May 2016 ocean pines progress by Ocean Pines Progress

May 2016

www.issuu.com/oceanpinesprogress

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THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY COVER STORY

THEY’RE OFF!

Five candidates emerge, expand slate to seven before May 10 filing deadline Collins seeks re-election; Trendic trying again after last summer’s third place finish By TOM STAUSS Publisher

ive Ocean Pines property owners joined this summer’s race for three seats on the Board of Directors, either filing papers of candidacy with the OPA administration or announcing their candidacies in the media, or in some cases both, by the end of the week prior to the May 10 filing deadline. The five candidates, including incumbent director Jack Collins, joined two other candidates who announced early, former director Ray Unger and newcomer Larry Perrone. The ranks of the seven announced candidates could further increase by the 5 p.m. May 10 filing deadline. [The Progress will post an updated article on the candidates who are running for the board on its Web site, www. issuu.com/oceanpinesprogress, as soon as the information becomes available after the May 10 filing date.] According to a member of the OPA’s Search Committee, the panel so far has been unsuccessful in recruiting females, a prime objective of this year’s search. Judy Butler, a member of the committee and a rumored candidate herself, was

Jack Collins

Tom Janasek

on the fence about a potential candidacy on the Friday before the filing deadline. She also serves on the Elections Committee and couldn’t continue to serve in that group if she ran for the board. She said she was leaning against a run “this year” because of family obligations this summer. The announced slate includes one well-known candidate from last summer, Slobodan Trendic, who is seeking a rematch after placing a close third in last summer’s balloting with 1,179 votes. Also running are two candidates who are members of OPA advisory committees, which sometimes has been a steppingstone to the board. Information technology executive Doug Parks is chairman of the Bylaws and Resolutions Advisory Committee and businessman

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Frank Daly

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Slobodan Trendic

Frank Daly is a member of the Comprehensive Plan Advisory Committee, which has run into a buzzsaw of controversy of late. The fifth candidate to emerge on the final full week before the filing deadline is businessman Tom Janasek, who frequently attends board meetings and has been known to mix it up with General Manager Bob Thompson. Thompson’s recent three-year contract extension and his five and a half years as general manager – he was given the position by the board in the fall of 2010 – probably will be an election issue this summer. Of the five candidates who emerged last week, only Trendic says for sure that he definitely would have voted with To Page 35

Thompsons provides conversion costs for pickleball Ocean Pines Association Director Tom Herrick’s proposed solution for a fast turn-around on new pickleball courts at the Manklin Meadows racquet sport complex in South Ocean Pines received a boost at the Board of Directors’ regular monthly meeting April 28. General Manager Bob Thompson reported back to the board on cost estimates for Herrick’s proposal, offered during the board’s regular monthly meeting March 29, to repurpose two of the current 12 tennis courts at the racquet complex for pickleball. ~ Page 3

Directors extend Thompson contract another three years With Director Tom Herrick voting in opposition, the Board of Directors in closed session April 28 agreed to extend General Manager Bob Thompson’s employment contract with the Ocean Pines Association for another three years. There were no changes in the contract, despite an effort by Thompson to negotiate several changes to it. According to Director Tom Terry, in an telephone interview with the Progress, one of the changes proposed by the general manager was to modify incentive features in the contract in favor of more traditional annual raises. ~ Page 6

Harbormist residents irked with OPA over derelict houses Fed up with looking at derelict properties on their street and a lack of action by the Ocean Pines Association to address the plethora of violations, property owners on Harbormist Circle asked the Board of Directors for answers during the public comments segment of the board’s regular monthly meeting April 28 meeting. They got little, other than statements from a few directors who say they are trying to find a way to streamline the process of addressing violations of the restrictive covenants. ~ Page 10

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BOARD OF DIRECTORS

May 2016 Ocean Pines PROGRESS

Thompson informs board of costs of repurposing tennis courts for pickleball at Manklin complex By TOM STAUSS Publisher cean Pines Association Director Tom Herrick’s proposed solution for a fast turn-around on new pickleball courts at the Manklin Meadows racquet sport complex in South Ocean Pines received a boost at the Board of Directors’ regular monthly meeting April 28. General Manager Bob Thompson reported back to the board on cost estimates for Herrick’s proposal, offered during the board’s regular monthly meeting March 29, to repurpose two of the current 12 tennis courts at the racquet complex for pickleball. Thompson said the approximate cost of converting courts one and two would be about $55,000, while the cost of converting courts 11 and 12 would be about $25,000, inclusive of materials and

labor. Thompson said the cost of converting one and two is higher because they’re soft courts and would need to be hard-surfaced for use as pickleball courts. Thompson also told the board that he was continuing to work with county officials on stormwater management issues at the complex. He did not specifically mention another component of Herrick’s March 29 proposal, pertaining to building two new platform tennis courts immediately adjacent to the existing courts on land that shouldn’t require a lot or any stormwater management. Thompson’s preiously has said that “elevated” platform tennis courts can be erected in a way that reduces if not eliminates the need to mitigate for disturbance of low-lying wetlands. Thompson’s brief remarks during the April 27 meeting was a timely if unenthusiastic response to the Herrick motion to investigate the possibility of repurposing two of the tennis courts for

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BOARD OF DIRECTORS

May 2016

Manklin complex From Page 3 pickleball. The general manager made no statement of support or opposition to the proposed repurposing. He offered no timetable for converting the courts should the board act to move in that direction at a future meeting. During the March 29, Herrick initially offered his proposal as an amendment to a motion by Director Tom Terry’s motion authorizing the general manager to proceed with rebuilding the playground equipment at the Manklin site along with moving and expanding the parking lot there, at a cost not to exceed $150,000. Herrick said his proposal will have immediate impact on addressing the needs of the community while also min-

imizing the cost. “This plan will best serve the interests of the entire community,” he said. Not every director agreed. Bill Cordwell made it clear he had pretty much given up on the racquet sport component of the Manklin Meadows reconfiguration, instead saying he would support the playground component. “I could care less about the rest of it,” he said, adding, “I don’t believe it was in anybody’s mind that this is first step to anything,” in reference to claims by some directors that Terry’s motion was a first step toward eventually spending up to $750,000 at the Manklin Meadows amenity. Cordwell said both staff and the board have spent too much time drafting and revising the Manklin Meadows recreation complex project “because a

few people aren’t happy they’re not getting theirs,” he said. When OPA President Pat Renaud finally called for a vote, Herrick’s proposed amendment to Terry’s motion went down in a 3-4 vote. Reflecting the alignment that has emerged in recent months on many issues, Herrick, Stevens and Collins voted together in the minority with Terry, Renaud, Cheryl Jacobs and Cordwell as the board majority. “This directs the general manager to move forward with the project so he would have to investigate numbers and get proposals,” Herrick argued. “It’ not like I’m saying go ahead and do this.” Terry’s main motion was approved in a 4-3 vote split with the same majority and minority blocs.

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After Herrick’s amendment failed and his motion was approved, Terry asked his fellow director to present his proposal again in the form of a standalone motion. Herrick then restated his motion to direct the general manager to repurpose two tennis courts for pickleball and proceed with building two platform tennis courts in Manklin Meadows. Terry said Herrick’s motion sounds like a call to “scrap everything that’s already been done” relating to planning for the racquet sports complex. He suggested that Herrick modify the motion to direct the general manager to “investigate” doing those things instead. “Let’s investigate it and I’m there,” he said. Cordwell said he thought “that’s what we told the general manager” to do at a previous board meeting. He said he would vote against the main motion. “I’m done with that area” as it relates to racquet sport additions, he said. Stevens was opposed to the amendment adding the word “investigate” to the motion. He wanted action on the racquet sports courts, not more study. Herrick’s motion as amended passed in a 6-1 vote with just Cordwell maintaining his opposition. Thompson’s response was delivered at the April 27 meeting.

OPA Board rejects North Gate access for medical center

ot unexpectedly, the Board of Directors recently rejected a proposal by the developer of the North Gate medical compex, Palmer Gillis, for an internal access to the medical center complex. Residents of Dawn Isle, the area that abuts the medical center, had opposed the proposed internal access road because of concerns it would affect their property values. Gillis confirmed the rejection of his offer in a short interview with the Progress May 5. He said the Ocean Pines Association missed out on an opportunity to have the North Gate bridge replaced at developer expense. The bridge replacement was part of his proposal for an internal access road. Gillis said that State Highway Admnistration District Engineer Donnie Drewer had recently agreed to some relief at the entrance to the medical center on Racetrack Road (Route 589) near the North Gate. Both left and right hand turns exiting the complex will soon be allowed by the state, Gillis said. No traffic light will be installed at the intersection. Southbound traffic will still not be allowed to turn into the complex, crossing northbound traffic, Gillis said, calling the decision a “baby step” that nontheless will improve the situation somewhat.

BOARD OF DIRECTORS

May 2016 Ocean Pines PROGRESS

Herrick continues to press his pickleball proposal Advisory committee’s resistance to giving up two tennis courts does not sit well with OPA director

At the May 2 meeting, the directors were informed that the racquet sports committee preferred to keep all 12 of the existing courts for tennis. Herrick told the Progress in a follow-up email that Director Cheryl Jacobs informed the board that the racquet committee continues to back a previously approved master plan for the Manklin Manklin complex. That prompted Herrick to issue a scathing indictment of the process to date, responding to a Progress inquiry about when and if he planned to submit a motion to repurpose two of the tennis courts for pickleball. The conversion could create as many as eight courts for pickleball. Herrick said he wasn’t sure about when he would submit a motion for the repurposing. He had had hoped the racquet sports committee would assist in the process by recommending which of the 12 courts could be converted, but that apparently has not happened, at least so far. He is so incensed by the committee’s stance that he is calling it a “small special interest group,” rather than a duly constituted advisory com-

mittee. “The Manklin Creek Project is the poster child for what is wrong in the governance of our association,” Herrick said in his email. “We have a small special interest group that is campaigning for the totally unwarranted expense of hundreds of thousands of association dollars to serve their own personal desire.” Herrick said the chairperson of the committee, unhappy with the reluctance of Board of Directors to approve a more expensive iteration of Manklin tennis complex improvements, “admits that the group back-doors the board of directors by working directly with management staff, even though it’s not the way an advisory committee is supposed to function.” Herrick said that degree of coordination with the general manager “is in complete conflict with Resolution C-01 (General Policy of a Board Advisory Committee), which states that committees “shall take direction and report to the Board of Directors, serve at the pleasure of the board, and the president of the board shall provide all instructions

and directions to the GM concerning support of the committee’s activities.” Herrick said that the general manager originally sold the entire project, to a prior board of directors, at a cost to the association of $250,000. He said even that cost was much too high. It has since ballooned to about $750,000, and Thompson has been working to reduce it. Herrick’s proposed repurposing of two tennis courts was designed to reduce it lower to anything that Thompson could have suggested without such a conversion. At the board’s April regular meeting, the general manager did not speak in favor or in opposition to Herrick’s proposal. Herrick contended that because of a declining tennis membership, the tennis court pads “are completely underutilized and the tennis amenity, when it stands alone, costs our association tens of thousands of dollars in net operating costs each year.” According to Herrick, that’s a trend that has been experienced all across our country. With the popularity of pickle-

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By TOM STAUSS Publisher pparent resistance by the Racquet Sports Advisory Committee to a proposal by Director Tom Herrick to repurpose two of the 12 tennis courts at the Manklin Meadows tennis complex to pickleball has thoroughly vexed him and continues to divide the Board of Directors. In a special meeting of the board May 2, for the most part a closed meeting dealing with General Manager Bob Thompson’s contract extension, the directors reconvened briefly in open session and apparently discussed Herrick’s proposal to reconfigure the two tennis courts for pickleball. The topic did not appear on the prepared agenda for the closed meeting. The prior week, at the April regular meeting of the board, Thompson had provided the board with cost estimates for the repurposing -- $55,000 for re25 Blind Factory-Ad 3/21/2016 PM$25,000 Page 1 purposing courts 1 and12:06 2 and for courts 11 and 12. Courts 1 and 2 are courts and would need to be blacktopped for pickleball, while 11 and 12 are already hard enough for pickleball.

6 Ocean Pines PROGRESS

BOARD OF DIRECTORS

May 2016

Board extends Thompson contract for another three years Directors still have the option of terminating the contract ‘without cause’ or at the convenience of the board with the payment of his current $165,000 annual salary and health insurance package for nine months

and I will always explore ways we can improve going forward.” Herrick said there is currently too much contention within the OPA, much of that stemming “from the philosophies and personality of our current general manager. I personally would like to see more neutrality in that position. It is the only way this community will heal and move more to the center in our thinking.” Herrick alluded to a comment made by Terry during the meeting when the board voted 4-3 against Herrick’s motion to explore alternative management. Terry called Herrick’s proposal “another one in a thousand slices” against the general manager. Herrick in his email said “there should never be a ‘thousand slices’ against anyone if they truly have the bests interest of our entire association in mind when making the managerial decisions needed to best serve our membership.” According to Terry, the original April, 2014, contract did not give the board the option of simply allowing the contract to lapse, but that interpretation of the contract might not be only possible

one. Another interpretation, which Terry said was incorrect, is that no action simply would have allowed the contract to expire in April of next year, with no severance package included. Clearly, a provision of the April, 2014, contract gave the OPA and Thompson the option, or mandated it if Terry’s in-

terpretation is the correct one, of revisiting the contract two years in. The 2014 agreement spelled out three possible outcomes after 24 months had elapsed that could be pursued by either the board or Thompson, with notice to be given in writing. The general manager

Pickleball proposal

Tennis Community the additional two courts they have been requesting for many years, long before Pickle Ball was even a membership,” Herrick said. He added that all these courts can and should be provided to support both groups’s needs, “but should be done in a reasonable manner, and with keeping the best interests of our entire association in mind.” Herrick said he not yet seen details of the general manager’s information regarding the conversion of the tennis courts. He also said he wants a recommendation from the committee on which courts “they are in favor of converting ... as they will be most affected by the change.” Only then, he said, will he be ready to move ahead with a motion to proceed with the conversion.

