m. Featuring Emmett McGroarty, author of “Controlling Education from the Top – Why Common Core Is Bad for America.” 443-614-7214, WorTeaParty@gmail.com, www.worcestercountyteaparty.com

Friday, May 10 Worcester Chorale’s spring concert, “A Night at the Movies,” at 7 p.m., First Presbyterian Church of Ocean City, 1301 Philadelphia Avenue, Ocean City. Tickets $10, free refreshments following the concert. Filing deadline, applications for candidates in the summer, 2013, election to the Ocean Pines Association board of directors, 5 p.m., Ocean Pines Administration Building, White Horse Park.

Thursday, June 13 Ocean Pines Garden Club’s annual garden tour, 9 a.m.-noon. Luncheon, Ocean Pines Yacht Club, 12:30 p.m. Eight local gardens. Menu includes choice of lunch is a trio salad plate (egg, chicken and potato salads), stuffed tomato with tuna salad over greens and veggies, or tossed mixed garden salad with choice of dressing; assorted loaf cake slices, coffee, tea, or non-alcoholic beverage. Cash bar. Luncheon and tour, $22; tour only $10. Sharon Puser, 410208-3032, for reservations or more information.

Monday, May 13 Friends of the Ocean Pines Library monthly meeting, 10 a.m., Ocean Pines. Featuring Doug Phillips, marketing manager for Freeman Stage in Selbyville on the history of Freeman Stage, this season’s programs, and future plans for Freeman. Refreshments 9:30 a.m. 410-208-4014. Thursday, May 16 Pine’eer Craft Club of Ocean Pines monthly meeting, Ocean Pines Community Center, 9:45 a.m. Business meeting. Members to create a hanging lantern. $3 kit, Olive at 410-208,6687 to reserve. Bring pliers. Residents of Ocean Pines as well as surrounding communities are invited. Refreshments. Tuesday -Thursday, May 21-13 Coast Guard Auxiliary boating course, Ocean Pines library, 6-9 p.m. Maryland boating certificate required for boat born after July 1, 1972, is awarded with successful completion of the course. Basic boat handling, navigation, federal and state regulations, piloting, knots, boat terms, aids to navigation, equipment, maintenance and more. $15 for all three evenings or $10 for those 16 years old or younger. 629-1016 or CGAUX1205 @Gmail.co to register. Wednesday, May 22 General Manager Bob Thompson’s spring town hall meeting, Ocean Pines Community Center, 6 p.m. Open to all property-owners and residents in Ocean Pines. Live streaming on Mediacom’s Channel 78 and the OPA Web site. Questions or comments should be sent to info@oceanpines.org. Billy Casper Day, Ocean Pines Golf and Country Club. Appearance by golfing legend Billy Casper. Putting clinic 8 a.m., 9 a.m. shotgun start. Question and answer 1:30 p.m. Call the golf shop 410641-6057 for sign-up. Saturday, May 25 2013 Ocean Pines Farmers Market, opening day, White Horse Park, 8 a.m. to noon. Every Saturday all summer long. Thursday, May 30 Worcester County

