November early december 2015 progress by Ocean Pines Progress

November - Early December 2015

www.oceanpinestoday.com

Vol. 11, No. 9

443-359-7527

www.issuu.com/oceanpinesprogress Commissioners refuse to endorse Showell elementary plan

THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY COVER STORY

County declines to support medical marijuana applicants Individual commissioners may decide to write personal letters of endorsement, but as a board and governmental entity, they opt to keep arm’s length from business people who want to take advantage of new state law By ROTA L. KNOTT Contributing Writer hile not objecting to the notion of a medical marijuana cultivation site in the county, the Worcester County Commissioners have declined to offer their support to individual applicants for the 15 state licenses that will become available later this month. The topic wasn’t listed on the commissioners’ agenda but at the close of their Nov. 3 meeting, Merry Mears, the county’s newly appointed economic development director, approached the commissioners with a request for a letter of support from one potential applicant for a medical marijuana grow license. The state law provides for 15 sites, which could be located anywhere in Maryland, where medical cannabis can be grown and processed. The law also authorizes 94 dispensaries statewide, two in each Senate district. “This is something that could be a little bit of an economic boon to the county,” she said. Mears, who was just promoted a few weeks ago from assistant to economic development director, said she has been approached during the last several months by numerous people who are considering applying for a license to medical marijuana. While many of them

how to best reach out to county officials, so far only one has formally asked for a letter of support to submit along with their application to the state. “They are conc e r n e d other counties are supportive and providing letters” of endorsement for companies interested in

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bringing grow and processing facilities to their jurisdictions, Mears said. Commissioner Bub Church said he too has been contacted by parties who intend to apply for a license to operate in Worcester County. He said he met with one applicant “reluctantly.” H e asked Mears for her recommendation regarding letters of support. “This is coming. This is a statewide initiative,” she responded, adding that with the licenses come opportunities for employment for local residents and revenue for the counties in which they ultimately locate. She said she would be inclined to provide the requested letter of support but added that as economic development director she is looking at the opportunity from a different perspective than elected officials. She acknowledged that “it is somewhat sensitive” politically and “not a lot of people have taken time to become educated on” the issue. Mears said the applicant who requested a letter of support is an established business person in the Snow Hill area and has an existing facility that To Page 9

The Worcester County Commissioners and the Board of Education have reached an impasse over the cost of constructing a new Showell Elementary School. Unable to persuade the school board to revise its student population and cost-perstudent per-square-foot estimates for the proposed new school to fit within the $38 million the county is willing to allocate for it, the commissioners have refused to sign off on supporting the project. The commissioners instead voted to send a letter to the state Interagency of School Construction detailing why they will not endorse the school system’s plan. ~ Page 4

Collins calls for fee reduction, renovation of Beach Club Ocean Pines Association Director Jack Collins is not exactly saluting and playing nice with OPA Treasurer Tom Terry’s proposed budget guidance to the general manager as he and his staff draft a new budget for 2016-17. Indeed, during the Board of Directors’ Nov. 29 monthly meeting, Collins read into the record a onepage document that while not expressly critical of budget criteria drafted by Terry, nonetheless took a few shots at the process used in its drafting. ~ Page 10

Directors still working on budget guidance to GM So much for arriving at “budget guidance” to the general manager in October, something that Ocean Pines Association director Bill Cordwell insisted on during the Board of Directors’ September meeting. With Cordwell out of town and unable to attend the board’s Oct. 29 regular meeting, the directors were unable to finalize instructions to the general manager as he and his staff work on preparing the 2016-17 draft budget for release in January. ~ Page 19

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November - Early December

WORCESTER COUNTY

November - Early December 2015 Ocean Pines PROGRESS

Peninsula Regional opens first building of Delmarva Health Pavilion Ocean Pines

eninsula Regional Medical Center (PRMC), in cooperation with Gillis Gilkerson, a leading Delmarva construction management firm, on Oct. 28 cut the ribbon to open the new Delmarva Health Pavilion Ocean Pines on Route 589 (Racetrack Road) near the North Gate of the Ocean Pines. A substantial crowd stopped by and toured the facility while enjoying refreshments, meeting building tenants and health care providers, and taking advantage of free flu shots aboard PRMC’s Wagner Wellness Van. Peninsula Regional is anchoring the complex in the 20,000-square-foot Building One. PRMC, which has been providing medical care in the community for over 25 years, has consolidated its Ocean Pines and Berlin family practices at the

new facility and is calling the practice Peninsula Regional Family Medicine Ocean Pines. Also joining the practice is PRMC’s FamilyLab, which is making the move from its previous location in Berlin. Peninsula Regional is also providing cardiovascular and pulmonary rehabilitation and adult fitness from its Guerrieri Heart & Vascular Institute team. This adult exercise program features a staff of exercise physiologists and nurses who ensure that each participant’s workout is tailored to their needs. Visitors will be able to fill prescriptions and pick up over-the-counter remedies and durable medical equipment at PRMC Home Scripts, a full-service community pharmacy that will offer a drive-through window and home delivery as well. The Junior Auxiliary Board Pines Café, similar to the Junior Board’s Café at PRMC, features snacks, refreshments, gifts and sandwiches, including its signature chicken salad. Gillis Gilkerson has plans for four

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4 Ocean Pines PROGRESS

WORCESTER COUNTY

November - Early December

Pine’eer Crafter of the month

Jane Wolnik has been selected as the Pine’eer Craft Club October Crafter of the Month. She enjoys sewing, quilting, crocheting, knitting and beading. Her items are on display at the craft and gift shop at the entrance to White Horse Park, Ocean Pines. The shop is open on Saturday from 10 a.m. to 3 p.m. and Sunday 11 a.m. to 3 p.m.

Medical complex From Page 3 additional buildings to be located at the Delmarva Health Pavilion Ocean Pines site. It anchors PRMC in Ocean Pines in a way that has effectively outflanked its local competitor, Atlantic General Hospital in Berlin, which for years had been looking at a parcel bordering the southside of Ocean Pines as an ideal location for a medical center complex. Delays in obtaining the requisite rezoning for the Southside parcel, controlled by local developer Jack Burbage, has effectively killed off plans for AGH to develop the Burbage site, which was rezoned B-2 commercial to accommodate the proposed medical complex.

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The Berlin hospital recently acquired a struggling shopping center complex on Route 589 on Herring Creek in West Ocean City in order to accommodate its staff. Peninsula Regional Health System President and CEO Dr. Peggy Naleppa calls the Ocean Pines complex tangible proof of her organization’s commitment to offering healthcare options close to patients’ home. “This is a continuation of Peninsula Regional’s commitment to population health management and to offering services for the entire Delmarva Peninsula in the locations that provide our communities exceptional healthcare options close to their homes, the greatest value for that care and the delivery of those services in the most appropriate setting,” she said. The new Ocean Pines healthcare facility is Gillis Gilkerson’s and PRMC’s second joint healthcare pavilion venture following the successful Delmarva Health Pavilion Millsboro, which opened in Delaware about a year ago. The Ocean Pines complex has been designed, conceptually, to complement the Gillis Gilkerson/PRMC Delmarva Health Pavilion collaboration in Millsboro. The Delmarva Health Pavilion Ocean Pines offers Ocean Pines and Worcester County residents a similar one-stop location for a majority of their healthcare needs. “As medical center builders and developers, we have constructed over one million square feet of medical facilities on Delmarva and we’ve enjoyed a strong working relationship with PRMC for over 20 years,” said Palmer Gillis, Gillis Gilkerson’s managing partner. “The Delmarva Health Pavilion Ocean Pines provides convenient healthcare access for Ocean Pines, Berlin and Ocean City residents as well as all of Worcester County,” he said. PRMC continues to refine its focus more in local neighborhoods where it can best and most conveniently provide the types of healthcare services that help people to become healthy and to live well. “You can expect to see PRMC working with contractors to develop similar health pavilions and medical complexes in growing population areas across Delmarva and also in underserved communities where healthcare services are needed,” Dr. Naleppa said. “We’re caring for people, coaching them to stay healthy and connecting them with the best services possible.” Peninsula Regional Family Medicine Ocean Pines is now accepting patients of all ages. For information or to schedule an appointment, the phone number is 410912-6104. PRMC FamilyLab’s phone mumber is 410-912-6106; its Web address is peninsula.org/familylab. Home Scripts Ocean Pines can be reached at 410-543-4769. PRMC’s Cardiovascular or Pulmonary Rehabilitation services can be reached at 410-912-6108.

November - Early December 2015Ocean Pines PROGRESS

Commissioners refuse to sign off on new Showell Elementary School County to send letter to state explaining opposition; Ocean Pines’ commissioners lead effort to force school board to live with $38 million allocation

By ROTA L. KNOTT Contributing Writer he Worcester County Commissioners and the Board of Education have reached an impasse over the cost of constructing a new Showell Elementary School. Unable to persuade the school board to revise its student population and related cost-per-student per-square-foot estimates for the proposed new school to fit within the $38 million the county is willing to allocate for it, the commissioners have refused to sign off on supporting the project. The commissioners instead voted to send a letter to the state Interagency of School Construction detailing why they will not endorse the school system’s fiscal year 2017 capital improvement plan. Commissioners voted 4-2, with Commissioners Jim Bunting, Chip Bertino, Diana Purnell and Ted Elder in favor, and Joe Mitrecic and Bud Church opposed, and Merrill Lockfaw absent, to write a letter telling the state stating that the county will not approve the CIP

based on the calculations included for SES. Bunting and Bertino, both of whom represent parts of Ocean Pines, led the attack on school system officials who appeared at their Nov. 3 meeting seeking approval of a revised capital improvement plan for SES. Commissioners met with the same group of school officials more than a month ago and told them to come back with a revised plan; they did, but it was still not to the satisfaction of a majority of commissioners. “It really does seem that you and the Board of education are putting up barriers to getting that school built,” Bertino told Jerry Wilson, superintendent of schools. Bunting said he understands that the school system has policies and procedures that it is following in planning for the new SES, but perhaps it’s time to revisit those. In the current economic climate it is no longer reasonable to be able to expect the county to be able to fund school construction at the level in

did in the past, he said. Commissioner Diana Purnell chimed in against the school board as well. “Your policies can’t remain the same. We are not living in the same time now,” she told Wilson and School Board President Bob Rothermel. “We need to stop this foolishness.” Last month the commissioners released their study of SES replacement and funding. In that document the commissioners identified $37.18 million in funding that they would be willing to contribute for a 90,000 square foot school building that would accommodate 616 students. That differed from the school system’s 2014 SES feasibility study for 104,000 square feet of space to accommodate 657 students. Wilson appeared before the commissioners to discuss the school system’s capital improvement plan, specifically the scope of proposed enrollment for SES. He said took issue with the county’s enrollment calculations, saying that lower number does not conform to the

school system’s policies. He said reducing the size of the school would result in an increase in the teacher to student ratio. While the state mandates a ratio of 22 students to one teacher, the school system set the maximum at 16 students. He said parents have clearly stated that they want that ratio to remain low. Wilson added that the required school size and student capacity cannot be accurately determined at this point. That will be done as the school system develops educational specification and designs for the new building. However, Bertino said the project is no different than building a house, and no one would hire an architect to design a $1 million house knowing they could only afford $300,000. He said the school board should consider revising its teacher-student ratio policy to reflect the realities of the current economic climate. “This is what our community supports,” Wilson responded, but he added that “It’s an aspirational policy to some extent” because some classes are little larger. Bunting said even a 90,000 square foot building should be able to handle significantly more students than projected by the school system. Wilson disagreed and said “we can’t do something that isn’t capable of being one.” Bertino said that even after relocating fourth graders back to SES in a

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WORCESTER COUNTY

6 Ocean Pines PROGRESS Showell school

WORCESTER COUNTY

November - Early December 2015

From Page 5 90,000 square foot school the student to teacher ratio would still be around 17 to 1. He said he thinks it is “ridiculous” for the commissioners to have to get involved in a debate about the square footage of a school. “We allocate funding and you figure out how to build it,” he told Wilson. Still, he said he attended a recent school board meeting that the county’s budget never came up in relation to building a new SES. “Not once was the budget a part of that discussion. I don’t understand why that was.” Wilson said he fully understands that the availability of funding is a factor. However, the purpose of that school board meeting was to discuss planning process for SES and what needs to take place at this phase of the project. “Do you appreciate that we have only so much money to spend?” Bertino shot back. “The board of education and you as superintendent are going to do what’s best to work within those constraints.” Rothermel tried to intervene at that point in the discussion, also saying there is a process that the school system follows when planning for a new facility in order to meet all state requirements. So even though the county has said

how much money it will spend on a new school, the school board still has to work through its planning process. “Why we’re here even discussing this or grilling the superintendent of school is beyond me,” Mitrecic said. He said that, like the commissioners, members of the school board are elected and he believes the county is overstepping its bounds by telling them how large of a school they can build. “We need to let the school board do what they need to do,” he said. “We’ve set the number. They have to work with that number.” Church echoed Mitrecic’s sentiments, saying he has sat on both the school board and the commissioners, and “I’ve never in all those years seen such a divide between the board of education and the county commissioners.” He said the county is micromanaging the school board and needs to stop. “They have a job to do. They have a responsibility not only to the county commissioners but also to the state of Maryland. They have more restrictions than we do. Let them do their job.” Church said he will not vote for a project the county can’t afford, but at the same time, “This should have been resolved six, eight months ago.” Purnell said the goal should be to build a good, sufficient school.