From Page 5 ball, tennis court conversion to pickleball courts are becoming a frequent occurrence. Alluding to the latest projected cost of the committee-supported version of the Manklin complex, $750,000, Herrick said the “the committee and chairperson still support the original plan for the complex” and that it remains the committee’s “main objective.” That leaves Herrick in a funk. “I am all in favor in providing the pickleball membership dedicated courts for outdoor use during the warmer months, in addition to the indoor courts available for their use year-round. I am also in favor of providing the Platform

By TOM STAUSS Publisher ith Director Tom Herrick voting in opposition, the Board of Directors in closed session April 28 agreed to extend General Manager Bob Thompson’s employment contract with the Ocean Pines Association for another three years. There were no changes in the contract, despite an effort by Thompson to negotiate several changes to it. According to Director Tom Terry, in an telephone interview with the Progress, one of the changes proposed by the general manager was to modify incentive features in the contract in favor of more traditional annual raises. Thompson’s base salary of $165,000, with a small inflation adjustment, was retained in the contract extension. Herrick in an email to the Progress confirmed that he was the sole director to vote against it. He said “the current board majority voted’ recently had voted against his proposal “to investigate a possible alternate means of management for our association. I believe we can do better

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BOARD OF DIRECTORS Thompson contract

May 2016 Ocean Pines PROGRESS the OPA retains the option of terminating Thompson’s employment “without cause or at our convenience” at any time, according to an account in the May, 2014, Progress, about the contract as approved. Stevens said that given the fact that Thompson has four solid supporters on the board, intent on giving him an extension, it didn’t make a lot of sense to him to engage in an extended debate over possible changes to the contract or termination.

Stevens, who was participating in the meeting via telephone, said he might have been willing to revisit provisions in the contract had he been there in person, but that such an exercise would have taken hours, with the same result possible in the end given the current composition of the board. “I believe in the setting of a closed, called at the last-minute by the OPA president, the opportunity for a meaningful discussion of the contract was

From Page 6 invoked his right to renegotiate under the 2014 contract provisions. The options included extension of the contract for three years with no changes, extension of the contract with negotiated changes, or termination of the contract, with the OPA still required to grant the general manager a generous termination package had the third option been chosen.

The contract specifies that Thompson would have been guaranteed his existing medical insurance package and his $165,000 annual salary for nine months had the OPA elected to terminate the contract after 24 months. “If we hadn’t renewed it (under option one) we would have had to pay his severance (under option three),” Director Dave Stevens told the Progress in a telephone interview several days after the board vote to extend the contract. Even with the three year extension,

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Thompson contract From Page 7 precluded,” Stevens told the Progress. “I’m not going to say the meeting was called on purpose, when they knew I was going to be away, but people can draw their own conclusion.” In a press release announcing the contract extension, OPA president Pat Renaud said he was “happy” to disclose “on behalf of the board” that the directors had “secured” the continued employment of Thompson. In fact, given the board’s current make-up, there was no indication that Thompson’s continued employment was in any way endangered. “It is the opinion of the majority of directors that the current contract has worked well for both the community and the GM and therefore no change was necessary. The vote was six to one (in favor of the extension),” Renaud said. The contract retains a complex bonus system contained in the 2014 agreement. Thompson can earn an additional 25 percent of his base salary, or roughly $40,000, by meeting certain performance standards. Of that $40,000, $30,000 could come from meeting amenity budget targets. Another $10,000 could be earned by meeting a set of performance objectives, which change each year as part of the annual performance review of the general manager conducted by the board. This past year, Thompson was awarded a $5,000 bonus because he met some of the $10,000 performance objectives in the view of a board majority. Last fall, the newly reorganized board approved ten non-financial objectives for Thompson in the 2015-16 fiscal year that ended this past April 30. The board, in an annual performance review, decides which objectives have been accomplished by the general manager and which have not. [See article on Page 9 of the Progress for a recap of the ten objectives that could earn Thompson up to $10,000 later this year.] The amenity incentives have proven

challenging since 2014, and Thompson apparently has not earned any bonuses under these provisions. The contract specifies that five amenity operations together – golf, Yacht Club food and beverage, aquatics, marina operations, and Beach Club food and beverage – are the measures against which Thompson’s performance will be compared. Specifically excluded from the benchmark calculation are tennis and Beach Club parking. That’s because their financial results can’t really be influenced by the general manager, the board agreed in 2014. To earn the first $10,000 amenity bonus, Thompson needed to achieve “90 percent’ of the 2014 deficit target of the five amenities combined, according to Terry at the time. The target was roughly $109,000; a pay-out would have occurred with a deficit of roughly $98,000. “It’s like school, 90 percent is an A,” Terry said. This year’s budget target for all five amenities actually is a $64,976 surplus, according to an analysis by the Progress, and 90 percent of that is $58,478. To earn a second $10,000 bonus, the contract says that that Thompson would need to trim another ten percent off the original budget target. The 2014 contract called for Thompson earning the full $30,000 amenity bonus if all five departments had been close to break-even, Terry said at the time. How the contract’s bonus formula would apply to this year’s circumstances apparently has not been calculated, but Terry told the Progress recently that he thought it would be “difficult” for Thompson to achieve a financial bonus for last year’s results. The incentive package was specifically designed to avoid payouts for separate amenity departments, Terry said, because that might allow the general manager to focus on several of the amenities rather than the amenities in totality. Thompson wanted to modify some of these amenity objectives in his new contract extension, but the directors weren’t inclined to budge.

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BOARD OF DIRECTORS

May 2016 Ocean Pines PROGRESS

General managerâ&#x20AC;&#x2122;s non-financial objectives, 2015-16 fiscal year

ast fall, the Board of Directors voted to accept a list of ten non-financial objectives for General Manager Bob Thompson to earn an additional $10,000 under his employment contract, recently extended for three years until April of 2019. This $10,000 bonus incentive is distinct from an additional $30,000 that can be earned by meeting amenity financial performance goals in the aggregate. The non-financial objectives were in force for the 2015-16 fiscal year that ended this past April 30.The board will determine the extent to which Thompson has achieved these objectives in his performance review later this year and will base a bonus pay-out on that assessment. The objectives are: 1. Working in cooperation with Representatives of Worcester County create a 2-path written plan of action for the bridges on Ocean Parkway and Clubhouse Drive, including milestones, by October 31, 2015. One path will address immediate safety repairs; the second path will address the steps to be taken for replacements, if repairs are insufficient to raise the level of the bridges to State standards. Submit monthly status reports to the Board. 2. By January 4, 2016 present a written plan of action, including milestones, for each of the Major Capital Projects

(roads, police building, beach club, etc.) approved in this yearâ&#x20AC;&#x2122;s budget. 3. By November 30, 2015 deliver an overview of the maintenance and drainage work for this FY. 4. Provide Quarterly reports for the Board to include deviations equaling a variance of more than 20% from budget based on the YTD figures that address the cause of the deviation as well as the corrective actions undertaken/to be taken. (These deviations are to be monitored at the major income and expense categories within a department, not each individual line item in the budget). 5. By March 1, 2016 investigate and collect the functional, operational and information sharing needs for in, out and across OPA Departments and major administrative areas that will be the basis for a written IT plan to be delivered by April 30, 2016. 6. Complete negotiations with Sandpiper representatives by October 31, 2015 that will, upon acceptance by the Board, become the basis of a formal written agreement between Sandpiper and OPA for the deliverance of natural gas; identify all elements of suggested change between prior OPA and Sandpiper stated positions. 7. Create and release an RFP on or before February 15, 2016, for the purpose of obtaining bids for the approved

improvements of the Sports Core Pool and present responses and recommendation to the Board for approval no later than April 30, 2016 to enable work to begin no later than mid-June or mid-July to ensure completion on October 1, 2017. 8. Prepare timely informational media pieces for release to news outlets to inform OPA members on the status of projects and accomplishments. 9. By January 4, 2016 present a prioritized plan with target dates with

a general plan of action for the Major Capital Projects of the Association over $100,000.00. 10. Meet monthly with the golf management company within one week after receipt of financials from Landscapes Unlimited to evaluate the operational performance to the budget, review marketing strategies, membership growth, course maintenance/conditions and food and beverage operations and make information available to the Board.

10 Ocean Pines PROGRESS

BOARD OF DIRECTORS

May 2016

Harbormist residents irked by lack of OPA response to problem properties

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his neighborhood, specifically at 44 and 47 Harbormist, are in such poor repair that he would not to purchase a home at that street today. “I don’t know if that’s an indictment of people who live in the neighborhood or the association,” he said. Kubiak said he and a group of neighbors sent a letter addressing their concerns to the board but never got a response or even acknowledgment that the letter was received. He said he was disappointed to see there was no discussion of their concerns listed on the board’s meeting agenda for April 28 because he thought they did everything properly to bring the issue before the board. “I don’t know what it takes to get

By ROTA L. KNOTT Contributing Writer ed up with looking at derelict properties on their street and a lack of action by the Ocean Pines Association to address the plethora of violations, property owners on Harbormist Circle asked the Board of Directors for answers during the public comments segment of the board’s regular monthly meeting April 28 meeting. They got little, other than statements from a few directors who say they are trying to find a way to streamline the process of addressing violations of the restrictive covenants. “If I were to come into the Pines today and look at my house I would not buy my house,” resident Richard Kubiak told the board. He said the properties in

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BOARD OF DIRECTORS From Page 10 your attention on this matter,” Kubiak said. He added that he contacted the compliance, permits and inspections office about property violations several years ago but he alleged the only actions taken were repercussions against him. “Where I come from in my background if you’re remiss in doing something, you stand up and say hey I’m sorry,” he said, adding that the board was remiss in not responding to the members’ concerns. Another property owner said he too tried to reach out to the board and even sent photos of the violations on the two properties. He said he believes one property is in foreclosure and nothing has been done to clean up the area. “I get to look out my front window at that house,” said Greer Groves, another neighboring property owner. She said she has two small children who want to play outside, but she tells them to be careful because of the condition of the neighboring property. She said no one has lived in the home for three years; there is a boat in the front yard that is not secured and has weeds growing out of it. “I think it’s an outright shame that they have to come in here in that fashion,” property owner Joe Reynolds said of the Harbormist residents having to approach the board during the public comments section of the agenda to broach their concerns. “The fact that they are is an example that this board and this general manager are not doing their jobs.” Reynolds said the primary job of the board of directors is to protect the interest of the homeowners. “The primary job beyond anything else and you’ve been ignoring it now for many years.” Reynolds, who operates the Ocean Pines Forum website, said the number one topic on the forum message board that people complain about is the appearance of Ocean Pines. He said he, too, has been ignored by the OPA when reaching out about property violations. He sent an email to the board about a home that is in foreclosure and has a front porch that is falling down and collapsed steps. He said he never received a response. Director Jack Collins complimented the property owners for coming forward with their concerns about neighboring lots. “Unfortunately the seven people up here can’t be all over this community and we depend upon input from each and every one of you to give us an idea of what’s going on in these neighborhoods. And then we can bring it up and if it has to come to this level, then it has to come to this level,” he said. He said he hopes the board will be able to shorten the process for addressing property violations. But in the meantime, he said, no one should be afraid to “express their point of view about an issue in their neighborhood or an issue that is important to them.” Collins said everyone wants to have

a “nice, clean welcoming community,” and that takes cooperation to make it happen. Director Carol Jacobs said there is currently a procedure that the OPA must follow when property owners violate the restrictive covenants, but it can be a lengthy process. “I think there is probably agreement within the board that we need to work on shortening that process,” she said. Jacobs said she doesn’t know what about the properties on Harbormist that would be taking so long to address, but she acknowledged that when properties are in foreclosure, it can present additional challenges for the association when trying to get them cleaned up. “So we are definitely taking a look at trying to shorten that process to ad-

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By TOM STAUSS Publisher n the wake of an April 11 special meeting on a recently completed reserve study by DMA Management, the Board of Directors will soon be pressed to decide an issue with unavoidable political and financial implications for the Ocean Pines Association: What level of reserves is adequate to finance the maintenance and replacement of OPA assets, including major capital projects that might be looming? Much of the April 11 meeting involved a recap of the minutiae of the reserve study by DMA official Doug Green, but it was OPA General Manager who posed the question about the adequate level of reserve funding as a “next step” issue that will need to be resolved by the board. Thompson followed up at the board’s regular monthly meeting April

28 with a more specific formulation of the question: What “percentage” of what some might view as an ideal level of reserve funding will the board accept as an OPA goal, along with any assessment increases needed to accomplish it? The issue was actually framed by Director Dave Stevens in early February, shortly after Thompson had released copies of DMA’s reserve study to the directors at the board’s January regular monthly meeting. What caught Stevens’ eye and irritated him immensely at the time was a calculation called an “an annual component cost” that seemed to suggest that the OPA should have more than $14 million in replacement reserves to pay for needed capital improvements. Stevens said he wondered whether DMA had actually made that calculation, suggesting

Harbormist

remedying the problems on Harbormist is taking so long. He asked for a timeline of “actions taken to date and what is pending right now.” Stevens said it’s “easy to say wePRSRT need to shorten the process” but he asked if it USPOS is really the process that is the problem. “Or maybe we really can’t do anyPAID thing” to address the violations, a statement that did not sit well with the asMAILMO sembled property owners. Terry said he and Jacobs are working on a proposal to shorten the process of addressing violations, particularly for those who are repeat offenders. Some property owners have a pattern of complying out with infraction notices and then reoffend sometime later, Terry said. He anticipates submitting a proposal to the board for consideration next month.