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party

Ongoing Pine’eer Craft Club, White Horse Park, Ocean Pines, open 10 a.m. to 4 p.m. Saturdays and Sundays. Handcrafted home decor, jewelry, and fashion accessories, created by members of the Pine’eer Craft Club. Ask a Master Gardener clinic, May to September, offered by the University of Maryland Cooperative Extension Service, Ocean Pines Library, 11107 Cathell Road, Ocean Pines. Free, every Tuesday 1-4 p.m. Master Gardeners will be available to help with gardening questions. Those with damaged plans should place samples in a plastic bag and label the bag with a name and phone number. Questions that can’t be answered at the time of submittal will be researched and someone will get back in touch at a later date. Pancake breakfast every Saturday, 8 a.m. till noon, Ocean City Airport, to support the Ocean City Aviation Association’s Huey Memorial Display restoration and continuous maintenance fund. The display is located near the Terminal and requires no security procedures to view. Contact Tom Oneto, 410-641-6888, or Airport Operations,410-213-2471. Suicide Grievers’ Support Group, 3rd Wednesday every month, 6 p.m., Worcester County Health Department, Healthway Drive, Berlin, adjacent to Atlantic General Hospital. Free. 410629-0164 or www.jessespaddle.org. Kiwanis Club meets every Wednesday at 7:45 a.m. in the Ocean Pines Community Center except Wednesday, Nov. 14, and the third Wednesday of the month when they meet at the Woodlands in Ocean Pines from January through May 2013 for an evening dinner meeting starting 6 p.m., $18 per person. Doors open 5:30 p.m. all 410-641-7330. Ocean Pines plant clinic, Ocean Pines library lobby, every Tuesday 1-4 p.m. May 1 until Sept. 25. Got plant problems or bugs? Bring your bagged samples by and let expert master gardeners find solutions to your questions.

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COMMENTARY

THE LIFE INPINES THE PINES Permitting issues slow down progressLIFE onIN major projects An excursion through the curious cul-da An excursion through theby-ways curious and by-ways

nyone who thinks that managing multiple million dollar construction projects is a walk through the park isn’t living in the real world. Think small scale home renovation projects where you work as your own contractor, hiring and coordinating various subcontractors, then multiply that small-scale aggravation many, many times over. That is the place that Ocean Pines Association General Manager Bob Thompson finds himself, writ large. Add to that the arena in which these projects are taking root – the Roman Coliseum-like playground of Ocean Pines – and it’s possible to even feel some empathy for Thompson as word comes down of permitting issues that have snagged three major projects that have been under way for some time.

Thompson is just the client; his is the unenviable task of overseeing what someone else is directly coordinating. Or trying to, as the case may be. Emphathy or its cousin, sympathy, rarely is abundant when those affected by construction delays experience some degree of inconvenience. In the current situation, boaters are finding that they have to gas up somewhere other than the Yacht Club marina because the old gasoline dispensing system is out of commission. Similarly, the group of 30 or so diehard aquatics members – the number may be more, or less, depending on who’s doing the counting – who use the Yacht Club pool have no assurance their favorite amenity will be available

for sunbathing or card-playing this summer (or, inof Worcester is unfolding thus far. As for the marina gas operation County’s most densely comm of Worcester County’s mostpopulated densely popula some cases, lap swimming or splashing around). and the new pool, continued delay in receiving perBy TOM STAUSS/ By TOM Publisher STAUSS/Publisher In both cases, it’s not the end of the world for mits may, at some point, require some help from lothose inconvenienced. Boaters have options to buy cal legislators of Democrat persuasion to intercede non-ethanol gasoline in West Ocean City and Yacht on behalf of the OPA and its contractors. Club pool diehards have four other pools to choose Somebody no doubt has thought of that already. from. Already the carping that Thompson should have Granted, prospects for an adults-only replace- known about permitting issues long before April and ment venue this summer don’t look promising for May and acted to forestall them has penetrated the some aquatics members, and there will be some blogosphere and casual conversation across backwho won’t renew their memberships as a result. yard fences. Folks who are inconvenienced are rarely happy When dealing with local agencies, that sort of campers, and no amount of soothing rhetoric will advance spade work is expected, but when dealsmooth those ruffled feathers. What’s especially ing with a remote agency such as MDE, it’s difficult grating to those adversely affected is that there are to imagine that anyone other than a building conThe Ocean Pines Progress, a journ no real answers available for when these important tractor with experience in dealing with that agency news and commentary, is publ amenities will be open for business or pleasure. Or could realistically work the permitting process. monthly throughout the year. if they will be anytime this summer. Sometime, probably next year, inallOcean thesePines, vexing circulated Berlin, Thompson told the board of directors at its April permitting issues will be behind us and some new City Ocean City, Snow Hill, Ocean 24 monthly meeting that the gasoline storage tank amenities will be fully operational. It might then be Capain’s Cove, Va. and Yacht Club pool projects are awaiting Maryland regarded as having been Letters worth and all the aggravation other editorial submis Department of the Environment permits before they in the summer of 2013. Please submit via email only. We do accept faxes or submissions that re can proceed. It would be nice if the carping from the sidelines retyping. should be origina He also supplied the unvarnished truth when he could be kept to a minimum, but Letters that’s not likely to exclusive to the Progress. Include p said he didn’t know when they would be issued. The happen. message to the board and those OPA members Ocean Pines is, after all, Ocean Pines, where tuned in is this: The summer of 2013 will be a time growing a thick skin is an absolute requirement for 127not Nottingham Lane, to test everyone’s patience. any general manager, even one dealing with So far, the permitting issues don’t seem to be af- several big-ticket projects at the same time. Ocean Pines, MD fecting the construction timetable for the new Yacht Under current circumstances, the skin will have Club itself. That’s the good news in the scenario that to be thicker still. – Tom Stauss PUBLISHER/EDITOR PUBLISHER/EDITOR Tom TomStauss Stauss tstauss1@mchsi.com tstauss1@mchsi.com 410-641-6029 410-641-6029 Advertising

