May 2019 Ocean Pines Progress by Ocean Pines Progress

May 2019

www.issuu.com/oceanpinesprogress

443-359-7527

Fears that an insufficient number of individuals would file as candidates for the Board of Directors in this summer’s election have been proven to be premature. Eight candidates filed before the May 10, 5 p.m. deadline. Among the individuals filing were Paula Gray, who ran last summer and came in fifth, just short of the votes needed for a seat on the board; Greg Turner, a local electrician who also ran last summer; Tom Janasek, chairman of the Environment and Natural Assets Advisory Committee; and Larry Perrone, chairman of the Budget and Finance Advisory Committee.

THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY

COVER STORY

Trendic launches new organization, petition drive to let property owners decide fate of new golf clubhouse

~ Page 15

Second petition aims to reduce board spending authority to $1 million By TOM STAUSS Publisher ormer Ocean Pines Association Director Slobodan Trendic, who resigned from the Board of Directors last month in opposition to a board decision approving up to $1.6 million in replacement reserve funds to pay for a new golf clubhouse, is using his new-found freedom as a rank-and-file OPA member to oppose the board’s decision on a number of fronts. He has launched a petition drive designed to force the board to conduct a referendum on the golf clubhouse. He has launched a companion petition drive to force the board to conduct a referendum to change OPA bylaws to reduce board spending authority to $1 million, down from the $1.8 million allowed under current bylaws language. He has also launched a new organization, called START, to serve as an umbrella organization that is sponsoring and paying for these petition drives. He is obtaining donations and commitments from property owners to assist in the gathering of names on petitions to be submitted to the board. The petitions appear as paid advertisements in this edition of the Progress, on pages 6 8 and 7. 9. Trendic is asking Ocean Pines property owners to fill out the petitions and send them back to him at 20 Drawbridge

Road in Ocean Pines. Trendic told the Progress that he would like to collect the required minimum number of signatures, 845, or one tenth of the OPA membership, no later than than May June 31, 1, but hopes to have twice the number needed in order to send a message to the board that OPA members are serious about Slobodan Trendic rolling back unilateral decisionmaking by the board on issues that have significant impact on Ocean Pines property owners. The acronym START stands for strategic planning, transparency, accountability, respect and trust, all of which Trendic says are lacking in the board’s recent decision to approve up to $1.6 million in reserve spending for a new golf clubhouse. Trendic told a group of roughly 100 residents at an April 22 town meeting that he was not opposed per se to the golf clubhouse project. But he said a decision of such magnitude should be approved by all property owners in a referendum, preferably after the project was vetted and justified in a community strategic plan. No such plan exists, Trendic said. He also assured OPA members that the purpose of To Page 31

Board votes to remove remnants of Whitetail Sanctuary crabbing pier ~ Page 19

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OPA opens bids on proposals for outsourcing GM Five proposals from mostly national firms hoping to produce a general manager for the Ocean Pines Association does not inspire confidence that the outsourcing model will be able to successfully win the support of a majority of members of the Board of Directors. All five proposals, if accepted as is, would cost the OPA far more than general managers have cost over the years.

~ Page 16

OPA president signs contract for new golf clubhouse Director Frank Daly conﬁrmed in a May 9 telephone interview that OPA President Doug Parks signed a design-build contract for a new golf clubhouse with Whayland Construction in a recent meeting with the contractor.

~ Page 17

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OPA names Josh Davis director of marketing and public relations

he Ocean Pines Association has announced that Josh Davis has been hired as its new director of marketing and public relations. Davis will fill the role currently held by Denise Sawyer, whose last day with the Association will be Friday, May 17. She resigned her position with the OPA to take a news anchor job with a television station in Florida. “Josh will be an invaluable addition to the Ocean Pines Association,” said interim General Manager John Viola. “His wealth of knowledge about the organization and his integrity as a journalist will be invaluable as we work to enhance our communication with the membership.” Davis, who served as the news editor for the Ocean City Today and Bayside Gazette newspapers for five years, has close to two decades of experience writing, reporting and editing with local and national publications. He is the author of three novels, including “Vanishing is the Last Art.” “I’m excited to join the Ocean Pines team, which I think is the

strongest they’ve had in years,” Davis said. “My top priority is providing a new layer of transparency for the membership.” During his time as news editor, he was the only reporter in Worcester County to be recognized five times by the Maryland, Delaware, D.C. Press Association for excellence in journalism. He received awards for investigate reporting, feature writing and photography. During much of his tenure with the Gazette, Davis covered Ocean Pines and the OPA. He was a frequent presence at board of director meetings. “I’ve spent my career learning how to communicate effectively with people and I hope to continue doing that, and doing it well, in this new role,” Davis said. “My goal is to provide the membership with timely and accurate information, from how and why Board members voted during the last regular meeting, to what the specials are next weekend at the Yacht Club.” In his position with Ocean Pines,

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Public relations From Page 3

Crafter of the month

The Pine’eer Craft Club has announced the Crafter of Month for May is Luz Castillo. Her crafts include postage stamp pins, mosaics and magnets. She volunteers at fundraising events, builds display cases for the gift shop and helps out whenever possible. Her garden has been on the Ocean Pines Garden tour several times.

Davis will oversee and coordinate the Association’s internal and external communications systems, procedures and activities. He will be responsible for the dissemination of information to property owners, visitors and the media, including advertisements and promotion of the Association’s public amenities. In a farewell press release, Sawyer said her time in Ocean Pines was filled with fond memories and a sense of acomplishment. “From greeting local vendors and customers at the ever-growing Ocean Pines Farmers & Artisans Market; spearheading the inaugural National Night Out for the Ocean Pines Police Department; playing a fun game of platform tennis with zero racquet ball talent or understanding; making a splash as a participant of the popular hydrocycle spin class at the Sports Core Pool; to ‘rocking out’ at the Yacht Club as I videotaped the infectious live entertainment experience for our social media audience, I have not only captured #PinesPride but I have lived it. Even on my way out, I am singing Ocean Pines’ praises and marketing its many awe-inspiring features. I can’t help it,” she said.

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May 2019

IMPORTANT MESSAGE TO ALL OP HOMEOWNERS!

IMPORTANT MESSAGE TO ALL TO OCEAN PINES HOMEOWNERS! IMPORTANT MESSAGE ALL OP HOMEOWNERS! • Did you know that at the Board meeting held on April 6, 2019 three new motions were Did you know that at the Board meeting held on April 6, 2019 three new motions were added to to the the agenda? agenda, with no advance notice to the membership? added Did you you know know that that 66 board board members membersapproved approvedthese thesemotions motionsawarding awardingthree threeprojects projects •• Did with plans plans to to spend spend our our assessment assessmentdollars dollarsatatan anestimated estimatedvalue valueofof$3.3 $3.3Million? Million? •• Did Did you you know know that that two two of of these theseprojects projectscall callfor forthe thereplacement replacementofofthe theexisting existingGolf Golf Club House and Cart Barn? Club House and Cart Barn? • Do you want to allow the Board of Directors to continue to have this kind of spending • authority Do you want to allow the Board of Directors to continue to have this kind of spending over our precious assessment dollars? authority over our precious assessment dollars? •

Please sign below Petition (only ONE signature per property) and mail Please sign below Petition (only ONE Rd, signature property) and mail to: Slobodan Trendic, 20 Drawbridge Oceanper Pines MD 21811

to: Slobodan Trendic, 20 Drawbridge Rd, Ocean Pines MD 21811

 -------------------------------------------------------------------------------------------------------------------------------------

 ------------------------------------------------------------------------------------------------------------------------------------Ocean Pines Homeowners PETITION FOR REFERENDUM

Ocean Pines Homeowners PETITION FOR REFERENDUM

Purpose of PETITION: To request a referendum be held for Ocean Pines members to decide if they wish to request a change to the OPA By-Laws so that members’ approval by a referendum SHALL be required for any single capital expenditure that exceeds $1 (One) Million Dollars.

Purpose of PETITION: To request a referendum be held for Ocean Pines members to decide if

Initiation of PETITION: This petition is organized by Slobodan Trendic, 20 Drawbridge Road, who will they wish to request a represent change tothe thepetitioners. OPA By-Laws so that members’ approval by a referendum SHALL

be required for any single capital expenditure that exceeds $1 (One) Million Dollars.

The Referendum Question to be presented to the members to vote on is: Should OPA By-Laws

Initiation of PETITION: This petition is organized by Slobodan 20 Drawbridge Road, who will Section 5.13.(d)(1) be amended to read “If the total estimatedTrendic, cost, capitalized in accordance with represent the petitioners. generally accepted accounting principles, of any single capital expenditure exceeds One Million Dollars ($1,000,000.00) , the proposed single capital expenditure SHALL require approval of the The Referendum Question to be presented to the members to vote on is: Should OPA By-Laws members by a referendum”? Section 5.13.(d)(1) be amended to read “If the total estimated cost, capitalized in accordance with Printed Name Signature Lot number or OP Address generally accepted accounting principles, of any single capital expenditure exceeds One Million Dollars ($1,000,000.00) , the proposed single capital expenditure SHALL require approval of the members by a referendum”? Printed Name

Signature

Lot number or OP Address

 -------------------------------------------------------------------------------------------------------------------------------------

This ad is paid for by START with funds from concerned Ocean Pines homeowners. This ad is paid for by START with funds from the concerned Ocean Pines homeowners.

Date

ATTENTION OCEAN PINES HOMEOWNERS!

May 2019 Ocean Pines PROGRESS

ATTENTIONOCEAN OCEAN PINES HOMEOWNERS! ATTENTION OCEAN PINES HOMEOWNERS! ATTENTION PINES HOMEOWNERS! This is your opportunity to state your opinion

This This isThis your opportunity to state your your opportunity totostate your option isisyour opportunity state your optionopinion Please sign below Petition (only ONE signature per property) and mail to: Please signbelow belowPetition Petition (only perper property) and mail Please sign (onlyONE ONEsignature signature property) and mail Slobodan Trendic, 20 Drawbridge Rd, Ocean Pines MD 21811 Slobodan Trendic, 20 Drawbridge Ocean Pines MD MD 21811 to:to: Slobodan Trendic, 20 DrawbridgeRd, Rd, Ocean Pines 21811 you know this about Course Amenity? Did you know this about thethe OPAOPA GolfGolf Course Amenity? DidDid you know this about the OPA Golf Course Amenity? •

•

•$6.4 $6.4 Millionfor forpast past10 10 years years in negative revenue including depreciation Million inlosses losses(total (total negative revenue including depreciation $6.4from Million 10 years in Schedule costs (total revenue including depreciation thefor OPpast Annual Reports 15negative - Golf Operations Revenue and Expenses).from the OP from the OP Annual Reports Schedule 15 - Golf Operations Revenue and Expenses).

Annual Reports Schedule 15 - Golf Operations Revenue and Expenses).

•

• $6.2 Million for last 11 years in capital costs (total spent on related Capital $6.2 Million for last 11 years in capital costs (total spent on related Capital Expenditures for the Golf Operations, Golf Maintenance & Drainage). Expenditures for the Golf in Operations, Maintenance & Drainage). $6.2 Million for last 11 years capital costsGolf (total spent on related Capital Expenditures for the Golf

•

• $1,490.00 is the amount that impacted each OP household based on the above totals. Operations, Maintenance & Drainage). $1,490.00 Golf is the amount that impacted each OP household based on the above totals.

•

• $1,490.00 is the amount that impacted each OP household based on the above totals.

 ------------------------------------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------------------------------------

Ocean Pines Homeowners PETITION FOR REFERENDUM Ocean Pines Homeowners PETITION FOR REFERENDUM  ------------------------------------------------------------------------------------------------------------------------------------Purpose of PETITION: To request a referendum be held for members to decide if they will Purpose of PETITION: To requestthe a referendum be held for members to decide authorize Board of Directors to build new Golf Club House. if they will authorize the Board of Directors to build new Golf Club House.

Ocean Pines Homeowners PETITION FOR REFERENDUM

Initiation of PETITION: This petition is organized by Slobodan Trendic, 20 Drawbridge Road, who will Initiation of PETITION: This petition organized by Slobodan Trendic, 20 Drawbridge Road, who will represent theispetitioners. Purpose of PETITION: Torepresent request a the referendum be held for members to decide if they will authorize the petitioners.

