October 2017 ocean pines progress by Ocean Pines Progress

October 2017

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THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY COVER STORY

bailey era BEGINS New GM calls Country Club second floor renovation a priority worth waiting for Says the OPA should take the time to get the proposed uses and floor plan right before proceeding with the project By TOM STAUSS Publisher General Manager John Bailey two weeks into his new job wasn’t telegraphing his recommendations on how to proceed with the renovation of the second floor of the Ocean Pines Country Club. During his first regular meeting of the Board of Directors on Sept. 29, Bailey said the stalled renovation projection was a top priority. He advised that the latest iteration of floor plans for the second floor renovation, recently completed by George, Miles and Buhr engineering firm, would probably need some revision. He also said he and the board will want to decide “what we want out of the end game” – by which he probably meant the longer term business plan for the amenity – before finalizing a floor plan. He told the board that he wanted

Abi’s DINER

New OPA General Manager John Bailey

to get the project done “right” as opposed to quickly. He also said that the second floor, which he described as a mess after the demolition that occurred this past spring, would need to be insulated before the onset of the winter months. Bailey’s brief, non-specific remarks dovetailed with those offered by Director Slobodan Trendic in re-

cent months. He has said that management and the board need to agree on a business plan for the amenity’s second floor, including specifically what it will be used for. Trendic said he had not yet seen a business justification for a new kitchen on the second floor, for instance. Last fall, a preliminary floor plan included a second level kitchen to serve up to 140 people attending golf banquets or similar events. The first floor renovation that occurred this past winter included an expansion of the Tern Grille. Trendic said that the occasional golf banquet upstairs could be accommodated by the downstairs kitchen or, perhaps, a large banquet event could be relocated to the Yacht Club. He has also suggested uses for part of the second floor that might not be golf-related. One idea worth considering is a fitness center, an

County agency investigating missing funds

Mum’s the word on an investigation of missing cash that was serious enough that Ocean Pines Association officials felt compelled to call in the Worcester County Bureau of Investigation to do what it does – investigate – the very first week of new General Manager John Bailey’s tenure as chief executive officer of the Ocean Pines Association. President Doug Parks made it very clear that, on the basis of legal advice offered by OPA legal counsel Jeremy Tucker, no OPA official would be offering comment.

~ Page 11

Viola: Resignation not related to OPA financial probe John Viola resigned as director of finance for the Ocean Pines Association effective on Sept. 22, having served in the position for roughly six months following the abrupt resignation of Mary Bosack. Viola, who had been the former chair and member of the OPA’s Budget and Finance Advisory Committee, took on the position in what seems, in retrospect, to have been a temporary caretaker role. Viola says his resignation had nothing to do with the ongoing investigation of missing funds.

~ Page 13

Fued between Herrick, Trendic continues to fester

While the newly reorganized Board of Directors and newly anointed General Manager John Bailey seem to have ushered in a new era of collegiality – or at least what newly elected President Doug Parks calls an era of “no surprises’ – some of the resentments from the previous board continue to fester.

To Page 10

~ Page 24

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Ocean Pines Association President Doug Parks presents a Certificate of Appreciation to long-serving former Board member Dave Stevens at the Sept. 29 regular board meeting in Ocean Pines. Stevens, who retired from the board after the August election, could have sought re-election this summer but decided not to. He served nine years as a director and continues to chair a working group that has been updating the reserve study and developing a new capital improvement plan.

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Name change urged for the Cove at Mumford’s

It’s too soon to know whether a name change will happen, or when, but some Ocean Pines Association members apparently would like to see the restaurant venue at the Ocean Pines Yacht Club changed back from the Cove at Mumford’s to Ocean Pines Yacht Club. At the Sept. 29 meeting of the Board of Directors, one resident urged the name change and most of the assembled group of residents cheered and clapped in response. Judging by non-committal comments he made in his general manager’s report, new General Manager John Bailey seems to be aware that there is sentiment in the community to return to the traditional name. The name change was initiated during the tenure of acting General Manager Brett Hill as a way of rebranding the amenity from a members-only facility to one that is open to the public. While the Yacht Club in fact is open to the public, and has been for decades, the name “Yacht Club” in some minds connotes members-only.

Forum poll two to one in favor of closing YC

Odds would seem to favor a decision by the Board of Directors and General Manager John Bailey to keep the Yacht Club’s Cove at Mumford’s open at least through the annual New Year’s Eve celebration. But that’s a best guess based on body language and off-the-record comments by sources who aren’t exactly sure what Bailey’s thinking is at the moment. The Cove recently announced half price burger specials on Thursdays with advertisements in many local publications, so it wouldn’t appear that closure is imminent. With more than 400 members responding in a poll posted on oceanpinesforum.com in late September, roughly two thirds favor immediate closure of the amenity to stem losses.

Swim coach suggests new indoor lap pool

Brooks Ensor, coach of the Ocean

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Pines swim team (the Hammerheads), recently suggested that the Ocean Pines Association’s Aquatics Advisory Committee and the OPA look into the possibility of building a new 8- to 10-lane indoor swimming pool adjacent to the existing Sports Core pool. The purpose of the new facility, Ensor said, would be to better accommodate year-round swim team activity and to address increased “prime time” congestion at the Sports Core pool, which he defined as the hours from 3:30 to 8 p.m. He said a 25 yard by 25 yard enclosed pool would be large enough for a ten-lap pool. In addition to the Ocean Pines swim team, the Stephen Decatur High School swim team practices most afternoons from November until February from about 3:45 to 5 p.m. With other swim programs and the Hammerheads competing for space, scheduling has become a challenge. At least one lap lane is supposed to remain open at all times at the Sports Core pool. Aquatics Director Colby Phillips, emphasizing that she was not in a position to advocate or recommend a new indoor pool, said a dedicated lap pool adjacent to the existing amenity has long been a dream of hers. It was also a longer term capital project favored by former OPA General Manager Bob Thompson. He called it a natatorium, and it would have carried a multi-million dollar price tag. The idea was thoroughly researched and the subject of a

written report by aquatics committee chair Virginia Reister during Thompson’s tenure. The report was given to Thompson but never widely distributed because of funding concerns. A natatorium was never endorsed by the aquatics committee. The discussion about researching the possibility of a new indoor lap pool occurred during the aquatics committee’s Sept. 11 monthly meeting. OPA President Doug Parks, the committee’s board liaison, attended the meeting but did not weigh in pro or con on the idea. Phillips noted that in the Memorial Day to Labor Day period, visits to the Sports Core pool have increased from 79,161 in 2014 to 92,350 this summer. One committee member suggested that a newer-generation bubble over the existing Swim and Racquet Club pool could be considered as well for year-round swim team activity and additional aquatics programming. That idea would require retrofitting the aging bathhouse there for year-round use, however. Phillips said she would check into whether there would be any critical area or other regulatory concerns about adding a second pool at the Sports Core, including parking requirements. In subsequent e-mail to the committee members, she said county officials had advised that they didn’t think there would be critical area concerns at the site. Another concern would be new parking requirements and stormq 

OCEAN PINES

6 Ocean Pines PROGRESS October 2017 depreciation, specifically that which OCEAN PINES BRIEFS From Page 5

water drainage issues. Committee members discussed the possibility that expected surpluses in Aquatics in the current and future fiscal years could be used to finance any new aquatics amenities in Ocean Pines, such as a second indoor pool. This financing mechanism would address concerns by those who don’t use Ocean Pines’ swimming pools that they shouldn’t have to subsidize those who do. The committee discussed obtaining prices for both options before making any specific recommendations to the board.

Golf course depreciation may overtax OPA members

During a meeting of the Reserve Study/Capital Improvement Plan last month, members veered off into the weeds with discussion that it’s possible that Ocean Pines Association members may be paying more than they should be for golf course

is related to drainage and new green improvements. In general, land is a non-depreciable expense, committee members agreed, but pipes and other mechanical infrastructure would be properly included on an asset list. Some of the drainage improvements on fairways, however, involved pushing dirt into the middle of the fairways to promote better drainage. Higher elevation mounds of tapered dirt probably wouldn’t be depreciable. The question is whether there has been any attempt to separate out depreciable improvements on the course from those that weren’t. Roughly $400,000 in golf course depreciation is charged to all property owners in the OPA budget.

Parks sets 72-hour window to return member e-mails

Ocean Pines Association President Doug Parks told his colleagues at the Sept. 29 regular meeting of the board that he hoped to do better than previous boards in always responding to member e-mails.

OCEAN PINES He said the directors could e-mail among themselves regarding who responds to which particular e-mail, but he said he would like at least one director to respond to every e-mail. He also said that the response should occur within a 72-hour window. In another disclosure about how he intends to manage his term as OPA President, Parks said that he and OPA Vice-President Cheryl Jacobs will be meeting Monday mornings every week with General Manager John Bailey to discuss what Parks said would be roughly three top items on Bailey’s agenda. Parks said he hoped the meetings wouldn’t last for much more than 15 minutes.

Bosack back as OPA director of finance?

There’s no word yet on who might be replacing John Viola as director of finance. One tantalizing rumor that has been making the rounds is that Mary Bosack, who left the position rather abruptly after disagreements

with former acting General Manager Brett Hill, might be returning to her former position, now that Hill is no longer the GM or even a member of the Board of Directors. At the Sept. 29 meeting of the board, it was announced that the OPA would be advertising for a permanent replacement for Viola, whose departure itself seemed peculiar to some. He reportedly accepted the position last winter as a temporary fillin, until such time as the OPA had a new general manager on board. The gap in that particular narrative is that during the summer months, when the directors were busily vetting a new general manager, there was no announcement that Viola would be leaving shortly. No advertisements soliciting replacements were placed in local media. In any event, Bosack’s return under presumably more harmonious conditions would be welcomed by many OPA staffers, who generally found her easy to work with. The same was said about Viola.

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8 Ocean Pines PROGRESS

OCEAN PINES

October 2017

By TOM STAUSS Publisher report in a local weekly newspaper about a lawsuit for damages related to the repayment of a loan filed against him by a business associate omitted an important point that renders the lawsuit moot, former OPA Director and Acting General Manager Brett Hill told the Progress recently. Hill said a lawyer for his business associate, who was described last fall as a consultant and a member of the board of directors of Hill’s company, FTS Fiber, filed the lawsuit in Worcester County Circuit Court by mistake and without the knowledge of his client. “The lawsuit will be dropped,” Hill said in a Sept. 22 telephone in-

Hill downplays lawsuit by business associate Hill said legal action against him was filed by ‘mistake ‘and will be dropped terview. He said he maintains good relations with his business associate, Kenneth Lawhorn, and that the issue of loan repayment that was the subject of the suit will be addressed amicably. The suit alleges non-payment on the balance of an $80,000 loan made in June of 2016 for use as company capital. The loan’s promissory note stipulated that Hill was to repay the loan

in full by September of last year and to transfer one share of FTS stock by October of last year. The note was amended extending the deadline until Dec. 23 of last year in exchange for two additional shares of company stock. The suit acknowledges that Hill made three payments of $11,515 each on June 23, July 7 and Aug. 3 of this year, leaving a balance of $55,164.28. The suit alleges breach

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Pictured (left to right) are Christine Okerblom, OC Life Saving Museum coordinator; Joe Britvch, USCG auxiliarist; Patti Burke, long time OC visitor; and Don Schaefer, USCG auxiliarist. Britvch and Schaefer are longtime Ocean Pines residents of Wood Duck II. Britvch and Schaefer have been providing marlinspike (knot tying) demonstrations every Wednesdays during the summer on the Ocean City boardwalk on behalf of the OC Life Saving Museum. Burke has participated in the handson demonstrations all 25 years.

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of contract and unjust enrichment. Hill said the article in the local weekly disclosing the lawsuit was placed next to an article about an investigation of missing OPA cash. Hill said the impression given was that he was at fault for the missing cash and that this was somehow connected to his business difficulties. Lawhorn last December, on behalf of FTS, asked for an easement to install fiber optic cable throughout Ocean Pines in partnership with an Internet service provider, ThinkBig Networks. Lawhorn self-identified as an FTS consultant at a meeting of the Ocean Pines Association’s Board of Directors. Hill later said that Lawhorn was a member of FTS Fiber’s board of directors. The OPA board never formally responded to the easement request. It generated controversy among OPA board members, one of whom, Cheryl Jacobs, said it presented an appearance of conflict of interest because of Hill’s association wih FTS Fiber. OPA Director Doug Parks, now OPA president and still chairman of an OPA Information Technology working group, said that community-wide fiber optic would be considered at some point in the future. But the priority since last December has been to provide high speed Internet connectivity to OPA departments, starting with the Ocean Pines Police Department. Hill has encountered some headwinds recently in his business world. ThinkBig Networks recently posted a notice on oceanpinesforum.com that it was severing its business relationship with FTS Fiber as it relates to providing high speed fiber optic broadband services to Ocean Pines. Presumably the end of the relationship would allow both companies to form new partnerships that could submit bids for fiber optic installation whenever Parks’s IT working group formulates a request for proposals and the RFP is approved for release by the board. After winning a bid to provide fiber optic cable and high speed Internet to Queen Anne’s County government, FTS apparently has encountered financing problems and the deal with the county has fallen through. Hill also disclosed that he and the FTS mutually agreed in early August that he would resign as FTS CEO [see separate story for details]. He retains one third ownership interest in the company.

OCEAN PINES

October 2017 Ocean Pines PROGRESS

Hill no longer employed by FTS Fiber Retains one third interest in company he helped found By TOM STAUSS Publisher n a post on oceanpinesforum.com in early October, a representative of Think Big Networks indicated that the firm that it had been partnering with, FTS Fiber, no longer employs the Ocean Pines Association’s former acting general manager, Brett Hill, and that Hill no longer serves on that company’s board of directors. In its post, Think Big confirmed that it is a customer of FTS in Kent County, where Think Big is providing fiber-optic-based Internet services using FTS “dark” fiber. “We have been told that Brett Hill is no longer employed by FTS and is no longer on their Board of Directors,” the post said, adding that Think Big Networks is “not at liberty to discuss our concerns with Brett Hill.”

Having previously posted that Think Big Networks had severed all business partnerships with FTS, the latest post says that Think Big is “not adverse to doing future business with FTS post Brett Hill, but we currently have no business relationship with them outside of Kent County where they serve as our dark fiber provider, and we are not contemplating working with FTS on the Ocean Pines or Captain’s Cove projects.” The post said that while the company does not have a contract with the Ocean Pines Association, it continues to seek “the opportunity to provide the infrastructure and service needed for state of the art connectivity.” The company is the process of signing up at least 350 customers in Captain’s Cove before starting on the laying of cable throughout that

community. Plans now are to start laying cable in the spring. In a telephone interview with the Progress on Nov. 3, Hill confirmed that he was no longer CEO of FTS or serving on its board of directors. He said he and the board of the company, of which he said he still owns one third, made the change roughly two months ago, well before some of the controversies of Hill’s tenure as acting general manager and other matters surfaced. “The company wanted to move in a different direction than I was able to provide,” he said. “I stepped aside so that others could grow the company faster.” Hill said the FTS Fiber board is interested in pursuing an aggressive plan of expansion, but that he as the CEO could not execute it because of commitments related to his other businesses, most of which

are Pennsylvania-based and one of which is in Puerto Rico. He said FTS currently is in negotiations with the government of Sussex County to provide fiber optic to that county, which would be a significant coup if realized. He said and the FTS board agreed that a better approach was to shop around for a new CEO who could commit to the more aggressive expansion plan. He said he wasn’t certain whether FTS would still be interested in bidding on a fiber optic contract for OPA departments and elsewhere in the community whenever the OPA issues a request for proposals. That would require partnering with a Internet service provider other than Think Big Networks. As a practical matter, Hill no longer serving as CEO of FTS and no longer serving as an OPA board member or acting general manager of the OPA could help to remove any lingering conflict of interest concerns should FTS submit a proposal for board consideration.