LETTERS

Attention-getters

Today I read in the Progress [April, 2013 edition] some articles that really caught my attention. In the letters to the editor section, Mr. Sallow hit the nail right on the head. Many culvert ditches and driveway pipes in Ocean Pines over the years have filled half up with sediment and roots. I have called Ocean Pines Public Works and told them of driveway culvert pipes that were clogged and in need of a cleaning. Sometimes, Public Works employees drive by culverts stopped up with debris and do nothing. When they do stop to clean them, often they will leave branches and debris on the top of the ditch, so much of the debris will fall back into the ditches. Ocean Pines can spend millions of dollars for drainage fixes on the Ocean Pines golf course, but they can’t seem to fix the problems of property owners who are for paying for the golf course fixes. The other article of interest [actually a paid advertisement] was by D. Richard Hudson. I agree with him that the board’s authority to spend up to $1.6 million on a project or purchase of property without property owner approval is too high and needs to be reduced. I remember the board of directors secretly offer-

ing $1.4 million to buy the former golf course property on Beauchamp Road. The amount of the purchase offer was low enough so a referendum would not be needed. I believe the board’s spending authority should be $500,000 or less. A third article quoted General Manager Bob Thompson that he wanted to get batteries for golf carts at a cost of $60,000 before the busy golf season. I have to believe he’s talking about a busy golf season for some other golf courses. If the Ocean Pines golf course was busy, we wouldn’t be losing hundreds of thousands of dollars on it every year. Michael H. Graves Ocean Pines

Common Core standards

I wish to share my concerns about the Common Core Standards (CC). MD State Dept. of Education (MSDE) adopted the standards virtually unseen, untested and with no cost analysis. There was no parental or legislative input and this adoption will change our education system forever. One has to ask why the #1 rated school system in the country adopted the CC standards when MSDE’s own gap analysis indicated that 88 percent of CC math and 89 percent of CC English

match current Maryland standards. This 12 percent differential will cost Marylanders millions if not billions of dollars in the years to come. For example, Worcester County will receive $1.1 million from a federal program called “Race to the Top” and the cost to implement this program is estimated to be $5.1 million. Common Core may not even be improving state education standards and may possibly be dumbing them down. But we don’t know this because the standards have never been tested. As a matter of fact the mandated assessment tests are not even completed. But it’s not about the standards. The standards are irrelevant. Even if the standards were perfect this is still a bad idea. By adopting the CC Standards the citizens and the state have given up a tremendous amount of autonomy to unelected bureaucrats and special interest groups. The CC standards are owned by two private trade organizations that copyrighted them and issued a limitation of liability excusing them of any harm as a result of using the standards. In adopting the standards the state obligated itself to adopt CC word for word. You can’t change any of it. You can add 15 percent

