October 2019 Ocean Pines Progress by Ocean Pines Progress

Directors belatedly approve Seacrets lease renewal Ocean Pines Association Secretary Colette Horn at the Oct. 2 regular monthly meeting of the Board of Directors announced a previous email vote approving a new five-year Seacrets lease. Such contract extensions have become routine over the decades and rarely are viewed as controversial. The arrangement is regarded as mutually beneficial. It turns out that OPA President Doug Parks signed the lease extension May 1, about five months before the board ratified it in an email vote. ~Page 5

Board OKs site in Bishopville area for bulkhead staging The Board of Directors, in a closed session Oct. 2, unanimously approved a contract for a bulkhead staging area outside of Ocean Pines. “Having the staging area will save us money and give us flexibility in terms of how we approach the work,” General Manager John Viola said. Over a three-year period, the net savings will be about $100,000 after lease payments are sub~ Page 10 tracted out.

OPA drops fees as leverage in CPI court cases Director Frank Daly’s proposal to allow the Ocean Pines Association to recover legal fees for action taken against property owners who violate restrictive covenants received a lukewarm reception from his peers, and was ultimately defeated in a 4-3 vote. Directors Larry Perrone, Collette Horn, Steve Tuttle, and Doug Parks were opposed, while Daly, Tom Janasek, and Camilla Rogers were in favor. ~ Page 13

October 2019

www.issuu.com/oceanpinesprogress

THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY

COVER STORY

Lawsuit over denial of petition drive pending Petitioners’ attorney accuses OPA and directors of ‘bad faith’ in denying request for referendum on board spending authority By TOM STAUSS Publisher

hould a dispute over a petition drive that seeks a referendum vote of the Ocean Pines Association membership on a proposal to curb Board of Directors spending authority remain unresolved, an Oct. 6 letter from the petitioners’ attorney to the Board of Directors and OPA attorney Jeremey Tucker makes clear the matter is headed to court. The OPA was given notice that if it wants to avoid the costs of litigation and possibly incurring plaintiff’s legal expenses and punitive damages, it had three days in which to respond with a plan to conduct a public hearing and initiate steps to conduct a referendum. That deadline came and went, with Tucker reportedly asking for an extension because a Jewish holiday fell within the window of days available for board consideration and action. As this edition of the Progress was going to press, the OPA had not yet responded to the petitioners’ request for a hearing and referendum. OPA Vice-president Steve Tuttle,

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OPA Counsel Jeremy Tucker’s opinion on whether a petition on board spending authority was valid for purposes of a referendum has been challenged by the lawyer hired by the petitioners.

who recently proposed that the board initiate a referendum to reduce board spending authority but received no support for it, said in an Oct. 8 telephone interview that the board was awaiting a response and recommendation from Tucker on how to respond to the petitioner’s attorney’s letter. He said the board would most likely meet in closed session to dis-

cuss options. The question on the referendum ballot as formulated by the petitioners would be whether OPA members support reducing the threshold for board-authorized capital spending without a referendum to $1 million from the current 20 percent of the annual revenue collected from assessments. Tuttle’s recently proffered version would have set the threshold at 12 percent of the annual revenue, about $1 million currently. The 12 percent threshold in Tuttle’s version would allow the board’s spending authority to increase with inflation over time. The petitioners’ attorney, Bruce F. Bright of the Ocean City law firm of Ayres, Gordy and Jenkins, argued that Tucker’s legal rationale for resisting the petitioners’ request for a public hearing and referendum led to a result that violated OPA bylaws and reflected bad faith, a broad indication that should the petitioners file suit against the OPA and individual directors, asking for compenTo Page 30

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October 2019 Ocean Pines PROGRESS

Directors approve Seacrets lease renewal already signed May 1 by Parks Board votes 6-1 in email to ratify action by OPA president By TOM STAUSS Publisher cean Pines Association Secretary Colette Horn at the Oct. 2 regular monthly meeting of the Board of Directors announced a previous email vote approving a new five-year Seacrets lease. Such contract extensions have become routine over the decades and rarely are viewed as controversial. The arrangement is regarded as mutually beneficial. It turns out that OPA President Doug Parks signed the lease extension May 1, about five months before the board ratified it in an email vote. Because the signing of a contract by the OPA president most likely makes it binding, the board’s belated approval perhaps was not really necessary. The contract between the OPA and Leighton Moore’s West End,

L.L.C. (O.C. Seacrets, Inc. in previous contracts) allows patrons of Seacrets restaurant and nightclub bayside at 48th and 49th streets in Ocean City to park in a bayside lot owned by the OPA. The agreement also allows Seacrets to use the parking lot at the Ocean Pines Beach Club in Ocean Pines for overflow parking after hours when the Beach Club is closed. The five-year release includes an increase in payments to OPA, beginning at $63,914 and ending with $71,935, approximately $10,000 more per year than the prior lease. At the beginning of the Oct. 2 regular meeting, Horn announced that the board had approved the lease in an email vote by a margin of 6 to 1, with Director Tom Janasek in opposition, reportedly objecting to the lack of public discussion of the lease.

