November 2018 Ocean Pines Progress

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November 2018

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Buried in the results of a member survey just released by the Ocean Pines Association is this remarkable result: More than two thirds of responders support conducting a referendum on levying limited and capped fines on property owners who run afoul of covenants and regulations enforced by the OPA. ~ Page 10

THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY

COVER STORY

Bailey recommends against outsourcing financial management Legum and Norman, an HOA management company that was a contender to assume management of the Ocean Pines Association last year, is in the running again to run ‘back-office’ financial functions. But OPA’s general manager says the firm’s services would cost more than keeping management in-house and buying new management software from NorthStar Technologies By TOM STAUSS Publisher our companies, including one that was in the running in the summer of 2017 to assume day-to-day control over management of the Ocean Pines Association, have responded to a recent request for proposals to assume control over functions currently done in-house by the OPA’s finance department. But General Manager John Bailey, in a report to the Board of Directors early in November, recommends the rejection of all four proposals and renews his call for the acquisition of management software by NorthStar Technologies and keeping financial management in-house under the supervision of Director of Finance Steve Phillips. Acquiring the software could cost the OPA around $1 million over six years, according to earlier reports.

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Bailey says outsourcing financial management to Legum and Norman, which he said submitted the most credible proposal among the bidders, was more expensive than keeping management in-house and upgrading software. With upgrade options included, Bailey’s report suggests that L&N management would require an assessment increase to be affordable. The Budget and Finance Advisory Committee reviewed Bailey’s report and recommendation in a meeting Nov. 14. The committee’s chairman, OPA Treasurer and Chief Executive Officer John Viola, said following the meeting that no decision has been finalized and that, rather than make a recommendation, the committee will leave the issue in the hands To Page 40

Daly recommends, then pulls proposal for temporary golf course closure ~ Page 6 The New

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Board directs GM to find ways to cut operating budget It hasn’t received much attention and never was voted on formally by the Board of Directors, at least in public session, but General Manager John Bailey has been directed to prepare a list of targeted cost reductions for board review during the budget approval process. In a recent email to the Progress, Director Frank Daly said that the board had directed Bailey “to develop a list of potential cost reductions for Board review and action that will achieve a 2.5% or greater reduction in the operating budget” in 2019-20. ~ Page 19

Board rejects motion to seek golf course lease proposals A motion by Director Slobodan Trendic to direct the general manager to issue a request for proposals for leasing out the Ocean Pines golf course failed for lack of a second. But the Board of Directors, in discussion after the motion, agreed that the idea warranted further research, and Trendic later said he wasn’t giving up on the idea even while he respected the judgment of his colleagues. The motion was offered by Trendic late in the Nov. 10 meeting of the Board of Directors. ~ Page 33


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November 2018

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Board takes two votes by email

It takes all seven directors to agree to conduct a board vote by email. It doesn’t happen all that often. But last month, the board vote to decide two issues via email, avoiding a special meeting. The first action taken was to accept the terms of dismissal of the Brett Hill election lawsuit. The second action was to launch the second phase of the forensic audit, focusing on the Public Works Department. The first phase, final conclusions of which have not been posted on the Ocean Pines Association Web site, involved a detailed look at food and beverage operations. Monthly recaps of the first phase ended with a summary of August activities. Both votes were announced at the board’s Oct. 20 meeting by OPA Secretary Colette Horn.

Board approves greens mower

OCEAN PINES

November 2018

The Board of Directors at its Oct.

OCEAN PINES BRIEFS 20 monthly meeting approved a $25,658.91 expenditure, $9341 less than budgeted, for a new tri-plex mower to be used to cut greens on the Ocean Pines golf course. The successful low bidder was Textron Golf-Jacobsen of Sandston, Va., with other bids coming at $31,892 and $41,582. The budgeted amount was $35,000.

Line striping of parkway, Cathell Road to proceed

With no debate or dissent, the Board of Directors during its Oct. 20 monthly meeting authorized the general manager to enter into a contract with Straight Line Striping of Georgetown, De., for line striping of Ocean Parkway and Cathell Road, in a contract amount not to exceed $24,494. The motion by Director Ted Moroney was intended to address numerous complaints received by the OPA about poor visibility of road line striping on these two major

thoroughfares. The low bid compares favorably to the $40,250 included in the current discal year’s roads budget for line striping.

Committee changes delete references to GM

Advisory committees first began serving as informal advisors/information-gatherers for the general manager under the administration of former GM Bob Thompson, eroding their historic role in Ocean Pines as advisors to the board.

New state’s attorney announces prosecutor

On second and final reading during its Oct. 20 monthly meeting, the Board of Drectors ratified changes to various resolutions governing advisory committees. While some of the changes amounted to minor word-smithing, perhaps the most significant changes involved deleting references to the general manager. Previously, the resolutions called for the advisory committees to work with the general manager on topics related to the committees’ purviews. The revised versions restore the original intent of the advisory committee as providing information and recommendations to the Board of Directors.

Kristin Heiser, the newly elected state’s attorney for Worcester County, appeared before the Board of Directors at its Oct. 20 monthly meeting, making news by announcing that when she takes office in January, one of the first orders of business will be to assign an assistant state’s attorney as a “special prosecutor” focusing on crimes that occur in Ocean Pines. Ocean Pines has been designated one of the safest communities in Maryland, but Heiser said there remains a need for a community-based prosecutor, someone who will be “pro-active, responsive, communicative,” and on-call whenever q

4 Ocean Pines PROGRESS

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November 2018 Ocean Pines PROGRESS

Christmas tree decorating White Horse Park will soon look like a winter wonderland with uniquely decorated Christmas trees. Businesses, local organizations, neighborhood groups, clubs and residents are invited to sponsor a tree that ranges from 8 -10 feet for $50. The trees, decorated by the sponsors, will be on display at White Horse Park beginning Nov. 23. The Ocean Pines Recreation and Parks Department has trees available for decorating. The program culminates in an event for the whole family, on Saturday, Nov. 24, at 6:30 p.m., when guests can view the trees and enjoy holiday activites.

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Earlier this year, OPA General Manager John Bailey estimated the cost of replacing Ocean Pines roads at $400,000 per mile, and that number was plugged into the OPA’s reserve study, a list of future capital projects and their estimated costs.

That estimate was questioned as overly inflated, and indeed it has been revised downward, to $167,000 per mile, according to OPA Treasurer John Viola, who also serves as the chairman of the OPA’s Budget and Finance Advisory Committee. Viola mentioned the lower cost estimate during his treasurer’s report delivered at the Oct. 20 meeting of the Board of Directors. OPA Director Slobodan Trendic has said he believes the revised number is still much too high, citing

costs of less than $100,000 per mile reported by the Worcester County’s Roads Department for the cost of resurfacing county roads. With the exception of Ocean Parkway and perhaps a few others, Ocean Pines roads are tar and chip, a somewhat less expensive surface than asphalt.

Board ratifies compliance actions

With no debate or dissent, the Board of Directors at its Oct. 20 reg-

ular meeting unanimously approved a motion to find a number of Ocean Pines property owners in continuing violation of OPA guidelines and/or restrictive coventants. The properties were 1 Maid Marion Court, with a maintenance issue; 21 Rabbit Run Lane, for additional of windows on a screen porch without a permit; and 71 Nottingham Lane, for mold and mildew on exterior siding. As is typical when properties are q

From Page 4

there is a need. “Please spread the word,” she said. Heiser also said her agency will participate in helping promote programs for veterans, including those relating to drug and alchohol addiction and post traumatic stress syndrome. She also said she her agency will be involved in public-private partnerships aimed at helping young offenders “who can’t quite seem to get it together,” which seems to be a local attempt at criminal justice reform, steering offenders into programs that might put them on a more positive path.

Viola cites revised road replacement estimate

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OCEAN PINES

November 2018

Daly recommends, then pulls proposal for temporary closure of Pines golf course Golfers scold director for suggesting hiatus in golf operations during renovation of Country Club second floor By TOM STAUSS Publisher reshman Ocean Pines director Frank Daly recently faced a barrage of criticism from members of the Ocean Pines’ golf club for suggesting that the Ocean Pines golf course should be closed temporarily

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whenever the renovation of the second floor of the Country Club commences this winter. The suggestion, and a fierce backlash from some golfers, took place in a largely behind-the-scenes email battle in October. Daly was persuaded that, because of various fixed

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costs related to golf operations, his hoped-for savings from a temporary closure would not materialize. Accordingly, he rescinded his suggestion for a temporary Frank Daly closure. And there the matter could have rested, out of sight and out of the awareness of the 8300-plus property owners who don’t purchase golf memberships in Ocean Pines. Some Ocean Pines’ golf members were miffed because Daly had even suggested a temporary closure of the course. They showed up in force at the Board of Directors’ Oct. 20 meeting, where they took turns bashing Daly, who defended himself, at one point even accusing certain golfers of telling an “absolute lie” about his intentions. Leading off an orchestrated presentation of ill-will toward Daly in the public comments segment of the meeting, Larry Perrone described himself as president of the Golf Members Council. Perrone is also a member of the Budget and Finance Advisory Committee. Perrone accused Daly of a “flawed analysis” in his initial suggestion that a temporary closure of the course was warranted. Perrone said that there are 160 golf members in Ocean Pines and

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found in continuing violation, the cases were sent to the OPA attorney for follow-up action.

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Assistant treasurer named to oversee F&B account

There’s been no allegations of wrong-doing, but it’s become apparent that the Ocean Pines Association has failed to exercise day-to-day oversight of the bank account that holds cash receipts from food and beverage operations at the Yacht Club and Beach Club. The account is in the name of the Ocean Pines Association but activity in and out of it is, for the most part,

1800 households in Ocean Pines whose occupants play golf in Ocean Pines. According to the latest membership report, there are 112 member households in Ocean Pines and 16 lifetime members, for a total of 128 memberships. The estimate of 160 members reflects 32 family golf memberships sold in Ocean Pines this year. In his email to colleagues, Daly indicated that the OPA could save about $120,000 by closing the golf course from November through March. But Perrone, citing Director of Finance Steve Phillips, said the such a closure would actually cost the OPA an additional $80,000 in losses, because there would be no revenue coming in during that time period at the same time that certain fixed costs would continue. According to Perrone, Daly improperly included roughly $200,000 in depreciation expense in his analysis of operating results during the November through March period. Depreciation isn’t an operating expense, Perrone said, but a cost that is properly allocated and absorbed by all 8,452 properties as a cost of having a golf course in the community. Depreciation isn’t included in any of the monthly financial reports that are issued monthly throughout the year. It’s an expense that’s added in the annual audit reports for the OPA, by department. Closure of the golf course for six months wouldn’t save the OPA any golf-related depreciation expense, which is currently costing property owners about $450,000 per year in lot assessments, or roughly $53 per year per property. q

6 Ocean Pines PROGRESS

handled by the Matt Ortt Companies, the OPA’s food and beverage manager. The company’s contract with the OPA calls for day-to-day oversight of the account by the OPA’s finance department, which because of staffing shortage or other reasons simply hasn’t done the job the contract calls for. OPA Treasurer John Viola announced during the Board of Directors’ Oct. 20 monthly meeting that Assistant Treasurer Gene Ringsdorf will be performing the oversight of the food and beverage account going forward. Ringsdorf, who serves in an unpaid, volunteer role, is a former member of the Budget and Finance Advisory Committee.


From Page 6

Perrone went on to decry the “continuing attitude” of some in Ocean Pines that the golf course is “for the benefit of the few,” when in fact it’s an amenity enjoyed by many even if they’re not members who pay in advance for the privilege of playing the Ocean Pines golf course. Another resident golf, Don McMullen, cited the many charity events hosted by the Ocean Pines golf community over the years, which is a way that he said golfers give back to the community. John Viola, the OPA treasurer and chief financial officer of the OPA, chairman of the Budget and Finance Advisory Committee and a lifetime golf member, took to the microphone during Public Comments to issue an emotional statement in support of the golf program and critical of Daly. He said the director never should have included in emails to his colleagues information about losses at the Tern Grille last year as a way of making golf operating results look worse than they would have other-

November 2018 Ocean Pines PROGRESS wise. Viola said that Tern Grille operations had been taken away from the Director of Golf and shifted to the OPA’s food and beverage manager last year, resulting in losses that probaby would not have occurred otherwise. Viola said that a proper analysis of golf operational results should exclude depreciation expense. “You don’t include depreciation (when you talk about) the Yacht Club,” he said “and you say that the Yacht Club has turned around. But golf has too,” he said, adding “it’s turned around more than the Yacht Club.” He reitterated Perrone’s point that closing the golf course won’t save $120,000, but instead the course golf would “lose more” if it were closed. Daly defended his original suggestion for a temporary closure of the course as a better alternative than incurring additional expenses by renting trailers to provide the services currently based on the ground floor. Rental of trailers has been sug-

gested by OPA General Manager John Bailey as a way of staying open during renovations that might require some remediation on the ground level pro shop and Tern Grille. “A better business decision would be to close the course during the winter months while construction was taking place. JB (Bailey) and JV (Viola) pointed out that closing the course would not be the best decision due to our commitments to full and lifetime members and competitive situations with other local

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courses that remain open. I accepted their rationale,” Daly said in a recent email to the Progress. In his public comments Oct. 20, Daly called it an “absolute lie” that he had ever advocated a permanent closure of the golf course or opposed the renovation of the Country Club’s second floor. He also said it’s acceptable to include Tern Grille operations in an analysis of golf operations, since the two are linked, even if the food and beverage operation wasn’t managed q

OCEAN PINES Golf course


8 Ocean Pines PROGRESS

OCEAN PINES

November 2018

Bailey estimates costs of golf course green repairs up to $100,000

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omebody goofed and forgot to monitor the quantity of water used to irrigate greens on the Ocean Pines golf course, causing damage that might take up to $100,000 to remedy, General Manager John Bailey told the Board of Directors recently. Bailey, during the board’s Oct. 20 monthly meeting, was reacting to complaints that the course’s pristine condition earlier this year, particularly the condition of the greens, has eroded somewhat. That’s not an unusual occurrence over the

years, as August rains followed by blistering heat often create maintenance challenges in the course. With all the greens replaced not too many years ago, they’re supposed to be immune from weather-related damage, but this time the damage seems to have been staff-inflicted. The incident of over-watering of the greens is somewhat reminiscent of extensive damage caused years ago by a new course superintendent using the wrong kind of chemical to treat the greens.

The reaction to that self-inflicted wound was rebuilding of all the greens, what critics at the time called an expensive over-reaction. A former general manager initially resodded some greens that had been chemically damaged, but the “crisis” was used to promote the idea of rebuilding all the greens instead. They were, at a cost close to $1 million. Whether a similar reaction will unfold this time remains to be seen. But Bailey’s estimated cost for dealing with the latest manifestation of human error has not gone unnoticed. OPA Director Slobodan Trendic told the Progress recently that the cost of restoring greens should be substantially less than $100,000, especially since they had been rebuilt not too many years ago.

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Golf course From Page 7

by the director of golf last year. This year, the Tern Grille has been returned to golf operations, and it’s making a modest amount of money for the OPA, at least through September, the last month for which results have been released as of Nov. 16. While conceding that golf-related depreciation isn’t an operating expense, he said it does represent a cost to all property owners. At a town meeting Nov. 1, Daly offered additional comments about golf-related depreciation, most of which weren’t heard because his mike was not working. Daly offered a summary of his comments in an email to the Progress. “I explained that by purchasing a home in an amenitized community all 8452 lot owners signed up to support the depreciation expenses of our amenities whether we used them or not. That obligates all of us to maintain our amenities in good working order. “In the case of golf operations that means addressing the delapidated conditions of the buidings and maintaining the course,” he wrote. “However, none of the 8452 signed up to subsidize the operating costs. That is why it is important for not only golf, but all amenities, to be operated to Resolution M-02. M-02 states that all amenities shall be operated in a business-like manner and fee-based amenities should be managed to cover, at a minimum, operating costs through fees and operating revenues,” Daly wrote. Not all property owners at the Oct. 20 meeting were opposed to To Page 10


November 2018 Ocean Pines PROGRESS

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10 Ocean Pines PROGRESS

OCEAN PINES

November 2018

Poll responders back referendum to add fines to OPA enforcement Survey is heavily weighted towards an older demographic By TOM STAUSS Publisher uried in the results of a member survey just released by the Ocean Pines Association is this remarkable result: More than two thirds of responders support conducting a referendum on levying limited and capped fines on property owners who run afoul of covenants and regulations enforced by the OPA. It might take more than a referendum to make that happen, or at least a single referendum applicable to the entire community with a majority of those voting prevailing. To amend the declaration of restrictions applicable to each section in Ocean Pines, it’s been generally held over the years that it would require a majority of property owners in each section to agree to changes, such as giving the authority to the OPA to impose fines for violating the restrictive covenants. Some sections might endorse changes, but others might not. Those not voting to amend restrictions would effectively be construed as not supporting the proposed change. To gain a majority, multiple contacts with property owner might be required. Of 1,696 responses to this question, the survey results show that 1,158 property owners or 69 percent supported conducting a referendum on giving the OPA the ability to impose fines while 505 or 32 percent oppose a referendum. Another question asked responders whether they favored requiring owners of rental property in Ocean Pines to have copies of lease agreements on file with the OPA, for what purpose the question did not specq

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Daly’s efforts to save money in golf operations. One resident during Public Comments chided golfers for their apparent orchestrated effort at berating a director who was simply trying to represent all 8452 properties in Ocean Pines.