10 Ocean Pines PROGRESS Country Club From Page1

OCEAN PINES

October 2017

amenity that some residents have called for over the years, he said. Whenever Bailey and the board arrive at a business plan and a revised floor plan for the Country Club’s second floor, a decision will have to be made on whether to bid out the project or to use the Public Works Department, and subcontractors under its supervision, as the general contractor. Former Acting General Manager Brett Hill had more or less abandoned the Public Works option in favor of hiring the contractor that handled the Beach Club renovation this past winter, Willow Construction Co., for the project, at a cost close to $600,000. But the Progress has learned that the Public Works option is not necessarily off the table. Facilities Manager Kevin Layfield and Public Works staff met with local builder Marvin Steen prior to Bailey’s arrival on the scene to informally see if there was a way that the project could be managed by Public

Works, presumably at a cost much less than the Willow Construction option favored by Hill. Steen says he believes the inhouse staff would be able to manage the project. As general manager, Bailey will be the one to decide if the in-house option under the control of the Public Works Department is feasible and whether he will recommend it to the board. Even if that approach is taken, it’s possible that various components of the project would be bid out in the usual way. If the project is not handled inhouse, then the obvious alternative would be to bid it out in its entirety. Some directors, in reaction against Hill’s proposed sole-source contract extension with Willow Construction, have said that conventional bidding is the way to go. It’s possible that directors are unaware that Public Works may be able to handle the project, especially during the winter months when the work load is lighter. Bailey is inheriting a situation with the Country Club that is some-

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what less troublesome than it had been earlier this summer. Placed on a “fire watch” earlier this summer by the Worcester County Fire Marshal because the upstairs sprinkler fire suppression system had been prematurely removed, the building recently had that somewhat embarrassing status revoked after a sprinkler system was reinstalled by Surefire, a Salisbury area company, and then certified as operational by the fire marshal. The fire watch was removed in late August, meaning that the OPA’s Public Works Department no longer has to keep a staff member in the building when it is in use. That extra staffing cost the OPA up to $500 per day in expense, according to Hill. The first floor of the Country Club is home to the golf pro, men’s and women’s locker rooms, and the Tern Grille bar and restaurant. In another recent development, the local engineering firm, George, Miles and Buhr, completed new engineering plans for the second floor. Hill said the plans, made available to him in late August, have

some problems and will have to be reworked. Bailey agrees. The plans omit an outside handicap stairwell, Hill said, adding that he has not asked the company to rework them, in light of Parks deciding to put the project on hold pending Bailey’s arrival and recommendations on how best to proceed. The floor plan for the second floor in the new set of plans differs in some key respects from what the board approved in concept last fall and winter. Hill said GMB had to redesign the floor plan to coincide with existing roof lines, and that resulted in a reconfiguration of the upstairs dining area into an L-shaped design and the relocation of the board’s meeting room. A comparison of the floor plan approved by the board last winter and the new set bears that out. Neither the old board nor the new one has approved this new floor plan by GMB. Agreeing on a revised floor plan remains a core issue that the directors will need to resolve.

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Worcester County Bureau of Investigation probes missing funds; board won’t provide details on advice of OPA legal counsel Hill says conditions that led to latest investigation were much more serious than what he uncovered last year prior to a mass firing of employees at the Yacht Club around New Year’s By TOM STAUSS Publisher um’s the word on an investigation of missing cash that was serious enough that Ocean Pines Association officials felt compelled to call in the Worcester County Bureau of Investigation to do what it does – investigate – the very first week of new General Manager John Bailey’s tenure as chief executive officer of the Ocean Pines Association. At a board orientation meeting Sept. 22, OPA President Doug Parks made it very clear that, on the basis of legal advice offered by OPA legal counsel Jeremy Tucker, no OPA official would be offering comment on the status of the investigation or its

conclusions until there are some. What’s known, or at least rumored about the incident, is that there was roughly a $40,000 discrepancy between the amount of cash delivered to or counted by the OPA’s finance department in the Administration Building from Yacht Club food and beverage operations in August, and what paper receipts indicated should have been generated at the OPA’s premier food and beverage venue. The discrepancy would tend to be evidence of what’s described in the business as “shrinkage,” the likely result of unscrupulous employees making off with some of the cash. The task of the investigators would seem to be to ferret out the individ-

MARLENE OTT

ual or individuals who may have made those unauthorized withdrawals from cash receipts.

Former OPA Director and Acting General Manager Brett Hill told the Progress last fall that he believed something along those lines was happening and that he could not verify the accuracy of the OPA’s financial reporting with respect to activity at the Yacht Club. It led to a decision to fire almost the entire Yacht Club staff around New Year’s and also to install security cameras in the hopes of capturing someone in the act of stealing. q

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Library project donation

The Republican Women of Worcester County recently presented a check for $300 to Showell Elementary School for the “Paper Back Book Library Project” established by the club. Pictured in the school’s lobby are Principal Diane Shorts, right; Sharon Byerly, RWWC literacy chair, center; and Kate McCabe, Showell media specialist.

12 Ocean Pines PROGRESS

Missing funds From Page 11

There have been no reports of the security cameras succeeding in that objective. Hill said that as he understands the situation that led to calling in the authorities in this latest iteration of shrinkage, it’s “a lot more serious” than what had occurred last fall and in early winter in the runup to the firing of the former food and beverage manager and much of his staff. Hill promoted the facility’s banquet manager, Brian Townsend, to head up food and beverage operations in all of Ocean Pines’ food and beverage amenities, in January. There is no particular reason to believe that authorities are investigating the accuracy of OPA’s financial results as reported in monthly reports. Bailey told the Progress that the Yacht Club’s financial results for August reflected the actual cash on hand counted by the finance department, not what paper receipts indicated should have been collected. But consistent with board policy, he declined to provide any details about what prompted OPA officials to call in the investigators. Hill told the Progress that an account in one local weekly newspaper seemed to suggest that his resignation from the board, shortly after his year as acting general manager expired with the start of a new board term, was linked to the investigation and that he might have been involved in some wrong-doing.

Hill categorically rejected any hint that he was somehow implicated in the missing cash and said the same thing about former Director of Finance John Viola, who announced his resignation at roughly the same time as news of the investigation was made public. As officers of the corporation, “it was my and John’s policy never to touch any cash that made it to the Administration Building,” Hill told the Progress. He credited Viola, with his concurrence, for having initiated what he called a “forensic audit” of financial activity at the Yacht Club that uncovered the missing cash and prompted the OPA to call in the authorities. The audit appears to have been less comprehensive than the multiyear forensic audit of OPA operations that Director Slobodan Trendic called for several months ago, with no support from his colleagues. At the time, OPA Director and Treasurer Pat Supik said that the OPA’s accounting firm was doing a “deep dive” of certain operations and would have some recommendations on improvements to OPA financial management. It isn’t clear whether the “deep dive” alluded to by Supik was the same “forensic audit” of Yacht Club cash management that Hill alluded to. Trendic told the Progress that in light of recent events, the need for a multi-year, forensic audit of all OPA departments is even more apparent than it was when he first introduced the idea earlier this summer.

October 2017 Ocean Pines PROGRESS

Viola says resignation had nothing to do with financial investigation Temporary caretaker role as director of finance was previously undisclosed By TOM STAUSS Publisher ohn Viola resigned as director of finance for the Ocean Pines Association effective on Sept. 22, having served in the position for roughly six months following the abrupt resignation of Mary Bosack. Viola, who had been the former chair and member of the OPA’s Budget and Finance Advisory Committee, took on the position in what seems, in retrospect, to have been a temporary caretaker role. Sharon Davis, who has worked for the OPA since 1978 and most recently as an Accounting Manager, will serve as interim Director of Fi-

nance as the OPA, under the director of new General Manager John Bailey, searches for a replacement. In a recent e-mail to the Progress, Viola said his decision to resign was not related to the announcement by the Worcester County Bureau of Investigation and related police agencies last month that they were investigating missing funds, reportedly funds that had been transferred to the administration building from the Yacht Club. “Regarding my resignation, I refer you to (recently appointed OPA Director) Ted Moroney’s post of September 24th on the OPA Forum, which explains that my decision

was personal and based on family considerations. My resignation had nothing to do with the current investigation,” Viola said. Moroney, who said he was speaking for himself and not the board, explained that “when the first batch of resumes were received by OPA [last year] to fill [Controller] Art Carmine’s position, there was concern the quality was not up to par. At least one board member reached out to John to ask if we couldn’t find anyone, would he consider stepping in.” According to Moroney, Viola “said as a last resort he would and submitted his resume.

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“He received a call back, indicated he was only a last resort backup and was never contacted regarding the position again. His role , if needed, was always to be a temporary stop-gap,” according to Moroney. When Bosack unexpectedly resigned as director of finance after some significant disagreements with former Acting General Manager Brett Hill, “John was asked to fill in,” Moroney said. “It was communicated and understood, despite OPA’s press release, that he was filling the position on a temporary basis, was not handling any HR issues, and that OPA would seek a permanent person for the position,” Moroney added. Viola actually served in the role without compensation for a short while, Moroney said, strictly as a volunteer, until it was required as a condition for insurance coverage “that he go on the payroll as an employee.” This temporary, volunteer role was not disclosed at the time by Hill, who made the decision to hire q

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County Commissioners Jim Bunting (third from left) and Chip Bertino (second from left), and presenter Kelly Brinkley (left), county volunteer services manager, attended the Kiwanis Club meeting on Sept. 13 to present the “Volunteer Team” Spirit Award 2017 to Kiwanians Mike and Mary Evans, who are also members of Star Charities. Kiwanis Club President Barbara Peletier is pictured on the far right.

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From Page 13 Viola. Hill did say that Carmine, who had been hired as a consultant to aid in the transition to Bosack as she learned the job, would continue in the same “transitional” role under Viola. Hill also made no public disclosure that the OPA would seek a “permanent person” to replace Viola in due course. Carmine apparently continues in a consulting role with Davis in the acting role. Moroney said that “as time went on” and no permanent replacement to Bosack was “forthcoming,” Viola’s family “urged him to leave the job in August. “He was asked to stay until a new GM came and agreed to do so while Art Carmine trained a member of the Finance Department to handle the monthly reporting. “With the new GM in place, training in the 85% plus range, and Art Carmine continuing to bring them up to speed, John decided that the time was right to leave,” Moroney said. The newest OPA director said that OPA’s antiquated financial software “needs to be upgraded but did not play a part in his leaving. “To recap he did not seek the job, he was always a temporary solution, he did not leave us hanging in the wind, and I hope he will bring his experience, inside operational knowledge, and his understanding of OPA finances back to the Budget and Finance Committee,” Moroney concluded. OPA Assistant Treasurer Gene Ringsdorf posted a message on the forum site that confirmed Moroney’s account of Viola’s brief tenure as finance director. “John told me essentially the same thing last Thursday when I talked to him,” Ringsdorf said. “He emphasized to me that if he had to point to a ‘mistake’ on his part, it was his not taking the time to read the draft press release about his hiring carefully enough.” Ringsdorf said that after the press release was posted Viola was disappointed that it did not “accurately reflect the ‘temporary’ nature of his employment on which he had accepted his hiring.” At the September meeting of the OPA Board of Directors, the directors authorized Bailey to immediately begin a search for a replacement for Viola.

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October 2017 Ocean Pines PROGRESS

By TOM STAUSS Publisher t’s not certain whether a working group that last met in mid-September to discuss a new capital improvement plan for Ocean Pines will be able to complete its work in time to influence the crafting of the 2017-18 Ocean Pines Association budget now in its early drafting phase. Under the chairmanship of former OPA Director Dave Stevens, the working group has been toiling for almost a year to draft a new CIP. What appears more likely to be accomplished is the updating of the OPA’s inaccurate asset list, along with the forwarding of some recommendations to the Board of Directors by the working group. It’s still possible that some version of a draft CIP will slip in under the wire to influence decisions to be made by the board with respect to the appropriate level of funding for OPA reserve funds next year. The working group includes Stevens, Budget and Finance Advisory Committee Chairman John O’Connor, newly appointed OPA Director Ted Moroney, OPA Directors Tom Herrick and Pat Supik, and former OPA Director Marty Clarke.

Working group uncertain of completing new OPA capital improvement plan

The group met with Doug Green, managing partner of DMA Associates, on Sept. 15 to discuss ongoing efforts to update DMA’s reserve study as presented by the consulting firm last year. The working group has said the reserve study includes an asset list that is largely outdated. It wants the study scrubbed of inaccurate information and updated with new assets that have been have added to the OPA’s inventory list this past year. A final step would be to identify projects that need funding in future years, beginning in 2017-18. It’s that step which would provide the crux of a new CIP, and it’s that step which may be out of reach for completion before a new budget is presented for review by the board this coming January. The working group did agree on several recommendations which they believe could be helpful, however. Members want to increase the OPA’s capitalization amount

from $1,000 to $2,000, a step that would eliminate a lot of lower cost items from the asset list. Green said his firm would adjust the list to reflect this new policy. The board at its monthly meeting in September actually agreed to increase this amount to $5,000 on the advice of its auditing firm. That in turn would reduce the number of assets that are considered depreciable, as well as the assessment dollars needed to fund the depreciation related to those assets. Items costing less than $5,000 would be treated as operating expenses in next year’s budget if the board agrees. The working group also wants to eliminate the so-called legacy or five-year-plan reserve in next year’s capital budget, a goal more or less accomplished in the current year’s budget. The legacy component no longer appears in monthly reserve summaries, but much of the funding stream associated with it – about

$700,000 – remains, co-mingled with funded depreciation for reporting purposes. Roughly $1.6 million is collected in assessment dollars in funded depreciation, with an additional $700,000 or so in supplemental or five-year-plan or, as it’s currently called, the Legacy reserve fund revenue. That adds up to about $2.33 million collected in assessment dollars that was allocated to the Major Maintenance and Replacement Reserve this past May 1, the beginning of the 2017-18 fiscal year. It’s the supplemental $700,000 or so that the working group appears determined to cut, though by how much is unclear. Some panel members want to eliminate the supplemental or Legacy funding entirely. The board’s current preference for renovation over new capital projects to replace old buildings “makes a huge difference on what our reserve needs are,” Stevens said during the meeting. But whether $1.6 million in newly funded depreciation would be enough to finance the OPA’s capital projects next year is a question that has not been answered. A completed capital improvement plan was supposed to help answer it.