Asked to clarify her opening statement, Horn acknowledged that the vote was not unanimous. Parks then added that while a unanimous vote was required to take a vote on a motion via email, no unanimous vote was required to pass the motion. However, Joe Reynolds of oceanpinesforum.com said Parks and the rest of the board had been incorrect and both votes had to have been unanimous in order for them to have been valid. Reynolds said that this was not the first time an OPA board has violated Maryland corporate law when conducting business outside a meeting. In a subsequent published commentary, Reynolds said Parks’s action “could well be considered an attempted coverup, resulting in an erosion of trust in our elected board.” Reynolds said that the late Dave

Stevens “during a term as OPA president faced a similar challenge about needing unanimous consent to take an action outside a board meeting. Stevens, Reynolds said, asked OPA counsel [Joe Moore] for an opinion and replied with the following: “Our attorney confirms that under the Maryland Corporation and Associations Article, the decision [following an email authorization for action outside an announced board meeting] must be by unanimous written consent.” Parks was also on the board at that time, Reynolds said. “This could easily be written off as a simple error on the part of the board President,” Reynolds added. “Regrettably, there was no transparency and, instead, the subterfuge of the email vote was employed to hide what actually happened. During the meeting, neither the president or any other board member mentioned that the contract had been signed many months prior to the board’s subsequent improper approval of the contract in recent weeks via email. “Several board members were q

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6 Ocean Pines PROGRESS

October 2019

OCEAN PINES Seacrets lease From Page 5 asked if they were aware the contract had already been signed when they voted via email to approve the contract. One board member was aware; one member did not seem to be aware; another said it would require a review of the email stream leading up to the vote. Parks was obviously aware. “What should have happened? The right thing should have happened. The board President should have been transparent, admitted his mistake at the recent meeting, and board should have then voted on the contract at the meeting, a vote that would have required only four members approving. “Regardless of the vote, regardless of the violation of Maryland law, the contract was very likely binding the instant ... Parks signed it back on May 1. “After that, it is quite possible even a vote of the board not to approve the contract would be more or less meaningless,” he concluded. OPA directors responding to inquiries from the Progress indicated that they don’t agree that votes on a

October 2019 Ocean Pines PROGRESS motion in an email need to be unanimous. Both OPA by-laws and Maryland corporate law are ambiguous on that point, they said. They in effect were saying that Moore’s legal opinion on the matter is incorrect and they are not bound by it. In addition, there doesn’t seem to be any board concern over the May 1 signing of the lease because, according to directors, Parks owned up to what he admitted was a mistake and asked the board to rectify the mistake by an after-the-fact approval. Director Larry Perrone, in defending the board’s actions, also had some pointed words for Reynolds. “It is my understanding that the contract was signed by Doug Parks after he thought he had board approval to renew the Seacrets lease,” Perrone told the Progress. “This appears to be a mistake so this current board attempted to correct the procedural issue. This led to the current board agreeing to address the issue by a electronic vote. “The board voted 7-0 in favor of a electronic vote. The board then voted 6-1 to approve the already signed

contract. I want to point out that whether the board corrected this procedural issue or not, the contract is valid between Seacrets and Ocean Pines because ... Parks, as president, has the apparent authority to enter into a contract. In addition, this contract extension is in the best interest of Ocean Pines.” Perrone said he found it to be “very hypocritical of Mr. Reynolds to make such a huge issue over a simple mistake that has been corrected by this board. I don’t remember Mr. Reynolds being so upset when former acting general manager Hill signed several contracts without board approval. “You will remember that Mr. Hill entered into a employment contract with former employee Brian Townsend. I questioned the board during public comments at a board meeting and they confirmed Mr. Hill entered into the contract without board knowledge or approval. “He also entered into a contract with HiTide construction without board knowledge or approval,” Perrone continued. “Where was the claim of lack of transparency when it involved Brett Hill? There was none because Mr. Reynolds was a

supporter of Brett Hill,” Perrone said. Perrone, the current OPA treasurer, called the Seacrets lease renewal a financial benefit to Ocean Pines. “Brett Hill’s unapproved contracts costs Ocean Pines significant money. We all make mistakes and the mistake here was corrected,” Perrone said. His reading of the OPA “indicates we need unanimous vote for a action. The action was voting to do the vote on the contract electronically. I believe the board action was appropriate,” he said. Reynolds responded that he in fact had contemporaneously criticized Hill’s HiTide agreement and the contract with Townsend, the former food and beverage manager. “Larry doesn’t know what he’s talking about,” Reynolds said. He also reiterated that during the Oct. 2 meeting, Parks did not admit he had made a mistake. “I said during my comments that if he had, it would not have been a big deal,” he said. But because he didn’t, the issue became more concerning, Reynolds said.