“You people are something,” he said, shaking his head. OPA President Doug Parks reminded golfers that the “opinion expressed by one director” does not necessarily reflect the opinion of all. Since Daly is no longer pressing for a temporary closure of the golf course, Parks said he didn’t want to spend time in a lot of “back and forth” over the issue.

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From Page 10 ify. But 68.3 percent of the responders or 1,158 property owners said they did, while 538 said they did not. Electronic voting in annual OPA elections was supported by 1180 property owners or 69 percent of those responding, with 532 property owners or 31 percent in opposition. Raising assessments to improve amenities and services in Ocean Pines is not a popular idea, with 29 percent of the responders saying they strongly disagreed with raising assessments and another 22 percent disagreed. Only 7 percent strongly agreed with raising assessments for that purpose with another 17 percent in agreement. Another 26 percent were neutral, neither agreeing nor disagreeing. Regarding the physical appearance of Ocean Pines, 57 percent of the responders said they were “somewhat proud” of the appearance of Ocean Pines. Regarding the responsiveness of the Board of Directors to member concerns, 15 percent of responders said the board was very responsive, with another 57 percent calling the board somewhat responsive. Of 8,852 properties in Ocean Pines, 1,773 responded to the survey, or 20 percent of the owner base. Responses, perhaps not surprisingly, were heavily skewed towards those whose primary residences are in Ocean Pines, with 73 percent of those self-identifying that way. Weekend part-timers were 14 percent of the total, while seasonal part-timers were 12 percent. Owners of rental property were 1 percent of the total, while owners of unimproved property, four responders, were less than 1 percent. The results were also heavily skewed to older generations, with 24 percent of responders over 75 years in age and 66 percent aged 55 to 75. The age 40 to 54 demographic constituted eight percent of the responders, while those aged 25 to 39 were only two percent of those responding. The complete results of the survey are available on the OPA Web site. Much of the compiled results are member comments, in many cases mini-essays on what responders think is right and wrong about Ocean Pines. The results are said to be “preliminary.”

November 2018 Ocean Pines PROGRESS 11

Town Hall attendees hear plan for increased enforcement of regs Members question golf course operation, North Gate appearance lack of cable competition, poor road repairs and more By ROTA L. KNOTT Contributing Writer he Ocean Pines Association will be ramping up enforcement of the restrictive covenants next year, targeting properties that are in violation of the community’s governing documents and educating members about the requirements for maintaining their properties, General Manager John Bailey told members during a Nov. 1 Town Hall meeting.

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OPA members were encouraged to submit questions via email prior to the Town Hall meeting so the Board of Directors and staff could prepare answers in advance. They responded to a litany of questions posed by property owners about everything from property maintenance to the appearance of the North Gate bridge to plans for improvements to the Country Club building. In an emailed question, Lee O’Connor asked if the q

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OCEAN PINES

November 2018

OPA receives legal opinion on ditch mowing responsibility

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Bailey may be preparing community for a change

he Ocean Pines Association Board of Directors has received an opinion letter from its legal counsel addressing the maintenance of the community’s drainage ditches. Depending on what action, if any, the Board of Directors chooses to take in response, the OPA could decide to stop mowing the ditches along Ocean Pines’s 67 miles of roads throughout the community. A press release issued by the OPA Nov. 16, under the authority of General Manager John Bailey, says that OPA Declarations of Restrictions create a distinction between who is responsible for maintaining the drainage ditches “themselves” and the areas generally. The press release cites as authority for this murky conclusion an opinion prepared by Lerch, Early and Brewer, the OPA’s law firm. “In summary ... the Association is responsible to maintain and repair the drainage courses (i.e. the slope at the bottom of the ditch) and to maintain and ensure the stability of the slopes that run along the roadway,” the press release says. In preparing the opinion, the press release says that legal counsel considered responsibility of the ditches, which the press release calls drainage channels or courses, for Sections 1-14 that run along the roadways and the grassy areas between the ditches’ slope and

Town Hall From Page 11

homeowners association ever cites owners for not maintaining their yard and home. “There are many part time residents who let their homes and yards go uncared for and it I not only an eyesore but also reduced the beauty of the Ocean Pines community,” O’Connor’s email said. Bailey responded by saying that early next year the OPA will ask every owner to do an assessment of their own property and fix any violations. It will then follow up that request for voluntary compliance with increased enforcement activities for properties found in violation of the restrictive covenants. “Then we’re going to start coming around and working with folks to make sure that these violations are taken care of,” he said. “I think a lot of folks don’t know what some of the violations are,” he said. Bailey said staff with Compliance, Permits, and Inspections is working with the Architectural Review Committee to draft a letter to property owners that will be sent out sometime in the spring after the OPA’s

roadways. Responsibility for areas outside of the ditches “themselves” in Sections 1-14, such as landscaping of the drainage ditches and the area between the drainage channels and the roadways, does not lie with the Association, according to the press release. “The Association is not responsible to perform landscaping, including mowing, in these areas, unless it is necessary to ensure the functionality of these specific drainage courses or the slopes,” according to the press release. Anyone who wants to read the actual text of the Lerch Early opinion won’t be able to, at least not for awhile. The press release says that because of ongoing litigation related to a separate drainage-related claim, the counsel’s formal opinion will not be released “at this time.” Counsel’s legal opinion will, according to the press release, be considered as future drainage program plans, including the finalization of a drainage report, are made. Ultimately, any decision to shift responsibility for ditch mowing away from the OPA to individual property owners probably lies with the board, as a matter of policy, given the long-standing ditch-mowing service provided by the OPA’s Public Works Department.

annual budget process is finished. The letter will ask property owners to look over their own lots for violations and remedy any problems. It will contain a “checklist” of violations to help ensure their compliance with the restrictive covenants and supporting regulations. After the letter is mailed to property owners, then the OPA plans to perform thorough inspections of properties in all sections of the community. “We’re going to start doing pretty intense reviews throughout the community of the properties,” Bailey said. The general manager said most owners comply quickly when notified by CPI of a violation on their property. Many say they didn’t realize a specific issue was against the homeowners associations restrictions and they address the issue immediately. “I think we’ll have a lot of that” when the letter is sent out to members, he said, but added there will also be more complex violations that will require the owners to expend additional funding or effort to remedy. “I didn’t want to just throw down the gauntlet and say everybody’s

in violation of something,” he said, adding that it is also important to educate property owners about what constitutes a violation. Bryan Reynolds posed a question about the appearance of the North Gate bridge and why something wasn’t being done to spruce up the entrance. He said in its current state it does not represent an awarding-winning community like Ocean Pines. OPA President Doug Parks said there was a state plan to create a round-about at Route 589 and the North Gate but he hasn’t heard anything about that lately. He said he would be interested in taking action to make the North Gate bridge more aesthetically pleasing and suggested the board make that an action item. Director Frank Daly added the condition of the superstructure of the North Gate bridge condition is comparable to that of the second floors at the Country Club and Beach Club where maintenance has been deferred for decades. Maintenance that should have been done, was not, and “it’s resulted in deteriorating facilities,” he said. Director Slobodan Trendic said

Bailey says fire pits on lots in Ocean Pines can only burn gas, not wood

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cean Pines Association General Manager John Bailey has issued a statement about the use of residential fire pits in the community. In statement posted on the OPA Web site Nov. 16, Bailey said that while fire pits are not prohibited in Ocean Pines, Paragraph 8(s) of the community’s Declaration of Restrictions “clearly prohibits the outside burning of wood, leaves, trash and garbage. Therefore, fire pits can be approved, but not for the open burning of wood, etc.” Bailey said the only allowed fuel for a fire pit is gas. Gas fire pits can be permitted with approval of the community’s Architectural Review Committee, under Paragraph 5(a) of the Declarations, he said.

the bridge has reached functional obsolescence. The walkway along it does not meet code requirements, the bridge doesn’t properly accommodate the volume of traffic, and it is not an attractive face for the community, he said. Member Kathy Armstrong asked the board why the golf course isn’t contracted out to be run by others like the Yacht Club. Parks said it was previously, but it wasn’t done very well. The board ultimately decided to bring in another company to help run the golf course and “It ended up pretty much the same way.” He said operations didn’t improve and the financial picture didn’t improve. So, the board brought the course operations back in-house. Now, he said, “Golf is starting to point in the right direction.” He said it is important to keep the operations in-house, particularly since there was so much change in last few years. “Let’s try to get some level stability first.” Another member called out the board for rumors that it was planning to close the course completely. He said it would be “morally wrong q

12 Ocean Pines PROGRESS


OCEAN PINES

November 2018 Ocean Pines PROGRESS

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Board OKs contract to demolish old crabbing pier RFP for wildlife platform isn’t posted on OPA Web site By TOM STAUSS Publisher contract with Fisher Marine Construction to remove the decrepit crabbing pier in the Whitetail Sanctuary section of South Ocean Pines has been unanimously approved by the Board of Directors, in an amount not to exceed $17,500. The action was taken during the Oct. 20 meeting of the board, on a motion by Director Ted Moroney. The removal of the pier has been accomplished, General Manager John Bailey announced in his Nov. 10 GM report. Moroney said the action is the “next step” in the board’s actions related to the pier, which was closed earlier this year because of structural defects from aging and poor maintenance. The board is still considering whether to replace the existing pier with a new pier at the existing location, or to replace it with a wildlife platform as advocated by residents in Whitetail Sanctuary. Under the contract award, Fisher Marine as required to remove the pier no later than Dec. 22. Meanwhile, the OPA is vetting proposals submitted for the replacement of the pier. Deadline for submission of proposals was Friday, Oct. 19, the day before the scheduled monthly meeting of the Board of Directors meeting. There was no discussion of the bids during the Oct. 20 board meeting. As of mid-November, there still was no posting of an RFP to replace the existing crabbing pier with a nature observation platform, as advocated by a sizable number of homeowners in the Whitetail Sanctuary. Other Sanctuary residents and OPA residents who live in other sections south of Manklin Creek Road have advocated for preservation of the crabbing pier amenity, placing the board in a political quandary. The initial posting of the replacement RFP to the exclusion of an observation platform RFP seems at odds with a motion offered by OPA Director Ted Moroney at the Sept. 8 meeting of the Board of Directors. Bailey told the Progress in an Oct. 12 telephone interview that it was still his intent to release an RFP for an observation platform. He blamed the delay on all the moving parts, RFPs, that have been released in recent weeks.

A Crabbing pier demolished

The aging crabbing pier in the Whitetail Sanctuary has been demolished. General Manager John Bailey announced that the removal was completed Nov. 9. Pictured is the old pier where the fixed gangplank access met the floating portion of the pier, shown below.

Town Hall From Page 12

and possibly illegal to close it down,” adding that OPA members and particularly, those who purchased lifetime memberships to the golf course, have certain rights. The same member said the OPA should have a business plan for the Country Club before it makes any further renovations and added that it wouldn’t make sense to open another restaurant at the Country Club when the members have the Yacht Club to use. “The board never intended for any permanent closure of golf course,” Trendic said, but there is work that needs to be done at the amenity. He said the OPA is collecting data and will be releasing a request for proposals for renovations to the second floor of the Country Club. He said that RFP is necessary

in order to determine a potential project cost based on a previously developed scope of work. As part of the process Trendic said “we are actually asking for a business plan that will basically justify this whole project renovation.” Former OPA president and director Dave Stevens asked if there is a set of concept plans for the Country Club renovations and it they are available to the public. General manager John Bailey responded that the plans are on the OPA’s Web site. He said the general concept includes meeting rooms and a bar, but no “full blown restaurant.” Parks said soliciting the RFP and getting bids is key to the board determining how to proceed with the project. He said the responses to the RFP will “probably open our eyes what we can do.” Another member questioned the cost of the Country Club renovations

as well as work to improve the golf course itself. He said the OPA spent millions of dollars of the fairways and now he is hearing the course is in poor condition. Bailey responded that three months ago the golf course was in great condition. But one employee’s failure to do his job by watering the grass twice on a single day allowed the grass to burn and crabgrass to take over. “That one thing killed us and we’re still paying for it.” He said it will take time and chemicals to fix the problem but by “next spring we’ll be fine.” One member asked is there is a long-term plan for road repairs because the streets are “chewed up” by cuts made for water and wastewater line repairs. Board members passed it off as the county’s responsibility because it operates the water and wastewater system. The county is backfilling

and patching cuts in preparation for paving over them, but they have to settle before they can be paved. Member Sharon King asked why there is no second cable provider in Ocean Pines. Parks responded that the association reached out to other potential operators and but found there were no viable alternatives to Mediacom, the only company that has service lines in the ground in Ocean Pines. He said Verizon wasn’t interested in serving the community and Comcast would only do it if it could provide bulk services, meaning every household in Ocean Pines would pay for service even if they didn’t want it. “It’s not really practical for our environment,” Parks said. The board has taken no action to solicit proposals from competing Internet providers, and the Parks-appointed technology working group is no longer in operation.


14 Ocean Pines PROGRESS

OCEAN PINES

November 2018

Country Club RFP misses Nov. 5 deadline for release By TOM STAUSS Publisher he long-delayed request for proposals for the second floor renovation of the Country Club missed a Nov. 5 deadline for release. General Manager John Bailey said in his monthly report Nov. 10 that he expected the RFP to be released the following week, but it had not been posted by Friday, Nov. 16, on the OPA Web site. The missed deadlines is attributed to delays by the architectural engineering firm, Davis, Bowen and Friedel of Salisbury, in completing a redesign of the building’s roofline. “They expect to be complete in the next ten to 15 days,” Bailey told the board in his Oct. 20 GM report. When the board met on Nov. 10 for the monthly meeting, it was clear that the ten- to 15-day timeline had been missed. It now seems likely that a Nov. 30 deadline for bids will probably have to be pushed back as well. The contents of a new RFP, which will be the second attempt by the OPA to obtain bids for the second floor renovation, have been known for sometime, but the process has been challenging for Bailey. “The Country Club project is like a jigsaw project wrapped inside an enigma and covered by a Rubik’s Cube,” Bailey said during his Oct. 20 report. “So where are we? The previous version of the RFP needed to be changed due to concerns about the project schedule, the liquidated damages issue, the number of additions/alternatives, and other concerns. Thus, we delayed its release, so we could address those concerns.” Actually, the previous version of the RFP was released but failed to generate any bids from area contractors. The revised version has been tailored

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November 2018

Ortt argues against Beach Club lock-out Restaurateur asks for minor facility improvements at Beach Club, Yacht Club By ROTA L. KNOTT Contributing Writer ith a full summer of operations now chalked up to experience, the Matt Ort Companies is looking forward to next season and has a few suggestions for improving facilities and services atthe Ocean Pines Association’s Beach and Yacht clubs. Partners Matt Ortt and Ralph DeAngelus presented four recommendations to the Board of Directors during a Nov. 10 meeting, saying they had identified some “issues” during their first summer in Ocean Pines that they wanted to discuss. Ortt was adamant that the OPA’s idea of making the locker rooms at the Beach Club accessible only to members who hold a keycard would be a disaster. Keeping the locker rooms available to only people who have bought passes is “going to be a giant problem,” he said. When members forget their keys or their kids lose them, they will come to club’s front line staff to let them into the

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locker room, and be angry when staff says they can’t do so, he added. While he recognized that members become upset when the see non-members using the locker rooms, the alternative is that those non-members come into the restaurant to use the bathrooms instead and drag sand with them. “We can’t say no. Legally we have to provide bathrooms,” Ortt reminded the board. “The last thing we want is a Starbucks episode” because staff told someone they can’t use the bathroom because they didn’t buy a beer at the Beach Club. “Our front line people are going to be called every name in the book” if the OPA enacts a policy of locker room access only via keycard. “Eventually you’re going to get emails about how horrible we were… because staff told someone they couldn’t let them into the locker room.” He encouraged the board to find some other way to regulate use of the locker rooms.