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By TOM STAUSS Publisher ith one director ready to do away with the Ocean Pines Association’s realoceanpinesforum message board and another in support of preserving and improving it, OPA President Doug Parks has struck a compromise and is giving General Manager John Bailey 60 days to come up with a recommendation on what to do with it. Unveiled during the previous presidency of Director Tom Herrick and by former Acting General Manager Brett Hill, realoceanpinesforum was designed as a site where OPA members could go to find official answers to their questions. During a board orientation meeting Sept. 22, Herrick was the director who seemed most favorably disposed to preserving the site. He suggested that the OPA do “a bit better” in promoting it so more members would use it for its intended purpose. When Parks opened a discussion about the OPA’s official message board, Director Slobodan Trendic told his colleagues that they should

By TOM STAUSS Publisher aking a good first impression is something that’s important to new General Manager John Bailey. He seems to have done that. At the Board of Directors Jan. 29 monthly meeting, Director Cheryl Jacobs commended Bailey for checking in with all of the diners at the Yacht Club on a recent evening in September, in an effort to obtain first-hand information about the likes and dislikes of patrons. Bailey’s effort to listen to customer input while table-hopping seems to have gone over well, Jacobs said. In remarks delivered to an introductory social gathering in early September, on his first official day on the job, Bailey said he “really wanted” the job awarded to him by the Board of Directors after an extensive search and vetting process and intends to stay in Ocean Pines for 15 years, until retirement. A good first impression would seem to be a necessary predicate for such a lengthy tenure, which would make him the longest-surviving general manager in the history of Ocean Pines. The current record holder is Tim Stoner, who made it 13 years in the 1980s and early 1990s. The desire to create a positive

OCEAN PINES

October 2017

Bailey tasked with recommending fate of OPA’s message board Herrick, Trendic differ on whether realoceanpinesforum.com is worth preserving “do away with it.” He said there’s little indication that members are visiting the site and the privately owned oceanpinesforum.com fulfills the function intended by the OPA’s message board. After Herrick reminded the board of the message board’s original purpose, he asked Bailey his impression so far of how well it fulfills that purpose. Bailey’s take was that “regular communication” such as press releases, e-mail blasts, or personal e-mail is the way that most OPA members get answers to their questions. “It rarely gets used,” he said of realoceanpinesforum. “We should either promote it or let it go by the wayside.”

He said he and his staff could “do some data digging” to determine the actual number of posts by those seeking answers to questions compared to the number of posts uploaded to the site by OPA staff. He said staff posts are generally disseminated to the membership by other means. Herrick said the advantage of the message board is that information that might be disseminated only to someone asking a question gets posted online and thereby is available to more people. “It’s an answer that other people might see,” he said. At that point in the discussion, Parks suggested that Bailey get back to the board in 60 to 90 days

New GM wants to improve appearance of main gate entrances into Ocean Pines Suggests all employees should consider themselves part of the custodial staff first impression carries over to one of Bailey’s early initiatives. At a Board of Directors orientation meeting Sept. 22, he suggested that Ocean Pines needs to make a good first impression by upgrading the three main entrances – the gates as he called them – into Ocean Pines. “All three gates should look good,” he said, implying that perhaps all three could use some TLC. He was referring to the North Gate bridge, which almost everyone agrees could use some sprucing up (even several gallons of paint would make a big a difference); the South Gate entrance (Manklin Creek Road), and Cathell Road Extended. More broadly, Bailey said that every Ocean Pines Association employee should consider himself or herself a member of the custodial staff. “All should do it, not just the Public Works staff,” he said.

The new general manager said that that he has heard from some residents about the overall appearance of the Ocean Pines community. While he didn’t mention it, there is a problem – not widespread, but still noticeable – with abandoned homes in a state of decrepitude. Bailey posed what he called a rhetorical question – Is Ocean Pines “proactive or reactive with respect to compliance areas? He suggested that if the OPA wants to shift to a more aggressive or proactive approach to enforcement issues, then it probably will be necessary to add more staff to the Department of Compliance, Permits and Inspections. Other communities where he has worked have had much “larger staffs” to handle enforcement, Bailey said. He did not say whether he will recommend a larger staff in the 2018-19 budget that is in its prelim-

with a formal recommendation. Bailey, whose management experience before coming to Ocean Pines was concentrated in Virginia, said the commonwealth’s homeowner association law requires “member to member” communication on HOA Web sites. He said he wanted to check into whether there is a similar requirement in Maryland. The OPA message board does not currently allow for direct member-to-member communication unfiltered through the OPA. Parks suggested that Bailey, in developing his recommendation to the board on the fate of realoceanpinesforum, should consult with the OPA’s Communications Advisory Committee . The committee was not asked to comment on the message board before Hill introduced it earlier this year, having previously expressed reservations about the idea when former General Manager Bob Thompson had considered the idea. When Herrick suggested that better promotion might generate more interest in it, Parks again urged Bailey to have a recommendation to the board in about 60 days. inary information-gathering phase. In other observations at the Sept. 22 orientation meeting, Bailey • Noted that the last event at the Ocean Pines Beach Club featuring live entertainment was scheduled for Oct. 8, seeming to suggest that an over-abundance of live entertainment at this amenity might be a factor in its “problems with finances” this summer. The Beach Club food and beverage operation traditionally has been a cash cow for the OPA. This year, even though it made money in August, it was insufficient to offset losses in the first quarter (May, June and July). • Suggested that he may propose moving management of the Tern Grille at the Country Club from supervision under the Yacht Club, where it has been part of a centralized purchasing and management system introduced by former acting general Brett Hill, back to the director of golf, John Malinowski. The Tern Grille is just one of several Ocean Pines food and beverage venues where there have been supply issues since the centralized ordering system was put in place. • Noted drainage problems on holes 10 and 11 that were flooded during much of a very rainy August. He mentioned that holes 13 through To Page 18

October 2017 Ocean Pines PROGRESS

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OPA considers OPPD connection to county’s dispatch system Herrick expresses opposition to ‘piecemeal’ approach By TOM STAUSS Publisher he Board of Directors will soon consider whether to authorize Mediacom, Ocean Pines’ primary cable television and high speed Internet provider, to install some new fiber optic cable that will allow the Ocean Pines Police Department to have a secure, highspeed link to the county’s emergency dispatch system based in Snow Hill. Ocean Pines Association President Doug Parks had initially planned to discuss the matter at the board’s Sept. 29 regular monthly meeting, but it didn’t make the agenda. He told the Progress that the OPA’s legal counsel, Jeremy Tucker, is reviewing a draft contract and that a vote to award the work

Main gate From Page 16

18, in addition to holes 8, 9 and 11, have not been upgraded with new drainage. The drainage improvement program has been in hiatus for quite some time, with only half of the golf course done to date. He did not indicate whether his capital budget for next year would propose a resumption of the program. • Disclosed that he was considering adding a new event called “Mid-summers Night” in which 45-minute or so live programs would be scheduled every hour at

to Mediacom could be held by the board at its regular monthly meeting in October. While an affirmative vote to award the work to Mediacom seems likely, Director Tom Herrick is just as likely to be a dissenter. He will be given an opportunity to make his case at the October board meeting or whenever the matter is put on the agenda for board consideration. Parks recently said that Mediacom, using an existing terminal outside the OPA’s Administration Building in White Horse Park, can easily run high speed fiber cable from the terminal box to the Ocean Pines police station. Mediacom already has fiber running from the Administration Building out to and along Ocean Parkway, where it conevery Ocean Pines amenity. Residents could fit in as many visits to as many amenities as their day allows. • Observed that a part of the problem with operating deficits at the Yacht and Beach clubs so far this fiscal year is that the budget was far too aggressive in projecting revenues. “I’ve seen that before (at other HOAs that he has managed),” he said. “You don’t have conservative revenue forecasts, and what you end up with is what we’ve got.” He was referring to significant negative variances to budget at the Yacht and Beach clubs through August.

nects to a high-speed fiber line that runs along Route 589 and Route 113 and points south, including Snow Hill. Mediacom apparently would be able to make use of fiber technology that isolates official or government traffic from less secure traffic generated by residential customers, without having to lay new cable. He said Mediacom has agreed to install the new fiber optic cable at no installation charge to the OPA. The dedicated, secure line would cost the OPA roughly $200 per month more in service charges, he said. Parks said he would not regard the project to be the result of a “sole source” contract but rather an addition of service to an existing contract, rather like a Mediacom customer adding programming or opting for faster Internet. He said that no company other than Mediacom could offer the service without having to lay a lot of new fiber optic cable throughout Ocean Pines. He also said the monthly service cost to the OPA is nominal. There have rumors to the effect that the board effectively agreed to the Mediacom OPPD connection via an e-mail exchange, but Parks said that was not the case. Directors, Herrick included, were informed that Tucker was reviewing contract language that would allow Mediacom to implement the OPPD project. “There was never any email exchange that suggested the issue

would be dealt with via e-mail,” Parks said, referring to a procedure in which the directors must vote unanimously to resolve an issue that way. “This issue will be presented, discussed and voted on in an open meeting as would all other Association business. It is possible that the issue will be on the October meeting agenda but there is no guarantee.” If the project is awarded to Mediacom, Parks declined to say when he thought the work would be done. “With regard to timing, no decision has been made, as there are a number of factors that would influence the implementation time-line should the board decide to move forward with this initiative,” he said. One such factor could be a timeline on when an expansion of the existing OPPD station in the OPA’s Administration Building will occur. No construction timetable for that project has been determined. In a recent telephone interview, former OPA Director and General Manager Brett Hill took issue with the direction the board may be headed with respect to the OPPD connection. Hill’s company, FTS Fiber, about a year ago had offered connectivity to the emergency dispatchers in Snow Hill for no charge, as part of a deal in which the company would have been granted an easement to lay fiber optic cable throughout Ocean Pines. “I was going to do it (connectivity to emergency distpatchers for the OPPD) all for nothing, no installation charge and no monthly fee,” he said. “For all the hype of certain directors about transparency and avoiding sole source contracting, it is rather ironic that they go right 

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Dispatch system From Page 18 out and decide this in e-mail and sole source. And it isn’t free to the OPA.” Herrick in recent e-mail to the Progress said he doesn’t agree with the probable decision of his board colleagues to award the work to Mediacom. He said he was expecting a board debate of the issue at its Sept. 29 regular monthly meeting and was disappointed when it did not happen. Citing requests for proposals drafted earlier this year, Herrick said “it was the clear intent of the prior Board of Directors to include connectivity to our Police Headquarters as part and parcel to the entire project for bid. … If the Police Department piece is a ‘done deal’ without an open Board discussion on how this could have possibly occurred, that’s concerning.” As it turns out, it isn’t a done deal, although Mediacom is closer than any other company in obtaining this slice of the pie. Herrick said he is firm in his belief “that by negotiating all aspects

October 2017 Ocean Pines PROGRESS of this project together, including the installation of a main dark fiber that may be utilized by other vendors for competition (no exclusive easement), will provide the best and transparent bargaining position for our membership. That was the clear intent of the prior Board of Directors, the RFI and the draft RFP.” Herrick said that in October of 2016, the Board of Directors began receiving information in regard to providing fiber optic connectivity to the police station. “The discussion led to consideration of an extensive fiber optic infrastructure project for our entire community, which included connecting all of our various departments, and the possibility of extending future service to our homeowners providing them an opportunity for choice,” he said. Herrick said that FTS Fiber, a company in which Hill is one third owner and, at the time, chief executive officer, offered a proposal to lay a dark fiber optic cable from Route 589 to the administration building, connecting the police department to the emergency dispatchers in Snow Hill at no cost to the OPA. “The company did not require an

exclusive easement providing that we committed, to them, the larger, more costly portion of the project, connecting all of our various departments to the fiber. Additionally, the dark fiber would be available to other providers if they wished to lease the fiber and provide high speed Internet service to our homeowners providing a competitive environment for this service. No exact details or costs were revealed at this time but the possibilities were intriguing,” Herrick wrote. Herrick said the board tasked the newly formed Technology Working Group to assist in determining the proper course of action for this project. “The goal was that we would meet the requirement of ascertaining at least three vendors in the bidding process to provide a cost comparison for the entire project. I personally am a proponent of competition and offering different options for our association members from which to choose,” he said. Herrick pointed out that the vice-president of the Maryland Broadband Co-operative recommended that the OPA issue an RFP (request for proposals) to competing

companies to offer these services, as was done in Kent and Queen Anne’s County. “Upon board approval, an RFI (request for information) was issued, as a precursor to the RFP, and four companies responded. Subsequently, an RFP was drafted with the intent for release to these four companies by July 5,” he wrote. “The project seemed to be following the proper and scripted course of action.” But then the process hit a snag. “Suddenly, shortly thereafter, the activity of the Tech Working Group was unilaterally suspended and the issuance of the RFP was never sent. I was recently notified that a contract has been drawn up to offer the initial step of this project to one of the companies, Mediacom, without soliciting any other offers for consideration or understanding the ramifications this action may have on the entire project,” Herrick said. He said he might not be opposed “to eventually offering the contract to Mediacom, if their proposal is in the best interest of the association, but I see no harm in waiting to receive and analyze the responses of

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By TOM STAUSS Publisher he Golf Advisory Committee, reinstated in March of this year after a seven-year hiatus, will be compiling a number of recommendations to the Board of Directors in its annual report, committee chair Bob Kessler has confirmed. Among the recommendations is a return to a May 1 to April 30 membership year. The list of recommendations surfaced during monthly committee meetings and are detailed in committee meeting minutes that are

Dispatch system From Page 19

all four of the interested companies that responded to our RFI before we make that decision on a project of this magnitude.” He said that “Mediacom already has a virtual monopoly on our association, and we have no negotiation strength on any contract without a competitive bidding process. I believe that negotiating all aspects of this project together as one package,

Golf advisory committee recommends reinstatement of fiscal year memberships Suggests pro-rated dues for those who join after May 1 published on the Ocean Pines Association’s Web site. At the committee’s August meeting, members suggested better use of the OPA’s marketing department to improve communication with OPA members, many of whom seem to be unaware of golf opportunities,

according to the minutes. Since that suggestion was made, the marketing department has placed advertising in local media to promote golf, including fall rates starting at $35 per round. The committee during its August meeting noted faulty drainage on

including the initial installation of the dark fiber cable with connectivity to our police station, will provide the best bargaining position for the association. That was the original consideration by the previous Board, the intent of the RFI, and the drafted version of the RFP.” Parks recently said in an e-mail to the Progress that he wanted the new general manager, John Bailey, to review the RFP for fiber optic throughout Ocean Pines before bringing it to the board for a vote and release to

contractors. Previously, he had indicated that the technology working group temporarily suspended its activities because members didn’t like that Hill, in his role as the former acting general manager, had unilaterally chosen a new back office accounting system for the OPA without first discussing it with the technology group. Parks said the technology working group is now back in business. The decision to purchase new accounting software is on hold.