The Referendum Question to be presented to the members to vote on is: Do you authorize Board ofto Directors to build to new Golf Club House. The the Referendum be presented to vote on is: Do you Ocean PinesQuestion Association’s Board of Directorsthe andmembers Administration to proceed with theauthorize the construction Ocean PinesofAssociation’s Board and cost Administration a new Golf Club HouseofatDirectors a total project not to exceedto 1.6proceed Million with the Initiation of PETITION: This petition is organized by Slobodan Trendic, 20 Drawbridge Road, who will represent the construction Dollars? of a new Golf Club House at a total project cost not to exceed 1.6 Million petitioners. Dollars?

The Referendum Question to be presented Signature to the members to vote on is: Do you authorize the Ocean Pines Printed Name Lot number or OP Address Date Association’s Board of Directors and Administration to proceed with the Lot construction ofOP a new Golf Club Date Printed Name Signature number or Address House at a total project cost not to exceed 1.6 Million Dollars?

 ------------------------------------------------------------------------------------------------------------------------------------Printed Name Signature Lot number or OP Address Date

 ------------------------------------------------------------------------------------------------------------------------------------This ad is paid for by START with funds from concerned Ocean Pines homeowners.

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OPA forwards North Gate comments to state DoT

About 35 Ocean Pines residents accepted an invitation by the Ocean Pines Association to comment on a proposal by the Maryland Department of Transportation (MDoT) for a traffic circle at the North Gate intersection of Route 589 and Ocean Parkway in Ocean Pines. Comments were due by end of the day on Thursday, April 25, and were then forwarded to the DOT by OPA Vice-President Steve Tuttle. His rough estimate is that about 75 percent of those offering comments were opposed to the traffic circle, sometimes called a round-about. The state DoT has asked the OPA to donate land to accommodate the traffic circle. The OPA has taken the issues under advisement. Because of funding issues, the state is two years away or longer from implementing the proposal, should it get off the drawing boards. The Board is discussing options that could include modifications to

OCEAN PINES BRIEFS the North Gate bridge that could improve travel through the North Gate entrance by adding entrance and exit lanes. A recent press release issued by the OPA said the board so far has taken no position on the roundabout. OPA President Doug Parks said recently that the state could acquire the land it needs by emiment domain, and that the OPA’s posture so far has been to see whether there is some way the state DoT and the OPA could work jointly together on a traffic circle and North Gate bridge modifications. Some of the suggestions offered by residents will likely be rejected by the DoT, including allowing traffic to leave the nearby medical complex via the Route 90 exit ramp. Another is to allow traffic to exit the med center by making left and righthand turns. The state currently allows right turns only. Some residents said the OPA could widen the North Gate bridge

Candidate search committee fails to mobilize for elections

to allow a less restrictive right hand turn upon leaving Ocean Pines, Tuttle said.

OPA awards contract for playground equipment

New playground equipment will be installed in White Horse Park this summer. During a May 6 meeting, the Board of Directors voted unanimously to award a contract to River Valley Recreation in the amount of $148,400. Four bids were received for the new equipment. Colby Phillips, Ocean Pines Association operations director, said River Valley Recreation will complete the installation in June. The project involves installation of a Playcraft System playground equipment and site furnishings, underlayment, recycled plastic border timbers, an Americans with Disabilities Act compliant ramp, and engineered wood fiber.

LOW DE ES TAX

The days of the candidate search committee may be numbered, through lack of Ocean Pines Association members willing to serve. According to OPA bylaws, its ranks are supposed to be filled by volunteers in February. The committee’s task is to ensure that the number of candidates running for the board in that summer’s elections should exceed the number of vacancies by at least two. This year, as occurred in year’s past, the OPA issued a call for members to serve on the committee, but no one responded. How vigorous the OPA effort to recruit members is debatable, as no press release seeking members appeared on the OPA’s Web site, according to Ocean Pines Forum moderator Joe Reynolds in a recent email to the board. OPA President Doug Parks said in a recent email to the Progress that the community needs to have q

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From Page 12

a discussion on whether the Search Committee should be continued or deactivated. He said the calls to the community for volunteers was no different this year than prior years. Parks made at least one such call during a meeting of the board earlier this year. He reached out to the remaining member of last year’s committee to determine whether she would help resurrect the committee, but the answer was no. Since the committee is one of those set up in the bylaws, to discontinue it entirely probably would require action by the community to change the bylaws. Placing it in an inactive status might be trickier. OPA Vice-president Steve Tuttle said in an email to the Progress that volunteers can’t be forced to join a committee and that there was little or nothing the board could do about it if there were no volunteers.

Tuttle allows dialog during Public Comments

OPA President Doug Parks was

heading back to Ocean Pines on the Interstate and participated in the May 4 Board of Directors meeting via in-and-out speaker phone. Presiding over the meeting was OPA Vice-president Steve Tuttle, who perhaps unwittingly allowed a lot of give-and-take with residents during the Public Comments segment of the meeting. That doesn’t normally happen, but Tuttle’s more relaxed approach was noted by at least one property owners, who wanted to know whether it constituted a change in policy. Tuttle replied that it was a reflection more of the fact that he’s not that experienced in running board meetings. In any event, the two-way dialog allowed by Tuttle didn’t seem to add that much more time to the meeting.

Daly ‘action update’ already in motion

OPA Director Frank Daly included on the May 4 meeting agenda an item he labeled “Board Reporting Expectations for FY 2019/2020,” an idea he has had that calls on the interim General Manager John Viola and presumably his successor

to submit monthly updates on the progress of multiple projects and initiatives as part of the monthly GM report. He is looking for updates on construction projects, drainage projects, bulkheads, roads and the NorthStar software implementation. This isn’t a new idea. It was at one time a staple of OPA board meetings, when vice-presidents or GMs offered action plans or status reports on various projects. To some extent, in various formats, updates are routine, but Daly was after something a little more formal, and apparently in writing. Interim General Manager John Viola said such a monthly update will be made available to the board and OPA members beginning next month, with color coding on the document including red, yellow or green as an assistive acoutterment.

Board appoints Piatti to fill Trendic vacancy

The Board of Directors made a number of personnel decisions official at the May 4 monthly meeting. To replace Slobodan Trendic,

who resigned last month in a disagreement with his colleagues over whether the golf clubhouse/ cart barn projects should go to referendum, the board named Tom Piatti as Trendic’s replacement for the remaining three months of Trendic’s term. Piatti will not be a candidate for the board this summer. In making the motion to appoint Piatti, Director Frank Daly cited his experience with the Parke homeowner association and expertise in new capital expenditures and enforcement of restrictive covenants. In other action, the board appointed J. Craig Tallman, Len Smith, Keith Heins, and Paul Keieger to serve on the Design Review Committee for Ocean Pines Section 18, also known as Colonial Village Homeowners Association, and appointed Tallman and Smith as co-chairs of the committee. The Colonial Village design panel works with the OPA’s Architectural Review Committee in approving new home construction or modifications within that community. The directors also approved

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From Page 13

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Prom king and queen

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Cooper Richins, son of Gary and Kim Richins and grandson of Marvin and Beverly Steen, all of Ocean Pines, and Remy Trader, daughter of Berlin/Ocean City residents Colby Phillips and John Trader, were named Worcester Prep School’s class of 2019 Prom King and Queen on Saturday, April 13. Remy will be attending the University of South Carolina in the fall and Cooper will be attending Furman University. Colby Phillips is the Ocean Pines Association’s director of operations.

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Served on Bagel, Roll or Bread • Includes a side of macaroni salad and a pickle Ham …………............................………. $7.45 Taylor Ham ……...........................…….. $7.45 Turkey ………...................................….. $7.95 Roast Beef …..................................…… $7.95 Cappicola …….................................….. $7.45 Genoa Salami …................................… $7.45 Italian Combo …...........................……. $7.95 (Roast Beef, Cappicola, Salami and Provolone) Roast Beef & Turkey ……................….. $7.95 Liverwurst …...............................……… $6.85 Bologna ……................................…….. $6.85 Egg Salad …............................………… $6.95 Tuna Salad ………..........................……. $7.75 Whitefish Salad …..................…………. $7.45 PB&J ……………….........................……. $3.75 Grilled Cheese …….......................……. $4.95 Add cheese to any sandwich for only 60 cents

Plain • Cinnamon Raisin • Sesame Onion • French Toast • Garlic Honey Wheat • Asiago • 7-Grain Berry • Poppy • Almond Everything • Everything Wheat • Rye Marble • Egg • Pumpernickel Sundried Tomato 1 Bagel ………...........................…. $1.25 Half Dozen Bagels …...............……… $7 Dozen Bagels ………............…… $13.50 Cinnamon Crunch Bagel ….....….. $1.75 N.Y. Kaiser Roll ……............….. 65 cents Portuguese Roll ……........…….. 65 cents *Irish Soda Bread Loaf $6.50 • Slice $1.50 * Special Order

FRESH PASTRIES Lemon bar ……..............................…… $2.25 Linzer Tart ................. Small $1.25 - Large $2 Muffin …….........................……………. $2.75 Brownie ….................................……….. $2.25 Turnover ………..........................……… $2.80 Croissant .............……….............. $2.80 Cinnamon buns .................………. $2.80 Minicheesecake...........……………. $3.50 Éclair ………..............................….. $2.90

There initially was no Compliance, Permits and Inspections action scheduled for the May 4 monthly board meeting, but an amendment to the agenda changed that. The directors voted to authorize OPA staff to enter onto the premises of 54 Bramblewood Drive and to remove trash from the premises, with the cost to be assessed against the property owner. Director Frank Daly told his colleagues that of Ocean Pines’ 8,452 properties, only one percent or so have alleged CPI violations requiring board action. Daly said he hoped that the board would step up its CPI enforcement activity as a way of protecting property values throughout Ocean Pines.

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The Ocean Pines Recreation and Parks Department will begin to enforce key card access to the dog park on Monday, May 13, at the Manklin Meadows complex in the south end of the community. The dog park, which includes benches, a water station, and dog waste bags, features an enclosed space and a double-gated entry. The fenced-in area allows dogs to run free and play allowing for socialization and recreation in a safe environment. Separate sections are available for large dogs more than 28 pounds and for smaller dogs less than 28 pounds to ensure a positive experience. The Recreation and Parks Department accepts dog park membership registration at 235 Ocean Parkway in Ocean Pines. The annual cost of each dog is $25 for residents and $50 for nonresidents. One additional dog may be registered at the same time for $10 for residents and $15 for nonresidents. All dogs must be at least four-months old, licensed and up-todate on all their shots. Records of shots, including rabies vaccination, must be presented at the time of registration. Each dog membership will include a key card for access to the park. For information call 410641-7052.

Eight file for OPA board, including two chairman of advisory committees Paula Gray first to announce intentions to run By TOM STAUSS Publisher

ears that an insufficient number of individuals would file as candidates for the Board of Directors in this summer’s election have been proven to be premature. Eight candidates filed before the May 10, 5 p.m. deadline, the Progress has learned There are three positions to be filled, all for three-year terms. The seats are currently occupied by Jeff Knepper, Tim Piatti and Esther Diller, none of whom are running. Knepper and Piatti are fill-ins for two directors who resigned. Among the individuals filing were Paula Gray, who ran last summer and came in fifth, just short of the votes needed for a seat on the board; Greg Turner, a local electrician who also ran last summer; Tom Janasek, chairman of the Environment and Natural Assets Advisory Committee; and Larry Perrone, chairman of the Budget and Finance Advisory Committee. A complete list of candidates most likely will be posted on the OPA Web site sometime this month. Candidates need to be vetted to make sure they have assessments paid up and no outstanding compliance issues. Of the eight candidates, Gray was the first to make her candidacy known

through the local media. She ran for the board last summer, finishing fifth behind Esther Diller

May 2019 Ocean Pines PROGRESS by 23 votes. Diller is not running for relection. Nor is Ted Moroney, who placed third in the balloting last summer, along with Diller winning a one-year term. Moroney resigned from the board several months ago for personal reasons and was not expected to run. Gray did an interview with a local weekly in which she outlined three objectives: providing greater transparency into Ocean Pines Association affairs for residents, giving younger residents a reasons to get more engaged in the community and thereby giving them a reason to vote, and promoting the idea that questions asked during monthly board meetings Paula Gray q

