October early november 2015 progress by Ocean Pines Progress

October - Early November 2015

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Vol. 11, No. 7

www.issuu.com/oceanpinesprogress Jacobs questions proposed capital rollover policy The the Budget and Finance Advisory recently proposed a rolling, multi-year capital budget, in which items contained in one fiscal year’s capital budget but not started or completed could carry-over to the next fiscal year without new board authorization. At the board’s regular meeting Sept. 24, Director Cheryl Jacobs weighed in as a skeptic of the proposal, and explanations offered by Director Tom Terry, General Manager Bob Thompson and others did not seem to sway her. ~ Page 6

THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY COVER STORY

Ocean Pines ponders options for bridge repairs, replacement Construction could use timber, steel or concrete materials

Committee suggests fee for outsiders use of rec programs The Ocean Pines Association’s Budget and Finance Advisory Committee is suggesting that if non-members of the Ocean Pines Association want to participate in paid activities and classes sponsored by the OPA Recreation and Parks Department, they should be required to purchase a ‘membership’ fee of a so far unspecified amount for the privilege of doing so. ~ Page 18

Planning board oks expansion of Manklin Meadows With site plan approval from the Worcester County Planning Commission now in hand, the Ocean Pines Association anticipates releasing a request for proposals later this month for redevelopment of the Manklin Meadows Recreation Complex with additional racquet sports courts. Plans call for reconfiguration of the playground, community gardens and parking to make way for more platform tennis and pickleball courts.. ~ Page 25

By ROTA L. KNOTT Contributing Writer aced with two deteriorating bridges, the Ocean Pines Association is moving ahead with plans to make immediate repairs while still weighing its options for replacing the aging structures. The bridges on Ocean Parkway and Clubhouse Drive have both fallen below the state standards and the OPA is preparing to solicit a request for proposals (RFPs) for short-term fixes. Ultimately, however, the bridges may need to be replaced. Bob Thompson, in his Sept. 24 general manager’s report The Clubhouse Drive bridge. to the Board of Directors, provided an overview of some of the actions OPA President Pat Renaud said the necessary to address the problems with repairs need to be made very soon. “It bridges in Ocean Pines. The report in- behooves us to have a plan in place for cluded a listing of immediate and pri- repairs,” he said, ority – or longer term – improvements Both the Ocean Parkway and Clubfor both structures, a timeline for action house Drive bridges over the canal are items and cost estimates. a single span concrete bridge with an “It’s our intent to keep forward with asphalt surface and timber abutments the repair work because it needs to be and wing-walls. The bridges are part of done,” he said, adding that he plans to the Worcester County roads inventory. bring the RFP for bridge repairs to the When the bridge safety rating of a strucboard for approval in October. While ture drops below 50 on the scale used $175,000 per bridges is included in the by the state, then the county can begin fiscal year 2016 budget, he said the cost investigating its replacement, with the estimate for the work is now $250,000 help of state and federal funds. per bridge, because work needs to be Because the bridges are located withdone to both the super structure above in Ocean Pines, the OPA is taking the water and the substructure below. lead on planning for the bridge repairs

and is working closely with county’s Public Works Department to address both the improvements and the cost of making them. Using an engineering firm recommended by the county, the OPA is working on parallel paths pursuing both repairs and replacement of the bridges based on a 2014 evaluation and report on their condition, Thompson said. Immediate action items are those repairs the OPA can make now while priority items will be addressed sometime in future. The repair process for both bridges is focused on the super structure, the part of the bridge that is above the water level, Thompson said. Based on engiTo Page 14

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October - Early November 2015

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Pool covers OKd for Mumford’s, Swim and Racquet Club pools actual purchase. “You approved a budget item, but it wasn’t spent,” he said.

Presentation made to Sharyn O’Hare

Sharyn O’Hare, a former member of the Board of Directors, was recognized for her service by Ocean Pines Association President Pat Renaud during a Sept. 24 meeting. Renaud presented O’Hare with a certificate of appreciation for her three years of service as a board member. O’Hare’s term expired in August and she opted not to seek re-election to the board. “Sharyn my friend, fellow board member, I’ll miss you,” Renaud told O’Hare. He said she served “faithfully” but didn’t sit idly by when she disagreed with other directors on issues before the board. “And very often she was right.” O’Hare thanked her former fellow board members for their support and said serving as a director was a “really good experience.” She wished the new board a “lot of luck.” Not in attendance at the meeting was

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aving resurfaced the Mumford’s Landing and Swim and Racquet Club swimming pools this year, the Ocean Pines Association Board of Directors on Sept. 24 voted to purchase covers for these amenities. The pool covers were approved in the 2015-16 OPA budget for a total expenditure of $20,000 but the winning bid was slightly more. The OPA solicited a request for proposals for the pool covers received four responses. After analyzing the bids, staff recommended purchase of pool covers from Pools and Spas for $21,400 for both covers. General Manager Bob Thompson said that company will provide a high performance cover at the lowest life cycle cost. While it is heavier than other covers offered, OPA pool technicians believe that the additional weight is not a significant issue. Directors Jack Collins queried Thompson about the purchase, saying he thought the board had already approved buying covers for the pools. Thompson responded that the board agreed to include funding for them in the budget but hadn’t yet approved the

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Storm aftermath The streets of downtown Ocean City were flooded for days in early October after a nor’easter. Nancy and Dan Collins photo

From Page 3 another retired board member, Marty Clarke, who told the Progress that he declined the invitation from Renaud to attend so he could receive a similar certificate of appreciation and gift. “I told him if I showed up that I would embarrass him,” Clarke said.

OPA wins awards from local magazines

Two local magazines have recognized Ocean Pines as being at the top of its class. Bob Thompson, Ocean Pines Association general manager, announced receipt of the honors during a Sept. 24 Board of Directors meeting. Metropolitan Magazine recognized

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the Clubs of Ocean Pines as the best wedding and banquet facility in the Berlin to Ocean City region. Coastal Style Magazine’s readers selected Ocean Pines as the best residential community in Worcester County. “That’s a neat thing for us,” Thompson said. The citations are based on reader polls.

Appointments made to advisory committees

More than a dozen members were appointed or reappointed to Ocean Pines Association advisory committees by President Pat Renaud during a Sept. 24 Board of Directors meeting. First term appointments were Herbert Roe, Jr., Clubs Committee; Anne Shockley, Architectural Review Committee; Karen Butterweck, Greer Groves and Debbie Bennington, Communica-

tions Committee; and James Beisler and John Viola, Budget and Finance. Second term committee appointments were Marie Gilmore, Recreation and Parks; and Dennis Hudson, Budget and Finance. Third term appointees were Suzanne Auwarter, Aquatics; and Dale Buley, Budget and Finance. Chairmen were also appointed for two committees. Austin Scorpio was named chairman of Environment and Natural Assets and Jennifer Cropper-Rines was named chairman of the Communications Committee.

Junior golf programs end successful season

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The Ocean Pines Golf and Country Club is wrapping up the golf season having had more junior golfers participate in its programs than in any other season in recent history. Approximately 120 young golfers participated in the course’s clinics and summer camps. The last program of the year, a fall clinic, ended Oct. 6. These numbers represent a marked change in participation: Three years ago, the junior golf program at the club was practically nonexistent. PGA Director of Golf John Malinowski, who assumed the position at Ocean Pines in November 2012, changed the way junior programs were conducted. “Before I arrived there was one camp or clinic in the summer. We added weekly clinics in the spring and the fall as well as extra week-long camps in the summer,” Malinowski said. The camps have proven especially popular. This past summer, Ocean Pines offered four separate camps, two of which had waiting lists. Malinowski said, “The professional staff tried to show kids how much fun it can be to play a difficult game. We offered games and contests and tried to get them on the course to play as much as possible during the week. “The dedication and attitudes of the staff have really helped to grow the program,” he said. Word of mouth has also contributed to the rise in participation. Many chil-

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In recognition of Literacy Month in September, the Republican Women of Worcester County presented a check for $300 to Showell Elementary School for the “Paper Back Book Library Project” established by the club. Prinicipal Diane Shorts (left) accepts the donation from RWWC Literacy Chair Sharon Byerly.

OCEAN PINES BRIEFS From Page 4 dren sign up for more than one camp or clinic, and new participants have often been referred by satisfied family members and friends. Participants are also eager to return to the course after the programs are over. “It’s been fun to see a shift in the usage of the practice facilities at the golf course after the camps. The kids are coming back to practice and sometimes play with their parents. I feel like they get a sense that they belong here and that’s good for the growth of the game and securing the future of golf,” Malinowski said. The Ocean Pines golf course, which is open to the public, also offers special junior golf memberships, and Malinowski gives private junior lessons at discounted rates.

Ocean Pines to host Halloween Events

The Ocean Pines Recreation and Parks Department will host several Halloween activities in October, including annual favorites and a new spooky offering. Area residents can put their artistic skills to use on Friday, Oct. 16, for family fun night pumpkin painting. Attendees may bring their own pumpkins to this annual event, held from 6-8 p.m. at the Ocean Pines Community Center, or purchase one for $6 (limited quantity available). All decorations and paint will be provided. The cost is $5 for Ocean Pines residents and $6 for non-residents. A haunted 5K fun run, a new Halloween event, will be held on Saturday, Oct. 24, at 5 p.m. at Veterans Memorial Park in Ocean Pines. Participants are encouraged to wear costumes, and awards for scariest, funniest and best couple/group will be given after the race. The entry fee is $30 per person. Ocean Pines will cap off the month with its annual Halloween Fall Festival on Saturday, Oct. 31, from 1-4 p.m. at White Horse Park in Ocean Pines. Ad-

mission is free and open to the public. Costume contests, carnival games, face painting, pony rides, candy, a haunted hay ride, moon bounce, crafts, refreshments for sale and more will be part of the event. Admission and games are free; there will be a fee for some attractions. New this year is a pumpkin carving contest and an “anything pumpkin” cook-off/bake-off. Contest applications are available at the Recreation and Parks Department. Volunteers and candy donations are needed for this special event. Those interested should contact the Ocean Pines Recreation and Parks Department at 410-641-7052.

Veterans Memorial golf Tournament

The Worcester County Veterans Memorial Foundation will host its 9th annual golf tournament on Wednesday, Oct. 28, at the Ocean Pines Golf and Country Club. Proceeds will benefit the foundation’s educational outreach program. The tournament format will be captain’s choice scramble and will begin with a shotgun start at 12 noon. Entrance fees are $85 per player and include greens fees with cart, range balls, grab and go lunch and dinner buffet. An awards ceremony and silent auction will be included with dinner. Sponsorships are also available and are tax deductible. The educational outreach program was established in 2006 to sponsor an annual field day trip to the Veterans Memorial for every fifth grade class in Worcester County. Volunteers teach students how the memorial honors veterans and the history and proper handling of the American flag. For registration and sponsorship forms, go to the Memorial Foundation website at www.opvets.org. For more information, contact the tournament coordinator Marie Gilmore at OPMarie@aol. com or 410-208-6612.

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6 Ocean Pines PROGRESS

BOARD OF DIRECTORS

October - Early November 2015

Jacobs questions proposed capital ‘roll-over’ policy By TOM STAUSS Publisher ewly elected Director Cheryl Jacobs was unable to attend a Sept. 16 meeting between the Board of Directors and the Budget and Finance Committee over proposed guidance to the general manager on the development of the 2015-16 Ocean Pines Association budget. During that meeting, the committee unveiled a proposal for rolling, multi-year capital budgets, which recommended that items contained in one fiscal year’s capital budget but not started or completed could carry-over to the next fiscal year without new board authorization. At the board’s regular meeting Sept. 24, Jacobs weighed in as a skeptic of the proposal, and explanations offered by Director Tom Terry, General Manager Bob Thompson and others did not seem to sway her. In the end, after extensive time in the weeds by the directors debating the issue, Jacobs voted against a motion that authorized Thompson to offer a detailed proposal on how the rolling capital budget would work in practice. After Jacobs initially questioned the wisdom of a rolling capital budget, Terry jumped in to say that the proposal at

Board votes 6-1 to authorize Thompson to draw up a ‘structure’ for a multi-year capital expenditure format to include previously budgeted but unexpended items this point was in an exploratory phase and that he, as the new OPA treasurer and liaison to the Budget and Finance Committee, was not suggesting that the concept was ready for an up or down vote. That, apparently, won’t happen until the board’s regular October meeting. Jacobs responded that if a particular capital item is not started in the fiscal year in which it is authorized, then the proper procedure should be rescission of its approval followed by submission of a new request for the following fiscal year. Terry responded that the committee’s proposal does not call for an “automatic” roll-over of unspent capital expenditures and is designed to deal with projects that may have been started in one fiscal year but not completed. Director Dave Stevens asked whether the roll-over policy would pertain to uncompleted projects only or also to projects that were never even started.