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half the holes on the golf course – two on the front nine and seven on the back nine -- which have not been rebuilt. The committee supports interim plans to install drains to carry water from the rough where water pools under carts paths to the ditches that border the holes. Ultimately, however, Kessler told the Progress recently that the answer to drainage woes is to revamp all nine holes that have not yet been retrofitted with modern drainage solutions. The committee in August continued to note what it regards as unsatisfactory conditions in the bathrooms that serve the golf course. The committee is recommending the development of a schedule of required maintenance, to be posted for signoff in rest room facilities. The committee suggests course marshals check bathrooms conditions daily. In May, the committee agreed to recommend the reinstatement of fiscal year memberships that run from May 1 to the following April 30, coinciding with the OPA fiscal year. For those joining after May 1, the committee is suggesting a pro-rated

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axe fell as soon as it did. The new board reorganized itself with an election of offices2017 in a meeting H October Ocean Aug. Pines22. PROGRESS 21 tors who voted for it, Jack Collins, was ill’s motion to go into closed session defeated in his election bid this summer, drawing boards in various iterations on Aug. 26 after the open session made with his contract extension vote a possi- for more than ten years. no mention of possible termination. Literally years were consumed in ble contributing factor. Trendic told the Progress several Also voting for the extension was obtaining state Critical Area Comdays after the decision to terminate was Dave Stevens, who wasn’t on the ballot mission approvals. Less than robust made that “absolutely” there was no inthis year but isn’t known as a Thompson market conditions have also contribtention or expectation by the board mafan. Both Collins Stevens explained addressed,” Ritaand C. Campbell, a per- jority uted to rolling Stevens out developof delays Herrick,inTrendic, and their votes as plan the best deal possible for ment of the new Ocean Pines resimitting and review specialist Hill that Thompson’s contract would be the OPA given that, time,tothere with the county, saidatinthe e-mail the terminated dential section. in the closed session Aug. 26. was a solid majority of pro-Thompson diProgress. Theand development consists of an 30 He other directors declined rectors could have renegotiated the two-family lots that, at full buildThe who development, located at the email invitation by the Progress to discontract toterminus make it even more lucrative southern of King Richard cuss why theinto decision to terout, how will and translate 60 housing for Thompson. Road in Ocean Pines’ Sherwood For- minate the contract occurred, citing units. Steen intends to build the 30 Stevens was participating in the dentiality closed est section (Section 10) and north confi duplexes on of each of meetings. the lots. Each meeting via telephone, and said later of Gum Point Road, is called Tri- duplex unit release will beannouncing roughly 2500 The press the he might have voted differently had he ple been square said feet,only plusthat a garage, attached the contract was beenCrown at the Estates. person toIt’s hash out on the the de- decision to another unit of the same size. made for convenience, meaning that the tails of a renegotiation. creased about $60,000 from 2012Steen plans build duplexes majority was to not alleging any sort Elections have consequences, and board 2016 previous years, aswrong-doing they are sold to homeowners, as on Thompson’s part that with over the election of Hill andaccording Slobodan of to the committee minutes March. would opposed to justifi building all at for one have ed a them termination Trendic it was apparent thatin Thompson was majority due to of a food time. no“This longersuccess had a solid sup- cause. and beverage operation that was The for convenience Sometermination of the infrastructure is alporters on the board. focused on there the needs of the golfing means that Thompson will a generIndeed, was an expectation ready in place. Several reap years ago, a severance force package, including salary community with menus for ous in the community that, atdesigned some point, wastewater main was extendbenefi ts for nine months, although Thompson’s contract wouldWe be and quick response and probably high quality. ed from the Ocean Downs Racetrack he complex no longer on will Route be eligible terminated bythe thesynergies new board.possible In pub- apparently understand and casino 589 any bonuses. lished accounts, said for by grouping allThompson F & B himself operations under Turville Creek and through months of salary worksitoutthen to he wasone expecting to movenotin a theNine under roof,” the theboard committee Steen property, where for work that need not be pernew“However, direction. the downside is the $123,750 ed. ran under King Richard Road to an Thompson served yearsadded as generpotential to lose thesixvalue to formed. existing wastewater force main on The veil over deliberations in closed al manager, and that’s well within the the the golfing experience by having Ocean Parkway in Ocean Pines. average time of service for managers of Tern Grille under absentee manageKing Richard Road residents, ment.” To Page 24

Stevens motion passes 4-3, over Jacobs’ ‘emotional’ objections; Brett Hill named acting GM

By TOM STAUSS eveloper Marvin Steen’s 60Publisher unit planned closed residential meeting that began with community that eventually the intended purpose of reviewing will become a new sectionBob of Ocean General Manager ThompPines close to receiving final son’sisemployment contract,its including county what approvals. one director described as “disturbThefactors” Worcester County Techniing involving a $30,900 bonus calfor Review Committee, made upfinanof better-than-budgeted amenity cial performance, with a highcounty permittingended andupregulatory ly contentious 4-3 vote toaterminate the staff, will be conducting final plat contract and Thompson’s employment and construction plan review on with the Ocean Association. Wednesday, Oct.Pines 11, during its regDirector Brett Hill ular monthly meeting. was chosen by the board majority to serve as interim Construction plans in Worcester or acting general manager County are approved at the pending Techni- a search for a replacement. cal Review Committee level. It does At a special meeting of the Board of Directors Aug. 26, the directors voted 5-2, with directors Pat Renaud and Golf membership Cheryl dissenting, to go into From Page Jacobs 21 closed session to discuss Thompson’s dues structure. contract, which had been extended for A fiscal year membership would three years on April 28. replace the current system in which Undisclosed at the time the contract anyone can was join made the golf clubwas at aany extension public protime during the year, with the expivision that allows the “new board” – in ration date the a year later. this case, board that had three new In March, the committee voted members as a result of this summer’s to OPA recommend return of Ternexelection – the to revisit the contract Grille management to the director tension, whether to renegotiate it or terof golf. It’sit,been operating the minate or keep it in forceunder as written. supervision of thespecifi YachtedClub’s food31 The contract an Aug. deadline for making a decision on the and beverage manager, with unsatisfactory results, according to com-

three options. Newly elected director Brett Hill, who offered the motion to go into closed session, in prepared remarks explaining his motion said that five board members recently had discovered “many disturbing factors surrounding the handling of the GMneed bonusto(for 2015-15 fiscal planyear),” not go the to the county’s as well as “adjustments already made to ning commission when the final plat this year’s budget related to the bonus is in conformance with the approved clauses” thatplat. would have made it much preliminary easier for Thompson to earn a bonus re“In this case, the layout is exlated to amenity performance this year. actly the same (as the preliminary Hill in his explanation said that the plat). Therefore, the final plat can board “has an obligation to discuss a bemore approved the Department (of objectivebymeasure of bonus calcuDevelopment Review and Permitlation, so a notification of a (reopened) ting) after any TRC comments contract negotiation would be in the are best

Steen duplex project close to final county approval

interest of all parties to avoid further ismittee sues inmembers. future years.” The Tern Grille had the been run by A decision to revisit contract by golf course management for the prethe Aug. 31 deadline would have opened vious six years, initially under Billy a two-month window for the board and Casper Golf and then Landscapes Thompson to renegotiate, something Unlimited. Whenprobably the golf course that Thompson would have returned in-house management welcomed.toBack in April, he offered to drop amenity-based bonus incentives earlier this year, supervision of thein exchange a more predictable incenTern Grillefor operation was shifted to tiveYacht package, but food the board the time the Club’s and at beverage voted 6-1Almost to extend the contract there for anmanager. immediately otherreports three years without change. were of food and beverage New shortages anointed OPA Presidentfrom Tom supply resulting Herrick was the only director to vote centralized deliveries to the Yacht against the extension. One of the direcClub by vendors. Revenues (at the Tern Grille) in-

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October 2017

October 2017 Ocean Pines PROGRESS

24 Ocean Pines PROGRESS

By TOM STAUSS Publisher hile the newly reorganized Board of Directors and newly anointed General Manager John Bailey seem to have ushered in a new era of collegiality – or at least what newly elected President Doug Parks calls an era of “no surprises’ – some of the resentments from the previous board continue to fester. The recent resignation of Director Brett Hill from the board after a tumultuous year as acting general manager has removed one source of board dysfunction. But Hill’s primary ally on the board last term, Tom Herrick, remains on the board, and it appears that he and Director Slobodan Trendic continue to have a contentious relationship. Parks recently called the disagreements between the two “irreconcilable,” at the same time expressing the hope that the two antagonists will be able to find some common ground going forward. The continuing feud between the two directors does not involve an issue currently up for board consideration, and thus could be seen as essentially a side show that will probably decline in relevancy as time passes. The dispute has to do with Herrick and Hill’s efforts in the last board term to have Trendic removed from the board. The effort failed, in part because Parks declined to attend any meeting in which the pos-

BOARD OF DIRECTORS

October 2017

Herrick, Trendic feud continues to fester OPA president calls contentious relationship between two directors ‘irreconcilable’ but hopes they can move forward for the betterment of Ocean Pines sibility of Trendic’s removal – five votes of the board is required for removal – was to be considered. Removing Trendic from the board is no longer a possibility. One director who was considered a possible or likely vote for removal, Dave Stevens, is no longer on the board, having decided not to run for re-election in this summer’s board election. He was replaced by Colette Horn, who ran with the tacit support of Trendic. With the exception of Herrick, there is no one currently serving on the board who would be an obvious supporter of a continued effort to remove Trendic. In a letter submitted to the Progress last month for inclusion in the October edition, Herrick said he was responding to an article in the September edition headlined “Trendic Disputes Herrick Version of Beach Club Bartender Incident”. Herrick said that Trendic’s reported comments continue “to disrupt and create a poisonous environment within the Board. “His most recent public comments attacking my personal integrity has,

unfortunately, now compelled me to defend myself and my honor. It is remarkable that these allegations, against me, come from someone whose own integrity issues of the past are suspect and have been well documented and of public knowledge. I certainly did not make up the allegations of his contact with our Beach Club personnel. “This information came from an incident report relayed from staff personnel who, at the time of the incident, did not even know who Director Trendic was. Based on his prior conduct and consistent with this type of repeated action, I have severe doubts that our staff personnel falsely reported the incident as it happened, as he alleged in the Progress newspaper. For him to bring up this particular incident, yet again, does not even reflect on the true issue at hand. “This incident happened after the Board met to discuss his continued transgressions and as a result of that meeting, he promised these type of actions would not continue. This particular incident, and others that followed, only proved to illus-

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trate his intention to continue down this destructive path. His personal onslaught against me, is possibly because, as President, I felt obligated to call the meeting for a hearing regarding his possible removal from the Board. “This decision was not personally motivated, but based on the feedback I received from other Board members. The truth is my actions were precipitated by a motion submitted by a Director for his removal, and the commitment I received from five Directors agreeing it would be in the best interest of our association to do so. “One of these Directors (Parks) subsequently refused to participate due to ramifications such action may have on the election results, and the matter was postponed,” Herrick said. In fact, Stevens, Herrick’s successor as president for about two weeks, tried unsuccessfully to convene special meetings to consider taking action against Trendic. The matter was simply left unresolved. “What is most upsetting to me is that the hope for this ‘new’ Board to move forward in a positive manner, for the betterment of the community, has again been dispelled by these continuing public and personal attacks by Mr. Trendic against one of To Page 26

Steen project From Page 21

coping during several months of difficult driving conditions, were rewarded with a new resurfaced road that was an upgrade from the original tar and chip street. King Richard Road will be the only regular access road into Triple Crown Estates. An existing dirt road that runs to the property from Route 589 will be accessible for emergencies only. Once the property receives final plat approval, Steen will be free to begin installing an extension of King Richard Road to serve his subdivision. Water, electric, and fiber optic Internet, purportedly through an agreement with ThinkBig Networks, will be installed as part of the project. In an agreement that dates back to the early 2000s, Steen has agreed to have his property effectively annexed into Ocean Pines. Buyers of the duplex units would be fullfledged members of the Ocean Pines Association.

October 2017 Ocean Pines PROGRESS

26 Ocean Pines PROGRESS

BOARD OF DIRECTORS

October 2017

Governors’ Cup winners

The Ocean Pines Ladies’ Golf Association held its Governors’ Cup championship Sept. 12, at the Ocean Pines Golf Club. The winner of this year’s net-score tournament was Deb Schwertner (far left). Other flight winners included Diana Earhart, Light Henderson, Susan Morris, Frankie Gomsak and Joan Sarisky. Ocean Pines Director of Golf John Malinowski (second from left) presented awards to the winners at a luncheon following the event. Pictured with Malinowki and Schwertner are flight winners Earhart, Henderson, Morris, Gomsak and Sarisky.

Feud festers From Page 24 his fellow Board members,” Herrick concluded. “Here we are, another Board of Directors in Ocean Pines, once again, filled with disharmony. I have doubt it will ever change.” Provided with a copy of Herrick’s remarks, Trendic initially seemed disinterested in keeping the controversy going. He said that if the Progress felt duty-bound to publish Herrick’s latest comments, he would probably feel compelled to respond at a later time in a letter.

Trendic continued to insist that the incident as reported by Herrick, that Trendic had been abusive toward Beach Club employees and had been ordered to leave, absolutely did not occur. He said he and his wife went to the Beach Club a few days after a neighbor complained he had been treated with disrespect by an “Irish bartender” who had refused to give his neighbor a 20 percent discount. The bartender allegedly used an expletive in refusing the discount, Trendic said. He said and his wife went to the

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Beach Club simply to check out whether the 20 percent discount policy was still in place, not to confront any “Irish” bartender, Trendic said. He told the Progress that he and his wife left the Beach Club without incident, later surprised to learn that the “non-event” was used by Herrick and former Director Brett Hill as evidence that he had violated a promise to the old board to refrain from interactions with employees. Trendic said that if the incident occurred as Herrick insists, he (Trendic) would have called the police so details of the encounter would have been on the record. Trendic said he doubts that any such “incident report” as described by Herrick actually exists, but if it does, Herrick ought to be willing to produce it. Trendic speculated that it’s conceivable that Herrick has confused Trendic’s “uneventful” visit to the Beach Club with his wife with the earlier, contentious incident involving his neighbor. Trendic also said if there is any specific incident other than the

Beach Club visit that Herrick can cite as evidence that he broke his word to the old board, Herrick ought to produce it. “None exist,” Trendic said, speculating that it was all “made up” in the hopes that he would be pressured to resign from the board. Herrick declined to comment on Trendic’s assertion that no incident report exists to buttress the claim that he (Trendic) broke his word to the previous board by visiting the Beach Club, or to detail other incidents. “There is no good purpose for this issue to continue to fester. I am not looking to debate or provide information regarding Mr. Trendic’s conduct in a public forum,” Herrick wrote in response to a Progress follow-up. “The proper forum for the release of this information was to be at a scheduled hearing resulting from a motion for his removal from the Board. That hearing did not take place so the proper thing to do, at this time, is move on for the betterment of the association,” he said. “Unfortunately, Mr. Trendic refuses to do so based on his continued public attacks against me,” Herrick added. He described his letter as simply an effort “to defend my integrity against his accusation that I am making up ‘blatantly false statements’ against him. That is a complete lie. That information was provided by staff and was to be presented to the entire Board at the hearing,” Herrick wrote. “Mr. Trendic’s continued course of conduct and false allegations against me, and others, directly led to my decision to resign as President of the association.”

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By TOM STAUSS Publisher n Ocean Pines non-resident property owner, Ted Moroney, was appointed last month to fill the vacancy created by the resignation of Brett Hill, former acting general manager and director. Moroney becomes the latest non-resident owner to join the board. Current OPA President Doug Parks, like Moroney, also resides on the Western Shore and works full-time, with enough flexibility to allow him to attend OPA meetings early and late in the week. Moroney has long been active in OPA affairs, prominently playing a role in the behind-the-scenes efforts to build the new $5 million Yacht Club and a more public role, with former OPA General Manager Bob Thompson, in promoting it. He has been identified with the idea that Ocean Pines has a lot of aging building assets that need replacement, a preference that was largely abandoned last year with the election of a new board that preferred renovation over replacement. That approach governed board thinking at the Country Club, where a renovation of the first floor was completed earlier this year. Second floor renovation has been stalled and currently is in limbo, waiting board action to jumpstart. Moroney said he is on board with the renovation strategy, having no desire to re-litigate previous board decisions. Moroney said he accepted the nomination to fill the second year of Hill’s term because a change in his job circumstances give him greater flexibility to attend board meetings. He said he will make a decision this coming spring on whether to run for a seat in next year’s election. Appointed directors can only serve for the remainder of a single year of an unexpired term. Parks was appointed to fill the final year of former OPA president and director Pat Renaud’s term a year ago. He was the top vote-getter in this summer’ election. Moroney is an active participant on oceanpinesforum.com, where more than 3,000 posts over the years provide insight into his thinking. His posts tend to be well-reasoned and coherent, perhaps helping OPA directors to decide he would be a n excellent addition to the board. His background in commercial contracting could be useful as the board considers options for the Country Club’s second floor and other matters.