From Page 11 dress these in a more timely manner,” she said. Reynolds responded that the board already has the option of “fast tracking” prosecution of violations but “you don’t 11029 Racetrack Rd. a case, the OPA use it.” By fast tracking can skip MD steps that require back and Berlin, 21811 forth with legal counsel. Director Tom Terry took issue with Reynolds statement, saying that the board has fast tracked violations many times in the last few months. “That’s an incorrect statement. I’m not going to let it stand as if correct,” he said. Director Dave Stevens, participating in the meeting via conference call, asked the general manager to find out why

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May 2016Ocean Pines PROGRESS

Reserve funds

the leak occurred “without consulting or gaining approval of the board’ and that it was “disruptive to an objective and reasoned review process.” With those remarks as a backdrop, very little was said on the subject publicly until the special meeting April 11 and Thompson’s follow-up remarks April 27, when he told the board he would be sending them a memo on the subject the following week, or soon after, with a recommendation. Some directors were anticipating that Thompson would be

calling for a level of reserves close to the “annual component cost.” If it does, it would undoubtedly unleash a firestorm of opposition from a minority of directors – Stevens and colleagues Tom Herrick and Jack Collins – who would oppose the assessment increases needed to fund reserves at a $14-$15 million level. As of March 31, all of the OPA’s funded allocated reserves totaled $5.7 million. The major maintenance and replacement reserve contained $4.2 million. The bulkheads and waterways

reserve had $1.07 million. The roads reserve had $251,186 and the operating recovery reserve stood at $272,497. As of May 1, the reserves will be replenished with new assessment dollars totaling roughly $3.8 million, including $2.4 million into the major maintenance and replacement reserve. Of that $2.4 million, about $1.55 million will flow into the historical, or funded depreciation, component of that reserve, with another $866,000 to be allocated to the

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From Page 12 that it seemed like that would have been “inserted” belatedly in the study by Pete Gomsak, a former OPA member who currently serving as an OPA assistant treasurer. “We’re $11 million short of that,” Stevens said in February, suggesting that some might infer that the OPA is underfunding its reserves by that amount. “That’s incorrect, adding that the “annual component cost” number is not relevant to a rational analysis of what actually is needed in annual assessments to fund the reserves. Stevens said the proper level of funding for reserves should be based on what actually has been spent annually from the replacement reserves on average over many years. He called it “sheer unadulterated garbage” to tie the “annual component cost” calculation to a debate on the proper level of reserve funding, which in turn is one of the main drivers of the annual OPA lot assessment. “Whether deliberate or not, this misinformation will lead the average OPA member to draw conclusions which are best misleading,” Stevens said then in a memo to his board colleagues, also criticizing the leak of this information to a “selected” local weekly that he said was likely to misconstrue its relevance. In his memo to his colleagues, Stevens said

14 Ocean Pines PROGRESS

BOARD OF DIRECTORS

May 2016

Kiwanis donation

Director Sonya Bounds of the Ocean Pines Recreation & Parks Department accepts a $500 donation from Kiwanis Club of Greater Ocean Pines - Ocean City President Mark Joseph at the April 27th Kiwanis Club meeting. The annual donation will be used in support of childrens’ programs offered by her department.

Reserve funds From Page 13 legacy component, previously known as the five-year funding plan. Now in its eighth year, the legacy reserve component may be eliminated entirely in the 2017-18 budget year, having

successfully raised sufficient amounts of money to have paid for the construction of a $5 million Yacht Club in the sixth year of the five-year plan’s existence. That reserve remains in a deficit by roughly $1.2 million because funds were debited from it for purposes and projects other than the Yacht Club.

Stevens recently said that as part of the budget review process for the 201617 budget, the directors agreed that this would be the final year for the legacy component of the major maintenance and replacement reserve. While there was no vote to that effect, and one board has no authority to bind a future board, even Director Tom Terry, the OPA treasurer, alluded to the possibility of the legacy reserve’s pending demise during talks about the reserve study at the April 11 meeting. Terry also referred to the possibility that borrowing as opposed to funding from capital reserve might be the way the OPA decides to fund major capital projects in the future. In addition to roughly $2.4 million in new funding for the major maintenance and replacement reserve, the reserve summary May 30 reserve summary that will be released as part of the May financials in mid-June will show roughly $900,000 in new assessment dollars for the bulkheads and waterway reserve. The roads reserve will show roughly $250,000 in additional money related to the OPA’s share of casino revenues, and another $136,000 or so will be allocated to the operating recovery reserve, all reflecting board actions during the January-February 2016-17 budget review process. As of May 1, total OPA reserve funding will be roughly $9.5 million, depending on how much is spent from the reserves during April, the final month

of the 2015-16 fiscal year. Since the reserve summaries normally are dated at the end of each month, the May 31 reserve summary could also reflect any reserve spending during May, the first month of 2016-17. The May financials will be posted on line several days prior to the board’s regular meeting in June. If indeed the legacy component of the major maintenance and replacement reserve is defunded in the 2017-18 budget, it could lead to an even more intense debate next January and February about an acceptable level of funding for the reserves. Collins is running for re-election having been in the Stevens camp with respect to advocating a lower reserve funding financed from lot assessments. Other candidates are likely to be in the same camp. Stevens recently suggested that Thompson may be incorrect in suggesting that the next step in the reserve study process should be to determine the “percentage” of the annual component cost (or alternatively the total replacement value of OPA assets other than land) that should be set aside in reserves. Stevens said better approach may be for the board to review and debate Thompson’s draft capital improvement plan that he released late last year, because it will in part determine how much money the OPA will need to fund capital improvement projects over the next ten years.

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BOARD OF DIRECTORS

May 2016 Ocean Pines PROGRESS 15

Debate descends into discussion of micro-managing the general manager By ROTA L. KNOTT Contributing Writer lans to market the Ocean Pines Association’s racquet sports amenities to potential new members by giving them a week of free usage hit a snag when a trio of directors balked and tried to kill the concept at the April 28 monthly meeting of the Board of Directors. Director Tom Herrick made a motion to “cease and desist” the marketing ploy before its May 1 kick off date, but it failed to garner majority support, with only fellow directors Jack Collins and Dave Stevens in favor. issenters were directors Bill Cordwell, Carol Jacobs, Tom Terry and OPA President Pat Renaud. Herrick broached the issue of how board policy resolution M-02 applies to the offering for free one-week trial memberships for tennis, platform tennis and pickleball to residents and nonresidents alike. He said he has reservations about the proposal and said it should have been brought to the board for consideration

before a press release was circulated announcing the offer to both members and the general public. “I’m personally against offering free memberships to non-association members. I don’t know the impact this will have on those that pay for the membership,” he said, adding, “’I’m not sure that this is consistent with our amenity policy.” He said the policy states that the amenities exist for the benefit of the association membership. He questioned how the members will benefit by providing free week-long membership to outsiders. “What was thought process behind this offer?” Collins asked. “This isn’t a hard thing,” responded General Manager Bob Thompson. He said the OPA has been talking for several years about building new racquet sports courts but overall memberships have been declining. He said if the OPA is going to spend association dollars to change or build new courts, it should also be focusing on helping racquet sports membership to grow.

“As our memberships grow it offsets the cost,” he said. Thompson argued that the OPA already allows non-property owners to purchase memberships and use the amenities. The platform tennis group has been offering free trial memberships for many years. “It’s not new,” he said, just being expanded to include tennis and pickleball. Herrick acknowledged that similar offers have been made to OPA members but took issue with providing freebies to non-members. He said doing so isn’t protecting the rights of the members. Thompson agreed that the OPA doesn’t want to disenfranchise its membership, but rather wants to grow the membership in racquet sports. Herrick agreed with expending amenity membership based but said the OPA should be targeting property owners not outsiders. Stevens said the marketing campaign is “blatant disregard” of the board’s amenity policy resolution. He said the intent of that policy is to make sure OPA members

Herrick’s bid to nix free racquet sports trials fails to garner majority support

receive a benefit from the amenities based on the money they expend on them. Cordwell disagreed, saying that the opposition to the proposal is simply an attempt to Tom Herrick micromanage the general manager. “This is nothing new,” he said, reiterating Thompson’s comments about platform tennis already offering a trial membership and that it Bill Cordwell will not impact member’s ability to use the racquet sports amenities. “To think we’re going to have this big procession of cars come over from Ocean City to jam these things is just pie in the sky.” Terry sided with Cordwell. “There is absolutely no violation of M-02 whatsoever,” he said, adding that the policy clearly states that all association amenities are available to the general public.

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Atlantic General Dermatology opened new offices at 38394 Dupont Hwy, Suite F in Selbyville April 26th with a ribbon cutting to celebrate the event. The grand opening was jointly sponsored by the Ocean Pines, Ocean City and Berlin Chambers of Commerce. With offices in the Strawberry Center along Rt 113 in Selbyville, Atlantic General Dermatology provides general dermatology care and cancer diagnostic and treatment services. Participants included Atlantic General Hospital President and CEO Michael Franklin, Sussex County Councilman for District No. 5 Rob Arlett, Worcester County Commissioner Diane Purnell, Chair of the AGH Board of Trustees Lou Taylor, past chair of the AGH Board of Trustees John “Jack” Burbage, Jr., Atlantic General Dermatology physicians Dr. Curtis Asbury and Dr. Sara Moghaddam, Atlantic General Women’s Health Dr. Brandi Musselman; CRNP Nicki Akstinas; Medical Office Assistant Betsy Sandos; and Front Office Supervisor Susan Brown.

From Page 15

“They have to be available to the general public because we cannot put a moat around this community,” he said. The real violation would be if the OPA were to give away a free week to association members but charge non-members; that would violate tax laws, Terry said. “So whether you like it or not the reality is we can’t differentiate in that particular case if we’re not going to charge ours anything,” he said. Terry said there are many programs and activities, particularly those provided by the recreation and parks department, in Ocean Pines that are only able to be offered because they are supported by people who do not live or own property in the community. “There are many activities in Pines that are able to be held because we have enough members who want to participate along with some people from outto not be able to be overwhelmed by the side,” he said. That allows membership of enough people coming from outside.” As for the marketing tactic, Terry people to justify holding the class or pro- said it is not abnormal at all to try to gram, he said. grow a membership by getting people inHe also pointed out that the policy terested in it through a free trial. https://www.facebook.com/sunsetﬂoors21842 resolution says that non-members can Collins said his concern was that the use the OPA amenities subject to avail- proposal was to be offered year-round ability. “The capacity of our asset needs rather than as a pilot program. Also,

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he said it was not discussed in an open forum and the board didn’t have an opportunity to weigh in. While the racquet sports advisory committee supported the plan, Collins said he doesn’t know why. “We’re in the dark we don’t know what their thought process is,” he said. Jacobs wanted to know why Collins, who serves as board liaison to the racquet sports advisory committee, wasn’t aware of the proposal and didn’t bring it up to the board. “Are you accusing me of something, madam?” Collins asked, growing animated. “May I answer?” Jacobs asked. “May I answer you?” “Sure,” he said. “I’m simply stating facts,” Jacobs responded. She suggested amending Herrick’s motion to add a time limit on the marketing effort as a pilot program so the OPA can gauge interest from non-residents. She said Collins’ suggestion to do so was “not a bad idea necessarily.” Cordwell was not interested in Jacobs’ compromise. He said the board shouldn’t even be

discussing the matter. “This is marketing. This is not something the board should be involved in,” he argued. Stevens said the issue is not about taking shots at the general manager. “This is a matter of policy. That’s what it’s about,” he said, adding that Thompson should have realized that he was going outside of the approved board policy with this particular program because this topic “has been a sensitive area for long time.” Herrick argued that the amenities policy states that management should prepare an annual marketing plan for the amenities for review by the board by April of each year. Therefore, the policy specifically says the board is to be involved in marketing, he said. The general manager said he does provide an amenity marketing plan as part of the annual budget process, well before the April deadline specified in that policy. However, he said he doesn’t present every marketing opportunity for every event or program to the board. “We do hundreds upon hundreds of programs in the association each year,” he said.

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BOARD OF DIRECTORS

May 2016

OPA directors grapple with delays in developing comp plan survey questions BEACON’s role set to change in helping the OPA revise its comprehensive plan By TOM STAUSS Publisher he Ocean Pines Association directors met in closed session May 2 to discuss sluggish progress in developing a new comprehensive plan for Ocean Pines, and are reportedly kicking around some changes in the personalities involved in helping to develop a survey of property owners designed to assist in the development of the plan. In a short interview with the Progress May 3, OPA President Pat Renaud denied that Salisbury State University’s Memo Diriker, director of the university’s Business, Economic and Community Outreach Network (BEACON), no longer would serve as a consultant in helping the OPA’s Comprehensive Planning Advisory Committee update the plan. Diriker and his BEACON colleagues have been involved with the committee in trying to develop questions for a

community-wide survey of Ocean Pines property owners and residents, but that process has gotten bogged down of late. The board is supposed to have final say on which questions are presented to the community, but there is no consensus so far among the directors on what those questions should be. “They survey is on hold,” Renaud told the Progress during the interview, “but not dead.” He said the precise role that Diriker and BEACON would have going forward would be changing somewhat, as a result of the May 2 meeting. An OPA press release is being drafted to clarify the role, Renaud said, declining to provide details pending distribution of the press release. It was not released in time for this edition. There also been rumors circulating that the board had discussed the possibility of appointing a new chairman

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OPA FINANCES

May 2016

AMENITY UPDATE

Aquatics closing in operating surplus for fiscal year Yacht Club loses $53,521 in March, missing budget target by $21,100; Golf loses $61,900, ahead of budget by $10,091 By TOM STAUSS Publisher ll three major Ocean Pines amenities lost money as expected in March, but Aquatics lost only $12,465, with a $33,989 positive variance to budget. Entering April, the final month of the fiscal year, Aquatics has recorded an operating surplus through 11 months. The cumulative $33,750 surplus through March makes it likely that Aquatics will generate a surplus for the year, the first time that will have occurred since the Sports Core pool was enclosed in 2006-07. In April of 2015, Aquatics lost $29,618. Matching that loss this year would result in a $4,000 loss for the year. Matching March’s loss would result in a surplus of more than $21,000. Throughout the year, Aquatics has exceeded budgeted by significant margins. If that continues in April, the final month of the 2015-16 fiscal year, the result will be an operating surplus. Through 11 months of operations last year, aquatics had a $142,083 defi-

cit. This year’s cumulative surplus of $33,750 means there’s been a $175,833 year-over-year swing in net operations for Aquatics. Roughly a third of that swing can be

explained by a $48,000 contribution to Aquatics from Beach Club parking pass revenues. Beach Club parking passes – those sold to property owners without an amenity membership – are part of a

bundled package with four pool passes good for use at the Beach Club swimming pool only. This summer, the staff at the Beach

Comprenhensive plan

that is mailed out to property owners and made available on-line, to be filled out by interested property owners, but he didn’t know when that would happen. He said the questions need to produce useful information for updating the comprehensive plan, but that the latest iteration of questions he’s seen don’t necessarily ask the questions he said need answering. For instance, he said the survey should include questions about the status of the Ocean Pines golf course, including whether the OPA should remain in the golf business. But certain pro-golf directors are likely to oppose such a question for fear of what the answer might be among a majority of property owners. Whether such a revealing question could make it into a final draft of questions is highly

speculative at this point. A recent meeting of the comprehensive plan committee fell into disarray when Dericker was unable to attend because of scheduling snafu. OPA Director Dave Stevens in an April 7 telephone interview with the Progress said that in his personal opinion the proposed survey is “dead in the water and can’t be revived.” He said the committee’s work on the planning has become bogged down, and probably can’t be revived. Stevens said he’s unwilling “at this point to spend one more dime” on a survey that he said lacks any purpose or clarity. Renaud wasn’t ready to throw in the towel on a survey, but acknowledged that arriving at a consensus on questions to include in it wouldn’t be easy.