Terry responded that it could be either. He went on to say that the policy was designed to deal with a capital project that “we thought would be finished and it wasn’t.” He said “right now” there is no mechanism in place to deal with projects that extend over multiple fiscal years. Seeming to come over to Jacobs’ point of view, Stevens said that for projects funded out of the OPA’s major replacement and maintenance reserve, the money is just “sitting there” in the reserve until it is needed. “Whether a project is completed for not from a money standpoint is irrelevant,” Stevens said. If a project is not completed and paid for in any given fiscal year, he said the reserve fund will show a larger balance than it would have otherwise. Once the project is completed and paid for, then

the reserve fund is reduced accordingly. “Do we have to approve it next year or automatically grand-father it?” Stevens added. “I don’t think we need a new resolution” or policy to deal with that situation, he said. Terry said the policy was designed to deal with a concern that in a year in which a project is carried over, “concerns about spending unauthorized money” have been expressed. The proposed roll-over policy is “simply a procedure to better track” capital expenditures, but Stevens was not convinced. “I agree with Cheryl,” he said. “I don’t see that it’s necessary.” When Terry said the OPA currently doesn’t “have a process” to deal with uncompleted projects that carry over into a new fiscal year, Stevens disagreed. “We do have a process,” he said. “It’s the (annual) budget process,” and like Cheryl he objected to a mechanism in which the previous authorization would be “automatically” rolled over into the new fiscal year without board approval. Thompson then entered the fray, identifying the February through May period when a project may be under way To Page 8

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Collins, Thompson spar over whether budgets are crafted with lot assessment as baseline By TOM STAUSS Publisher cean Pines Association General Manager Bob Thompson and Director Jack Collins recently sparred over whether annual budgets are crafted with the current lot assessment as the baseline or starting point Collins, last year’s OPA treasurer, opined during the board’s Sept. 24 monthly meeting that annual OPA budgets are crafted with the current base lot assessment as “the starting point.” He offered his observation as the directors and Thompson were deep in the weeds on a proposal to convert the OPA’s capital budget into a rolling, multi-year document that would – or maybe it wouldn’t – allow for previously approved capital expenditures to “roll-over” into the following fiscal year without new authorization by the board. In a tangent that did not appear to relate specifically to the rolling capital budget proposal, Collins out of the blue suggested that when staff prepares the annual budget, they do so with an eye

toward the impact on the annual assessment of any proposed increases or decreases in spending. At that is what he seemed to mean. Thompson immediately pushed back against that idea, in much the way he did when he didn’t like something former Director Marty Clarke would say. “Absolutely not. That’s not the way the budget is built,” the general manager said. “Nothing could be further from the truth.” The budget, he said, is built from the ground up, with no consideration at all in the early stages as to what the lot assessment might be once all the budgetary additions and subtractions are made. Late in the process, as the budget review process nears its conclusion, various budgetary items are linked to increases or decreases in the assessment. But Thompson said as various components of the budget are initially assembled, he and Controller Art Carmine have no idea what the overall impact on

Capital carry-over

“still sounds like an automatic roll-over to me” and that she would need to understand its “impact on our dues payers” before she would be willing to consider voting for it. Thompson, echoing Steven’s earlier comments, said an expenditure for a capital project comes out of a reserve fund, with no impact on the lot assessment for that particular year. What he didn’t say, however, is that because of the OPA’s long-standing practice of funding depreciation, as soon as a new asset is placed in service it shows up on the OPA’s capital asset depreciation schedule and impacts the OPA assessment almost immediately. For instance, recent golf course improvements have boosted golf-related depreciation to about $450,000 a year, according to 2014-15 audited financial statement, and that translates to about $80 on the lot assessment. Assistant treasurer Pete Gomsak, given the opportunity by OPA President Pat Renaud to comment on the issue, repeated Stevens and Thompson’s observation that most capital expenditures come out of reserve funds. Gomsak called the issue more about public relations than finances. He said some people “can accuse the board” of spending unbudgeted funds if the new procedure is not enacted. The roll-over provision was included in a motion offered by Terry to approve in concept the roll-over proposal and a process that sets in motion the creation of a procedure to enable capital dollars to be carried over from one fiscal year to the next.0.

From Page 7 but not completed at the beginning of the new fiscal year May 1. “I have to race to get it completed,” he said. “If it’s not done, then I have to come back for (board) approval because it’s not in the budget (in the next fiscal year). You (the board) have to approve it.” He said if “there’s a way not to lose the funding” if a project is not completed it would be an improvement over current practice. Director Jack Collins told Thompson that he was not sure why Thompson felt he had “to race” to finish a project. “Can’t you just put it in (next year’s) budget?’ he asked. Thompson said that would require coming back to the board. Jacobs queried Terry about whether his motion would call for an “automatic roll-over” of capital projects, to which Terry responded that it would not. “It’s not automatic,” he said. “It still requires a vote” of the board to authorize a project. However, as the proposal was explained by the Budget and Finance Committee members during the meeting of Sept. 16, it was not at all clear that a second vote of the board would be required if a project had been previously approved by the board in the prior fiscal year and not completed. Jacobs told Terry if he would be willing to change his motion to require a new board vote in the following fiscal year, “I would agree with that.” But then she went on to say that the proposal

8 Ocean Pines PROGRESS

BOARD OF DIRECTORS

October - Early November 2015Ocean Pines PROGRESS

Property owner is fed up with neighbor’s street parking

Resident accuses OPA of selective enforcement Inspections office went after Janasek and his trailer. He said he received a letter from CPI with a photo of the offending trailer on his property telling him to have it removed because it violates the declaration of restrictions. “The reason my trailer was parked there was so the gentleman at 7 Park Place would stop parking on my grass,” Janasek told the board. He said the maneuver worked, sort of – the neighbor parked his car in front of someone else’s driveway instead of Janasek’s house. He argued that the OPA’s governing documents specifically state that no ve-

Lot assessment From Page 8 the assessment might be. Moreover, he said OPA budgets have never been built with the current lot assessment as the starting point. “That would be inappropriate,” he said. Collins in a subsequent conversation with the Progress stuck by his view of how the budget is built.

hicle “shall be” parked on any street in the subdivision. He said he wanted to know why CPI wasn’t enforcing that restriction. “What do I have to do to get CPI to write the same letter” to his neighbor that the department wrote to him, he

asked the board. Janasek said the OPA should not pick and choose which provisions in the declaration of restrictions it is going to enforce and which it won’t. He pointed out that the restriction against parking on the streets is in the same section of the covenants that prohibits parking trail-

By ROTA L. KNOTT Contributing Writer rritated that the Ocean Pines Association cited him for having a trailer on his lot but won’t do anything about a neighbor who insists on parking his car on the grassy area in front of his yard, one property owner complained to the Board of Directors during the Sept. 24 board meeting. During the public comments segment of the meeting, OPA member Tom Janasek said he has had ongoing problems with a neighboring property owner parking on the side of the road on Park Place in front of a home he owns. He said he has asked the offending neighbor repeatedly to stop parking in that spot because it damages the grass and the grass cutters can’t work there with a car in the way. Because the neighbor hasn’t been responsive, he turned to the OPA for help but didn’t get any resolution there either. So, he took matters into his own hands and parked a trailer in that spot blocking the neighbor from parking a car there. But instead of the OPA citing the other property owner form parking on the street in violation of the restrictive covenants, the Compliance, Permits and

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10 Ocean Pines PROGRESS

BOARD OF DIRECTORS

October - Early November 2015

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he doesn’t believe that the state disthose restrictions. In response to Janasek’s inquiry, OPA tinguishes between parking a car or a From Page 9 ers in the community. “It’s in the same General Manager Bob Thompson said trailer on the side of the road. Thompson admitted that he didn’t paragraph as the commercial restric- the prohibition against on-street parking is unenforceable because of state have a response to that point but said tion,” he said. That section states that “no vehicle law. When the roads in Ocean Pines he would look into the trailer parking shall be parked on any street in the were incorporated into Worcester Coun- issue. “This has been going on for seven subdivision” and goes on to say that “no ty’s roads inventory, they became public vehicles, with a load capacity of one ton access roads, meaning anyone can use years now,” Janasek said regarding the parking dispute with his neighbors. He or greater, including but not limited to them and they are subject to state law. Thompson said state law trumps the said he has spoken with them but nothcommercial trucks, trailer trucks, and ing is ever done to resolve the issue. buses shall be parked or stored over- OPA’s restrictive covenants. LOCATED IN MANKLIN STATION-SOUTH OCEAN PINESisn’t NEXT TO Even if the restriction enforce“The state law is what we have to en- GATE night or longer on any lot in the section able, he asked the OPA to send a letter roadway itself,”(4438) not on the or subdivision in such a manner as to be force on the 410-208-GIFT • DAZZLEGIFTSHOP.COM to his neighbors regarding parking on visible to the occupants of other lots in side of the street, he said. the side of the road. If that’s the case, Janasek argued the section or subdivision or the users of “So they know you’re watching,” he that he should be able to park his trailany street, waterway or golf course …” The OPA can approve a waiver to er on the side of the road, too. He said said.

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Jacobs accepts part-time job to accommodate OPA board role

n keeping with a campaign promise made to Ocean Pines Association members in this summer’s election campaign, Director Cheryl Jacobs has disclosed that she has dropped back to part-time work as a prosecutor in Baltimore City, leaving time for her duties as an OPA director. During the campaign, she said she might retire completely from her job as a prosecutor or work part-time. The decision to work part-time is compatible with the time commitment as a director, in part because the board has shifted meeting dates to Thursdays rather than Wednesdays, when most board meetings were scheduled in the prior board term. She will be working in the city on Tuesdays and Wednesdays, she announced at the Sept. 24 regular board meeting. She chose RITA’S ICESthe board meeting as the forum to announce her part-time status because of an inaccurate report in local media that she had reneged on her campaign promise to devote all the time required to serve as a director.

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October - Early November 2015Ocean Pines PROGRESS 11

BOARD OF DIRECTORS

Thompson updates board on Sandpiper talks, but no agreement in sight No one’s talking on whether discussions to bring natural gas to Ocean Pines will be bearing fruit anytime soon.

bility that the board will be somewhat more flexible on the matter of an annual franchise fee, which has been suggested in the neighborhood of $150,000 to

By TOM STAUSS Publisher cean Pines Association General Manager Bob Thompson in his Sept. 24 written report to the board used 35 words to describe the status of talks with Sandpiper Energy on efforts to complete a franchise agreement that would facilitate delivery of natural gas to Ocean Pines via pipeline. Those 35 said exactly nothing, and were hardly designed to reassure critics of the protracted process that a draft agreement will be brought to the Board of Directors for review anytime soon. Two recent closed board meetings on the Sandpiper discussions might suggest some progress is possible, but it’s anyone’s guess outside the confines of closed meetings as to whether anything is really happening of consequence. “Ongoing discussions have continued in an effort to reach a fair, balanced and comprehensive agreement addressing the short-term as well as long-term issues of bringing an alternative energy source, natural gas, to our community,” Thompson wrote in his report. Not that it really matters, but Thompson’s September language was nearly identical to what he said in his July 27 report to the board, when he said it remains the goal of the two sides to provide “a mutually agreeable solution that a brings a natural gas solution to our community.” As for the status of discussions and the odds of concluding a new agreement, retiring OPA Director Marty Clarke back in August described the state of play as “about where they were last fall,” when he unleashed a firestorm of controversy, and a decision by Thompson to walk away from the role of lead negotiator, by essentially calling some email by Sandpiper as “promising.” Thompson was unhappy that Clarke’s comments about a potential “breakthrough” was reported in the Progress. Back in early June, Thompson was brought back into the fold as lead negotiator. Most of the directors agreed that since no activity in talks had occurred since Thompson had taken himself out of the role, it made sense to see if bringing him into the fold could jumpstart discussions. So far, any evidence that Thompson’s involvement is making any real difference is hard to come by. With Clarke off the board, there would appear to be at least some possi-

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12 Ocean Pines PROGRESS

BOARD OF DIRECTORS

October - Early November 2015

Board approves modest housekeeping change to F-01 investment resolution Effort to ease OPA investment policy finally ends with no change to underlying preference for capital preservation previous policy of establishing capital preservation as the OPA’s primary investment goal. It adds some new language regarding the kinds of securities in which the OPA will invest without changing the fundamental practice of investing only in securities guaranteed by the U.S. government or other federal agencies. The previous F-01 said the OPA will consider Certificates of Deposit Account Registry Service (CDARs) as investment vehicles, an investment diversification option that becomes important when accounts on deposit exceed the maximum amount, $250,000, that are insured by the federal government. OPA reserves are substantial greater than the maximum insured amount per account, so CDAR investments become imperative as a way of ensuring that OPA assets continue to be insured.

Sandpiper

group from attending meetings with Sandpiper. PRSRTCollins STD told the At the same time, Progress recently,USPOSTAGE Thompson is STD obligatPRSRT ed to make timely reports on the subUSPOSTAGE PAID stance of any face-to-face meetings with MAILMOVERS Sandpiper to the working PAID group and MAILMOVERS board. That much at least appears to have occurred on a regular basis. The reappointment of Thompson as the OPA’s negotiator came about after Director Bill Cordwell, unhappy with the apparent lack of movement in discussions between the OPA and Sandpiper Energy for a new natural gas franchise agreement, suggested that Thompson be given the task of renewing dialog with Sandpiper to see if any agreement is achievable. The directors agreed to allow Thompson to contact Sandpiper representatives to determine the status of issues that previously had divided the two sides, such as a franchise fee and reimbursement for OPA legal fees. Thompson briefly had the role as lead negotiator this past December until a kerfuffle with Director Marty Clarke over quotes about the status of negotiations in the local media led the general manager unilaterally to take himself out of the role. There is no indication that the OPA is prepared to make any concessions about the board’s desire reimbursement for legal expenses incurred in negotiations thus far, roughly $70,000. Last year, the OPA hired a Salisbury attorney to assist in hammering out a natural gas agreement.

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From Page 11 match the franchise fee paid to the OPA by Mediacom, the local cable and Inter11029 Racetrack Rd. net provider. 1 1029 Racetrack Rd. Collins, told the Berlin, 21811 Jack OneMD director, Berlin, MD 21811asked in June whether Progress when he still supported a franchise fee that he was “ambivalent” on the issue. Another director, Tom Terry, told the Progress that he still favored the fee, noting that even if it were included as part of an agreement between the OPA and Sandpiper, the Maryland Public Service Commission would have to agree to it. In his June general manager’s report to the board, Thompson said he had “engaged” Sandpiper executives in two conference calls to date, with the first one a relatively short one limited to opening up “a new dialog” and establishing “future correspondence.” The second, much longer call included a “detailed discussion where we recapped our positions and discussed options for moving forward,” Thompson wrote. Reminiscent of communiques issued by national governments in treaty negotiations, he described the conversations thus far as “fair and open,” which is diplo-speak for saying there’s no agreement to date. In a June 3 special meeting that was closed to the OPA membership, the directors agreed to designate Thompson as the sole OPA representative in talks with Sandpiper, a decision which excludes members of a board working

By TOM STAUSS Publisher he Board of Directors on second reading Sept. 24 approved a revised F-01 resolution on investment guidelines that preserves the Ocean Pines Association’s conservative investment policy and eliminates a reference in the previous version of F-01 that said OPA reserve funds would be managed by a third party, professional investment management firm. Since that 2009 version of F-01 was adopted, no investment firm has been involved in managing OPA funds, that task routinely falling to the OPA general manager and controller. The board amended F-01 in part to harmonize language in the resolution with actual practice, prompting Director Dave Stevens to call the board’s action approving F-01 a housekeeping measure. The approved F-01 resolution retains

BOARD OF DIRECTORS

October - Early November 2015Ocean Pines PROGRESS

Investment policy From Page 12 The new F-01 adds new language that says that “deposits in excess of federal guaranteed funds shall be collateralized by banks’ U.S. government portfolio including U.S. agencies.” This language appears designed to further clarify and support the goal of capital preservation and protection of OPA financial assets. The approval of the revised F-01 would appear to put an end to a multiyear process within the Budget and Finance Advisory Committee that earlier in 2015 was aiming for a modest easing in the OPA’s investment policy. The committee had proposed a change in F-01 that would have added preservation of purchasing power as a secondary goal in the OPA’s investment policy, a change that some critics on the board said could have led to decisions to invest OPA resources in investments other than government-secured CDARs and the like. Although a revised investment policy with that modest change passed the board on first reading this past April by a 4-3 margin, it didn’t have the votes to pass on second reading because directors were uncomfortable with even a modest change in policy.