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stored overnight. Materials needed for bulkhead works are then transported to a job site within Ocean Pines by barge or tug boat, or possibly by truck for off-loading. The Progress has learned that Leighton Moore, owner of Seacrets Lease for Bishopville area property to cost OPA $4,000 per month in Ocean City, is leasing the Ocean Pines canals. By TOM STAUSS payments are subtracted out. The Bishopville waterfront property General Manager John Viola pre- savings come from the difference to the OPA at a rate of $4,000 per Publisher he Board of Directors, in a sented the draft lease to the board, contractors would charge for having month. The term is for three years, closed session Oct. 2, unani- which endorsed it because of its pos- to transport materials from West with a two-year extension possible. Viola was not the source of that mously approved a contract itive financial benefits. Ocean City versus the staging area 600 Franklin “Having the staging area will in Bishopville for a bulkhead staging area outside much closerAvenue to Ocean information. Road The new agreement with Moore save us money and give us flexibil- Pines. of Ocean Pines. Berlin, MD 21811 D 21801 The new staging area will be used means the OPA will not to have to The Association and contractors ity in terms of how we approach the effective immediately, Viola said. A store any materials anywhere in 410-641-0001 1 employed by Ocean Pines will use work,” Viola said. He told the Progress that over a staging area is typically defined as Ocean Pines for bulkhead work. commercial property in Bishopville However, residents will still noto stage bulkhead repairs and main- three-year period, the net savings one in which materials used in bulktenance, as well as dredging of will be about $100,000 after lease head repair and replacement are tice barges and tug boats within the canals of Ocean Pines, Viola told the Progress recently. “It will be as close to the areas where we’re doing bulkhead work,” he said. Two barges were moored at the end of the Grand Canal that separates Wood Duck I and II in early October. Viola said that overnight mooring of the vessels will be common occurences through April of next year, when current phases of construction should be complete. The intent is to avoid bulkhead repair and replacement during the summer months. By finding a staging area close to Ocean Pines, the OPA should be able to avoid bulkhead replacement costs estimated at up to 25 percent higher had bulkhead contractors been forced to transport materials from marine facilities in Ocean City or West Ocean City. The agreement with Moore also allows the OPA to avoid complaints from property owners opposed to staging areas in residential areas of Ocean Pines. Several years ago, after residents in the Swim and Racquet Club area lawyered up to fight use of that amenity’s campus for overnight storage of materials, Worcerter County regulators told the OPA that it could no longer use that site for that purpose. The OPA agreed not to as a way of avoiding an embarrasing defeat in a potential lawsuit. For months, Viola and Operations Director Colby Phillips have been looking for alternatives for staging areas. Moore, owner of Seacrets in Ocean City at 48th Street, already had a long-standing relationship with the OPA in the leasing of an OPA-owned bayside parcel adjacent to his restaurant and night club, for use as a parking lot.

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Perrone says effort to amend declaration of restrictions not worth the cost By ROTA L. KNOTT Contributing Writer irector Frank Daly’s proposal to allow the Ocean Pines Association to recover legal fees for action taken against property owners in violation of the restrictive covenants received a lukewarm reception from his peers, and was ultimately defeated by a narrow margin. The motion to “authorize counsel to develop the wording and instruments required for Ocean Pines to obtain legal fees for non-collection matters and to begin the signature collecting process was defeated in a 4-3 vote. Directors Larry Perrone, Collette Horn, Steve Tuttle, and OPA President Doug Parks were opposed, while Daly, and Directors Tom Janasek, and Camilla Rogers were in favor. Daly argued that the motion would enable Ocean Pines to recover the legal fees associated with obtaining the court orders necessary to force violators into compliance with the Declarations of Restrictions. He said the current restrictive covenants for may sections of Ocean Pines do not permit the OPA to recover the cost of obtaining a court order to force compliance. Daly said the issues is one of how much risk the Board of Directors is

willing to assume related to the cost of pursing legal action against those in violations of the restrictive covenants. “Where things will hit the fan is if you have one that goes to the Maryland Court of Appeals and the cost is in the six figures and the legal fees go through the ceiling and we haven’t taken the steps necessary to recover the cost if the judge would feel compelled to give them to us.” Horn wanted to know how much the attorney’s fees are for each case referred by the board to legal counsel for action. “It’s kind of a dilemma Collette,” Daly said. He cited an attorney estimate for a court order range up to $50,000, but said it is typically between $12,000 and $18,000. “It depends on, number one, the degree of fight that the violator has. If they retain and attorney and you go through depositions and you go through discovery and they decide to fight with you, you could get into the upper numbers,” he said. Janasek asked if there is any estimate of attorney’s fees incurred so far on some of the OPA’s problem properties that have been in violation for years. “Do we have any clue how much the attorney’s we’ve paid over and over to send letters and do all this legwork?” he said.