From Page 18 for the committee, but Renaud said he would not comment on that possibility. One of the committee members, Frank Daly, met privately with the board when the directors went into closed session after a brief public segment in which the decision to go into private session was challenged by Ocean Pines Forum owner/operator Joe Reynolds. The board went into closed session anyway, on the advice of OPA attorney Joe Moore, who was there for undisclosed purposes. The proposed survey of property owners has fallen behind schedule, and there is some question whether the board will actually approve one. Renaud, the liaison to the planning committee, said he believes there will be a questionnaire

To Page 22

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Mary McMullen (1948-2012) was a Special Education Instructor at Severna Park High School and Ruth Eason School. She was a founder of the Ocean Pines Youth Program, an administrator at the Maryland School for the Deaf, and President of the Old Mill Booster’s Club. Proceeds from the tournament will be awarded to several organizations, including: the Pulmonary Hypertension Association (PHA), Ocean Pines Recreation Program, and the Diakonia Homeless Shelter. We plan on sponsoring a student at the Good Samaritans School in Haiti. A scholarship in Mary’s name has also been established at Severna Park High School. Merchandise and Gift certificates for our Silent Auction are needed for this event. If you are interested in making a charitable donation or donating an item for the Silent Auction please contact Erin McMullen or Susan Wojciechowski . The Mary Mac Foundation, Inc. is a “not for profit” organization. The Maryland State non-profit customer ID # is 002924225. The Federal Tax ID # is 46-2720845. Last year, through participation in the Baltimore Running Festival and the Mary Mac Golf Tournament, over $20,000 was raised for PHA and various charitable organizations. Voluntary donations can be made at www.marymac.org and go directly to the Mary Mac Foundation. Mary Mac Foundation, 174 Nottingham Lane Berlin 21811 MD Directors: Tim McMullen 443-827-2091, Don McMullen 443-388-2941 Susan Wojciechowski 410-925-0472, Erin McMullen 443-465-8687 Tim and Sarah McMullen 410-294-3625 Ed McMullen 410-562-2406

May 2016 Ocean Pines PROGRESS

OPA FINANCES

May 2016

From Page 20 Club pool will be recording the number of card swipes from these Beach Club pool passes, making it possible to quantify the revenue attributable to their use. In the 2015-16 fiscal year, the $48,000 allocation from Beach Club parking passes was based on an estimate of the cost of operating the Beach Club pool, a somewhat inexact method of allocating revenue from the parking-pool pass bundle. Over a year ago, the Aquatics Advisory Committee suggested that the OPA track the actual uses of Beach Club pool passes, a suggestion that was not implemented last summer. OPA General Manager Bob Thompson several months ago informed the committee that Beach Club pool cards to be distributed this summer would be modified to track data from card swipes, which in turn will make it possible for Aquatics Director Colby Phillips to know the number of actual visits to the pool from pool pass users. From that data, there should be a more accurate way of allocating revenue from the bundled parking-pool pass package for the 2017-18 fiscal year budget. Some staff and committee members believe it’s possible that actual card swipe data will justify Aquatics receiving an allocation greater than $48,000 next year. Initially, the committee was prepared to endorse an allocation greater than

$48,000 for the new 2016-17 fiscal year, but members backed off when Thompson informed them that the new methodology of recording card swipes would be implemented this summer.

The parking pass revenue at the Beach Club only tells a part of the narrative behind Aquatics’ financial turn-around in the 2015-16 fiscal year. Through March of last year, Aquatics

had generated $604,343 in revenue, with no Beach Club pool allocation. Through March of this year, total revenue had swelled to $762,301, with the

22 Ocean Pines PROGRESS Amenity update

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OPA FINANCES

May 2016 Ocean Pines PROGRESS

Amenity update From Page 22 $48,000 allocation. Even if the $48,000 had not been included, total aquatics revenue would have been substantially higher in 201516 than it would have been in the prior year. Membership revenue is not where the increase shows up. For the first 11 months of the 2015-16, member dues are actually slightly under budget, by $1,618. Actual cumulative membership revenue through March was $273,678, compared to the budgeted $275,296. That essentially means member dues were precisely budgeted for the year. Other categories have driven the overall increase in revenues. Through March, facility rentals have generated $3,775 more than the zero amount budgeted. Pool debit cards (available for purchase at the administration building at a discounted rate) brought in $108,432, which is $12,228 more than budgeted. Cash fees were particularly lucrative for the department, generating $190,491 through March with a positive variance to budget of $34,877. Swim lesson revenue of $150,452 also substantially outperformed budget, with a positive variance of $28,852. The miscellaneous revenue category, which includes revenue from independent swim teams that use the Ocean Pines pools for practices and swim meets, was another stellar performer, with $18,765 in revenue through

March against a budget of $7,200, for an $11,565 positive variance. Last year was the first in many years that the Ocean Pines Hammerheads swim team has paid a fee for use of Ocean Pines pools, the Sports Core during the cooler months for practice and at the Swim and Racquet Club pool for practice and swim meets during the summer months. The department also has operated more efficiently on the expense side, much of that attributable to lower utility costs relative to budget, particularly at the indoor Sports Core pool. Through March, total utility costs were $113,332, compared to the budgeted $133,180. Some of that cost savings was made possible by the OPA opting out of pipeline propane from Sandpiper Energy, replaced by much less expensive propane stored in underground tanks supplied by Sharp Energy, a Sandpiper sister company. Former OPA Director Marty Clarke was finally successful in coaxing the OPA administration to make the change, after many months if not years of apparent resistance. Aquatics can take some credit for controlling wage and benefit costs. Through March, that line item was $446,709 against the budgeted $460,821, which was $14,111 better than budget. Maintenance costs of $113,332 were $5,719 better than budget through March. Total expenses through March were

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OPA FINANCES

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Amenity update From Page 23 $728,551, compared to the budgeted $751,211, a difference of $22,660. Golf and Yacht Club operations did not fare well March, the Yacht Club racking up $53,521 in red ink and golf and related food and beverage losing $61,609. Golf beat its budgeted loss target of $71,700 by $10,091 in March but has lost $150,230 through the first 11 months of the 2015-16 fiscal year. It is behind its budgeted loss by $9,798.

Much depends on how well golf does in April, a critical month in any fiscal year. Golf netted $38,550 in April of last year, and a surplus around that amount this year would bring in the 2015-16 deficit to $111,680. While the month of April started up with pleasant weather, it is ending with a lot of rain, hardly atypical for the Eastern Shore. Maintenance costs related to the golf course’s aging fleet of golf carts could add to the difficulty of matching last year’s April net results. Through February, the new golf course management company, Land-

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scapes Unlimited, had been ahead of the previous year’s net by roughly $8,000. But that is no longer the case, as through March LU is underperforming compared to the prior year by $4,032. Last year at this time, the course was still managed by Billy Casper Golf, and a divided OPA Board of Directors was engaged in a rancorous process of deciding whether to replace BCG with a new management company. April’s operating results will determine the actual loss for the year, subject to audit, and could also feed into the debate of whether changing management companies has had much effect on the bottom line, at least in LU’s first year of operating the course. Also in March, the Yacht Club slipped into deficit for the year, a fact that OPA General Manager did not mention in his financial recap to the Board of Directors at the April regular meeting. Through March, the Yacht Club is $34,657 in the red, against a $75,262 budgeted surplus. The negative variance to budget for the year is $109,918. Thompson instead highlighted the year-over-year improvement in results, which indeed are significant. Through March of last year, the Yacht Club had lost $153,673. The year-over-year swing is $119,016. Had the OPA opted to close the Yacht Club shortly after Memorial Day weekend, it would have racked up a substan-

tial surplus for the OPA. That surplus has been whittled away during the colder months of the year, as the numbers of people needed to at least break even during these months simply don’t materialize to generate the needed revenues. In April of last year, the Yacht Club lost $35,479. If April of this year is close to that, the 2015-16 Yacht Club loss will be roughly $70,000. The amenity lost $189,152 last year, so a $70,000 loss would represent a substantial improvement. Status of the balance sheet: According to the March 31 balance sheet, the OPA has assets valued at $31.539 million, against liabilities of $3.68 million and owner equity of $27.9 million. The March balance sheet indicates that the OPA had $1.739 million in operating cash as of March 31, compared to $1.648 million a year prior. Short term investments were valued at $6.034 million as of March 31, compared to $2.01 million a year earlier. Status of reserves: The reserve summary released as part of the March financials indicates that the OPA’s total allocated reserve balance stood at $5.77 million, a drop of roughly $124,000 from February’s balance of $5.894 million. The major maintenance and replacement reserve had a balance of $4,171,589 million, composed of $5,337,331 in the historical (funded depreciation) reserve and a negative $1,205,742 in the legacy (major capital projects) reserve.

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OCEAN PINES Committee suggests fee for outsiders use of rec programs

Construction could use timber, steelMay or2016 concrete materials Ocean Pines PROGRESS 25

Clubhouse bridge work F to begin this summer, Parkway in the fall

By ROTA L. KNOTT Contributing Writer aced with two deteriorating bridges, the Ocean Pines Association is movThe Ocean Pines Association’s ing ahead with plans to make Budget and Finance Advisory immediate repairs while still Committee is suggesting that if weighing its options for renon-members of the Ocean Pines placing the aging structures. Association want to participate in The bridges on Ocean Parkpaid activities and classes sponway and Clubhouse Drive Temporary ﬁ xes will add to their lifespans, sored by the OPA Recreation and have both fallen below the Parks Department, they should but won’t eliminate the need theirand the OPA statefor standards be required to purchase a ‘memis preparing to solicit a reeventual says bership’ fee of replacement, a so far unspecifiedThompson quest for proposals (RFPs) for amount for the privilege of doing so. short-term fixes. UltimateBy ROTA L. KNOTT with an additional ~ Pagebid 18 was $352,417, ly, however, the bridges may Contributing Writer $25,000 tacked on as a contingency in need to be replaced. ork will get under way this case additional expenses are incurred Bob Thompson, in his Sept. summer on one of two bridges for utility relocation. DriveDrive bridge.bridge, scheduled for repairs this summer 24 general manager’s report The TheClubhouse Clubhouse board inPlanning Ocean Pines that are slated The repair work is limited to the suto the Board of Directors, profor major repairs, with the other bridge or those above ground, to oks expansion of perstructure, vided an overview of some of the actions OPA President Pat Renaud said the and is working closely with c slated for overhaul in the fall. placement figure closer to $1.3 million save time and money. The repairs are how to pay for it. necessary to address the problems with repairs need to be made very soon. “It Public Works Department to Manklin Meadows Based on the recommendation of expected to extend the life of the ClubBoth bridges have fallen below the per bridge. Because of that escalating bridges in Ocean Pines. The report in- behooves us to have a plan in place for both the improvements and the General Manager Bob Thompson, the house Drive bridge and improve its minimum level of 50 on the state’s bridge cost, the OPA opted to focus on repair cluded a listing of immediate and pri- repairs,” he said, making them. Using an engi With site plan approval from the Ocean Pines Association Board of Direc- bridge sustainment ratio, which is the safety rating system, allowing for their work at this time. ority – or longer term – improvements Both the Ocean Parkway and Club- firm recommended by the coun Worcester County Planning Comtors during its April 28 regular monthly measure by which a bridge qualifies to replacement if the OPA and county can Thomson said concerns about the refor both structures, a timeline for action house Drive bridges over the canal are OPA is working on parallel pat mission anow in hand, the Ocean meeting approved $377,417 contract participate in state and federal replace- find a way to cover the cost. Currently location of utilities that are located on items and cost estimates. a single span concrete bridge with an suing both repairs and replacem Pines Association anticipates ment re- programs. for extensive repairs to the Clubhouse Repairs to the Ocean the bridges have BSRs of 41.3 and 47.2 or adjacent to the bridge have been re“It’s our intent to keep forward with asphalt surface and timber abutments the bridges based on a 2014 eva leasing a request for proposals latDrive bridge, not far from the Ocean Parkway bridge will be made in the fall. respectively. Thompson said there are solved. The OPS worked with the indithe repair work because it needs to be and wing-walls. The bridges are part of and report on their condition, Th er this month redevelopment of Pines Country Club. The for OPA awarded The bridge repairs will only be tem- two primary funding mechanisms for vidual utility companies, including elecdone,” he said, adding that he plans to the Worcester County roads inventory. said. Immediate action items ar the Manklin Meadows Recreation the contract to the firm Murtech Inc., porary fixes, according to Thompson. bridge replacement – state grants and tric, gas, cable and telephone, to plan for bring the RFP for bridge repairs to the When the bridge safety rating of a struc- repairs the OPA can make now Complex with additional racquet one of just two bidders to respond to a Eventually both bridges, which are part federal grants. relocating their lines. Worcester Counboard for approval in October. While ture drops below 50 on the scale used priority items will be addressed sports courts. Plans call for reconrequest for proposals. Thompson said early estimates for ty will move its water and wastewater of the Worcester County roads inven$175,000 per bridges is included in the by the state, then the county can begin time in future. figuration of the playground, Engineers David, Bowen and Frie- comtory, need to be completely replaced. replacing the bridges was in the range lines. fiscal year 2016 budget, he said the cost investigating its replacement, with the The repair process for both br munity gardens and parking to del reviewed the proposals for the OPA While the OPA is planning for their re- of $800,000 each, but said that figure Director Carol Jacobs asked why the estimate for the work is now $250,000 help of state and federal funds. focused on the super structure, t make way the for more and recommended low platform bidders tennis contingency funding for utility relocadidn’t include the cost of mobilization placement, it will be the county that deper bridge, because work needs to be Because the bridges are located with- of the bridge that is above the pickleball courts.. base cides when of Murtechand Inc. The company’s that work will be done and and ancillary work that pushes the redone to both the super structure above in Ocean Pines, the OPA is taking the level, Thompson said. Based o ~ Page 25 water and the substructure below. lead on planning for the bridge repairs To q