County gives OK to revised Steen 60-unit duplex project Triple Crown Estates development will become part of Ocean Pines By ROTA L. KNOTT Contributing Writer edesign of the 60-unit Triple Crown Estates residential planned development with duplexes instead of single-family homes is moving ahead following the Nov. 3 approval by the Worcester County Commissioners. Developer Marvin Steen plans to develop a 92-acre property off Gum Point Road that abuts Ocean Pines with 30 duplex units. The property is zoned R-1 rural residential and RP resource protection, and both classifications allow for creation of the RPC, which was originally approved as a single-family home development. Creation of an RPC allows the developer more flexibility in designing the project, including the ability to cluster the units and preserve large blocks of forest and wetlands. Following a public hearing that net-

ted just a few questions about the Triple Crown Estates project, the commissioners gave their unanimous endorsement to the project. In response to concerns form one nearby property owner, the commissioners conditioned the approval on the developer not using a gravel access road that intersects with Gum Point Road during the construction process. Design engineer Steve Soule of Soulé & Associates said that gravel road wasn’t going to be used anyway so the developer had no problem with the condition. “This property does not access Gum Point Road,” he said. The property borders the south side of Ocean Pines’ Section 10. The only access to the duplexes will be via King Richard Road. Commissioner Joe Mitrecic asked for clarification that there is no access directly onto Route 589 either. Mark Cropper, attorney for the developer, responded that there is a gated gravel road to Route 589 that will serve as an emergency exit, something reTo Page 8

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8 Ocean Pines PROGRESS

WORCESTER COUNTY

November - Early December 2015

UNSURPASSED

QUALITY Lady golfers’ donation

On Oct. 6, the Ocean Pines Ladies Golf Association held its Annual Pink Lady Golf Tournament at the Ocean Pines Golf and Country Club to raise money to help provide mammogram screenings through the Eunice Q. Sorin Women’s Diagnostics Center at Atlantic General Hospital. The association raised the most it has raised in recent years at $1,069, bringing their total contribution over the past five years to over $4,800. Pictured, from left, are Toni Keiser, Atlantic General Hospital vice president of public relations; Stephanie Banks, lead radiology technician at the Women’s Diagnostic Center; Janet Stoer, OPLGA Pink Lady chair; Diana Earhart, Pink Lady committee member; and Maria Phillips, director of radiology at the Women’s Diagnostic Center.

From Page 6 quested by the Ocean Pines Association some time ago. That road will be used as a construction entrance during development of the property. The inclusion of an emergency exit was a caveat to the endorsement of the OPA so that there will be another way for residents to leave Ocean Pines should it be necessary under major storm conditions. The emergency exit will be gated so it cannot be used at any other time. According to the consultants, the emergency exit road is bordered by farm ditches that will preclude vehicles from simply driving around the gate. Steen’s project has been in development for many years and was originally proposed as a 60-lot single family home community that would be incorporated into the OPA. While the units will still

become part of the OPA, the developer opted to revise the plans to include duplex units in response to changes in the real estate market since 2008 and to make the units more affordable for those whole live and work in the area to own. Cropper said there is no tangible difference other than the change from single-family homes to duplex units. “All of the proposed elements are the same,” he told the commissioners. He pointed out that the OPA has endorsed the revised development plans. The OPA Board of Directors in May wrote a letter of support for the duplex version of the project because the characteristics of the development remain the same as originally proposed with the 60 single-family home design. By an agreement negotiated with the OPA as part of a failed effort to develop a Northern Worcester County YMCA in

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November - Early December 2015Ocean Pines PROGRESS

Medical marijuana

security,” he said. Commission President Jim Bunting, whose District 6 includes a portion of

Ocean Pines, agreed that it would be inappropriate to support one applicant when there are several who may be applying for locations in Worcester County. Commissioner Chip Bertino, whose Ocean Pines-only district includes the portion of Ocean Pines not represented by Bunting, was silent during the commissioners’ brief discussion of medical marijuana. County Attorney Sonny Bloxom told commissioners that if they decide to write individual letters of support for any of the applicants that they should allow him to review the correspondence before it is sent to the state. He cautioned them that they cannot speak for the county and must be mindful of conflict of interest and ethics rules.

environmental work, as well as analysis of stormwater measures, buffer protection measures, traffic and other planning concerns was performed during the growth allocation approval process. In redesigning the project, the developer has been able to preserve all of the woodlands, tidal and non-tidal wetlands and provide buffers to create additional forested area around streams on the site. Nearly 47 acres of the 92-acre site will be preserved in open space, including recreational areas. The project will receive 60 equivalent

dwelling units of water and wastewater capacity through the Ocean Pines Service Area via an extension of the main lines from King Richard Road and a new gravity pumping station that the developer will construct. Steen also owns the remaining more than 100 acres of adjacent land, which is currently in agricultural production, but has no definite plans for it. Before the developer could do anything with the land he would need to acquire additional EDUs of water and wastewater capacity to make it developable.

From Page 1 could be converted for use in a medical marijuana operation. The Town of Snow Hill has provided a letter of support for that applicant. She said she would recommend providing a letter of support from the county, too, because the facility would be located in an economically depressed area and could provide up to 50 well-paying jobs. “It is a very competitive process,” Mears said of the state’s requirements for receiving applications for one of the 15 available licenses. She said she feels that particular applicant could be successful in obtaining a license because he is an established business person targeting economic development in a depressed area. Commissioner Diana Purnell asked what the county’s responsibility will be to any applicants. “At this point in time there is none,” Mears said, adding that the county would become involved via the business permitting process once a facility in Worcester is approved by the state. Commissioner Joe Mitrecic said for the county to support any one applicant at this time “would be misguided.” But he said individual commissioners are free to write letters of support. “I think it’s our job to make sure after these are awarded that we help whoev-

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Triple Crown Estates From Page 8 2002, every home sale in Triple Crown Estates will generate a $6,500 payment to the Ocean Pines Association. That payment is compensation to the OPA for equivalent dwelling units reserved to Steen for water and wastewater treatment capacity EDUs that at one time had been reserved for use by the OPA. The property is partially located in the Atlantic Coastal Bays Critical Area, about 55 acres, and received a county growth allocation for 60 units. Extensive

Joe Mitrecic

BOARD OF DIRECTORS

November - Early December 2015

Collins calls for lower lot assessment, renovation of Beach Club Director wants special meeting to hammer out budget guidance By TOM STAUSS Publisher cean Pines Association Director Jack Collins is not exactly saluting and playing nice with OPA Treasurer Tom Terry’s proposed budget guidance to the general manager as he and his staff draft a new budget for 2016-17. Indeed, during the Board of Directors’ Nov. 29 monthly meeting, Collins read into the record a one-page document that while not expressly critical of budget criteria drafted by Terry, none-

theless took a few shots at the process used in its drafting. He also suggested a few amendments and went even further by suggesting a special meeting of the board to hammer out the final version of the guidance. If another director joins in the request for a special meeting – Dave Stevens did so during the Nov. 29 session – then the OPA president is obligated to call one, according to the OPA bylaws. “Though it was developed via email, I believe the process would have been served by holding a work session meet-

ing” to discuss it, Collins said. Calling Terry’s document “a yeoman’s effort,” Collins nonetheless said it struck him as more of a “philosophical document” that he suggested lacked specificity in some key areas. “I would like to add some specifics,” he said. Some of those specifics included guidance to the general manager not to raise lot assessments next year in his draft budget, and to work to reduce them. He also urged the general manager and the board to develop plans and specifications

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for renovating the bathrooms and making cosmetic improvements to the Beach Club, a shot across the bow of those who believe the Beach Club should be torn down and replaced with something new. By calling for action on the Beach Club next year, Collins also seemed to be setting himself apart from those in the administration who believe the next major amenity that needs attention is the Country Club. Collins stopped well short of embracing what perhaps has been the only significant change in budget guidance language this year over previous years. The Budget and Finance Advisory Committee had suggested that a rolling, multiyear capital budget should be included in management’s draft budget for next year, apparently with automatic approval of carry-over budget items. That automatic carry-over provision didn’t sit well with some of the directors, particularly Cheryl Jacobs, who spoke out it against during the board’s October meeting. To mollify Jacobs and other board skeptics, Terry modified that language in the draft of the proposed budget guidance discussed during the Nov. 29. But Collins wasn’t satisfied with Terry’s changes. “It is stated in the (revised) document that the ‘budget should be created based on the assumption that the commitment of dollars needed in future fiscal year will be approved based on multi-year plans developed to support the FY 16-17 budget,’” Collins noted. Rather than embracing that approach in the budget guidance document, Collins said OPA management should first “order the priorities of our capital improvements.” He said the OPA should “establish timelines to complete each project” and “be confident that the project will begin that fiscal year.” He said it should be an objective of the general manager and board “to prevent accumulated carry-forwards in future years,” an approach that on the surface at least seems to be at odds with the language offered by Terry. Collins also was critical of Terry’s proposed instruction to the general manager to “highlight those items that will not be expended during the current fiscal year but been have been included for renewed approval in the proposed budget.” Collins said that items or projects that the general manager can’t begin or expect to complete in the current fiscal year should not even be included in a capital budget. He seemed to be suggesting that the general manager should not be including any project in a capital budget as a placeholder that might need to be carried over into a subsequent fiscal year. “If a project is not to be built or begin in a given fiscal year, why budget for it?” Collins said. Collins then suggested “specific areas of focus” during the budget process. He suggested that: o OPA assessments should not be raised. “There should be a concerted effort to reduce expenditures where there

10 Ocean Pines PROGRESS

November - Early December 2015Ocean Pines PROGRESS 11

BOARD OF DIRECTORS

Stevens calls out Renaud over golf committee appointments Former OPA president says successor does not have right to name members of oversight panel without the concurrence of the board

the Oct. 29 Board of Directors meeting by saying that the OPA’s contract with LU requires submission of specific documents, including operations, food and beverage, membership, maintenance, sales and marketing plans. He wanted to know if any of those items had been received and if monthly and quarterly

By ROTA L. KNOTT Contributing Writer cean Pines Association Director Dave Stevens has challenged his successor as OPA president, Pat Renaud, over his authority to unilaterally appoint himself and two other directors to a board committee overseeing Landscapes Unlimited, the Ocean Pines golf course management company, and the lack of publically held meetings with that firm. Stevens broached the topic during

Collins calls From Page 10 are identified inefficiencies or unneeded funds. Every effort should be made to reduce expenses and lower assessments,” he said. o the OPA should “budget for and begin the process of hiring a consulting firm to study an propose the structure” of the OPA’s information technology system “to include, identify … hardware and software needs, training and skillset development” and should “determine the timeline required for installation and implementation” and costs. o the OPA should fund the two identified bridge repairs or replacements in the 2016-17 budget and to complete them “within the coming fiscal year.” o the OPA should “develop plans and specifications for the renovation of the bathrooms and cosmetic upgrades at the Beach Club.” Collins said these improvements “would be a most popular one, embraced by many OPA members who use the facility. It has been discussed for years and perhaps now is the time to make it a reality.” He said the investment in a renovation would be paid back over time, citing a “positive cash flow of $392,000 (excluding depreciation)0 over a five-year period. o Before any capital expenditures are budgeted, “preliminary plans and specifications including preliminary engineering costs must be generated.” This suggestion also represents a subtle rebuke of the long-standing practice of including placeholder projects in the capital project budget that management had no intention of starting. Examples of placeholders include the Sports Core pool renovation project, which was included in the approved project list for four or five years but not scheduled until the current fiscal year, and a new or expanded police station, included in the current year’s capital budget at $500,000. There are no plans to proceed with an expansion of the existing police station this year.