October 2017 Ocean Pines PROGRESS

New director opines that bulkhead contract can be renegotiated Moroney says he will respect previous board’s decision to renovate, not replace, Country Club He has made recent posts analyzing and criticizing a contract executed by Hill last October with Hi-Tide Marine Construction for emergency bulkhead repairs. He said the con- Ted Moroney tract “appears to be a standard contractor proposal/ quote and should be subject to review, modification and negotiation by OPA.” OPA counsel Jeremy Tucker told the board at its Sept. 23 orientation meeting that an HOA should never agree to a contractor’s standard proposal/price sheet because it tends to work in favor of the contractor rather than the HOA. Tucker told the Progress after the orientation meeting that he was

not on board as the OPA attorney at the time the contract was drafted and that, accordingly, he had not reviewed it. Moroney’s comments suggests he agrees with Tucker’s views on never accepting a contractor’s standard proposal/price sheet as a contract. “Normally I would say that the rates for installation of $215 and $220 (per linear foot) are all inclusive, but that should have been clarified given the number of hourly rental rates included,” he wrote. “In addition, under the specific scopes (vinyl/timber) the materials are spelled out and we have to assume they are adequate. Phrasing on some contracts OPA has executed in the past included wording OPA added such as ‘all labor, materials, and equipment,’ putting the onus on the type of equipment, the amount of labor and the amount of materials on

the contractor.” He also said that installation prices in the contract should have specified linear feet, or square feet, not just feet. “The intention appears to be to install the new bulkhead in front of the old. There is no mention of cutting the existing bulkhead down below grade and/or the removal of existing caps and tops of piles. Is that included or an extra? In addition, OPA has the expense of any backfill caused by that removal based on the current wording,” Moroney said. He questioned the section of the contract related to damages. “Is Hi-Tide insured? I say that believing they are but there is no mention of Worker’s Compensation, General Liability, Umbrella, or other coverage and there is no indemnity and hold harmless agreements in favor of the association, in particular in the event of negligent acts by the contractor. If a piece of equipment tilts and damages an existing structure who is responsible? What are ‘unnecessary’ damages?” he wanted to know. Moroney also wondered who would be repairing the area damaged or disturbed by emergency repairs. “Including that in the contract q

BOARD OF DIRECTORS

28 Ocean Pines PROGRESS

BOARD OF DIRECTORS

October 2017

Parks wants shorter meetings, asks Bailey to avoid surprises New OPA president wants civility, fewer arguments By TOM STAUSS Publisher n a statement of his expectations as the newly elected president of the Ocean Pines Association, Doug Parks told his Board of Directors colleagues during a Sept. 22 orientation meeting that he wanted them to spend more time governing, and less time arguing, in the coming year. He opened his remarks by telling his board colleagues that he wanted them to act as a team, with civility, but free to disagree without being offended when disagreements occur. That, he said, was the essence of a board that acts professionally. He described the board’s relationship with the new general manager, John Bailey, as a partnership. He described the board’s role as a “balance” between between micro-management and “not communicating directly with the GM for six months.” The latter statement was an allusion to a previous board president and general manager who had a well-known dysfunctional relationship, avoiding contact and even regular meetings. Parks has said

New director From Page 27 would raise the price but put the entire responsibility for a turn key job on them as contractor and prevent OPA from having to be involved with another contractor or self-perform the work,” he wrote. Moroney wanted to know the identity of Hi-Tide’s engineer of record and “what is the thickness of the vinyl? Is it approved by the county and any other governing entity? Do design drawings or revised location drawings need to be prepared and submitted and who is responsible? We know what happens working without the proper approvals (Country Club). Who pays for permits? What color is the vinyl?” Moroney wrote that he saw nothing in the contract that specifies the expected life of the wood and vinyl options and for how a period the contractor guarantees workmanship. “As to what a ‘package proposal’ means I can’t say for certain except

that he and OPA Vice-President Cheryl Jacobs will be meeting with Bailey once a week, on Monday mornings, for what Parks said would be 15 minute sessions in which the genDoug Parks eral manager would discuss two or three items of interest. Parks said his preferred way of implementing the partnership would be for all directors to communicate with Bailey through him (Parks) as president and designated laison to the general manager under the OPA bylaws. He said he saw his role as offering support to Bailey without being domineering. Jacobs offered some mild pushback to Parks’s comments, calling them “good” but that any partnership “has to be a two-way communication.” That prompted Bailey to ask her and the board how they wanted him to communicate with them. Jacobs responded that she wanted a “heads-up” on significant initiatives to say it likely means that all of the terms and conditions spelled out are integral to the proposal and that you cannot without negotiation and agreement pick and choose parts of the proposal,” he noted, adding “there is nothing in the agreement about safety and adhering to all federal, state and local regulations.” Moroney said he didn’t blame HiTide because it submitted a contractor’s proposal. “I would do the same. My guess is that they were surprised OPA did not negotiate the terms and conditions. In the past these types of contracts often were examined by several parties for the very things listed above,” he said. Moroney said that “it appears” that the October contract can be voided upon proper notice to HiTide. “My guess is if the right questions are asked and a new mutually agreeable contract can be reached, Hi-Tide might well remain the contractor of choice,” he concluded.

Doggie swim

More than 100 dogs and their human companions splashed and played while raising money for the Worcester County Humane Society at the Ocean Pines Doggie Swim on Saturday, Sept. 9 at the Mumford’s Landing Pool in Ocean Pines. The annual swim, which has been hosted by the Ocean Pines Aquatics Department for the past eight years, gives dogs the chance to play in the Mumford’s Landing Pool before it closes for the season. Proceeds benefit the Worcester County Humane Society. This year’s event, which was open to the public, had the largest turnout to date, raising $1,165 for the shelter.

proposed by the GM well before a scheduled board meeting “so we have an opportunity to pose some questions.” Parks then injected into the discussion what he seemed to suggest would be Bailey’s optimal method of dealing with the board – “no surprises.” He added another prime objective for the coming year – shorter board meetings, as opposed to the three- of four-hour marathons that were customary this past year. The board’s first regular meeting of the new term, held Sept. 29, lasted about an hour and 15 minutes, before the directors went into closed session to discuss the October, 2016, bulkhead repair contract with HiTide Marine Construction. Gene Ringsdorf, an OPA assistant treasurer, suggested that the board return to a practice of previous boards – that of an action list which would be discussed at every board meeting. The action list fell into disuse several boards ago, and

it’s not immediately apparent how adding it to a board agenda would reduce the duration of the meeting. Director Slobodan Trendic suggested that for the board to function well individual directors should avoid taking “anything personally… We need to respect each other’s views. We will have disagreements, but directors should not try to make anyone look bad.” He echoed Jacobs’s comment that a good partnership is a twoway street and that feedback on suggestions would be an important measure of effective communication among the directors and Bailey. Director Tom Herrick, alluding to past if not current disagreements between Trendic and himself, said directors need to avoid calling each other liars. “Let’s leave the personal out of it” when disagreements occur, he warned. Jacobs concluded the discussion by advising her colleagues that “there is value in people having different opinions.”

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October 2017Ocean Pines PROGRESS

Hi-Tide Marine Construction still in the running for both repair and replacement work By TOM STAUSS Publisher he Board of Directors voted in open session Sept. 29 to “indefinitely delay” acting on a motion that would have authorized Hi-Tide Marine Construction to continue with emergency bulkhead repairs. But the author of the motion, newly appointed director Ted Moroney, said the delay will be relatively short and that Hi-Tide is still the odds-on favorite to be the Ocean Pines Association’s contractor for bulkhead repair and replacement. The delay is intended to allow OPA attorney Jeremy Tucker to review a three-page contract from October of last year pertaining to emergency repairs, Moroney said. The contract, which is essentially a price list of services offered by

the contractor, includes linear foot pricing for bulkhead replacement in addition to emergency repairs. As discussed during a September, 2016, board meeting, the scope of work envisioned at the time was for emergency repairs only. The five-year contract was signed without formal board approval by former Acting General Manager Brett Hill. Tucker was not consulted before the contract was executed, nor apparently did any other attorney for the OPA review the document before it was signed by Hill. Last fall, Tucker’s law firm, Lerch, Early and Brewer, had not yet taken over the entire OPA legal caseload. The October contract did not specify or commit the OPA to spend any dollar amount for emergency repairs, so arguably it fell within the general manager’s spending thresh-

old of $15,000. But board critics, especially Director Slobodan Trendic, said Hill violated the OPA bylaws in signing the contract with Hi-Tide because emergency repair costs were likely to exceed the $15,000 spending threshold when the contract was signed. Trendic has said that Hill should have brought the contract to the board for review before signing it. Moroney said the delay in voting on his original motion also will allow General Manager John Bailey to check on the status of any applicable construction permits needed before bulkhead repair work could resume or begin. The Hi-Tide contract was discussed by the board in closed session following the regular open meeting on Sept. 29. The board went back into public session af-

ter the closed meeting, but by then almost every OPA member had left. Earlier, in public session, the board voted to delay consideration of Moroney’s motion until later in the meeting. The delayed motion said that the OPA would notify Hi-Tide in writing that the contractor was to continue with emergency work but should not incur “any other costs other than emergency work costs at this time.” The motion also said that Hi-Tide could submit “other costs” for reimbursement with “adequate back-up.” The motion also said that General Manager John Bailey “shall develop” a proposed multi-year bulkhead replacement plan, review existing and proposed (if any) bulkhead contracts, and report back to the board with a status report in 60 days.” Moroney said after a legal review, and confirmation that permits exist for emergency repairs, he thought it likely that the board would approve Hi-Tide as the contractor. He said he expected the board would vote on the delayed motion sometime in October. October board action apparently would be acceptable to Hi-Tide, acq

OPA delays decision on resuming bulkhead emergency repairs

BOARD OF DIRECTORS

30 Ocean Pines PROGRESS Bulkheads

October 2017 said, adding that “Hi-Tide has a val- vised by former OPA Joe Moore over id and enforceable contract” to do the summer that the OPA wanted to From Page 29 emergency bulkhead repair work for delay any emergency repairs until the fall. cording to its lawyer, Steve Rakow, the OPA. 2017 as Ocean Pines PROGRESS 13 Hill, acting general manager, who was present at the meeting Whether the OPA in fact has January a saidinthe same thing past representing the contractor and an valid and enforceable contract has had weighing on the matter oncethis the written report telling on the condition the bulkhis then of colleagues aggrevied property owner, Sidney been debated by directors, but Mo- summer, headshe is provided wanted to tothem avoid disruptive Moffett, who Rakow said owns bulk- roney seemed to be of the opinion that After Hill made his comments about in the canals during the heading in danger of complete fail- that it could be amended in a way activities the “scary proposition” facing the OPA summer ure. acceptable to both Hi-Tide and the busy with respect to months. bulkheads, Trendic continued to insist Hill avoided needed tofiling presRakow saidthat he has Rakow said the OPA’s Public OPA board. ent clear, convincing evidence of Moroney noted that it could be suit against the OPA on behalf ofneed his Works Department has been “stonebefore the OPA continued to collect monamended to make explicit that it clients, who were willing to wait unwalling” his clients who want nothey from waterfront owners. Worm infestation requires immediate action, Hill says ing more than the OPA to do what it covers both emergency repairs and til October for the work to start. a holiday in thedo waterfront differential, outlays required in the future, Hill “If the we don’t have a bulkhead plan, a multi-year replacement program. If board doesn’t authorize said it would – respond to emer- tial an idea advocated by Director Slobodan seemed to be saying that any waterfront how do we justifying taking the money?” It could also do a better job of spec- repair work to begin this month, gency bulkhead situations. Trendic in the absence of a new multi- differential holiday would potentially be he asked his colleagues. He said that if materials used in repair and then even likely, Rakow saidreplacement the board program. has a fidu- aifying year bulkhead big mistake. Wood it’s Duckpossible, Isle bulkheads are in that such projects, he added. will file suit to enforce“let’s the ciary to deal with his client’s Theduty original 35-year program is now replacement Indeed, he has not backed off of that Hi-Tide poor condition because of worms, approaching year 40. view in light of the recently documentcontract, it” before money After the meeting, Rakow complettold the October he collecting said. failing bulkheads. With evidence of a worm infesta- ed survey of bulkheading throughout that may not be needed. “Hi-Tide is ready to go,” Rakow Progress that Hi-Tide had been adConceding that the process leadtion, and with the potential of substan-

Ocean Pines. But other directors will be

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Wood Duck Isle properties identified for emergency bulkhead replacement

BOARD OF DIRECTORS ing up to the granting of an emergency bulkhead repair contract last October was looser than it should have been, Ocean Pines Association President Doug Parks said in early September that he doesn’t want to make the same mistake in the awarding of a multi-year bulkhead replacement contract. Parks said he wants the Ocean Pines Association’s bulkhead consulting firm to provide all the supporting documentation that led former acting general manager Brett Hill to recommend Hi-Tide Marine Construction for a multi-year bulkhead replacement contract. While he said he doesn’t know whether reviewing those documents will change his or other directors’ votes on the bulkhead replacement contract, Parks said it’s possible that the review will result in a board decision to rebid the project. The previous board, in one of its final acts, voted for a one-year contract for bulkhead replacement in a meeting July 28. Hill, in his capacity as acting general manager, had presented a proposal to award a three-year contract to Hi-Tide, which submitted the least expensive bid among five responses to a request for proposals. A majority of directors were not willing to commit to a three-year term, opting instead for a shorter contract, with an option to renew. Hi-Tide Marine Construction was the low bidder with a base bid of $226.70 per linear food for vinyl bulkhead. That rate is just $1.79 more per linear foot than the OPA had been paying for to its previous contractor, Fisher Marine, for wooden bulkhead replacement. Although the board did vote to accept the low bid, Trendic offered a caveat that it should come with a performance bond and that he wanted to review the contract before it would be formally executed. Parks said he wanted the OPA’s new general manager, John Bailey, to be very much involved before the OPA formally awards a replacement contract to Hi-Tide or any other contractor. One factor that motivated Parks to seek a review of the vetting documents in the replacement contract are complaints that the board was not as involved as it should have in reviewing the October emergency repair contract. “It was looser than what I would expect in my own business,” he said. “I want to make sure that doesn’t To Page 32