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OCEAN PINES

May 2016

Food truck remains a gleam in Thompson’s eye Controversial acquisition remains a possibility for this summer, but OPA president says there have been some challenges in locating the right vehicle

By TOM STAUSS Publisher eneral Manager Bob Thompson’s proposed $55,000 food truck made it into the 2016-17 Ocean Pines Association capital budget, but just barely, and its approval on a 4-3 Board of Directors’ vote does not mean for certain that it will be up and running this summer as Thompson hopes. It seems almost certain that a food truck will not be operational by the Memorial Day weekend, the traditional opening of the OPA’s outdoor pool amenities. New details of the proposal were not presented to the Board of Directors at the board’s monthly meeting in April. The May board meeting is set for Thursday, May 26, and approval of a truck on that day would not allow sufficient time to have it ready that weekend. That wouldn’t necessarily be a prob-

lem, because use of the Mumford’s Landing pool does not really kick into high gear until mid-June, after schools have let out for the summer and weather generally is warm. In his proposal for the food truck, Thompson said that it would be parked at the Mumford’s pool during the lunch hour to accommodate patrons there. At the May 3 meeting of the Aquatics Advisory Committee, to which he is the board liaison, OPA President Pat Renaud said that Thompson has not given up on the food truck idea for this summer. But there have been challenges in finding just the right vehicle, Renaud

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said, and he was not certain that Thompson would have a detailed proposal for board consideration at the May meeting. The OPA president did not portray himself as a strong supporter of the proposed food truck. While the budget calls for the purchase of a vehicle, Renaud said he personally would be happier if the OPA could lease a vehicle rather than purchase it outright. The 4-3 vote keeping the food truck in the capital budget occurred during the board’s final 2015-16 budget review meeting Feb. 19, with Renaud and directors, Tom Terry, Bill Cordwell and Cheryl Jacobs in favor. Directors Jack Collins, Dave Stevens and Tom Herrick voted in opposition to including it. Had the motion failed, it would killed the idea for the time being. Terry’s proposal to include the $55,000 capital item in the budget came with a caveat: Thompson would have to come back to the board with “additional information” about costs associated with the food truck, including items such as licensing, associated equipment costs, and depreciation, before the board would authorize Thompson to follow through with a purchase. Terry said he agreed with the impression that the vote approving the food truck came with an asterisk, acknowledging that its inclusion in the budget did not come with a presumption that the $55,000 would be spent. He acknowledged that every budgeted capital expenditure above the general manager’s approval threshold

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

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Bridge repairs From Page 25 tion is the OPA’s responsibility and not that of the utility companies. “It’s our bridge. Any repair work we do it’s on us,” Thompson responded. But it’s up to the utility company to find a way to support their lines while the repairs are being made. “There’s a whole lot of utility lines that are all popping under over around those bridges,” he added.” Director Tom Herrick asked if while the repairs are being made the construction company will perform a more extensive evaluation of the bridge’s condition. Thompson said the contractor may identify some additional areas or other concerns that need to be addressed. “One of the things we’ve talked about with the representative from the company we’re recommending was when they actually start to do this work some of it is a little more invasive than the visual inspection. So they’ll be able to identify or share f there are any other major issues that pop up,” he added.

OCEAN PINES

May 2016 Ocean Pines PROGRESS

Ocean Pines Public Works schedules bulk pickup day May 21 event is an experiment, and Thompson hopes residents will cooperate by having their bulk items out on the street for pick-up by 6 a.m.

up, Thompson said. He said Public Works crews will drive down streets only once, and that any items put out for disposal after the trucks drive by will not be picked up, and calls to the Public Works Department for a return visit will not be honored. Small items should be placed in containers at the edge of the road and weigh no more than 100 pounds. Doors should be removed from large appliances. The bulk pickup does not include construction materials from active projects, hazardous or flammable materials, paints, tires, automobile batteries, oil or petroleum products, rocks, bricks or dirt. Republic Services receptacles should not be used to hold items. Regular household garbage and yard waste will not be part of the May 21 bulk collection. Instead, yard waste may be brought to the Ocean Pines Public Works yard, which will be open q

By TOM STAUSS Publisher eneral Manager Bob Thompson’s latest idea to make life easier for residents of Ocean Pines is an experimental day of curbside pick-up of used furniture, waste lumber, plastic chairs, electronics (computers, boom boxes and similar items), plumbing fixtures, and even larger appliances – doors off on the latter, thank you very much – scheduled for Saturday, May 21, beginning at 6 a.m. Thompson announced the bulk pickup day during the Board of Directors’ April 27 meeting, telling the directors that the idea was designed simply to help residents get rid of unwanted items that they might otherwise have to pay someone to discard. He said the idea might not work but he and the Public Works Department want to give it a try. A key element in making it work is that residents must have their items out on the street by 6 a.m. on May 21 or run the risk of not having the items picked

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Chairman calls for improved relationships between advisory committees and board

he chairman of one Ocean Pines Association advisory committee urged the Board of Directors to improve communication with its advisory committee’s and to use them more effectively.

John McNult, chairman of the Racquet Sports Advisory Committee, spoke up about his concerns during the public comments section of the board’s April 28 meeting. “As we all know the purpose of an ad-

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visory committee is to advise the board of directors. However in my two years now as chairman of the racquet sports advisory committee, my previous five years as a member of the tennis advisory committee I’m here to tell you it’s very hard to get the communication with the board of directors…” he said. McNult said emails from the advisory committees to the board are ignored. “It’s a rare occurrence when you get an answer from and email. Personally I’ve found that to be true on many occasions on my term.” He encouraged the board to rethink the purpose of the advisory committees and how they interact with the board. McNult said the OPA has 13 advisory committees and of them only representatives of three committees showed up for an executive council meeting. The executive council is supposed to be composed of the chairman of every advisory committee. He said it was a “very, very poor showing” and is symptomatic of the relationship between the committees and the board.

From Page 27 to Ocean Pines homeowners and residents during the month of May from 8 a.m.-3 p.m. Monday through Friday and 8 a.m.-4 p.m. on Saturdays. All items for pickup should be placed by the curb no later than 6 a.m. Public Works will not enter private property to pick up materials. Republic Services customers are reminded that they may place up to four bags of leaves or yard debris curbside for each scheduled pickup. This is in addition to regular trash pickup. Trash collection days for residents south of Route 90 are Tuesday and Friday. For residents north of Route 90, the collection days are Monday and Thursday. Republic will also pick up branches if they are tied in bundles no longer than 4 feet and weighing no more than 50 pounds. Ocean Pines residents interested in enrolling with Republic Services should call 410-749-1551. The Ocean Pines Public Works yard is located at 1 Firehouse Lane behind the Soutside fire station. Residents with questions about the bulk pickup day should contact Ocean Pines Public Works by calling 410-641-7425 or emailing Linda Martin at lmartin@oceanpines.org. (410) 641-7717 ext. 3006 or ttravatello@oceanpines.org.

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OPA president makes appointments

With the unanimous concurrence of the Board of Directors, Pat Renaud, Ocean Pines Association president, made three appointments to advisory committees during an April 28 meeting. Tim McMullen was appointed for a second term to the Recreation and Parks Advisory Committee. Bernie Flax was appointed for a second term on the Communications Committee. William W. Neville was appointed to his first term on the Comprehensive Plan Committee.

Public works yard open for debris collection

OCEAN PINES Director Tom Terry asked if residents can bring yard waste in plastic bags and them dump them out on site. Thompson said no, residents are not allowed in the public works yard. He also cautioned that they have to bring the yard waste during regular hours. He said cameras are in place to catch anyone who drops of debris after hours. If the OPA is able to view the vehicle license plate of any offender, they “will get a knock on your door. He said dumping debris during off hours will be considered littering because it interferes with the process established by public works. “It’s unfair to the team. It slows us down.”

Spring junior golf clinic set for OPA golf course

In an effort to assist property owners with their spring clean-up, the Ocean Pines Association is accepting yard waste at the public works compound. Property owners can take yard waste, including leaves and branches, to the public works yard Monday through Friday from 8 a.m. to 3 p.m. and Saturdays from 8 a.m. to 4 p.m. “We’re not required to do this folks. It’s a courtesy for our members,” said OPA General Manager Bob Thompson. he cautioned that the debris must be in paper bags, not plastic bags. “The disposal cost for plastic bags has gone up a lot higher for us.”

The Ocean Pines Golf and Country Club will host a junior golf clinic beginning Wednesday, May 11 from 5:15-6 p.m. The four-session clinic, which is designed for ages 5-14, will also be held on May 18, May 25 and June 1. The cost for all four sessions is $40 per player. Director of Golf John Malinowski and professional staff will provide instruction in driving, chipping, putting and more. Beginner and experienced junior players are encouraged to attend. The clinic is open to the public. Equipment will be provided, or participants may bring their own. Online registration may be completed

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Free one-week racquet memberships

The Ocean Pines Association has announced that it is offering a free one-week trial memberships for tennis, platform tennis and pickleball effective May 1 and continuing through April 30, 2017. The offer, available to both Ocean Pines residents and non-residents ages 16 and older, includes one free instructional clinic for any of the three racquet sports and a week-long membership in the chosen sport. The week-long membership is valid for any seven consecutive days and can start at any time during the promotional period. The free week may be used for any or all of the racquet sports during the same week or for different weeks. There is a limit of one free week per sport per person. Registration forms are available at the Ocean Pines Community Center and at the administration building, in White Horse Park, at the Manklin Meadows Racquet Sports Complex at 11443 Manklin Creek Road in South Ocean Pines, and online at OceanPines. org. For more information or to register, call the Ocean Pines Recreation and Parks Department at 410-641-7052.

Free info seminars during May in OP

Several free informational seminars will be offered by the Ocean Pines Recreation and Parks Department in May. All will be held at the Ocean Pines Community Center. A representative from Coastal Hospice discussed plans for a new hospice residence at the abandoned clubhouse building at the Point in Ocean Pines on Thursday, MONDAY NIGHT May 5 from 10-11 a.m. and Thursday, May 12 from 7-8 p.m. Plans for the building, a time frame and what Ocean Pines residents can expect from

having the residence in their neighborhood were part of the presentation. Carrie Dupuie, AAMS, a financial advisor at Raymond James, will discuss educating children on financial life skills on Wednesday, May 11, from 5-6:30 p.m. and Saturday, May 21, from 10 a.m. noon. This seminar will teach parents and grandparents how to develop financial literacy in the next generation. Professional senior advisor Robbin Gray will present two seminars for seniors. On Wednesday, May 18, from 2:30-4:30 p.m., he will discuss preserving assets by using Medicaid-compliant strategies. Then on Wednesday, May 25 from 2:30-4:30 p.m. he will share how a reverse mortgage can be used to convert home equity into cash. All of these seminars are free and open to the public, but registration is required and spaces are limited. For more information or to register, call the Ocean Pines Recreation and Parks Department at 410-641-7052.

‘Yappy Hour’ begins at Pines’ dog park

Pups and people are invited to stop by the Ocean Pines Dog Park for “Yappy Hour” on the first Friday of every month from 6-8 p.m. Dog treats and water will be provided, and registered dogs will receive a dog park bandana at their first visit. Pet owners are welcome to bring their own food and beverages. The cost to participate is a one-time fee of $10, a portion of which will be donated to the Worcester County Humane Society. The Yappy Hour began May 6, and additional sessions will be held on June 3, July 1, Aug. 5 and Sept. 2. A yearly Ocean Pines Dog Park registration, separate from Yappy Hour registration, is required of all participating dogs prior to the event. Dog park registration may be completed through the Ocean Pines Recreation and Parks Department. The Ocean Pines Dog Park is fenced and shaded with separate areas for large and small dogs. It is located at the Manklin Meadows complex in Ocean Pines.

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WORCESTER COUNTY

May 2016

COUNTY BRIEFS

Public hearing set on water, wastewater budgets

ater and wastewater rates will remain stable in Ocean Pines for fiscal year 2017, but residents of White Horse Park will see a slight increase. As part of the annual budget process, the Worcester County Commissioners will hold a public hearing on Tuesday, June 7 on the spending plans and fees for service in the 11 sanitary districts, including Ocean Pines. In the OPSA, the county plans to increase the White Horse Park domestic water and sewer flat rate from $105 to $110 per lot per quarter. The base fee for Ocean Pines customers will remain at $138 per quarter plus a usage fee of $1.60 per gallon for the first 10, gallons or domestic water and wastewater. Commercial fees will remain the same rate at $158 per equivalent dwelling unit. The county currently provides water and/or sewer service to approximately 14,250 customers in 11 different service areas. User charges cover the operation and maintenance of these facilities. In addition, user charges are also used to pay for the administrative and technical support functions provided by the Treasurer’s Office and the Department of Public Works respectively.