Ortt’s second recommendation was not to include a full restaurant at the Beach Club on its second floor. “We took a long hard look at what we have,” he said, adding that unless the OPA were to knock down the whole building and construct a new one, a full service restaurant isn’t feasible. He added that he was not advocating that. “We’re not a sit-down restaurant. We’re not going to advocate for rebuilding the upstairs for a sit down restaurant.” Instead, he argued that Ocean Pines should embrace the Beach Club for what it is – a quick service, grab and go facility. Indeed, in the summer of 2017 former Acting General Manager Brett Hill tried a full-service operation on the second floor, and the experiment contributing to an operating loss, the first time the Beach Club has been a net loser for the OPA. This past summer, the Beach Club was restored to profitability under Ortt management. However, he said some renovations of need to be made to the upstairs of the facility. He cited window replacement as a priority. He said the existing windows are at least 40 years old and in poor condition. Ortt also suggested altering the building’s roof line to improve views of the beach and ocean from the second floor. “You can’t see the ocean, which is why we’re there,” he said of the current situation. Downstairs at the Beach Club, he said he would like to extend the bar all the way across the room and place stools on both sides of the bar. He said that shouldn’t be a very expensive addition, but could make a big difference in operations. He isn’t recommending any changes to the Beach Club’s kitchen area. Third on Ortt’s list of proposals was the purchase of a new restaurant point of sale and management system, called Toast, for the Yacht

Country Club From Page 12

to address the concerns of contractors. Liquidated damages have been eliminated and the number of options reduced. Contractors will be asked to identify a completion date for the project. Options that have been moved into the “base bid” include an IPE

Club, a request that has already been submitted to the general manager. He said the POS at the amenity desperately needs to be changed. He said Toast is a state of art system that will expedite service and record keeping. Director Slobodan Trendic said the board just authorized purchasing a new POS for the Yacht Club a few years ago and wanted to know why it needs a new one again already. Ortt responded that his company elected to use the Micros System the OPA had been using for more than a decade, instead of the POS it purchased a few years ago, because it was a better system. “Micros was far and away above what you bought two years ago” he said. However, Micros is not payment card industry (PCI) compliant and therefore the OPA needs to invest in a real upgrade, Ortt said, adding there was not time in May to install a new POS and be operational for the summer season. “So we went through this year with what we had,” he said. DeAngelus added they were told the OPA has funds in reserve for purchasing of POS system for the Yacht Club. Finally, the management company wants to paint the wooden trim upstairs at the Yacht Club and purchase equipment for moving the furniture. He said he is “getting pushback from brides” that the wood trim in the banquet rooms looks dated. He said the design and layout is fine but painting the trim will help increase its appeal. Also he lobbied for purchasing equipment that will allow staff to more easily move and store tables without scraping up floors, a current problem. Ortt said the total cost of the improvements at the Yacht Club would be about $9,000, including painting. He said it is not a lot of expense “but I think it’s really going to go a long way to getting the room booked.” q

16 Ocean Pines PROGRESS

wood deck, replacement windows throughout, new gable windows in the front of the building, conduits for future work, interior blinds, and elevator, and some roofline changes. Contractors will have an option for Hardi-plank siding or a base bid of vinyl for the entire building. The latest cost estimate for the renovation is in the range of $1.2 million to $1.3 million


OCEAN PINES

November 2018 Ocean Pines PROGRESS

Kiwanis blood drive

Pictured, left to right, are Kiwanians Jeremy Goetzinger, Joe Beall, Bill Purvis and Carolyn Dryzga, who manned the recovery table in the blood drive at the Ocean Pines library, conducted by the Kiwanis Club of Ocean Pines-Ocean City in September. The drive was coordinated with the Blood Bank of Delmarva. Another drive is anticipated for later this month.

Board approves McGinty Marine

as second bulkhead contractor Swim and Racquet Club to be phased out as staging area By TOM STAUSS Publisher he Board of Directors during its regular monthly meeting Oct. 20 awarded a new bulkhead replacement contract to McGinty Marine, in an amount not to exceed $621,390, to be funded out of the bulkhead reserve fund. The approval means that there will be two bulkhead repair and replacement contractors working concurrently in Ocean Pines, Hi-Tide Marine Construction and McGinty. The approved bid is based on not using the Swim and Racquet Club as a staging area, which has been vigorously opposed by homeowners who live in the vicinity. The residents hired an Ocean City attorney and complained to Worcester County officials about the use of a recreational and park area for a commercial purposes, contrary to the residential zoning that governs land use in Ocean Pines. In his motion to authorize the McGinty contract, Director Ted Moroney noted that Hi-Tide, the contractor that is doing some emergency bulkhead repair and replacement work in Ocean Pines, submitted the low bid not using Swim and Racquet as the staging area. “However, (Hi-Tide) is still in the process of completing over 900 linear feet of bulkhead replacement,” Moroney said, adding that “addi-

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tional bulkhead replacement and/or repair will be bid this fiscal year as permitting allows, and multiple contractors will be needed to complete the aggressive goal of bringing the bulkhead replacement plan back on schedule.” According to a document prepared by Facilities Manager Kevin Layfield for the board, the OPA’s RFP called for the replacement of about 1,614 linear feet of existing wood bulkhead with an engineered vinyl bulkhead. “The wood in the areas of replacement has been severely damaged due to worm infestation. The tie rods in these areas also have severe corrosion and are failing, resulting in the walls that have heaved forward. The RFP was posted to the OPA website, advertised in local media, and emailed directly to the companies that responded to the RFP released in 2016,” according to the report. Layfield said that the OPA solicited the support of Vista Engineering to assess the bulkhead sections on the RFP and to engineer a replacement vinyl bulkhead system. “Vinyl Bulkhead requires a sealed engineered design for approval in Worcester County versus a typical wood design which only must meet county design standards,” according to the report. This project will include bulkhead replacement at 26,28,and 30

East Mallard and 21,22,23,and 24 Ebb Tide, where permitting is already complete. Permitting has been submitted for 51,52,53,54 Pintail Drive and is awaiting approval from state and federal agencies as well as Worcester County. McGinty’s bid of $621,390 is based a linear foot rate of $385 without an OPA staging area. Hi-Tide’s competing bid was $597,856, on a

Matt Ortt From Page 16 Currently, 19 weddings are already booked for next year. John Viola, OPA treasurer, asked why Ortt was making his presentation to the board instead of the general manager, who wasn’t on hand for the meeting. “We don’t know how this all works. We know what we do,” Ortt responded. He said the general manager instructed them to present the recommendations to the full board. “There’s issues here. Somebody’s got to address them,” Viola said, adding the restaurateurs are getting a lot for free from Ocean Pines, including rent, renovations, and marketing – all items that would be part of the cost of doing business for any other restaurant. Now, Ortt needs a POS system that the compa-

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linear foot rate of $270. OPA received four responses to the RFP, including Hi-Tide and McGinty. The other two bidders were Fisher Marine Construction and Murtech Marine Division. Fisher Marine Construction provided a bid only for continued use of the staging area located at the Swim and Racquet Club. Had the board opted to continue use of that site, Fisher would have had the low bid, at a cost of $503,340 at a linear foot rate of $312. The premium that the OPA will pay for removing eliminating the Swim and Racquet Club site as a staging area is about $53,500. Hi-Tide Marine, the current phase I contractor, is completing emergency replacement at 26,25-19 W. Mallard Drive and the contracted work at 10-22 W. Mallard Drive. According to Layfield’s report, HiTide has approximately 903 linear feet of bulkhead left to complete on those contracts. “It is unknown if Hi-Tide has the capacity to operate a second crew. While there have been resident complaints about Hi-Tide, we can attest that the work done meets code and is completed properly,” Layfield wrote. He did not explain why he or anyone from the OPA had not contacted Hi-Tide to determine whether the company had the capacity to operate a second crew. McGinty is expected to begin work on its share of bulkhead replacement within 30 days of the Oct. 20 contract award.

ny wants the OPA to pay for. “I don’t understand how this process has been working,” Viola said, adding, “the only thing I can tell the people of Ocean Pines, it’s going to cost you money.” Trendic said Viola made a good point about Ortt appearing before the board because most of the recommendations are operational and rest with the general manager and staff. Director Esther Diller told Ortt and DeAngelus to work with the general manager to “get us some numbers.” OPA President Doug Parks said the benefit of having the Ortt representatives present their suggestions to the board is letting the membership know what they are thinking, too. “You heard it right from the horse’s mouth,” he told the audience.


OCEAN PINES

November 2018

Trendic motion to buy bulkhead materials independently from installation passes with Moroney ‘friendly’ amendment By TOM STAUSS Publisher fter initial resistance from two directors and a friendly amendment offered by Ted Moroney, a motion by Slobodan Trendic to change the way that the Ocean Pines Association contracts for bulkhead replacement passed unanimously. The action took place during the Board of Directors Nov. 10 monthy meeting. The purpose of Trendic’s motion was to separate the installation of replacement bulkheading from the purchase of bulkhead materials, in the hopes of saving substantial sums of money for the OPA in materials costs. The motion called for the general manager to issue requests for pro-

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posals for the installation-related services for bulkhead replacement work only no later than Nov. 30. In the current bulkhead replacement program, work is “currently structured as a turn-key project, meaning the OPA contractor is also responsbile for the purchase of all required material,” Trendic said. “This type of set-up usually creates a cash-flow problem for some contractors which ultimately results in an increased project cost that gets built onto the price. This additional cost could be avoided.” Director Steve Tuttle initially pushed back against the proposal, saying he was not in favor of it. “I don’t think contractors will participate, if they can’t make a profit on the materials (mark-up),” he said.

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He also said that as the Ocean Pines Association is moving to prevent contractors from storing materials on OPA property, Trendic’s proposal will create a situation in which storage of materials on Ocean Pines property might be required. Trendic responded that his proposal had nothing to do with storage issues, explaining that what he called an “undefinable quantity contract” would not require prolonged storage of materials on-site but delivery of them as needed. He said a multi-year agreement with a separate supplier could have lots of “upside and benefit” to the OPA. “We’ve been hit with additional costs for storage (because the board prefers storage of materials outside of Ocean Pines), and this is an op-

portunity to reduce costs,” he said, adding that the OPA should at least take the time to evaluate whether this approach would produce the savings he believes is possible. Director Colette Horn, who usually seems predisposed toward opposing Trendic’s out-of-the-lines ideas, said that bidding for this coming year’s bulkhead replacement has already been bid out and a contract awarded. She called the idea of looking into the possibility of implementing Trendic’s idea is a “highly inefficient use of staff time.” That produced a sharp rebuke from Director Esther Diller, who expressed frustration at the seeming unwillingness of some board members to consider alternatives to the status quo. “Why are we so afraid of getting information,” she said. “This is a frustration I have.” Director Frank Daly said he agreed with Diller, that seeking ways to do things more efficiently and at less cost is “what boards are q

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November 2018 Ocean Pines PROGRESS

Board directs GM to identify ways to reduce expenses by 2.5 percent

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Trendic motion From Page 18

supposed to do.” With certain costs rising, he said the board and management should look for ways to reduce costs. “Looking a different approaches is what intelligent boards do,” he said. Moroney said he didn’t have a problem with researching alternatives for bulkhead replacement that save the OPA money, but he expressed concern about the timing of Trendic’s motion. He said the OPA, when it next bids out bulkhead replacement, should give contractors the option of bidding on labor only, with the OPA supplying materials, and also the traditional turn-key approach. Noting that the OPA has already approved a contract for the next phase of bulkhead replacement, Mo-

ternal contracted resources rather than in house staffing” for functions in particular -- drainage, OPA-wide landscaping service, golf course deferred and emergency maintenance, and critical facility deferred maintenance identified by department managers. There is no guarantee that Bailey will come up with a list of possible cuts in operating expenses or that the board will adopt them as part of the 2019-20 Ocean Pines Association budget. While pressing for operating reductions and encouraging Bailey to come up with ways to outsource certain functions to save money and improve results, Daly also has been a strong advocate of addressing years of deferred maintenance that might be expensive to accomplish. Estimates for such deferred maintenance are in excess of $2 million. None of the directors, during discussions and internal emails regarding budget guidance for 2019-20, have specifically advocated reducing next year’s lot assessment. The only director to explicitly call for an assessment reduction during budget guidance discussion was Director Steve Tuttle, who said it should be a goal. “Let’s keep it where it is or reduce it if all all possible,” he said during roney suggested a friendly amendment to Trendic’s motion that calls for an RFP the next time one is issued to include the two options. “I don’t want to set a date on it,” Moroney said, alluding to Nov. 30 date in Trendic’s motion for a new RFP limited to a materials only. OPA President Doug Parks, as he often does, said he agreed with Trendic’s motion “conceptually.” He wondered whether contractors, denied the usual materials mark-up, would attempt to recoup some of it by increasing the cost of labor in an installation-only contract. But he said he would be comfortable with “getting information” about the willingness of vendors to participate in an installation-only bid process. Trendic readily agreed to Moroney’s friendly amendment, adding that he was not opposed to “reaching out” to contractors.

board discussion of budget guidance A 2.5 percent reduction in the operating budget could make an assessment reduction more plausible and defensible. In board dicussion during the Oct. 20 meeting, Director Slobodan Trendic pressed for a 2.5 percent reduction in operating expenses, meeting some resistance from Director Colette Horn on how that could be accompished without affecting service levels. She asked how “do we get a base-

line” for measuring quality of service currently. Trendic said he could offer some suggestions for reducing costs, but said that the general manager should play the lead role in coming up with options. Almost since day one of becoming a director, Trendic has pressed for outsourcing key functions s a way that savings could be achieved without adversely affecting the quality of services delivered. In her successful campaign for the board this past summer, Director Esther Diller also called for more aggressive outsourcing. Daly also was an advocate for out-sourcing during his successful campaign for the board.

Viola open to reducing assessments next year OPA treasurer says replacement reserve adequately funded By TOM STAUSS Publisher hile he stopped short of outright advocacy, Ocean Pines Association Treasurer and Chief Executive Officer John Viola recently indicated that he’s open to the possibility of reducing assessments next year. The Board of Directors recently agreed to direct General Manager John Bailey to propose ways to cut operational budgets by 2.5 percent in 2019-20, which could make reducing the assessments more achievable if Bailey comes through as directed. Viola, in a treasurer’s report delivered during the Nov. 10 monthly meeting of the association’s Board of Directors, provided some ideas for how an assessment decrease could be achieved. While continuing to insist that the OPA must make up or pay for cumulative deficits in the last two years that he said reached $1.6 million,Viola said the $1 million that remains after a paydown this year of roughly $600,000 does not need to be paid off all at once -- that was never likely -- but could be spread over a number of years. He told the Progress in a follow-up telephone interview that the payback could be stretched to three or four years, as advocated by Ted Moroney in recent communication with the board discussing 2019-20 budget guidance. He said he had discussed the matter with Moroney and agreed with him. Stretching out the pay-back beyond what was initially anticipated could free up funds to reduce the assessment, Viola said. Another possibility for reducing the assessment isn’t something he advocates but could result if OPA management is unable to come up with detailed plans to replace bulkheads or resurfacing roads that require funding over and above what is already available in the reserves for those purposes. “Without detailed plans, we don’t fund roads or bulkheads from the assessment,” he said. What that seems to imply is that, for next year at least, there could be a holiday or hiatus in the waterfront differential paid by most owners of bulkheaded property in Ocean Pines. It also seems to suggest that Viola might not press for the funding of roads depreciation next year, which amounts to about $26.50 in the lot assessment.

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By TOM STAUSS Publisher t hasn’t received much attention and never was voted on formally by the Board of Directors, at least in public session, but General Manager John Bailey has been directed to prepare a list of targeted cost reductions for board review during the budget approval process. In a recent email to the Progress, Director Frank Daly said that the board had directed Bailey “to develop a list of potential cost reductions for Board review and action that will achieve a 2.5% or greater reduction in the operating budget” in 2019-20. Items targeted for cost reductions should be those departmental line item expenses that have exceeded the rate of inflation for the past five years, Daly said. “For items that have exceeded that rate the General Manager will provide an explanation to the Board supporting the increases or a plan to reduce the expenses for those items without impacting service levels.,” he said. In addition, Daly said the board had agreed to continue work to outsource certain functions now performed in-house by the OPA by directing the general manager “to take all actions necessary to provide a cost comparison between using ex-

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20 Ocean Pines PROGRESS

OCEAN PINES

November 2018

Assessments From Page 19

It’s not funded this year, either, having been diverted by the board this past February to pay for an ongoing forensic audit. But Viola said there other pressures to increase spending, citing the possibility that management and the board will approve an aggressive program of addressing deferred maintenance.

Director Frank Daly has said that such costs could cost the OPA more than $2 million. The OPA treasurer also told the board and the handful of residents attending the Nov. 10 board meeting that he believes the current $6 million in the OPA’s replacement reserve is adequate, and that there doesn’t need to be a supplemental source of revenue for this reserve. It currently is replenished annually by the funding of depreciation

of most OPA assets. Funded depreciation brings in roughly $1.7 million per year. In other comments during his treasurer’s report, Viola said that: • new financial software would produce monthly financials by the 12th working day of the month, an improvement of a day over existing software, which still would not have produced October financials by the board’s Nov. 10 board meeting. • he had not yet produced an endof-year forecast for 2018-19. “I don’t have it, I we will have it,” he said. • the new request for new point of sale software by the Matt Ortt Companies was legitimate but carries a cost that “will be reflected in our assessments.” • over the past five years, the OPA’s lot assessment has only increased on average less than 1 percent per year. • for the rest of the 2018-19, he estimates that roughly $1.3 million will be spent out of the $6 million in the replacement reserve. • the $70 in the lot assessment this year to reduce cumulative deficits over the last two years can be reduced by spreading out the payback period. • about 50 percent of the OPA

budget is spending in Public Works, the Police Department and general administration and that’s where the focus should be in cutting costs. • the lack of a strategic plan for the OPA is a defect that needs to be remedied. He said that the general manager has been tasked with coming up with one. • there hasn’t been much news lately regarding the ongoing forensic audit, but that it carries a cost that is reflected in the lot assessment. • legal and information technology costs continue to be over budget for the year and these costs will keep going up • there is inconsistency in the way that the OPA allocates marketing costs to the various amenity departments. Marketing costs related to golf are allocated to golf operations, but that doesn’t occur with Aquatics, the Yacht Club or other departments, he said. “I just want us to be consistent,” he added. • the OPA board, consistent with the writings of famed objectivist writer Ayn Rand, is comprised of producers and obstructers. Viola said an effective board needs both kinds, and he generally had kind words for the current board.