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Daly responded that typically the defendants want to settle these cases before they get in front of a judge. “Counsel has been asked point blank, current and previous, are these numbers wrong? And nobody has disputed that we can hit the upper limit if we have somebody – like somebody right now – who’s saying I’ll see you in the Maryland Court of Appeals. So it’s an issue of risk, OK? And I don’t think we have the choice not to enforce and not to demand speedy enforcement and speedy correction of violations of our declarations of restrictions. The question is how much risk do we want to take…?” he said. Currently Daly said there are 17 cases pending. The filing fee alone is $165, plus the cost of the attorney to prepare and travel to court to file the initial paperwork. “That time’s not free.” Therefore, the cost is about $1,000 minimum, he told his colleagues. Horn, however, pointed out that only nine of those 17 pending cases are in sections where a change to the restrictions would be necessary to allow the OPA to collect legal fees. The other properties are in sections of Ocean Pines where that is already permitted. Perrone said he’s been involved in his career in hundreds of litiga-

tion cases. “The reality of it is, the majority of the cases are going to be settled. Very few are going to go to court,” he said. Realistically, he said the OPA will likely agree to waive those attorney’s fees anyway to get the homeowner to bring their property into compliance with restrictive covenants. “That’s the reality of how the litigation will go. That’s what will happen if we get involved in a mediation. And that’s what will happen if the attorney knows what he’s doing for the homeowner, the defendant in this case. That’s what they’re gonna look for to resolve the case.” Perrone said he would like to see the OPA recover the fees, but the main objective is to bring the property into compliance. If it takes waiving the legal fees, then that is what will happen, he said. Perrone said in many of the property violation cases the homeowners don’t have the money to fix up their property. Therefore the OPA isn’t likely to recover the fees even if they are awarded by the court. Rogers concurred that cases are frequently settled and attorney’s fees waived in the best interest of resolving those cases. Still, she supported trying to recover that money. “I would err on the side of at least having the leverage. We have the leverage to obtain legal fees in various cases. As a plaintiff we can waive those legal fees. We can do whatever we want. But it at least gives us some bargaining power and I would like to see this move forward,” she said. Janasek agreed and said if the case can be negotiated based on waiving attorney’s fees, right now q

Board votes against proposal to collect legal fees in protracted CPI disputes

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October 2019

Legal fees From Page 13 the OPA can’t use that tool. “At this point we can’t charge fees so what do we have to waive? We don’t have an opportunity to negotiate,” he said. Parks said he liked the concept of being able to recover legal fees, but wasn’t sure how it would be implemented related to the OPA governing documents and Maryland law. “I think there’s a lot of intersection points. There’s a lot of things that are intertwined with regard to anything we do…” he said. He questioned whether the investment in changing the restrictive covenants in those sections necessary in order to collect attorney’s fees would be worth it. He noted that only a small percentage of property owners in violation of the restrictions are referred to legal counsel. “I’m all for recovering our attorney’s fees,” Perrone said, but he wanted to know what it’s going to cost the association to do so. “I think we have to go back and go through the process of having each section vote on these DRs and approve it. And there has to be what a 50 percent approval rate by each section in the association to approve the DR or to approve this change and if, in fact, that’s the case, what’s that gonna cost us. And are we really gonna recover those fees anyway?” Daly said approval would be needed from the majority of the property owners in each section to incorporate the change in the restrictions for that section. As for the cost, that would be dependent on the tool used by the OPA, such as a referendum or return postcard, to obtain approval, he said. In a brief to the OPA, legal counsel Jeremy Tucker said generally a prevailing party is not awarded attorney’s fees unless the parties to a contract have an agreement to that effect, there is a statute that allows the imposition of such fees, the wrongful conduct of a defendant forces a plaintiff into litigation with a third party, or a plaintiff is forced to defend against a malicious prosecution. In the homeowners association context, the recorded declaration of restrictions is the contract. If the OPA takes legal action to enforce its governing documents, the association would only be entitled to recover attorney’s fees if the relevant section Declaration of Restrictions or the Maryland Homeowners Association Act authorizes the award.

Daly: ﬁnes no longer under consideration

he idea of imposing fines on property owners for egregious violations of restrictive covenants is no longer under consideration. Director Frank Daly conceded as much in remarks posted on oceanpinesforum.com after the Oct. 1 board meeting agenda was posted. He later told the Progress that he and the Architectural Review Committee decided that less controversial methods are available to expedite enforcement efforts against problem properties.