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OPA opens bids on GM outsourcing option First reaction isn’t positive as all five proposals seem prohibitively expensive By TOM STAUSS Publisher ive proposals from mostly national firms hoping to produce a general manager for the Ocean Pines Association does not inspire confidence that the outsourcing model will be able to successfully win the support of a majority of members of the Board of Directors. All five proposals, if accepted as is, would cost the OPA far more than general managers have cost over the years, even when adjusting for inflation. But nor does it appear that a board majority is inclined to shop for a new GM in the traditional manner, hiring a national search firm to assist in finding candidates and then using the firm to “cull the herd” and then vetting those who remain, with the board picking from two or three finalists. Instead, after Director Colette Horn acknowledged a lack of support for hiring a search firm during a discussion she initiated at a May 4 board meeting, directors informally authorized a less formal

approach to finding a new GM. They agreed to authorize staff to place advertisements in national trade publications and local media outlets for a new GM, with the aim of finding suitable candidates without spending a lot of money. Even so, OPA Interim General Manager John Viola intends to vet all five proposals from outside firms, with the aim of making a recommendation to the board once that process is complete. Viola said in a May 6 email that

Board candidates From Page 15 should be answered immediately. Whether by design or happenstance, the latter seems to have occurred already, for one meeting at least. Presiding over the May 4 board meeting in the absence of OPA President Doug Parks, OPA Vice-president Steve Tuttle allowed some of the two-way communication of the kind that Gray suggested would be

Ocean Pines 6th Annual Car Show Sunday, May 26th The Ocean Pines Chamber of Commerce is excited to announce that it will be hosting its 6th Annual Car Show on Sunday, May 26th. The Car Show will be held at Veterans Memorial Park located on the corner of Cathell and Racetrack Roads. There will be several food and business vendors as well as music and a live radio remote. For more information on registering for the car show or becoming a vendor please call the OP Chamber: 410-641-5306 or stop in the office at 11031 Cathell Road Berlin, MD 21811. The Car Show will begin approx. 11 a.m. and trophies will be awarded at 1 p.m. There will be trophies awarded in these categories; Classic, Antique, Hot Rod, Modern, Customs, Jeep and People’s Choice. Pre-registration is available on line for just $12 or $15 the day of the show. Registration will be at Veterans Memorial Park beginning at 10am. All cars must be registered by noon to participate in the car show. Register on line at: www.OceanPinesChamber.org. Ocean Pines Chamber office:

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Executive Assistant Michelle Bennet “has shown leadership and offered to oversee the vetting of the proposals,” adding that Director of Operations Colby Phillips and Director of Financne Steve Phillips “have also volunteered. I am reaching out to Larry Perrone, Jeff Knepper, and John O’Connor due to their background in the past with this type of initiative.” Perrone and O’Connor are members of the Budget and Finance Advisory Committee and Knepper a good idea. Gray has not been shy at recent board meetings, offering her views on topics of the day, usually without receiving any kind of response from directors. At one recent board meeting, she promoted the idea of hiring Colby Phillips, currently the OPA’s director of operations, as the OPA’s new general manager to replace the departed John Bailey. The current interim GM, John Viola, had already been voted in as a temporary replacement, with the board taking that action in a special meeting earlier on the same day that Gray offered her remarks. No one bothered to tell Gray that the action she was promoting had already been superseded by a board decision to appoint Viola, a fact that would have been known by a relatively few people, those who attended the special meeting or watched it live on a You-tube video. At the board’s May 4 meeting, she challenged two recent board decisions, one involving the Whitetail Sanctuary crabbing pier and the other involving cost estimates for the proposed new golf clubhouse. In the case of the crabbing pier,

recently was appointed to fill a vacancy on the board. Viola said he would be discussing with Bennet “the approach and what format (in which) I would like to see the summary of the team’s analysis, recommendations and answers to questions I have. I would also like to know if there were any non-disclosure agreements involved, I would not expect any but just want to be sure since I was alerted to check.” When the board discussed the issue during the May 4 board meeting, it was not clear whether all the directors were fully informed of the five bid proposals opened by Viola and Bennett a day earlier. Two diq

16 Ocean Pines PROGRESS

she pointed out that the conveyance of ownership of the crabbing pier to the OPA by the developer in the early 2000s involved the payment of a sum of money -- Tuttle acknowledged that it was $25,000 -- by the developer to OPA for the purpose of maintaining the pier. Gray wondered whether there be some legal liability for the OPA if it were to abandon an asset that it was obligated by contract to maintain, especially since money changed hands as part of that agreement, which is more than 15 years old. She received no answer to that question. Later in the meeting, a board majority voted to remove all remaining traces of the pier. Also at the May 4 board meeting, Gray expressed concern about the list of exclusions from the new golf clubhouse contract that has been executed by the OPA and the Whayland Company of Laurel, De. She asked the board to produce a document that would itemize the potential cost to the OPA of each of the exclusions. No such document exists, and the OPA hopes to avoid any costs associated with the exclusion list. There was no response to that

OCEAN PINES

May 2019 Ocean Pines PROGRESS

Director says board members, counsel reviewed contract before it was signed By TOM STAUSS Publisher irector Frank Daly conﬁrmed in a May 9 telephone interview that OPA President Doug Parks signed a design-build contract for a new golf clubhouse with Whayland Construction in a recent meeting with the contractor attended by three directors -Parks, Daly and Steve Tuttle -- unpaid consultant Marvin Steen, and OPA General Manager John Viola, among others. Two other attendees in addition to Daly said they saw Parks sign the contract, including the possibility of multiple copies. The contract’s “not to exceed” or guaranteed maximum price remains at $1.6 million, including a $180,000 contingency. The size of the new building is roughly 8,000 square feet. Daly says he believes the other two contracts with Whayland have

been signed -- the cartbarn contract and the Administration building/ Ocean Pines Police Department expansion contract. Daly said that all three contracts had been reviewed by general counsel Jeremy Tucker and by

Outsourcing From Page 16 rectors, Steve Tuttle and Horn were in attendance, along with one local media member. According to one source, none of the five proposals impressed anyone at the meeting. In remarks during the May 4 board meeting, Viola said he would have a recommendation to the board by Wednesday, May 8, on how to proceed with the vetting of the five proposals. That task normally involves some of leveling, so that there’s a fair comparison of all the proposals.

individual directors, with no problem areas uncovered. Former Director Slobodan Trendic has been critical of the way the contract was handled, saying it should have been formally approved by the board after it was ﬁnalized Indeed, the proposals contain a number of add-on services that could complicate the vetting process. The Progress has learned that FirstService Residential’s bid was for $7,916 a month, plus the actual cost of a GM and a 7 percent markup on that actual cost. First Service is a national firm that manages communities throughout the U.S. IKO Community Management of Olney submitted a proposal for $250,000, in which it would supply a team of managers to work with a GM. Premier Property and Pool Management of Lewes and Middletown, De., submitted a proposal for two community managers and two financial managers, at a cost of $300,000 annually. Tidewater Property Management of Owings Mills proposal for a general manager at a $325,000 annual cost. Legum and Norman, a division of national firm Associa, submitted a proposal costing $46,000 a month for a GM and a host of other services including financial software. The OPA has already decided to replace its antiquated financial software with a product by NorthStar Technologies and is not likely to be interested in revisiting this decision, having spent well over a year reaching it. During board discussion May 4, director Jeff Knepper said he was not opposed in principle to the outsourcing model or hiring inhouse, but he said that in either case the OPA has to be careful that whomever the OPA hires should be someone familiar with or who can adapt to OPA’s corporate culture. That could suggest that Knepper would be more inclined to hire from within the organization, but he did not say that explicitly during his remarks. The Progress has learned that

and reviewed. Instead, Parks used the action of the board in March approving up to $1.6 million in OPA reserve dollars for the new building as justiﬁcation for signing the contract. Trendic said that violates wording in the OPA bylaws requiring board action “approving” a contract before it can be signed. The board’s action in March approving up to $1.6 million for a new golf clubhouse did not specify q

Parks signs Whayland contract for new golf clubhouse, Daly confirms

there is support in OPA upper management for Viola continuing in his interim role as long as possible or offering him a paid position as GM, with Director of Operations Colby Phillips and Director of Finance Steve Phillips continuing in their current roles. Director of Golf John Malinowski and Chief of Police Dave Massey would continue as their roles are current defined under a recently unveiled OPA management chart. The board has been pursuing an outsource option through an RFP process to solicit operations and management services. That RFP sought proposals, due back to the OPA by May 3, to provide third party management services to oversee the operational environment of the association. OPA bylaws provide the option of using a management firm. Horn has been less enamored with the outsourcing model than some of her colleagues, expressing concern, born out by actual proposals, that this option would turn out to be too costly. She offered a motion at the April monthly board meeting to solicit a national search firm to aid in a more traditional search for a new GM. “In order to provide the association with all possible options, and to ensure the best and most cost-effective alternative we also should be engaging a process for locating candidates to hire to fill the position with an individual who would be hired as an employee of OPA. This motion is meant to initiate that process through solicitation of bids from executive search firms,” Horn said in making her motion. With other directors calling it premature, Horn ultimately agreed to tabling her motion until a future meeting. When that future meeting arrived, she avoided reminding her colleagues of her previous skepticism of the outsourcing model.

18 Ocean Pines PROGRESS

BOARD OF DIRECTORS

May 2019

Golf clubhouse From Page 17

any subsequent board vote. Trendic resigned after the March meeting because he believed the board should have let property owners decide the issue in a communitywide referendum. He has launched a petition campaign to force such a referendum. Daly told the Progress that while he respects Trendic’s right to launch a petition drive to force a referendum, the board in Daly’s opinion “played by the rules” in approving a project that fell under the board’s spending authority of $1.8 million. Daly said that if it comes down to dueling interpretations of OPA bylaws in court, he said he thought a judge would come down in favor of the board. “We played by the rules, and the petition drive seems to want to change those rules after the board had made a decision consistent with those rules,” Daly said. Even if a petition drive succeeds and is upheld in court, and a referendum ensues that votes down the new clubhouse, the board still would be obligated to deal with an aging building with significant issues, including mold, Daly said. The options would include attempting to complete the second floor renovation, which Daly said he would oppose, and cutting the size of the building. Daly confirmed that there will be some activity at the job site this summer, with the first phase including removal of anywhere from $120,000 to $150,000 in equipment and furnishings to the Public Works building in South Ocean Pines. Landscaping features are also slat-

ed for removal. That will be followed by demolition, which could occur before the original timeline of post-Labor Day, Daly said. Viola told the Progress that the plan still is for demolition to occur after Labor Day to minimize disruption of golf operations this summer. In other related developments: • Although the cart barn “maximum guaranteed price” is more than $400,000, Viola told the Progress that he believes the actual price could be half that, but at least $100,000 less. The contractor has been advised that the OPA’s preferred choice is for a metal “Butler” building as opposed to a wood structure that was called for in the original request for proposals sent out under the administration of former GM John Bailey. In the recent meeting with the contractor, Steen advised him that in Worcester County, a metal building does not need to be sprinklered, and that the cost savings for not having to install a sprinkler system should be about $70,000. In

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addition, the cost of a pre-fab metal building that will be be installed is much less expensive than a stickbuilt wooden structure, Steen said. • Steen says he has volunteered to apply for any and all permits required by Worcester County for the new clubhouse. • The contractor will be unable to save the Country Club’s concrete slab foundation because of cracks that have contributed to mold issues in the building, the Progress has been told. A new concrete slab will be pored over the existing one, which will create a single, one-level one-story ﬂoor somewhat higher than the ﬂooring in the current Country Club’s pro shop and Tern Grille. An elevated deck will be built on the back side of the new clubhouse and on the side of the building facing the 18th green, with steps down to ground level, Steen said. • Because the existing story-anda-half entrance level to the Country Club rises several feet above the ground level, and the circular driveway rises to meet it, the plan will

be to reduce the elevated portion of the driveway under the Country Club’s portico by three or four feet, Steen and Viola told the Progress. Viola added that the “back part” of the circular drive-way closest to the driving range will also requre additional ﬁll so the circular drive will be the same level throughout. • The plan still is to have Public Works remove landscaping features from the circular driveway, store them, and then replant bushes and ﬂowers and replace other landscaping elements to the site when the new clubhouse is built. • Viola said the change of elevation to the circular drive-way does not constitute a change order despite the fact that it is not included in the original request for proposals. • He was less sure whether adding decking to the side of the building facing the 18th green, in addition to the back side of the building would constitute a change order. But he said any costs would be minimal, and that Steen has indicated there could be savings elsewhere that would offset any cost increases.