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Republic Services seeks recycling contract changes due toTRIPLE recyclingCROWN cost ‘crisis’TOWNHOMES

By ROTA L. KNOTT ination and that results in higher try to recover through our customContributing Writer processing fees. “That usually goes ers.” Sipirto said Republic Services acing a recycling “crisis” that onto the hauler, which of course we wants to educate the community to is causing the companies costs to skyrocket, Republic Services wants to renegotiate its agreement with the Ocean Pines Association. Representatives from Republic Services, which provides recycling and refuse collection within Ocean Pines, told the Board of Directors during a Nov. 10 meeting the company either needs a rate increase of 60 cents per household or the collection process needs to change. Dominic Fulginiti, Republic Services area duty manager, said changes made by the Chinese government regarding levels of contamination in recyclables brought into that country have had a significant impact on the recycling industry around the world and are increasing the company’s costs. Fulginiti said there are three ways to potentially address the problem of contamination of recyclable materials in Ocean Pines -- a price increase for customers, changing the collection system, and an educational campaign. Anthony Sipirto, Republic Services division manager, said there is a crisis in the recycling industry. Each Unit is 2543 Sq. Ft. Plus 256 Sq. Ft. Patio “And it’s not just something that’s 30 Feet Open Space - Between Buildings local.” He said there simply isn’t a strong market right now for reEnjoy all the Ocean Pines Amenities! cyclables. “The market that is out The Yacht Club & Marina • Golf & Country Club • Tennis Courts there for the material is really kinda tightening up on how contaminated Beach Club • Four Outdoor Swimming Pools • Indoor Pool that material can or cannot be.” Parks • Community Center and Special Events He said the market has changed Shopping Center • Medical Center • Post Office • Library drastically in the last decades. “Ten years ago, the contamination no Woods in back of Townhomes one cared. They took the material. r Stop In and Ask It went overseas. They processed it crk You Site i P u o Stop In and Ask and they reused it. Now it’s more of Pick Y rede H ee About Our Newest Project Siotm m r o e a struggle.” f H About Our Newest Project e edr PreferrP ow! Now! Sipirto said the contamination N Like us on Like us on rate of recycles has increased significantly from about 8 percent to 30 percent. Recyclables become contaminated when materials thatLike are us on Associates, Inc. not recyclable and mixed in with them or if the recyclables are not 627B Ocean Parkway Ocean Pines, MD 21811 627B Ocean Ocean Pines, MD 21811 properly cleaned before disposal. PH: 410-641-7050 CELLParkway ANYTIME: 443-235-2325 The increase in the contaminaANYTIME: 443-235-2325 PH: 410-641-7050 CELL Steen@Beachin.net steenhomes.com MHBR 486 tion rate means additional processing is necessary to remove contamSteen@Beachin.net steenhomes.com MHBR 486

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help reduce that contamination rate. Fulginiti said the recycling crisis is emanating from China, which takes about 40 percent of the world’s recyclable materials. He said the Chinese government initiated a program called National Sword to help combat the country’s tremendous environmental challenges. National Sword restricts certain types of recyclable materials from coming into the country and as well as contaminated products.

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Republic Services From Page 21 China’s National Sword program, which was implemented in 2017, reduced the acceptable contamination level from 3 percent to .5 percent for paper and plastic. “It doesn’t sound like a dramatic change but when you compound that and you start to scale that up its pretty amazing,” Fulginiti said. The program also completely banned all mixed paper

imports regardless of the level of contamination. As an example, Fulginiti said in 2016 in a ton of recyclable materials from Ocean Pines about 60 pounds could have been trash and that would have been acceptable and purchased for $90 to $100 per ton. Now, however, only ten pounds can be trash for the ton of recyclables to be accepted by China. Fulginiti said recycling processing facilities have been set up to process at 3 percent.

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Getting to .5 percent, or 99.5 percent pure recycled material, is possible but it causes capital investments and increasing manpower. “So the costs skyrocket. This is happening all across the country, not just in Maryland and Delaware,” he said. Fulginiti said China also banned all mixed paper, which is any paper that is not cardboard. Twenty percent of what’s in everyone’s recycling container is mixed paper, he said. “So you have this situation where obviously they want almost completely clean material. And, two, they’ve eliminated a stream of revenue. Just to be clear mixed paper generated revenue,” Fulginiti. He said the industry traditionally had been built on processing materials and having commodity values. Those commodity values would buttress the hauling and collection costs. “That model is not sustainable moving forward. We don’t foresee that to occur again,” he said. Republic Services have three Ocean Pines routes on Thursdays and Fridays to collect recyclable materials. He said he also tried to find another resource to take materials for a lower tipping fee, but no one would accept the materials he took

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out of Ocean Pines due to the high rate of contamination. “One of the other challenges that we have in our community is the confusion about yard waste,” Sipirto said, adding that leaves and debris tend to make it into the recycling bins. Sipirto said he went on an Ocean Pines run in the spring and found 16 or 18 recycling containers put out by residents were contaminated with yard waste. One way to cover the increasing cost of addressing contamination is through a 3 percent, or 60 cent price, increase per customer in Ocean Pines, Fulginiti said. “This is a short term solution but would be helpful,” he said. The increase would take effect Jan. 1, 2019, to address the shortfall due to collection costs that are no longer covered by commodity revenues. “It would help to keep the contract, not profitable, but not in the red, let’s say.” Sipirto agreed, and said that 60 cents per home “we don’t feel is that great of an ask.” Another option is to convert the curbside recycling program to drop off sites within the community. Fulginiti said that option would cost nothing for Ocean Pines because q

22 Ocean Pines PROGRESS


OCEAN PINES Republic Services From Page 22 Republic Services would deliver commercial containers for the dropoff collection. Residents would bring recycling materials to the drop off sites. Fulginiti said that could yield a better stream of materials because residents generally take more care in what they bring to drop off sites. “What we’ve found is that the people, the residents are bringing their material to a public site they’re more likely to have a cleaner stream and therefore the material wouldn’t be as contaminated,” he said. That option would offset the disposal costs and there would be no changes in pricing for 2019 for Ocean Pines customers. Another option is to completely eliminate the recycling program in Ocean Pines. “But we didn’t want to go there just yet,” Fulginiti said. Sipirto said Republic Services also wants to take advantage of opportunities to educate the public through outreach activities, community events, and marketing partnerships. “It’s tough to really educate everyone on this process,” he said. Fulginiti said public education revolves around what’s recyclable and what’s not. He said efforts focus on two talking points - what to recycle and how to recycle. Recyclables must be empty, clean, and dry. Republic Service can work with Ocean Pines through many different avenues to enhance education, he told the board. In response to a question from an audience member at the board meeting, Sipirto said reducing the collections to once per week for parttime residents isn’t feasible or cost effective for Republic Services. He said the truck still comes into the community regardless of how many properties have collection on a given day and ultimately the company would still collect the same tonnage of refuse and recycling. Fulginiti said there would only be a potential cost savings if the whole community would go to once a week collection. Director Ted Moroney, who participated in the Nov. 10 board meeting via conference call, said Republic Services concerns related to recycling in Ocean Pines are a contractual matter and need to be discussed with General Manager John Bailey. He said they should meet with Bailey, who will then bring a recommendation to the board for any revisions.

November 2018 Ocean Pines PROGRESS

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Bailey issues insurance broker RFP without completed insurance audit Trendic unhappy with apparent ‘end run’ around clear board directive By TOM STAUSS Publisher espite a claim by General Manager John Bailey that an audit of insurance coverages had been conducted by a Silver Spring, Md., consulting firm, prior to the issuance of a request for proposals for insurance brokerage services, that audit never was completed in accordance with a board motion, Director Slobodan Trendic has charged. Bailey, during his general manager’s report at a Oct. 20 board meeting, said the audit is “being conducted� by Manougian Insurance, a member of the Community Association Institute with a specialty in the insurance needs of homeowner associations. “They anticipate providing a report to us in early November. Their work consists of gathering informa-

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tion, a site visit, review of all documentation, and providing a written report on their findings,� Bailey said in his Oct. 20 report. Bailey had been reluctant to hire such a consulting firm, which had been ordered by the board in an approved motion earlier this year. More recently, Bailey had asked the board whether it still wanted him to hire a consultant to review insurance coverages before issuing an RFP for brokerage services. Director Ted Moroney, with no director dissenting, told Bailey he should hire the consulting firm in accordance with the original motion. Bailey got the message, apparently, based on his comments during the Oct. 20 board meeting. But Trendic told the Progress that Manougian firm never completed a comprehensive audit of coverages, and instead advised the OPA to is-

sue the RFP for brokerage services without one. Bailey confirmed what he called a “hiccup� in his written GM report for the Nov. 10 board meeting. “We received word ... that after reviewing the many insurance contracts that we have and most of the exposures we have that are unique to our association, [Manougian] would not be able complete a full audit within the amount of the [contract] funding provided,� Bailey wrote. The GM said the company indicated it “would be expending many man hours to properly analyze the insurance in place, make recommendations, review rating procedures, properly classify employees and other rating methods used by our carriers and give opinions on the premiums being charged.� But he said the company said

“much of the work they would have put into an audit would be included as part of brokerage services� and would incur no fee. Trendic said it’s his understanding after reviewing the company’s Web site that the Manougian firm doesn’t conduct the sort of comprehensive review envisioned by his original motion. He said Bailey should have known that, and that hiring a firm that doesn’t perform the sort of comprehensive audit envisioned by the approved motion was an an apparent ‘end run’ around a clear board directive. Trendic said the audit should have been completed and a report issued to the board before Bailey issued an RFP for brokerage services. Instead, the RFP was posted on the OPA Web site Nov. 2, with a Nov. 28 due date for proposals from brokers. The published RFP calls for brokers to evaluate the OPA’s existing insurance programs, and “as necessary recommended changes to the terms, conditions or coverage linits to ensure the program is affordable and adequately protects the OPA.� It was that sort of evaluation that q

26 Ocean Pines PROGRESS

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From Page 26 Trendic wanted an “independent” insurance consultant to conduct. He had suggested an expert based in New Jersey who provides such services annually to the Captain’s Cove property owners association, but Bailey selected the Manougian firm instead, with results that contravened the clear instructions of the board, Trendic said. In comments during the Oct. 20 meeting, Bailey said that the OPA’s insurance policies renew May 1 every year. “Our current broker, Avery Hall, reviews the policy coverage and shops them every year. Avery Hall gets a renewal quote from the existing carrier, as well as competing quotes from other carriers,” Bailey said. The OPA has not issued an RFP for insurance brokerage services in over a decade, he added. “This should be a requirement at least every five years,” he said. Bailey said that brokers routinely shop policies 90 days before renewal dates.

PRHS recruiting family medicine providers to meet need in Ocean Pines and Berlin Hospital orking on developing behavioral health service line By ROTA L. KNOTT Contributing Writer eninsula Regional Health System is planning to bring an array of health specialists to its Ocean Pines Health Pavilion on Route 589 and is actively recruiting for more general practitioners to come to the area. Steve Leonard, PRHS’ president and CEO, met with the Ocean Pines Association’s Board of Directors on Nov. 10 to provide an update on activities at its North Gate campus. Leonard said his goal for the meeting was just to let the board and membership know what’s new at PRHS, which just celebrated 121 years on the Eastern Shore, and to provide a look at plans for the continued expansion of the health pavilion. For the last several years, Leonard said “more of our focus has been on keeping people healthy and well.” Thus, the health pavilion at Ocean Pines’ North Gate. Leonard said there is less “going on at the hospital proper” and more is happening at the regional campuses like the Ocean Pines facility. He said with more efforts focusing on engaging residents in health and wellness care “it’s got to be close to home and convenient.” That was the reason

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PRHS started building facilities in communities surrounding its main hospital in Salisbury. “We’re much more focused on providing easy access throughout the entire region.” At the Ocean Pines Health Pavilion, Leonard said buildings 1 and 2 are open and providing family medical care, but more providers are needed. “We really need to have more family medicine providers. Steve Leonard There is an access issue. We understand that. We’re trying really hard to recruit more family medicine providers to specifically this community and Berlin.” He said PRHS has completed a medical staff needs assessment showing that 15 more family practice physicians are needed now. “That’s the degree of access that our region has.” With retirements of medical professional coming over the next five years, he said another 15 will be needed to meet growing demand for service. “Please know that’s top of mind for us is physician recruitment,” he said. q

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Health pavilion From Page 27 The existing family practice at the Ocean Pines campus has six providers. Leonard anticipated adding another family medicine practice to that campus because that is a “pinch point for us.� The campus also includes a lab, pharmacy and cardiac rehab center. “We’re trying to expand that and getting into more pulmonary rehab as well, trying to keep people again healthy and well.� A cancer center opened at the site in building 2 about a year ago, and Leonard said it has already passed year three expectations for volume of patients served. “It unfortunate that it’s needed. But it’s fortunate that it’s close to home and people are getting the services that they need.� Leonard said PRHS has also broken ground on a gastrointestinal center and the building is expected to be open by next summer. Doctors will be performing colonoscopies in that building. “A great service. And, let’s face it, it’s one of those things from a preventative medicine perspective not everyone gets done and everyone should be getting it done.� Also in that building, PRHS is

considering opening an urgent care center in cooperation with Your Docs In. Leonard said PRHS just completed a demand study and it seems there is demand for urgent care up to 40 visits a day in that location. “Given the size of the community and what’s going on here,� he said. “That’s one option for the other half of that building. Another option we’re looking at is again primary care and primary care internal medicine.� Details are still being worked out for the “big building,� about a 70,000 square foot facility, to be located in the back of the property of the North Gate campus, Leonard said. “There’s a lot that the developer’s working on right now,� he said, including traffic considerations. The facility will ultimately house a network of medical specialists and, while the specifics are still under consideration, could include pulmonology and surgical-related needs. “We’re working with a number of other specialists to actually move their offices to the Ocean Pines community,� he said. Director Collette Horn asked Leonard about PRHS’ services to address the mental health needs of

the community. Leonard responded that behavioral health encompasses a large spectrum of needs. “No one organization has really licked this, quite honestly, but it is such a prevalent need.� He said the medical system performed a recent study that showed 30 percent of emergency room patients presented with an underlying behavioral health-related need. “We do 90,000 ER visits a year. So think about 30,000 or so of the patients coming in with either complex behavioral health related needs, or depression, anxiety. The whole spectrum� he said. The medical system is actively studying how to better meet the needs of the community, he said, adding that the hospital traditionally partnered with a couple of hospitals from across the bridge to provide behavioral health expertise on the Shore. However, they have decided they are not able to partner with organizations like PRHS any more. “We need to internalize this competency,� he said and likened it to taking care of open heart patients. “We need to take care of behavioral

health patients just as well.� Leonard said he has started hiring a team to begin building a behavioral health service line, “which we haven’t always had before.� Currently the hospital provide acute inpatient adult behavioral health services at the hospital in Salisbury. It has also applied for a certificate of need to add 15 in-patient child and adolescent beds. “Because every night there’s about ten kids from our immediate area here who have to spend the night elsewhere where they have a crisis or an emergent related need,� Leonard said.� The next step is to try to identify a spectrum of community related providers. “We need to treat this like our other service lines and get just as good at it. And that’s the process that we’re starting at this point in time,� he said. Finally, Leonard said PRHS is subtly rebranding its ambulatory campuses to be more community specific. They used to be called the Delmarva Health Pavilion at each specific community such as Ocean Pines. Now each site will be specifically named for the community, such as Ocean Pines Health Pavilion.

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OCEAN PINES

November 2018 Ocean Pines PROGRESS

Bailey’s pilot program’s early results appear promising in controling geese General manager says population down by two thirds in initial weeks By TOM STAUSS Publisher s of Oct. 20, when General Manager John Bailey updated that Board of Directors on the status of the experiment to control Ocean Pines’ Canadian geese population through the use of border collies, there at least was some anecdotal evidence that the pilot program was having some success. Using money set aside in the current fiscal year’s budget for wildfowl control, he hired a company called Maryland Geese Control of Columbia,Md., that uses border collies trained to make an area less hospitable for geese. From Oct, 9, when the pilot program began, through Oct. 20, the date of the board’s monthly meeting, the number of geese hanging around Ocean Pines has been lower, from “300-plus” two weeks prior to 100-

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plus “in the past week,” Bailey told the board. That result, he said, was produced by “consistently inconsistent” timing of border collies patrolling the South and North gate ponds, canals and the Ocean Pines golf course, every day since Oct. 9. The service by Maryland Geese Control is costing the OPA $625 per week, at a rate of roughly $31 per hour. As a pilot program rather than an annual contract, Bailey told the board that he anticipates spending between $3,750 and $5,000 on the border collie program. “We have spent only a little more than $5000 year-to-date,” he said, leaving a balance that could be spent of $10,000 for the remainder of the fiscal year. “The expenditure of the border collie program will leave us with a balance of about $5,000.”