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OCEAN PINES

October 2019 Ocean Pines PROGRESS

Viola vows to come up with a solution in response to card-holder complaints By TOM STAUSS Publisher wo Ocean Pines Association directors are now on record in opposition to allowing swimming pool debit cards to expire this coming April 30 with monetary value remaining. If the cards are allowed to expire, then Ocean Pines property owners and residents potentially could lose whatever monetary value remains. Many Ocean Pines pool members and debit card users -- pool members often purchase the cards for use by visiting family members -- have indicated their opposition to the possibility of losing unused monetary value on the cards. The two directors who unequivocally stated their opposition to mon-

etary losses from debit card expirations were among the three new directors elected to the board this past August, Tom Janasek and Camilla Tom Janasek Rogers. They made their views known during a Sept. 19 joint meeting of the Board of Directors and the Budget and Finance Advisory Committee, an annual special meeting called to review committee recommendations for preparation of the 2020-21 OPA budget. The committeeâ&#x20AC;&#x2122;s list of recommendations did not include any

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reference to the ongoing debit card debate, but that didnâ&#x20AC;&#x2122;t prevent the topic from being raised as the board and committee members went Camilla Rogers through the recommendations item by item. It was raised indirectly by OPA President Doug Parks, who following a discussion of Country Club renovation costs, seemingly out of context said there is a question about when revenue from the debit cards is recognized for budgetary purposes. That prompted Ocean Pines prop-

erty owner Joe Reynolds, who often participates in board discussions when Parks allows it, to tell the board that the debit card expiration issue continues to upset card holders who â&#x20AC;&#x153;donâ&#x20AC;&#x2122;t likeâ&#x20AC;? the idea that they might be losing some of the cardsâ&#x20AC;&#x2122; value this coming April 30. He suggested that the motive for letting the cards expire with value remaining could be that it would inflate the amount of revenue that the Aquatics Department would otherwise earn from the sale of debit cards. The issue of when revenue from the sale of the cards is recognized for accounting purpose is separate and distinct from the issue of when the cards and their monetary value expire. Since last year the practice has been to recognize the full value of the revenue reflected in the cards in the month when cards are sold in the OPAâ&#x20AC;&#x2122;s membership office. Contrary to what Parks suggested, the issue of when revenue is recognized is settled. What isnâ&#x20AC;&#x2122;t settled is whether the OPA will allow holders of debit cards to lose the value contained in those cards after May 1 q

Two directors urge OPA not to allow monetary loss from expiring pool debit cards

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OCEAN PINES

October 2019

Viola outlines progress on more than a dozen projects Ocean Pines. Finance Director Steve Phillips said the Administration staff, as well as Recreation and Parks, Aquatics and Public Works, would go live with the new systems in October, with other departments phasing in over the next several months. Staff received extensive training on the new NorthStar systems in September. “I just want to give accolades to the employees,” Phillips said. “Change is always difficult, but ... there was focus [and an] all-around positive attitude related to the training and implementation.” q

he Ocean Pines Association continues to move forward on several notable projects, including a new golf clubhouse, renovated and expanded Police building, new financial software, and reinvigorated programs for bulkheads, dredging and drainage. General Manager John Viola, during the Oct. 2 regular Ocean Pines Board meeting, offered updates on more than a dozen ongoing projects. Viola said the Association was “on track” with the October deadline to go live with the new NorthStar software, expected to help improve financial reporting and accounting services for

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Pool debit cards From Page 15 of next year. Options for avoiding that possibility would include refunding any remaining dollar amount of value or to transfer the balance to a new card. Another option would be to allow holders to continue to use the old cards until they’re depleted of value. After Parks and Reynolds made their comments, Director Colette Horn weighed in on the side of allowing existing cards to expire, downplaying the possibility that card holders would lose money when that happens. “People should be able to buy what they need,” she said. NorthStar software improvements allowing user interaction with the membership office should make that process easier, she said. “I’m on the other side of the fence,” Rogers said, objecting to the notion that purchasers of cards in the future, absent a policy clarification by management or the board or both, will have to estimate how much value to include on their6/30/17. new cards. She said she faces the prospect of losing over $100 on a debit card herself. “I’m not alone,” she said, alluding to comments from neighbors and others who don’t like the idea of having to guess how many times their guests will visit an OPA pool using a debit card. Janasek said there “has to be a way” to allow card holders to retain the monetary value of their debit cards and that he was “not in favor in taking people’s money” by allowing the cards to expire. OPA General Manager John Viola later told the Progress that he will be working on a solution, so no one loses any monetary value.

OCEAN PINES From Page 16 Turning to construction of the new Golf clubhouse, Viola said concrete work would start soon, with a May 1 goal to open the completed building. He added a prefabricated golf cart barn should be set by November, and renovation and expansion of the the Police headquarters should start later this month. “We’re working with the golf pro to make sure that minimum disruption happens during the busy time at the golf course,” he said, adding financials at the course are “basically on track with the budget,” despite all the construction activity. The new Pine’eer Craft Club building is “coming along nicely,” Viola said, and construction there should wrap up by December. The structure is viewable near the Farmer’s Market grounds at White Horse Park. Also on the management side, Viola is conducting performance reviews of each department head, and said cross-training and promoting “bench strength,” or the ability to

specialize across multiple departments, is a priority. “We definitely will have savings there, [so] it’s worth the investment that we’re doing right now,” he said. Executive Secretary Michelle Bennett is working with Sibson Consulting to complete an employee compensation study, which Sibson will deliver to the homeowners association by the first week of November, Viola said. Viola credited Operations Director Colby Phillips, Public Works Director Eddie Wells and Public Works Operations Manager Nobie Violante with restarting programs for bulkheads, drainage and dredging, adding a multiyear plan was in place for each. Viola sent the Board a contract for a new bulkhead staging ground, which he said would help save the Association money. He told the Progress that it will be roughly $100,000 in net savings over three years. The directors unanimously approved the contract during a closed session later that night. [See separate article in this edition of the Progress for details.]