OPA Director Jack Collins, the then liaison to the committee, instead offered a motion to withdraw the resolution from consideration and send it back to committee for re- Jack Collins finement. The motion passed unanimously. Collins had introduced the proposal for modest easing in April as a courtesy to the committee, but he was never on board with it. F-01 had been on the committee’s agenda for years, with very little to show for the time and energy expended. A similar easing of investment policy in F-01 was adopted on first reading by the board of directors in November of 2013, only to be pulled for consideration a month later when a board majority objected. The matter hadn’t been addressed formally at the board level since then until it was brought up again this year. The proposed F-01 introduced by Collins on behalf of the committee back in April didn’t explicitly address the types of securities in which the OPA would

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fund investments, subject to board approval, that would be recommended by an investment advisory professional. These investments would have included investments “other than those guaranteed by the U.S. government.” But it was not to be. In the end, opposition to any easing of investment policy carried the day. And the reference to management of OPA investments by a third-party, professional investment management has been deleted from the new F-01, as if to underscore the OPA’s intent to manage its reserves in-house.

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From Page 11 neering estimates, the cost for the shortterm bridge repairs could top more than $500,000. Thompson said that is a “pretty significant cost when you’re looking at repairs.” With a bridge safety rating of less than 50 for each of the Ocean Pines bridges, Thompson said the goal is to bring up that rating by making the necessary immediate repairs. The repair work will increase the BSR but not as much as a building new bridges, he said. “All we’re going to do is buy time…” Renaud asked how much longer life making the immediate repairs will give the bridges. Thompson said no one knows. He has asked both county and state representatives, but they will not be able to provide a definitive answer until after the work is completed, he said. Director Dave Stevens asked if the bridges will be closed to traffic during the repairs and, if so, for how long. Thompson said he anticipates complete bridge closure but will not know for sure until after proposals are received in response to the OPA’s RFP for the work. He said the contractors bidding on the jobs will have to tell the OPA their plans to address the issue and any associated

“We have access challenges when we close either of the bridges,” Thompson said, adding that emergency access is highest priority. He said the Ocean Parkway bridge is of particular concern because if that bridge were to be closed completely, there would be no emergency access to homes between that bridge and Route 90. Large emergency vehicles would not be able to reach those homes from the south side of Ocean Pines because they cannot fit under the Route 90 bridge over Ocean Parkway. While the immediate repairs will extend the life of the bridges, it may also reduce their eligibility for state or federal funding for replacement if the BRS rises above 50. He said once the repairs are made the BRS will be above 50. He said that “starts the clock at that rating. It’s a cycle and that’s part of the challenge.” In response to a question from Director Jack Collins about when to start planning for bridge replacement, Thompson said “I believe the repair work will buy us further than 2017.” Still, Thompson said the OPA is also working with engineers and the county to prepare for eventual replacement of the structures. He said they are developing options

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COVER STORY Anniversary speaker

At the September 30th meeting of the Kiwanis Club of Greater Ocean Pines - Ocean City, the guest speaker was Sharyn O’Hare, who has been involved with the Worcester County Veterans Memorial in Ocean Pines since 2003. Pictured left to right are O’Hare; Elmer Muth, Kiwanian and WWII Veteran who was a part of the Normandy landing on D-Day; Kiwanis Club President Carolyn Dryzga and Kiwanian and WW II Veteran Nate Pearson. and then the board will have to weigh placement, it has the lowest anticipated those options and determine how to maintenance costs and the longest life. move forward with replacing the bridg- Using a pre-cast concrete arch would ales. low increased height for the bridge unThe bridges could be reconstructed derpass, but that too is expensive. using timber, steel and concrete or using “That’s something we’re really taking a pre-cast concrete arch and they would a hard look at to figure out what’s going all meet safety requirements. to make the most sense,” Thompson said Thompson said each type of construc- of the construction material options. tion has advantages and disadvantages. His initial replacement cost estimates He said timber construction is less were for nearly $700,000 per bridge. expensive initially, but has higher mainSince it will be Worcester County tenance costs and a shorter life span. that has to acquire the state or federSteel construction is more expensive but al funding for the bridges ultimate rehas a lower maintenance cost and a lon- placement, Director Tom Herrick asked https://www.facebook.com/sunsetﬂ oors21842 ger life than timber. where the Ocean Pines bridges fall on While concrete construction is the the county’s priority list for replacemost expensive option for bridge re-

14 Ocean Pines PROGRESS October - Early November 2015 costs of redirecting traffic. Bridge replacement

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October - Early November 2015Ocean Pines PROGRESS 15

Bridge replacement From Page 14 ment. “That’s gonna be up to the county,” Thompson responded, adding that all he can do is plan for their replacement. He said that the county has at least one bridge with a lower BSR rating than the two in Ocean Pines. Director Cheryl Jacobs asked about mixing and matching the construction materials, perhaps with a concrete substructure but timber superstructure to be more aesthetically complimentary to the community. Thompson said that is a possibility based on the cost. But he added that wooden structures require a lot of maintenance and they have to be wider and lower while concrete brides can be higher.

No guarantee of state, federal funds for Ocean Pines bridge replacement Worcester County controls allocation of grant money for local bridge construction projects state funds for bridge replacement,” he said. The state grants the funds to the county, which determines how and where they will apply those funds. Thompson said that means there is no guarantee of funding for the Ocean Pines bridges. “Even though we may have done the work and put it together, the county could apply those funds to another bridge that has higher need.” The other option is to seek federal funding, which would then also be passed through to the county. But the county doesn’t typically follow that funding route for its bridge repairs. “Our understanding is that it has been at least 20 years since the county has pursued federal funding,” he said. However, he didn’t know why the county has been reluctant to take advantage of the federal funding option. “So they are the two primary funding type reimbursement solutions,” Thompson said. The third option is “that we just do it” and the OPA cover the cost of replacing the bridges. Regarding self-funding the bridge replacement, Thompson said it is a “terribly expensive option” and that he wouldn’t recommend it. However, in order to have the immediate structural and safety improvement made to the bridges the OPA is going to have to foot the bill. Meanwhile, the OPA is preparing to pay an estimated $500,000 cost of hiring contractors to make immediate and priority repairs to both the Ocean Parkway and Clubhouse Drive bridges to improve their structural integrity and safety rating. Thompson said that is a “pretty significant cost when you’re looking at

repairs.” The $250,000 per bridge cost includes mobilization of contractors, demolition, concrete repairs, bridge railings and sidewalks, approach railing, soil grading and stabilization, traffic control for a total of $221,000, plus a project contingency of $4,000. That cost estimate does not include creating alternate traffic patterns or roads while the repairs are being made. Director Jack Collins asked if making those repairs will increase the bridge safety rating. Thompson said yes and added that if making the repairs increases the BSR above 50 on the state rating scale, then they will no longer be eligible for state or federal funding for replacement. “So we’re in a catch 22 here,” Collins said. Thompson agreed and added “We have been for a number of years.” Collins was worried that means the

“money will never materialize” to rebuild the Ocean Pines bridges. Director Dave Stevens said he understands that applying for bridge replacement funding from the state is a “fairly torturous process,” but the county “is familiar with how to go down this route.” He said he wasn’t aware, however, that the OPA could be planning for replacement of the bridges and the county could decide to use any state funding acquired for other bridge projects. “The county could pull the rug out from under us” and the funding for whatever projects it wants, he said. “That is what county officials have shared with us,” Thompson said. He added that there is a limited amount of funding released to the county by the state each year for bridge repair. Stevens responded, “I’d certainly like to hear somebody from the county say that’s true.” Director Carol Jacobs asked if it is possible to purse the federal funding route concurrently. “We are trying to look at federal as well,” Thompson said. “There’s additional steps that are required” to seek the federal funding. He said the OPA would still have to partner with the county to apply for federal funding. “They haven’t taken that route and we’re not sure why yet.” Collins wanted to know exactly when

By ROTA L. KNOTT Contributing Writer lthough the Ocean Pines Association is moving forward with plans for the replacement of two aging bridges in the community, it doesn’t yet know who is going to cover the more than $1.2 million estimated cost. The OPA is intending to make immediate repairs to the bridges at Ocean Parkway and Clubhouse Drive later this year at a cost that could exceed $500,000, but those will only be temporary fixes, according to General Manager Bob Thompson. Eventually both bridges, which are part of the Worcester County roads inventory, will need to be replaced. While the OPA is planning for their replacement, it will be the county that decides when that work will be done and how to pay for it. Both bridges have fallen below the minimum level of 50 on the state’s bridge safety rating system, allowing for their replacement if the OPA and county can find a way to cover the cost. Thompson said there are two primary funding mechanisms for bridge replacement – state grants and federal grants. “The funding process that the county currently uses is that they apply for

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16 Ocean Pines PROGRESS

COVER STORY

October - Early November 2015

Clarke says general manager’s bridge repair estimates are too high

e’s not on the Board of Directors any longer, but that hasn’t stopped Marty Clarke from weighing in on matters under board consideration. Of particular interest: reports that repairs of two bridges that have fallen below the minimum rating of 50 could cost an estimated $250,000 each to repair.

Clarke isn’t buying the latest estimates, completed by an engineering firm recommended by the county. He says a bridge survey of three or four years ago revealed repairs costing much less, perhaps in the neighborhood of $20,000 in the case of the Ocean Parkway bridge. The former director said that OPA management dragged its feet on doing

the needed repairs, and isn’t really interested in doing them now. He said OPA General Manager Bob Thompson doesn’t want to make the repairs but instead wants to replace the bridges and is trying to guide the board in that direction. Inflated estimates for repairing the bridges, along with the disclosure that the repairs will restore bridge ratings back to over 50, thus

making the bridges ineligible for state and federal replacement grants, are intended to push the board into a replacing the bridges as soon as possible, Clarke said. “Very clever,” he said of Thompson, adding that he wouldn’t be surprised if the general manager succeeds in persuading the board into not spending money to repair the bridges.

Bridge funding

preclude the county and OPA from being able to secure state or federal funding to cover the cost of construction. Once the engineers and staff have more information about the pros and cons of using each type of material the topic will be brought to the board for discussion and a decision. Then, Thompson said, the package can be taken to the county for consideration and financial support. “That’s when they’ll be able to give us a more definitive answer,” he said regarding funding options and timing for replacement bridge construction. Jacobs wanted to know how long that will take. “When do we reach that point?” she asked. Thompson couldn’t give her a definitive answer. He said the OPA is working through the bridge replacement planning process with the county.

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there will be an answer from the county with regard to how and when to secure funding for the bridge projects. Again, Thompson said he doesn’t know. But added that he is doing everything he can to ensure that the OPA is ready to proceed when the county has funding. “I can plan to replace bridges regardless of their funding.” The OPA is studying the types of materials that could be used to rebuild the structures, including timber, steel and concrete. Initial estimates place the cost of each option at more than $600,000 per bridge. Thompson said any of the three options are appropriate for the construction permitting process. But, he wants to be sure that none of the solutions will

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October - Early November 2015Ocean Pines PROGRESS

OPA up $15,486 in August, ahead by $50,000 for year so far All major amenities record operating surpluses for first four months of fiscal year

By TOM STAUSS Publisher ajor amenities in Ocean Pines continued to perform well so far in the 2015-16 fiscal year, with results in Controller Art Carmine’s August financial report indicating mixed results for major amenities. Marinas, the Yacht Club, Beach Club, Beach Club parking, and golf generated operating surpluses for the month, while aquatics and the three racquet sports posted losses. All but golf operations and the Yacht Club outperformed their budgets during the month, however. For the year through Aug. 1, all major amenities are in the black. All but golf and the Yacht Club have generated positive variances to budget. The Beach Club closed out its primary season at the end of August, generating a $159,975 surplus and $38,996 positive variance to budget. The club was open weekends in September, weather permitting, so a banner year for the Ocean City beachfront amenity was guaranteed. The same is true for Beach Club parking, with a $389,411 surplus through Aug. 31 and a $26,015 positive variance to budget.

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August finances From Page 17 Marina operations also did very well over the summer, with net revenues of $214,290 and a $42,177 positive variance to budget. While aquatics recorded a $9,293 loss in August, it was ahead of budget by $14,524 for the month. Year to date, aquatics has an $187,664 surplus and is $68,050 ahead of budget. The performance to date is almost double the $94,868 surplus recorded through August of last year. The Yacht Club generated a $59,876 surplus for the month, missing its budget by $13,553. Through Aug. 31, the surplus is $209,004, under budget by $47,811. The good news is that the Yacht Club year to date has improved substantially over last year, when the cumulative surplus was only $70,579 heading into the cooler months of the year. That’s a $138,425 year-over-year swing. Golf generated a $953 surplus for August, missing budget by $14,524. Through Aug. 31, as golf operations head into what can be a lucrative fall season of outside play, the operating surplus is $94,466, under budget by $43,473. Even so, golf operations through Aug. 31 under Landscapes Unlimited is ahead of where they were a year ago under Billy Casper Golf, when the surplus was $70,871.

The golf operational summary does not include depreciation expense or capital expenditures related to golf. Landscapes Unlimited is besting BCG by $23,595 for the first four months of the fiscal year. According to Controller Art Carmine’s monthly report for August, the OPA generated a positive operating fund balance of $15,486 in the month, on revenues that underperformed budget by $50,343 and expenses that were under budget by $74,686. New capital spending was over budget by $8,857. For the first four months of the fiscal year – May through August – the OPA had a positive operating fund variance of $49,682, on revenues that were under budget by $140,395 and expenses under budget by $198,352. New capital was over budget by $8,275 through August. Status of the balance sheet: According to the Aug. 31 balance sheet, the OPA has assets valued at $34.52million, against liabilities of $1.65 million and owner equity of $32.87 million. The August balance sheet indicates that the OPA had $2 million in operating cash on hand as of Aug. 31, compared to $2.28 million a year prior. Short term investments were valued at $7 million as of Aug. 31, compared to $5.6 million a year ago. Status of reserves: The reserve summary released as part of the August financials indicates that the OPA’s

Budget committee suggests ‘membership fee’ for outside users of Pines’ Rec programs Board hopes to adopt official budget guidance no later than Oct. 15

Parks Department. This year, that loss and operating subsidy is budgeted at slightly less than $523,000. Even with the proposed membership fee for non-residents of Ocean Pines, the committee is calling for a continuation of the differential for department activities between residents of Ocean Pines and non-residents.