In addition to the usage charge, an equivalent dwelling unit charge is collected in six of the county service areas or sub-areas including Ocean Pines. The base EDU fee will remain at $54 and another $13 per EDU will be levied to cover the cost of the 2014 bond issue for system improvements. An EDU is a measurement which is approximately the same amount of water and sewer flow as an average single family residence. The purpose of EDU assessments in the service area or sub-area is to collect funds to pay any debt related to the acquisition or construction of sanitary facilities.

overwhelmingly by a vote of 40-4. “This bipartisan action, including leadership of both parties, will strengthen our agriculture and poultry industry, promote tourism, provide for increased public safety, and ensure greater education opportunities …,” Mathias said. “I remain dedicated and will continue to work with my Eastern Shore Delegation, Legislative Leadership, colleagues in the House of Delegates, and Governor Hogan to pass and sign into law this vital bill to ensure a continued confidence and bright future for both the people of the Eastern Shore and the great state of Maryland.”

Mathias touts passage of Bay Bridge bill

County seeks nominations for volunteer spirit award

Senator Jim Mathias scored a victory in the General Assembly this past legislative session by furthering one of his top priorities, a new span of the Chesapeake Bay Bridge. As a result of Maryland Senate action, Mathias announced that Senate Bill 56, requiring the Governor and Maryland General Assembly to begin funding the next step necessary for the ultimate construction of a third span crossing the Chesapeake Bay, passed

To honor volunteers whose contributions help improve the quality of life, Worcester County residents are invited to nominate individuals, organizations and businesses for the 2016 Volunteer Spirit of Worcester County Awards. The deadline to submit nomination forms is May 16,. A recognition ceremony for all nominees will take place in August. Nominations will be accepted with one winner to be chosen from each of the following categories: youth, individ-

ual, lifetime achievement, faith-based, group/team, non-profit volunteer program, corporate/business, community of service, and exemplary service-learning. Five new categories have been added this year as well. These include city, county and state employee categories as well as first responder and veteran categories and are for volunteer services that take place outside their fields of paid employment. Nominees should reside in and represent the volunteer spirit of Worcester County. The annual Volunteer Spirit of Worcester County awards program is run in cooperation with the annual Governor’s Service Awards recognition program. Nomination forms are available online on the Worcester County website. Hard copies will be available at the: Worcester County Government Center in Snow Hill and at all five Worcester County branch libraries.

County approves mosquito program

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COUNTY BRIEFS From Page 32 proved the 2016 mosquito control program that includes cost sharing for local jurisdictions, including Ocean Pines. The Maryland Department of Agriculture’s Mosquito Control Division’s budget for the county for this upcoming summer season is $83,940. The Ocean Pines Association’s share of the annual mosquito control program is $1,500 for larvacide and $16,500 for adulticide.

Findings of fact approved for Route 589 rezoning

With all of the appropriate paperwork in hand, the Worcester County Commissioners on March 15approved the findings of fact and a resolution officially authorizing the rezoning of 11.5 acres of agriculturally zoned land on Route 589 north of Gum Point Road for commercial use. The property is owned by the Estate of Mildred L. Parsons and currently in use as tilled cropland. It was given an A-1 Agricultural District zoning classification at the time zoning was first established in the mid1960s and that classification was retained in both the 1992 and 2009 comprehensive rezonings. Consultants for the estate argued that the existing classification was inappropriate and amounts to “spot zoning” because the property is abutted on three sides by commercially zoned land along Route 589 and residentially zoned property on the fourth side along Gum Point Road. As the basis for the rezoning request consultants contended that there has been a substantial change in the character of the neighborhood since the last comprehensive rezoning, adopted by the county in 2009. The property immediately to the north of the Parsons property was rezoned from agricultural to commercial in 2012. That rezoning left the petitioned area as an island of agricultural zoning that represents spot zoning. According to the county’s 2006 comprehensive plan and associated land use map, the petitioned area is within the commercial center and existing developed area land use categories.

Change orders reviewed for wastewater projects

The Worcester County Commissioners on May 3 reviewed several wastewater projects in the Ocean Pines Service Area. The commissioners reviewed a request for a change order to a contract for upgrades at wastewater pumping station B in Ocean Pines. The change order added $22,296 to the cost of the project for additional piing connections that will allow use of an existing 6-inch force main, as well as

Cancer treatment center to locate in Ocean Pines medical complex With no controversy and a unanimous vote of six members, the Worcester County Planning Commission May 5 approved a site plan revision of the Ocean Pines Medical Center located adjacent to the Ocean Pines North Gate. The changes were relatively minor, including design changes to a 20,000 square foot building that Peninsula General Regional Medical Center will occupy and turn into a cancer treatment center. Construction of the the new building, the second of what could eventually become four separate buildings in the medical center complex, will begin just as soon as building permits can be obtained, developer Palmer Gillis said. The architectural style of the building will closely resemble that of the Gillis-built building that opened on the site several months ago. The site plan approval did not include internal access to the site from within Ocean Pines, a concept opposed by the Ocean Pines Association’s Board of Directors. The complex soon will allow both left- and right-hand turns exiting onto Route 589, a change in the existing right-turn-only policy. There still will be no left-hand turns crossing traffic from the south bounds lanes of Route 589 into the complex, however. Shown above is a site plan for the complex before the depicted building on Lot 3 was redesigned to accommodate the cancer center; shown below is the redesigned building’s footprint. The cancer center’s architectural with resemble the structure already built.

From Page 1 Director Tom Herrick to oppose the extension. Daly made it clear he was not running on a campaign to replace the general manager. Both Janasek and Parks said they weren’t sure how they would have voted, saying they didn’t have enough information to form a definite opinion. Neither seems firmly entrenched in the pro-Thompson camp, however. Unger and Daly are the two candidates that, based on their comments, seem the most supportive of the general manager Collins was one of six directors who voted for Thompson extension, but he told the Progress he was sympathetic with the reasons that Herrick voted against it. Collins said there were three options available to the directors, and extending the 2014 contract for three years seemed the least objectionable. He also said there four firm votes for an extension and that having a divisive debate trying to renegotiate the contract did

COUNTY BRIEFS From Page 34 an eight-inch force main. The change order also includes installation of electrical conduit and switches, well modifications and valve and ventilation blower changes. The project is funded through a 2014 bond issue and contingency funds are available in the bond to cover the cost of the additional work. The change order cost brings the total project budget to $830,596. Funding for electrical upgrades at pumping station E at a cost of $70,000 was included in that same bond issue. The commissioners reviewed bid documents for that project prior to solicitation of proposals from contractors.

Commission endorses Pine Shore rezoning The Worcester County Planning Commission May 5 gave a favorable recommendation for a change in zoning for the former Pine Shore golf course property on Beauchamp Road from E-1 Estate to R-1 residential. The request for rezoning was made by the Nichols-Neff families, which owns about 400 acres nearby, at the Route 589 and Route 113 intersection. Representatives of the applicant said those 400 acres have been deeded for nature conservation. R-1 residential zoning enables the Pine Shore site to be developed with up to 90 building lots, compared to 54 under E-1 estate zoning. The planning commission based its recommendation on a determination that the 2009 comprehensive rezoning made a mistake in keeping the property E-1. The county commissioners make rezoning decisions in the county.

May 2016 Ocean Pines PROGRESS not seem worthwhile. He said the contract remains “at will,” which means the board can abrogate the contract at will but must honor a nine-month severance package specified in the contract. All five candidates who announced during the week prior to the filing deadline provided the Progress with documents explaining why they had decided to run for the board, or consented to an interview. All but Trendic’s were brief. His statement appears on Page 36. The three seats on the board to be contested this summer are held by Collins, Tom Terry and Bill Cordwell. Terry is term-limited and can’t run for re-election under the bylaws, while Cordwell has told colleagues he doesn’t plan to run for re-election.

Jack Collins

“On a national level, there seems to be a deep dissatisfaction with our representative government at all levels. I believe this dissatisfaction is reflected at the Board of Directors level in Ocean Pines. What our members desire is a Board that can compromise and work harmoniously together for the welfare of all members. Not special interest groups. So do I. The members want a cooperative and open relationship between the Board and the General Manager, working together to accomplish projects that benefit all of us. So do I. “What our members want are affordable and effective budgets that address the needs of our community. So do I. “What our members want is a community that is a well maintained and respectable community that anyone would be proud to live in. So do. “During my years on the Board, I have voted for and sponsored motions that I felt were the wishes of each and every one of us. While serving the members to the best of my ability, I offer the following examples: “I developed and was able to pass a motion broadening the input on the budget process by the Budget and Finance committee working with the GM and the Board. I referred to it as “a sense of the Board” designed to broaden the budget process. “In every budget cycle, I focused on necessary economies that would keep

our assessments stable or reduced while voting against unnecessary expenditures. “I focused the attention of the Board, the GM and the members on the drainage challenges in our community. Working with the GM, the county and community volunteers through a committee effort, we addressed and solved some of these problems. However, there is additional work to be done. “I worked to improve the management of a major amenity that had cost the membership over a million dollars in a 4 yr. period. Our new management group is working toward improving the golf experience while bringing revenue and expenses into line. “I have sponsored a motion and worked toward the renovation of the Beach Club Bathhouse. “This motion passed our Board with a 7-0 vote. “In the future, if I am re-elected, I pledge my efforts to bring the Board, the administration and the GM into an amicable and positive working relationship. I would suggest the establishment of a Beautification committee to improve the landscape and eye appeal of our community entrances , amenities, and community open spaces. “Work toward solutions to incent members to maintain their property in a neat and orderly fashion. Remain dedicated toward responsible budgets reducing assessments if possible. Keep the renovation of the Beach Club Bathhouse on track. I pledge to work toward the improvement of our physical needs such as our Police facility, our Country Club, our roads, bridges and continue our drainage project. “Yes, being a Board member has it challenges and it does require a considerable amount of time. However, I have always had a keen interest in community governance. In college I was a member of the student government with a major in Government and Politics. I believe I have the interest, knowledge and experience to be re-elected to the Board.”

Frank Daly

“Ocean Pines homeowners enjoy a

very safe, generally well maintained, affordable community that offers a wide range of social and recreational activities that provide all residents with an outstanding lifestyle. “We are in a critical juncture as a community. We are 40+ years old. We have an aging infrastructure. A small, but noticeable, percentage of properties are in disrepair. Some community facilities and critical infrastructure are also in this condition. We have a Golf Club house that is, for all practical purposes, unusable. The Beach Club house, arguably the crown jewel of our community and a truly unique amenity, is showing its age. And we also have the issue of bridges that need critical repairs. “My interest in running for the Board of Directors is to work with fellow Board members and the Association Management to address the critical issues facing our association so that we can maintain and improve the lifestyle, affordability and public safety that we enjoy moving forward into the future. “Public safety to me is a core issue. I want to work with my fellow board members and the Association Management to assure all homeowners, residents and visitors that when they dial 911 with a life threatening emergency the response time is as short as possible and that the first responders on the scene have the absolute best training and equipment that the Association can provide. “Maintaining and improving homeowner value is also a core issue. I intend to work with fellow board members and the association management to aggressively address properties in disrepair that diminish the value of adjacent properties. If we need to change the governing documents of the community via a referendum to achieve this goal I will pursue it. I also intend to work with my colleagues and management to assure that we have a coordinated effort with the county to eliminate the ‘boarding houses’ that are appearing in certain areas of the community. I respect the right of any homeowner to rent their property. But in renting that property that homeowner should be accountable for making sure that nothing happens to devalue adjoining properties in the

COVER STORY Board candidates

Panel of experts

The Coastal Delmarva Women’s Council of Realtors recently hosted a “Panel of Experts” with affiliate members. Presentations were followed by Questions and Answers from the membership. Shown left to right, featured expert speakers included Brett Wolf, president of the Ocean City Chamber of Commerce and president of Professional Mortgage Services; Beth Gismondi of Gismondi Insurance Associates; Lou Schneider, president of Home Seal Services Inc; Pam Greer Buckley, CCRA of Buckley Property Services LLC: and Shawn Hunt, loan

Board candidates From Page 35 neighborhood. “It is also important to me to work with the Board and Association Management to make sure that all OP facilities and assets are well maintained. “In my mind the issue of balancing affordability with the needs of the association to maintain its facilities and amenities is a critical to the future of the association. “The current board is reviewing the reserve study recently completed by DMA. The preliminary assessment is that the reserve accounts of the association are currently underfunded, perhaps by as much as 10 million dollars. But the actual amount of underfunding, if any, can only be determined by digging in to the detail of the study, assessing the condition of each asset, and using that to determine when it needs to be replaced. It is absolutely critical that this be right. Because if it isn’t we will be either collecting money that we don’t need, which I would agree with, or not collecting enough money to maintain our core assets which will lead to continued deterioration and decay. “We also need a detailed capital improvement plan. It needs to be developed by the association management, it needs to include schedules and costs, needs to give full consideration to renovating existing facilities whenever possible, and needs to be submitted to the homeowners for their approval. “I am not running on a platform to replace the GM. I am running on a platform to work with him and the other Board members to make OP an even better place to live and to keep it affordable.”

Tom Janasek

COVER STORY

May 2016

“I have been a non-resident property owner in Ocean Pines for over 31 years. I have been an independent contractor my whole life in real estate/construction/sales. I am lucky enough this year to be able to devote time to being on the

board and look forward to bringing a different perspective. “I was raised in Laurel, MD and have been active in Ocean Pines since 1984. I am the father of a very accomplished son who is teacher in Howard County. My better half, Barbara and I have been together for 15 years. We tele-commute for work, half our time in West River, MD and half in the Pines. “I have made my best effort to attend every board meeting and am not shy about offering my opinion when appropriate. Now because of changes in my work schedule I am able to spend more time here in the Pines and can participate in all the board meetings, with your permission, from the other side of the table. “This brings me to some of my reasons for running for the board this year. I think it’s time to stop talking and get things done especially with the infrastructure of the Pines. Also, Ocean Pines needs to be more fiscally responsible we spend money like its endless! It’s ourmoney; let’s put is to use wisely! “I am asking for your vote to allow me the opportunity to bring my business experience and fiscal responsibility to the board. “As you know from past board meetings, Bob (Thompson) and I don’t see eye to eye on a lot of things. The biggest being the ‘amenity based community’ issue where it is just fine to lose money as long as our amenties are open to everyone. Personally, I don’t know why we are not doing both, making money and being avaiable for the community. “As for (Thompson’s) contract extension, I don’t know what other contract options were available so I can’t say whether I would have voted yes or no.”