OPA, Star Charities to host remembrance of Anna Foultz

he Ocean Pines Association and Star Charities volunteers who knew her best will honor the late Anna Foultz during a public remembrance on Thursday, Oct. 24. Association President Doug Parks announced the ceremony during an Oct. 2 board meeting. Also during the meeting, the Board unanimously approved renaming of the Marlin Room in the Ocean Pines Community Center in honor of Foultz. She and her friends used the room for weekly The late Anna Foultz bridge games. “Anna will be sorely missed,” Parks said. “She was a very, very important person in the Ocean Pines community, and condolences go out to her and her family. We’ll celebrate her, not only by the remembrance of the dedication of that room, but just by remembering all the things that she did for Ocean Pines and Star Charities, and the other organizations that she was associated with.” Parks and a representative from Star Charities, the nonprofit she and her late husband Carl founded, will dedicate the room at 3:30 p.m. on Oct. 24. A remembrance ceremony will follow from 3-6 p.m. in the Assateague Room of the community center to include a performance by the Delmarva Chorus and refreshments courtesy of Star Charities volunteers. Guests can say a few words to honor Foultz.

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OCEAN PINES

October 2019

OPA hosts groundbreaking for new golf clubhouse

Target date for occupancy is May 1 of next year

he Ocean Pines Association hosted a groundbreaking ceremony for a new golf clubhouse, on Tuesday, Oct. 1 at 9 a.m.. on site at the Ocean Pines golf club in Ocean Pines. Construction on the new clubhouse started the week of Oct. 8. The old foundation was covered with sand last month, raising the level a few feet. Pouring a new foundation was next on the project list. The target date for the building’s completion and use by golfers is May 1. Ocean Pines Board members, General Manager John Viola, local builders Marvin Steen and Frank Brown, representatives from the Whayland Company and Davis, Bowen and Friedel, Inc., and members of the golf community on took

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part in the ceremony. OPA President Doug Parks spoke first and thanked the several dozen people who attended the ceremony. “This is a very exciting time,” he said. “I wanted to publicly recognize some of the people that have been instrumental in what’s going on … Steve Tuttle has been the Board representative on this project, and he’s done a yeoman’s work in keeping everything up to date [and] keeping the board up to date. “I’d also like to thank everybody else that’s been involved,” Parks continued, recognizing both “the former board members who supported this and the current Board members who continue to support this, so we can make sure this project is delivered on time, so we can start enjoying a wonderful new facility here at

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the golf course.” Tuttle, the Association vice president, spoke next, joking he’s “a man of few words.” “I’m glad this day is finally here. There’s been a few bumps getting here and I just want to get the construction started. Let’s go!” he said. Steen, of Steen Associates, a volunteer advisor on the project, declined to speak, but quipped, “I’m fine!” He drew a big laugh from the crowd. Viola, last to speak, thanked Board members, as well as Steen, Bill Stamp (also of Steen Associates), Brown, and “all of the other people from the workgroup that have helped out with this and made this possible.” “I want to thank everybody in Ocean Pines, as well as the golfers

that have supported this place over the years,” Viola said. “Let’s go forward!” The Board in April approved construction of the new building at a guaranteed maximum cost of $1.6 million. The Whayland Company, based in Laurel, Del., is overseeing construction. Whayland is also handling a compansion project, a replacement cart barn. Delivery is expected in a couple of months, at a cost that should be substantially less than the budgeted $400,000. Salisbury architectural firm Davis, Bowen and Friedel, Inc. developed plans for the roughly 7,200 single-story building, to include a large meeting room and space for the Tern Grille bar and restaurant, along with an outdoor deck, pro shop and club-fitting area. Absolute Demolition of Ocean City demolished the former two-story Golf clubhouse in May. Much of the former kitchen equipment and bathroom fixtures in the downstairs renovation of several years ago has been saved and will be installed in the new building.