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BOARD OF DIRECTORS

November - Early December 2015

Golf committee From Page 11 meetings had been held in accordance with the golf management contract. OPA General Manager Bob Thompson said yes to both items. He said information was received and he provided it to Director Bill Cordwell, who serves as the board’s golf liaison. He also said there have been monthly meetings with LU and a required quarterly meeting with board representatives was coming up in early November. Thompson is also a member of the oversight committee with the three directors. Thompson said the designated board participants are Renaud, Cordwell and Director Tom Terry. That triggered pointed criticism by Stevens alleging Renaud’s lack of authority to make those appointments without the consent of the full board. “What authority gives the president the right to designate who those representatives are going to be without even a discussion in front of the board?” he said. Stevens said when he was OPA president he brought appointments before the board for review and asked if there were any objections before finalizing them. Stevens said the OPA is trying to build a relationship with LU and operate a successful golf course, yet people who were adamantly opposed to hiring

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the company are now serving as board liaisons to the company. He called the move “ludicrous” and said the committee’s composition is “not a fair representation of the board.” “Contractually this contract calls for oversight from the board,” Terry said. Those three people were picked by the president to provide that oversight, he said. Terry, Cordwell and Thompson all opposed cancelling the management contract with Billy Casper Golf and giving it to LU. Renaud voted for the management change. Stevens said when he was president he had appointed one board member and two members of the golf community to serve as liaisons to LU. He asked if there was a board meeting he missed “that unappointed them” or was it an arbitrary action by the current president. Stevens said he learned of Renaud’s appointments in a recent article published in the Progress. Director Cheryl Jacobs jumped into the debate, asking how Renaud’s exercise of the appointment power differed from what Stevens had done as president. She said it seemed like a matter of presentation of proposed appointments versus authority to actually make them. She wanted to know if the OPA president has the authority to make appointments or not. q

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From Page 12 “He does not have the authority without the agreement of the board,” Stevens insisted. He said the required meetings were included in the contract with LU because the board was kept “in the dark” by the previous golf management firm, Billy Casper Golf. He said the board never knew what that company’s plans were or how it intended to build golf membership. He said the information was given to the general manager but never the board. Both Thompson and Terry took issue with that statement. Thompson said he tried on several occasions to share a binder full of information with Stevens when he was OPA president. “Mr. Stevens, that’s just factually inaccurate, sir. And you’ve been provided an opportunity to see the information as board president. I tried to share it with you multiple times. Well before any change in management it was tracked,” Thompson said. Before Stevens could respond, Director Jack Collins said the discussion had gotten off track. “The bottom line is we wrote this contract in order to open up the process so individual members were aware of what’s going on,” he said, adding there is no reason quarterly meetings with LU can’t be opened up to all members of the board as well as the community. “I don’t understand the objection to that kind of an approach at all.” Thompson argued that the management meeting is supposed to focus on contractual matters, so the board does have the right to meet with LU in closed session. He said there have been board representatives at the monthly meetings with Landscapes Unlimited all summer. Renaud asked Collins if he is proposing that the full board meet regularly with the contractor instead of having just three board members do so. Collins said the meeting should be open to all board members and the public. “Open up the process. Let these folks know what in heaven’s name’s going on,” he said of property owners.

November - Early December 2015Ocean Pines PROGRESS However, Stevens said he wasn’t looking for a formal presentation from LU, just the business plan that the company is contractually obligated to provide and an opportunity to ask questions about it. Director Cheryl Jacobs said that would fall under contractual matters and be a closed session item for discussion by the board. But Stevens said it wouldn’t have to be in closed session because “it’s simply exchanging information.” Jacobs said Stevens was in fact talking about contractual matters and yet he was disagreeing that they should be reviewed in closed session. “Are you saying we can only talk about the product they produce in closed session?” Stevens asked Jacobs. She didn’t reply, but Terry said the board can ask LU for any information that it wants and have it presented in any way that it chooses, privately or publically. “The contract was written as means of saying the board has a right to any of the information created by the contract,” he said. “This contract contains an organizational structure, a philosophy if you will, of how this is going to be managed.” Terry then put on his board parliamentarian hat. He said there was not a single thing on the meeting agenda about the topic of golf management and no amendment to the agenda to allow it to be discussed. “It’s not a discussion of the contract. It’s referring to the contract,” Stevens responded, noting that the subject of golf was part of the general manager’s monthly report to the board. Although Renaud had not attempted to defend his right to appoint committee members without board concurrence, an agitated Terry at that point told Stevens and Renaud, “Why don’t you two guys go settle this offline some time?” Collins, who was sitting next to Terry, asked him, “What are you doing?’ “I’m pointing at him and him,” Terry said, motioning to Stevens and Renaud, and saying the board needed to get back to work. “You got to a reasonable point and now you’ve lost that reason,” Collins told Terry. “I’m simply trying to move on.” Terry

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said. Stevens eventually said he was asking reasonable questions but not getting satisfactory answers. So, he said, “We’ll move on and bring it up another time.” As a practical matter, had Renaud asked for board approval of the committee appointments he probably would have received a majority vote – with Renaud, Terry, Cordwell and Jacobs the most likely yes votes. But Stevens and Collins probably would have argued that at least one strong supporter of the LU contract, Collins, should have been

named to the panel. Discussed during the debate was the status of a membership marketing plan that Landscapes reportedly delivered to Thompson about a month previous to the Oct. 29 meeting. Thompson provided a copy to Cordwell, the board’s golf liaison, but both Stevens and Collins said a copy had not been provided to the other directors. The plan details LU’s strategy for rebuilding golf membership. Cordwell was not at the meeting and could not explain his decision not to share the documentation with his colleagues.

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14 Ocean Pines PROGRESS

November - Early December 2015

BOARD OF DIRECTORS

E-mail policy changes has tepid Board of Directors’ support

By TOM STAUSS Publisher purported change in the way that members of the Board of Directors communicate with the local media – in writing, via e-mail – has the solid support of at least three directors but not so much among three others. The remaining director has been out of town on a personal matter and has not responded to attempts to reach him for comment. In favor of asking the local media to contact them for comment via e-mail are directors Dave Stevens, who came up with the idea, and directors Jack Collins and Cheryl Jacobs. The change was discussed in a meeting in October in which no local media members were present. Stevens has been unhappy with the way in which OPA President Pat Renaud has been communicating with the local media, particularly an interview he did with the Progress shortly after being elected president in a 4-3 vote. Stevens told the Progress recently

that Renaud’s interview contained numerous factual errors and that he would have liked to have been able to comment on them and to correct misstatements in time for publication at the same time as Renaud’s remarks were printed. He declined a Progress invitation to offer a rebuttal to alleged misstatements in a subsequent edition. Telling the Progress they still will continue to accept phone calls asking for their views on particular issues were directors Tom Terry, Tom Herrick and Renaud. Director Bill Cordwell has been out of town of late on a personal matter and has missed recent board meetings. He has not responded to recent emails and phone calls from the Progress. Terry, Herrick, Renaud and Jacobs responded to direct inquiries from the Progress on the e-mail issue following the Nov. 29 board meeting. Stevens and Collins had previously informed the Progress that they would be requesting email communication from members of the media. Jacobs said she preferred e-mail communication because it’s the fastest and easiest way to get in touch with her. She continues to work part-time in Baltimore as a prosecuting attorney. Renaud said that he would contin-

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ue to accept phone calls but would re- media phone calls and would answer serve the right to respond by email if questions, jokingly adding if only to say the matter was of sufficient importance. “no comment.” Previously, he told the Progress that he Told that some directors are not solregards talking to the media as an im- idly on board with an email-centric comportant function of the OPA president. munication policy, Collins subsequently Traditionally, the board president told the Progress that he might reconhas been the unofficial board spokesman, and Renaud said he saw no reason to change that, notwithstanding evidence that Stevens in particular is Golf committee From Page 13 taking exception to Renaud’s public pronouncements and manner of managing Copies were delivered to directors in their administration building mailboxes board affairs. At the October meeting, the rift be- during the week after the Oct. 29 board tween Stevens, the previous board meeting, the Progress has learned. The board gave the contract to manpresident, and Renaud was evident. In particular, Stevens took issue with Re- age the Ocean Pines golf course to LU naud’s exercise of presidential appoint- in large part because of the company’s ment power with respect to a board com- emphasis on the need to restore the lost membership base and to bring membermittee that oversees golf operations. Terry said he was not at the meeting ship revenue into parity with outside in October when the e-mail issue was play revenue as a way of improving discussed and would continue to accept golf ’s bottom line. The coming winter and spring phone calls. Herrick said he, too, would accept phone calls to comment, with the months will be the first real opportunity understanding that he would be offering the company to implement its memberup his personal views and would not be ship rebuilding plans. https://www.facebook.com/sunsetﬂ oors21842 Thompson told the Progress after the speaking for the board. OPA General Manager Bob Thomp- Oct. 29 board meeting that the memson told the Progress at the same meet- bership marketing plan was still being ing that he would continue to accept tweaked.

Three directors say they are willing to take media phone calls

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BOARD OF DIRECTORS

E-mail policy From Page 14 sider. In an interview in one local weekly, Stevens explained his rationale for communicating through email. One reason he offered is that it would afford the opportunity for every director to weigh in on an issue raised by a media question. Another is that it would reduce the possibility that someone would be misquoted.

Some positive vibes on natural gas pact despite official silence Thompson wrote. “Updated information will be provided to the Board of Directors in a closed session following the October board meeting.” Thompson made no attempt to define the short- and long-term issues that he and Sandpuper executives have been addressing, but no doubt a franchise fee has been a part of the discussions. Reading the tea leaves, someone could easily conclude that the two sides, after more than a year of stopand-start discussions with no breakthroughs, at last were coming close to getting something on paper that might, just might, resemble an actual franchise agreement. The Progress has been informed by a source that in a recent meeting with employees of Sharp Energy, a division of Chesapeake Utilities, the parent company of Sandpiper Energy, a Chesapeake executive disclosed that the two sides were close to reaching agreement on a pact that would lead to natural conversions in Ocean Pines in the relatively near future. According to the source, the Ches-

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Whether the PSC would be willing to adopt a franchise fee precedent for one subdivision in the state is unknown. Back in early June, Thompson was brought back into the fold as lead negotiator for OPA, tasked with bringing back frequent updates to the board. Most of the directors agreed that since no activity in talks had occurred since Thompson had taken himself out of the role late in the previous year, it made

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apeake executive said that the OPA had adopted a more reasonable tone and approach in its discussions with the utility giant, which has an agreement with Worcester County government to bring natural gas via pipeline to communities through the county, including Ocean Pines. While Berlin and the nearby Glen Riddle development began receiving natural gas via pipeline this past year, Ocean Pines has not because of the protracted delay in arriving at a new franchise agreement. Ocean Pines is the only residential community in the county that has tried to negotiate a franchise agreement with Sandpiper. Two major issues have divided the parties. The OPA has asked for a $150,000 franchise fee in exchange for the OPA granting a right-of-way for the natural gas pipelines that circulate throughout much but not all of Ocean Pines. The OPA has also been seeking roughly $70,000 in legal fees incurred after hiring a Salisbury attorney to represent it in discussions with Sandpiper. Those talks produced no agreement. No one’s talking on whether the OPA

has shown any flexibility on the franchise fee or recouping legal fees, but it would seem reasonable, if indeed the parties have reached an agreement in principle and are exchanging copies of a completed franchise agreement in anticipation of signing it, that there’s been some movement off previous positions. In addition, the board’s most adamant advocate of some sort of franchise fee, Marty Clarke, retired from the board in August. No other director has expressed any position with the same degree of intensity as Clarke. Director Jack Collins described himself as ambivalent on the franchise fee this past summer, and Director Tom Terry said he continued to favor it only with the full knowledge that it might never be implemented. Any franchise fee would have to be approved by the Maryland Public Service Commission as part of a rate tariff that would have submitted for approval by Sandpiper.