By TOM STAUSS Publisher he Ocean Pines Association’s Budget and Finance Advisory Committee is suggesting that if non-members of the Ocean Pines Association want to participate in paid activities and classes sponsored by the OPA Recreation and Parks Department, they should be required to purchase a ‘membership’ fee of a so far unspecified amount for the privilege of doing so. According to a list of five specific budgetary guidance items presented to the Board of Directors recently, the purpose of the membership fee is to decrease the net subsidy – that is, the traditional operating loss -- of the Recreation and

Though it did not appear as one of the committee’s recommendations to the board, some members have argued that the differential often is too low and thereby burdens Ocean Pines property owners with subsidy costs that non-OPA members ought to share in to a larger extent. There appears to be some confusion whether the committee proposal intends to ask Ocean Pines renters to pay this membership fee if they want access to q

18 Ocean Pines PROGRESS

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OPA FINANCES Membership fee From Page 18 department programs. Renters are residents of Ocean Pines but not considered OPA members, that status reserved to those who own property in Ocean Pines. Currently, resident renters and OPA members pay the same rate for department programs or access to Ocean Pines’ amenities. This and four other recommendations from the committee are in a package under consideration by the Board of Directors to include in official budget guidance to the general manager in preparation of the 2016-17 OPA budget. Formal adoption of the budget guidance is expected to occur at the regular meeting of the board in October, if not sooner in a special meeting. At the board’s Sept. 24 meeting, the directors decided to give themselves until Oct. 7 to exchange ideas and viewpoints among themselves on budget guidance, with approval no later than Oct. 15. The other four recommendations are that: • the capital budget should be presented separate from the operating budget and structured in a rolling, multiyear format which includes budgeted but unspent capital items from prior years. • when purchasing the same service

October - Early November 2015Ocean Pines PROGRESS or items across departments, the OPA should consolidate the purchases under a single contract to obtain the best price and service • the OPA should finally hire human resources and information technology specialists “as soon as possible,” either in-house or by engaging a consulting firm • staffing by department should be reviewed for appropriateness of fulltime equivalents and salaries, with a study by an outside consulting firm budgeted to accomplish this task. In addition to the recommendations from the budget and finance committee, the board is reviewing a package of proposed budget guidance presented by OPA Treasurer and Director Tom Terry at the board’s Sept. 24 regular meeting. Posted on the OPA Web site under the board packet material for that meeting, the proposed budget guidance package tracks closely similar language from prior years. But the proposed language also includes a reference to the rolling capital budget proposal advanced by the budget and finance committee. “The 2016-17 budget should be created based on the assumption that the commitment of dollars, needed in future fiscal years, will be approved based on multi-year plan developed to support the 2016-17 budget. It also should be assumed that capital that capital dollars from the 2016-

17 budget, which are not utilized within the year, may and can be carried over for subsequent utilization and will not need to be included in future fiscal year budgets.” The capital budget roll-over idea has already encountered criticism, led by new Director Cheryl Jacobs and joined in by Director Dave Stevens. [See separate story elsewhere in this edition for details.] The proposed guidance calls for realistic amenity budgets; salary increases in the aggregate of 3 percent, based

on merit and not across the board; the naming for an information technology specialist, either in-house or as independent contractor, who would be tasked with developing a multi-year IT plan. Finally, the proposed guidance appears to support continued full funding of depreciation on OPA capital assets and retention of the five-year supplemental funding plan, now called the Legacy reserve, consistent with needs identified in a reserve study now under way and a revised capital improvement plan.

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OPA FINANCES

October - Early November 2015

OPA reserves drop slightly to $6.62 million in August By TOM STAUSS Publisher he reserve summary released as part of the August financial report shows that the Ocean Pines Association’s allocated reserve dropped again modestly in August to $6.61 million, down from $6.66 million in July, the June balance of $6.76 million and from the high of $6.9 million recorded at the end of May, the first month of the 2015-16 fiscal year. May is always the reserves high mark because that is the month when annual lot assessments are recorded. As expenditures from the allocated reserves occur throughout the year, the reserve balance declines. At the end of April, the conclusion of the previous fiscal year, the reserve balance stood at $3.5 million. The OPA this year is scheduled to collect roughly $2.5 million in assessment dollars that are allocated to the OPA’s major maintenance and replacement reserve. The total balance in the maintenance and replacement reserve as of Aug. 31 was $4.41 million, a modest decline from the July balance.

There are two distinct funding streams in this reserve. One is OPA assessment dollars collected to fund depreciation of OPA assets, with a $5.62 million surplus as of July 31. This funding stream is called “historical” in the OPA’s

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October - Early November 2015Ocean Pines PROGRESS

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22 Ocean Pines PROGRESS Reserve funds

OCEAN PINES

October - Early November 2015

From Page 20 of a reserve “compromise” during the review and approval process for the current fiscal year’s budget. The so-called legacy reserve had a $1.2 million deficit as of Aug. 31. Consistent with the board reserve compromise, the August reserve summary reflects transfers from the historical (funded depreciation) column to the future projects, roads and golf drainage reserves, reducing the future projects and golf drainage reserves to zero. The transfer out of the major maintenance and replacement reserve totaled $814,577, with $60,463 allocated to future projects, $110,508 to roads, and $643,607 to golf drainage. The roads reserve was not zeroed out by this action, because casino funds in the amount of $250,000 were allocated to this reserve. Next to the major maintenance and replacement reserve, the bulkheads and waterways reserve is the most flush with cash. Starting the fiscal year with an $893,432 balance, this reserve has grown to $1.68 million on the strength of $822,367 in new money from the socalled waterfront differential, the difference between the base annual assessment and the waterfront assessment paid by those who live on bulkheaded property in Ocean Pines.

Deliquent property owners owe OPA $1.3 million

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The Nor’easter in Ocean City in early October caused extensive ﬂooding that lasted for days. Ocean Pines residents Dan and Nancy Collins captured the action. During August, $37,685 was spent from this reserve. The operating recovery reserve, set up to offset losses in previous fiscal years or possible future tax liabilities, increased from a $135,933 balance on April 30 to $271,597 on July 30, reflecting $135,216 in new contributions from assessments.

The operating recovery reserve had been zeroed out as of April 30 last year, on the theory that previous year deficits had been sufficiently offset by subsequent surpluses, but the OPA Board of Directors last year authorized $135,100 from last year’s assessment to be allocated to this reserve, ostensibly to cover possible future tax levies.

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n response to an assertion by an Ocean Pines Association member during the public comments segment of the Sept. 24 Board meeting that property owners who owe the OPA for unpaid lot assessments and accumulated interest are deadbeats, OPA General Manager begged to differ. “They’re not all deadbeats,” he said, in reference to the 500 or so property owners who owe the OPA roughly $1.3 million in unpaid assessments and interest, with about $950,000 in assessments only. Thompson said that many of the delinquent owners are on payment plans, which he said is much better for all concerned than foreclosing on the homes whose owners are in arrears. Others faced economic hardships in the economic downturn and the OPA is trying to work with people who are willing to face their obligations, he said. Thompson attempted to paint a more positive picture of the OPA’s delinquency problem by saying in the last ten years, the OPA has billed $42 million in lot assessments, failing only to collect $950,000 of that. That means the delinquency rate is slightly above two percent.

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October - Early November 2015Ocean Pines PROGRESS

24 Ocean Pines PROGRESS

By TOM STAUSS Publisher peaking as an Ocean Pines Association member rather than as a member of the OPA’s Budget and Finance Advisory Committee – he’s both – Gene Ringsdorf recently advised members of the OPA Board of Directors that they should consider collecting less in assessments from owners of bulkheaded property in Ocean Pines. Ringsdorf offered his suggestion to reduce the $465 waterfront differential during a Sept. 16 meeting on 2015-16 budgetary guidance attended by members of the Board of Directors and the B&F committee. Where the committee as a whole dared not tread – reducing assessments for OPA property is not a priority for most of its members – Ringsdorf boldly advanced an idea that he said was in response to complaints from an increasing number of waterfront property owners that the OPA’s waterfront reserve has become bloated with excessive collections, far outpacing the actual dollars spent in recent years on bulkhead repair and replacement. In the budget approved for the current fiscal year, the base lot assessment is $921, the non-bulkhead waterfront assessment is $1011, and the bulkhead waterfront assessment is $1386, which is $465 more than the base assessment. Currently, the bulkheads/waterways reserve is flush with a balance $1,680,943, roughly twice what has been historically spent on bulkhead re-

OPA FINANCES

October - Early November 2015

Budget and Finance Committee member suggests waterfront assessment should be lowered Mystery persists over misrepresentation in annual audit report about ‘extensive’ survey of bulkheads and launch of new replacement program placement over the 35 years of the replacement program that more or less ended in 2013-14. As of April 30, the end of the previous fiscal year, the balance stood at $893,432. But new contributions from the waterfront differential added $822,367 to that reserve on May 1. Since then, the waterfront reserve has been reduced by roughly $38,000, presumably for bulkhead repairs and replacement. Ringsdorf said that in recent years, the end-of-year waterfront reserve balance has exceeded historic norms by substantial amounts, and he said the current balance of almost $1.7 million is much more than is needed for a new bulkhead replacement program that has not yet been proposed by the general manager or approved by the directors. “People feel you’re just accumulating more money (for no approved purpose),” Ringsdorf said. “It doesn’t make sense.” Ringsdorf said the April 30 annual

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audit report was incorrect in both assertions. There has been no extensive survey. Nor has a new bulkhead replacement program been brought before the board for review and approval. He told the board that he had put a call into Chris Hall of TGM, the OPA’s long-time auditing firm, to find how the incorrect information had appeared in the audit report. Thompson attempted to downplay the significance of the misrepresentation by telling the board that the incorrect information had been contained in a footnote in the very last schedule of the audit report.

report states that a new plan is in place to replace existing bulkheads, but he’s heard that contrary to that statement, a new plan is under development but not However, it is not at all clear that yet complete. Schedule 26 that contained the footWhile it was not clear whether Rings- note at issue was prepared or audited dorf reference to a “new plan” alluded to by TGM despite Thompson’s apparent a reserve study approved by the board effort to foist responsibility for it onto earlier this year, Director Ray Stevens the audit firm. The schedule is marked told Ringsdorf that this issue – the con- unaudited, which suggests that it was dition of bulkheads in Ocean Pines and prepared by someone in OPA managehow much money the OPA should hold ment and not examined by the auditors in the waterfront reserve – isn’t and for accuracy. won’t be addressed by the reserve study. Hall did not return a phone call from Thompson has not asked for board the Ocean Pines Progress asking for approval for funds to conduct a compre- clarification of whether his firm had auhensive study of the condition of Ocean dited Schedule 26 despite the reference Pines bulkheads, despite a statement in in the schedule title that said it was unthe annual audit report that said that audited. such an “extensive survey of the oldest No other schedules in the report are bulkheads” had been conducted prior to designated unaudited, which just deepthe launch of a new replacement pro- ens the mystery how such a misrepregram in April of 2014. sentation could have occurred, and who 1508 Complete Home Improvement Handout NEW with our type_Layout 1 2/3/15 1:22 PM Page 1 Thompson acknowledged that the was responsible.

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WORCESTER COUNTY

October - Early November 2015Ocean Pines PROGRESS

Planning commission OKs plans for expansion of rec complex Waivers authorized to parking surface, irrigation requirements By ROTA L. KNOTT Contributing Writer ith site plan approval from the Worcester County Planning Commission now in hand, the Ocean Pines Association anticipates releasing a request for proposals later this month for redevelopment of the Manklin Meadows Recreation Complex with additional racquet sports courts. Plans call for reconfiguration of the playground, community gardens and parking to make way for more platform tennis and pickleball courts. The planning commission reviewed and approved the project site plans showing the proposed addition of courts to existing complex on Oct. 1. As part of the approval commission members granted the OPA two waivers, one to irrigation requirements and another to parking requirements. The site plans call for retaining all 70 parking spaces, the same number as currently provided, with 40 of them to be paved as per county code. The commisq

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By ROTA L. KNOTT Contributing Writer ess than half of the children who entered kindergarten in Worcester County Public Schools in 2014 were ready to be there, according to the statewide Kindergarten Readiness Report. Worcester County’s KRA assessment of 48 percent was slightly above the statewide average of 47 percent. The kindergarten readiness assessment evaluates the skills of students when they start kindergarten and is not a reflection of how well they did once they enter kindergarten; rather it provides a picture of the early learning children are receiving in pre-kindergarten, private child care facilities, at home and through other agencies like Head Start. The assessment is administered by teachers to all incoming kindergarteners between the first day of school and the end of October and uses teacher observations and performance-based activities to gauge student readiness. During an Aug. 18 meeting, the Worcester County Board of Education reviewed the baseline data for the 2014 KRA. More than 480 children entered Worcester County’s kindergarten classrooms September, 2014. Of those children, just 48 percent met the KRA performance standards in areas of language and literacy, mathematics, physical well-being and motor development and social foundations. Another 40 percent were listed as

WORCESTER COUNTY

October - Early November 2015

Many Worcester children unprepared for kindergarten County’s 48 percent readiness rate is close to state average having the skills approaching readiness and 11 percent were assessed as having “emerging” readiness. Kindergarteners are assessed as demonstrating readiness if they consistently exhibit the foundational skills

Manklin Meadows From Page 25 sion granted the OPA a waiver for the remaining 30 spaces, near the relocated playground and community gardens, to be gravel. Those gravel spaces must be demarcated with wheel stops. Also, under county code the project is required to have an automatic irrigation system for the landscaping islands provided at end of each row of parking spaces and within parking areas. The system is supposed to have a rain sensor so that it will not turn on if it is raining, but the commission granted a waiver to that requirement as well. During the Sept. 24 meeting of the Board of Directors, OPA General Manager Bob Thompson updated the board

and behaviors that enable a child to fully participate in the kindergarten curriculum. They are listed as approaching readiness if they show some of the foundational skills and behaviors that are needed to participate in the kindergaron the Manklin Meadows Recreation Complex project, saying it is going through the permitting process at both the county and state levels. The OPA is still waiting for approval from the Atlantic Coastal Bays Critical Area Commission but he anticipated receipt of that approval soon so that a request for proposals (RFP) can be put out and site work begin in December. That will allow for project completion by the start of the summer season in May. Thompson said the initial phase of the work will involve changes to the community gardens and relocating the playground. “They’ll be the first steps and that’s based on the location of the work, where the work areas are going to be,” he said. He said staff has met with represen-

ten curriculum. Finally, those students who demonstrate only emerging readiness display minimal foundational skills and behaviors, which are needed to meet kindergarten expectations successfully. Students scored the highest in the domain of language and literacy, with 55 percent demonstrating readiness, and social foundations at 53 percent readiness. At 50 percent, half of students entering kindergarten last year demonstrated readiness in the areas of physical well-being and motor development.