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May 2019 Ocean Pines PROGRESS

Board votes to remove remaining structures of crabbing pier Director of Operations looking at alternative site at Swim and Racquet Club for replacement amenity By ROTA L. KNOTT Contributing Writer fter months of debate, the Board of Directors has decided to do away with the crabbing pier in Whitetail Sanctuary and not to replace it. Rejecting a “friendly amendment” that called for identifying a site for a new crabbing pier elsewhere, Director Steve Tuttle made a motion to remove the structure during a May 6 meeting. Tuttle’s motion called for the board to approve a plan to remove the remaining structures associated with the former crabbing pier located in the White Tail Sanctuary of Ocean Pines and to restore the area to a natural wetland and wooded area. As background, he said the original permit for the pier was issued in 1994 and provides for the construction for two piers. The permit allowed for the installation of two each of floating walkways, ramps of floating walkways, elevated walkways and floating crabbing platforms for recreational use of abutting residential sections. A turnover agreement for the section states that the Sanctuary will convey to the OPA, and the association will accept one pier extending from pedestrian easements as

shown on the plats into Manklin Creek. The turnover agreement calls for the OPA to maintain the pedestrian easements and the pier structure. The OPA received payment of $25,000 in lieu of the construction of a second pier structure and was supposed to use the funds to improve drainage areas within the section. The document specifies that the OPA was under no further obligation to construct the second crabbing pier. In making his motion, Tuttle said the current location of the pier in Whitetail Sanctuary is such that maintenance, sanitation and policing are difficult. He cited parking as an issue and said it would continue to be a problem if the pier was replaced. In addition, even with the installation of security cameras to alert police of an emergency or irresponsible activity the site is not easily accessible by police or emergency vehicles, he said. “The purpose of this motion is to take action as a Board to remove what is left of the original crabbing pier and to return the area to a more natural state. The effect will be to remove the elevated walkway, the bike rack, any benches, the culverts in the drainage ditch, and restore the area to a more natural wetland

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A photograph that dates back from the 1970s shows a boat dock to the east of the Swim and Racquet Club pool, long since removed. OPA staff is working with the county to determine if this site could be used for a replacement crabbing pier.

area. This is contingent on Worcester County approving of the removal plan,” Tuttle said in making the motion. Director Collette Horn gave a second to the motion, which carried in a 5-0-1 vote, with Tuttle, Horn, Frank Daly, Esther Diller and Jeff Knepper in favor. Newly appointed Director Tom Piatti abstained and OPA President Doug Parks was absent from the meeting, checking in by phone as reception allowed. “This again is a victim of poor maintenance and inaction by past management and boards permitting that inaction,” Daly said of the poor condition of the existing crabbing pier. He said many of the issues related

to the crabbing pier can be rectified, but two cannot be. The first issue is that some residents of Whitetail Sanctuary simply don’t want the crabbing pier in their community. “If that was the case and that was the only issue, then we would rebuild it where it’s at,” Daly said. However, a more serious issue is that of safety, according to Daly. “That pier is way out…” he said. “If you do have an emergency, somebody falls in, the time for response is simply too long to be acceptable to me as a board member.” Daly said he would not favor rebuilding the crabbing pier at the same location. However, he said he does believe the OPA should reTo Page 22

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Crabbing pier From Page 19 build it somewhere because it is an amenity the community uses. He offered a friendly amendment to Tuttle’s motion suggesting a new pier be built at the Swim and Racquet Club and the OPA begin the permitting process to see if it is possible. That process is already under way, but Tuttle didn’t want it added to his motion in the form of a friendly amendment. Horn agreed the OPA should look for an alternative site but said Daly’s proposal was premature. She said a site study needs done first to determine whether permitting for a new pier is even possible. Then a motion could be put forward to construct a new structure, she said. Tuttle declined to accept the “friendly amendment” posed by Dally, saying “I think it’s important that we act on this motion.” He said OPA staff is already work to identify an appropriate alternative site, and any approval of such would be voted on in a separate motion. During the public comments segment of the board meeting, former OPA Director Slobodan Tren-

dic called for a legal opinion on the OPA’s ability to remove the crabbing pier. He called on directors to review the process the board must use to eliminate an amenity. Trendic said the OPA’s bylaws state the order in which the association’s governing documents should be enforced, with the declaration of restrictions first, followed by the corporate charter, the bylaws, and resolutions. In hiz comments to the board, Trendic said if the Board has not obtained a legal opinion then it is prudent that this be done promptly before the board entertains Tuttle’s motion. “One of the primary functions of a homeowners associations is the maintenance, repair and replacement” of common elements. This would include amenities such as tennis courts, swimming pools and the crabbing pier. The maintenance responsibilities are set forth in the relevant governing documents,” he said. Those documents generally require boards to preserve components in perpetuity, Trendic said, adding that a broad discretion commonly vested in boards to maintain, repair and replace common elements may

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not apply to board’s decision to remove or delete a common element. Trendic said the OPA’s Articles of Amendment and Restatement specify that one of the association’s responsibilities is to “own, manage, maintain, rebuild, operate, improve, and repair and/or beautify all streets, rights of way, all parks, common areas, recreational facilities, bulkheads and waterways designated on the Subdivision plats and pedestrian or other easements within the Subdivision not subject to maintenance by government authority, and all other community features of such land and other real property owned by the Association, as may be conveyed from time to time.” Trendic also reminded the board that last year it voted unanimously to instruct the general manager to issue a Request for Proposals for replacement of the crabbing pier on the same site in Whitetail Sanctuary. The motion specified that the scope of work should include any desirable pier safety and other improvements and be in compliance with all current laws and regulations. The RFP was to be sent to the board for review and approval no later than August 31, 2018. The RFP was drafted and sent

out, with two responses, the Progress has learned. One was for $98,700 and the other was for $113,500. Former General Manager John Bailey, who generally favored the position of Sanctuary residents opposed to rebuilding the pier during his tenure as GM, did not present the two proposals to the board for review and possible action. Director of Operations Colby Phillips told the board that she and her staff are working on a plan for a new crabbing pier at Swim and Racquet, in a “grassy area” near the sandy beach next to the swimming pool that was the site of a pier in the early days of Ocean Pines. A long-time resident of Ocean Pines, Virginia Reister, confirms that the pier was there at one time, in the early days of Ocean Pines. She doesn’t recall exactly when. A photograph of the area that was part of Ocean Pines’ 50th anniversary memorabilia last year showed the pier adjacent to the sandy beach near the Swim and Racquet Club pool. That’s where Phillips is exploring with county regulators the possibility of building a crabbing pier. Unlike the Sanctuary location, security, sanitation and parking would not be a problem at this location.

OCEAN PINES

May 2019 Ocean Pines PROGRESS

Malinowski says golf operations will end year ahead of budget Back-to-back hurricanes devastated revenues, but the course recovered By ROTA L. KNOTT Contributing Writer et weather that pummeled the Ocean Pines Golf Course last year caused revenue to dip, but the amenity still finished the year ahead of budget. During a May 6 meeting of the Board of Directors , John Malinowski, golf director, said the forecast shows an $80,000 projected loss for the year ending April 30, 2019, $20,000 better than budget. Malinowski cautioned that the numbers hadn’t been finalized yet, but it looks like the Ocean Pines Association’s golf course did better last year than anticipated despite a drop in play when two hurricanes passed by. “It’s not as good as we were hoping. Up to September we were in a positive light and then Mother Nature came in and kinda wrecked our plans,” he said. The golf course lost approximately $60,000 in revenue in two weeks when those back-to-back hurricanes came through, Malinowski said. “No one can really plan for that. We plan for some rain but we don’t plan for a couple hurricanes to come in back to back,” he said, adding, “the year was going well up to that point.” Since then, he said, play has recovered nicely. “Without the rain everything’s going forward.” He said the golf course finished the fiscal year strong because there had been no rain for the last couple of weeks. Malinowski said golfers played 26,000 rounds at the Ocean Pines course last year. While that figure is down a little from the previous year, he said that too is because of the weather. “But given the fact it was the wettest year on record it’s not too surprising,” he said. Most of those rounds of golf were played by Ocean Piners. Of the 26,000, 56 percent of those were played by Ocean Pines Association property owners, including golf club members and non-member residents. Malinowski said approximately 1,500 of the OPA’s members, including 186 prepaid golf club members, played golf at the Ocean Pines course last year. “I always hear there’s only 100 people playing the golf course and that’s absolutely not correct,” Ma-

linowski said. So far in 2019-2020, the fiscal year that began May 1, Malinowski said bookings for rounds of golf at the Ocean Pines course are strong. He said the previous weekend was “fantastic,” with 600 rounds of golf played over Friday, Saturday, and Sunday, many by non-residents. “Our bookings for the year that just started are up significantly over

last year, which is good,” he said. Malinowski added that the reviews of the course from golfers, including both resident and outsiders, are also positive. He said the golf course is in great shape,” in much better condition that many other courses in the area. He said the Ocean Pines golf course is a true value for the money. Play for non-residents is less

than $100, whereas they would pay $150, $180, or $190 to play other local courses. He said this price point “gets us back on the map with them.” There are no plans for major improvements to the golf course irrigation system this year, according to Malinowski. “We do routine maintenance every year,” he said, so work is consistently performed to keep the system operating appropriately. Right now, he said everything is good working order. But the main part of the irrigation system is now 50 years old and newer portions are 20 years old. “There’s no plans in the near future for any big upgrades to our system,” he said.

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24 Ocean Pines PROGRESS

OCEAN PINES

May 2019

Rumors of uncollected receivables for outside play aren’t true, Malinowski says

eports of substantial amounts of money owed the Ocean Pines Association’s golf operations by outside vendors such as area hotels or golf book agencies are rumors and aren’t true, Director of Golf John Malinowski declared definitively during a May 4 meeting of the Board of Directors. He said that if any vendor remained in arrears, he and his staff would do whatever it could to collect the money owed. Director of Finance Steve Phillips was asked by oceanpinesforum. com blogger Joe Reynolds to produce an aging list of golf-related with vendor names redacted. Phillips did so, and the list did not reveal any vendor seriously in arrears, at least none dating back years.

Nelson Fenwick, a member of the Ocean Pines Golf Club and founder of the Sand Dawgs, a group of volunteers who banded together last year to keep the Ocean Pines in playable shape, repairs a divot by “sanding it,” a process that restores the grass within a week An untreated divot takes up to a month to recover. The Sand Dawgs also repair ball marks on greens, which reduces the healing time from a week to two or three days. The group’s 16 members are each assigned a hole or two for which they are responsible; four alternate members fill in when needed. They inspect and maintain the holes on a weekly or bi-weekly basis during the prime golf season. Volunteers are encouraged to head out on the course with bottles of sand – tinted green to blend in with the grass – when golfers aren’t around. The Sand Dawgs also complete a hole report, which allows them to alert maintenance staff of any areas of concern on the course “that affect playability or safety,” according to Fenwick.

East Coast Construction finishing up Beach Club renovations in time for season By ROTA L. KNOTT Contributing Writer rainage improvements along Beauchamp Road that were abandoned by the Ocean Pines Association for unknown reasons are back in the planning stag-

es. Colby Phillips, OPA operations director, during a May 6 Board of Directors meeting said the reconstituted Drainage Working Group is revisiting the proposed stormwater management strategy. As part of her operations report, Phillips said drainage is a top priority for the OPA’s management team. She said Ocean Pines is plagued by stormwater management issues. “Unfortunately some of the areas are in wetlands and there is not a lot we can do, but we are working individually with homeowners that reach out to offer suggestions or get the county involved if we’re able to,” she said. Phillips said a few years ago the OPA was working to have some pipes replaced along Beauchamp Road to alleviate flooding interior to Ocean Pines in the areas of Bainbridge and Moonraker. “That project was stopped. I can’t tell you why it was stopped but I can tell you that we are looking to pick that up as soon as possible,” she said. Enlarging those drainage pipes should help improve stormwater flow, she said. Phillips said the bulkhead replacement program is continuing despite some delays. She said three contractors are working in Ocean q

Sand Dawgs

Beauchamp Road drainage improvements to be resurrected, Phillips says

OPA FINANCES

May 2019 Ocean Pines PROGRESS

Forensic audit complete, to be released to OPA members after board review â&#x20AC;&#x153;No surprisesâ&#x20AC;? in final draft interim GM tells board occurred in the two years of operations that the forensic auditing firm covered in its investigation. He declined to say whether the report is recommending any criminal referalls to the countyâ&#x20AC;&#x2122;s Bureau of Investigations. But Director Frank Daly told the Progress in a May 6 telephone interview that he doubts any prosecutions will result from the forensic audit, and that any â&#x20AC;&#x153;suprisesâ&#x20AC;? from the audit might be more in the direction of â&#x20AC;&#x153;positive commentsâ&#x20AC;? from the auditors about OPA accounting procedures. The audit has taken place in two phases. Roughly a year ago, Gross, Mendelsohn & Associates began auditing food and beverage operations. This past October, the board unanimously voted to approve the second phase of the audit, focusing on the