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By TOM STAUSS Publisher cean Pines Association General Manager Bob Thompson in his Sept. 24 written report to the board used 35 words to describe the status of talks with Sandpiper Energy on efforts to complete a franchise agreement that would facilitate delivery of natural gas to Ocean Pines via pipeline. Those 35 words said exactly nothing of any consequence. Fast forward to his written report to the Board of Directors dated Oct. 29. His comments had expanded to 53 words, still devoid of meaningful information. “Ongoing discussions have continued in an effort to reach a fair, balanced and comprehensive agreement addressing the short-term as well as long-term issues of bringing an alternative energy source, natural gas, to our community,”

November - Early December 2015Ocean Pines PROGRESS 15

16 Ocean Pines PROGRESS

BOARD OF DIRECTORS

November - Early December 2015

OPA at fault for candidate response mix-up, not Elections Committee, chairman says

other question, rendering the response nonsensical. That candidate, Slobodan Trendic, came in third in the voting behind winning candidates Tom Herrick and Chery Jacobs. Terry backed into the issue by asking who reviews materials are mailed out to property owners as part of the election process. ““Who has the final sign off authority on editing of that document to make sure it is correct before it goes to printing?” he asked. Wentworth said that the Elections Committee has that final say on materials. “In that situation where that occurred, it’s on me as the chairman,” he initially said, adding “That’s our process.”

Trendic response repeated material from previous answer, rendering it nonsensical the 2015 Ocean Pines Association Board of Directors’ election, one director questioned that statement. Director Tom Terry wanted to know about a glitch in the publishing of candidate responses to questioned posed by

the Elections Committee as part of the annual process. He said there was as “glitch this year” causing the published answers from one of the candidates to be incorrect. A portion of one answer to a question appeared in response to an-

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ty negotiations, he described the conversations thus far as “fair and open,” which is diplo-speak for saying there’s no agreement to date. In a June 3 special meeting that was closed to the OPA membership, the directors agreed to designate Thompson as the sole OPA representative in talks with Sandpiper, a decision which excludes members of a board working group from attending meetings with Sandpiper. At the same time, Collins told the Progress recently, Thompson is obligated to make timely reports on the substance of any face-to-face meetings with Sandpiper to the working group and board. That much at least appears to have occurred on a regular basis. The reappointment of Thompson as

the OPA’s negotiator came about after Director Bill Cordwell, unhappy with the apparent lack of movement in discussions between the OPA and Sandpiper Energy for a new natural gas franchise agreement, suggested that Thompson be given the task of renewing dialog with Sandpiper to see if any agreement is achievable. The directors agreed to allow Thompson to contact Sandpiper representatives to determine the status of issues that previously had divided the two sides, such as a franchise fee and reimbursement for OPA legal fees. Thompson briefly had the role as lead negotiator this past December until a kerfuffle with Clarke over quotes about the status of negotiations in the local media led the general manager unilaterally to take himself out of the role.

From Page 15 sense to see if bringing him into the fold could jumpstart discussions. Any evidence that Thompson’s involvement was making any real difference was hard to come by. In his June general manager’s report to the board, Thompson said he had “engaged” Sandpiper executives in two conference calls to date, with the first one a relatively short one limited to opening up “a new dialog” and establishing “future correspondence.” The second, much longer call included a “detailed discussion where we recapped our positions and discussed options for moving forward,” Thompson wrote. Reminiscent of communiques issued by national governments in trea-

But then he qualified his statement, saying that the Elections Committee has no control over information that is sent out by OPA in its quarterly report newsletter. “That’s where the problem was” with incorrect information being published about Trendic during the 2015 election, he said. The quarterly report newsletter is published by the OPA’s public relations and marketing office. During the meeting, Wentworth provided an exhaustive overview of the 2015 elections process, restating date by date when each related activity took place throughout the year and recountq

By ROTA L. KNOTT Contributing Writer hile Elections Committee Chairman Bill Wentworth said during an Oct. 29 meeting that everything went smoothly with

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Elections Committee From Page 16 ing the results that ultimately resulted in election of two new board members, Jacobs and Herrick. He said the Elections Committee functions independently of the board,

Tom Terry

by timely payment of annual property assessments. A total of 6,707 votes were cast and 3,421 ballots were processed by the Scantron system. Another 37 ballots were counted manually. Wentworth said most of them were kicked out of the Scantron system because of problems with the ink on the ballot itself. He said 31 ballots were rejected and not counted, for reasons that ranged from property owners placing the ballot in the wrong envelop to the owners of more than one property placing all of their ballots in a single envelop. “It’s laid out real clearly you’re not supposed to do that. This is a continuous problem,” Wentworth said of some property owner’s inability to follow voting instructions. In other cases property owners voted for more than two candidates or even mailed back to the OPA blank ballots. He said there were 14 duplicate ballots submitted by property owners who had contacted the OPA and asked for a second ballot, saying they either lost or never received their original ballots. Jacobs suggested that when the Elections Committee announces the results of the annual election it also publicizes the various problems it sees with ballots. She said that will help ensure that property owners understand they lost their opportunity to have a say in the election because they didn’t follow directions.

“It occurred to me during the process that there was the potential of a problem,” Jacobs added and asked for clarification about the cutoff date for receipt ballots to be counted. Ballots must be postmarked and received by the OPA by certain dates. She wondered what happens to ballots that may have been mailed and postmarked in time but not received by the Elections Committee in time to be counted. “Has that ever been an issue?” she

asked Wentworth. He said it has not happened in the three years during which he has served on the Elections Committee. He said generally the only time there are problems with mailed ballots are when outof-town property owners don’t bother to notify the OPA that they have a new address. Those people may not receive their ballot. Director Dave Stevens said that if

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which does appoints its members, and is solely responsible for all aspects of the election process. “This independence is necessary in order to ensure that there is no impropriety that could influence the election,” he said. In 2015, the OPA had 7,403 members who were eligible to vote, a right garnered solely

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November - Early December 2015

Elections Committee From Page 17 ballots were being received late and not being counted, that would show up in the Elections Committee’s statistics and it’s not. Therefore, he said, it doesn’t seem to be a problem. During the public comments section of the board meeting, long-time resident Dutch Oovsteen suggested the OPA consider allowing property owners who are making payments on their assessment bills to vote in the annual election. He said he has spoken with several people who were concerned about losing their right to vote in the board election because they weren’t able to pay their entire assessment bill at one time and instead were making monthly payments. “You know who is paid up at end of the month and who isn’t,” he said. Oovsteen suggested that as long as their monthly payments were being made on time that those property owners should get ballots. “How many people vote in the general election in the state, in the country and never pay taxes?” he said, adding “And here the person cannot vote when they can’t pay their own dues.” The Elections Committee’s recommendations for process improvements next year included using a PowerPoint presentation as a visual aid and provid-

ing hard copies of the questions to candidates during the candidate forum. Additionally the committee intends to expand the workshop for candidates prior to the forum, revisit the time allowed for various aspects of the forum and consider having candidates seated on a stage to allow the audience a better view. Committee recommendations to the OPA board were to improve the property owner identification cards to include the member’s name, section and lot number as well as a photo. Wentworth said it was an improvement to have a photo on the cards but unless a scanner is available the barcode on the IDs is a useless tool. He said the OPA’s membership card “is no good” because of that. He said at the annual meeting the committee must still request a second form of identification from property owners in order to verify their voting rights. Contrary to Oovsteen’s suggestion, the committee also recommended the OPA modify its payment plan agreement with property owners to more clearly state that no member may vote if 35 days prior to the voting deadline the member has failed to pay the annual charge. Wentworth said one of the primary reasons property owners do not receive ballots is because they haven’t paid their dues in time.

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Board close to compromise on budget guidance to GM By TOM STAUSS Publisher o much for arriving at “budget guidance” to the general manager in October, something that Ocean Pines Association director Bill Cordwell insisted on during the Board of Directors’ September meeting. With Cordwell out of town on a personal matter, unable to attend the board’s Oct. 29 regular meeting, the directors were still unable to agree on instructions to the general manager as he and his staff work on preparing the 2016-17 draft budget for release in January. How much this really matters is open to debate. For the most part, “budget guidance” is boilerplate language picked up from the previous year, and General Manager Bob Thompson and staff are fully capable of beginning the budget process without explicit board input. This year, the only substantive change in the guidance to the general manager had to do with a proposal from the Budget and Finance Advisory Committee for a rolling, multi-year capital budget that would contain carry-over items that would not require new approval by the board if they had been approved in a previous fiscal year. At least that was some OPA board member interpreted the committee’s proposal, as it

Terry eliminates reference to carry-over approvals in proposed instructions to general manager in preparing 2016-17 budget; two directors call for special meeting was subsequently wordsmithed by OPA Director Tom Terry. During the board’s September meeting, Director Cheryl Jacobs in particular objected to language in Terry’s draft budget guidance pertaining to a multiyear capital budget. Terry, the OPA treasurer and the board’s liaison to the budget and finance committee, eliminated all references to carry-over capital items in a revised budget guidance draft considered by the board during its Oct. 29 meeting. But it still contained a reference to multi-year capital year budgets, so how much of a concession to Jacobs’ and other board members’ concerns the change in language represented is not clear. In any event, Directors Dave Stevens and Jack Collins made it known that they were still not on board with Terry’s draft. With Cordwell absent from the meeting, Terry was not assured of the votes needed to pass the budget guidance. As a way of assuaging the concerns of Stevens and Collins and perhaps

Jacobs, who was less vocal during the Oct. 29 meeting than she had been at the September board meeting, Terry

offered what he called a “compromise” between the status quo of continuing the long-standing practice of including “place-holder” projects in the capital budget and opting for a multi-year capital budget with automatic roll-over of previously approved capital items. The compromise seemed heavily weighed to eliminating roll-over projTo Page 22

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From Page 20 ects and placeholder items in the capital budget. In their place, Terry suggested that the general manager include money in the capital budget for engineering and other preliminary planning for projects that he hopes the board will fully fund in a future year. Terry said that the money for these plans should come out of the OPA’s reserves rather than operating funds, which would have less direct impact on the lot assessment for the fiscal year’s budget under review. Stevens and Collins seemed to find Terry’s suggested compromise acceptable, but they were still unwilling to support approval of the draft guidance in its latest iteration, perhaps because the compromise was not included while the reference to multi-year capital budgeting remained. They said they wanted a special meeting to be scheduled soon to discuss the budget guidance again. The discussion during the Oct. 29 meeting was launched by a prepared statement read into the record by Collins, who questioned the need for any reference to “multi-year” plans in the budget guidance. [See separate article in this edition of the Progress for a full description of Collins’ statement.] Terry responded by telling Collins and his colleagues that all references to capital carry-overs had been removed from the draft, and that under

his revised language there would be no automatic removal or carry-over of any project in which there were unexpended funds related to a previously approved capital expenditure. He did not address the fact that his draft includes language referring to “multi-year foresight” and multi-year plans, which conceivably could morph into some sort of multi-year capital budget. “It’s just calling for a report,” Terry said, a reference in his draft to a report on each capital item that was listed in the current fiscal year’s budget, with an indication of whether capital expenditures related to each item would or would not occur during the current fiscal year. “The report will highlight those items that will not be expended during the current fiscal year but have been included for renewed approval in the proposed budget,” Terry’s draft says. Presumably, items not funded or paid for during the current fiscal year would reappear in the draft budget for the following year that the general manager would submit for board approval. Collins’ statement suggested that he was not comfortable with that sentence. “Why? If a project is not to be built or begun in a given fiscal year, why budget for it?” he said. Collins seemed to be suggesting that the general manager should be more careful in making sure that a capital To Page 24