26 Ocean Pines PROGRESS

tatives from the community gardens group and walked the site to review the changes in its design. The entrance to the community gardens will be relocated and a few of the garden plots will be shifted. “The time of year works for them over December-January because there’s nothing growing at that point,” Thompson said regarding the community gardens. “So it will be the least disruptive time for them.” The master plan design was approved by the board last year to guide additions and changes to the recreation facilities at the Manklin Meadows complex, including the addition of two paddle ball courts now and two more in the future, relocation of the playground, realignment of the parking lots and the addition of eight pickle ball courts.

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WORCESTER COUNTY

Kindergarten From Page 26

In the area of mathematics, student readiness declined sharply, falling to just 40 percent. Across the board, more female students are ready to enter kindergarten than their male counterparts. About 51 percent of female children demonstrate kindergarten readiness, five points higher than their male peers. The report shows a disparity in kindergarten readiness between low-income and mid- to high-income households, with more than twice as many students from households with higher incomes showing adequate skills. Only 31 percent of children from low-income households are ready for kindergarten, compared with 64 percent of children from mid- to

County consents to foot the bill for Showell School design phase Construction estimates near $39 million, state will pay less than one-quarter associated with replacing SES as of Sept. 30, 2015. According to that model, it will cost about $37 million to de-

molish the existing 38-year-old building and construct a new school. Initial construction estimates for the

high-income households. About 47 percent of kindergarteners or 211 children in Worcester County schools are from low-income households as indicated by free and reduced price meal status. National studies show that at least half of the educational achievement gaps between poor and non-poor children already exist at kindergarten entry. The contrast is even more apparent when comparing the readiness of students whose first language is not English to those of English speakers and those with a disability to those who are not disabled. A mere 16 percent of students who are English language learners demonstrate kindergarten readiness, 34 points lower than their English proficient peers. ELL students comprised 6 percent of the kindergar-

ten population or 28 children. ELLs who enter school approximately two years below their English proficient peers in the area of language and literacy are not able to catch up by eighth grade. Similarly, just 15 percent of children with a disability are ready for kindergarten, compared with 50 percent of their peers without a disability. About 5 percent of kindergarteners or 21 children receive special education services through an individualized education plan. A child with a disability receives specific accommodations, which permit that child to participate fully at his or her own level. In Worcester County only 24 percent of African American kindergarteners and 32 percent of Hispanic kindergarteners demonstrate this new level of readiness.

project were more than $54 million for a 104,000 square feet school. That has now been scaled back to a 90,000-square-foot structure at a construction cost of $282 per square foot. Total project cost with demolition, site development and construction is now estimated at $37.18 million, plus an inflation factor for the next three years that will bring it up to $38.93 million. Regardless of project cost the state will only fund a maximum of $8.98 million of the school reconstruction based on enrollment projections of 436 students. That means the county has to foot the bill for the remainder of the costs associated with the SES reconstruction. The estimated county bond amount is $29.99 million, with annual debt service of $2.77 million to be paid by taxpayers. In May 2014, the architectural and engineering firm of Becker Morgan completed the Showell Elementary School feasibility study. That study identified some of the major deficiencies with the existing school including building mechanical, plumbing and electrical system s that are past their life expectancy, building finishes and materials that are aged and deteriorating, and numerous Americans with Disabilities Act code and energy standard deficiencies. On the instructional side, the study q

By ROTA L. Knott Contributing Writer lans for the replacement of a school building with major instructional and structural deficiencies are moving to the architectural and schematic design phase. The Worcester County Commissioners on Oct. 6 reviewed a request to proceed with planning for a new Showell Elementary School. The county’s replacement and affordability study of the school shows the costs

October - Early November 2015Ocean Pines PROGRESS

ATTENTION WORCESTER COUNTY RESIDENTS ONLY!!!

FREE – Household Hazardous Waste & Electronics Recycling Saturday, October 10, 2015 – 10 AM – 2 PM – Collections to be held at the SHOWELL ELEMENTARY SCHOOL PARKING LOT

Household Hazardous Waste Collection WHAT WILL BE ACCEPTED:

Gasoline, gas/oil mixtures, Fuels, Acids, Cleaners, Solvents, Automotive fluids, Bleach, Ammonia, Pool Chemicals, Pesticides, Dark Room supplies, CFL light bulbs, batteries, Insecticides, Herbicides, Oil-based Paints, Thinners, Turpentine, Wood Preservatives, Wood Strippers, Etc. (dispose of solidified paint in trash – to solidify – add dirt, sand, kitty litter, mulch, etc.) All of these materials will go to a HAZ MAT disposal site. ************************************************ WHAT WILL NOT BE ACCEPTED: Explosives, Ammunition, Medical Waste, Radioactive Materials, Picric Acid, Asbestos. No Materials will be accepted from Business, Industrial or Commercial Sources.

THESE ITEMS WILL BE ACCEPTED AT THE

Electronics Recycling Televisions Any Size TV TV Remotes

Computers

CPU’s Keyboards Mouse Printers Modems Scanners Cables Misc. Computer Parts

Misc. Electronic Equipment VCR’s CD Player’s Calculators Cell Phones Radios Stereos CB Radios Fax Machines Misc. items

THESE ITEMS WILL BE ACCEPTED FOR ELECTRONIC RECYCLING AT THE SHOWELL ELEMENTARY SCHOOL PARKING LOT

SHOWELL ELEMENTARY SCHOOL PARKING LOT

OCTOBER 10, 2015 – 10 AM – 2 PM

TRASHING OLD ELECTRONICS DOESN’T MAKE SENSE

For more information on this event. Please call – Ron Taylor, Worcester County Recycling Coordinator 410-632-3177 or e-mail at rtaylor@co.worcester.md.us

28 Ocean Pines PROGRESS

WORCESTER COUNTY

October - Early November 2015

Students learn about bridges in summer STEM program

By ROTA L. Knott Contributing Writer early 800 students in Worcester County Public Schools summer school STEM academies this past summer learned about engineering and bridge construction. The STEM curricula for the summer school program allowed students to learn about local bridge construction projects and develop their own projects using the engineering method of study. The Worcester County Board of Education received an update on the summer school programs during a Sept. 15 meeting. As part of the program, the students read about famous bridges such as the Brooklyn Bridge, and they learned about trusses and beams. The engineer working on the Pocomoke River Bridge showed the students a power point presentation of how bridges are designed. The students looked at the blueprints for the Pocomoke Bridge and compared these detailed blueprints to the blueprints they were drawing for their own

bridges. The summer school program serves a significant population of students in poverty, including African American students, those receiving free and reduced meals and other students not achieving at the same levels as white students. On a countywide survey, parents indicated they wanted to see wanted to see an increase in before and after school programs as well as summer programs. The ExCEL Academies at Showell Elementary, Berlin Intermediate, Stephen Decatur Middle and other schools

prepares students for the 21st Century workforce. The Academy 100 Academy at Stephen Decatur High School focuses on a strong freshman orientation program. Research shows that grade point average and assessment results are higher when students have a comprehensive orientation program. The program’s goals are to serve students’ academic, health, social, cultural and recreational needs and provide age appropriate activities in a safe, drugfree environment. Summer school programming is an essential component in

raising student achievement, closing the achievement gap, and enriching students’ education. The school board also reviewed the school system’s new five-year Bridges to Excellence plan. The plan has five goals: academic success for all students, multiple pathway opportunities and connecting classrooms to future work environments, high quality teaching and learning, use process improvement and safe, healthy, sustainable, innovative practices to manage resources, and

Showell school

quate and the student drop-off/pick-up space inadequate and too far from the main entrance. Based on the information included in that feasibility study, in January the commissioners designated replacement of SES as the county’s number one school funding priority. At that time the commissioners instructed the Board of Education to proceed along the design and funding process for a new SES based on a more cost-effective and affordable approach. The next step is to move on to development of educational specifications and schematic designs, at a cost of $570,000. The educational specifications to be

developed will provide a written description of the instructional space and adjacency requirements and the schematic design phase will result in preliminary floor plans and front elevation of the proposed replacement school. The initial 8 to 10-month design phase will include a series of public input meetings with the SES community. Once the Board of Education approves the educational specifications and schematic design, the preliminary plans for the replacement school, the proposal will be brought back to the commissioners for authorization to proceed with construction document design.

From Page 27

found there are an insufficient number of instructional classrooms, classrooms without doors resulting in security and acoustical issues and that use of the gymnasium is limited due to the space also being used as the cafeteria. Other problems identified are that kitchen equipment is inadequate and has outlived its life expectancy, the lobby that serves as building access for all students, staff and visitors is inadequate, the number of conference rooms, planning rooms and storage is inade-

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Policy proposed to govern naming of schools, facilities

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WORCESTER COUNTY

October - Early November 2015Ocean Pines PROGRESS

County to conduct public hearing on Steen development

stadiums. The policy calls for all public school buildings to be named prior to opening for use. A name for a public school building shall be that of the community location, road, or street where the public school building is located; or a significant and distinguishable landmark which will identify the school’s location. If named after a person, living or dead, it must be someone who has made significant contributions to the nation, the State of Maryland, to Worcester County, or the public school system. Those contributions can include outstanding and exceptional support of and service to or on behalf of the public school students in the county; outstanding citizenship and character; service to the community; or superior ethical standards; and Contributions made by the person to the school system. At least 60 days prior to the naming, an announcement will be made of the Board of Education’s intent to name a public school building. In the announcement the school system will the public to suggest names for the public school building. The superintendent of schools will ultimately present to the Board the list of names submitted by the public and the superintendent’s recommendation, which may be from the list of names suggested by the public or a name which the superintendent has selected independent of the public list.

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The Board of Education will have the final vote regarding the name to be selected for the public school building. The principal or administrator of the school facility can propose the naming of the public school facility to the superintendent and shall set forth the basis for the recommendation. If the superintendent approves the recommendation, he will submit the recommendation to the school board for approval at a regular business meeting.

revise the plans to include duplex units in response to changes in the real estate market since 2008. The property borders the south side of Ocean Pines’ Section 10 and access to the duplexes will be via King Richard Road.

Waterline flushing in Ocean Pines area

The Worcester County Water and Wastewater Division of Public Works is conducting its semi-annual program for flushing waterlines in Ocean Pines, River Run, Pennington Commons and other areas of the county during October and November. The purpose of this program is to remove any accumulated sediment from the lines and to ensure the hydrants are operational. The schedule is: week of Oct. 5 - Sections 2, 3, 7, River Run, and Showell Elementary; week of Oct. 12 - Sections 1, 4, 5, 6, 8, and Harbor Village; week of Oct. 19 - Sections 12, 14a, 14b, 14c, 14d, and Mumfords Landing; week of Oct. q

From Page 28 building partnerships to enhance student success. The efforts aims to make sure students at all levels will be proficient in science and social studies and that non-native speaker will become proficient in English in order to graduate ready for college or careers. All students will graduate from high school ready for post-secondary education and/or careers. The plan call for all teachers to be highly qualified in their content areas, ensuring that the school system has a “highly qualified teacher plan” in place, and that all teachers at all grade levels receive high quality professional development in order for students to achieve high academic standards. Finally the plan calls for making sure that all students in Worcester County Schools are safe from danger, bullying, harassment and intimidation. The school board reviewed a proposed new policy that establishes criteria for the naming of public school buildings, facilities, parts or other areas in order to maintain consistency throughout the county schools. In this policy, a public school building is a structure erected by or owned by Worcester County Public Schools and used as a school, or a structure or area or component owned by the school system, such as rooms, walls, hallways, gardens, lawns, courtyards, fences, fields, and

recommendation last month to a Step I residential planned community floating zone for the two-family major cluster subdivision. The project is the first RPC proposed in Worcester County for several years. Steen’s property is zoned R-1 rural residential and RP resource protection, and both classifications allow for creation of the RPC, which must also be approved

by the Worcester County Commissioners as well. Creation of an RPC allows the developer more flexibility in designing the project including the ability to cluster the units and preserve large blocks of forest and wetlands. The developer has a previously approved 60-unit plan for the property but has simply decided to change the types of structures from single-family units to duplex units. While the units will still become part of the OPA, Steen opted to

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public hearing is scheduled for Nov. 3 before the Worcester County Commissioners on plans for a new 60-unit duplex complex called Triple Crown Estates that will become part of Ocean Pines. Developer Marvin Steen is seeking the county’s approval for development of a 92-acre property off Gum Point Road that abuts Ocean Pines with 30 duplex units. The Worcester County Planning Commission gave a favorable

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30 Ocean Pines PROGRESS October - Early November 2015 and gratuity are included in the price of AROUND THE COUNTY From Page 29 26 - Sections 9, 11, 13, Village Square, Manklin Creek area, Pennington Commons, and Cathell Road Extension; week of Nov. 2 - Sections 10, 15a, 15b, 16, 17 and Bay Point Plantation. The dates are subject to change. Even on dates the waterlines in a section are not being flushed it is still possible to experience discolored water. If area residents notice that their water becomes cloudy during these times, allow the water to run for a few minutes until it becomes clear. For more information, call the Water and Wastewater Division at 410-641-5251.

Author talk, luncheon on loss and recovery

The Worcester County Commission for Women is hosting an author talk and luncheon on Saturday, Oct. 24, from 11 a.m. to 2 p.m. at the Restaurant at Lighthouse Sound. Catherine Helwig will discuss her book “360 Turning My Life Around,” a memoir about loss and recovery. Entrees include a choice among a mixed greens salad topped with a scoop of tuna salad and chicken salad, tenderloin and brie on ciabatta bread served with fresh cut fries, and jumbo lump crab cake sandwich served with fresh cut fries and coleslaw. Freshly baked chocolate chip cookies, coffee, tea, soda

WORCESTER COUNTY

$15 per person. The commission’s “Suddenly Single” initiative is open to all coping with the loss of a partner’s support through illness, death, separation or divorce. To request a reservation flier, contact Diane McGraw at mcgrawdb@mchsi. com or 410-208-2569. Checks should be made payable to FWCCW and mailed to 7 Central Parke West, Berlin MD 21811 by Oct.19.

Bertino to host town meeting

Chip Bertino, Worcester County Commissioner for Ocean Pines District 5, will host a town meeting on Saturday, Oct. 24, at the Ocean Pines branch library. The meeting will begin at 10 a.m. Bertino will provide information on issues and developments occurring within the district and the county. Sonny Bloxom, Worcester County attorney, is the guest speaker. Bertino will be joined by Commissioner President Jim Bunting during the question and answer part of the program.