Bailey said that would be sufficient to cover the cost of resuming the collie program or some other mitigation effort in the spring. The general manager also said he and his staff are researching the possibility of buying a waste collection attachment, a two-behind piece of equipment “that sweeps up and collects fecal waste from gees and other sources around our trails and areas frequented by geese. Bailey has said previously that options for controlling the geese population include use of drones, blinking lights or perhaps some sort of audio device. He’s been looking for a drone fashioned in the guise of an eagle, but so far has come up empty on his Internet searches. Bailey says he’s open to ideas from residents. He has often said that no one in

29

the OPA “wants to kill the geese,” a reference to the much criticized euthanasia of roughly 250 to 300 geese by the OPA in cooperation with an agency of the U.S. Department of Agriculture and the Maryland Food Bank. Bailey has come under withering criticism from residents in Ocean Pines incensed about a program initiated to euthanize anywhere from 250 to 300 geese back in July. A group of Ocean Pines residents is meeting regularly at the Ocean Pines library and other locations in an effort to keep what they called a geese “massacre” alive as an issue in Ocean Pines. Should the border collie program fail, Bailey and the OPA will be under pressure from this group to avoid euthanasia in the future as a solution to goose over-population at the association’s ponds. Whether the intensity of attention on Bailey and the OPA’s efforts to control the geese population remains to be seen. Anti-euthanasia advocates have attained representation on the OPA’s Environment and Natural Assets Advisory Committee, however.

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30 Ocean Pines PROGRESS

OCEAN PINES

November 2018

‘Doubles’ approach deployed at Pines’ racquet complex Vernon Mummert, Terry Underkoffler overseeing Southside amenity

Vernon Mummert (left) and Terry Underkoffler.

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accomplishments in sports. His college experience includes serving as an associate professor and department chair of PE, as a tennis and soccer coach at New Jersey’s Drew University and Wabash College in Indiana and 25 years as an athletic director. He also spent a number of his summers as the tennis director/head pro at the Summit Tennis Club in New Jersey. During his career, he coached Drew University tennis player Kim Schmidt to a national championship win. She was later inducted into the school’s hall of fame. At Summit Tennis Club, his junior, men’s and women’s teams won multiple championships. In 2008, while serving as athletic director at Wabash, he was selected by the National Association of College Athletic Directors as Athletic Director of the Year. Although he has a strong tennis background, Mummert emphasized that he will be working with and promoting all three racquet sports. “I want to bring all three centers [tennis, platform tennis and pickleball] together,� he said. He said he’s also looking to increase usage at the facility, especially by reaching younger players. “We’re trying to recruit and expand our membership and expand youth levels, especially in tennis but really in all three sports,� he commented. Mummert has already begun to hold private lessons and clinics for tennis, platform tennis and pickleball and participated in this summer’s Ocean Pines 50th anniversary racquet sports tournament, which he said was a good example of how all three sports can work together to showcase the racquet complex’s offerings. “I want to enhance all of the programs here. They’re all important to me,� he said. Mummert will be aided in this task by Terry Underkoffler, who has served as a tennis pro in Ocean q

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nyone who has visited the Manklin Meadows Racquet Sports Complex in Ocean Pines on any given morning will likely be greeted by a packed parking lot, full courts and plenty of people playing tennis, platform tennis and pickleball. The facility, which includes eight Har-Tru soft tennis courts, two hard-surface tennis courts, six platform tennis courts and eight pickleball courts, is poised to establish itself as a premier racquet sports destination with the recent addition of Vernon Mummert and Terry Underkoffler to its staff. “I am really excited to see the growth coming to our beautiful racquet center and the team being put in place to help make that happen,� said Ocean Pines Recreation and Aquatics Director Colby Phillips, who oversees racquet sports operations. Mummert, who joined Ocean Pines as the facility’s manager and head pro this past summer, brings to the position 40 years in college athletics and an impressive list of


OCEAN PINES

November 2018 Ocean Pines PROGRESS

Rec committee surveys Pines parks for facility conditions, ADA compliance Advisory group recommends converting S&R bulkhead staging area to parkland By ROTA L. KNOTT Contributing Writer he Recreation and Parks Advisory Committee is once again performing an exhaustive evaluation of the facilities at all of the Ocean Pines Association’s parks. Director Collette Horn, liaison to the advisory committee, during a Nov. 10 Board of Directors meeting said the group reviews the parks as a way to help the OPA administration ensure the facilities are up to standards. “I just wanted to provide a little bit of information about what the rec and park advisory committee has been doing,” Horn told the board in making her presentation. She said advisory committee members will be performing an inspection and assessment of the all of the amenities and equipment located in each Ocean Pines park. “So this is all done in the service of supporting the GM and the public works department in maintaining adequate accessibility and maintenance and safety at these parks,” Horn said. The committee will inventory the playground equipment and determine its general condition. It will also be determining if the playground equipment and the access to the park itself is compliant

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with the requirements of the Americans with Disabilities Act. The evaluation will also make note of other facilities at the community’s parks, such as walking tracks or soccer fields and review whether there are restrooms, drinking fountains, and the condition of any fencing. Committee members complete a ten question form when performing their reviews and evaluations of the parks, making note of the date of their visit, who conducted the visit, and the name of the facility they visited. The form asks for a description of any playground equipment, such as slides, swings, or climbing structures, and a brief overview of the condition of the equipment. It also asks what type of play surface is under the playground equipment, such as mulch, and the condition of the surface, and if the playground equipment is ADA (Americans with Disabilities Act) accessible via an opening through the curb system. The survey calls for a listing of other features at the facility, if there are ADA-compatible signed parking spots and how many, if there is a restroom, water fountain, and a fence around the facility. q

Pines since the spring. As a coach, Underkoffler has won several league titles as well as state, regional and national awards for coach of the year. His players have received all-state, all-American and national team recognition. Underkoffler, who has worked in education since 1976, currently teaches at Worcester Preparatory School in Berlin, where he also coaches men’s tennis and soccer. Even though his school year has started again, he said he plays Early Bird tennis in Ocean Pines and will continue to teach private lessons and to lead clinics and camps. Plans for upcoming programs at the racquet complex are already underway, Mummert said, and he’s working on setting up intra-club play for men’s and women’s doubles. He’s also hoping to implement a hitting partner program in tennis and holding clinics for platform tennis and pickleball. Both agree that what Ocean Pines has to offer in terms of racquet sports is unparalleled in the region and that the enthusiasm people have is contagious. “Once you come into the Pines, you begin to like everything else about it,” Underkoffler said.

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32 Ocean Pines PROGRESS

OCEAN PINES

November 2018

Parks survey From Page 31

The form provide space for committee members to make any other comments about the park they’re surveying. Horn said the advisory committee members also performed a site visit to the Swim and Racquet Club last June and developed some recommendations for its future use. She said those recommendations align very closely with what General Manager John Bailey has also suggested for use of the site “now that we’re going to be converting it away from storage and staging of bulkhead material.” The advisory committee’s recommendations for the Swim and Racquet Club property were to repair the two existing tennis courts at the site so they can be used by Ocean Pines members. Also, the committee suggested turning the other existing asphalt area into passive park land “so that the community can capture that beautiful vista out there.”

Golf course painting

The Ocean Pines Golf Club as the inspiration for a painting created by one of the community’s residents in an art competition. Sponsored by the Worcester County Arts Council, the Paint Berlin “plein air” event has local artists creating their works of art out in the open. This year’s competition included Ocean Pines in its painting locations. Ocean Pines resident Jill Glassman captured a scene of the Ocean Pines Golf Club as her setting.

Bailey vows effort to improve appearance of Ocean Pines homes next spring

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strued as over-zelous enforcement. The OPA itself has had a problem over the years with less than vigorous upkeep of its own assets. For instance, the exterior of the old guardhouse at the North Gate for much of this past year sported a coat of green fungus, of the sort that is targeted for enforcement action by CPI. -- Tom Stauss

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November 2018 Ocean Pines PROGRESS

Board fails to second Trendic motion to seek proposals for golf course leasing But directors agree that further ‘dialog’ is justified By TOM STAUSS Publisher motion by Director Slobodan Trendic to direct the general manager to issue a request for proposals for leasing out the Ocean Pines golf course failed for lack of a second. But the Board of Directors, in discussion after the motion failed, agreed that the idea warranted further research, and Trendic later said he wasn’t giving up on the idea even while he respected the initial judgment of his colleagues. The motion was offered by Trendic late during a Nov. 10 meeting of the Board of Directors. While the motion failed, the directors informally agreed among themselves that the idea warranted further information-gathering. “The dialog will continue,” Ocean Pines Association President Doug Parks said. “I think everyone would agree.” Director Esther Diller seemed like she might jump in to offer a second, but she didn’t. Even if she had,

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the idea probably would have been a tough sell to win a majority. But after Trendic’s motion failed, she said she couldn’t understand the reluctance of some of her colleagues to gather information with which to make informed decisions. Director Frank Daly, in follow-up email to the Progress, said “there will, IMO, be further discussions. As a Board we have an obligation to all lot owners to explore any and all alternatives that can provide services cheaper, faster and/or better. And that applies to each and every budget expenditure and pay amenity.” He called the lack of a second to Trendic’s motion “a procedural issue, not a rejection of the idea. Any and all ideas to improve the performance of the combined golf operations (and all other amenities) are still on the table for consideration as part of the planning and budgeting process.” Trendic, in response to a Progress email, said part of his motivation to offer his motion was “the poor condition of our golf course. The gen-

eral manager provided the reason and that it could cost as much as $100,000 to fix the problem, repair the damage caused by an individual staff person.” Trendic also said that contrary to a common perception that the golf course is doing well financially, “I see our golf course showing performance concerns.” He cited 10 percent lower yearover-year net revenue through the end of September, $1,014,538 compared $1,119,670. He said September’s net revenue in golf was 40 percent down year over year, $75,000 compared to $123,000 a year ago. He cited a 40 percent decline in memberships, from 242 five years ago to 141 today. He also said there’s been a decline in the number of rounds played when comparing 2016-17 to 2017-18. “The above data, and concerns over the estimated costs for renovating the clubhouse, is what motivated me to suggest exploring the leasing

33

option. A total lease would place the risks on a operating company and that would also include all expenditures,” he said. Given the willingness of his colleagues to keep the dialog going on the possibility of issuing a leasing RFP, he said “I do remain hopeful” about prospects for leasing in the future. During the Public Comments segment of the meeting, members of the Ocean Pines community, including Larry Perrone, president of the Golf Members Council, objected to the idea. He and others said that while outsourcing seems to be working at the Ocean Pines Yacht Club, that doesn’t mean it would work or is needed at the golf course. The Yacht Club is not being leased, but rather is run by an outside management company. A key difference, opponents to leasing said, is that the OPA demonstrated over the years that it lacks the expertise to run a successful food and beverage operation. At the Ocean Pines golf course, in contrast, Director of Golf John Malinowski and course superintendent Andre Jordan have shown they can competently manage the course, they said. q

BOARD OF DIRECTORS


34 Ocean Pines PROGRESS

BOARD OF DIRECTORS

November 2018

Board accepts employee handbook, with vow to continue looking at employee perks and benefits An extract or ‘digest’ version of the original document approved as a friendly amendment By TOM STAUSS Publisher ith a caveat that they would continue to review what some might consider are overly generous employee perks and benefits, Ocean Pines directors on Oct. 20 adopted a new employee handbook for the Ocean Pines Association, to replace one that is largely out-of-date. The directors also agreed to develop a “digest” version that would be appended to the new 60-page handbook so it can be more easily understood by employees. There was general acknowledgement that the approved handbook, drafted as it was with the assistance of the OPA’s lawyer Jeremy Tucker, is replete with “legalese” that protects the interests of the OPA. That language can be difficult to read and comprehend, prompting Director Esther Diller to offer a friendly amendment to the original motion by Director Ted Moroney. Her amendment called for the

drafting of a more user-friendly, easier-to-read summary of the base document, perhaps totalling about ten pages, that she said would supplement the handbook. “My businesses reduced our handbook to about ten pages,” she told her colleagues. Moroney accepted the friendly amendment as a “way of moving things along.” The directors also agreed to continue discussion of what at least some directors regard as overly generous perks in the handbook, including free use of Ocean Pines amenities by employees and, according to some reports, their guests. Director Slobodan Trendic began discussion of Moroney’s original motion to adopt the handbook by commenting that he was not comfortable with voting on it at the Oct. 20 meeting because of several issues pertaining to employee perks “that the board should consider.” Diller said she, too, wanted “further conversation” about those

perks. Moroney, pressing for a board vote on his motion, said there was nothing in his motion to prevent the board from revisiting issues once the handbook had been adopted. But he said delaying adoption of parts of the handbook that clarify many other areas and offer legal protections to both the OPA and staff would not be a good idea. OPA President Doug Parks agreed, saying he didn’t want to “squander the opportunity” to adopt a handbook in which 97 percent of it “we need” and is not controversial.

Golf course leasing

golf operations out of the realm of politics, in which golfers are often put on the defensive. His motion called for an initial step of obtaining “golf advisory services” from a consulting firm “with expertise in the golf industry on a national level by Nov. 30” and then, with the firm’s assistance, the issuance of a request for proposals from third party golf course operators to lease the golf course. His motion called for a report on the RFP process to the board by Feb. 8 of next year. According to Trendic, OPA has operated its golf course previously using in-house resources and feebased professional management services. “Both approaches produced mixed and inconsistent results, thereby placing a burden on the entire association’s membership. Continuing industry changes and growing competition from the surrounding courses makes it necessary for the OPA Board to seek a financially sustainable long-term solution,” Trendic said.

Members of the golf community and others said that since the board last year to move the OPA back inhouse, operations have stabilized, and even produced a small surplus last year. This year, golf is showing a surplus of $74,981 through September, but that’s roughly $48,000 off last year’s pace even while it’s ahead of budget by about $27,000. Last year, when the Tern Grille at the lower level of the Country Club was managed by the OPA food and beverage manager, the operation lost money. This year, back under the supervision of Malinowski, the bar and grill operation is slightly ahead of budget and in the black by about $11,000 through September. There also have been some reports of late that the golf course, after being hailed by almost everyone as being in great shape earlier this year, more recently has taken a turn for the worse. General Manager John Bailey said recently that someone on the golf course maintenance staff did not come back to monitor greens

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From Page 33

OPA General Manager John Bailey, a former golf pro, also was cited for his experience in running or overseeing golf operations. Another argument proponents of continued in-house management made is that, if the course were operated for profit by a private operator, it would be more likely to cut corners on maintenance, thereby making the course less desirable for members, non-members from Ocean Pines who play the course, or outside golfers. Trendic did not criticize current management but framed the idea as an attempt to “provide stable longterm financial benefits that are fair to all OPA homeowners. The intent is to enable the golf property to operate as a stand-alone business entity and to eliminate changing political and/or in-house management views and pressures.” He suggested that the local golf community should welcome the leasing option because it would take

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Director Frank Daly said he could support voting for the handbook with the caveat that perks and benefits would be reviewed later, a position that Director Steve Tuttle also took for his own. Trendic, too, said he could support moving forward with a vote, provided that an supplemental document would be drafted and perks and benefits also would receive additional scrutiny. Parks agreed, advocating for an “extract” of the handbook containing highlights. Director Colette Horn said she, too, liked the idea of an extract but raised another point to which no director had an immediate answer. “Which version does the employee sign?” she asked. Diller’s friendly amendment and the amended version of Moroney’s motion to approve the handbook were passed unanimously.

Route 589 reopens after repairs

stretch of Route 589 near Ocean Pines that has been closed for two weeks due to slope repair has reopened. What was expected to be an eight-week project turned out to be a two-week repair. All lanes of Route 589 at Turville Creek, just south of Gum Point Road, reopened to through traffic. Crews have worked to complete significant slope and embankment repair along Route 589, where close to 20,000 cars travel each day, according to the State Highway Administration. after having turned the water on earlier in the day, causing extensive damage that he estimated might cost the OPA $100,000 to fix. Trendic told the Progress that if the course were leased, OPA property owners would not have to absorb the cost of fixing a mistake caused by an in-house maintenance staffer. He also said that while outside management has been tried twice in the past ten years, initially with Billy Casper Golf running the course followed by Landscapes Unlimited, leasing it out has not been tried. Perrone said that leasing had been offered by the OPA years ago, but there were no takers. Trendic said that with the assistance of a national golf course consulting firm, an RFP might stand a better chance of producing qualified third-party operators. He also told the Progress that the best time to offer a lease option would be when the course was showing improvement financially or operating in the black, proving to a third-party operator that it could operate the golf course profitably.