October 2017 Ocean Pines PROGRESS

32 Ocean Pines PROGRESS

BOARD OF DIRECTORS

October 2017

Work group to develop standards for ethical behavior of directors Moroney worries policy could spur witch hunts By ROTA L. KNOTT Contributing Writer rompted by allegations of misconduct by members of the Board of Directors during the past year, the Ocean Pines Association’s governing body is considering implementation a code of ethics and conduct. Director Colette Horn, who was not serving on the board at the time of the purported scandalous behavior by other directors, introduced a motion to appoint a conduct and ethics work group during a Sept. 29 meeting. Horn’s motion, which the board approved unanimously, called for the creation of an ad hoc work group consisting of three directors and three association members. The charge of the work group is drafting a board resolution that sets standards governing director ethics and conduct, establishes policies and procedures to ensure compliance with the standards, and establishes procedures for addressing allegations of violation of the code of ethics and conduct. “Due to public scandals concerning ethical behavior in the corporate and nonprofit world, there is increased sensitivity to issues of ethics and conduct in organizational lead-

ers. As evidenced by recent allegations of director misconduct within our own Board, OPA is not immune to such controversies,” Horn said in discussion of her motion. Directors were concerned about the practical application of a code of ethics and conduct, but agreed that it was worthwhile to have a work group explore the possibility. Director Ted Moroney voted in favor of the motion but said the board needs to be realistic when reviewing the work group’s recommendations. He said he does not want to “end up with pages after pages of ethics policies that are unenforceable, unintelligible.” Moroney said it may be difficult to develop and adequate policy but he is “willing to give it a shot.” In response to public comments from one OPA resident that such an endeavor had been tried – and failed – previously, Moroney said he does not want to create a similar situation. He said he does not want a nebulous policy with no way to accurately measure whether a director is in violation. “So you end up having for lack of a better phrase, witch hunts,” he said. Resident Joe Reynolds said that

is essentially what happened more than a decade ago when the OPA implemented a code of conduct for directors. “It was aimed primarily at one director at the time,” adding that, “to use it against that director, they had to violate their own code,” Six months later, the board voted to eliminate the code. “I think it’s good that you talk about how board members interact with each other and the public, but I don’t know that we need a code of conduct,” Reynolds said during the public comments segment of the board meeting. He said such codes tend to be used by a majority of a board only against some minority on a board. In her discussion of the motion, Horn argued that clearly articulated standards related to director ethics and conduct will provide the board a strong basis for evaluating allegations. The goal is to ensure consistent and fair response to such allegations and to ensure that remedies are appropriate and effective, she said. “Transparency with respect to expectations for Director ethics and conduct, and procedures for addressing allegations of misconduct, will contribute to confidence in the Board’s decisions and actions when

Bulkheads

invested in this project or the time leading up to this project beginning, including man hours for estimating, coordinating, etc., legal fees that may incur as a result of cancellation as well as any materials that have been pre-purchased, whether or not they have been delivered to the project job site.” In somewhat unusual language for a contract, it adds that “Hi-Tide does not intend to be unreasonable and will scratch and sign off on this line if you need to cancel for specific reasons that may be discussed in the event a cancellation issue may arise.” In perhaps the most startling revelation of the contract, Paragraph nine reads that prices included in the contract are “based upon (a) continuous contract for five years with an optional extension for five years if mutually agreed upon by both

parties,” with the benefit to the OPA said to “include no additional mobilization charge for (the) entire contract period. There had been no public disclosure by the OPA that the emergency repair contract with Hi-Tide is for five-years, with another five years as a renewal option. Parks acknowledged there could be an interesting issue on whether an emergency repair contract would remain in place if a programmatic multi-year replacement contract is awarded to the same contractor that has a contract in place for emergency repairs. An even more interesting issue could arise if the OPA decides to award a replacement contract to a contractor other than Hi-Tide. In a price list of services, the October contract included a vinyl bulkhead installation cost of $220 per

From Page 30 happen with the replacement contract, that we tighten up our review procedures, that we all do our due diligence.” Parks said that to the best of his recollection, the Oct. 5 contract that he reviewed recently allows the OPA to terminate it, provided that OPA compensate Hi-Tide for any materials already ordered for project repairs. It does, but the potential penalty for a rescission could be more than cost of materials, according to contract language. “Hi-Tide considers this a binding contract once signed,” it says. “Should you (the OPA) choose to cancel this contract once it has been executed, Hi-Tide will expect full compensation for any and all time

such situation arise.” OPA President Doug Parks supported the motion, saying it would be time well spent to gather information. “I don’t see any harm in investigating the options of what a code of ethics would contain.” Director Cheryl Jacobs called Horn’s proposal a “worthwhile endeavor” and supported creating the work group. Director Slobodan Trendic suggested taking the project a step further and creating a code of ethics and conduct for the entire association, including staff. He said he hopes the work group will look at the option of having a “corporate standard code.” The OPA bylaws provides guidance with respect to cause for removal of a director based on any resolutions adopted by the board. Resolution B-05 prohibits conflicts of interest, but does not offer guidance as to how questions pertaining to conflicts of interest are to be handled, and there are no other resolutions that govern director conduct. The ad hoc work group will have three months to develop the proposed resolution. Horn said its proposal will be given to the Bylaws and Resolutions Committee for review and determination of need for legal review prior to final approval. Somewhat ironically, later in the meeting Horn voted for the appointment of her husband to an advisory committee without disclosing her family connection or offering to recuse herself from the vote. foot, including all labor, equipment and materials needed to install it. That was about $6 less per linear foot than the bid price included in proposal submitted before the July 28 board vote. The October contract has language in it that allows for price increases related to materials, so perhaps the price change from October to July is to be expected. Statements made by Hill in September said he and his staff would be seeking bids for emergency repairs. In addition, the first page of the contract opens with an expression of pleasure for the opportunity to offer a proposal for “misc. projects,” or miscellaneous projects, which suggests projects that are not part of a multi-year replacement project. As in all contracts, however, the language is subject to interpretation.

BOARD OF DIRECTORS

October 2017 Ocean Pines PROGRESS

Trendic renews call for Yacht Club leasing Plans to offer motion to solicit proposals at October board meeting

“We didn’t cut our losses, and we still haven’t,” Trendic said, adding that waiting for Bailey to assess the situation in the hopes that he will have a solution is unfair to him as a “newcomer” to Ocean Pines. “It’s a policy decision that needs to be made at the board level,” he said. “And we need to make the decision as soon as possible.” He said not making that decision and continuing to tolerate operating deficits while continuing to operate in-house means Slobodan Trendic the board itself is complicit in the looming financial disaster. Since 2010, Trendic said that the Yacht Club has lost $1.4 million, before depreciation. The outspoken director said he fears that the $750,000 negative variance to budget of OPA operations five months into the fiscal year will be used to justify higher assessments next year. “I want to go on the record that I’m totally against any increase in the assessment next year to pay for this year’s management mistakes,” he said. “We need to take immediate steps, including shutting down the Yacht Club, to stop the bleeding.” He said there may be some entertainment contracts that would have to be cancelled, but he said most contracts have “termination clauses and if ours don’t, then that’s on Brett” for having executed poorly drafted contracts with entertainers.

Board votes to charge committee to serve as champion of St. Martin River Panel says Ocean Pines’ economic health could be affected if rating of Isle of Wight Bay tributary drops below D+ By ROTA L. KNOTT Contributing Writer ith the health of the St. Martin River reportedly in decline, Ocean Pines Association officials are looking for ways the community can help reverse damage to the tributary of the Isle of Wight Bay. During a Sept. 29 meeting, the Board of Directors unanimously approved on first reading a motion to make that the primary charge of the OPA’s Environment and Natural Assets Advisory Committee. Director Pat Supik offered a motion to amend the Environment and Natural Assets Advisory Committee Resolution C-10 to include as the committee’s principal ongoing focus the health of water surrounding Ocean Pines, with primary concen-

The St. Martin River watershed

Source: Maryland Coastal Bays Web site

tration on the St. Martin River. The motion included making the first function of the committee helping maintain the health of the waterways. Director Slobodon Trendic offered a second to the motion, saying it is important to help educate community members how they, both individually and collectively, can reduce pollution of the waterways. He cited examples of grass clippings and lawn treatments finding their way into the canals and river. “Every little effort will help the bigger picture,” he said. In making her motion, Supik said the health of the waterways surrounding Ocean Pines has always been a focus of the environment and natural assets panel. Resolution C-10 was last reviewed and updated in 2009, but since then much has happened in the waterways near Ocean Pines. Director Cheryl Jacobs seemed somewhat skeptical of the change in the committee’s focus to the river. “I think it’s a noble objective. but I don’t really know what Ocean Pines can do relative to improving the water quality, other than just bringing it to people’s attention,” she said. In response, Supik said there are q

By TOM STAUSS Publisher cean Pines Association Director Slobodan Trendic is preparing to offer a motion at the Oct. 29 regular meeting of the Board of Directors that would direct the new general manager, John Bailey, to prepare a request for proposals from experienced restaurateurs that could lead to leasing out the Yacht Club. Trendic said that by issuing an RFP for leasing, the board would be in a position to consider proposals and decide then if it wanted to proceed with leasing or keep the operation in-house. Trendic said he has not wavered in his belief that leasing is the best option for the OPA. He said he ran for election in the summer of 2016 on that idea, and that he attempted to move in that direction last fall, only to run into resistance from board members. The result was that the Yacht Club, under the defacto control of acting manager Brett Hill this past year, is almost $250,000 in the red through August and about $325,000 behind budget, Trendic said. September numbers, due out the third week of October, will dig the hole even deeper, he predicted. “We needed to lease it out last fall, but we didn’t do it,” he said. “Now the situation has only gotten much worse.” Trendic said that while much of the blame can be placed on Hill for the amenity’s poor financial performance, last year’s board – five of whom, including himself, remain directors – also bears some responsibility for tolerating one poor management decision after another.

34 Ocean Pines PROGRESS

BOARD OF DIRECTORS

October 2017

By ROTA L. KNOTT Contributing Writer otions to increase the threshold for capital purchases, to create a human resources position, and to develop a master list of all Ocean Pines Association contracts and agreements all garnered unanimous approval from the Board of Directors during a Sept. 29 meeting. Directors had little, if any discussion, on the motions, with the makers simply presenting their case, and others consenting. Director Pat Supik, who serves as OPA treasurer, offered a motion to increase the asset capitalization threshold from $1,000 to $5,000 for Ocean Pines’ acquisitions. As specified in OPA financial policies, the threshold at which property acquisitions are capitalized for Ocean Pines has been set at $1,000 for more than 12 years. Supik said a low threshold for capitalization greatly increases the number of assets that must be accounted for and subsequently tracked on the asset list. Given the number of purchases

St. Martin River From Page 33

several things residents can do to reduce their impact on the environment and waterways. The committee has been meeting with representatives from the Maryland Coastal Bays Program to better understand the health of waterways adjacent to Ocean Pines, according to Supik. As a result, she said, the committee believes that the health of the St. Martin River should be a primary focus of the committee in the future. At a D+, the St. Martin River has the worst rating of any body of water in the coastal bays. “Slipping below D+ to an F might have financial and quality of life consequences for Ocean Pines residents. Even staying at D+ opens us to health issues due to algae and shellfish toxins,” Supik said. Since the county, state, and federal government are not focusing attention on improving the water quality of the St. Martin River, Supik suggested that Ocean Pines do so. “The river has no champion. It is in the best interest of Ocean Pines residents that the Environment Committee make its primary focus the St. Martin’s River.”

Trio of motions slips through with board approval Proposals regarding capital purchases, human resources, and list of contracts adopted with no debate or resistance made in the $1,000 to $5,000 range, this greatly increases the asset list, making tracking and accounting for all assets difficult and subject to error, she said. Although she didn’t mention it, if it’s on the asset list it’s depreciable. Funded depreciation is a calculation based on the asset list and is the primary annual revenue stream to the Major Maintenance and Replacement Reserve. Roughly $1.6 million per year, it’s passed on to property owners as a portion of annual lot assessments. Reducing the number of assets on the list thereby should exert a downward pressure on the lot assessment, but that’s offset by an increase in new capital expenditures expensed in the year they are purchased and funded directly from annual assessAs proposed by Supik, the revised resolution would charge the committee with providing suggestions and recommendations for improving the health and vitality of the community’s natural resources, with a principal ongoing focus on the health of the waterways and a primary concentration on the St. Martin River. The committee will continue to be responsible for keeping the board informed on environmental issues affecting Ocean Pines. The proposed resolution calls for the committee to help maintain the health of the waterways; promote improved growing conditions for indigenous flora and fauna; foster increased awareness of environmental hazards impacting our community; help educate residents on ways to enhance the value and appearance of their properties and neighborhoods and to enhance the ascetic nature of our common areas; help educate residents and OPA management about the environment; and help improve the natural beauty of Ocean Pines and other environmental and natural assets functions as may be assigned by the Board. The board must pass the revised resolution on first and second reading before it becomes effective. The vote to pass it on first reading was unanimous.

ments. It’s a budgetary trade-off. Currently items costing $1,000 or less are considered operating expenses. According to Supik, DMA, the firm engaged for the Ocean Pines reserve study, recommended increasing the limit for capitalization to at least $2,000. However, most companies the size of the OPA now use $5,000 as the threshold. Both audit firms the OPA has used in recent years recommended increasing the threshold, with their recommendation being $5,000, Supik told her colleagues. Director Slobodan Trendic offered a motion to direct the general manager to develop a job description for a human resources position, along with the salary range and reporting structure, and submit that proposal to the board for review and approval by Oct. 27. Trendic said both past management and past boards of directors recognized a need for the association to have a human resources position, but the position was never formally created. A number of recent personnel matters presented a need for the board to approve engaging Association’s legal counsel to provide the HR support as a temporary service,

Trendic said. The board also had agreed to defer the final decision until a new general manager, who is now in place, was hired and has the opportunity to develop a more appropriate longterm staffing solution for an on-site human resources support. The position could be full-time, part-time, or contractual based on the general manager’s recommendation, Trendic said. Director Ted Moroney offered a motion for the OPA to create a master list of all contracts and agreements to which the homeowners association is a party. His motion specified that the general manager provide that list to the board of directors no later than Nov. 15. It also said that the list, which will simply be a spreadsheet, should include the parties for each contract, what the contract is for, the date of execution or start, date of expiration, date of first review and responsible party. The motion also calls for the OPA to maintain a file drawer in the administrative offices as a master file with a copy of each contract. “We need as a board a list of contractual obligations, as well as a list that can be easily maintained and will allow sufficient time to prepare for re-bidding and/or negotiation,” Moroney said. He added that a similar system was in place in the past and it was used with great success. John Bailey, the new general manager, said work on updating and compiling files has already begun.

BJ’s membership returns to Ocean Pines BJ’s Wholesale Club is once again partnering with the Ocean Pines Association to bring a special membership offer, effective Oct. 13-27, 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. Current members who are enrolled in BJ’s auto-renewal program are not eligible for the Ocean Pines offer. This special promotion is only offered through Ocean Pines two times a year. The wholesale club offers a large assortment of products for home and business, savings of more than 30 percent off supermarket prices and acceptance of all manufacturers’ coupons and BJ’s store coupons. 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. 27.