Historical Society annual fall dinner

The Worcester County Historical Society will hold its annual fall dinner at 1 p.m. on Sunday, Oct. 25, at the Ocean City Golf Club. In celebration of the fiftieth anniver-

New Berlin shop

Lori Wagman, owner of The Beez Kneez Boutique in Berlin, recently celebrated the opening of her new shop at 101 William St, with a ribbon cutting attended by well wishers and Berlin's Mayor Gee Williams. Lori started out serving customers at the weekly Ocean Pines Farmer's Market. The store features handcrafted soaps, lotions, moisturizing creams and balms along with eco-friendly pajamas, towels and robes for the ladies, herbal and aromatherapy salts and scrubs along with many more items to choose from. sary of Assateague Island National Seashore, Joseph Fehrer, coastal and lower shore project manager for the Nature Conservancy, will tell the story of the island during the transition from private ownership of the land to the establishment of the National Seashore in 1965. During the 1950’s a group of investors had begun a development called Ocean Beach on the island. By the early 1960’s nearly 6,000 lots had been sold. However, the Ash Wednesday storm of 1962 devastated the island and brought

a halt to development and eventually the opportunity for the National Park Service’s acquisition of the island. The public is invited to attend this buffet of cream of crab soup, ham, fried chicken, green beans, potatoes, slaw, and dessert. The cost is $25 per person. Checks should be made out to WCHS and sent to Bob Fisher, WCHS treasurer, 230 South Washington Street, Snow Hill, MD 21863. The deadline is Oct. 18.

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BUSINESS BRIEFS Ocean Pines Chamber announces $500 raffle

The Ocean Pines Chamber of Commerce is sponsoring a $500 raffle. Only 200 tickets are being sold for an opportunity to win $500. Tickets are available for purchase at the Chamber office, 11031 Cathell Road, Ocean Pines.

Dazzle Gift Shop to host book signing

The Dazzle gift shop in Ocean Pines’ Manklin Station Shopping Center will be hosting a book signing for Hunter “Bunk“ Mann‘s “Vanishing Ocean City” on Friday, Oct. 16, from 4-6 p.m. Refreshments will be served. The author will be on hand signing books and will be discussing Ocean City history and how the book came to be. “Vanishing Ocean City” is a wonderful gift for the Ocean City history buff or anyone who treasures Ocean City. It is a pictorial and biographical depiction of the beauty and charm of the city. Mann spent many years researching, interviewing, and chronicling the area. Dazzle Gift Shop can be reached at 410-208-4438.

Marlene Ott joins Shamrock Realty

Marlene Ott recently joined Shamrock Realty Group in Ocean Pines, which recently took over the

thru Oct. 21

office building on Racetrack Road that had been operated for several years by Re/Max Crossroads. Ott has been in the same office in the same building for more than 35 years, staying where she was even as the building experienced a number of brokerage changes over the years. Licensed since 1978 and currently a certified residential specialist, she has been consistently recognized as a national top produced and was awarded the Super Nova award by the Coastal Association of Realtors. She is involved with the Mid-Atlantic Symphony, the Community Church of Ocean Pines and is chair of the Worcester County Planning Commission.

OPA, BJ’s join forces to benefit memorial

BJ’s Wholesale Club is once again partnering with the Ocean Pines Association to bring a special membership offer, effective Oct. 16-30, to benefit the Worcester County Veterans Memorial at Ocean Pines Foundation. In addition to offering special membership benefits, BJ’s will donate $5 of each membership fee to the foundation. The offer, which is available to new and renewing members, is not available for purchase online or at any BJ’s location. Other benefits include receiving $15 off the BJ’s $50 Inner Circle membership fee or $25 off the $100 BJ’s Perks Rewards membership fee, one additional free month of membership and a free second membership card for a household member. With this offer, 13 months will be added to the expiration date of a current BJ’s membership, regardless of when the membership was last renewed. This special promotion is only offered through Ocean Pines two times a year. The next promotion will be in April of 2016. Current BJ’s members whose memberships will expire before then are encouraged to renew during the fall offer. BJ’s membership applications are available at the Ocean Pines Association administration building at 239 Ocean Parkway and online at OceanPines.org. Applications must be returned with payment by Oct. 30.

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10-15-15

Raymond M. Thompson, President and CEO of Calvin B. Taylor Banking Company in Berlin, Maryland has announced two promotions. Dominique Bias has been promoted into the Taylor Bank Management Trainee Program. She started with the bank in May of 2013 as a Customer Service Associate at the Pocomoke branch. Tori Cross was promoted to Electronic Services Representative. She began her career with Taylor Bank in September of 2012 as a CSA at the Main Office. She has worked in East Berlin, Ocean View and Fenwick.

October - Early November 2015Ocean Pines PROGRESS

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34 Ocean Pines PROGRESS

October - Early November 2015

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October - Early November 2015Ocean Pines PROGRESS

HAPPENINGS

Star Charities’ fund-raiser

Star Charities Founder/Director Anna Foultz and her group of volunteers held a fundraiser on Sept. 19 and raised nearly $3,000 to benefit Wounded Soldiers in Maryland. The event was hosted by Ed Colbert, owner of Deer Run Golf Course in Berlin and included an evening of dinner by Monty of the Lazy River Saloon and entertainment by Johnny Cash impersonator David Stone. From left sitting/kneeling: Sharon Sorrentino, Lily Tunis, Anna Foultz, and Rosalee Donaway. Standing: Ed Colbert, Irmgard Heinecke, Peggy Rumberg, David Stone, Sandy McAbee, Lee Tilghman, Barbara Peletier, and Robin Beall.

Saturday, Oct. 10 Fall pancake breakfast, Kiwanis Club of Greater Ocean Pines, 8-11 a.m., Ocean Pines Community Center. Adults $5, kids $3, under 5 free. Pancakes, sausages, fruit cup, coffee & tea. Carryout available. Benefits the youth of the Community. Ocean Pines Anglers Club, monthly meeting, 9:30 a.m., Ocean Pines Library. Guest speaker, Shirley Moran who serves on the board of directors of the Ocean City Lifesaving Museum. History of this landmark building that sits at the south end of the Ocean City boardwalk. All welcome. Thursday, Oct. 15 Pine’eer Craft Club meeting, Ocean Pines Community Center, 9:45 a.m. refreshments; 10 a.m. business, turkey favor craft to follow - $3, RSVP - Sharon 410-208-3032. Guests welcome. Monthly meeting, Worcester County Tea Party, speaker series, 7 p.m., Ocean Pines library. Guest speaker: Mike Smigiel, candidate for the U.S. House of Representatives, First District. “Party and Principles, Reagan’s 11th Commandment, the Oath to the Constitution.” Free, open to the public. Friday, Oct. 16 Pumpkin painting, family fun night, hosted by Ocean Pines Recreation and Parks Department, Ocean Pines Community Center, 6-8 p.m. Attendees bring their own pumpkins, decorations and paint provided. $5 for Ocean Pines residents and $6 for non-residents. 410641-7052.

ans Memorial Park, Ocean Pines. Participants are encouraged to wear costumes. Awards for scariest, funniest and best couple/group after the race. $30 per person. 410-641-7052. “Suddenly Single” author talk and luncheon, the Restaurant at Lighthouse Sound, 11 a.m. – 2 p.m. Sponsored by the Worcester County Commission for Women. Featuring author Catherine Helwig on her book “360 Turning My Life Around,” a memoir about loss and recovery. For a reservation flier, contact Diane McGraw at mcgrawdb@mchsi. com or 410-208-2569. Checks should be made payable to FWCCW and mailed to 7 Central Parke West, Berlin MD 21811 by Oct. 19. Wednesday, Oct. 28 Annual golf tournament, hosted by the Worcester County Veterans Memorial Foundation, Ocean Pines Golf and Country Club, noon shotgun

start. Captain’s choice scramble, $85 per player and includes greens fees with cart, range balls, grab and go lunch and dinner buffet. Awards ceremony and silent auction. For registration and sponsorship forms, www.opvets.org. Thursday, Oct. 29 Ocean Pines Association, Board of Directors monthly meeting, 9 a.m., Ocean Pines Community Center, Assateague Room. Agenda posted on oceanpines.com several days before meeting. Saturday, Oct. 31 Ocean Pines annual Halloween Fall Festival, White Horse Park, Ocean Pines, 1-4 p.m. Costume contests, carnival games, face painting, pony rides, candy, a haunted hay ride, moon bounce, crafts, refreshments for sale. Pumpkin carving contest and an “anything pumpkin” cook-off/bake-off. Admission

and games free; fee for some attractions. Contest applications at the Recreation and Parks Department. Volunteers and candy donations needed. 410-641-7052. Sunday, Nov. 1 Special tea, honoring four Worcester County women, Dunes Manor Hotel, Ocean City, 2-4 p.m. Sponsored by the Worcester County Commission for Women and Friends of the Worcester County Commission for Women. Honoring JoFran Falcon of Ocean Pines, Ruth Kemp of Ocean Pines, Mary Makinen of Snow Hill, and Barbara Tull of Pocomoke. Checks payable to FWCCW and mailed to Lou Etta McClaflin, 11108 Dale Road, Whaleyville, MD 21872 by Oct. 23. $25 per person. 410-641-7391. Ongoing Free platform tennis clinics, Saturdays at noon, Manklin Meadows tennis complex. Bring sneakers.

Sunday, Oct. 18 Sharing Sunday, Democratic Women’s Club of Worcester County, collection of non-perishable food, toiletries and paper products at the South Fire Station, Ocean Parkway near South Gate. Supplies will be shared with a local food ministry. 410-641-8553. Monday, Oct. 19 Democratic Women’s Club, monthly meeting, Ocean Pines Community Center, coffee and conversation 9:30 a.m., meeting 10 a.m. All women welcome. 814-322-2119. Tuesday, Oct. 20 Genealogy Group walk-in discussion, noon, Ocean Pines library. All welcome. Bring any questions and/or bring what you know. Moderated by Tom Dempsey, past Vice President, SCGS, and life-long researcher. The Worcester County Commission for Women, monthly meeting, 5-6:30 p.m., Worcester Youth and Family Counseling Services (Conference Room), 124 N. Main Street, Berlin. Saturday, Oct. 24 Haunted 5K fun run, 5 p.m., Veter-

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36 Ocean Pines PROGRESS

CAPTAIN’S COVE

October - Early November 2015

Captain’s Cove proceeding with second mailing of ballots Half of initial mailing contained incorrect information about the number of board seats to be filled

board vacancies on the bottom half. Wilder and the directors made a decision to reprint the ballots on bright green paper, to be mailed to property owners. The original ballots were printed on beige paper and, Wilder said, will be set aside and not counted if property owners send them in. There was some push-back against that approach during the board meeting, but it appears that the earlier set of ballots will be voided, despite concerns that some property owners, especially those who are older, will be confused by the dual mailing and might not send in the green ballots. Return ballots must be postmarked no later than Oct. 23. Results will be announced at the Nov. 7 annual meeting. There is little doubt about the outcome of the election. There are nine candidates running for seats on the board. Captain’s Cove president Tim Hearn is running for re-election, along with developer/declarant representatives Michael Glick and Jim Silfee. Hearn is president of the Captain’s Cove Utility Co., which is close to set-

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tling on the sale of corporate assets to Aqua Virginia. Hearn, Glick and Silfee are business partners, although Hearn sold his interest in CCG LLC and its affiliate companies some time ago. With Roger Holland not on the ballot this year but serving as another developer/declarant representative, Hearn and his allies have defacto control over the Cove property owners association. Directors unaffiliated with the develop er/declarant are not totally without influence, however, and can sway the outcome of votes if any of the declarant representatives are absent from a meeting. Many resident property owners are finding this political reality increasingly untenable. Some non-resident owners probably tend to be more supportive of the Hearn management team, because, albeit slowly, the board has embarked on a plan to build out the roads in undeveloped areas of the Cove, through expenditure of funds raised and allocated to the so-called Exhibit X re-

serve fund. Some resident owners, in contrast, are not as supportive of new road construction if it is financed by Cove POA reserves. If the declarant/developer casts roughly 1400 votes it controls for Hearn, Glick and Silfee, the election results are a foregone conclusion. Cove resident property owners simply have too few votes to sway elections if the developer/declarant votes are cast as they have been routinely during the Hearn era. Under Cove POA bylaws, the declarant/ developer has the right to cast three votes per lot owned, but a 2012 settlement agreement said only that the 3 to 1 privilege would be exercised under adverse financial conditions. Last year, the declarant/developer did not exercise the three for one privilege, and with a virtually balanced budget for the new fiscal year that began Oct. 1, it would not seem the conditions are present to justify its use. Nor is the three-vote privilege needed to determine the outcome of the election. When pressed during the Sept. 26 board meeting to disavow the use of the three

By TOM STAUSS Publisher hile some Captain’s Cove residents were unhappy over mistakes in the initial mailing of ballots in this year’s Board of Directors elections – complaints were pointed and persistent during the Sept. 26 board meeting in the Marina Club – the follow-up mailing of ballots makes clear that there are three slots to be filled on the board this fall, along with one alternate. Half of the initial ballots sent out in late September indicated there are only two slots to be filled this year. Communications coordinator Justin Wilder told the board and the assembled residents during the meeting that the mistake resulted from a “missed typographical error on the source document” from which the ballots were printed. The ballots were printed two to a page on a standard 8.5 inch by 11 inch sheet, which was then cut in half, Wilder said, adding that the original document sent to the printer had the correct information on the top of the page but the incorrect information on the number of

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CAPTAIN’S COVE Cove election

October - Early November 2015Ocean Pines PROGRESS

From Page 34 for one privilege in this fall’s election, Hearn declined. He also told the members that Glick, who was participating in the meeting by phone, did not have to respond to requests for clarification about the declarant’s intentions. With the audience of resident property owners growing more agitated by the minute as a discussion over this year’s election ensued, Hearn at one point

called for a five-minute recess to allow tempers to cool. That’s a technique he has employed previously when he senses he’s about to lose control of a meeting. In addition to Hearn, Silfee and Glick, the candidates running for the board include Arline Curtis, Christine Federroll, Rick Painter, Timothy Walch, Janice Widnyer and former Cove General Manager Lance Stitcher. Stitcher served six years as general manager and nine years before that as a department head. He’s been engaged

with Hearn on the Cove message board over a number of issues, including the way the Exhibit X reserve fund has been used. Diane Eicher is unopposed in the contest for board alternate. Candidate biographies and rationale for candidacies were included in the initial mailing to property owners, in addition to a lengthy explanation of the just approved budget for 2015-16 and a justification for an increase in the lot assessment to $1200, or $1400 for certain waterfront owners who live on a canal.