OPA FINANCES

November 2018 Ocean Pines PROGRESS

OPA records $23,000 positive variance to budget in October Half way into the fiscal year, the positive variance is $129,000, well ahead of last year’s pace By TOM STAUSS Publisher he Ocean Pines Association is in solid financial shape six months into the 2018-19 fiscal year. After recording a $26,000 positive variance to budget in September, after similar results in July and August, the OPA generated a positive operating fund variance if $22,851 in October. Revenues exceed budget by $34,892, total expenses were over budget by $6,263, and new capital was over budget by $5,778. Excluding new capital, the positive variance to budget for the month was $28,629. Half way into the 2018-19 fiscal year, the OPA has a positive operating fund variance of $118,143, on revenues that were over budget by $293,666, total expenses over budget by $164,410, and new capital over budget by $11,113. Excluding new capital, the positive variance to budget at the halfway mark is $129,256. As expected, the OPA lost money in October, recording a departmen-

T

Source: OPA Director of Finance Steve Phillips

tal loss of $487,367. But half way into the fiscal year, the OPA has recorded a $3,883,860 surplus, which compares to a $3,087,582 surplus a year ago. That’s a year-over-year swing in net operating results of more than $796,000. The Yacht Club returned to surplus status in October, after losing $17,395 in September and under-performing relative to budget by $22,676. The Yacht Club’s $16,942 surplus in October exceeded budget expectations by $25,791. At the year’s half way mark, the Yacht Club is in the black by $150,3875, ahead of budget by $120,170. The year-over-year positive variance in net results is an impressive $437,215. Golf recorded a $6,033 surplus in October, with a negative variance to budget of $9,757. At the year’s half way mark, golf is ahead of budget $17,058. With a $81,015 surplus through the end of October, golf’s negative

year-over-year swing in net results is roughly $42,000. But the Tern Grille, under management of Director of Golf Malinowski, is holding its own, recording a slight $376 surplus in October. That was $603 over budget. At the half way mark, the Tern Grille has generated a $11,201 surplus for the year, for a positive variance to budget of $1,865. The Beach Club, not open this time of year, lost $5,386 for the month and missed budget by $2,022. For the year so far, the Beach Club has a $135,749 surplus, ahead of budget by $16,849. The year-over-year positive swing at the half way mark is $186,615. Both the Yacht Club and Beach Club are run by the Matt Ortt Companies. Golf operations are run inhouse. The Beach Club, in the black by $27,247 during September, benefited from a one-time shift of expenses related to the Ortt Companies management fee from the Beach Club to the Yacht Club. Prior to the adjustment, manage-

35

ment fees had been shared between the two amenities operated by the Matt Ortt Companies. OPA General Manager John Bailey said that the adjustment was made because OPA budgets in prior years had allocated the cost of the food and beverage manager entirely to the Yacht Club, even though the manager’s time had been spread throughout all or most of the OPA’s food and beverage venues. The Matt Ortt Companies’ management fee replaces salary and benefits paid to former food and beverage managers. Any bonuses due the Matt Ortt Companies will be calculated on year-end results, and do not appear in year-to-date financials. Aquatics, while recording a $25,753 loss in October, nonetheless recorded a positive variance to budget for the month of $15,593, on strong swim lesson revenues and salary and benefit expenses about $15,500 under budget. Half way into the fiscal year, Aquatics is in the black by $240,043, under budget by $69,499, for a negative year-over-year swing of $88,111. However, Aquatics’s negative variance to budget will be offset by a one-time revenue adjustment recently announced by OPA Treasurer John Viola in the amount of $85,000. The revenue is attributable mostly to coupon debit cards sold but not credited to Aquatics over a two or three-year period. Viola has said that this adjustment will be done before the end of the fiscal year. It’s sufficient to more than offset the negative variance to budget recorded through the first half of 2018-19. Other amenity departments, while losing money in the month, missed their budgets by very modest amounts. Reserve summary -- As of Oct. 30, the OPA had $10,116,047 in reserve accounts, comprised of $5.97 million in the replacement reserve, $3,005,431 in the bulkhead and waterways reserve, and $1,146,738 in the roads reserve. Capital summary -- The OPA through October spent $351,025 in replacement capital, $64,125 more than budgeted. Balance sheet -- The OPA balance sheet as of Oct. 30 shows $11,681,704 in short-term investments, compared to about $9.1 million held by the OPA in September of 2017. Operating cash of $1,239,399 was very close to what it was for the same month a year ago.


36 Ocean Pines PROGRESS

OPA FINANCES

November 2018

Aquatics Department to receive $85,000 in debit card revenue One-time adjustment will offset negative variance to budget in current fiscal year. By TOM STAUSS Publisher he Ocean Pines Association’s Aquatics Department will be credited with revenue from the sale of debit “coupon cards” over several years, perhaps dating back to 2015. OPA Treasurer and Chief Financial Officer John Viola announced during the Oct. 20 meeting of the Board of Directors that the department will be credited with a onetime windfall of $85,000 in the current fiscal year. Previously, Viola had indicated a range of “unrealized” revenue from $75,000 to $100,000 for the debit cards. In addition, Viola said that going forward the department will be credited with the revenue from the sale of the debit cards and refreshing of membership cards in the month they are sold. No longer will there be any delay in crediting the revenue when the cards are swiped, he said during his treasurer’s report delivered during the Oct. 20 board meeting. Viola did not indicate what month the missing revenue would be credited, and it did not make it in either the September or October financials . In his most recent treasurer’s

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report, he said it would be done sometime in the last half of the fiscal year. Whenever the revenue is recognized, it will make a significant dent in the negative variance to budget that has occurred in the Aquatics Department so far this year, even offsetting it altogether. While the department year-todate through September had a net surplus of $265,796 that was behind budget by $85,092, very close to the amount of money that will be credited to the department before the end of the fiscal year. Because Aquatics exceeded its budget by $15,593 in October, according to monthly financials posted on the OPA Web site Nov. 16, the one-time credit could even result in a net performance for the year that does better than budget. That didn’t appear possible only a few months ago. That will depend on how well the department does for the remainder of the fiscal year, The Progress has asked where the revenue from debit card sales or refreshed membership cards show up in OPA financial reports if not credited to Aquatics. Viola has said the funds do appear on the OPA balance sheet and

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eventually have shown up as Aquatics revenue. The Aquatics Department receives some revenue from the sale of debit coupon cards, which sell for $35 and entitle card holders to access OPA swimming pools at a discount from the daily cash rate. But that normally occurs when the card is swiped, that is, used for a visit to one of Ocean Pines’ pools. The accounting treatment of that revenue stream presumably dates back well before Viola’s tenure as treasurer and well before the arrival of Director of Finance Steve Phillips earlier this year. Before debit cards were used for discounted visits to the pools, the OPA issued paper coupon books. The old coupon books and the newer debit cards often remain in the possession of purchasers over multiple years. Sometimes they’re lost or discarded or for whatever reason are simply not used. Over the years, the OPA has credited to the Aquatics Department “coupon” line item revenue attributable to the “unused” portion of the coupon books or debit cards. But the last time this was done, the Progress has learned, may have

been sometime in 2015, which leaves up to three years when a lot of coupon revenue could have been credited to Aquatics but wasn’t. The practice of deferring the recording of coupon revenue to Aquatics differs from the way revenue from two other cards are recognized. Aquatics’ share of the bundled $200 Beach Club parking/pool passes -$120 per card is allocated to Aquatics -- as well as the $120 passes good at all five OPA pools are fully credited to Aquatics when sold, or at least soon after. But there appears to be lag-time in recognizing revenue associated with the “refreshing” of the all-access cards, Viola said. To further complicate matters, there appears to have been a lag in the recognition of membership revenue related to these two $120 membership cards this year, which explains why Aquatics had an extremely good month in August. The department shows a “surge” in membership revenue in the amount of $40,970, beating the forecast by almost $26,000. Viola told the Progress in a reply email in September that “after a collaborative effort made by the director of aquatics, the membership lead, and the finance director, we have an answer and [are] working on a solution that I will address in the next Treasurer’s Report. At this time I can tell you it will have a favorable impact on the Aquatics revenue and we will report on a more consistent basis going forward. “To summarize it was a timing situation of recognizing revenue, nothing else should be read into it,” Viola said. •Wildlife Inspections, Exclusion and Prevention •Wildlife Humane Live Trapping •Bat Inspection, Exclusion and Prevention •Mole and Vole Control •BedBug Heat Treatment Specialist •BedBug Monitoring and Prevention •Crawlspace Encapsulations •Aprilaire Dehumidifiers

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38 Ocean Pines PROGRESS

November 2018

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November 2018 Ocean Pines PROGRESS 39

WORCESTER COUNTY Ocean Pines leaf collection scheduled

Leaves and other yard debris bagged in paper bags will be collected by Ocean Pines Public Works Nov. 19 to Dec. 21. Bags will be picked up on days opposite from Republic Services’ collection days. Only paper bags will be accepted, and there is no limit to the number of bags that residents may place curbside. Thirty-gallon paper bags may be purchased at Public Works in bundles of five for $10. Public Works will vacuum ditch leaves that have been raked to the street beginning Nov. 19 until completed. Yard leaves that have been raked to the street will not be picked up. These leaves must be placed in paper bags for collection. Ocean Pines residents may also bring leaves and yard debris in bulk or paper bags to the Public Works yard, near the south station fire department. The yard will be open Monday-Friday 7:30 a.m. to 3 p.m. and Saturday 8 a.m. to 3 p.m., Nov. 19 to Dec. 21.

COUNTY BRIEFS County, Verizon sign lease for land at OP treatment plant

The Worcester County Commissioners on Oct. 23 approved signing a five-year land lease agreement with Verizon Wireless that allows the company to construct a free-standing communications tower on a 50 by 50 foot area of property at the Ocean Pines Wastewater Treatment Plant. For the privilege, Verizon Wireless will pay the County $20,000 annually, with two percent increases annually for the duration of the agreement. John Tustin, county director of public works, explained that this five-year lease includes a provision that would potentially permit four additional five-year renewals. In response to a question by Commissioner Joe Mitrecic, Tustin advised that the county had done its due diligence to compare lease pricing, and he further agreed to speak with Ocean City officials regarding similar lease rates. County Attorney Maureen How-

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Price: (00.00) 3.25 %(00/00/00) TAX-FREE* * Coupon: 3.25 % TAX-FREE* 07/15/2036 Maturity Date: (00/00/00) Prince Georges Md Muni (Name of MuniCnty Bond) Maryland State Health and High (Name of Bo Carrie Dupuie, AAMS Maryland State Health and Higher Education (Name of Muni Bond) (Financial Advisor Name) 07/15/2028 Maryland State Health and Higher Education (Name of Muni Bond) Callable Date: (00/00/00 or N/A) 98.500 Price: (Approved (00.00) Price: Title)99.999 (00.00) Coupon: (00/00/00) 3.25 100 Call Price: (000) (Address) 99.999 Price: (00.00) 4.00 Coupon: (00/00/00) 07/15/2036 Maturity Date: (00/00/00) (City, ST 00000) 99.999 Price: (00.00) Coupon: (00/00/00) 4.00 (000-000-0000) I (Toll-Free: 800-000-0000) / AAA8/15/2045 07/15/2028 Maturity Date: (00/00/00) Rating: (XXX/XXX) Callable Date: Aaa (00/00/00 or N/A) Fax: (000-000-0000) 8/15/2045 100 Maturity Date: (00/00/00) Call Price: (000) 8/15/2025 (E-mail Address)(00/00/00 or N Callable Date: Coupon: (00/00/00) 4.00 Other: (Obligor) (Website) Aaa / AAA or N/A) Rating: 8/15/2025 (XXX/XXX) Callable Date: (00/00/00

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Following an Oct. 23 public hearing on the proposed legislation, the Worcester County Commissioners Financial Advisor approved new animal control reg215 North Main Street ulations to address animals being Berlin, MD 21811 kept outdoors in unsafe conditions. 410-208-1704 Carrie.Dupuie@RaymondJames.com County Attorney Maureen Howarth said the bill amends the county code to include definitions of the Call Price: 100 (000) * terms suitable shelter, tethered, reOther:% (Obligor) (0.00%) TAX-FREE 3.25 TAX-FREE* 8/15/2045 100 Call Price: (000) Rating: A2/A (XXX/XXX) straints, and unsafe weather condiA2/A Rating:(Name (XXX/XXX) tions and adds new sections estabPrince Georges Cnty Md of Muni Bond) Other: (Obligor) 8/15/2025 Carrie Dupuie, AAMS lishing standards for tethering an**AsAs ofof00/00/00. Other: (Obligor) 06/07/2018 Carrie Dupuie, AAMS Price: 98.500 (00.00) (Financial Advisor Financial Advisor Name) to availability and price change. Minimum Coupon: purchases may apply. The yield is the lesser of yield to maturity or yield to call. Interest is generally exem (00/00/00) 3.25 animal, suitable tiered shelter of an-Subject Advisor Name) (Approved Title) Advisor from federal taxation and may also(Financial be free of state and localFinancial taxes for investors residing in the state and/or locality where the bonds were issued. Howev 100 215and North Main bonds may be subject to federal alternative minimum tax (AMT), profits and lossesStreet on tax-exempt bonds may be subject to capital gains tax treatme 07/15/2036 Maturity Date: (00/00/00) by Moody’s/Standard & Poor’s. A credit rating of a security is not aMD recommendation to buy, sell or hold the security and may be subject to revie imals if left outdoors and unattend-Ratings Berlin, 21811 Title) revision, suspension, reduction or withdrawal at any timeDate: by(Approved the assigning Rating Agency. Insurance pertains only to the timely paymentAAMS of principal and int (Address) 07/15/2028 Callable (00/00/00 or N/A) Carrie Dupuie, 215 Main Ratings Street No representation is made as to any insurer’s ability to meetNorth its financial commitments. and insurance do not remove market risk since they 410-208-1704 ed, and that shade must be providedest.not guarantee (City, ST 00000) the market value of the bond. Call 100 (Financial Advisor Price: (000) Carrie Dupuie, AAMS Financial Advisor Na A2/A Carrie.Dupuie@RaymondJames.com James Financial Services, Inc.Aaa member FINRA/SIPC. I(XXX/XXX) (Toll-Free: 800-000-0000) Berlin, 21811 /MD AAA (Financial Advisor Name) Rating: Financial Advisor (Approved Title) if an animal is to be left outdoorsSecurities offered through Raymond (000-000-0000) (Address) 215 North Main Street Fax: (Obligor) (000-000-0000) Other: (Approved Title) 410-208-1704 and unattended and the forecasted 215 NorthST Main00000) Street (E-mail Address) Berlin, MD 21811 (City, (Address) (Website) Berlin, MD 21811410-208-1704 Carrie.Dupuie@RaymondJames.com weather is 85 degrees Fahrenheit or (Address) (City, ST 00000) (000-000-0000) I (Toll-Free: Carrie Dupuie, AAMS 800-000-0000) 410-208-1704 Carrie.Dupuie@RaymondJame (Financial Advisor Name) higher. (City, ST 00000) (000-000-0000) I (Toll-Free: 800Carrie.Dupuie@RaymondJames.com (Approved Title) Fax: (000-000-0000) (000-000-0000) I (Toll-Free: 800-000-0000) The bill specifies that suitable Fax: (000-000-0000) (Address) Fax: (000-000-0000) (E-mail (City, STAddress) 00000) (E-mail Address) shelter is a structure with secured (000-000-0000) I (Toll-Free: 800-000-0000) (E-mail Address) 06/07/2018 (Website) (Website) Fax: (000-000-0000) sides, a roof, and floor to protect**AsAs ofof00/00/00. (Website) Address) Dupuie, AAMS Subject to availability and price change. MinimumCarrie purchases may (E-mail apply. The yield is the lesser of yield to maturity or yield to call. Interest is generally exem federal taxation and may also be free of state and local taxes for investors residing in the state and/or locality where the bonds were issued. Howev (Website) the animal from the weather. Therefrom bonds may be subject to federal alternative minimum tax (AMT), and profits and losses on tax-exempt bonds may be subject to capital gains tax treatme by Moody’s/Standard & Poor’s. (Financial A credit rating of a Financial security isAdvisor not a recommendation buy, sell or hold the security and may be subject to revie Advisor toName) must be a floor, free from rot andRatings revision, suspension, reduction or withdrawal at any time by the assigning Rating Agency. Insurance pertains only to the timely payment of principal and int est. No representation is made as to any insurer’s ability to meet its financial commitments. Ratings and insurance do not remove market risk since they guarantee the market value of the bond. (Approved Title) standing water, and dry and clear ofnotSecurities * As of 9-28-18 offered through Raymond James Financial Services, Inc. member FINRA/SIPC. Subject to availability and price 215change. NorthMinimum Mainpurchases Streetmay apply. The yield is the lesser debris, fecal matter, and infestation. of yield to maturity or yield to call. Interest is generally exempt from federal taxation and may also be free of state and local taxes for investors residing in the state and/or locality where 09/28/2018 Berlin, MD 21811 **As As ofof 00/00/00. It also has to be of a size appropriate 09/28/2018the bonds were issued. However, bonds may be subject to federal alternative tax (AMT), and **As As ofof00/00/00. (Address) profits and losses on tax-exempt bonds may be subject to capital gains tax treatment. RatSubject to availability and price change. Minimum purchases may apply. The yield is the lesser of yie ings bychange. Moody’s/Standard & Poor’s. A credit rating of alesser security a recommendation to is gener to the size of the animal using it and Subject to availability and price Minimum purchases may apply. The yield is the offor yieldisinvestors tonot maturity orresiding yield to call. in Interest from federal taxation and may alsothe besecurity free of state and local taxes revision, the stat 410-208-1704 06/07/2018 andtaxes may subjectresiding to review, suspension, reduction or were issue **As As ofof00/00/00. federal andbuy, maysell alsoorbehold freealternative of state and local forbeinvestors in and the state and/or locality where the on bonds bonds from may be taxation subject to federal minimum tax00000) (AMT), profits and losses tax-exem (City, ST withdrawal at anyminimum time bytaxthe(AMT), assigning Rating Agency. Insurance pertains only to the timely bonds may be subject to federal alternative and profits and losses on tax-exempt bonds may be subject to capital gainsbuy ta have adequate ventilation to Ratings allow by Moody’s/Standard &principal Poor’s. Ainterest. creditNorating of a security isany notinsurer’s a recommendation to payment of and representation is made to ability to meet its Ratings by & Minimum Poor’s.or A credit rating of a may security is not a recommendation to buy, sell or holdtothematurity security and may betosubjec Carrie.Dupuie@RaymondJames.com Subjectrevision, to availability andMoody’s/Standard price change. purchases apply. The yield isremove the lesser of Rating yield orInsurance yield call. suspension, reduction withdrawal at any time by the assigning Agency. financial commitments. Ratings and insurance do not riskpertains since they guarantee revision, suspension, reduction or withdrawal at any time by the assigning Rating Agency. Insurance onlycommitments. todothenottimely paymentRatings of princip the animal to maintain normal body est. No representation is made as to any insurer’s ability to meet its financial from federal taxation and may also bemarket free stateof and localto taxes investors residing in theandstate and/or locality Ifor(Toll-Free: 800-000-0000) value theability bond. est. No representation isthe made as (000-000-0000) to ofany meet its financial commitments. Ratings insurance do not removewhere market the risk sib not guarantee market value ofinsurer’s the bond. bonds may be not subject to the federal alternative tax (AMT), and profits and losses on tax-exempt bonds may be subject to guarantee the market value of theminimum bond. temperature. Securities offered through Raymond James Financial Services, member FNRA/SIPC. offered through Raymond James Financial Services, Inc.Inc., , member FINRA/SIPC. RatingsSecurities by Moody’s/Standard & Poor’s. A credit rating of a security is not a recommendation to buy, sell or hold the security an Securities offered through(c)Raymond James Financial Services, Inc. , member FINRA/SIPC. Fax:Services, (000-000-0000) 2015 Raymond James Financial Inc., member FINRA/SIPC 15-MFI-0113 ICD BS 8/15 revision, suspension, Unsafe weather conditions arereduction or withdrawal at any time by the assigning Rating Agency. Insurance pertains only to the timely pa