Doug Parks

“I decided to run after extensive research of the position, talking both with members of the board and members of the community. “I have been a homeowner in Ocean Pines since 2007. “I am winding down as an executive in business IT and will have time to fo-

Arbor Day ceremony

The Ocean Pines Garden Club held its "Arbor Day in the Pines" ceremony April 14, at Pintail Park in Ocean Pines. A Japanese maple was planted in memory of loved ones who had passed away during 2015. Shown left to right are Worcester County Commissioner Chip Bertino, Ocean Pines Garden Club President Meg Herrick, and Ocean Pines Association Vice-President Cheryl Jacobs. cus on Ocean Pines. I work for educational publishing company; I head the IT organization. “I believe I can be of assistance in the IT and business sides of running the OPA. “I offered in November of 2004 to assist the OPA in setting up its infrastructure. Nothing materialized from that offer, and I’ve not seen much progress since. What we have needs upgrading. “I’ve been following the governance of Ocean Pines in some detail, as chairman of the Bylaws and Resolutions committee. “I disagree with and support some actions of the board and GM. “The Manklin project was “absolutely wrong.” It started out as an ‘ask’ for pickleball courts and became a $750,000 project for pickleball, platform tennis, stormwater mitigation, parking expansion, and playground relocation. More recently the board reduced $207,000

down to $150,000 for playground equipment and a parking lot and a few other items. Pickleball, the original ‘ask,’ was excluded. Where is the benefit to property owners? “I support the move to fixing the bathrooms at the Beach Club. That building is a good example of putting money were it needs to be spent. It was a very good, focused approach, and a very thoughtful investment by the board. “The Beach Club is an amenity that is extremely popular among the membership, and we need to keep it well maintained. “On Thompson’s contract extension, I don’t have enough information on whether it was a good or bad idea. Can’t say nay or yea. “On Thompson performance generally, I can see on both sides of the fence. Some things he’s done I agree with, others not so much.”

Special exception hearing for proposed hospice facility

A hearing is scheduled for Thursday, May 12, before the Worcester County Board of Zoning Appeals requesting a special exception to allow the establishment of a palliative and hospice care facility in an R-3 multi-family zone in the unfinished and never-occupied Points Reach Condominium clubhouse in south Ocean Pines. The hearing is set for 7 p.m., the last item on the meeting agenda, which means it’s very possible the hearing could started than the scheduled time. The Farmers Bank of Willards, owner of the building, has a contract buyer for the 21,656 square foot facility. Coastal Hospice, the contract buyer, wants to convert the building into an eight-bed end-of-life facility to serve Ocean Pines and the rest of Worcester County. The county’s Board of Zoning Appeals will decide whether to grant the special exception as a permitted use in a planned unit development.

36 Ocean Pines PROGRESS

COVER STORY Soloban Trendic’s statement of candidacy:

“In last year’s election, I was humbled with an overwhelming endorsement from the community. 1179 homeowners entrusted me with their votes. “Since last summer we watched the general manager’s and Board’s performances go from bad to worse. Many residents in our community are upset with this situation. The destructive, disruptive and disrespectful conduct displayed by the general manager and some Board members is disturbing. Just consider what transpired during the general manager’s recent town hall meeting. Thompson got upset for being questioned by a homeowner about the Yacht Club problems and asked him to leave the meeting. This kind of management conduct is unprofessional. We need to rebuild the partnership and regain the trust among the homeowners, the Board and management. We have to do a better job in the way our community is governed. This is what motivated me to run last year and why many residents asked me to run again.

“During my 30-year career with the IT industry my responsibilities required me to travel all over the world. I’ve encountered a broad spectrum of social, economic and political concerns during my work in Africa, Asia, Eastern Europe and Latin America. This experience, along with my proven skills and knowledge, enables me to deal with many current and future challenges facing Ocean Pines.

Wednesday, May 11 Junior golf clinic beginning, Ocean Pines golf course, 5:15-6 p.m. Four-session clinic, designed for ages 5 to 14, continues May 18, May 25 and June 1. $40 per player. Instruction in driving, chipping, putting and more. . Equipment will be provided, or participants may bring their own. Online registration, OceanPinesGolf.org. 410-641-6057. Thursday, May 12 “Rosie the Riveter” performance, 1 p.m., Ocean Pines library, $10 per person. The Assateague Questers hosting actress Mary Ann Jung of the iconic World War II figure. Jung is an actor known internationally for her portrayals of famous women in history. Seating limited. Reservations, Linda Barrett, 410-430-8344. Saturday, May 14 Ocean Pines Anglers Club, monthly meeting, 9:30 a.m., Ocean Pines Library. Guest speaker: new Maryland Coastal Bays Executive Director Frank Piorko. Topic: plans for and future of our local coastal bays. All welcome. Colonial Village yard sale, 8 a.m. to noon, Mumford’s Landing, Ocean Pines. Open to the public. Worcester County Garden Club plant auction and sale, 10 a.m., Cal-

May 2016 Ocean Pines PROGRESS “It is no secret that many homeowners still wonder why the Board majority continues to tolerate the general manager’s underperformance. Just consider these examples: the Java Bay Café fiasco; the 5 Million dollar Yacht Club (YC) that became a major disappointment and continues to bleed money; and a total destruction of the YC swimming pool. One year ago I spoke publically about the neglected maintenance of bridges on Ocean Parkway and Clubhouse Drive. The 2011 Worcester County Inspection Report found the superstructure on Ocean Parkway Bridge in poor condition. The same Report recommended “replacement” of this bridge and advised OPA to perform specific immediate and priority repairs in the mean time. “It took almost five years for our general manager and the board to act, to begin to address these long overdue repairs. Fixing superstructure alone could easily exceed $400,000 dollars; the cost of fixing substructure problems is still an unknown. Has our general manager done cost analysis of bridge repairing vs. replacement? Has he asked for guarantees that these costly repairs will make the two bridges structurally safe and will pass the next inspection? Do we know if the county government will still insist on the bridge replacement? Millions of our money was spent on the golf course and the Yacht Club yet our manager plans to apply a band aid solution to 45-year old bridges. I rather see OPA accept the County’s recommendation and begin immediate plans for bridge replacement.

It is a best use of homeowners’ money, a smarter financial decision and a better long-term solution to addressing OPA’s 45-year old aging infrastructure. “These are all very disturbing examples of poor management and bad decisions that have caused OPA to lose hundreds of thousands of dollars. Of all the challenges facing our community the general manager’s performance has been at the center of controversy for far too long. When elected I will work with my board colleagues to begin to address this issue immediately. I will propose the Board starts looking for competitive alternatives and begin searching for more experienced management resources. “My other major concern is the wasteful and out of control spending. “There are many examples of bad fiscal decisions so where do I begin? Let’s start with the fact that our general manager is extremely overpaid. The previous Board under Tom Terry’s presidency awarded Mr. Thompson with an outrageous base salary of $165,000. This was an absurd decision made by that Board majority. To illustrate my point consider the following official data. According to the US Bureau of Labor Statistics the 2015 national median wages for “community association managers” was $55,380. The same source reports that only top 10% of community managers earned an average of $123,790. Yet four of the board members felt strongly that Mr. Thompson is worth more, much more. Here is another proof that OPA pays our general manager way too much. The city

HAPPENINGS vin B. Taylor Museum, Berlin. Annuals, perennials, herbs, gift baskets and much more for sale. Rain date Sunday, May 15, 1 p.m. Glenda Clarke, 410-632-2504. Sunday, May 15 Ocean Pines Boat Club spring fling, 6-10 p.m., Golden Sands Condominiums, 22nd floor, $35 per person Boat Club members / $38 nonmembers. Cocktails and appetizers 6-7 p.m., 6-7 p.m. buffet dinner, dancing 7-10 p.m. Music by Bob Hughes. Tickets, Tim Mullin, at 410-641-6139 no later than May 9. Non-perishable collections, Southside firestation, 1-3 pm, by the Democratic Women’s Club of Worcester County. Collection of non-perishable food, toiletries and paper products at the South Fire Station, located on Ocean Parkway (South Gate). Supplies to be shared with a local food ministry. 410-641-8553. Monday, May 16 Democratic Women’s Club of Worcester County, monthly meeting, 10 a.m., coffee and conversation 9:30 a.m., Ocean Pines Community Center. Guest speaker: Associate Professor Diana Wagner from Salisbury University, on the Holocaust and the

Jewish resistance. Her social justice work includes GLBTQ equity, school climate and bullying, hate crimes and intimidation, and genocide education. All welcome, 410-208-2969. Wednesday, May 18 Retired Nurses of Ocean Pines, monthly meeting, 3 p.m., Ocean Pines library. Guest speaker: Patrick Dougherty, a pharmacist at Peninsula Regional Medical Center. 302-436-4378. Saturday, May 21 Commissioner Bertino town meeting, 10 a.m., Ocean Pines Library. Featuring Worcester County Commissioner Chip Bertino and Commissioner President Jim Bunting. Guest speaker: Jonathan Cook, president of the Worcester County Board of Education. The Worcester County commissioners and the Board of Education have been working on several education issues including the budget and the construction of a new Showell Elementary School. Wednesday, May 25 Surprised guest bartending fundraiser, OC Ravens Roost 44. benefit the AGH Penguin Swim, 6-9 p.m., Ocean City Fish Company, formerly Captain’s

manager of our state capital, Annapolis, makes $130,000. The Worcester County Administrator’s reported salary for previous year was around $145,000. “Another example of bad fiscal behavior is the proposed construction of a multimillion dollar administration building and the controversial Manklin Meadows project that can cost as much as $750K. We as the homeowners have to be more involved, demand full disclosure and make sure our money is spent wisely. Just consider this. Our general manager now has a slush fund of $10 million dollars at his disposal as a result of the Board’s absurd policy regarding the Reserve Fund “Finally, as many of you know from my campaign last year, I am a strong proponent of the outsourcing model. This has been a common business practice in the private and public sector for years. Outsourcing enables us to offer best service in the most cost-effective way so we can avoid raising HOA dues. This is why we need new management and board members that are in touch with today’s business reality and have the experience to apply best practices. “In summary ask yourselves this question: Do you want our community to continue to be governed by the Board and the general manager the same way it has been for the past six years? You and your vote control the future of this community. This year, perhaps more than ever before, who you elect will determine the long-term success of Ocean Pines!.”

Galley, 12817 Harbor Rd., West Ocean City. Free admission, live music, happy hour specials, 50/50, raffle. Thursday, May 26 Board of Directors meeting, Ocean Pines Association, Ocean Pines Community Center, Assateague Room, 9 a.m. Agenda and board packet posted on OPA Web site several days before meeting. Thursday, June 2 Women’s Club of Ocean Pines annual wine tasting luncheon, 11:30 a.m., Harrison’s Harbor Watch, Ocean City, $36 per person. Includes lunch and the pairing of a wine per course. Reservations, Kay Hickman, 410-600-0552, or email soonerkay@gmail.com no later than May 26.

Ongoing

Ask a master gardener, clinic, every Tuesday, May through September, 1-4 p.m., Ocean Pines library. Offered by the University of Maryland Cooperative Extension Service. Master gardeners available to help with gardening questions. Please put your plant damage samples in a plastic bag and label the bag with your name and phone number. If your questions can’t be answered at the time of submission, it will be researched and someone will get back in touch.

38 Ocean Pines PROGRESS

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Coastal Hospice honored

Deyta Analytics, a division of HealthCareFirst, named Coastal Hospice a recipient of the 2016 Hospice Honors Elite Award in April at National Hospice and Palliative Care Organizationâ&#x20AC;&#x2122;s Management Leadership Conference in National Harbor, MD. Hospice Honors recognizes hospices nationwide that provide the highest level of quality as measured from the caregiverâ&#x20AC;&#x2122;s point of view. Pictured are Stephen Williamson, Vice-President of Deyta Analytics sales and marketing, Coastal Hospice President Alane Capen and Coastal Hospice admissions director Tracy Fields, with the award.

May 2016Ocean Pines PROGRESS

Aqua outlines efforts to improve Captain’s Cove water quality New utility operator also identifies wastewater collection efforts to occur this year By TOM STAUSS Publisher Aqua Virginia, the company that recently purchased assets from the Captain’s Cove Utility Company, has plans to improve water quality in Captain’s Cove and begin the replacement of the community’s antiquated vacuum sewer system, efforts that have already begun. Clifton Parker, an executive with the company based in Richmond, along with other company officials appeared in Captain’s Cove March 19 to update the Cove property owner association on the company’s progress in making improvements. Little new information was disclosed, but for those who wanted to hear directly from the company rather than rely on second-hand accounts, the presentation was detailed. Parker said Aqua’s improvement plan anticipates spending about $1.5 million on water system improvements and $2.8 million on the sewer system over the next five years. To treat discoloration in the water, which he said is attributable to organic carbon, Aqua intends to use ion exchange methodology, including a low amount of salt, after a test program produced good results. Once fully operational, ion exchange generators in the well houses should improve both the color and taste of Cove water, Parker said. On the wastewater treatment front, the Aqua executive said the plan within ten years is to replace and expand the

number of rapid infiltration basins used for disposal of treated wastewater, with the aim of building them out on a tenacre parcel on the “outskirts” of Captain’ s Cove. At the same time, the Cove treatment plant is to be upgraded for nitrogen and phosphorous treatment, two contaminants that the existing plant doesn’t adequately remove. Also on the agenda is replacement of the antiquated vacuum system with new force mains and grinder pumps in the areas of the Cove – it’s actually a relatively small area – that are low-lying and not able to be accommodated with on-site septic. Another phase of the project calls for adding 390 more lots that will be on the public system, on Castaway Drive, where many lots are developer-owned. “It virtually pays for itself on the force mains,” Parker said. He went on to say that “replacing of the collection system, transitioning those customers (to grinder pumps and the new force main), that’s going to be a big part of the effort this year.” At the treatment plant, he said that improvements for the next year or two will include interim items, “maybe some headworks,” with an emphasis on making sure the plant operates with no noise, odor, and little lighting at night. Parker also told the board and the Cove residents that older homes in the Cove can have issues with lead pipes. He suggested replacing spigots with newer, plastic ones and also running the water

awhile to allow any lead in the pipes to flush thoroughly. In the question segment of the presentation, another Aqua executive said that permitting for this year’s work is complete for water and about 95 percent for sewer. Ambulance service: Efforts continue by the Greenbackville Volunteer Fire Department to restore 24-hour, seven-day-a-week ambulance service for Captain’s Cove, which last had consistent, reliable and timely service back in 2013, before the department lost its county funding. Ambulance coverage of sorts was restored later in 2013 through a program called Sprint, which provided an on-call vehicle and several paramedics in northern Accomack as a replacement for direct funding. Barry Outen, the GVFD fire chief, told members of the Captain’s Cove property owners association at their March 19 meeting that Sprint service has been unreliable, with a lack of staffing 60 days in 2015 and more than half the days in the first part of 2016. That’s no surprise to Cove residents, who have noticed that when emergency calls to the GVFD go unanswered, they’ve been routinely transferred to Oak Hall, which is roughly 20 minutes away from Captain’s Cove. It’s that situation that Outen came to the Cove meeting in March to explain. He updated the board on efforts to staff the Greenbackville fire station with at least two paramedics 24 hours a day, seven days a week, to make it possible to respond to Cove emergency calls in roughly five minutes. Outen said that because volunteers with