Approved budget – In a unanimous vote of the directors at the Sept. 26 meeting, the Cove budget for 2015-16 was adopted, with spending and revenue in rough balance at $5.226 million; there’s a nominal deficit of $3,000 anticipated. That’s $390,000 more than last year’s budget, for a 7.5 percent increase. Most of that goes to road resurfacing and new road construction, Hearn told the Progress after the meeting. The increase in the lot assessment to $1200 from $1050 last year is attributed To Page 38

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38 Ocean Pines PROGRESS

CAPTAIN’S COVE

October - Early November 2015

Captain’s Cove From Page 37 to a continued effort by the board to fully fund depreciation on Cove POA assets and to boost reserves. Response to candidate concerns – A recent candidate forums revealed two major concerns within Captain’s Cove, Hearn said during the Sept. 26 board meeting. One is the need to improve local schools and another is to counter misperceptions about the Captain’s Cove real estate market among local Realtors who critics say are contributing to property values that are not rising as quickly as they are elsewhere in the mid-Atlantic region. Hearn said there is interest among the candidates for the establishment of working groups to deal with both of these issues, and he seemed to embrace both of them. Among the misperceptions that director Pat Pelino attributed to some local Realtors, particularly those based across the bay in Chincoteague, is that the Cove lot assessment is on a path to 07-10 Oasis$2000 Travel-Ad 7/2/2015 AMand Page 1 reach in the near 10:45 future that Sections 12 and 13, currently undeveloped but slated for new roads in the coming years, will never be developed. That’s true of Sections 14 through 18, but is not true of Sections 12 and 13,

where there is a lot of scenic, high land with buildable lots once water lines and new roads are installed. Pelino said she was aware of three pending home purchases that had recently fallen through because of misperceptions and inaccuracies about Captain’s Cove. “We’ve got to get the misperceptions off the table,” she said. Wilder suggested that part of the solution to the problem will be to sit down with local Realtors to discuss misperceptions and inaccuracies so they are repeated when talking to prospective buyers. Golf cart usage – The Cove board during the Sept. 26 meeting voted to proceed with “working through” a proposal by the golf advisory committee to allow property owners to use personally owned golf carts on the Cove golf course and to access the course directly if they happen to live adjacent to the course. Travel on Cove roads by golf carts is technically illegal without state-issued license plates. The committee proposal included the introduction of a trail fee for the eight property owners who might initially benefit from such a program, but it’s unclear if the approved motion will result in a fee. Privately owned golf carts will have to be inspected and approved by Billy

Casper Golf before they can be used on the golf course. The motion established a one-year trial period for the program, with directors warning property owners there is no guarantee that the program will be extended beyond the initial trial period. Aqua Virginia asset purchase – Hearn announced during the Sept. 26 meeting that settlement in the purchase of Captain’s Cove Utility Company assets by Aqua Virginia is close. The board authorized the approval and signing of relevant documents for the transaction. Hearn and Silfee abstained from the vote. Covenant changes – Director Rosemary Hall, who at a previous meeting had suggested reviving an effort to revise the Cove restrictive covenants, took that possibility off the table during the Sept. 26 meeting. She said that Glick had declined to participate in the effort, expressing no interest in any of the proposed changes. “He said it (considering the changes) would be too divisive in the community,” Hall said. The 1400 or so developer-owned lots would be sufficient to defeat any covenant changes opposed by the developer. So Hall said it was pointless to establish a committee to review and propose possible changes.

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

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OPINION CAPTAIN’S COVE

October October -- Early Early November November 2015Ocean 2015Ocean Pines Pines PROGRESS PROGRESS

39 39

COMMENTARY Some budget ‘guidance’ for the OPA directors and GM

1. Given excessive amounts of funds allocated to the waterfront reserve, the completion of the original 35-year bulkhead replacement program in fiscal year 2013-14, the lack of a recent, comprehensive survey of bulkheads, and no proposal for a new program on the table for board consideration, suspend the waterfront differential of $465 for at least a year, or until such time as a new bulkhead replacement program is proposed and approved. Comments: The current reserve balance for this fund is $1.6 million, roughly twice the amount traditionally spent for bulkhead replacement when the 35-year replacement program was active. The April 30 audit report for last year misrepresented the status of the program, falsely declaring that a comprehensive survey of bulkheads had occurred and that a new replacement program put in place. Contrary to the impression given at the last board meeting that an error by the auditors could have caused this misrepresentation, Schedule 26 was clearly designated unaudited, which leaves the distinct possibility that the footnote containing false information was the work product of someone or individuals from within OPA management. One possible motivation for misrepresenting the status of bulkhead replacement is to justify the continued collection of the waterfront differential despite the lack of a comprehensive survey or formal proposal for a new program of bulkhead replacement. Because of the dollar amounts likely to be involved in such a program, it should be submitted to property owners for approval in a referendum in accordance with OPA bylaws before it is launched. 2. Turn the Yacht Club into a robust profit center for the OPA. Begin the process that will conclude with leasing out the lower level of the club to a seasoned, professional restaurateur while retaining direct control over the banquet business on the upper level. Comments: The OPA shows little aptitude in creatively managing the Yacht Club food and beverage business. The bar area was poorly designed, the furniture is cheap and uninviting, efforts at fine dining have not been well received, Sunday football is poorly attended and even the much-heralded trivia nights haven’t caught on this year. After the summer season, Ocean Pines residents can be found in bars and restaurants throughout the local area, enjoying the ambiance and camaraderie at their favorite dining venues and watering holes. The Yacht Club is the destination of choice for a very few. At the same time, there is evidence that the membership and public at large is favorably disposed toward the Yacht Club’s banquet business. 3. Reject or modify the membership fee for Ocean Pines non-residents proposed by the Budget and Finance Committee. As an alternative, consider modifying the resident – non-resident differential for classes/ programs hosted by the Recreation and Parks Department to make the cost advantage to residents more apparent. Comments: This recommended membership fee could be construed as coercive and mean-spirited towards people who neither live nor own property in Ocean Pines. This is not a positive way to improve Ocean Pines’ reputation in the county or to have good

relations with its neighbors. 4. Eliminate or substantially reduce the $450,000 in golf-related funded depreciation that, together with operating losses last year, boosted the non-golfer subsidy of golf into the stratosphere (in excess of $650,000) last year. Comments: Future generations can be called upon to pay for green replacement, golf drainage, and irrigation equipment if and when it is needed. So soon after OPA reserves were depleted to pay for some or part of these improvements in recent years, current OPA members should not be asked for their replacement far into the future. Eliminating $450,000 in golf depreciation would save property owners roughly $80 on their annual lot assessments. Failure to make this common-sense cost reduction – there is no accounting rule that says all capital items must be depreciated by a non-profit organization -- could increase agitation for a referendum to sell or close the golf course. Not implementing this cost-saving measure could result in consequences far worse than lost depreciation-related revenue. 5. Eliminate all but component-related depreciation for the Yacht Club and Community Center, continuing to depreciate components such as furniture and HVAC but NOT the entirety of these buildings. Comments: Future generation can figure out how to pay for new buildings if and when they are needed. It is unfair and unnecessary to tax current property owners for future building replacement far into the future. The Yacht Club, for instance, has not been fully “paid for” by the Heritage reserve (formerly the fiveyear funding plan), the ostensible reason why this reserve is roughly $1.2 million in deficit. Even while the new building is not fully paid for, the OPA is collecting depreciation for its replacement that won’t be needed until decades into the future. 6. Eliminate the golf drainage and future projects reserves from the reserve summary, as they were zeroed out as part of this year’s budget process. Comments: Any future golf drainage projects can be considered as part of the normal capital budget process and funded through the major maintenance or replacement reserve. Alternatively, they could be considered “new capital” and could be funded out of the current year assessment. The most egregious cases of poor drainage on the golf course have been addressed already; tearing up the golf course again will only serve to cause more “bad vibes” about the Ocean Pines golf course and will hurt outside play accordingly. Any more major capital expenditures related to the golf course will only intensify opposition to the golf course from among the OPA membership. 7. Zero out, eliminate and reallocate the $277,000 contained in the inaptly named operating recovery reserve fund. Comments: This reserve was zeroed out two or so years ago after having achieved its purpose, but then resurrected, for the alleged purpose of having the funds available should certain potential liabilities from years ago need to be paid. As the statute of limitations reduces this potential liability year by year, this reserve loses its raison d’etre. This reserve has turned into an unjustified pretext for extracting roughly $135,000 per year from OPA members – roughly $16 per year in the lot assessment. 8. Eliminate new Legacy reserve funding (former five-year-plan) of $923,760 if a new capital improvement plan is not proposed and approved by the board prior to adoption of next year’s budget.

Comments: The reserve study under way should help clarify the condition of OPA assets and the capital improvement plan should clarify what major capital improvements are needed in the next ten years. Unless and until a new CIP quantifies them, the OPA should not be collecting supplemental funding for projects that are theoretical, unproven and unauthorized. 9. Zero out the $1.2 million deficit in the Legacy component (five-year plan supplemental funding) of the Major Maintenance and Replacement Reserve by reallocating roughly $1.2 million in the Historical (funded depreciation) component to the Legacy component (as was done this year to zero out future projects and golf drainage reserves). Comments: There is an inherent absurdity and needless complexity in the concept of negative reserves. As the “Historical” component is bloated with $5.6 million in assets of Aug. 31, with funds far in excess of average annual spending for replacement items, this “source” of funds to zero out the Legacy reserve is an obvious one. If there is a lack of will to zero out the Legacy reserve through use of funded depreciation revenues collected over the years, then perhaps a compromise could be considered: $900,000 could be reallocated from the Historical Reserve and $300,000 in new supplemental Legacy money could be allocated, thereby achieving the purpose of zeroing out the Legacy reserve. In future years, supplemental funds could be added back to this reserve as specific capital projects are identified. 10. Rename the two components of the Major Maintenance and Replacement Reserve with terms that are more accurate and less opaque and uninformative. The Historical Reserve could be renamed “Funded Depreciation,” because that is its source of funding, and the Legacy Reserve could be renamed “Major Projects – supplemental” because that captures its original purpose when it was conceived as the five-year plan. 11. Reject the proposed “rolling, multi-year” capital budget. Comments: This proposed change in the capital budget is unneeded. The rationale and logic offered for it to date is unconvincing, as the board’s only practicing lawyer correctly dissected and argued at the Sept. 24 board meeting. The general manager finds it inconvenient to have to go back to the board to ask for funds to finish a project begun in a previous fiscal year. This is of little consequence. Somehow previous general managers have coped with this inconvenience and so can the current one. The board on rare occasions has been accused of funding unbudgeted capital items if a particular capital expenditure funded in one year does not occur until the following year. This “public relations” problem is of little consequence and can be easily deflected and explained if the project is a worthy one and, if for reasons that can’t always be avoided, rolls over into the following year. Director Terry has said that even with a rolling capital budget a capital expenditure will require a board vote if the projects extends into a second year. This statement contradicts wording in the motion he offered for board guidance and capital management planning at the Sept. 24 meeting, which “set in motion the creation of a procedure to enable capital dollars to be carried over from the one fiscal year to another.” The concept of carry-over implies no new approval

he Board of Directors is considering some “guidance” to the general manager in the preparation of the 2016-17 Ocean Pines Association budget. The Budget and Finance Advisory Committee and Director Tom Terry have offered some ideas; here are a few other suggestions:

40 Ocean Pines PROGRESS

OPINION

October - Early November 2015

COMMENTARY

Yacht Club could become substantial profit center

t’s hard to imagine any group of Ocean Pines directors having the intestinal fortitude to a) admit that the current management model at the Yacht Club isn’t working and b) fixing it in a way that would turn a perennial loser and drag on Ocean Pines Association finances into a winner and cash cow. For the fiscal year so far, through August, financial results are much improved over a year ago, but still behind budget by roughly $50,000. Year-over-year comparisons aren’t apples to apples, because in May of last year, the first month of operation for the new amenity, the Yacht Club was only open the last week or so of the month. Through August of this year, the $209,004 surplus looks impressive, and much of that can be attributed to the success of club manager Jerry Lewis in controlling expenses in the face of gross revenues substantially under budget. Gross revenues are almost $280,000 less than budget forecasts, while net revenues are roughly $127,000 behind. Lewis deserves a lot of credit for the robust surplus to date, a $140,000 improvement over the same time last year. But let’s be absolutely clear: Rosy Scenario once again came up with the revenue forecasts this year, and once again she has badly missed the mark. So much for traditional board “guidance” to the general manager about developing realistic amenity budgets. September results are due out by the third week of October, and there will probably be indications that the erosion of substantial summer surpluses are beginning to set in. That, at least, has been the historic pattern. Losses begin to build as the weather cools. By winter, the red ink is substantial enough to wipe out the summer surpluses, leaving a loss for the year. Lewis’ management skill offers at least some reason for optimism that this historic pattern won’t be as acute this year, but that’s hardly guaranteed. Days of operation beginning Oct. 1 have been cut back, to

a Thursday through Sunday schedule, and that seems earlier than in previous years. That’s a good sign. Some other indications and rumors of discontent of Yacht Club operations from within the Clubs Advisory Committee, however, suggest that all is not well with the onset of the fall shoulder season. So far, the Thursday night trivia nights have under-performed, not nearly as popular as they were last winter when they were held on Sundays. Moving them to Sunday nights would clash with Sunday football. The NFL Directv package hasn’t done all that well either, in part because no one really knows which game or games will be featured on the bar’s big screen with sound; other games might be featured on other screens but with no sound to complement the video. The expensive steak night appeals to a small group of people looking for a fine dining experience, willing to spend $50 or more person for a steak entrée and sides, but that leaves a lot of folks looking elsewhere for less expensive or half price specials that abound in the local area this time of year. Fine dining in a restaurant with tacky tables and chairs is by definition oxymoronic. The banquet-catering side of the business appears to be doing well enough, perhaps underperforming somewhat on the revenue side relative to budget but not horribly out of whack. The OPA still hasn’t figured out how to separate out banquet operations from regular food and beverage, but it’s probably safe to conclude that banquets are much more profitable than the regular dining side of the house and the bar business. If OPA policy-makers were truly interested in turning the Yacht Club into a cash cow, guaranteed to produce a substantial surplus every year, there are two relatively simple ways to do it. One way would be to close it for everything but banquets and special events after Labor Day, thereby

preserving the summer surpluses and even adding to them by continuing the part of the business that even Ocean Pines can’t screw up. The other option would be to lease out the downstairs bar and dining room to a competent, seasoned restaurateur, with the OPA sharing in the profits or even taking a percentage of the gross. The OPA could continue to operate the banquet business on the second level. Hours and days of operation would be up to the tenant. Winter hours wouldn’t be guaranteed if the tenant can’t figure out how to make money, or at least not lose any, during the colder months of the year. This two-tiered arrangement would, as much as anything can, guarantee a substantial surplus for the OPA. The fact that the Yacht Club had produced a $209,004 operating surplus through August actually makes it more likely, should the OPA make it known that it is willing to lease out the downstairs, that excellent candidates to run the Yacht Club would emerge. If the OPA can produce a surplus north of $200,000 through August, on gross revenues of $1.16 million and net revenues of $807,583, just how much could be produced by an entrepreneur driven by a profit motive and the experience and success to turn the Yacht Club into a massively popular place to dine and hang out? Now would be the time to send out feelers into the Ocean City business community that the OPA is genuinely interested in taking the Yacht Club to the next level. Or the OPA could contract with a compent commercial real esstate broker to handle the solicitation process. For the right entrepreneur, the Yacht Club would be a golden opportunity. – Tom Stauss

Budget guidance

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From Page 39 is needed for carry-over items, and yet it is acknowledged that a vote would be required. This carry-over is either automatic or it isn’t. It can’t be both. Proponents of this rolling capital budget are mired in conceptual confusion. If the general manager can’t resolve this confusion when he presents a proposed rolling capital budget format, the traditional format should be retained. The traditional format could be kept with the proviso that items included in the capital budget in any given year should be started and, if possible, completed in that year. The general manager should be evaluated on his ability to execute. Capital expenditures and projects that don’t stand a reasonable chance of completion in any particular fiscal year in most cases should be excluded from the approved capital project list for that year. Alternatively, funding for some projects could explicitly extend across two fiscal years for budgeting purposes. With proper plannng, most of the “problems” this solution is designed to fix won’t materialize.