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Budget guidance From Page 22 budget does not include placeholder projects or expenditures for projects that he does not intend to start in the year in which they’re approved in the budget. Stevens said he had discussed his opposition to placeholder projects with Terry and that he was in general agreement with the thrust of Terry’s compromise. “We should not include in our capital

budget any items” that lack “well documented supporting rationale,” Stevens said, adding that unless they’re well defined, they should not be approved by the board nor included in the capital budget. He cited three such “placeholder” or unsupported projects in the current fiscal year’s capital budget -- $135,000 for White Horse Park bathrooms, $500,000 for a new or renovated police station, and $175,000 for bridge repair or new construction. Of the three, only bridge

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repair/construction is in the process of He said there should be a balance beaccumulating supporting rationale. tween no placeholders and full approval Like Collins, Stevens said the budget of a project before it is included in a capguidance should be more specific than ital budget. that which has appeared so far in two “There ought to be space for Bob to iterations and he agreed with Collins’ ask for preparatory dollars (for a particconcern about multi-year budgets. ular capital project),” Terry said. “Some language (in the revised draft) Stevens said he was in “partial agreeis counter to what I just said,” Stevens ment” with Terry, reiterating that each said. project should require engineering and Terry said that he and Stevens had perhaps additional supporting docualready had a discussion over their dif- mentation before it receives full funding ferences, with any possible meeting of in the capital budget. the minds too late for inclusion in the Collins agreed, calling for “specific draft of the guidance discussed by the plans and specs” before including a projboard during the Oct. 29 meeting. Ste- ect in the capital budget. vens conceded that he had not met the “We need to change the modus opedeadline for submitting recommended randi,” he said. “Let’s do it this year.” changes in wording to Terry. After Stevens suggested using operTerry characterized the issue as one ational funds rather than reserve funds in which the board and Thompson is for engineering studies, Cheryl Jacobs “caught in a chicken or the egg” situa- questioned whether that would be nection. essary. Terry said he thought that en“If Bob hasn’t done a full engineering gineering studies should be funded out study (for a particular capital project),” of reserves, as they have been over the Terry said it can’t be included in a cap- years. Stevens seemed to capitulate on ital budget under Stevens’ and Collins’ that point later in the discussion. logic. “We can’t have full funding beAfter Stevens suggested a special cause (the project) doesn’t have funds meeting to discuss budget guidance yet for engineering. How do you get to the again, Terry withdrew his motion for point where you can include” a project in approval of his most recent draft. He a capital budget, Terry asked. did not say whether he would revise it His solution seemed simple enough: yet again to reflect his proffered cominclude funding in the capital budget promise, but that seemed to be a likely for engineering studies in support of a result. proposed project, instead of including He did not say whether he would de“place-holders” that include “wild guesslete references to multi-year plans or 1508 Complete Home Improvement Handout NEW with our type_Layout 1 2/3/15 1:22 PM Page 1 es” on their eventual costs. “multi-year foresight” in a future draft.

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Medical complex traffic patterns a concern at GM Town Hall meeting Thompson rules out ‘gun tower,’ no U-turn signs as solutions By ROTA L. KNOTT Contributing Writer former member of the Ocean Pines Association Board of Directors jokingly suggested a “gun tower” as a traffic control measure to keep motorists leaving a new medical complex on Route 589 from entering the North Gate. Jeff Knepper made the comment during General Manager Bob Thompson’s Oct. 8 Town Hall meeting, and said the right-in, right-out only access and egress from the medical facility to Route 589 doesn’t make sense. Knepper said the traffic pattern is only going to cause problems for Ocean Pines. He asked Thompson what is being done to keep customers of the medical facility that is about to open just outside of north Ocean Pines from leaving that complex, entering the North Gate and making a U-turn just after the bridge. “Are we thinking about signs, gun towers, whatever?” Knepper asked? Thompson responded, “Gun towers are out. I’m not supporting that.” To which Knepper quipped, “I was

thinking BB.” Thompson said the OPA board met with the medical complex’s developer, Palmer Gillis, and representatives from the State Highway Administration about two years ago to review the plans for the project and its access point from Route 589. He said installing a traffic light at the entrance to the complex was ruled out because of its proximity to the Route 90 off ramp and the speed at which cars are coming off onto Route 589. He said SHA determined that the best strategy was to create a right turn in and right turn out only access point from Route 589. “So that’s why the paving is designed way it is, so they can come out and accelerate to get on 589,” he said. The SHA has adhered to the same right-turn-only policy elsewhere on Route 589, with developers having no choice but to comply with the SHA’s preference. Thompson acknowledged that traffic flow at the new medical center is going

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to be challenging. “To your point, I had someone make a left turn in front of me today and they’re not even done yet,” he told Knepper. He likened the situation to that at the intersection of Nicholas Lane and Route 589 at south Ocean Pines. The access point at that location is also a right in, right out only. However, motorists exiting the property routinely violate that rule and turn left from the property onto Route 589. The same is true at the entrance/exit to the Pavilions business center north of Ocean Pines. “People come and they make whatever turn they want,” Thompson said. He added that the building about to open at the medical complex is just one of four that will ultimately be constructed on the site. More buildings will mean even more traffic making turns to and from Route 589. “I believe it will be something we’re going to have to look at very hard over the next couple of years once it opens up.” Thompson said the developer argued that that traffic flow would be less of a

problem because the medical offices that will be located in the complex are typically only open 9 a.m. to 5 p.m. from Monday through Friday. “That was the sale. I’m not saying it is or isn’t.” According to the developer that type of business operation will have the least impact on traffic flow in that area because it is not a “seven days a week 20 hours a day” operation like retail shops or restaurants. “That was the rationale behind it,” Thompson said, adding “That’s the formal answer. Informal. It’s a problem. We know it is.” Knepper asked about installing a no U-turn sign to deter motorists who are leaving the medical complex from entering the North Gate so they can turn around and head south on Route 589. “That’s not our road,” Thompson responded. Because Route 589 is state owned and maintained, the OPA has no authority to post signage. Knepper maintained the position that something needs to be done now to help mitigate the problem. “As traffic grows you’ll lock up that north gate in both directions,” he said. Thompson responded, “We have it now.” “You think it’s bad now,” Knepper said, indicating that it will get much worse if traffic from the medical complex is allowed to make U-turns within Ocean Pines. He said the OPA should be as pro-active as it can and suggest-

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Board moves aggressively on junk vehicle situation street from her home. She said on that property there are two junk cars and one truck that is protruding onto the road slightly. That situation has existed all summer. She said the violations are having an impact on the quality of life for neighboring residents. The house next door to the problem property is for sale, but she said it is “never going to move with that going on.” Noting that discussion of the violations on that property was up for discussion later during the meeting, Shockley encouraged the board to take immediate actions to force the property owner to rectify the situation. Director Jack Collins asked if any of the neighbors have talked to the proper-

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ty owner and asked him to comply with the OPA regulations. Shockley said “yes,” but they haven’t had any luck. “The neighbors have tried to guide him in this problem and other problems as well.” OPA President Pat Renaud said the OPA does try to resolve such issues as quickly as possible but there is a procedure that has to be followed. Resident Joe Reynolds followed Shockley during the public comments section of the meeting and suggested the board “fast track” action against the property owner as allowed by board resolution. By unanimous vote the board opted to do just that later in the meeting.

Pines resident calls for Yacht Club changes

Property owner Steve Lind told the Board of Directors during the public comments segment of the Oct. 29 monthly board meeting that he doesn’t dine at The Cove restaurant at the Yacht Club and neither do many other residents during the off season months because it isn’t an inviting atmosphere. Lind was a member of the Ocean Pines Association’s Clubs Advisory Committee when he made his remarks, and he made it clear he was speaking for himself, not the committee. He subsequently submitted a letter of resignation from the committee, telling the Progress that he didn’t believe his membership on it served any useful purpose. He has clashed with Committee chair Les Purcell on more than one occasion

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Lind said he enjoys happy hour, weekend entertainment and Sunday football but not at the OPA’s Cove restaurant. “I spend big, I tip big and I don’t go to The Cove,” he said, adding that much of the year round population of Ocean Pines spends its money at other places “basically because the bar (at the Yacht Club) stinks.” In order for the club to be successful in the off-season he said the OPA needs to entice a bar crowd that will spend money during the winter months. To attract that crowd, the bar area needs to be expanded into the dining room in the off-season and the “simplest and most frugal way” to do so is to add high tops in the dining room area close to the bar, he said. “The year round bar crowd is spending money. They just don’t spend it

fter hearing that neither neighboring property owners nor staff with Compliance, Permits and Inspections has been successful in getting a property owner at 267 Windjammer Road resident to remove junk vehicles, the Ocean Pines Association Board of Directors opted to fast track prosecution of the case. In doing so, the board gave the approval to have the OPA attorney send a final letter directly to the property owner telling him to remove the vehicles and if that doesn’t prompt action, to then proceed with legal action. During the public comments section of the board’s Oct. 29 meeting, property owner Ann Shockley said there is an ongoing problem with violations at 267 Windjammer Road, which is down the

Medical complex From Page 25 ed it revisit the possibility of having a traffic light installed at the complexes entrance on Route 589. “So get people thinking about problems perhaps before they occur,” he said. Knepper said it isn’t going to matter if the traffic pattern is designed to permit only right turns in and right turns out of the property. When the medical complex opens, motorists wanting to go southbound are going to take the right turn only exit and make a u-turn anyway. “I’m with you. I know it’s going to happen,” he said. Another property owner on hand for the general manager’s Town Hall meeting asked about installing signage along Ocean Parkway to prevent motorists from making u-turns after the come into Ocean Pines. Thompson said the OPA does own the roads in Ocean Pines, even though they are public easement roads for use by anyone, and can install signs along Ocean Parkway as long as they meet the requirements of Worcester County code. However, he said installing u-turn signs wouldn’t make sense because it would cause problems for residents who live in homes along Ocean Parkway. He said residents who live along the northbound side of Ocean Parkway have to make u-turns to get to their homes when they come in the North Gate. The OPA can’t post the area as a no u-turn zone or those people will not be able to get to their homes. “A lot of people on the parkway pass their house and have to spin around to come to their house,” Thompson said. They are not likely to stop doing so even if the OPA were to post it as no u-turns allowed because they have been doing so for decades, he added.

OCEAN PINES OCEAN PINES BRIEFS From Page 26 here,” Lind told directors. “A lounge area with high tops would make a world of difference.” He added that when it comes to the Yacht Club losing money some people would argue that it’s an amenity of the community. But Lind said by definition it’s not an amenity. “It’s a retail business that sells a retail product at retail prices. That just happens to be located smack dab in the middle of Ocean Pines,” he said. The club is open to the public and there is no price structure that differentiates between property owners and non-property owners as do true amenities, he said. Lind asked the board to consider his suggestions during its upcoming budget deliberations.