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Public Works Department. Gross, Mendelsohn, a firm that includes experienced certified public accountants and certified fraud examiners, has handled both phases of the audit for the OPA, at a cost of between $150,000 and $200,000. Daly said the last estimate he had heard was $180,000 from Director of

Beauchamp Road

Finance Steve Phillips. The firm produced interim reports on much of its early work last year. Those reports are available for viewing online at oceanpines.org by using the siteâ&#x20AC;&#x2122;s search function. The outcome of the first phase of the forensic was not released. In October of last year, Director of Finance Steve Phillips posted a report on the OPA Web site that said that Gross, Mendlesohn: â&#x20AC;˘ performed detailed a review of additional deposit logs produced by the bank in response to a subpoena for OPA deposits during the period of July 2017 and August 2017. â&#x20AC;˘ began planning the forensic acq

By TOM STAUSS Publisher nterim General Manager John Viola announced during the May 4 monthly meeting of the Board of Directors that the year-long forensic audit of the Ocean Pines Associationâ&#x20AC;&#x2122;s food and beverage and Public Works operations is complete, with a final report in his hands and submitted to members of the board for review. Once that review is complete, Viola said, the report will be posted on the OPA Web site in compliance with a previous pledge to make the forensic auditâ&#x20AC;&#x2122;s conclusions available to the membership. He said he thought a two-week turn-around was possible from a May 6 email, which would take the release date to on or about May 20. Viola said in an May 3 telephone interview that he had read the report and found â&#x20AC;&#x153;no surprisesâ&#x20AC;? in it, meaning that it pretty much confirmed what he had already known about the OPAâ&#x20AC;&#x2122;s procedures now in place to combat theft and other issues. Viola served for several months as the OPAâ&#x20AC;&#x2122;s director of finance during the period covered by the audit. He said itâ&#x20AC;&#x2122;s well known that theft

The plan is to release the report within two weeks of the May 6 meeting, the Progress has been told. * Viola also said bids were received in response to a request for proposPrince Georges Md (Name of MuniCnty Bond) als that was solicited seeking management firms for outsourcing of Price: 98.500 (00.00) general management. Coupon: 3.25 (00/00/00) He is assembling a review team Maturity Date: 07/15/2036 (00/00/00) that will summarize the proposals Callable Date: 07/15/2028 (00/00/00 or N/A) and make a recommendation Prince Georges Cnty Mdto the (Name of Muni Bond) Call Price: 100 (000) Board of Directors for consideration. Aaa / AAA

From Page 24

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Pines to wrap up that work. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re looking to get those three areas completed as soon as possible,â&#x20AC;? she said. In the future, Phillips said the OPA plans to return to a schedule of bulkhead work between the months of October and April only, to avoid disruption in prime boating season. The OPA has opted to complete renovations to the bathrooms on the Rating: (XXX/XXX) Ocean Pines golf course using inOther: 98.500 (Obligor) Price: (00.00) house labor instead of contracting * out the work, Phillips said. Coupon: (00/00/00) 3.25 Public Works Department crews Carrie Dupuie, AAMS University Md Sys Auxiliary (Financial Advisor Financial Advisor Name) are completing painting of the facili- Maturity Date: 07/15/2036 (00/00/00) Title) Prince Georges Cnty Md (Name of Muni Bond) Fac &215(Approved Tuition North Main Street Rev ties and will be installing new toilets Berlin, MD 21811 07/15/2028 (Address) Callable Date: (00/00/00 or N/A) and other improvements. Price: 98.500 (00.00) 410-208-1704 (City, ST 00000) Carrie.Dupuie@RaymondJames.com â&#x20AC;&#x153;If you are someone that uses Coupon: 100 (00/00/00) 3.25 (000-000-0000) I (Toll-Free: 800-000-0000) Call Price: (000) (000-000-0000) the golf course, you should see that 4/01/2039 MaturityDue Date:Fax:07/15/2036 (00/00/00) (E-mail Address) / AAA those will be a little bit nicer this 07/15/2028 Rating: (XXX/XXX) Callable Date: Aaa (00/00/00 (Website) or N/A) Callable 04/2029 summer,â&#x20AC;? she said. Call Price: 100 (000) Other: (Obligor) At the Beach Club in Ocean City, / AAA 100 Rating: (XXX/XXX) CallAaa Price * East Coast Construction is finishing Other: (Obligor) (0.00%) TAX-FREE 3.25 % TAX-FREE* Rating Aa1/AA+ up second floor renovations, Phillips 06/07/2018 **As As ofof 00/00/00. Prince Georges Cnty Md (Name ofThe Muni Bond) Subject to availability and price change. Minimum purchases may apply. yield is the lesser of yield to maturity or yield to call. Interest is generally exem said. from federal taxation and may also be free of state and local taxes for investors residing in the state and/or locality where the bonds were issued. Howe AAMS bonds may be subject to federal alternative minimum Carrie tax (AMT), and Dupuie, profits and losses on tax-exempt bonds may be subject to capital gains tax treatme The renovations will improve the (00.00) Ratings by Moodyâ&#x20AC;&#x2122;s/Standard & Poorâ&#x20AC;&#x2122;s. A creditCarrie ratingPrice: of a security 98.500 isDupuie, not a recommendation toAAMS buy, sell or hold the security and may be subject to revi (Financial Advisor Name) revision, suspension, reduction or withdrawal at any time by the Financial assigning RatingAdvisor Agency. Insurance pertains only to the timely payment of principal and int (00/00/00) est. No representation is made as to(Financial any insurerâ&#x20AC;&#x2122;sCoupon: ability to meet its3.25 financial commitments. Ratings andName) insurance do not remove market risk since they Advisor (Approved Title) Financial Advisor view of the ocean from the facility by not guarantee the market value of the bond. 215 North Main Street 07/15/2036 Maturity Date: (00/00/00) Securities offered through Raymond James Financial Services,Berlin, Inc. member FINRA/SIPC. MD 21811 (Approved Title) removing the roof overhang, replac(Address) or 07/15/2028 Callable Date: (00/00/00 N/A) 215 North Main Street 410-208-1704 ST 00000) 100 Call Price:(City, (000) ing old windows, adding fresh paint, Carrie.Dupuie@RaymondJames.com (000-000-0000) I (Toll-Free: 800-000-0000) Berlin, MD 21811 / AAA Rating: Aaa (XXX/XXX) (Address) and extending the bar area. Fax: (Obligor) (000-000-0000) Other: 410-208-1704 (E-mailST Address) The Beach Club will be finished (City, 00000) (Website) Carrie.Dupuie@RaymondJames.com in time for a special closed event (000-000-0000) I (Toll-Free: Carrie Dupuie, AAMS 800-000-0000) (Financial Advisor Name) in mid-May and the facility will be (Approved Title) Fax: (000-000-0000) opening to members on May 24. (Address) (E-mail (City, STAddress) 00000) The OPAâ&#x20AC;&#x2122;s swimming pools are (000-000-0000) I (Toll-Free: 800-000-0000) 06/07/2018 (Website) **As As ofof 00/00/00. Fax: (000-000-0000) being prepped for the season and Address) Subject to availability and price change. Minimum purchases may (E-mail apply. The yield is the lesser of yield to maturity or yield to call. Interest is generally exem federal taxation and may also be free of state and local taxes for investors residing in the state and/or locality where the bonds were issued. Howe (Website) will be ready to open on May 25. from bonds may be subject to federal alternative minimum tax (AMT), and profits and losses on tax-exempt bonds may be subject to capital gains tax treatme Ratings by Moodyâ&#x20AC;&#x2122;s/Standard & Poorâ&#x20AC;&#x2122;s. A credit rating of a security is not a recommendation to buy, sell or hold the security and may be subject to revi revision, suspension, reduction or withdrawal at any time by the assigning Rating Agency. Insurance pertains only to the timely payment of principal and int John Viola, interim general manest. No representation is made as to any insurerâ&#x20AC;&#x2122;s ability to meet its financial commitments. Ratings and insurance do not remove market risk since they not guarantee the market value of the bond. ager, said a forensic audit of OPA fiSecurities offered through Raymond James Financial Services, Inc. member FINRA/SIPC. Subject to availability and price change. Minimum purchases may apply. 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OPA FINANCES

May 2019

By TOM STAUSS Publisher ided by adjustments to the Yacht Club’s actual financial results that were made possible by what could be construed as a contract that favored the Matt Ortt Companies, the Yacht Club and Beach Club’s food and beverage manager is on track to receive a $50,000 bonus for exceeding the Yacht Club budget and another $9,000 for exceeding the Beach Club budget. The company also is expected to receive an $11,000 profit bonus based on combined results at both amenities. That bonus will be charged entirely to the Yacht Club. No one within the Ocean Pines Association seems particularly unhappy about this scenario, because with or without the bonuses. the Yacht Club is expected to close out the year with a modest $71,000 loss, including the two bonuses. Also included in that loss are $11,000 in banquet commissions and $112,000 in management fees. Without the bonuses, the loss would have been roughly $10,000. The projected $71,000 loss is ahead of budget by roughly $30,000. The Beach Club’s projected $102,000 surplus for the year is very

Ortt Companies earn $50,000 Yacht Club budget bonus

Food and beverage management company will also receive a $9,000 Beach Club budget bonus and an $11,000 profit bonus close to what was budgeted. To enable the $50,000 budget bonus, the OPA “backed out” or adjusted out of actual results about $54,000 in exclusions from the Yacht Club budget for 2018-19. The “adjusted profit” for the Yacht Club, according to OPA Director of Finance Steve Phillips, was $43,000, or $135,000 better than the budgeted loss for the amenity this year. To earn the $50,000 budget bonus, MOC would have needed to exceed the budget by $100,000. April results and adjustments are unlikely to affect this bonus calculation significantly. Phillips began “accruing” anticipated bonuses to be paid out to MOC over the winter, reflecting these bonuses in roughly equal installments on the monthly financial reports for the Yacht Club to avoid a major negative impact on the financials in April, the last month of the fiscal year. But no checks were issued to

MOC over this accrual period. The bonus checks will be issued early in the 2019-20 fiscal year after final adjustments are made. In a recent email, Phillips offered an explanation of the $54,000 in

Forensic audit From Page 25

counting investigation of the financial activities of the Public Works Department including reviewing internal control memos, general ledger data and developing an initial action plan. • met with several employees at the Public Works Department to gather information as to procedures and records maintained. • performed detailed testing of Public Works Department revenue and receipts. • obtained information on processing of Public Works purchases and expenditures, and began detailed testing of selected purchases

adjustments that former General Manager John Bailey had agreed to in a letter to MOC. “The GM letter just highlights the agreement reached with MOC per certain sections of the contract. For example, section 4.5 reads ‘Owner shall supply and pay the cost of the utilities used by Manager in the operation of the premises. Owner shall pay the service charges for telephone services,’” he said. “However, instead of fully exq

26 Ocean Pines PROGRESS

and expenditures. Then in December of last year, Phillips posted another update. He said that Gross Mendelsohn: • performed testing on selected expenditures during the year ended April 30, 2018 based on purchase orders that originated in the Public Works department. • performed testing on Public Works department payroll transactions for selected pay periods during the years ended April 30, 2017 and 2018. • reviewed invoices and disbursement data on certain vendors used by the Public Works department. No updates are available on the OPA Web site after December of last year.

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OPA FINANCES Ortt Companies From Page 26 cluding these expenditures from the budget and profit bonus calculations (which would have more negatively affected the OPA P&L), it was agreed to by both parties that these line items would be “capped” at the expenditure amounts budgeted for the year,” Phillips continued. “So the majority of the $54K adjustment represents the difference between certain FY19 budgeted line items excluded per the contract and the actual expenditures incurred.” Phillips acknowledged that placing all the management fees incurred by the OPA in the Yacht Club financials, as opposed to allocating some of them to the Beach Club, cost the OPA roughly $9,000 more than if the management fees had been split. Splitting the fees would have wiped out the $9,000 Beach Club budget bonus to be paid to the MOC. “The rationale for placing the management fees all within the YC is that it followed the budget cost allocation methodology, which was the basis for the bonus calculations that were derived. This decision was mutually agreed to by both parties to the contract earlier in the year pri-

May 2019 Ocean Pines PROGRESS

or knowing how the final numbers would come in,” Phillips said in his email. Another explanation that has been given is that the previous inhouse food and beverage manager,

who had responsibility for both the Yacht Club and Beach, was paid for entirely out of the Yacht Club budget. “But yes, if the decision was made to allocate a portion of the manage-

ment fee (even though it was not budgeted there) to the Beach Club, then this would have eliminated the budget bonus applicable to the Beach Club by approximately $9K,” Phillips said.