OPINION

October - Early November 2015Ocean Pines PROGRESS

Jacobs demonstrates some admirable independence

cean Pines voters made some intelligent choices in their choices for the board of directors this summer. Both successful candidates, Tom Herrick and Cheryl Jacobs, were out of the box early with some judgment calls that bode well for the future. Herrick probably was the director most responsible for heading off the ill-considered attempt by carry-over directors shortly after the August annual meeting to convene a meeting of the board excluding directors Dave Stevens and Jack Collins. When he saw the initial email announcing a meeting for the purpose of setting a new direction for Ocean Pines, he noticed that Stevens and Collins had been left off the distribution list. It didn’t take him long to let the meeting organizers know that such an attempt to exclude two directors was objectionable on its face. Jacobs also seems to have resisted calls for that early exclusionary meeting, but it was Herrick who, in a note to a local political blog, was most forthright in expressing his objections to it. Jacobs seemed initially caught up in the notion that somehow the meeting was proper under the OPA bylaws and Maryland HOA Act because, until the official organizational meeting of the board, she was somehow only a “quasi-member” or member-in-waiting of the board. It wouldn’t be surprising if this is the last time she accepts somebody else’s legal opinion on something without first doing her own research. It turns out that a board member becomes a board member immediately upon announcement of the election results at the annual meeting, or in a special meeting called immediately

by the board. At which point in time Jacobs pounced and argued, convincingly, that An excursion through the curious cul-de-sacs therefore no change in policy was needAn excursion through theby-ways curious and by-ways and cul-de-sacs ed. Whether most of her colleagues even of Worcester County’s most densely populated community. of Worcester County’s most densely populated community. understood her nuanced argument was By TOM STAUSS/ By TOM Publisher STAUSS/Publisher not all that evident. Newly anointed assistant treasurer thereafter to certify the election results. er Bob Thompson for a recommendation Pete Gomsak, given his old job back this OPA General Counsel Joe Moore ini- at a future meeting, Jacobs had enough year after the prior board had unceretially flubbed the issue of when board clarity of mind and decisiveness to con- moniously unhired him for the job, then members become board members, giving clude that carry-overs are a bad idea attempted to defend the proposed rollsome of the carry-over directors cover or and that no change in current policy and over policy as less of a budgetary matter a pretext for attempting to convene a practice is warranted. and more a matter of public relations. meeting in violation of the HOA Act and To Jacobs, if money remains unspent Supposedly given the assistant treathe OPA bylaws, ostensibly to decide on in one fiscal year for a budgeted capital surer’s job for his widely admired if not officers for the coming year before the project, the correct procedure should be envied expertise in all matters financial, official organizational meeting. that it be brought to the board for reau- given the platform to speak in a suspenIt was only later that Moore admit- thorization the following year when the sion of regular order he chose to weigh ted the flub and took full responsibility general manager is ready to present it. in on public relations. for igniting the kerfuffle that began the That the supporters of the proposed Did anyone notice or care that he was term of newly elected President Pat Re- change in policy admitted that such ap- pontificating outside his supposed area naud on a somewhat sour note. proval would have to occur even with a of expertise? At the board’s first substantive meet- roll-over policy in place only reinforced He opined that the public relations ing post reorganization, the regular Jacobs’ opinion that the proposed roll- rationale for adopting a rollover policy monthly board meeting in September, over policy is unnecessary. is that it would prevent unruly members Jacobs emerged as someone to be reckHer logic was irrefutable. of the OPA board – he probably had foroned with. Thompson attempted to defend roll- mer director Marty Clarke in mind but Any possibility that she will keep overs as a way of dealing with the fact didn’t mention him by name – from critquiet for the much of the first year of that he is sometimes unable to complete icizing the board for approving unbuda board term – advice sometimes given a project before the conclusion of a fiscal geted expenditures. new directors by carry-over directors year, thereby changing the status of the But Clarke alone among recent diwith more experience in the minutiae of project to an unbudgeted one in the next rectors consistently argued against such Ocean Pines – seems remote, given her fiscal year. expenditures; he was usually a lonely willingness to weigh in on at least one The roll-over policy as it was present- minority of one. For him, it was a matter issue that occupied the board at the Sep- ed to the board initially seemed to im- of principle. tember meeting. ply – and it was so interpreted by most Most directors take the position The issue, whether unspent capital in the room – that he would not need to that the budget is not intended to be funds in one fiscal year should be rolled seek new board approval to spend re- a straight-jacket and that on occasion over into the next fiscal year as a mat- serve funds for capital projects autho- it happens that unanticipated “needs” ter of policy, may not be the most crucial rized in the prior fiscal year. arise and that “unbudgeted” expendione to ever confront a board of directors. Once it became clear how unpalat- tures for capital projects are justified. Still, it’s hardly a trivial issue, since it able that would sound to some OPA With Clarke’s absence, it’s difficult involves the expenditure of OPA funds. members, supporters of the proposed to imagine any director raising an issue While her colleagues seemed willing to policy stipulated that in fact such ap- about an unbudgeted capital expendipunt the issue over to General Manag- proval would have to sought and given ture if a good case can be made for it. The budget is a planning document, not sacred writ. The roll-over policy proposal is a solution in search of a problem. Should Thompson be unable to comDefinitely, Sandpiper Utilities. Who’s cents per CCF for supply. Can you imag- plete a project already started until the getting abused? Ocean Pines residents. ine that -- less than a dollar a CCF plus following fiscal year, he need only bring that to the attention of the board, whose We just went through an election pro- 41 cents for delivery. Granted, you would require about members will no doubt swiftly approve cess. Was natural gas ever mentioned by any of the candidates? Is natural gas 2.7 times more natural gas to obtain the the unbudgeted expenditure. The ultimate effect on the relevant same amount of heat, so you would wind ever an agenda item at Board meetings? reserve fund that is paying for the capup paying $3.78 for natural gas to get Do the new members of the board unital expenditure will be the same either the same results of one CCF of Sandpipderstand the financial windfall Ocean way. er’s propane. That is a $5 difference. If Pines residents will get when they are Should Thompson be unable to even converted to natural gas? And where is you are one of the people who switched start a project in a fiscal year in which from the Sandpiper pipe to tanks and the media coverage on this important it is authorized, he will be required to are paying $1.99 per gallon of propane, issue? bring that to the attention of the board it equates to $ 5.50 per CCF, a substanLet’s get some facts cleared up, beand ask for permission to proceed with tial saving in itself, but not as good as cause a lot of misinformation on this it. converting over to natural gas. PSC tarsubject has been bandied about. This If that’s an inconvenience, so be it. past year the average price of a hundred iffs are public record and can be seen on A certain faction of board members the Internet. cubic feet (CCF) of Sandpiper propane with Gomsak as a behind-the-scenes Will the Ocean Pines’ delay allow cheerleader promoted Jacobs and other was $8.78. Chesapeake Utilities, their Sandpiper to go back to the PSC and get female candidates to the board this year. parent company, controlled by the Maryanother sweetheart tariff, again promisland Public Service Commission, and If they thought that support for their operating in four other Maryland coun- ing to absorb conversion costs? What a one success story means they control ties, charges $1.40 per natural gas CCF. farce that has been. If we were convert- her, early signs are that there are no The PSC tariff allows them to charge 99 puppet strings in sight.

LIFE IN THE LIFE INPINES THE PINES

Sandpiper standoff?

Winter Is Coming … Are You Prepared? That is the headline of Sandpiper’s Energy Talk Bulletin. The bulletin also proclaims the Sandpiper has converted over 2000 customers to natural gas in our first two years of ownership. But none in Worcester’s largest community, Ocean Pines. Here we go again. Another cold winter coming up and still no resolution to the introduction of natural gas into Ocean Pines. I can’t imagine a more useless degree of incompetence on the part of a governing body than the actions of our board of directors and general manager on this topic. Why the ongoing delay? It certainly isn’t a negotiation. Negotiations get resolution in decisions and compromises. In Ocean Pines a negotiation is nothing more than a delay, or better said, a standoff. Who’s benefiting?

LETTERS

42 Ocean Pines PROGRESS

OPINION

October - Early November 2015

LETTERS ed and were paying the NG price Chesapeake is held to by the PSC, we all could have saved enough money in the past 30 months to pay for converting ourselves at least three times over. I personally believe Sandpiper was created by Chesapeake Utilities just to continue the abusive rate routines of Eastern Shore Gas, and unfortunately they will continue to abuse us until we are cut over to natural gas. When Sandpiper’s PSC tariff is reviewed in December, will the PSC allow them to continue this “hokem” about paying for conversion, so they can continue abusing Worcester customers? On a final note, where do the Worcester County Commissioners sit on this issue? Are they in any dialogue with the PSC about Sandpiper’s tariff? Who is designated to represent customers during tariff negotiations? Or are our elected officials sitting on their hands, as they did about getting the natural gas pipeline finally into our county. Let’s face it, the commissioners did nothing on that subject until the residents of Ocean Pines started petitions and went to the media to get some enthusiasm behind getting the pipeline into the county. Ironically, although the people of Ocean Pines started the ball rolling, it seems everyone around them is getting converted and Ocean Pines is still held up by our “leadership”. I’m just so sick and tired of this continued lack of representation by our elected officials. What do we have to do to get them to move on this important financial issue? I would also like to know why other Ocean Pines users of Sandpiper propane are not demanding action from our board of directors. Am I the only one suffering? Budd Shea Ocean Pines

Getting over golf losses?

I read in the Ocean Pines Progress [September-Early October] the annual cost to Ocean Pines property owners of the golf course, a subsidy of more than $660,000. In the letters section in the same edition, a resident suggested that I “get over it,” by which presumably was meant the losses and subsidies of the golf course. I remember when the Community Center proposed for Route 589 was being hotly debated. One lady’s statement that made the TV news was that “if you don’t like it, just move.” Well, I did not move. Nor will I “get over” continuing losses at the golf course. Michael Graves Ocean Pines

Watching Pat Renaud

Last year, I worked hard to elect Pat Renaud to the Board of Directors. His campaign message was change and I agreed with it. That is what Ocean Pines people want.

He got elected, and then the only change I saw was the change in his commitment to me and others. He got friendly with Tom Terry and he dropped his campaign friend Dave Stevens. Renaud failed to keep his word to support Slobodan Trendic after he sacrificed his own race for Renaud last year. Is this how he treats his friends and supporters? Last year, Renaud agreed to work hard with Dave Stevens to make Ocean Pines better, but Renaud just sat quietly at the board table quietly while Stevens worked hard. Renaud told me he did not want to see Pete Gomsak involved again in Ocean Pines Association management but then he voted for Pete to be [Ocean Pines Association] assistant treasurer. Renaud failed to keep his promises and disappointed me and all the homeowners I persuaded to vote for him. I gave them my word that Renaud would do the right thing for the community, but he turned on all of us and started to click with Tom Terry. That is not why we elected Renaud to the board. I want Renaud to make it right and correct his mistakes. He is now the new president of the OPA and no longer has any excuses. I am watching him at every meeting from now on. I want him to honor the promises he made to all of us last year. Roelof “Dutch” Oostveen Ocean Pines

Beautiful Berlin

Another award for the tiny town of Berlin. A nationally know magazine named Berlin “One of the 50 Most Beautiful

Small Towns in America.” It is a shame that the architect and quiet man who made this possible passed away only a few weeks ago. This man was an unsung hero of Berlin. When a group of about ten local families wanted this dying town to be a place of pride, these optimistic people bought the Atlantic Hotel. This was nearly three decades ago. When they walked into the hotel, they could look up and see the sky. Water was dripping and beams were sagging. They chose a local man named Larry Widgeon to do the almost impossible. At this time most of the store fronts were boarded up – no business. The town was in a shambles and almost an eyesore. Among the families were the Barretts, Eshams, Jenkins, Hollands, Croppers, and a few others I can’t remember. I do apologize for the omissions. The hotel was built in 1895 and the restoration by Larry and his son, Shawn, began in 1986 and was finished in 1992. It was praised by everyone and won a state restoration award. Berlin was on the rise. Next came the Renaissance Plaza that Larry and his son completed. Again, this project won a state preservation award. Larry also did many more projects in Berlin, keeping that historical eye in mind. Then the Barrett and Bill Freeman families bought the old Dollar General store and the Acme market. Larry stayed true to the historical style. As all of these properties improved, the boarded up buildings became thriving businesses and Berlin became a

must see on the Eastern Shore, especially with its friendly and very safe atmosphere. Although I live in Ocean Pines, my wife and I visit Berlin often and not only when they are having great special events. We enjoy the unique shops where the employees are always very pleasant and the restaurants which have their own appeal. Simple Berlin has become a must see. But it not just this few block area that has grown. We now have a beautiful hospital and doctors’ offices that are close and convenient. Any type of store you want is only a few minutes away. Many new high-paying jobs are available which adds to the much needed revenue. All this looks very positive for the area. I have met mayor Gee Williams casually a few times. Just like all the pictures you see in the papers, the mayor always has a smile on his face. The thing I admire most about the mayor is that when people congratulate him about Berlin, the first thing he says is that it didn’t happen overnight. He gives credit to those first families who were optimistic about Berlin three decades ago and those who are proud of their community continuing to make progress. According to Mayor Gee Williams, the man with the ever-present smile, the town has received seventeen awards since 2012 and he always credits the beginning three decades ago. I am sure Larry Widgeon, who we lost only two weeks ago, is very proud of this latest award from Good Housekeeping magazine and is looking down with a few of the original ten. Jay Stulz Ocean Pines

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October - Early November 2015Ocean Pines PROGRESS

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