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but that 15 percent won’t be tested. ART DIRECTOR Former MD State Superintendent ART Rota Knottthat Nancy Grasmick recentlyDIRECTOR stated Hugh face Dougherty “the state and university compliance with the newCONTRIBUTING national Common Core standards, which isWRITERS a national curCONTRIBUTING WRIT riculum for the school systems. Rota Knott Knott No longer are education initiatives Ginny Reister developed state Inkwellmedia@comcast.n by state, but through a model similar to European countries.” 443-880-1348 Not to mention the legal aspects of a national curriculum, I do not want our schools adopting a national curriculum and I certainly don’t want our educational system modeled after Europeans countries. Dr. Wilson and school board members have my sympathy. They weren’t asked for input on adopting CC but are left trying to implement it. Most people haven’t even heard of Common Core and since they’re paying for it, they need to be informed. I respectfully request that the School Board hold scheduled public informational meetings so the people can get an idea of what CC is about, what changes will take place and an opportunity to ask questions. Common Core should not be a political issue. The issue should be what’s best for our children. Fran Gebhart Berlin

OPINION

May-Early June 2013 Ocean Pines PROGRESS

Budget committee ponders board spending curbs

LIFE IN THE LIFE INPINES THE PINES

to control his perpetual eye-roll, evident ometimes the more interesting acto the few audience members who mantion in Ocean Pines occurs at the An excursion through the curious by-ways and cul-de-sacs aged to stay awake, and it’s a great mysadvisory committee level, even An excursion through the curious by-ways and cul-de-sacs and cul-de-sacs eby-ways curious by-ways and cul-de-sacs though these committees have no real tery how he managed to last two hours of Worcester County’s most densely populated community. of Worcester County’s most densely populated community. ely power populated community. most densely community. before making the motion to adjourn. to dopopulated anything other than make By TOM STAUSS/ By TOM Publisher STAUSS/Publisher recommendations and research topics of Even with two hours of give-and-take interest within their purview. (They also and-back-and-forth and what one nahave the power to sit around the table tional columnist likes to call argle-barBoth have the potential to create other means. and lament among themselves that they gle, the directors managed not to talk some controversy if the process conA subcommittee of budget committee have no power.) about what really bothers some of them: cludes in recommendations that, as now members has been appointed to look at The wiser among the advisory comrogue committee members very far off appears likely, will step on a few sensi- this issue, as well. mittees accept their advisory role and the reservation of what some directors tive toes. Stay tuned, as this one could produce act within theOPINION limited role assigned to want from their committees. The current policy of investing only some fireworks in coming months. them by the OPA bylaws and Ocean While the topic of rogue committee in U.S.-backed securities with miniscule Hudson has had some preliminary Pines tradition. Ideas in themselves members managed not to get mentioned yields was born out of reaction to an inci- discussions with a couple of board can be powerful, even if they cannot be during the special board meeting, it dent in which the association, on paper, members on this idea, and hasn’t exinstantly enacted (and in some cases apparently was mentioned later that had lost some principle value in an in- actly been encouraged to proceed. Then shouldn’t be). Serving on an advisory reevening, when an executive committee vestment, causing much consternation again, he hasn’t explicitly been told not quires patience and stamina and a fair meeting, a confab of the chairs of all the at the time among OPA policy-makers. to explore the idea, and absent explicit hn the curious by-ways and cul-de-sacs proportion humility and most defiadvisory committees, was held, to the through theof curious by-ways and cul-de-sacs The Ocean Pines Progress, a journal of Six months later, as often happens, the instructions not to investigate, conteman Pines Progress, a of journal of