Board rejects land on Nicholas Lane

The Board of Directors has turned down an offer to sell the Ocean Pines Association two acres of land on Nicholas Lane at the South Gate by the owner and original developer of the Village at Ocean Pines commercial area. OPA President Pat Renaud during an Oct. 29 meeting told board members that he was contacted by former developer Robert Douglas in early October about selling to the OPA the plot of land across

November - Early December 2015Ocean Pines PROGRESS the street from the shopping center with Taylor Restaurant and the Bank of Ocean City. The property is zoned for commercial use and was originally designated as wetlands. Douglas obtained a variance that will allow a parking lot of about 30 spaces to be built there. Directors agreed that they are not interested in acquiring the property, in part because they saw no need for the OPA to acquire land for a parking lot.

Board approves aerator purchase

After twice explaining to the Board of Directors why staff recommended buying one brand of aerator for use by the Ocean Pines Association’s public works department over another, General Manager Bob Thompson was finally able to secure purchase approval during the Oct. 29 board meeting. During his general manager’s report, Thompson presented information on the requested purchase, saying staff recommended buying the Jacobsen brand aerator at a cost of $11,660 including taxes. The lowest price bid was for a John Deere aerator for $10,655. He said staff wanted to buy the Jacobsen model because it is a deep tine aerator and has a wider base than the John Deere. Thompson said the aerator used by public works is broken and needs to be replaced. It is used for aerating the ball

fields and areas like Somerset Park. He said there is also an aerator at the golf course. It was a price adjustment after the board packet was distributed that confused directors. Thompson said the OPA used to get a discount on equipment when Billy Casper Golf was the golf course manager. The OPA was able to tap into that compBut when the equipment company found out that the OPA was no longer affiliated with Billy Casper Golf, the price of the aerator went up.

performances and seating is limited, so reservations are encouraged as soon as possible. Doors open for refreshment with preshow entertainment by The “Uke” of Earl at 6 p.m. on Friday and Saturday, with curtain time at 7 p.m. For the Sunday matinee, the doors open at 3 p.m. and the show starts at 4 p.m. Call 410600-0462 for reservations.

Pines Players to present two comedies Nov. 20-22

Historical fiction writer Jessica Jesm will be signing and discussing her latest book, “Meant To Be,” at Dazzle Gift Shop in the South Gate of Ocean Pines on Wednesday, Nov. 11, from 3-5 p.m. “Meant to Be” is about a chance encounter on the beach of Ocean City that ended 24 hours later when the couple parted to go their separate ways. But actually, it was just the beginning for them. They had no way of knowing that fate had another unexpected meeting for them where the stakes were life and death. The novel moves from the beauty and beaches of Ocean City to the danger of Afghanistan. It’s a gripping tale of espionage and intrigue taking readers on a journey into the secret lives of our nation’s quiet heroes. Dazzle Gift Shop is located in the Manklin Creek Shopping Center, South Gate Ocean Pines.

The Ocean Pines Players will present two one-act plays, Revenge of the Red Feather Ladies and The Red Feather Ladies Get Their Man, by Maxine Holmgren, Nov. 20-22 at St. Peter’s Lutheran Church in Ocean City. Together, these goofy plays demonstrate why it is not a good idea to get on the wrong side of six determined, angry, and slightly off-kilter women. The cast includes Edie Brennan, Sammy Barnes, Gina Ashton, Barb Gallagher, Dorothy Shelton and Betty Ann Harrington. Show dates are Friday–Sunday, Nov. 20–22 at St. Peter’s Lutheran Church on 103rd St and Coastal Hwy in Ocean City. All seats are $15, which includes free wine, punch, and snacks before the show and desserts, coffee, and tea at intermission. There will only be three

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28 Ocean Pines PROGRESS

OPA FINANCES

November - Early December 2015

OPA earns $126,447 in September, ahead of budget by $176,128 Yacht Club records fifth consecutive operating surplus, aquatics has positive variance to budget of $93,741 By TOM STAUSS Publisher ajor amenities in Ocean Pines continue to perform well so far in the 2015-16 fiscal year, with results in Controller Art Carmine’s September financial report indicating solid results for major amenities. Marinas, the Yacht Club, Beach Club, and golf generated operating surpluses for the month. While aquatics lost $14,053, it outperformed its budget in September by a substantial $25,691. Five months into the fiscal year, aquatics is $93,741 ahead of budget, by far the best performing department relative to budget in Ocean Pines. An allocation of roughly $48,000 from Beach Club parking revenues certainly contributed to the bottom line, but increases in revenues over projections and cost controls told the rest of aquatics’ story so far into the fiscal year. Through September, aquatics has a surplus of $173,611. A year ago, the surplus through September was roughly $51,000, so the year-over-year improvement is about $123,000. The Yacht Club recorded a surplus of $8,119 on the strength of banquet business in September. In his monthly report to the Board of Directors Oct. 29, To Page 32

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LIFESTYLES

November - Early December 2015

Monday, Nov. 9 Ocean Pines Comprehensive Plan committee meeting, 4 p.m., Ocean Pines administrative building. Public welcome. Topic: the results of two focus groups in the process of developing questions for a community survey. Wednesday, Nov. 11 Veteran’s Day ceremony, hosted by the Worcester County Veterans Memorial at Ocean Pines Foundation, Memorial Park, South Ocean Pines, 11 a.m. Master of ceremonies, Memorial co-founder Sharyn O’Hare. Guest speaker: Worcester County Attorney John “Sonny” Bloxom, a graduate of the U.S. Merchant Marine Academy deck officer in the Merchant Marines for nine years, and a retired commander in the U.S. Naval Reserves. Thursday, Nov 12 Monthly meeting, Worcester County Tea Party, speaker series, 7 p.m., Ocean Pines Library. Topic: The Worcester County Tea Party, Four Years Later... Issues Update and Election Year 2016. Free, open to the public. Saturday, Nov. 14 Ocean Pines Anglers Club, monthly meeting, 9:30 a.m., Ocean Pines Library. Guest speaker: Bob

HAPPENINGS Cooke, certified Coast Guard Auxiliary instructor and Dept. Of Natural Resources police instructor. Topic: Maintaining and winterizing your trailer, boat, engine – and yourself. All welcome. Flag retirement ceremony, Veterans Memorial, South Ocean Pines, 10 a.m. Faded or worn American flags may be dropped off before and immediately after the ceremony for disposal. Chili cook-off, sponsored by the Democratic Women’s Club of Worcester County, 5-8 p.m., Ocean Pines Community Center. Enjoy various chili reciples and vote for your favorite. $10 which includes appetizers, chili, and dessert. Beer, wine and soft drinks will also be provided. Harriet, 302-988-1268, for reservations. Sunday, Nov. 15 Ocean Pines holiday vendor show, Ocean Pines Community Center, 10 a.m. to 2 p.m. Jewelry, cosmetics, handbags, essential oils, gourmet food items and more. Origami Owl, Mary Kay, DoTerra, Tastefully Simple, Pampered Chef, Thirty-One Gifts, Tupperware, Avon and Silpada. Free and open to the

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public. 410-641-7052. Sharing Sunday, collection of nonperishable food, toiletries, and paper products, Democratic Women’s Club of Worcester County, Southside fire station, Ocean Pines. Items for the Santa’s Sack project and blanket drive. 410-641-8553 for further information Monday, Nov. 16 Democratic Women of Worcester County, monthly meeting, Ocean Pines Community Center, 10 a.m., coffee and conversation 9:30 a.m. Guest speaker: Seta Martin, a certified Yoga instructor, on the need for fitness at all stages of life. 814-322-2119. Tuesday, Nov. 17 The Worcester County Commission for Women, monthly meeting, 5-6 p.m., Worcester County Board of Education, 6270 Worcester Highway, Newark. Women of all ages are invited to attend. Thursday, Nov. 19 Republican Women of Worcester County, November dinner meeting, Golden Sands Condominium, 109th St, Ocean City, doors open 5:30 p.m., dinner 6:30 p.m. Guest speaker: Ellen Sauerbrey, former representative to the United Nations on the Status of Women, Economic Council of the United Nations, with the rank of Ambassador. Reservations, Ann Lutz, 410-208-9767 or annlutz@verizon.net Friday, Nov. 20 Ravens’ Roost guest bartending event, Captain’s Galley, West Ocean City, 6-9 p.m. to benefit Atlantic General Hospital’s Penguin swim. Happy hour specials and live music by Side Project. Guest bartenders to include AGH’s Michael Franklin, Tammy Patrick, Salvatore Fasano, Maggie Miller, Tom Maly, Colby and Duane Phillips, and JL Cropper. Free admission.

Friday through Sunday, Nov. 20-22 Ocean Pines Players’ presentation, “Don’t Ruffle the Red Feathers,” a comedy about six women on a mission of revenge. St. Peter’s Lutheran Church Life Center, 10301 Coastal Highway, Ocean City. $15 ticket includes wine, punch, snacks, and entertainment before the show and dessert, coffee, and tea at intermission. Also, crafters, a 5050 Raffle, and a silent auction. Friday and Saturday doors open 6 p.m., show at 7 p.m. Sunday matinee, doors open at 3 p.m., show at 4 p.m. Reservations 410600-0462. Ongoing Free platform tennis clinics, Saturdays at noon, Manklin Meadows tennis complex. Bring sneakers, the rest is provided. Annual memberships start at $150. Genealogy Group walk-in discussion, Tuesdays, Sept. 15, Oct. 20, Nov. 17, Dec. 5, 10:30 a.m.-noon, Ocean Pines Library. Pinesteppers Square Dance Club, Wednesdays, 7-9 p.m., Ocean Pines Community Center with caller Dennis O’Neal. Visitors welcome. The group also hosts a dance the fourth Saturday of the month from 7-9:30 p.m., Ocean Pines Community Center. Guest callers lead the dancers with music and choreography. Mainstream/Plus square dancers welcome to join in. President Arlene Hager, 302-436-4033. Pine Tappers free adult tap dance classes, Tuesdays, 2-3:30 p.m., Ocean Pines Community Center. Exercise and have fun with choreographed tap dancing routines. From 2-2:30 p.m., brush up on basic techniques and a review of the routines, then join the regular class from 2:30-3:30 p.m. Every week or drop-in as convenient. Lori at 410-251-2162 or tntandcompany@gmail.com. Ocean Pines Ping Pong Club, Ocean Pines Community Center, Monday noon to 2 p.m, Wednesday and Friday noon to 3 p.m. All levels of players welcome. Neil Gottesman, 732-773-1516.

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November - Early December 2015

OPA financials

From Page 28 General Manager Bob Thompson said September’s surplus represented the fifth consecutive profitable month for the Yacht Club this fiscal year, the first time this has happened since the mid1990s. The Yacht Club through the end of September is in the black by $217,123. A year ago the surplus was $71,454; the year-over-year improvement is $145,669. The Yacht Club bettered its budget for September by $11,735. Those looking to find a dark cloud in the silver lining can point to $36,077, the number associated with the Yacht Club’s negative variance to budget through the end of September. September results showed three amenities that effectively ended their operations for the year – marinas, Beach Club food and beverage, and Beach Club parking – all exceeded their budgets by substantial margins while producing substantial surpluses for the OPA. Beach Parking netted $384,798 through September, $28,741 better than budget. Marinas had a $218,157 surplus through September, with a positive variance to budget of $53,712. Beach Club food and beverage operations netted $164,801, which was $50,611 over budget. Golf and related food and beverage operations did well in September, producing a $25,998 surplus. That was $20,131 better than budget. For the year so far, golf is $120,464 in the black, behind budget by $23,342. The golf course under 06 Oasis Travel-Ad 10/29/2015 2:53Landscapes PM Page 1 Unlimited management is significantly ahead of Billy Casper Golf, however, the previous management company, through September. BCG’s surplus

through September of last year was $86,621. The year-over-year improvement in net operations is $33,843, which LU accomplished despite worrying erosion in the membership base. LU was hired to replace BCG on the strength of its pledge to implement programs to reinvigorate membership, which it did not have time to implement in the first year of its three-year management contract. According to Controller Art Carmine’s monthly report for September, the OPA generated a positive operating fund balance of $126,447 in the month, on revenues that outperformed budget by $60,865 and expenses that were under budget by $65,574. New capital spending was under budget by $8. For the first five months of the fiscal year – May through September – the OPA had a positive operating fund variance of $176,128, on revenues that were under budget by $79,530 and expenses under budget by $263,925. New capital was over budget by $8,267 through September. Status of the balance sheet: According to the Sept. 30 balance sheet, the OPA has assets valued at $34.39 million, against liabilities of $1.6 million and owner equity of $32.78 million. The September balance sheet indicates that the OPA had $2.4 million in operating cash on hand as of Sept. 30, compared to $1.8 million a year prior. Short term investments were valued at $7 million as of Sept. 30, compared to $5.6 million a year ago. Status of reserves: The reserve summary released as part of the August financials indicates that the OPA’s total allocated reserve balance stood at $6.5 million, a modest reduction from the August balance of $6.6 million.