28 Ocean Pines PROGRESS

OPA FINANCES

May 2019

OPA records $16,518 operating fund surplus in March

By TOM STAUSS Publisher he Ocean Pines Association is closing in on a positive year financially. The OPA recorded a $16,518 operating fund variance in March, and with one month remaining in the fiscal year, the operating fund surplus for 2018-19 has increased to $200,566. Much depends on April. Financial results for April should be reported by the third week of May, but historically the results have been delayed as the finance department and auditors make adjustments to the final monthly tally. The annual audited statement also can differ from the April report because of other adjustments made by the auditors. The $200,566 positive operating fund variance in March results from revenues over budget by $64,300 and total expenses over budget by $47,782. The monthly financials were produced by Director of Finance Steve Phillips and are availq

Source: Director of Finance Steve Phillips

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OPA FINANCES March financials

May 2019 Ocean Pines PROGRESS

From Page 28 able on the OPA Web site for viewing, under forms and documents, monthly financials. The positive yearly variance through March resulted from revenues over budget by $576,159, total expenses over budget by $356,477, and new capital expenditures (treated as operating expenses) over budget by $19,116. With new capital expenditures excluded, the departmental summary for the month shows a year-to-date operating fund surplus of $219,682. Among amenity departments, only Aquatics reported financial results better than budget in March. Aquatics, while losing $31,363, exceeded budget by $21,483. For the year, Aquatics is in the black by $171,597, ahead of budget by $7,700. Recreation and Parks had another solid month, ahead of budget by $33,181. The Yacht Club lost money in March but improved upon Februree-

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OPA FINANCES

May 2019

Community donations

The Women’s Club of Ocean Pines recently announces the award of $1,450 in community donations for 2019. Organization receiving donation included the Ocean Pines Volunteer Fire Department (OPVFD), Coastal Hospice, Ocean Pines Parks & Recreation Department, Worcester County Veterans Memorial, and the Mid-Atlantic Symphony student outreach program. Monies are raised by the membership during the year through fundraisers. Pictured are WCOP officers officers Irene Daly, treasurer, and Donna McCracken, president), with representatives from the five organizations.

March financials er solid month, ahead of budget by $

From Page 29 The Yacht Club is in the red by $31,654 for the first 11 months of the fiscal year, but that’s ahead of budget by $78,626. A year ago, the loss was $583,210 through March, meaning there’s been a year-over-year swing of a little more than $550,000 in Yacht Club performance. Golf operations performed close to budget in March, losing $67,436. Golf missed its budget by $3,356. For the year, golf is in the red

by $107,058 through March but is ahead of budget by $23,504. The Tern Grille lost $7,596 for the month, under budget by $9,958. For the year through March, the loss is $4,606 and the negative variance to budget is $4,673. Pickleball and platform tennis had results for the month that closely conformed to budgetary expectations, while tennis missed its budget by $1,270. Through March, tennis’ negative variance to budget was $4,636. Pickleball is ahead of budget by $1,503,

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while platform tennis is behind budget by a mere $181. In his monthly budget summary delivered at the May 4 board of directors meeting, OPA Treasurer and Interim General Manager John Viola pointed out that the general manager’s office produced a negative operating fund variance of $61,204, which he attributed to consulting expenses that were greatly in excess of budget. Reserve summary -- As of March 31, the OPA had $9.24 million in reserve accounts, comprised

of $5.57 million in the replacement reserve, $2.52 million in the bulkhead and waterways reserve, and $1.14 million in the roads reserve, little changed from February. Balance sheet -- The OPA balance sheet as of March 31 showed $8.89 million in short-term investments, compared to $8.06 million year-over-year. Operating cash of $1,681,466 compared to $1.09 million year-over-year. Total assets were $42.8 million, balanced by $11.69 million in liabilities and $31.13 million in owners equity.

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May 2019 Ocean Pines PROGRESS

Petition drive From Page 1

petitioning for and then holding a community referendum on the golf clubhouse was not “about getting out of the golf business.” At the same time, he said one of his purposes is to educate the community on the costs of being in the golf business, which he said over the past ten year amount to $2.2 million before depreciation in golf operating losses and $6.4 million if depreciation is included. But Trendic said that over the past ten years, the OPA has spent $6.2 million in golf-related capital projects, a number he has been able to extract from monthly financial reports. rather than audited financial statements, which he suggested is a real defect in the OPA’s reporting of financial results. The total of $12.6 million in golfrelated costs equates to $1,490 per property, Trendic said, Depreciation, not the best understood concept in the OPA’s accounting methodology, is a real

cost imposed on property owners through the annual lot assessment, currently about $1.7 million as reflected in the annual contribution to the OPA’s replacement reserve fund. The replacement reserve is the funding source for the golf clubhouse and two additional capital projects approved by the board last month, a replacement cart barn and the expansion of the Administration building to accommodate a larger and modernized space for the Ocean Pines Police Department. Funding depreciation on OPA assets is the primary method the OPA uses to collect funds to pay for replacement capital expenditures. Trendic’s petitions do not target the cart barn or OPPD projects. While Trendic says he does not support closing the golf course or converting it some other use, he has long been on record as supporting the possibility of leasing it out, citing a group of investors led by former OPA Bob Haley who might be interested in discussing the lease option with the board. In a recent interview with the

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Progress, Trendic said that if the petition drives successfully raise the required number of signatures to force board action, that would make a strong case for keeping START active as a watchdog group. “Too often this board has ignored OPA bylaws and other organizational documents in making its decisions,” he said, citing as a recent example the board’s decision to dismantle all remants of a crabbing pier in the Whitetail Sanctuary. “Nowhere do our governing documents give that authority to the board, which is given the responsibility of maintaining assets, not eliminating them.” Trendic said in some respects START is a successor to STOP, an organization found more than a decade ago by former Director Marty Clarke. Clarke and STOP are not taking a public position on the START petitions. Clarke has said it’s time for others to take up the role of watchdog. It was Clarke and STOP who led a successful petition drive in the mid-2000s to stop an expensive Community Center project on OPA-

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owned property on Route 589. In addition to the petition drives, Trendic is asking supporters of START “to show their support in other ways as well. Please consider writing to the Board of Directors (directors@oceanpines. org) expressing your views and concerns. Talk to your neighbors, friends, relatives in OP that may not be as up on the issues as are you. Write letters to the editors of local newspapers. Do whatever you can to get the word out - that we are no longer willing to sit back while as little as four board members can authorize to spend millions of our assessment dollars in a single year. He also is asking “everyone willing to help with obtaining petition signatures, please contact me promptly.” Trendic said that one volunteer came away from a recent event at the racquet sports complex with everyone signing a petition. “The support seems to be there for what we’re doing,” he said. “I’m optimistic we’ll have the names that we need.”

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CAPTAIN’S COVE

May 2019

Investor targets Captain’s Cove for new home construction Realtor says prices in $160,000 to $190,00 range are the ‘sweet spot’ for home sales in Captain’s Cove By TOM STAUSS Publisher aptain’s Cove association President Jim Silfee made some news at the last Board of Directors meeting in March, and hardly anyone noticed. He announced that the Cove and the Environmental Control Committee are anticipating a significant number of new home applications in the near future “from a new builder in Section One.” He didn’t offer any additional details. The Progress has learned that the investor/builder who will focusing on new home construction in Section 1 initially but also Sections 7 and 10 is Ray Jackson, a Baltimore-based investor/developer who will be working with an as yet unidentified builder or builders. Jackson is the principle owner of Stonewall Capital. He reportedly will be building homes on speculation but also probably will be offering lot/home packages as other builders in the Cove do. Section 1 has been improved over the past year and before with extensive improvements in water and sewer infrastructure, which makes building homes on lots easier. No percolation tests are needed to determine whether a lot is buildable if public sewer is available. The Progress has learned that

Memorial Day ceremony

The Worcester County Veterans Memorial Foundation will be hosting its annual ceremony honoring those who made the ultimate sacrifice, local Gold Star mother and American former prisoners of war. The ceremony will be held Monday, May 27, at 11 a.m. at the memorial site on Rte. 589, between Cathell and Manklin Creek Roads. The ceremony will feature patriotic music and pageantry. Jack Caldwell will be the Master of Ceremonies. Music will be provided by Frank Nanna and the WWIIunes, featuring Todd Crosby. Randy Lee Ashcraft and the Delmarva Chorus will also perform. Golf carts will be circulating from tent to parking lot for those needing some assistance. Attendees are asked to

Jackson has already signed a lease for the downstairs of the real estate building located just inside the main entrance into Captain’s Cove. The building will be shared with Hall Realty, which will occupy the building’s second floor. The building is owned by a company in which Cove association president Jim Silfee is a principle owner. Jackson or one of his entities reportedly has acquired about 50 building lots mostly in Section One where lot/new home packages can be sold. About half of the lots were acquired from the Cove’s declarant/ developer, with the other half purchased from individual owners. In an May 9 email to the Progress, Silfee provided additional detail on Jackson’s plans for Captain’s Cove. “Ray Jackson of Stonewall Capital, LLC out of the Baltimore area has acquired in the range of 50 building lots within Captain’s Cove to date per the best of my knowledge. 30 of these lots were purchased from CCG Note, LLC & CCG Land, LLC, while the remainder were purchased from private individuals. It is Mr. Jackson’s plan to develop these lots for sale via his vast network of local, regional and national residential homebuilders,” Silfee said. The Cove president added that Jackson “is currently under contract on the entirety of CCG Note, LLC &

CCG Land, LLC’s holdings in Sections 1, 7 & 10. W we are expecting him to take down all of these lots on a takedown schedule moving forward over the next several years.” That would be roughly 200 lots in the developer’s inventory, according to Tim Hearn, former Cove association president and currently a Cove board member. In an May 9 telephone interview with the Progress, Hearn said that the revelation that the developer has a contract to sell its holdings in Captain’s Cove proves critics wrong. Several years ago they claimed that principles in CCG Note and related entitites had made a poor investment and wouldn’t be able to sell their lots in a sluggish market, Hearn said. Now the same critics are unhappy that Jackson will be receiving the same exemption from annual association dues that the original developer established back in the 1970s and which was codified in the 2012 settlement agreement. Silfee confirmed that in his email to the Progress. “Given the language of the 2012 Settlement Agreement and because ... Jackson is under contract on the entirety of the Note & Land holdings in Sections 1, 7 & 10, he is able to enjoy a dues exemption status with respect to his holdings in these

HAPPENINGS bring a lawn chair, as seating under the tent is limited. The ceremony will move to the Ocean Pines Community Center in the event of inclement weather.

Garden tour and luncheon

The Ocean Pines Garden Tour and Luncheon on Thursday, June 13, will include nine gardens and is scheduled from 9 a.m. to noon, with lunch at the Ocean Pines Yacht Club beginning at 12:15 p.m. Directions for the garden locations will be available at the Yacht Club at 9 a.m. on June 13. Three menu choices for the luncheon are: fish tacos - fresh white fish, pico de gallo, shredded cabbage, sour cream on corn tortilla and corn salad; hot chicken parmesan sandwich and side Caesar

salad; and strawberry salad - spring mix, goat cheese, almonds and chef-made vinaigrette with tomato basil soup. The luncheon includes dessert, coffee, tea or non-alcoholic beverage. A cash bar with specially priced signature drink, Top Hat spritzer, will be available. Cost of the luncheon and tour is $35. Tour-only is $15, with tour-only tickets available at the Yacht Club on June 13. RSVPs are due May 30 to Marian at 410-208-2508. Checks payable to OPGC should be mailed to 29 Wood Duck Drive, Ocean Pines, MD 21811. Indicate on the check your menu selection.