nitely a sense humor. delight of everyone in attendance. ’sr County’s most densely populated community. news and and propose, commentary, published most densely populated community. principle value reportedly had bounced plate it’s iswell within the d commentary, is published Acting within that limited purview OPA President Tom Terry reportmonthly throughout the year. It is back, but by then OPA had bailed out of committee’s limited powers to explore as blisher throughout the year. is is the budget andIt finance committee, edly told the assembled chairpersons circulated in Ocean Pines, Berlin, West much as it likes. d in whose Ocean Pines, Berlin,recently West voted to pro- the investment for a loss. members Snow that Hill, Ocean Cityfrom and this that “something” would have to be done This, at least, is the version of events Ocean AnyCity, proposal emerges ity, Snow Hill, Ocean City and duce a report and some recommendaabout rogue committee members, but Capain’s Cove, as reported by OPA Director Marty process, onceVa.forwarded to the board, Cove, Va. on two issues of importance to tions precisely what was never said. Director Letters and other editorial submissions: Clarke, who was around at the time. could easily fall into a dark hole of indifnd other editorial Ocean Pines submissions: property owners, the OPA’s Sharyn O’Hare, who recently wrote a Please submit via email We do not Fast forward to April’s meeting of the ference, but here, too,only. Hudson has an ace bmitvery via email only. We do conservative (if not not myopic) investreport about the committees with a few accept or submissions budget committee: Its chairman, Den- up his faxes sleeve. Ultimately,that anyrequire change in ment policy and possible curbs on the recommendations on how to improve xes or submissions that require retyping. Letters shouldauthority be originalwould and renis Hudson, announced that it’s time to the board’s funding board of directors’ functionality, mentioned rogue commitLetters should be originalpower and to spend monconsider taking on a minimal amount quire a change the OPA bylaws, exclusive to the in Progress. Include phonewhich ey. Progress. Include phone tee members as an issue that needed to to the of additional risk for a much better re- the board cannot do on its own. That be addressed. Her report didn’t offer a turn. He explicitly took investing in the authority resides with property owners solution. It didn’t need to. volatile stock market off the table as an who would have to approve any change 127 Nottingham Lane, The solution, of course, is obvious, option; investors and traders know it’s in board funding authority in a referen7 Nottingham Lane, and it shouldn’t require a special meetOcean Pines, MD been on a bull run of late but probably is dum. Ocean Pines, MD ing to decide it. due for a pullback. Everyone agreed that Should the board decide to act on a Should a majority of the board of diThe Ocean Pines Progress, a journal of PUBLISHER/EDITOR the stock market is no place for an HOA recommendation by not acting, certainly PUBLISHER/EDITOR rectors believe a committee member has BLISHER/EDITOR BLISHER/EDITOR news and commentary, is published to park its accumulated reserves. a strong possibility in the case of a proTom The Oceanthroughout Pines Progress, a journal of TomStauss Stauss acted outside the accepted parameters Tom Stauss monthly the year. It is Tom Stauss Hudson suggested that municipal posal to curb board spending authority, tstauss1@mchsi.com news and commentary, is published of how they prefer a committee to functstauss1@mchsi.com auss1@mchsi.com circulated in Ocean Pines, Berlin, West bonds are yielding in the five per cent then Hudson has broadly hinted that he tauss1@mchsi.com 410-641-6029 monthly throughout the year. It is circution, they need simply revoke his com410-641-6029 Ocean Snow Hill,Berlin, Ocean City City, and 410-641-6029 range, or slightly more, of late, and may feel compelled to act in an non-comlated inCity, Ocean Pines, Ocean Advertising 410-641-6029 mittee membership. This is not rocket Capain’s Cove,Cove, Va. Va. Advertising might be the sort of investment product mittee-sanctioned independent effort, Advertising and Captain’s science. It needn’t be belabored; no twoAdvertising Letters and other editorial submissions: more suitable for the OPA. namely by coordinating a campaign to Letters