Hearn, Glick, Silfee re-elected to Cove Board of Directors By TOM STAUSS Publisher here was no surprise in the outcome given the widely assumed expectation that developer/declarant votes would be cast for the three incumbents seeking re-election to the Captain’s Cove property association’s Board of Directors. The election results announced at the annual meeting of the Cove POA Nov. 9 made it official. Winning new three-year terms to the board were incumbent president Tim Hearn, with 4,091 votes; Michael Glick, with 4,063 votes; and Jim Silfee, with 4,063 votes. Diane Eicher, running unopposed, collected 4,483 votes as the alternate director. She will have a seat on the board and can cast a vote in the absence of any of the regular seven board members. The only suspense in this year’s election was whether the declarant/developer, CCG Note LLC, would cast its roughly 1,350 votes for its preferred candidates using the three-for-one voting privilege that was ratified as part of the 2012 settlement agreement that ushered in a power shift in Captain’s Cove. The 4,000-plus votes for Hearn, Glick and Silfee made it immediately obvious that the three-for-one vote privilege was

exercised. It was not necessary given the number of votes cast for the second tier of candidates, whose vote support was based among year-round resident homeowners. The second tier of candidates with votes in excess of 500 were Arline Curtis, with 570 votes; former Cove general manager Lance Stitcher, with 526 votes; and Janice Widnyer, with 512 votes. These three candidates would have won election had no developer/declarant votes been cast this year. As was evident at the annual meeting when they expressed themselves during the member forum, many resident homeowners resented the outcome of the election because, unlike the declarant/developer, they pay annual lot assessments. The declarant/developer is exempt from them by virtue of a provision in the Cove’s articles of incorporation that are more than 40 years old, a fact that Hearn told unconvinced residents would be impossible to undo. The other unsuccessful candidates running in the election were Rick Painter, with 89 votes; Christine Federroll, with 63 votes; and Timothy Walch, with 26 votes. During the member forum, Federroll told the assembled property owners that she has owned four lots in Captain’s Cove for ten years, paying about $32,000 in lot assessments, or dues as they’re called in the Cove, during that time. To raucous applause, she said she would be meeting with University of Maryland law school professors to pursue the possibility of initiating a class action lawsuit to overturn the developer/declarant’s voting rights in annual Cove elections. The Concerned Citizens of Captain’s Cove, an activist group of residents, is reportedly investigating a similar objective legislatively with local members of the Virginia General Assembly. Hearn during the annual meeting also addressed a frequent complaint among property owners who own unimproved lots in Captain’s Cove. He said community covenants that require an affirmative vote of 2000-plus votes to change mandate level assessments whether or not it’s been improved by a home. He said that means that property owners who own a lot in sections that are currently uinbuildab;e because of a lack or roads and utilities have to the pay the same $1200 annual lots as homeowners. Establishing a tiered systems of assessments isn’t likely to succeed be-

32 Ocean Pines PROGRESS

November - Early December 2015Ocean Pines PROGRESS

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34 Ocean Pines PROGRESS Cove election

CAPTAIN’S COVE

November - Early December 2015

From Page 32 cause homeowners would vote against any change that would result in higher assessments for themselves, Hearn said Accounts receivable: Also discussed during the annual meeting and a Board of Directors meeting on Nov. 6 is the reported $3.9 million owed to the Cove POA by delinquent property owners. Hearn said the association will be moving ahead with a more aggressive

effort to collect these past due assessments, by hiring a collection agency to pursue the $1.66 million that is owed by former lot owners. “Much of that is really stale,” Hearn said of some bad debt that dates back decades. One entity, according to a schedule that was published as part of the Nov, 6 meeting agenda, owes more than $200,000. CCGYC, LLC, is said to include as one of its partners an individual, Roger Young, associated with former developer/declarant Bob Warfield,

Hearn said. He did not express a lot of confidence in the ability of the Cove to collect the delinquent assessments from this limited liability corporation. Hearn said that in one respect the Cove’s receivables situation has improved year-over-year. He said roughly $600,000 in receivables that were less than 270 old as of Sept. 30, the end of the fiscal year, is three percent less than the amount owed in September of 2014. 2014-15 financial results: Hearn reported that Cove POA recorded a

$170,000 surplus for the year that ended Sept. 20. It was $47,000 better than budget and the best financial performance for the Cove in the past ten years, Hearn said. These results, still subject to a final audit, were achieved even with the expenditure of more than $300,000 in significant capital expenditures, including a new pumphouse and bathrooms for the Marina Club pool, gambion removal, and road paving. Hearn said the Cove is in good financial condition despite the contrary view of critics.

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OPINION

November - Early December 2015Ocean Pines PROGRESS

COMMENTARY

A reasonable compromise on OPA budget guidance

nly diehard observers of the protracted process that leads to the drafting, review and final approval of the annual Ocean Pines Association budget will much care, but there already has been at least one concrete improvement in the way the OPA will be budgeting for capital improvements in the future. In September, the directors were considering the usual boilerplate “budget guidance” for the coming budget review, with one somewhat interesting twist. It was a recommendation by the Budget and Finance Advisory Committee for a rolling, multi-year capital budget. The proposal seemed to convey the impression that once proposed and approved by the board, a particular project would have had an “automatic” approval in a future year’s capital budget even if it was not undertaken and/or completed in the year in which it was approved. During the September discussion, newly elected Director Cheryl Jacobs forthrightly expressed her concern about the proposed “rolling” capital budget but seemed to have some difficulty in persuading her colleagues to her point of view. She objected to any automatic carry-over of budgetary authority, an early sign that she will be taking her oversight role over OPA spending very seriously indeed. Her arguments must have had an effect, because, at the board’s October meeting, proposed language about “rolling” capital budgets seems to have been watered down considerably. While the proposed board guidance continued to include mushy and opaque language

about “multi-year foresight” – whatever that might be – and that “dollars will be approved on multi-year plans,” troubling language that remains, OPA treasurer Tom Terry said that the original proposal for a rolling multi-year capital budget is no longer part of the budget guidance. Given the continued presence of troubling language, however, vigilance must be exercised to verify that, in the budget draft to be presented early next year, management in fact has not attempted to insert a rolling capital budget into the mix surreptitiously. Trust but verify, to coin a phrase. While not part of the part of the budget guidance document presented by Terry for review at the Oct. 29 meeting, he suggested a sensible “compromise” between the status quo of a single-year capital budget and the rolling multi-year budget suggested by the budget committee. His proposal was presented during board discussion as an alternative to the pernicious, traditional practice of including certain “placeholder” projects in the capital budget that management had no intention of starting, or could not complete in the year in which they were approved. Terry, the OPA treasurer, said management, instead of including “placeholder” projects in the capital budget with cost

projections that are little more than guesswork, should be directed to include in its capital budget funds for preliminary engineering studies and other supporting research into projects deemed important and desirable. Terry made it clear that the source of these engineering and related studies would be the OPA’s replacement reserve funds, as opposed to operating funds. After some initial debate over the funding source, the directors seemed to agree among themselves that Terry’s “compromise” made good sense. Presumably, it will become part of a revised budget guidance document that will be considered by the directors in a special meeting to be called later in November. In fact, this proposal by Terry isn’t really a compromise. If it truly leads to the exclusion of unsupported placeholder projects from the OPA capital budget, then it’s a budgetary reform that is laudatory on its face. If indeed rolling, multi-year capital budgets with carry-over funding authority don’t appear in management’s draft budget for 2016-17, or don’t magically appear in the final draft, then this is no compromise. It would constitute the prevention of a bad idea from gaining traction and entrenchment, the way certain other budgetary policies have gained a foothold in the OPA budget over the years. - Tom Stauss

Another view on Yacht Club leasing stairs kitchens, so be it. Lind also is dead set against any scenario in which the OPA’s new $5 million (and rising) restaurant, bar and banquet facility, particularly the downstairs, is closed for the winter, or a portion thereof. In this instance, we’ll just have to agree to disagree. At the same time, if a lessor can make winter operations work, then that is clearly more desirable than a summer-only scenario.

Through September, the Yacht Club has generated a $217,123 surplus for the fiscal year, recording five consecutive profitable months of operation beginning in May. OPA management is justly proud of the fact that this is the first time that such a winning streak has occurred since the mid-1990s. Lind is probably correct in his conclusion that September’s $8,119 surplus is due almost entirely to the banquet business. Without banquet profits, it’s

probably the case that the Yacht Club would have generated a loss for the month. OPA’s cost accounting isn’t sufficiently detailed to be able to quantify banquet costs from regular food and beverage, making it difficult to know for sure. Even so, there is every reason to keep the facility open so long as banquets can be sold. Traditionally, the Yacht Club begins to erode substantial surpluses generat

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lsewhere in the opinion section of this edition of the Progress, former Clubs Advisory Committee member Steve Lind expounds on an idea that apparently hasn’t gained much traction among his former committee colleagues. Leasing out the Yacht Club to a competent restaurateur with a proven record of accomplishment indeed is an idea whose time has come. Lind takes the Progress to task for a previous editorial suggesting one possible way to structure a lease: finding an entrepreneur to run the downstairs operation while retaining in-house management of the banquet business on the upper level. While not quite “the nonsense” proposal that Lind suggests, he may well be right that prospective lessors will be less interested in leasing out the Yacht Club if the lucrative banquet business isn’t part of the package. Whether it would be a deal-breaker really can’t be known unless a process is established in which proposals for Yacht Club leasing are actively and intelligently solicited, without the preconceived bias that there’s very little interest in the private sector to take on management of an OPA amenity. Lind also assumes, perhaps correctly, but perhaps incorrectly, that various profit-sharing scenarios will never be accepted by potential lessors. A request for proposals can offer possible scenarios; interested parties can craft and submit proposals for whatever scenario or scenarios make sense to them. If it turns out that potential lessors are interested only if they can control both the upstairs and down-

36 Ocean Pines PROGRESS

November - Early December 2015

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OPINION

November - Early December 2015Ocean Pines PROGRESS

Golf course oversight roils OPA board

asual observers can be forgiven if they attribute recent sparring among the directors over OPA oversight of golf course operations under Landscapes Unlimited as a clash of egos – a former OPA President, Dave Stevens, in a contest with his successor, Pat Renaud. Both were elected on an insurgent slate in the summer of 2014 as erstwhile allies but soon found themselves gazing out on the scenic Ocean Pines policy and political landscape through differing lenses. In the second year of their threeyear board terms, the competition has only intensified, with Stevens making it abundantly clear he doesn’t think much of the way his successor has been running the OPA since the board reorganization in August. It’s not so much a clash of egos as it is a fundamental disagreement over the limitations and powers of the presidency and the way they’re being exercised. At the October regular meeting of the board, Stevens weighed in against Renaud’s appointment of himself, directors Tom Terry and Bill Cordwell as a three-member board golf oversight committee. Stevens objected to the appointment because it had been made unilaterally by Renaud, without the consent (or even discussion) by the rest of the board. Stevens said he learned of the appointments by reading a recent edition of the Progress. Stevens, joined by Director Jack Collins, also faulted the fact that the oversight group is composed of two directors – Terry and Cordwell – who voted against the board decision last year to replace Billy Casper Golf with Landscapes. While Renaud voted for the change in management firms, more recently he has expressed some reservation about how LU has managed the Ocean Pines golf course early in its three-year contract, especially in the area of rebuilding a rapidly aging and declining membership base. In Collins’ turn of phrase, the oversight committee is unbalanced. Indeed, it is indisputable that the