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The Women’s Club of Ocean Pines

three sections only,” Silfee said. “The language governing this is clear in the 2012 Settlement Agreement despite some recent objections from some past Board members who actually approved the agreement.” Hearn said that lots formerly owned by individuals, that may or may not have been paying annual dues to the association prior to their sale to Jackson, would also be exempt from annual dues. “The association will take a hit, but it will be a minor one in a $5 million budget,” Hearn said, with a revenue loss less than $20,000 annually attributable to lots that may have been dues-paying previously. Hearn said that some of the lots acquired by Jackson probably had not been dues-paying, but that Jackson would have been required to pay off the arrearages to obtain clear title to the lots. Once new homes are built and sold to new buyers, the properties will become dues-paying in perpetuity, Hearn said, with owners who use the amenities. Meanwhile, home sales in Captain’s Cove have been doing well, both resales of existing homes and new homes, according to Hall Realty agent Cindy Welsh. Lot sales have been sluggish, as everyone knows, but Welsh said the market remains brisk for J&A Builders, which she represents, and Grace Contstruction, two of the leading builders active in Captain’s Cove for many years. “It’s OK if we have another builder who is active in Captain’s Cove, especially if he has housing available in the $160,000 to $190,000 range,” she said, noting that this To Page 34 will host a game party on Thursday, June 6, from 10 a.m to 2 p.m. at the Dunes Manor Hotel in Ocean City. The club invites gamers to organize a table to play a game or cards with friends. The club will help individuals find a table that needs a player. Raffles will be added to the mix of games and cards. Munchies and beverages will be available during play and a lunch entree will be served from a choice of three selections. The cost is $30 per person payable to WCOP. This is a fundraiser to benefit the club’s high school scholarship and community donations program. For reservations, contact Kay Hickman at 410-600-0552, 443-397-6121, or by email at soonerkay@gmail.com.

May 2019 Ocean Pines PROGRESS

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$1,500 11/58 Wooded, Cert Letter $1,500 11/87 Cleared, Cert Letter $1,850 4/2313 Wooded, Cert Letter $2,000 2/377 Cleared, Secondary System $1,850 6/15 Wooded, Cert Letter $4,000 2/350 Cleared, Septic Approved $2,000 11/77 Wooded $5,000 2/134 Wooded, Septic Approved $2,000 8/43 Mostly Cleared, $6,000 2/206 Cleared,Cert SepticLetter Approved $2,000 2/90 Wooded $2,000 7/181 Cleared $2,000 7/268 Cleared $2,000 10/119 Mostly Cleared $2,000 6/24 Wooded, Cert Letter $2,000 4/2206 Wooded, Cert Letter $2,000 4/2207 Wooded, Cert Letter $2,500 5/20 Wooded $3,000 5/82 Wooded $4,900 1/1055 Wooded, W&S, Bay Views $5,000 3/1623 Cleared, W&S, Canal Views $5,500 3/1622 Cleared, W&S, Canal Views $10,000 1/1261 Cleared, W&S, Bay View $11,000 1/1258 Cleared, W&S, Bay View Future Development - $1. 16/2

34 Ocean Pines PROGRESS

CAPTAIN’S COVE

May 2019

New home investor From Page 32 range is where most of the resales and new home constructions occur. “Things tend to slow down when the price hits $200,000,” she added. Hearn said he didn’t dispute Welsh’s assessment of the current state of the market, but he said he thought the Jackson investment in the community would eventually

boost typical prices to more than $200,000. Last year, there were about 60 home sales in Captain’s Cove, not counting some sales that might have occurred without the involvement of a real estate agent, she said. This compares to about 40 lot sales, she said, which shows where the real estate market in Captain’s Cove is currently. In addition to a strong resale and

new home market, Welsh said that the rental business for year-round rentals remains strong as well, so long as owners of rental property lease their properties in the March through October timeframe. “Winter is not the best time to be renting property in the Cove,” she said. “But renting in the prime season produces renters,” with monthly rents in the $1000 to $1100 range

fairly typical, she said. Affordability and the availability of a wide range of amenities that can’t be found anywhere else in Accomack County is the reason both buyers and renters seek out Captain’s Cove, she said. New activity at the nearby Wallop’s Island rocket facility in recent years has not produced a lot of new buyers of homes in Captain’s Cove, Welsh said, but mostly renters.

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J&A Builders specializes in spec home sales and new home construction. All of our models are “stick built” and feature a first floor master suite with standard appliance package, and Low-E windows. These are a few of our models we can build on your lot. Prices DO NOT include the the lot. Homes are of similar design and may have upgrades. Prices good for Captain’s Cove, Greenbackville, Va. Only. MHBR #4790 PRICES SUBJECT TO CHANGE

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CAPTAIN’S COVE

May 2019 Ocean Pines PROGRESS

FORECLOSURE SALE OF REAL ESTATE IN CAPTAIN’S COVE

May 17, 2019, 10 AM

To be held in the Community Room in Captain’s Cove located at 3370 Captain’s Corridor, Greenbackville, VA 23356

The following properties will be auctioned: Section/Lot: 4-2314, Captain’s Cove Tax Map No. 005A40100231400 Assessed Value: $108,800

Section/Lot: 2-0453, Captain’s Cove Tax Map No. 005A20100045300 Assessed Value: $4,300

Section/Lot: 15-0155, Captain’s Cove Tax Map No. 005A80200015500 Assessed Value: $900

Section/Lot: 17-0079, Captain’s Cove Tax Map No. 005A90200007900 Assessed Value: $900

Section/Lot: 18-0063, Captain’s Cove Tax Map No. 005A90100006300 Assessed Value: $900

Section/Lot: 18-0138, Captain’s Cove Tax Map No. 005A90100013800 Assessed Value: $900

Section/Lot: 1-0886, Captain’s Cove Tax Map No. 005A10100088600 Assessed Value: $2,000

Section/Lot: 3-1410, Captain’s Cove Tax Map No. 005A30100141000 Assessed Value: $154,900

Section/Lot: 16-0011, Captain’s Cove Tax Map No. 005A90300001100 Assessed Value: $900

Section/Lot: 17-0080, Captain’s Cove Tax Map No. 005A90200008000 Assessed Value: $900

Section/Lot: 18-0065, Captain’s Cove Tax Map No. 005A90100006500 Assessed Value: $900

Section/Lot: 18-0143, Captain’s Cove Tax Map No. 005A90100014300 Assessed Value: $900

Section/Lot: 1-0888, Captain’s Cove Tax Map No. 005A10100088800 Assessed Value: $2,000

Section/Lot: 3-1591, Captain’s Cove Tax Map No. 005A30100159100 Assessed Value: $2,000

Section/Lot:16-0029, Captain’s Cove Tax Map No. 005A90300002900 Assessed Value: $900

Section/Lot: 17-0084, Captain’s Cove Tax Map No. 005A90200008400 Assessed Value: $900

Section/Lot: 18-0075, Captain’s Cove Tax Map No. 005A90100007500 Assessed Value: $900

Section/Lot: 18-0147, Captain’s Cove Tax Map No. 005A90100014700 Assessed Value: $900

Section/Lot: 1-1069, Captain’s Cove Tax Map No. 005A10100106900 Assessed Value: $2,000

Section/Lot: 4-1946, Captain’s Cove Tax Map No. 005A40100194600 Assessed Value: $2,500

Section/Lot: 16-0062, Captain’s Cove Tax Map No. 005A90300006200 Assessed Value: $900

Section/Lot: 17-0110, Captain’s Cove Tax Map No. 005A90200011000 Assessed Value: $900

Section/Lot: 18-0084, Captain’s Cove Tax Map No. 005A90100008400 Assessed Value: $900

Section/Lot: 1-1070, Captain’s Cove Tax Map No. 005A10100107000 Assessed Value: $2,000

Section/Lot: 4-2314, Captain’s Cove Tax Map No. 005A40100231400 Assessed Value: $108,800

Section/Lot: 16-0085, Captain’s Cove Tax Map No. 005A90300008500 Assessed Value: $900

Section/Lot: 17-0122, Captain’s Cove Tax Map No. 005A90200012200 Assessed Value: $900

Section/Lot: 18-0086, Captain’s Cove Tax Map No. 005A90100008600 Assessed Value: $900

Section/Lot: 1-1098, Captain’s Cove Tax Map No. 005A10100109800 Assessed Value: $2,500

Section/Lot: 14-0006, Captain’s Cove Tax Map No. 005A80100000600 Assessed Value: $900

Section/Lot:16-0096, Captain’s Cove Tax Map No. 005A90300009600 Assessed Value: $900

Section/Lot: 17-0125, Captain’s Cove Tax Map No. 005A90200012500 Assessed Value: $900

Section/Lot: 18-0095, Captain’s Cove Tax Map No. 005A90100009500 Assessed Value: $900

Section/Lot: 1-1107, Captain’s Cove Tax Map No. 005A10100110700 Assessed Value: $2,500

Section/Lot: 14-0081, Captain’s Cove Tax Map No. 005A80100008100 Assessed Value: $900

Section/Lot: 16-0119, Captain’s Cove Tax Map No. 005A90300011900 Assessed Value: $900

Section/Lot: 17-0126, Captain’s Cove Tax Map No. 005A90200012600 Assessed Value: $900

Section/Lot: 18-0096, Captain’s Cove Tax Map No. 005A90100009600 Assessed Value: $900

Section/Lot: 1-1170, Captain’s Cove Tax Map No. 005A10100117000 Assessed Value: $57,500

Section/Lot: 14-0103, Captain’s Cove Tax Map No. 005A80100010300 Assessed Value: $900

Section/Lot: 16-0132, Captain’s Cove Tax Map No. 005A90300013200 Assessed Value: $900

Section/Lot: 17-0128, Captain’s Cove Tax Map No. 005A90200012800 Assessed Value: $900

Section/Lot: 18-0101, Captain’s Cove Tax Map No. 005A90100010100 Assessed Value: $900

Section/Lot: 1-1197, Captain’s Cove Tax Map No. 005A10100119700 Assessed Value: $60,900

Section/Lot: 14-0120, Captain’s Cove Tax Map No. 005A80100012000 Assessed Value: $900

Section/Lot: 16-0139, Captain’s Cove Tax Map No. 005A90300013900 Assessed Value: $900

Section/Lot: 17-0154, Captain’s Cove Tax Map No. 005A90200015400 Assessed Value: $900

Section/Lot: 18-0112, Captain’s Cove Tax Map No. 005A90100011200 Assessed Value: $900

Section/Lot: 2-0139, Captain’s Cove Tax Map No. 005A20100013900 Assessed Value: $4,300

Section/Lot: 14-0152, Captain’s Cove Tax Map No. 005A80100015200 Assessed Value: $900

Section/Lot: 16-0146, Captain’s Cove Tax Map No. 005A90300014600 Assessed Value: $900

Section/Lot: 18-0021, Captain’s Cove Tax Map No. 005A90100002100 Assessed Value: $900

Section/Lot: 18-0115, Captain’s Cove Tax Map No. 005A90100011500 Assessed Value: $900

Section/Lot: 2-0144, Captain’s Cove Tax Map No. 005A20100014400 Assessed Value: $4,300

Section/Lot: 14-0155, Captain’s Cove Tax Map No. 005A80100015500 Assessed Value: $900

Section/Lot: 17-0020, Captain’s Cove Tax Map No. 005A90200002000 Assessed Value: $900

Section/Lot: 18-0022, Captain’s Cove Tax Map No. 005A90100002200 Assessed Value: $900

Section/Lot: 18-0122, Captain’s Cove Tax Map No. 005A90100012200 Assessed Value: $900

Section/Lot: 2-0145, Captain’s Cove Tax Map No. 005A20100014500 Assessed Value: $4,300

Section/Lot: 15-0003, Captain’s Cove Tax Map No. 005A80200000300 Assessed Value: $900

Section/Lot: 17-0030, Captain’s Cove Tax Map No. 005A90200003000 Assessed Value: $900

Section/Lot: 18-0032, Captain’s Cove Tax Map No. 005A90100003200 Assessed Value: $900

Section/Lot: 18-0123, Captain’s Cove Tax Map No. 005A90100012300 Assessed Value: $900

Section/Lot: 2-0233, Captain’s Cove Tax Map No. 005A20100023300 Assessed Value: $2,500

Section/Lot: 15-0008, Captain’s Cove Tax Map No. 005A80200000800 Assessed Value: $900

Section/Lot: 17-0033, Captain’s Cove Tax Map No. 005A90200003300 Assessed Value: $900

Section/Lot: 18-0046, Captain’s Cove Tax Map No. 005A90100004600 Assessed Value: $900

Section/Lot: 18-0125, Captain’s Cove Tax Map No. 005A90100012500 Assessed Value: $900

Section/Lot: 2-0319, Captain’s Cove Tax Map No. 005A20100031900 Assessed Value: $4,300

Section/Lot: 15-0010, Captain’s Cove Tax Map No. 005A80200001000 Assessed Value: $900

Section/Lot: 17-0068, Captain’s Cove Tax Map No. 005A90200006800 Assessed Value: $900