By TOM STAUSS Publisher ewly appointed Director Ted Moroney recently raised the possibility of the Ocean Pines Association outsourcing back office accounting functions as an alternative to the in-house management that has been in place since the earliest days of the OPA. Moroney made his remarks about the possibility of outsourcing during a Sept. 22 board orientation meeting, in a segment of the meeting related to financial management. The board took no action on the matter, not even to direct the new general manager, John Bailey, to look into the possibility. But busily taking notes throughout the meeting, Bailey perhaps picked up on the fact that at least some directors are interested in exploring the possibility. Director Slobodan Trendic has been supportive of outsourcing since even before his election to the board in the summer of 2016. Bailey said that in his years in homeowner association manage-

October 2017 Ocean Pines PROGRESS

Moroney raises possibility of outsourcing back office accounting functions Bailey agnostic, tells board he can implement continued in-house or outsourcing ment he’s “done both” in-house back office functions and outsourcing. He said that larger scale HOAs – and the OPA would tend to qualify as one – tend to prefer in-house operations because members have a direct access to financial management personnel. “I have no opinion (on which is better),” Bailey said. “I can do it either way.” That seemed to suggest that he might not take a lead on the issue, leaving it to the board to provide direction. Neither Moroney nor Trendic offered motions related to the possibility of outsourcing at the earliest opportunity to have done so, the

board’s regular meeting Sept. 29. With three finance directors in the past year – retired controller Art Carmine and two finance directors who resigned, Mary Bosack and John Viola – conditions to at least consider outsourcing back office functions would appear to be ideal. In addition, the OPA has been plagued by antiquated accounting software that, among other problems, results in the slow issuance of monthly financial reports. It can take roughly three weeks to generate department summaries once a month closes out, and the directors seem to be in general agreement that the process takes too long.

OPA behind budget by $746,000 after four months of fiscal year By TOM STAUSS Publisher he Ocean Pines Association recorded an $47,000 operating loss in August and has a cumulative negative balance variance to budget of $746,000, one third of

the way into the 2017-18 fiscal year. OPA Treasurer Pat Supik, an OPA director and the organization’s chief financial officer, made no effort to sugarcoat the results in her report delivered during the Sept. 29 regular meeting of the OPA’s Board

of Directors. She said the results four months into the fiscal year do not bode well for the rest of the year, which traditionally are the slower months in which operating deficits in key amenity departments tend to accumulate. She did not have a projection available for the year’s end on April 30 of next year. According to the August financial report submitted to the Board of Directors by former Director of Finance John Viola, the last one he compiled before submitting his resignation, the OPA’s operating fund variance for August was a negative $211,701. Revenues were under budget by $211,681, total expenses exceed budget by $4,250, and new expenditures were under budget by $4,229. Year to date, the operating fund variance is a negative $745,911, with revenue under budget by $591,415, total expenses over budget

Director Tom Herrick told Bailey that, under the administration of former acting General Manager Brett Hill, there had been substantial discussion with HOA management company Legum and Norman about taking over back-office functions and using that company’s accounting software to better manage the OPA’s far-flung operations. “We had discussions about what they could do for us,” Herrick said. He did not reveal whether he was a supporter of out-sourcing over continue in-house management, but his comments suggested that he was at least willing to give out-sourcing serious consideration. OPA President Doug Parks said to make a decision on outsourcing or retaining in-house financial management would require a detailed financial analysis of both options. He did not say who should conduct such an analysis. The usual ways would be to task Bailey to do it or perhaps to assign a working group of directors and members to do it. So far, the board has done neither. by $105,033, and new capital over budget by $49,463. Performance relative to budget translates into the OPA’s surplus or loss for the year that ends April 30 of next year. In her treasurer’s report delivered during the Sept. 29 meeting of the board, Supik said amenity revenues – mostly at the Yacht Club and Beach Club – are $604,000 under budget while amenity expenses are over budget by $105,000. Contract services, discounts and wages are all over budget, she said. She noted that the industry standard for wages and benefits as a percentage of revenue is 35 percent. The Yacht Club’s to date is 55 percent, while the Beach Club’s is 21 percent, but she said that calculation may not include all of the relevant costs. She called prospects for much greater deficits by year’s end “significant.” For the fiscal year so far, excluding new capital, the actual operating surplus is $4.33 million, compared to the budgeted $5 million. But that’s $696,447 under budget. At the same time last year, the surplus was $4.7 million. The year over year negative swing is about $400,000. The results for the first four months of the year suggest that it q

OPA FINANCES

Ocean Pines PROGRESS October 2017

HAPPENINGS

August financials From Page 34 would be almost miraculous for the OPA to break even for the year. Performance would have to significantly outperform budget for the remaining eight months of the year. The Yacht Club lost $73,341 in July and missed its budget by $93,024. Through August, the Yacht Club has lost $236,458 and has a negative variance to budget of $324,423. The Beach Club, traditionally an OPA cash cow, earned $30,681 for the month but missed its budget by $86,002. The Beach Club is in the red by $38,943 through August and missed its budget by $290,134. There are positives in the July financials, led by Aquatics. This top performing department recorded a $2,379 surplus in August, missing its buget by $2,520. But for the year so far, Aquatics is in the black by $408,857, ahead of budget by $14,878. Through August of last year, Aquatics’ surplus was $221,859. Golf operations, not including Tern Grille results, took a hit in August because of the large number of rainy days. Golf lost $19,312, behind budget by $18,231. For the year so far, golf has an operating surplus of $87,807, behind budget by $13,510. But golf is ahead of last year’s cumulative numbers through August by roughly $50,000. A strong September and October, weather permitting, could conceivably produce positive results going into the colder months. Marina operations and Beach Club parking are performing close to budget five months into the fiscal year. Both are traditional cash cows for the OPA. Marinas have generated $219,764 in net revenue and Beach Club parking is $274,199 to the good. All three racquet sports are in positive territory through August, although under budget by relatively modest amounts. Reserve Summary – The OPA through Aug. 31 had $8.277 million in reserves, a modest reduction from July. The replacement reserve carried a balance of $5,155,448, also a modest reduction from the July balance. The bulkhead reserve has grown from $1,815,219 at the end of April to $2,611,548 as of Aug. 31, reflecting $822,367 in waterfront differential revenues. The roads reserve remained virtually unchanged with a balance of $509,712.

LIFESTYLES

Friday, Oct. 13 Family pumpkin painting, Ocean Pines Community Center, 6-8 p.m. $5 for Ocean Pines residents, $6 for nonresidents. Attendees may bring their own pumpkins or purchase one at the event for $6 (limited quantity available). Decorations and paint will be provided. Saturday, Oct. 14 Kiwanis Club of Greater Ocean Pines-Ocean City, annual Fall Pancake Breakfast, 8 a.m. to11 a.m., Assateague Room, Ocean Pines Community Center. Pancakes, sausages, super fresh scrambled eggs (made on the serving line) and coffee or tea. $6 adults, $3 for children under 12, and children under 5 free. Tickets, 410-208-6719, or purchase at the door. Carry-out. Tie die t-shirt workshop, Ocean Pines Community Center, 10 a.m. to noon. Bring your own white t-shirt. Basic tie die techniques including folding, binding, wrapping and dipping. $10. Registration, 410641-7052. Ocean Pines Anglers Club, monthly meeting, 9:30 a.m., Ocean Pines Library. Guest speaker Bryan Mullins, who uses various technologies to learn and improve the quantity and quality of saltwater species around the bay and ocean. He has started a YouTube channel – Salt Life Adventures - to document their adventures around the area. Open

to non-members. Sunday, Oct. 15 Ocean Pines Volunteer Fire Department, open house, Southside station, 10 a.m.-2 p.m. Introducing new heavy rescue fire truck. Bounce house, goody bags. Monday, Oct. 16 Membership meeting, Friends of the Ocean Pines Library, 10 a.m., large conference room, Ocean Pines library. Introduction of directors for 2017-2019. Report on recent book sale. Guest speakers Mike and Victoria Healy on travel tips. 9:45 a.m. for coffee and pastries. Thursday, Oct. 19 Pine’eer Craft Club, monthly meeting, Ocean Pines Community Center, 9:45 a.m. refreshments, 10 a.m. business meeting followed by craft: Decorating LED Candles. Information, Sharon, 410-208-3032. Thursday, Oct. 26 Republican Women of Worcester County, monthly luncheon meeting, 11 a.m., Captains Table Restaurant, 15th Street and Baltimore Ave., Ocean City. Guest Andrew Illuminati, states attorney from Wicomico County, speaking on current issues before the Supreme Court. $20 per person. Doors open at 10:30 a.m. Reservations, Pat Addy, 410-2080171 or gorpataddy@aol.

Friday, Oct. 27 Ocean Pines Association, Board of Directors, regular monthly meeting, 10 a.m., Assateague Room, Ocean Pines Community Center. Agenda posted on OPA Web site several days prior to meeting. Opportunity for member questions and comments during Public Comments segment. Saturday, Oct. 28 Halloween Fall Festival, White Horse Park, 1-4 p.m. Hosted by the Ocean Pines Parks and Recreation Department. Human and dog costume contests, pumpkin carving contest, carnival games, face painting, pony rides, candy, haunted hay ride, crafts and more. Admission and games free; fee for some attractions. 410-641-7052. Annual community sale in the Parke (rain date Nov. 4), 7:30 a.m. to noon, in the driveways of Parke residents. Clothes, lamps, artwork, household items, electronics, furniture and more for sale. Central Parke West, located off of Ocean Parkway near the south entrance of Ocean Pines. 410-208-4994. Saturday, Nov. 4 Dive-in movie, Sports Core pool, doors open 6 p.m., movie “Captain Underpants” starts 6:30 p.m. $3 swim members, $5 Ocean Pines residents, $7 non-residents, $20 for families of four or more.

thru Oct. 21

10-15-17

OPINION

October 2017 Ocean Pines PROGRESS

COMMENTARY

Parks, Bailey off to solid starts

Negativity drove Hill resignation decision

After much reflection and discussions with my family, I tendered my resignation from my position on the Board of Directors for the Ocean Pines Association. This is not a decision I take lightly, especially given the margin by which I was elected last year. The last thing I wish to do is disappoint the large number of homeowners who elected me to this position. However I do not see a path forward with the current board environment where I can effectively contribute to the community. The last several months have created an environment of negativity amongst the board, and despite multiple attempts by many different means to bring a positive path forward, certain individuals continue

The investigation into missing cash in OPA operations made last month is a cause for concern, of course, but there have been rumors and rumors of rumors of “shrinkage” at various food and beverage venues in Ocean Pines for decades. Whether this latest investigation will be able to ferret out any miscreants remains to be seen. What it really underscores is that the OPA back-office procedures and software are mired in the dark ages. This needs to change and needs to change quickly. The Board of Directors, reconstituted with two new members in September, seems to be getting off to a far more harmonious start – perhaps functional is the better word – than where the previous one ended. Doug Parks was the obvious choice for president immediately following this summer’s election. Despite some initial resistance, he accepted the job and has adapted well, determined to herd the seven directors into some semblance of a team pulling in the same direction. This won’t mean unanimity of opinion or even a cessation of the occasional argument. But the good news is he is genuinely interested in collaboration, involving all directors in decision-making. No one should feel left out. The appointment of Ted Moroney to fill the vacancy created by the resignation of Brett Hill was a solid choice. He’s not going to need a lot of on-the-job training. His active participation in the September board meeting bodes well for the rest of this board term. In the early going, Director Tom Herrick is dissenting from a Technology Working Group initiative that would award Mediacom a contract for providing high speed fiber optic connectivity between the Ocean Pines Police Department and emergency dispatchers in Snow Hill. True, a

contract for the project is under review by OPA legal counsel, but that does not necessarily mean it will be accepted by a board majority (although that appears more likely than not, given that Parks seems to favor it). Herrick objects to the proposed contract and will be able to debate the merits in an open meeting. He believes the OPPD project is better dealt with in the context of a community-wide fiber RFP (request for proposals), rather than, as he calls it, a piecemeal approach. That, indeed, was the approach preferred by the previous board. Despite rumors that the board has essentially decided this issue via e-mail, with Herrick cut out of the process, this appears not to have been the case. Parks has said he will air out this issue at a future board meeting, perhaps in October, perhaps later. Herrick will be given every opportunity to make his case before any vote is cast. Director Collet Horn is proposing a working group to (possibly) draft a code of conduct for the Board of Directors. This needs a thorough and skeptical vetting before it’s brought to the board for scrutiny and a vote on whatever this group produces. Given failed codes of conduct in the past, this is an item that need not be rushed. Bad behavior by directors – and there was plenty of that this past year – can be dealt with in elections and new starts by new boards. The new board and new general manager have a lot on their plate in the months ahead. We all can hope that a modicum of collegiality and civility will govern the process, unenforced by any written code of conduct. To the extent that the process will be the driven by the personalities of Parks and Bailey, much can be accomplished. Hope for the best need not be delusional. – Tom Stauss

LETTERS to foster negativity through slanderous allegations that are not only detrimental to myself, my family, and my business, but also others in our community. I cannot continue to take so much time away from my family and business surrounded by negativity, and feel there are much better places to dedicate my time for community outside of this board. I hope all on the board can move past the negativity, and learn to function as an effective board. With a permanent GM, the board really needs to focus on how it can contribute to the long-term direction of the community, addressing reserves, capital improvements, and long term budgets. Continuously second-guessing operational decisions,

and worse board decisions, that the majority of this board participated in, and supported over the past year, does nothing to further the community. This community faces many challenges, and last fall, the board was very effective at addressing many of the most pressing issues. Looking back, I am proud to say that as a board, we managed to get the Beach Club bathrooms renovated, the Tern Grille renovated, a new playground at Manklin Meadows, new golf carts, and a complete redecorating of the Cove Restaurant, including the addition of Tuffy’s Tavern. Most notably, but the realistically the smallest project, was the fact that after four years the sewage gas

leak in the Cove has been repaired. If this board can get back to the place where the board was last fall, the community will be in a much better place. For the sake of John Bailey, and all the employees, I urge you all to focus on being a board member, and please treat Mr. Bailey with much more respect than was given to me. The employees of this association work very hard every day for the betterment of all residents, and the negativity of the board, and constant public criticism, fosters a very poor work environment. The employees deserve your support, and need your long-term guidance. After such an extensive search, the board needs to support Mr. Bailey, and allow him to do the job he was hired q

otwithstanding a $750,000 negative deficit to budget five months into the fiscal year, the Ocean Pines Association over time has the wherewithal to right the ship and bail itself out of an ocean of red ink. Whether it can be done by the end of the current fiscal year remains to be seen, as a break-even performance for the year would require performing heroically under budget for the remaining eight months of the year. We’ll let others indulge in rosy scenarioed happy talk or doom and gloom. There are positives without looking too hard. The previous board seems to have picked the right person for the job in John Bailey – JB they’re calling him, to minimize confusion with the other Johns that dart in and out the OPA orbit from time to time. The first impression of Bailey is that he’s temperamentally suited to what can be a rough and tumble job. He’s still in the honeymoon phase, the one that predates the one in which slings, arrows and outrageousness vie for supremacy. But so far so good on what he hopes will be his last job on a 15-year odyssey on the road to retirement. So far, he’s been spending a lot of time listening, gathering the information needed to make intelligent decisions and recommendations. There have been no precipitous action, no grandiloquent gestures overturning the decisions of his predecessor. There are hints of decisions to come – opaque references to the possible re- rebranding of the Yacht Club or the head-scratching perplexity of why live entertainment is scheduled for the Beach Club in October. So far no announcement (as of Oct. 6) on the status of the 20 percent discount at the Yacht Club. At least it isn’t applicable to the just announced half priced burgers on Thursday.