TRIPLE CROWN TOWNHOMES Directors receptive to some proposals OCEAN PINES

October 2019 Ocean Pines PROGRESS

to expedite compliance enforcement By-laws and Resolutions Committee to vet changes before resolutions are presented to board

al Review Committee establishes the procedures used by that committee, in conjunction with CPI, to process property violations and related appeals. Daly’s proposed change would the referral process from ARC to the OPA; instead of referring violations to the Board of Directors for consideration, ARC will send them to the general manager. The proposed resolution M-10 states “it is understood that the GM is given pre-authorization by the Board to take actions deemed To Page 22

By ROTA L. KNOTT potentially grant a variance or to determine if a property is in violaContributing Writer overrule findings of property violation of OPA’s maintenance requireaced with a quartet of motions tions. “What it does is compresses the ments. Daly’s proposed changes to revise, rescind, and create timeline instead of going around and remove a section on Rubbish and resolutions related to enforcing around and around and around and Debris that allow the Board, by twocompliance with the Ocean Pines around. You have 30 days to correct thirds majority vote, to approve enAssociation’s governing documents, it.” tering onto a property and cleaning the Board of Directors during an Resolution M-04 Maintenance of it up. Oct. 2 meeting opted after first read- Lots establishes the criteria used to Resolution C-02 Architecturing to send the set of suggestions to the By-laws and Resolutions Committee. The Board agreed to seek input from the committee prior to a second reading and approval. Director Frank Daly proposed the elimination of one standing resolution, M-01 Compliance Procedures, replacing it with a new one, M-10, and revising two more, M-04 Maintenance of Lots and C-02 Architectural Review Committee. The Board discussed at length Daly’s plan to replace the policy and procedures in Resolution M-01 with a new Resolution M-10 that creates timely and effective policies and procedures to address violations of the Ocean Pines Declarations of Restrictions and Architectural Guidelines. The directors breezed through the others after deciding the whole package of proposals needs to be reviewed by Bylaws and Resolutions Committee. Resolutions M-01, and the proposed new M-10, establishes the Each Unit is 2543 Sq. Ft. Plus 256 Sq. Ft. Patio OPA’s Compliance Procedures, including the timeline for addressing 30 Feet Open Space - Between Buildings routine violations of the restrictive covenants. Enjoy all the Ocean Pines Amenities! Daly said his goal is to implement The Yacht Club & Marina • Golf & Country Club • Tennis Courts faster and more effective policies Beach Club • Four Outdoor Swimming Pools • Indoor Pool and procedures for addressing violations to the governing documents, Parks • Community Center and Special Events but that requires multiple steps. Shopping Center • Medical Center • Post Office • Library The net effect of all the changes is Woods in back of Townhomes an expedited process for addressing violations. “From the day that there is an iniur Stop In and Ask Pick Yo e Site tial violation noted to the DeclaraAbout Our Newest Project Like us on ed Hom tion of Restrictions, the next day the Preferr ow! N CPI department sends a letter that Like us on says you have 30 days to correct the violation or show substantial progress toward correcting that violation or the general manager is authoAssociates, Inc. ikerized us onto go to court and get a court 627B Ocean Parkway Ocean Pines, MD 21811 627B Ocean Parkway Ocean Pines, MD 21811 order forcing you to comply with the 410-641-7050 CELL ANYTIME: 443-235-2325 PH: Declaration of Restrictions,” he said. PH: CELL Steen@Beachin.netANYTIME: steenhomes.com Daly said it does not change the MHBR 486 ARC’s ability to meet, review, and

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OCEAN PINES

October 2019

necessary to address violations and to report such actions taken to the Board…” Director Steve Tuttle, liaison to the ARC, said that committee is very supportive of the proposed changes. He noted, however, that if implemented the restructured procedure would allow the general manager to make the decision regarding seeking a court order for a property violation and report back to the board. “But it does not come to the board for a decision,” he said. OPA President Doug Parks wanted to know if it makes more sense to simply modify Resolution M-01 than to repeal it and create a new M-10, and suggested involving the Bylaws and Resolutions Committee in the discussion. Daly said he already had an opinion from the committee that the changes to OPA procedure could be accomplished by either amending M-01, or rescinding it and creating a new resolution as he had proposed. He said if the committee’s pref-

erence is to modify M-01, he would accept that option. Director Tom Janasek said he thought the whole point of making changes to OPA policy was to be able to recoup legal fees for prosecuting property violations. “I assumed that’s what we wanted to be able to do. I don’t understand why we have our lawyers working for six to eight months on trying to get people to fix their houses but can’t go after them to pay for our lawyers doing it. That’s my point. That was what I thought this was all going to be about.” That specific item was addressed under another Daly motion, which failed to garner majority support, during the same Oct. 2 meeting. Daly said his goal was to take a good look at how violations are handled. He said the Compliance, permits, & Inspections office receives up to 12 complaints a day, and most are rectified within 30 days, over phone without any formal documentation. During that 30 day period, CPI and the Architectural Review Committee provides the property owner with opportunities to discuss

the violation, but then the matter is sent to legal counsel. That results in further compliance. Overall, Daly said just .002 percent of all homes in Ocean Pines, 17 cases, have violations that are sent to the OPA’s attorney. “There is a kind of urban legend ‘well the problem is the people have been here for 40 years, they are on death’s doorstep, they have no money, and we’re beating on them to correct the violation. The truth of the matter is when we dig into the ones, some of which have gone back to 2005, that simply isn’t the case,” he said. He cited three long-running cases of property violations. In one case the house has been unoccupied and unmaintained because the heirs predeceased the owner. “We followed our procedures to the letter of the law and we were sending letters in effect to dead people telling them to comply to our declaration of restrictions. Doesn’t get too many results.” In another case, past general managers have failed to follow OPA procedures resulting the a lingering