Yacht Club leasing From Page 35 ed during the summer by staying open three or four days a week during the cooler and colder months, serving a relatively small percentage of the OPA membership during this time. Lind correctly observed that the downstairs as it’s presently configured is not likely to generate much business this time of year. Winter losses may not occur to the same extent this year, because Yacht Club manager Jerry Lewis has already demonstrated a talent for controlling costs relative to actual revenues generated. This demonstrated ability could

simple oversight. Cordwell could not be reached for his comments to be included in this edition of the Progress. An excursion through the curious by-ways and cul-de-sacs An excursion through the curious by-ways and cul-de-sacs Collins said the lack of sharing was of Worcester County’s County’s most densely community. of Worcester mostpopulated densely populated community. a violation of the spirit and intent of By TOM STAUSS/ By TOM Publisher STAUSS/Publisher the board in drafting the contract with Landscapes. He said the intent of the process last year was for an inclusive, oversight group is skewed towards di- they said they might do some review open process by which Landscapes rectors who were opposed to the man- of meeting minutes to either prove or shares its objectives and plans with the agement change, so Stevens and Collins disprove Stevens’ contention of a more community, both golfers and non-golfhave a point. Also on the oversight panel inclusive appointment process when he ers, in a timely way. is OPA General Manager Bob Thomp- was president. The implication: The oversight comson, who made no secret of the fact that No doubt there would have been a mittee already is functioning in a less he very much preferred to retain BCG as vigorous discussion had Renaud brought than transparent manner, and in a way the golf course management company. his oversight panel appointments to the that could be interpreted as obstructing Another way to look at the oversight board for review and approval. It’s even or delaying the roll-out of Landscapes’ committee is that the four individuals possible that Collins, the liaison to the plans for rebuilding the depleted memwho serve on it can’t be accused of be- OPA golf committee in the last board bership base. ing uncompromising cheerleaders for term, would have been added to it inStevens and Collins also pressed Landscapes, in the way that it seemed stead of Cordwell or Terry or even Re- for an “open” quarterly meeting with that Thompson had been for BCG in the naud. As someone who was very much LU executives scheduled for Nov. run-up to the management change. Un- in favor of replacing BCG with Land- 6 – a meeting they hoped would be less these four individuals are hellbent scapes, and who headed the lengthy pro- accessible to the entire board and OPA at replacing Landscapes at the earliest cess that resulted in a new management membership. Renaud told the Progress that opportunity, their pro-BCG bias in the company for Ocean Pines in the previselection process doesn’t necessarily ous board term, Collins’ presence on the while he couldn’t prevent any board presage a problematic exercise of their oversight panel would have provided the member from attending the meeting, he envisioned it as a private one between Landscapes’ oversight role. balance that now is lacking. It’s useful to have an oversight comIn addition, neither Terry nor Re- LU executives and the three-member mittee that is actually interested in naud are golfers, while Collins is an avid oversight committee plus Thompson. By not opening the meeting to the oversight, rather than rubber-stamping golfer and a long-time member of Ocean and cheerleading whatever it is that the Pines’ golf club and another area golf media and the OPA membership, it constitutes a missed opportunity for management company proposes. course. Laying aside the issue of whether ReStevens and Collins also are making LU to sell its membership plans to the naud has the authority under OPA by- an issue out of the fact that a Land- Ocean Pines community. laws or other OPA founding documents scapes’ document detailing the compato make appointments, comity on the ny’s proposal for beefing up the deterioboard would have been preserved and rating membership base in Ocean Pines even enhanced had the board president seems to have been closely held among asked his colleagues to approve his ap- the golf oversight panel rather than pointments. This is the normal proce- shared with the rest of the board. SeemThe Ocean Pines Progress, a journal dure when it comes to committees, es- ingly not wanting to get in the middle of news and commentary, is pubpecially among the advisory committees of board crossfire but not having much lished monthly throughout the year. It is circulated in Ocean Pines, Berlin, that provide advice to the board. Stevens choice in the matter, Thompson told Ocean City, and Captain’s Cove, Va. told Renaud and his colleagues that as the directors that he gave a copy of the Letters and other editorial submispresident he had always advised his col- membership proposal to Cordwell about sions: Please submit via email only. leagues of appointments before making a month before the October board meetLetters should be original and excluthem, in effect (if not explicitly) giving ing. sive to the Progress. Include phone them the opportunity to oppose them. It was clear that Cordwell for whatnumber for verification. Following the October board meeting, ever reason didn’t share the document both Renaud and Terry said they didn’t with his colleagues, and for his part 127 Nottingham Lane remember Stevens’ term that way, and Thompson didn’t seem particularly upOcean Pines, MD 21811 set by that, telling the board that the proposal needed some “tweaking” before PUBLISHER/EDITOR serve to lessen the typical losses that oc- it was presented to the board and public Tom Stauss as a fait accompli. cur during the winter months. tstauss1@mchsi.com That didn’t sit well with Stevens and 433-359-7527 Lind’s guest commentary offers some Collins, who said it should have been provocative insights on the Yacht Club Advertising Sales that should generate interest from given to all board members as soon as Frank Bottone among those who want to eliminate or Thompson and Cordwell had it. Thompson said he had fulfilled his 410-430-3660 reduce operating subsidies in some key duty by giving Cordwell a copy. Was OPA amenities. ART DIRECTOR If only there were some OPA direc- Thompson throwing Cordwell under the bus for not sharing the document with Rota Knott tors among them. In lieu of the OPA management se- the rest of the board? It kind of seemed CONTRIBUTING WRITER riously considering a lease option, per- like it, although, as is the general manRota Knott ager’s custom, shifting blame from himhaps the impetus for it will need to take InkwellMedia@comcast.net self to someone else is done with aplomb shape in the form of a petition drive 443-880-1348 and plausible deniability. among the OPA membership. Cordwell wasn’t at the October meetNow that he’s off the clubs commitPROOFREADER tee, Lind would seemingly be an ideal ing to defend himself, and it’s very posJoanne Williams person to spearhead that effort. -- Tom sible his decision not to share the document was intentional rather than a Stauss

LIFE IN THE LIFE INPINES THE PINES

38 Ocean Pines PROGRESS

OPINION

November - Early December 2015

An idea whose time has come: Lease out the Yacht Club By STEVE LIND Special to the Progress lthough the Progress is my go-to publication for all the news that is Ocean Pines - - which includes its insightful coverage of the inner workings of the OPA - - I must respectfully disagree with a commentary by Tom Stauss that appeared in the last issue. While I agree with the basic premise of leasing the Yacht Club business to a local restaurateur - - someone with name recognition would be preferable - some of his specifics make no sense at all. Two options are presented by Mr. Stauss which would supposedly relieve the property owners of the yearly Yacht Club subsidy, a subsidy that has hovered around two-hundred thousand dollars per year during the 15 years that I’ve lived in Ocean Pines. Option one “... would be to close everything but banquets and special events after Labor Day, thereby preserving the summer surpluses and adding to them by continuing the part of the business that even Ocean Pines can’t screw up.” So a ‘solution’ is to shut the place down to the folks who paid the tab on the new Yacht Club campus, while providing a first class venue to the mostly non property owners who populate the banquet hall throughout the year. That solution of course accomplishes nothing other than giving the OPA a pass for being perpetually unable to

GUEST COMMENTARY

Steve Lind is a former member of the Ocean Pines Association’s Clubs Advisory Committee and a long-time Ocean Pines resident and property owner.

“The fact is, there are more than enough year round residents to make the winter season financially successful for the Cove but they spend their money in other places. We have lost them as customers because of the totally inadequate bar area and the bland dining area ...” STEVE LIND administer a multi-million dollar bar/ restaurant/catering business. In other words, Mr. Stauss suggests that rather than providing both a gathering place and a service for our year round residents, we should shutter our $5 million investment basically before the paint on the new building has had time to dry. The fact is, there are more than enough year round residents to make the winter season financially successful for the Cove but they spend their money in other places. We have lost them as customers because of the totally inadequate bar area and the bland dining area, and our loss has been the gain of places like the Sunset Grill, The Shark, Waterman’s, Captains Galley, Taylor’s, La Hacienda, all of which reap the benefits of an Ocean Pines population that doesn’t patronize the bar/restaurant in its own back yard. According to Mr. Stauss, “The other option would be to lease out the downstairs bar and dining room to a competent, seasoned restaurateur . . . “The OPA could continue to operate the banquet business on the second floor.” Folks, a competent, seasoned restau-

rateur who takes that deal would close the place down for the winter in a heartbeat, giving us the same ‘slam the door in the face of the year-round property owners’ scenario that I laid out above. And this option defies common sense considering that Mr. Stauss tells us that “The OPA still hasn’t figured out how to separate out banquet operations from regular food and beverage . . .” Are you kidding me? What competent, seasoned restaurateur would lease only the downstairs for x amount of dollars having no idea what the Cove actually makes? Sure, we can tell a potential ‘downstairs’ lessor about the $209,004 summer surplus, but what do we say when asked how much of that surplus came from Cove profits? If the banquet hall and The Cove operations are lumped together as reported, then “we don’t know” would have to be the answer. And what if the Cove actually lost money in the summer, and the combined banquet hall/Cove surplus would have been even greater had it not been for Cove losses? The truth is that Cove summer business is quite slow Monday to Thursday compared to other ‘seasonal’ businesses, with most of the weekday spending coming from Wednesday Family Fun Night. (But even on Wednesdays, the place empties out

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as soon as the pool closes at 8 p.m.) The point is, can we even find someone who is willing to lease only “the downstairs bar and dining room” under these circumstances? Finally, Mr. Stauss’ plan anticipates a scenario in which leasing out only the downstairs could result in “ . . . the OPA sharing in the profits or even taking a percentage of the gross.” To that I say, considering all the above, the OPA has nothing but ‘maybes’ to offer a potential lessor; good luck in getting a lessor to agree to “sharing profits” and/or allowing the OPA to take “a percentage of the gross”, especially when Mr. Stauss’ reporting indicates that nobody even knows if the downstairs generates profits. In any event, isn’t eliminating the Yacht Club losses of 200k a year a ‘profit’ of sorts? A profit for property owners, that is, property owners who surely wouldn’t miss the six figure yearly losses that they subsidize year after year. The OPA should be happy with that potential jackpot and not scare off lessors by making demands that are not based on the reality of the situation. If we truly expect a savvy local businessman to even talk to us about leasing the Cove, we’d have to make an offer he/she can’t refuse. After all, the lessor would have to invest his own money to succeed (the Cove is an unfinished ‘starter project’, and the inside bar is the size of Seacrets’ coat closet). Add to that the fact that under the Stauss plan the lessor would get the basement while the OPA gets the penthouse; the OPA would hardly be negotiating from a position of strength. There is a way to go about this, if the OPA had the will to do so. Form a ‘search and negotiate’ team led by OPA attorney Joe Moore, with team members who are local real estate businessman, such as Marvin Steen, Hal Glick, Jack Burbage, etc. Get the property owners off the [200k] hook by offering a fair lease and then negotiating favorable terms in return, terms which should include making the Cove available to the community Thursday to Sunday throughout the winter, as well requiring that the lessor hire our very competent manager (Jerry Lewis), while allowing him to keep the staff members of his choosing. It’s a win-win situation for the assessment-paying property owners. And getting back to Mr. Stauss’ rosey scenario of “ . . . the OPA sharing in the profits or even taking a percentage of the gross”, there is no way that can happen leasing out the downstairs only, as discussed above. The simple solution is to lease out both the upstairs and downstairs, to the right person of course. No six figure losses, and collecting rent to boot.

November - Early December 2015Ocean Pines PROGRESS

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40 Ocean Pines PROGRESS

November - Early December 2015

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