Maturity Date: Callable Date: Call Price: Rating: Other:

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©2015 Raymond James Financial Services, Inc., member FINRA/SIPC 15-MFI-0113 ICD BS 8/15

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Commissioners adopt new animal control regs

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defined as a temperature of 32 degrees Fahrenheit or below or 85 degrees and above. Other unsafe conditions are cold weather and precipitation like rain, wind, snow, ice, sleet or hail that would pose a risk to the animal. Additionally, direct sunlight, hot pavement or any other hot surface that would pose a danger to an animal is considered an unsafe condition. The new law requires tethers to be at least 15 feet long, except for brief and incidental periods of time, and positioned so as to prevent tangling, hanging or drowning an animal. Chain cannot be used as a method of restraint and chains, ropes, or coke collars cannot be used as collars for tethered animals. During public comments on the bill, Heather Bahrami, of the * Worcester County Humane Society Board of Directors, asked the comPrince Georges Mdto give the of MuniCnty Bond) missioners(Name for legislation existing laws the teeth needed for Price: 98.500 (00.00) animal control officers to intervene Coupon: 3.25 (00/00/00) when pets are07/15/2036 to inhuMaturity Date: Georges (00/00/00) Prince Md (Name ofsubjected MuniCnty Bond) mane conditions. 07/15/2028

arth said Verizon Wireless has authorization to build the tower up to 199 feet; however, the plans for this tower are to build a 127-foot tower. She further stated that, while the county has no foreseeable need for space for emergency services or broadband on this specific tower, requests such as these should be reviewed on a case by case basis to determine whether future lease agreements should include a clause allowing the county access to tower space. Commissioner Jim Bunting said technological advances make it difficult to determine what the needs of the county will be for tower space in the future. Therefore, he suggested the lease agreement be amended to include a provision of county space on the tower at no cost to the county. Following some discussion and upon a motion by Mitrecic, the commissioners unanimously authorized the five-year agreement with Verizon Wireless to include a provision to allot free space for the county on the tower.

Financial Advisor

215 North Main Street Berlin, MD 21811 410-208-1704

Carrie.Dupuie@RaymondJames.com

,

06/07/2018 **As As ofof 00/00/00.

©2015

Some Restrictions Apply

Expires 11-30-18

Subject to availability and price change. Minimum purchases may apply. The yield is the lesser of yield to maturity or yield to call. Interest is generally exempt from federal taxation and may also be free of state and local taxes for investors residing in the state and/or locality where the bonds were issued. However, Raymondbonds James Inc.,minimum member FINRA/SIPC ICD BSbonds 8/15 may Financial be subject to Services, federal alternative tax (AMT), and profits15-MFI-0113 and losses on tax-exempt may be subject to capital gains tax treatment. Ratings by Moody’s/Standard & Poor’s. A credit rating of a security is not a recommendation to buy, sell or hold the security and may be subject to review, revision, suspension, reduction or withdrawal at any time by the assigning Rating Agency. Insurance pertains only to the timely payment of principal and interest. No representation is made as to any insurer’s ability to meet its financial commitments. Ratings and insurance do not remove market risk since they do not guarantee the market value of the bond.

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est. No representation is made as to any insurer’s ability to meet its financial commitments. Ratings and insurance do not remo ©2015 Financial Services, Inc., member FINRA/SIPC 15-MFI-0113 ICD BS not guarantee theRaymond market valueJames of the bond.


40 Ocean Pines PROGRESS

WORCESTER COUNTY

November 2018

Commissioners to resolve Rt. 589 rezoning Dec. 18 public hearing set on status of parcels including Ocean Downs casino By ROTA KNOTT Contributing Writer espite opposition from the Worcester County Planning Commission, the Worcester County Commissioners are considering a proposed sectional rezoning along the Route 589, McAllister Road, and Griffin Road neighborhood, sometimes referred to as Taylorville. A public hearing on the proposal will be held before the commissioners on Dec. 18. In April the commissioners reviewed and approved the recommendation of the planning commission to evaluate a sectional rezoning of the properties located to the west of Route 589 and north of Grays Corner Road. Those properties are currently zoned E-1 Estate District and A-1 Agricultural District. The sectional rezoning includes the Ocean Downs Casino and racetrack property, which would open that site to additional commercial uses. Currently, the casino and racetrack property is a mix of agricultural and commercial zoning. The planning commission’s opposition arose from its consideration of five separate rezoning cases seeking to change the classification of properties in the area from E-1 Estate District to commercial districts. Ultimately, however, the planning commission has recommended making no changes at all to the zoning of properties along the subject corridor, Ed Tudor, director of development review and permitting, told the commissioners during a Nov. 7 meeting. “However, the law does provide that in the case of a sectional rezoning you still have to hold a public hearing even though the planning commission is not recommending any changes,” he said. The county commissioners are the ultimate decision-makers in zoning decisions. Tudor said at the time zoning was established in Worcester County in 1965 the entire area under discussion was given an A-1 Agricultural District zoning classification. During a 1992 comprehensive rezoning, the portion to the west of McAllister Road and Route 589 was rezoned to E-1 Estate District, while the wedge shaped portion located between McAllister Road and Route

D

589 retained its agricultural classification. The E-1 Estate District, which had a density of one lot per two acres, was a new zoning district in 1992 and was considered a transitional district between the agricultural and residential zoning districts. During the 2009 comprehensive rezoning, the commissioners chose to retain the existing E-1 Estate District zoning in the area, even though the 2006 Comprehensive Plan called for the elimination of that zoning district. Relative to the current consideration of a sectional rezoning of the area from E-1 Estate District and A-1 Agricultural District to a different zoning classification, the planning commission found that the area is primarily single-family residential in nature and is in fact a long-established residential neighborhood, Tudor said. While there are a few uses which are not purely residential in nature, those uses are allowed either under prior district regulations or by special exception, and are not ones that would require a commercial classification. However, giving the area a commercial zoning classification would make the residences in the area non-conforming uses, Tudor said. Additionally, the planning commission found that the ability of McAllister Road, Griffin Road, and Grays Comer Road, and Route 589 to handle additional traffic created by a commercial rezoning is questionable. Public water and sewer is not available in the area at present nor anticipated in the foreseeable future. The planning commission said there is a significant amount of commercial zoning in the vicinity at present, so there is no need for more commercial zoning. Instead consideration of a rezoning should wait until after the next comprehensive plan is completed, Tudor said. However, residents of the area cite the presence of commercial activity within the sectional area, especially the casino and racetrack, as proof that the character of the area has changed or that there was a mistake made during the last com-

prehensive rezoning of the neighborhood. Under zoning law, changes in zoning have to be justified using one or both of those criteria. The residents who are seeking the rezoning have embarked on a dual track, seeking commercial zoning for their individual properties as well as the sectional zoning. They argue that rezoning their properties from A-1 agricultural to C-2 commercial will combat declining residential property values caused by their close proximity to the busy casino, which recently expanded to include table games in a 35,000 square foot addition and 100 more slot machines. The group, represented by local attorneys Hugh and Mark Cropper, appeared before the planning commission March 1. They were seeking a favorable recommendation on their individual rezoning requests from the planning commission, which would then send that recommendation to the Worcester County commissioners for a final determination. That favorable recommendation didn’t happen. Instead, the planning commission essentially punted, neither approving nor rejecting the individual applications. The planners decided to send the issue of whether to approve spot rezoning of individual properties, or a more comprehensive rezoning of the neighborhood including the casino, to the county commissioners to resolve. They didn’t. Instead, they sent it back to the planning commission for further consideration, either in the form of spot rezonings or a more comprehensive neighborhood solution. It’s taken this long for the issue to make its way back to the county commissioners for resolution. The individual requests for rezoning were opposed by the county’s planning staff, consistent with its long-standing opposition to this kind of rezoning. The bias on the part of staff has been to support comprehensive rezoning throughout the county on a roughly ten-year schedule. But spot rezonings are permitted under county and state law, on the grounds that a mistake was made in the previous comprehensive re-

zoning or that the character of the neighborhood has changed sufficiently to justify a change in the zoning carried by individual properties. The Taylorville residents say both are true in the case of their neighborhood, and they are hoping that the county commissioners will agree with them. The Gray’s Corner-Taylorville area across Route 589 from the casino is in an unincorporated area of homes and commercial buildings still known locally as Taylorville. Decades ago, it was a more defined community, with its own church and businesses, but it never was a town with a mayor and a government. Ocean Downs racetrack was part of it. Now part of the Ocean Pines census area, most of Taylorville is zoned A-1 agriculture, with some estate and commercial zoning in the mix. The casino and racetrack property, one of the county’s largest employers and most successful businesses as measured by revenue, somewhat ironically sits on land that is mostly zoned A-1 agricultural. Some parcels within the casino and racetrack property fronting on Route 589 have commercial zoning. Special exceptions to A-1 zoning over the years have allowed non-agricultural activities on the property, beginning with a racetrack that opened in the late 1940s, at roughly the same time that Route 589 was extended south from Beauchamp Road, Ocean Pines’ northern boundary, to Route 50. There is some controversy over the definition of the neighborhood, but it appears that the Dec. 18 hearing will accept the boundaries of the Taylorville neighborhood as defined by the Croppers in their joint presentation earlier this year. That, at least, is the hope of the residents who are seeking the rezoning. The Taylorville neighborhood was defined in a rezoning case from several years ago as encompassing much of the area on both sides of Route 589 from the southern boundary of Ocean Pines all the way to Route 50, and included both the casino and the commercial-residential hamlet across Route 589 from the casino, including McAllister and Gray’s Corner roads.


COVER STORY Outsourcing From Page 1

of the board to decide next steps. Viola declined to give his personal opinion, again saying that the issue is now at the board level for action. He said that committee member Larry Perrone, part of a team that vetted the four bids, supports the Bailey recommendation. Also on the vetting team were Assistant Treasurer Gene Ringsdorf, Bailey, and Finance Director Steve Phillips. At the Oct. 20 board meeting, in his GM report, Bailey said a “financial team” including Viola, some members of the Budget and Finance Advisory Committee, Phillips and Bailey himself would be involved in evaluating the proposals. “The team will narrow the field based on a review of the proposals, conduct interviews and provide a recommendation to the board of directors,” Bailey said. But contrary to what Bailey said in the Oct. 20 meeting, it turns out Viola was not part of the vetting team, and two who were, Phillips and Bailey, either had a vested interest in the outcome or a bias against outsourcing. Only one member of the B&F committee, Perrone, was on the vetting team, not “some” members, as Bailey had said. Viola later told the Progress that while Bailey did indeed want Viola to be in the vetting team, he decided not to because he’s an officer of the “corporation.” But he also suggested that he would have been happier had Bailey appointed some high level department heads to the vetting team. But he didn’t criticize the team on conflict of interest grounds. Viola said that he was assured by Perrone that the vetting team compared “apples to apples” when weighing the cost of outsourcing against retaining the services of Phillips and the in-house finance department and acquiring NorthStar software. But Viola said he had not yet seen the financial comparisons that support Bailey’s recommendation. Along with members of the committee, three board members participated in the Nov. 14 committee meeting in which Bailey recapped the highlights of his report to the board. The three directors were Frank Daly, the committee’s board liaison; OPA President Doug Parks, who was listening in by telephone; and Slobodon Trendic. Bailey during the meeting did

November 2018 Ocean Pines PROGRESS not dive into the financial details of the cost comparison between Legum and Norman and the in-house model. Viola told the Progress because of pending contract negotiations, details of the L&N proposal probably will not be made public. Daly, contacted by the Progress after the meeting, said certain proprietary information, such as hourly rates for certain services, probably can and should be withheld from the OPA membership, but he said that he and other board members will want to probe deeply into the financial numbers that led Bailey to conclude Legum and Norman’s proposal would cost the OPA more than continued in-house management. Even if a detailed comparison favor retaining in-house management, Daly said he still has lots of questions about the NorthStar proposal, including an analysis of how much improvement in deliverables can be anticipated if that firm’s software is selected. Daly said before the board is ready to make any decision, including whether to proceed with an outsourcing model or retain in-house management, he believes there will need to be a work session between the board and the budget and finance committee to thoroughly review Bailey’s recommendation. Viola commented on the decision facing the Board of Directors during the Nov. 10 monthly meeting of the board, when he said that financial management services had been provided affordably to the OPA for years by retired Controller Art Carmine, who was replaced earlier this year by Phillips. Now it’s a question of how much the OPA wants to spend, he said, implying that the options under consideration will be more costly than in-house management under Carmine, who served an extended period after his official retirement as a paid consultant, assisting Phillips during a lengthy transition. Bailey, in his monthly report delivered during the Oct. 20 meeting of the Board of Directors, identified Legum and Norman, a division of leading national HOA management firm Associa, as one of the contenders for a financial services contract. Other companies included Tidewater Property Management, Four Thought Partners LLC, and Mary Katherine Decker. Of the latter three contenders, only Tidewater Property Management has a public Web site. Bailey said that two responses

41

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The Pine’eer Craft Club’s Crafter of the Month for November is Beth Woodell, a Berlin resident since 2009. She has been creating pure, natural cold-process soap and other toiletries since 2011. All her soaps are made from scratch using common ingredients like coconut oil, coca butter, shea butter, and essential oils of many kinds. Her natural soaps and other creations are available at the Pine’eer Artisans and Gift Shop in White Horse Park under the brand name Savon de Pines (Soap of the Pines). The shop is open every Saturday 9 a.m. to 3 p.m. and Sundays 10 a.m. to 4 p.m.

were received for limited financial consulting services, one from FirstService Residential, and another from BDK, the OPA’s current vendor for limited financial services, including software maintenance. Viola said none of the candidates submitted a proposal for assuming management of the entire OPA, as was permitted in the request for proposals. The general manager, who has not been a supporter of outsourcing financial management, met a deadline imposed on him by the board and issued a detailed request for proposals from financial companies that was posted on the OPA Web site Sept. 26. The deadline for responding was Oct. 19. There is no guarantee that the board in the end will approve any outsourcing proposal. Nor is there any indication that the board is ready to approve a NorthStar contract. Echoing Daly’s comments, Trendic has said that he doesn’t believe the NorthStar proposal has been vetted properly. Among deficiencies he has noted is the failure to contact customers of the software vendor to determine on how well the company’s proprietary software performs

in homeowner association environments. Bailey’s renewed support of retaining in-house management and acquiring NorthStar software is consistent with the software-only solution developed by the Technology Working Group this past year. The TWG favored a proposal for software upgrades by NorthStar, but that company and its software solution met resistance on the board. Even so, it’s still in the running as an alternative to outsourcing all of the OPA’s financial management functions. Since this summer’s board election, the center of gravity had shifted on the board in the direction of favoring outsourcing, at least for financial management and IT services. With Bailey’s new report and recommendation, it’s possible that the balance will shift back in favor of in-house management. But that’s not for sure. Only one director, Colette Horn, has expressed conceptual opposition to outsourcing, telling her colleagues that a software solution is adequate to address weaknesses in OPA financial management. She has said that these weaknesses are not personnel-based.