and other submissions should be hour walk in a swamp is required. ART DIRECTOR Please email not A subcommittee of budget committee petition the matter to referendum, in acsent viasubmit emailviaonly. Weonly. do We not do accept ART DIRECTOR ARTRota DIRECTOR Four votes is all it takes, and therein Knott accept or submissions that members has been appointed to inves- cord with OPA bylaws. ARTRota DIRECTOR faxes orfaxes other that require require Knott lies the rub. Hugh Dougherty Letters tigate the possibilities and will report That possibility could be one of the Letters should be original and and Hugh retyping. Dougherty Will there be four votes to oust the back soon with some recommendations. reasonsCONTRIBUTING he’s stepping down at the end of exclusive to to the the Progress. Progress. Include phone Include phone latest rogue committee member, Randy ONTRIBUTING Then the committee as a whole will de- May as the WRITERS committee’sWRITER chairman. number for verification. CONTRIBUTING Romblad of the aquatics committee, who WRITERSWRITER TRIBUTING cide whether to forward some suggesTo do otherwise might Rota Knott Knott give rise to the addressed the board on some hot topics Rota Knott Knott 127 Nottingham Lane, tions on to the board of directors. charge that he’s become Ginny Reisterthat most loath- recently that particularly rankled the 127 Nottingham Lane, Inkwellmedia@comcast.net Ginny Reister Ocean Pines, MD. 21811 Of the two issues, this one has the some of creatures: a rogue committee ellmedia@comcast.net general manager? It’s difficult to see Ocean Pines, MD better chance of resulting in a positive member, of443-880-1348 the sort who has generated 443-880-1348 how the alleged infraction rose to the PUBLISHER/EDITOR response from the board. some degree of angst among certain dilevel of warranting Romblad’s removal. Tom Stauss PUBLISHER/EDITOR Curbing board spending authority, rectors of late. PUBLISHER/EDITOR Two directors, at least, will be adatstauss1@mchsi.com the other Hudson idea, has been percoOf course, Hudson is not resigning Tom TomStauss Stauss mant in their opposition to removing 410-641-6029 lating in the substrata of Ocean Pines from the committee, so he could still be tstauss1@mchsi.com someone for talking out of turn. tstauss1@mchsi.com for a number of years, without gaining subject to that charge should he be in410-641-6029 To Marty Clarke, who has experiADVERTISING 410-641-6029 the sort of traction that would force any volved in a petition drive. Advertising ence in such matters, it will be a case of Tom Stauss sort of serious board action. Implicit in But perhaps the appearances gods Advertising shooting the messenger. that probably has been the awareness would be appeased if he does so while However committees in Ocean Pines ART DIRECTOR ART DIRECTOR that decision-makers’ default position remaining as a rank-and-file committee ARTRota DIRECTOR are structured, the structure in place Rota Knott Knott is to oppose any action that would leave member rather than as Mr. Chairman. ought to allow for a high degree of tolHugh Dougherty them less able to act, or, as the case may erance of differing views, however inelCONTRIBUTING CONTRIBUTING be, less able to spend other people’s mon- A board snorefest egantly expressed. If a committee memWRITERS ey. WRITERSWRITER CONTRIBUTING ber goes rogue, in the view of elected Rota Knott about committees Currently, the board can spend up Rota Knott Ginny Knott Reister The OPA board of directors in early leaders, then there can be acerbic verbal to about $1.6 million, or 20 percent of Ginny Susan Reister Canfora Inkwellmedia@comcast.net May spent two excruciatingly dull hours push-back, of the sort delivered by Terry the dollars collected annually from lot in a special meeting, so far into a swamp at a recent committee meeting. 443-880-1348 assessments, without needing property PROOFREADING At that point, it should end; everyone on how to make advisory committee owner approval in a binding referenJoanne Williams has had his say; whatever differences function better that it’s a surprise the dum. Hudson would reduce that to a that remain need not be endlessly litimillion dollars or less, by adjusting the directors ever reemerged with sanity gated. intact. Ray Unger couldn’t even manage percentage downward or through some

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