Section/Lot: 18-0050, Captain’s Cove Tax Map No. 005A90100005000 Assessed Value: $900

Section/Lot: 18-0128, Captain’s Cove Tax Map No. 005A90100012800 Assessed Value: $900

Section/Lot: 2-0328, Captain’s Cove Tax Map No. 005A20100032800 Assessed Value: $4,300

Section/Lot: 15-0080, Captain’s Cove Tax Map No. 005A80200008000 Assessed Value: $900

Section/Lot: 17-0073, Captain’s Cove Tax Map No. 005A90200007300 Assessed Value: $900

Section/Lot: 18-0051, Captain’s Cove Tax Map No. 005A90100005100 Assessed Value: $900

Section/Lot: 18-0131, Captain’s Cove Tax Map No. 005A90100013100 Assessed Value: $900

Section/Lot: 2-0424, Captain’s Cove Tax Map No. 005A20100042400 Assessed Value: $4,300

Section/Lot: 15-0097, Captain’s Cove Tax Map No. 005A80200009700 Assessed Value: $900

Section/Lot: 17-0077, Captain’s Cove Tax Map No. 005A90200007700 Assessed Value: $900

Section/Lot: 18-0053, Captain’s Cove Tax Map No. 005A90100005300 Assessed Value: $900

Section/Lot: 18-0137, Captain’s Cove Tax Map No. 005A90100013700 Assessed Value: $900

TERMS: Minimum Bids will be announced prior to the start of the auction on the date of sale. Announcements made at auction time take precedence over any print, electronic, or verbal information, including but not limited to the Minimum Bid. Successful bidder will be required to deposit with Trustee a deposit (non-refundable) in an amount equal to 10% of successful bid in cash or certified funds at time of sale, with the closing to occur within thirty days of the date of said sale. Written one-price bids will be accepted for any of the properties pursuant to the terms set forth in Va. Code § 55-516. There is no warranty relating to right, title, interest, or the like in this disposition. Property is being sold pursuant to Va. Code § 55-516, and title will be conveyed pursuant to statute and subject to all liens or encumbrances as provided in said statute. All information for review by appointment only. Notwithstanding the Minimum Bids announced at the time of sale, the Trustee reserves the right to accept and/or reject all offers. Time is of the essence. Other conditions may be announced at the sale. TRUSTEE: Pender & Coward, P.C., 222 Central Park Ave., Virginia Beach, VA Phone: (757) 490-6261 Email: capcove@pendercoward.com

36 Ocean Pines PROGRESS

May 2019

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OPINION

May 2019 Ocean Pines PROGRESS 37

COMMENTARY Board correctly decided crabbing pier issue (more or less) Legal quandaries remain, however, and crabbing pier supporters may have ample grounds to sue. But will they? walked or rode their bikes to the crabbing pier in the Sanctuary, the hike or bike ride to the Swim and Racquet Club will be too far to be realistic. Kids on the far Soutside without a driver’s license will no longer have a simple, accessible way to while away a relaxing summer day. As regrettable as it is to lose this amenity, the board shouldn’t be faulted for listening to Sanctuary residents opposed to the rebuilding of the crabbing pier at its former location. Over the many months when this issue was fully litigated at various board meetings, with both opponents and proponents given a fair opportunity to make their arguments, it was clear the board was listening. At one point, the board even passed a motion instructing staff to issue an RFP (request for proposals) for a replacement crabbing pier on the site of the old crabbing pier. Two proposals, one for $98,700 and the other for $113,500, were submitted but for some reason never were brought to the board for review and possible action. Meanwhile, though, two proponents of rebuilding the pier at its current location, or at least getting bids, are no longer on the board. Slobodan Trendic and Ted Moroney both resigned for reasons having nothing to do with the crabbing pier. Their departures created a vacuum that one OPA director, Steve Tuttle, was eager to fill to fill. His motion to dismantle all remnants of the His motion to dismantle all remants of the old pier from the Sanctuary passed with no dissent. Clearly, there was no appetite among the

Slamming the breaks on board spending

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

PUBLISHER/EDITOR Tom Stauss tstauss1@mchsi.com 443-359-7527

Advertising Sales Frank Bottone 410-430-3660

CONTRIBUTING WRITER Rota Knott InkwellMedia@comcast.net 443-880-1348

n my years here, I’ve seen a number of examples when the referendum situation has been abused. Invariably, projects in Ocean Pines get put into motion by a group of full-time residents because they are able to see the need or desire. A coalition gets formed and the vocal support begins. Past GMs and boards seem helpless to stem the tide of emotion that manifests itself at the meetings to determine the real need vs. the real desire and usually “the entitled” win out. The only reasonable brake on this movement is a lower referendum amount. It would force boards to be more forthcoming on the reasons for capital expenditures.. The present situation at the Country Club is a perfect example of the lack of discipline in this and prior boards. The building has been in dire need of rehabilitation of one

hold-over directors and the short-term appointees to continue the debate. At some point, the question needs to be called, and a board majority with Tuttle in the lead was ready to decide. They came down on the side of residents who argued persuasively that their enjoyment of their own properties and their property values were adversely affected by the presence of latenight partiers who were not deterred by the lack of sanitary facilities or parking. While it was not clear whether they constituted a clear majority of Sanctuary residents, they represented a significant number, and they did show up at a board meeting that gave all property owners in Ocean Pines the preferred three days notice of potential board action. Meanwhile, Sanctuary and nearby residents who feel aggrieved by the board action may have legal recourse, as the agreement in which the OPA more than 15 years ago accepted conveyance of the crabbing pier remains in force. Are its provisions, particularly as it relates to the OPA’s responsbility to maintain the amenity, enforceable? Can the OPA board unilaterally abrogate an agreement that a prior board ratified? Is there a critical mass of Sanctuary and nearby residents willing to hire an attorney to fight this board action in a court of law? Clearly, the board is betting that a majority of Sanctuary residents don’t want to see the crabbing pier rebuilt at its current location and that the minority who do will acquiesce, albeit reluctantly, to majority will. -- Tom Stauss

LETTER sort or another for years, but the can has been continually kicked down the road. About four years ago, a board meeting there had board members sitting in coats on a winter day. So after a while, it became the “should we repair or replace” discussion. For those of you with short memories, a similar discussion brought us the new Yacht Club in all its glory and expense and hidden costs. This time, a previous board made the decision to rehabilitate the present structure. Seemed prudent at the time until a disagreement over bidding procedures and contractors among other matters brought the project to a halt. The stalemate that developed between board members resulted in costs to protect the partially finished building and then finally to abandon the project, half

finished and $500,000 invested. Partially completed buildings that are unoccupied deteriorate. Apparently this one has, but to what point. Finish it for another $800,000 to $900,000 or build anew? By this time, the new and shiny discussion has become the dominant theme. The new building will be half the size of the old one and so will pretty much be a single purpose, one-story golf oriented building. The building will cost at least $1.6 million or so we are told. A number that is seriously close to the $1.8 million that requires a referendum of the members. The build anew faction managed to pass the motion to do this at a not particularly well-publicized board meeting but somehow golf members managed to be present in force and vocal. Motion passed. And while they were at it, the board passed another couple of spending bills that rounded q

eing an Ocean Pines Association director will on occasion mean that you’re placed in an impossible, no-win situation, or as it’s sometimes called, damned if you do, damned if you don’t. That’s more or less what the Board of Directors faced at its May 4 monthly meeting when it decided to eliminate the remnants of the poorly maintained crabbing pier located in the heart of the Whitetail Sanctuary. As an alternative, the board has authorized OPA management to investigate the possibility of building a new crabbing pier at the Swim and Racquet Club campus, near the site of another pier that, in the early days of Ocean Pines, moored small boats. What happened to that pier has faded in the mists of time, but it could have been neglect, as that original boat dock hasn’t been seen in decades. Small boat dockage is available at the S&R off a deck that is attached to one side of the swimming pool complex, so it’s conceivable that became the preferred site over the pier that at one time jutted out into the river. The replacement crabbing pier site, assuming it passes muster with county regulators, would have some advantages over the controversial crabbing pier in the Sanctuary. Those advantages include sufficient parking (at least most of the time), bathroom facilities, lacking at the Whitetail Sanctuary, and police services in close proximity, also lacking at the Whitetail Sanctuary. These advantages, which loom large, are partially offset by a key disadvantage: The far Southside will lose, or is about to finally lose, an amenity that many people enjoyed. For those who

38 Ocean Pines PROGRESS

OPINION

May 2019

Colette Horn proves prescient on GM outsourcing

t turns out that OPA Director Colette Horn’s skepticism about outsourcing the GM position to national HOA management firms was on the mark. The five proposals submitted in response to an RFP (request for proposals) and opened May 3 under the supervision of Interim General Manager John Viola all exceed what the Ocean Pines Association has paid its general managers over the years, some by significant margins. This is pretty much what Horn predicted in the weeks before and after the OPA issued the outsourcing RFP. She deserves a shout-out for her prescience. Based on the OPA’s experience soliciting outsourcing proposals from management firms to take over financial management operations in Ocean Pines, she more or less predicted the same would happen with the GM position. It has. The five proposals, detailed elsewhere in this edition of the Progress, deserve the full vetting and “leveling” that Viola and a review team will do before a recommendation will be made on how the board should proceed. If a decision to abandon the outsourcing model is the result

LIFE IN THE LIFE INPINES THE PINES

then Colby Phillips, the OPA’s newly minted director of operations, is the An excursion through the curious cul-de-sacs An excursion through theby-ways curious and by-ways and cul-de-sacs obvious choice for GM. of Worcester County’s County’s most densely community. of Worcester mostpopulated densely populated community. Does Viola actually want the job By TOM STAUSS/ By TOM Publisher STAUSS/Publisher or can he be coaxed into taking it? That, or course, remains to be seen, of this process, it will hardly be a volunteer role as interim GM. but it would certainly save the board What would take to lure him out surprise. a lot of time and effort conducting a of retirement or semi-retirement to Simply put, the Board of Directors search for a replacement GM if he take on the role permanently? should not and will not approve the did. Whatever his minimal requirehiring of an outside management The board has opted not to go the company that significantly increases ments, the board ought to bend over traditional route of hiring a national backwards to accommodate, to find a the cost of the GM position over head-hunter company to aid in the way to make it happen. current expenditures. search. The directors will be solicitHis financial expertise, his It shouldn’t take too long for ing applicants through trade publiknowledge of Ocean Pines, the that realization to come down like cations and local media. esteem with which department a ton of bricks on some directors, But the solution with the greater who seemed hopeful that this was heads regard him are all reasons likelihood of success lies in hiring why appointing him without the a solution that could work for the from within. Interim in front of the title would be OPA. Hope springs eternal, but in the end cold reality governs. What seemed like a plausible solution for the OPA simply isn’t, unless -- and this a huge caveat -- one or more of the bidders significantly modifies their proposals to bring the cost down out of the stratosphere. If they’re unwillling to do that, Viola and the board will simply have to move on and find an acceptable solution. It could already be staring them in the face. Viola by all accounts has gotten off to a strong start in an unpaid

an inspired decision. Of course, there isn’t a permanent position in Ocean Pines -- never has been, never will -- and Viola’s tenure, too, would have an end date. But it could be pushed off one, two, three or four years in the future to allow department heads under him to incubate and obtain a smidgeon more seasoning before one of them fills his shoes. It should be obvious who the successor to Viola might be. She could handle the job today if push came to shove. If a deal can’t be made with Viola,

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Slamming the breaks From Page 37

the association’s capital expenditure obligation at about $3 million total. All without the thought that some of this should go to referendum. Three separate projects, all under the $1.8 million allowed cap…no problem. The association members elect several new directors every year with high hopes that things will get better. Once elected, the board has pretty much free rein, governed only by the rules of order and the prohibition concerning the amount they can allocate for projects. The time has come to exert more discipline on future boards. The present board should support a referendum since they will soon be subject to the vagaries of future boards. And, after all, most of them were elected in rebuttal of the actions of previous board members. There should be a referendum to set the spending cap at $1 million. Referendum voting material should be included in the correspondence sent to all members with this year’s election material. This would be a referendum on how the association conducts its basic business. The cost to put this question before the membership should be borne by the association itself rather than pushing the burden of the usual ill-fated door-to-door solicitation of funds and signatures to a few motivated individuals. It really is time to get our house in order while the majority of people who own homes here can afford the cost. Ed Moran Ocean Pines

May 2019 Ocean Pines PROGRESS 39

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May 2019

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