38 Ocean Pines PROGRESS

OPINION

October 2017

More positive than negative in Brett Hill’s year-long ordeal

No doubt in some instances he did share certain initiatives with his board liaison, then OPA President Herrick, but for some reason the information did not always filter down to the rest of the board, or if it did

and, given enough time, will be rectified under the supervision of the An excursion through the curious by-ways and cul-de-sacs An excursion through the curious by-ways and cul-de-sacs new general manager, John Bailey. The grand strategy of renovation of Worcester County’s County’s most densely community. of Worcester mostpopulated densely populated community. over new construction remains. By TOM STAUSS/ By TOM Publisher STAUSS/Publisher In his resignation letter, Hill points to what he regards as his not always in a timely way. That, at from new construction conceived main accomplishments this past least, was the consistent complaint and implemented during the Hill year. Broadly speaking, the OPA physagainst Hill by Trendic and Jacobs, tenure. Granted, one component of allies of happenstance much of this that grand strategy, renovation of ical plant is in much better shape the second floor of the Country Club, now than it was when he assumed past year. His successes as acting gener- inexplicably ground to a halt this office as acting general manager last al manager usually occurred when past summer and remains in limbo. year. There’s the aforementioned first Whatever happened to cause the the board acted collaboratively. One achievement that far outweighs project to lose traction – and there floor of the Country Club – the any of the negativity was a board are conflicting versions of contribut- women’s locker room apparently consensus to move away from new ing factors – cannot totally insulate still need work – upgrades to the buildings as a matter of strategic Hill from responsibility for that out- Beach Club, Yacht Club, new White Horse Park bathrooms, new picklevision in favor of taking better care come. But the failure of the project to ball courts, and new platform tennis of and, when needed, renovating excontinue uninterrupted after the courts under construction. A new isting ones. Even Moroney, who was much in- mostly successful renovation of the playground in the Manklin Meadvolved in the processes that led to first floor was not a failure of broad ows recreational complex has been the construction of the $5 million concept, to which the entire board enjoyed by many since its opening Yacht Club, is now disinclined to more or less agreed to last fall. It this past summer. relitigate this strategic pivot away was a failure of implementation

LIFE IN THE LIFE INPINES THE PINES

glass full or half empty, or maybe slightly more full than empty, is an apt metaphor for Brett Hill’s year as a director and acting general manager of the Ocean Pines Association. Sadly, this past year probably will be remembered more for the toxic relationships that infected the Board of Directors in roughly the last six months. As Hill’s resignation letter published elsewhere in this Progress makes perfectly clear, he himself succumbed to the negativity in the end, prompting his resignation from the board after only a year of volunteer service. His replacement by Ted Moroney, a contractor with a lot of experience reviewing and drafting contracts, can be seen as an ironic counterpoint to Hill. It was Moroney’s expertise in contracting that helped persuade the board to appoint Moroney over at least one other well qualified candidate to fill the vacancy created by Hill’s departure. Hill’s resignation came shortly after an October, 2016, contract that Hill signed for emergency bulkhead repairs was made public. The contract went unreviewed by his board colleagues and by an attorney at the time. It’s impossible to imagine Moroney, had he been a director at the time last October, rubber-stamping the contract, essentially a scope of work with a price list and without the usual and expected protections for the OPA. Of course, it would not necessarily have been the case that he would have had access to the draft before it was signed, as most (if not all) of Hill’s colleague were not to privy to it before it was signed by Hill on behalf of the OPA. The failure to share the contract with his colleagues was symptomatic of the worst aspects of Hill’s tenure. The crux of his toxic relations with colleagues Slobodan Trendic and Cheryl Jacobs, with Tom Herrick firmly allied with Hill, had much to do with making decisions and implementing them without first consulting with all of his colleagues.

From Page 37

to do, so that he has the chance to follow through on his intentions to work here through retirement. I wish you all the best, and want to thank all of those in the community that supported me over the last year. Also, I want to thank all the staff for their support over the past year. All the accomplishments of the last board year would not have been possible without the support of the staff. I am glad I could see them through to Mr. Bailey’s tenure, and am certain they are in a great position with his leadership. Brett Hill Ocean Pines

Board disharmony may never change

I have just read an article headlined “Trendic Disputes Herrick Version of Beach Club Bartender Incident” in the September Progress. Despite the repeated pleas from five Directors of our current Board of Directors to move forward in a positive manner for the betterment of our community, Mr. Trendic continues to disrupt and create a poisonous environment within the Board. His most recent public comments attacking my personal integrity has,

LETTERS unfortunately, now compelled me to defend myself and my honor. It is remarkable that these allegations, against me, come from someone whose own integrity issues of the past are suspect and have been well documented and of public knowledge. I certainly did not make up the allegations of his contact with our Beach Club personnel. This information came from an incident report relayed from staff personnel who at the time of the incident, did not even know who Director Trendic was. Based on his prior conduct and consistent with this type of repeated action, I have severe doubts that our staff personnel falsely reported the incident as it happened, as he alleged in “The Progress” newspaper. For him to bring up this particular incident, yet again, does not even reflect on the true issue at hand. This incident happened AFTER the Board met to discuss his continued transgressions and as a result of that meeting, he promised these type of actions would not continue. This particular incident and others that followed, only proved to illustrate his intention to continue down

this destructive path. His personal onslaught against me, is possibly because, as president, I felt obligated to call the meeting for a hearing regarding his possible removal from the Board. This decision was not personally motivated, but based on the feedback I received from other Board members. The truth is my actions were precipitated by a motion submitted by a director for his removal, and the commitment I received from five directors agreeing it would be in the best interest of our association to do so. One of these Directors subsequently refused to participate due to ramifications such action may have on the election results, and the matter was postponed. What is most upsetting to me is that the hope for this “new” Board to move forward in a positive manner, for the betterment of the community, has again been dispelled by these continuing public and personal attacks by Mr. Trendic against one of his fellow Board members. So here we are, another Board of Directors in Ocean Pines, once again, filled with disharmony. I have doubt it will ever change. Tom Herrick Ocean Pines

OPINION

October 2017 Ocean Pines PROGRESS

Life in the Pines From Page 38

Hill had the gumption to make some operational changes at OPA amenities this past year, but sadly many of them simply didn’t work out as planned. Nighttime dining at the Beach Club never caught on. That idea, tried before unsuccessfully during the tenure of former General Manager Bob Thompson, contributed to the decision by veteran Beach Club manager Lynda Huettner to resign. That in turn was a definitive factor in the Beach Club losing money this summer, a heretofore unheard of result. Concentrating food and beverage purchases at the Yacht Club left other venues waiting for deliveries. The 20 percent discount at food and beverage venues overstayed its welcome, extending into the summer months when it was not needed, no doubt contributing to the Yacht Club’s 55 percent of revenue going to pay for employee payroll and benefit expense. As noted by OPA Treasurer Pat Supik, the industry standard is 35 percent. So let’s not sugarcoat it. Food and beverage management in Ocean Pines was not Hill’s strong suit. Going into the fall months the OPA is about $750,000 in deficit relative to budget, and variances to budget are the way surpluses or losses are measured at the end of the fiscal year. Much of that is attributable to budgeted revenues not materializing as

Fire Prevention Month

The Worcester County Commissioners stand with Worcester County Fire Marshal Jeff McMahon to proclaim the week of October 8-14, 2017 as Fire Prevention Week and the month of October as Fire Prevention Month in Worcester County and to support this year’s prevention initiative “Every Second Counts: Plan 2 Ways Out!” The fire marshall urges county residents to make and practice an escape plan that includes a home map with two escape paths, so all family members know what to do in the event of a house fire.

they should have – or of expenses too high for those revenues. The Beach Club will be losing money for the first time in memory, although it was in the black for August after loses earlier in the season. The Yacht Club financially is in a hole that’s going to one of the new general manager’s greatest chal-

lenges. Temperamentally, he seems well suited to tackling the issue head on. Over time, these conditions are fixable. The broad strategic strokes and physical plant improvements will be part of Ocean Pines for years if not decades to come. Those accomplish-

ments, and not the failures, will be Hill’s lasting legacy.

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

PUBLISHER/EDITOR

CERTIFIED FINANCIAL PLANNER™ Registered Representative Investment Advisor Representative Phyllis R. Mitchell Financial Services, Inc. Registered Investment Advisor Professional Plan Consultant™ Investment Advisor Representative

Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPIC, a Registered Investment Advisor. M and H, Phyllis R. Mitchell Financial Services, Inc., and NPC are separate and unrelated companies.

Tom Stauss tstauss1@mchsi.com 443-359-7527

Advertising Sales Frank Bottone 410-430-3660

ART DIRECTOR Rota Knott

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

40 Ocean Pines PROGRESS

October 2017

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CAPTAIN’S COVE

October 2017 Ocean Pines PROGRESS

For first time in community’s history, tap water from utility company system is ‘crystal clear’ By TOM STAUSS Publisher om Harmon, lead operator of Aqua Virginia’s Captain’s Cove water and wastewater treatment utility, recently announced the completion of more than $3 million in upgrades since it acquired the system from the Captain’s Cove Utility Company late in 2015. The company, part of a network of Aqua subsidiaries throughout the East Coast: • Installed arsenic and organic carbon removing water treatment units for three facilities. • Added three new wells to the waterworks. • Modified the withdrawal permit and obtained new rapid infiltration basin permits. • Installed new sewer collection piping. • Terminated the drinking water consent order. • Resolved long standing compli-

ance issues affecting the water and sewer utilities. “Aqua Virginia’s investment in Captain’s Cove has been a success. I have worked at the water and sewer plant here as the local supervisor for many years before Aqua acquired the system in December 2015,” Harmon said. “Aqua created a plan for the water and sewer improvements, and we have achieved great results for the residents. The water has never been treated until now and the water is crystal clear.” Since the creation of Captain’s Cove in 1970s, tap water in the community had been discolored and generally undrinkable. “The old sewer collection system was the original vacuum system which was failing and we replaced it 100 percent, so that it can now be expanded to serve more homes that need access to the sewer system,” Harmon added. Traffic Calming Installation – Captain’s Cove POA officials

Cindy Welsh 302-381-6910 (cell)

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were expecting installation of traffic-calming speed humps to begin in early October, weather permitting. This may cause some delays navigating on Captain’s Corridor, Brigantine Boulevard and Jolly Roger Drive, so residents were asked to plan accordingly. Speed bumps will be installed in sets of two in both directions from major intersections. Ward complaint – Cove resident John Ward won a lengthy battle with the Cove association recently when Heather S. Gillespie, common interest community ombudsman for Virginia’s Department of Professional and Occupational Regulation, ruled that he must be given an unredacted copy of documents associated with two loans of $150,000 and $225,000 used for new road construction in Captain’s Cove. Ward, a critic of new road construction in the Cove because he contends it ought to be done by developer interests, alleged that the Cove violated the Virginia Property

Owners’ Association Act by failing to provide him an unredacted copy of lender documents. He was particularly interested in finding out the name of the lender, whose identity Cove president Tim Hearn had declined to disclose at the request of the lender. Ward filed a complaint with the community ombudsman on Aug. 8 after the Cove’s board of directors refused his request in a notice issued Aug. 1. In its response to Ward’s complaint, the Cove argued that the issue had been ongoing and that Ward “had hired an attorney in 2015 (in an) attempt to resolve this issue.” The Cove’s attorney at that time provided to Ward “a detailed explanation as to why the member who made the loan … was within his rights under the condition of the load document” and the Virginia property owners association act “to redact the name of the lender from the copies of the loan documents supplied to you.” There the matter rested until Ward decided to renew his efforts earlier this year by filing another complaint, first with the Cove board of directors and then the q

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Tarpon Plus $215,900

Two Story 1773 sq ft., 3 BR / 2.5 BA Unfinished Bonus Room, Expanded Kitchen and Dining Area

©2017 BHH Afﬁliates, LLC. An independently owned and operated franchisee of BHH Afﬁliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Equal Housing Opportunity.

42 Ocean Pines PROGRESS

CAPTAIN’S COVE

October 2017

Ward complaint From Page 41

ombudsman. “The statutory language … is quite absolute,” Gillespie wrote, saying that Virginia’s homeowner association act requires the Cove to provide access to “all books and records kept by or on behalf of the associa-

tion. The fact that the Association agreed to provide anonymity to the lender has no bearing here.” She determined that the since the Cove must have an un-redacted copy of a loan document that contains the lender’s name, “I can find no reason … why the name can or should be redacted. If the Association promised anonymity, that is

unfortunate, but the owners in the community should not be denied their right to transparency due to a promise made by the board of directors.” In a notice dated Sept. 5, she ordered the Cove to provide an unredacted copy to Ward. In an e-mail to the Progress, Ward said that Cove board member Jim Silfie provided a copy of the docu-

ments including the name of the lender, but with the request that Ward not release the name publicly. The lender is a resident of the Snow Hill area and is involved in farming. Both Ward and the Progress are respecting Silfie’s request. Ward has told friends and the Progress the lender’s identity. The individual has no direct ties to Cove management.

Building Captain’s Cove One Home at a Time! FEATURED HOMES

www.jabuildersllc.com Sea Robin

Wahoo

Ranch Style Home 3 BR / 2 BA 1288 Sq Ft • $134,300

Skipjack

Tiger Shark

TiRaised Home on Pilings 3 BR / 2 BA 1349 Sq Ft • $181,500

Dolphin 2012

Ranch Style Home 3BR / 2BA 1496 Sq Ft • $169,200

Marlin

Two Story Contemporary Home 3 BR / 2.5 BA 1818 Sq Ft • $200,100

Thresher

Raised Home on Pilings 3 BR / 2 BA 1745 Sq Ft • $241,600

• 3BR/2BA New Construction • 1288 sq. ft. • Sea Robin model • Screen Porch • Hardwood Floors

$145,700

Ranch Style Home 3 BR / 2 BA 1408 Sq Ft • $165,000

Tarpon II

Ranch Style Home 3 BR / 2BA 1525 Sq Ft • $196,500

193 Davey Jones Blvd.

ASK FOR CINDY WELSH

Two Story Contemporary Home 3 BR / 2.5 BA 1874 Sq Ft • $202,700

Mako

Raised Home on Pilings 4 BR / 3.5 BA 1940 Sq Ft • $266,800

• 3BR/2BA New Construction • 1663 Sq ft. • New Bulkhead • Construction Starting Soon

1332 Blackbeard Rd.

$315,900 Tarpon

Two-Story Contemporary Home 3 BR / 2.5 BA 1607 Sq Ft • $177,200

Barracuda

Two Story Contemporary Home 4 BR / 2.5 BA 2050 Sq Ft • $222,700

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

CINDY WELSH - REALTOR

Berkshire Hathaway HomeServices Pen Fed Realty 4323 Captain’s Corridor • PO Box 28 Greenbackville, VA. 23356 302-381-6910 (cell) • 757-854-1604 (office) 757-854-1606 (fax) • Email: candhwelsh@aol.com ©2017 BHH Afﬁliates, LLC. An independently owned and operated franchisee of BHH Afﬁliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Equal Housing Opportunity.

October 2017 Ocean Pines PROGRESS

Expanding Soon

to Worcester & Sussex Counties

Call Us Today for Details

44 Ocean Pines PROGRESS

October 2017

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• INSIDE AND OUTSIDE STORAGE • WE SERVICE ALL MAKES & MODELS • PROP RECONDITIONING • CANVAS REPAIR & FABRICATION • WE CAN COME TO YOU AND PROVIDE ONSITE SERVICES! • WE USE ONLY MANUFACTURER PARTS AND LUBRICANTS! • PERSONAL WATERCRAFT AND JET BOATS, TOO! • CALL NOW. WE MAKE IT EASY. DO NOT CUT CORNERS HAVING YOUR BOAT WINTERIZED. IT CAN CAUSE YOU A LOT OF TROUBLE LATER. 32415 Long Neck Road, Millsboro , DE 19966 302.945.1200 One of the Top 100 Boat Dealers in North America! WWW.SHORTSMARINE.COM