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EMT skills have jobs elsewhere, much of time, especially during normal business hours, there is no one at the Greenbackville fire station available to respond to emergency medical calls. This situation does not apply to fire calls, as volunteers are available to respond to them. At a meeting of the Accomack County Board of Supervisors in March, Outen said the GVFD made a request directly to the elected leaders for funding for two full-time professional paramedics. At a subsequent public hearing on the county budget, that request was repeated. Outen said the department suggested that the county, which staffs ambulances and collects the revenue for emergency calls from insurance companies and in turn distributes the money to departments that generated that revenue, needs to withhold a portion of the money it distributes to individual departments. That revenue in turn could be used to fund full-time EMTs at smaller departments such as Greenbackville with fewer emergency calls, Outen said. He urged Cove residents to lobby elected leaders in the county for that redistribution. He did not say what would happen if the effort failed, but the implication was that the Cove will have to rely on Oak Hall for emergency medical services during thoese periods when Greenbackville can’t respond. Outen told the board and Cove residents in attendance that those who buy the annual ambulance subscription service from GVFD that they are covered for ambulance calls even if it’s the Oak Hall service that responds. Ward case: A judge in Accomack County has found in favor of resident John Ward in the case in which he was suspended for roughly 30 days from the golf course last year for an incident involving a golf course employee, in which harassment was alleged. The Cove board of directors upheld the decision by Billy Casper Golf General Manager Tim Johnson to suspend Ward for the incident, which occurred in the vicinity of the golf course cart barn. Ward denied that any harassment had occurred, but his privileges were suspended by the Billy Casper Golf general manager on authority delegated to him by the Cove directors. Ward’s attempts to regain his privileges and to challenge BCG’s authority to suspend his golf privileges were rebuffed by the Board of Directors, as was his attempt to be reimbursed by the Cove for his lost privileges on a pro-rated basis. He sued the Cove POA and represented himself in court May 4. An

CAPTAIN’S COVE

40 Ocean Pines PROGRESS Captain’s Cove

CAPTAIN’S COVE

May 2016

From Page 35 attorney from the Pender and Coward law firm in Virginia Beach, the Cove POA law firm whose activities are normally confined to collections and foreclosure matters, represented the POA in the hearing. “The Judge ruled in my favor after a one-hour hearing. I was awarded $155 for golf fees and court costs.” Ward said in an email to the Progress, adding that Cove resident Richard

Butler was the only witness called and played a big part in helping the judge decide the case. “The judge liked what he had to say. He told the truth,” Ward said. The Cove has 30 days from the day of the hearing to appeal the outcome. Rapid Infiltration Basin – Flush with his victory in the suspension case, Ward is raising another issue in the hopes of persuading Cove directors to reconsider their sale of use rights to a parcel in an unbuildable area of the Cove for possible future use as a rapid infiltration basin.

Ward, a former member of the Cove board of directors who has clashed with Cove President Tim Hearn and the board for years, does not have a good track record of persuading the board of much of anything The rights were sold for $300,000 last year by the Cove POA to Aqua Virginia, as one of the conditions in the sale of assets owned by the Captain’s Cove Utility Company to Aqua. According to postings by Ward on the Cove message board, the $300,000 cost is being passed through to Aqua

customers in Captain’s Cove, in the amount of $30,000 per year for the next ten years. That ten-year cost was confirmed by Aqua executive Cliff Parker in a presentation to the Cove board during its March 19 meeting, although he made no reference to the cost passing through to customer invoices. Ward says Cove utility customers would be better off if the use rights had simply been given away to Aqua. He suggests that if the Cove board would waive its rights to the $300,000, Cove utility customers could see a reduction in their utility bills.

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OPINION

Ocean Pines PROGRESS May 2016

COMMENTARY

No increase needed in OPA reserve funding

n esoteric topic that every Ocean Pines property owner ought to consider of critical importance is about to hit the fan. While ordinarily a subject that makes eyes glaze over, the extent to which the Ocean Pines Association extracts dollars from property owners to fund its allocated reserve funds has a direct impact on everyone with a stake in Ocean Pines. OPA General Manager Bob Thompson shortly is expected to send a memo to the Board of Directors weighing in on the subject. To date, his recommendation seems to be known only to him and perhaps a few close advisors, but that will soon change. Policy-makers will no doubt be keenly interested in whether Thompson will recommend a level of reserve funding close to what, in super-green-eye-shade-accountingspeak, is called an “annual component cost” of OPA capital assets. That number, according to the recently completed reserve study, is somewhere in the neighborhood of $14 million or $15 million. There is a school of thought that OPA reserves ought to be funded to that extent, or perhaps a “percentage” of that or, possibly, of the estimated replacement cost of all OPA assets, excluding land. Consider for a moment that, as of the end of March, total OPA reserves stood at $5.8 million, with $4.17 million of that allocated to what’s called the major maintenance and replacement reserve. That’s a very sizable piggy bank. And as of May 1, it will swell by a substantial amount fueled by the annual contribution from lot assessments, roughly $4 million, give or take. Another way of saying the same thing: At the be-

ginning of the new fiscal year, total OPA reserves will show a balance of something just short of $10 million. Full funding of the “annual component cost” won’t be satisfied with a mere $10 million, of course. And to fully fund the annual component cost, the OPA assessment would have to be increased beyond anything the community would tolerate. Alternatives include some form of borrowing, something which the OPA has traditionally been reluctant to employ. Going into debt to any large degree has never been the first tool in the financial toolbox employed by OPA policy-makers. So it will be interesting to read the general manager’s memo on the subject, which in a recent conversation with the Progress Thompson initially said he wouldn’t be willing to share with property owners. But then he seemed to relent, indicating that he might be willing to discuss its major recommendation(s) and supporting rationale. Let’s hope his better angels sing a hymn of full disclosure to him. Anything less than that will feed the fears of those who already suspect the general manager wants to collect a lot more from property owners through the annual lot assessment to finance some grandiose future capital projects, such as a spiffy new country clubcart barn, a new indoor aquatics center, or a new public safety-administration out on Route 589. The community needs to have a well-informed discussion on the entire subject of reserve funding. That can only happen if Thompson’s recommendations are disclosed and then vetted by anyone in Ocean Pines – that should include every property owner – with an interest in it.

For anyone fearing the worst from whatever it is that Thompson intends to recommend, there is a lower cost alternative, something called “cash flow funding” of reserves, which essentially means the OPA would continue to collect from property owners roughly what it spends every year for various capital expenditures, from the mundane to the big-ticket. This method has worked very well over decades, particularly in the case of the bulkheads and waterways reserve, in which revenues collected from the so-called “waterfront differential” paid each year by waterfront owners effectively pays for bulkhead replacement in any given year. The same is true for the roads reserve, in which local casino impact funds pay for road resurfacing every-other-year on a more or less consistent program. Cash-flow funding of reserves should be the default methodology employed by the OPA in the future. Notwithstanding anything that the general manager might propose, property owners should not be in any hurry to support a boost in the reserves close to 100 percent of the annual component cost of OPA fixed assets. It simply is unnecessary, and would make Ocean Pines a less desirable place to live as assessments rise to a level that will erode the competitive edge that Ocean Pines has relative to other local communities’ level of property taxation. In fact, by careful renovation of existing assets as opposed to building new ones, it may very well be possible to reduce the roughly $4 million in reserve funding embedded in the budget. Cash-flow funding or reserves may very well support a significant reduction. – Tom Stauss

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The Ocean Pines Progress, a journal of news and commentary, is published monthly throughout the year. It is circulated in Ocean Pines, Berlin, Ocean City, and Captain’s Cove, Va. Letters and other editorial submissions: Please submit via email only. Letters should be original and exclusive to the Progress. Include phone number for verification. 127 Nottingham Lane Ocean Pines, MD 21811

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OPINION

May 2016 Ocean Pines PROGRESS

A target on Thompson’s back? So it would seem

hile stopping short of declaring that he will try to remove Bob Thompson as the Ocean Pines Association’s general manager if elected to the Board of Directors this summer, Slobodan Trendic’s statement announcing his candidacy makes it clear he’s no Thompson fan. But the writing is on the wall or appears between the lines, pick your cliche: If there are three other like-minded directors serving on the board with him, Trendic appears likely to join in an effort by a new board majority to take the OPA in a new, Thompson-less direction, should one emerge from this summer’s board election. Perhaps dispositive of his point of view is his declaration that he would have been a “definitive no” vote in the recent board action extending Thompson’s employment contract for another three years. Trendic would appear to have an ally with sitting Director Tom Herrick, whose recent pronouncements about the general manager are striking. Herrick was the only sitting director to vote against the contract extension, and in a statement to the Progress he blamed the level of contentiousness within the OPA on Thompson. Herrick said the level of discord evident stemmed “from the philosophies and personality of our current general manager. I personally would like to see more neutrality in that position. It is the only way this community will heal and move more to the center in our thinking.” Strong words, but reflecting the kind of candor Herrick is becoming known for. The first two OPA members to announce their intentions to run for the board – newcomer Larry Perrone and perennial candidate Ray Unger – are far more cautious in their public comments to date with respect to Thompson. Unger, who’s tried several times to regain a seat on the board after a threeyear term, says he likes Thompson and believes he’s done a good job as manager. Joining him in that sentiment ia just announced candidate Frank Daly, a member of the beleaguered Comprehensive Plan Advisory Committee, who in his candidate announcement made it clear he was not in the “dump Thompson” camp. Several of the just announced candidates for the board this summer – Doug Parks and Tom Janasek -- seem to be closer to the Herrick-Trendic way of thinking than to Unger-Daly. But neither was willing to say for sure how they would have voted on the contract extension, saying they needed more information before they could render a definitive judgment. Jack Collins, running for reelection, voted for the extension, but the impression he gives in talking about it is that he did so unenthusiastically, more because he was well aware that Thompson had four firm votes for a contract exten-

tion sensitive to a community with a wide range of household incomes, from the massively affluent to those strugAn excursion through the curious cul-de-sacs An excursion through theby-ways curious and by-ways and cul-de-sacs gling on fixed incomes and week-toof Worcester County’s County’s most densely community. of Worcester mostpopulated densely populated community. week paychecks, should never have givBy TOM STAUSS/ By TOM Publisher STAUSS/Publisher en its general manager that generous a salary package. The building as proposed by ThompAnd he’s not prepared to simply acsion and that a nasty fight over it would son would also include an emergency cept it as a given. have been counter-productive. The implication is that as a director at He also noted as have others that the command center to be headed by Thompcontract is “at will,” meaning that it can son when Ocean Pines faces severe minimum he would seek to renegotiate the level of salary, benefits and bonuses, be cancelled at any time should a board storm or other emergency situations. A new southside firehouse notion is and, failing that, since the general manmajority decide to take the OPA in anperplexing, as no one from the Ocean ager would likely resist any downward other direction. The price of that, of course, is a very Pines Volunteer Fire Department has trajectory in his just extended compengenerous nine-month severance pack- come forward to say what’s wrong with sation package, Trendic would advocate the current facility, built back in the for an alternative to Thompson’s continage for the general manager. Perrone appears to blame the current 1980s and owned free and clear by the ued tenure in Ocean Pines. That’s the logical inference from his and previous boards for allowing the OPVFD. A meeting between the OPVFD and statement announcing his candidacy. general manager too much latitude in It’s probably wise not to promise proposing and executing policy in Ocean the OPA board of directors should be convened soon to allow a thorough and an all-out effort to remove the general Pines. Before taking action to replace candid discussion of why (if indeed that manager, as that would require at least three other directors of like mind and no Thompson, Perrone would allow some is the case) a new facility is needed. Perhaps any defects in the existing single board candidate can predict the undefined period of time to elapse to allow the board to regain its rightful place building can be addressed in a way far outcome of an election with any degree as the policy-makers in Ocean Pines, less than expensive than a new build- of confidence. Or how carry-over directors might giving Thompson marching orders to fol- ing? One would hope. But Trendic is more than a Thompson respond to overly aggressive campaign low or not, with consequences to follow if critic. He is fundamentally convinced posture. he does not fall in line. From a candidate’s perspective, betTrendic appears far less willing to that a previous board under the presidency of Tom Terry grievously erred ter to under-promise and over-delivgive Thompson more time. He explicitly objects to some of when it bestowed on Thompson a salary er, if and when a like-minded majority Thompson’s policy prescriptions, among that exceeds that of any governmental emerges from the ashes of this sumthem the general manager’s proposed or quasi-governmental executive in the mer’s election. But for OPA members who are paypublic safety building out on Route region -- $165,000 plus annual inflation 589, that could house the OPA’s police adjustments plus bonuses plus assorted ing attention, the message of Trendic’s candidacy really couldn’t be much cleardepartment, a new southside firehouse other benefits. To Trendic, a homeowners associa- er. and OPA administration departments.

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