42 Ocean Pines PROGRESS

I

OPINION

November 2018

The time for a Mediacom alternative is nigh

n a perfect world, the Board of Directors would pay attention to Mr. Sackett’s letter published on the opposite page. Now that the Mediacom contract is close to being wrapped up, at a hefty cost in time and legal fees, there is no purpose in delaying taking the next step toward obtaining competing Internet service in Ocean Pines. No doubt there are other businesses in Ocean Pines that require reliable Internet and believe they’re not getting it. The Captain’s Cove property owners association has just hired KCI/ Noovis as a consultant to assist in mapping out a high-speed Internet strategy for that under-served community, including the drafting of a RFP for the laying of fiber optic. This company won out over stiff competition, including a proposal submitted by a former president, board member and Technology Working Group chair Tom Terry and his business partner. The outgoing president of the Captain’s Cove association, Tim Hearn, says that KCI/Noovis was awarded the consulting contract for a modest $22,000. One advantage that KCI/Noovis had over competitors is that KCI/ Noovis also has the ability to bid on and implement installation of socalled “dark” fiber optic cable.

Earlier this year, local builder/ developer Marvin Steen offered to assist the OPA to renovate the An excursion through the curious cul-de-sacs An excursion through theby-ways curious and by-ways and cul-de-sacs Country Club second floor. Workof Worcester County’s County’s most densely community. of Worcester mostpopulated densely populated community. ing with certain department heads, By TOM STAUSS/ By TOM Publisher STAUSS/Publisher namely Eddie Wells and Kevin LayIn addition, KCI/Noovis has part- insurance consultant based in New field, Steen has said he believes the nered with Internet service pro- Jersey for the purpose of reviewing renovation can be accomplished usviders to offer Internet access and coverages independent of the broker ing sub-contractors that can be obcable tv-like programming content. the OPA has been using for roughly tained through competitive bids -- at By hiring a company that can both ten years. Captain’s Cove employs a cost of roughly $500,000, and that draft and bid on a fiber optic con- this consultant for roughly $5,000 includes an elevator. (At the time he tract, Captain’s Cove has probably per year. came up with that estimate, adding guaranteed itself at least one bid for That suggestion was not pursued, exterior siding was not part of the a service that community desperate- and instead the OPA contracted with equation; nor was there any discusly needs in this era of work-at-home an agency, that, in General Manager sion of changing roof lines. Should businesses. John Bailey’s own admission, pro- either or both of these options be It’s not absolutely certain that duced a fatal “hiccup” on the way to deemed essential, then the $500,000 Ocean Pines requires the expertise not producing a comprehensive au- estimate is probably too low.) of a consultant to help it through dit of coverages. No one has contacted Steen to the process of drafting an RFP, but How much did this “hiccup” cost discuss his offer. arguably this need is more manifest in fees? It now appears that a comThe point here is that these are given the fact that the OPA’s Tech- prehensive audit will, in theory, only examples of constructive suggesnology Working Group is no longer be produced by a broker, and, accord- tions that the GM did not pursue, functioning. ing to Bailey’s GM report from Nov. for whatever reason. The board should honestly assess 10, for no fee. Truly? Is that asserA “hiccup” derailed the clear inthe GM’s ability to manage the pro- tion credible? (It is reminiscent of an tent of the board with respect to cess of obtaining credible proposals estimate $400,000 per mile for road an independent audit of insurance for alternative high speed Internet construction he made month’s ago. coverages before the issuance of an given everything else on his plate. Latest official estimate: $187,000, RFP. And the estimates for renoTo add this to his to-do list may be still much too high, but better.) vating the Country Club have skymore than can reasonably and fairly If it’s part of a brokerage con- rocketed, to where any reasonable be asked of him, especially as he and tract, the more likely scenario is cost-benefit analysis of spending his staff enter the intense period of that an audit will be wrapped into $1.2 million and $1.3 million (or budget preparation. the base contract fee or included as more, even assuming there will be Some time ago, it was suggested to a fee-based option. Not much in this any bidders) can’t possibly justify him that he contact an independent world is truly free of cost. this kind of “Cadillac” project. So much time and money has been expended to get us where we are today. And where is that, exactly? The still unfinished production of architectural/engineering drawings that will produce an end product we don’t want or can’t afford. As an alternative to asking the GM to manage the process of obtaining proposals for alternative Internet services, the board could consider appointing a new board technology working group consisting of a few board and community members with relevant business backgrounds. Spending on consultants this year has been a bit excessive. But spending on proven expertise is rarely a bad idea. If the board won’t drive this process, perhaps it needs to rise up organically within the community. Director Slobodan Trendic recently suggested that anyone with interest and expertise should contact him to volunteer their services for a new group to work this issue. That’s a good place to start. Let’s get busy.

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OPINION

November 2018 Ocean Pines PROGRESS

COMMENTARY An unseemly attack on Director Frank Daly

43

Option for third party operator of the Ocean Pines golf course under lease arrangement deserves more scrutiny

T

hough regrettable, the lack of a second on Slobodan Trendic’s motion at the Nov. 10 Board of Directors meeting to consider the possibility of leasing out the golf course was not surprising. The Golf Members Council is a determined group, unafraid to let the board and the community at-large know of its viewpoints on issues of concern to its members. Members expressed themselves forthrightly before Trendic offered his motion, as they had every right to do. They won that round, no doubt about it. Given the unseemly personal attack on Frank Daly the previous month for having the temerity to suggest ways that could save the OPA some golf operating expense, it was certainly not surprising that Larry Perrone of the members’ council and others responded as they did to Trendic’s motion. The members council made its points in opposition to leasing without resorting to what arguably had been an over-the-top personal attack against Daly the month before. The attack occurred after he had already indicated that he had been convinced that closing the course for

LETTER Need for competition in the Internet space

Recently I read a column by Tom Stauss in the October Ocean Pines Progress. In it, Mr. Stauss advocated that the Ocean Pines Board solicit high speed Internet competition ASAP. Based on my experiences with Mediacom Internet service over the past year, the Board does indeed need to “wake up” and get rolling on this issue. This past weekend alone (Thursday through Monday morning), the service was available to me only 60 percent of the time. As a “cord cutter” who does not subscribe to cable service, this is unacceptable. And, since I have land-line phone service through Mediacom, that was unavailable as well. For comparison, the only time our FIOS Internet service in Baltimore was unavailable was during a power outage, once in six years. I have spoken to neighbors in our section (13) as well as in other areas of Ocean Pines. All appear to be having the same problem with Internet service, so I do not believe it is limited to my service only. As background, my wife and I have been part time residents of Ocean Pines for the past 21 years. It is a beautiful and safe place to live and visit. But if a basic amenity such as Internet service is such an issue in our community, someone in the Administration needs to step up and solve this problem. Tim Sackett Ocean Pines

six months or so would not yield the sort of savings he had thought might be possible. So the piling on was totally unnecessary. The golfers already had their win because Daly was willing to listen to an opposing point of view and rescinded his suggestion for a temporary golf course closure during Country Club renovations. Happily, the members council cleaned up its act when responding to Trendic’s motion and made some cogent arguments for why leasing might not be such a good idea. But it was hard to disagree with Director Esther Diller who opined that gathering pertinent information on a leasing option can’t possibly be a bad idea. Given last year’s positive financial results in golf operations, in which there was a modest profit not including the Tern Grille, potential third-party operators might be more interested in exploring leasing options than they were years ago. You don’t really know without reaching out or issuing an exploratory request for proposals as called for in Trendic’s motion. Bringing in a national search firm is a perfectly sensible suggestion as well. The argument that a third-party operator required to make a profit would necessarily make cuts in maintenance expenditures, resulting in a course that’s less playable, doesn’t hold up. One could argue that a competent operator, knowing his business depended on having a playable course, would spend his money wisely and would make sure he was not penny-wise and pound foolish. Moreover, the OPA could make clear in an RFP that the OPA is looking for experienced third-party golf course operators with demonstrated success in operating courses they lease from owners or have owned themselves. In addition, it must be said that in-house operations do not guarantee a pristine golf course immune from human error, as apparently occurred with respect to roughly half the greens on the Ocean Pines golf course in late summer. Arguably, a third party operator might be more likely to implement fail-safe mechanisms and monitoring to ensure what has happened to Ocean Pines’ state-of-the-art greens in late summer doesn’t happen again in Ocean Pines. Finally, to insist that golf is doing so much better financially now than it has historically is not necessarily an accurate assessment of the current trend. After last year’s near break-even performance, this year’s to-date financial results suggest a worrisome trend. Through September, golf net operations are $50,000 off where they were a year ago, suggesting that, unless there’s a turnaround in the months ahead, there will be a golf deficit this year -- how much is still very much a guess. October results will help with the prognosis. But anyone who says golf is doing great and that therefore the boat shouldn’t be rocked

hasn’t looked at the numbers close enough. Over the past ten years, there has been a precipitous drop in members and gross operating revenue. There is credible evidence to suggest that if golf in Ocean Pines is close to breaking even, it may be because maintenance costs are being trimmed at a rate that puts the long-term health of the course in jeopardy. Perhaps the “human error” that caused problems with the greens beginning in August resulted from too few humans on the maintenance staff. Before advancing his idea for a leasing RFP, Trendic may have been well advised to run his idea by the Golf Advisory Committee before committing himself to a motion. But that’s consistent with his style; he offers motions on occasion for the purpose of stimulating a discussion in public, not necessarily because he expects a motion to pass. This can be a useful exercise because it puts our elected leaders on the record, or on the spot, as the case may be. We can gain insight into the quality of their thought processes, or lack thereof, by the dialog that ensues. But the good news is that even though Trendic’s motion failed for lack of a second, certain directors have an open mind about leasing. As noted by Frank Daly later, it was more a matter of process than substance, more a matter of timing than anything else. So perhaps sometime soon, Trendic’s motion can resurface in an alternate form, with a friendly amendment or two if that will help gain a working majority of directors. -- Tom Stauss

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

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

Advertising Sales Frank Bottone 410-430-3660

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


CAPTAIN’S COVE

Ocean Pines PROGRESS November 2018

Jim Silfee elected president of Cove association, succeeding Hearn who remains on board By TOM STAUSS Publisher im Silfee was elected president of the Captain’s Cove property owners association Nov. 10 in a meeting of the Board of Directors that followed the annual meeting. He succeeds Tim Hearn, who served as president since 2012. Hearn remains on the board, having won reelection for a three-year term along with Michael Glick and Silfee. Dawn Wagner was elected as the alternative director with 1,456 votes. Hearn captured the most votes in the annual balloting for the board, with 1,430, followed by Silfee with 1,422 and Glick with 1,301. Ballots cast by the declarant/developer, CCG Note LLC, were the deciding factor in the outcome, as has been the case since 2012. Cove finances -- In the absence of Cove treasurer Michael Glick from the annual meeting, Hearn recapped financial results for the fiscal year that ended Sept. 30. After praising department heads for meeting or exceeding their budgets for the fiscal year, Hearn said the Cove POA ended up the year

J

with net income of $398,000, ahead of budget by about $140,000. He said it was a very positive outcome for a $5 million business. During the meeting that followed the annual membership meeting, the board voted to accept a budget for 2018-19. It retains a $1200 annual lot assessment and $200 additional waterfront payment for owners of canal-front properties. The budget is posted on the Cove Web site, via a Dropbox link. Roads update -- Silfee, the new Cove president, updated the membership on the status of new road construction, which is being financed through the Exhibit X reserve fund that also services the debt on the Marina Club. Silfee said that new roads are “in the process of being completed” in Section 12 and that work will also begin shortly in Section 13, with both sections targeted for completion by the fall of next year. He said that $425,000 has been allocated to the next phase of road construction. Broadband RFP contract awarded -- The Cove’s board of directors has approved a consulting

contract with KCI Noovis to develop a request for proposals to provide broadband Internet services via underground fiber optic cable, General Manager Justin Wilder has confirmed. At the tail end of a meeting of the board Nov. 10, following the Cove annual meeting, Wilder announced that KCI would be mailing out a questionnaire, which some perhaps interpreted to mean it will survey homeowners. Not so, Wilder clarified in an email to the Progress. “The questionnaire is for CCGYC/ CCG Note regarding easements, setbacks and customer counts. It is not being sent out to customers yet, that will likely come later in the process,” he said. Wilder said Glick had asked that the general manager to execute the contract and he has complied. “Since it was less than $50k, no (formal) board vote was needed,” he said. Hearn told the Progress in a telephone conversation that the contract is for $22,000, a reduction from the original $29,000 contained in KCI’s bid. He said that he believes the reduction was the result of omitting

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Sections 14 through 18 from the area within Captain’s Cove to be served. “KCI has asked that it not be prevented from bidding on the project after the RFP is delivered, and we have agreed,” Wilder said. The consulting proposal submitted by KCI and several other firms appear in a Dropbox folder accessible via a link available on the Cove’s member-only Web site, which began experiencing functionality issues last month. Hearn said all the proposals submitted were solid but that KCI had the edge because of its ability and willingness to respond to an RFP. The KCI Noovis proposal indicates that the firm will draft an RFP for the Cove that will ask bidders to provide a speed minimum of 25 megabytes per second per resident, to design a single-mode fiber optic feeder network to support multiple fiber distribution areas (FDAs), to design single-mode FDA’s to make all residents “ready for sales” (RFS), and complete connectivity to all existing homes within 24 months. In addition, the RFP will ask bidders to supply a service level agreement plan that will ensure service orders and maintenance calls will be addressed in a reasonable time-frame. And finally, the RFP will call for the establishment of a revenue-sharing plan that provides monthly recurring revenue for each resident using the network. The company in its proposal says it has maintained good relations with a number of Internet service providers (ISPs), companies that offer various programming options that rival those offered by cable television companies. Starboard Street -- Residents on Starboard Street showed up at both the annual meeting and the board meeting that followed to complain of flood conditions that make it difficult to access their homes during periods of heavy rain. The residents pleaded with the board to build up the elevation of the street to make it possible to drive their vehicles to their homes, but Hearn pushed back on that idea, contending that to do so would just push more water onto adjoining lots. He also said there could be permitting issues involved with adding fill in a wetlands area. After extended debate, the board authorized Wilder to retain the serq

44


November 2018 Ocean Pines PROGRESS

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46 Ocean Pines PROGRESS Starboard Street

CAPTAIN’S COVE

November 2018

From Page 44 vices of an engineer, long-time consultant Chris McCabe, to come up with longer term solutions. Hearn said he was “empathetic” with the plight of homeowners on the street but that solutions may be costly and require professional assistance to devise. One resident said legal action to force the Cove to take remedial action might be forthcoming, but Hearn said the Cove had been “sued eight times” in the past year and in each case prevailed in court. Marina Club chef departs -It was disclosed during the Nov. 10 board meeting that the executive chef at the Marina Club restaurant is no longer employed there. Despite inquiries by a resident, no explanation for the departure was given. Hearn said the departure of the chef has not affected the quality of good and service at the Marina Club restaurant. “I had a great meal there over the weekend,” he said. “BCG has plenty of available staff to handle the load over the winter months.” Curtis complaint -- The Cove board of directors held a special meeting Oct. 23 for the purpose of hearing a complaint by John and Arline Curtis. The Curtises asked the board to authorize staff to clear the lot which the said had not been mowed. Not unexpectedly, the board declined to do so in a vote in which Director Rosemary Hall dissented. The lot is in Section 4, currently not part of the Cove’s forced-mowing program. Wilder in response to a question said that he had reached out to the Curtis’s neighbors but didn’t hear back. Hall said the Cove “should file a complaint” against the neighbors for not properly maintaining their lot, but other directors apparently were of the view that there was no legal basis to do so. Previously, Hearn had said that the board will consider the possibility of adding Section 4 to the forcedmow program. John Curtis expressed frustration that the matter had escalated as far as it has and said he didn’t want “adversarial feelings” to linger over the dispute. Hearn didn’t seem particularly conciliatory, referring to the fact that he had been personally sued by Curtises for failing to act on their complaint. That suit was dismissed in Accomack County District Court Oct. 8.

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Skipjack

Ranch Style Home 3 BR / 2 BA 1408 Sq Ft • $173,600

Tarpon II

Ranch Style Home 3 BR / 2BA 1525 Sq Ft • $205,800

Dolphin 2012

Ranch Style Home 3BR / 2BA 1496 Sq Ft • $177,900

Marlin

Raised Home on Pilings 3 BR / 2 BA 1349 Sq Ft • $185,200

Tarpon

Two-Story Contemporary Home 3 BR / 2.5 BA 1607 Sq Ft • 186,100

Barracuda

Two Story Contemporary Home Two Story Contemporary Home Two Story Contemporary Home 3 BR / 2.5 BA 1818 Sq Ft • $209,400 3 BR / 2.5 BA 1874 Sq Ft • $212,100 4 BR / 2.5 BA 2050 Sq Ft • $232,500

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

CINDY WELSH - REALTOR

Hall Realty 4323 Captain’s Corridor Greenbackville, VA. 23356 302-381-6910 (cell) • 757-854-1604 (office) 757-854-1606 (fax) • Email: candhwelsh@aol.com


November 2018 Ocean Pines PROGRESS

Call for your FREE crawl space assessment! 410-543-4848 MHIC #102406

“Delmarva’s Crawl Space Experts!”

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Ocean Pines PROGRESS November 2018

QUALITY PLUS

If quality matters to you, there is nothing like a Bennington pontoon.

Everything But The Water

32415 Long Neck Road, Millsboro , DE 19966 302.945.1200 One of the Top 100 Boat Dealers in North America! WWW.SHORTSMARINE.COM


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