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problem for the property’s neighbors. Daly said the normal process typically is ineffective when major issues exist with a property that diminishes adjacent home values or with homeowners who have proven to be chronic, repeat offenders of the restrictions. His motions are proposed as a way to have all policies and procedures reflect a 30-day mandatory window for compliance or to show “significant and meaningful” progress toward completion with proper input from counsel to assure due process and adequate warnings for failure to comply. For those complaints not resolved immediately the process ensues in an attempt to force compliance with the Declarations of Restrictions. “Our number one job is to protect homeowner value and if we’re not doing that, we’re not doing our job. And that’s exactly what these changes are designed to do,” Daly said, adding, “So here’s the deal, we either back down or we fight for the homeowner. Our job is to fight for the homeowners, plain and simple.”

OCEAN PINES

October 2019 Ocean Pines PROGRESS

County considering occupancy restrictions on short-term residential rentals

By TOM STAUSS Publisher motion calling for the Worcster County Commissioners to delay a decision on changes to county law governing shortterm rentals was offered and then rescinded before consideration and a vote by Ocean Pines Association Vice-president and Director Steve Tuttle. A draft of Tuttle’s motion to delay was included on the released agenda for the Oct. 2 monthly meeting of the OPA Board of Directors. Tuttle announced that he was rescinding the motion at the beginning of that meeting, a response to a meeting of the board and two county commissioners, Chip Bertino and Jim Bunting, earlier in the day. During that meeting, which was not announced beforehand to the OPA membership or the local media, Bertino reportedly made it clear that there would be no delay by the commissioners in taking action on the proposed changes as a result of an OPA request. Joe Reynolds, an Ocean Pines resident and proprietor of oceanpinesforum.com, was invited by Bertino to attend the meeting. Reynolds told the Progress that apparently OPA officials had been unaware of the pending legislative changes until recently, although the commissioners have been discussing the matter since early summer. The OPA at one time sent at least one director to meetings of the county commissioners to keep tabs on issues that might affect Ocean Pines. That hasn’t been occurring for some time now, which is perhaps why the directors seemed to have been slow to react to the pending rental legislation. The meeting with the two commissioners was called to bring the OPA directors up to speed on pending county legislation related to short-term rentals, of which the directors have, at least so far, not taken a formal position. Four directors were present at the meeting -- OPA President Doug Parks, Tuttle, Larry Perrone and Frank Daly. That made it an official OPA board meeting. Reynolds told the Progress that he informed Parks at the beginning of the meeting that one director

should leave in order for the session not to be an official board meeting under the Maryland Homeowner Association Act. An alternative would be to postpone the meeting and reschedule it with proper notice to the membership, Reynolds said. Parks responded that no director would have to leave the meeting and he was not inclined to postpone it. “It was a clear violation of the

HOA act,” Reynolds said. “I didn’t want to argue with him (Parks), but it’s obvious he just didn’t care.” Rather than take a position on the pending legislation, the directors are encouraging Ocean Pines property owners to attend a public hearing on proposed changes to existing county law governing rentals scheduled for Oct. 15 at 11 a.m. at the County Commissioner’s meeting

room in the government center at 1 West Market Street in Snow Hill. “The notion of renting a home on a short-term basis is not a new idea in Ocean Pines. However, with the popularity of Airbnb and VRBO, the influx of rental transactions in our area has increased dramatically,” Parks said in an OPA press release. “There are many more occurrences of short-term rentals that involve far more people than would be in a traditional family residence. These rentals are now causing problems of noise, parking and other disturbances within our community. “The county is now looking into q

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Board revisits electronic signage at North and South Gates Directors ask Communications Committee to work with county to change regulations By ROTA L. KNOTT Contributing Writer n an effort to improve communication with residents and reduce operations and maintenance costs, the Board of Directors is pondering replacement of the 13 marquee information signs within Ocean Pines with two electronic signs, one at the North Gate and another at the South Gate. Director Collette Horn presented the proposal during an Oct. 2 meeting, on behalf of the Communications Advisory Committee, which she serves as board liaison. She said it would cost about $80,000 to replace all of the marquees with just two electronic signs. She said the benefits include the ability of Ocean Pines Association staff to maintain instant access to the signs to ensure their accuracy and timeliness of the information posted. However, Horn said one significant challenge is that such signs are not permitted by the Worcester County zoning code, which restricts message signs only to the identification of the community or geographic region. The county does not provide for variances or exceptions to that regulation. She presented the topic for discussion to determine if the sup-

port for pursuing this concept and working with Worcester County to overcome the zoning and permitting problem through a text change in the applicable county ordinance. Although OPA’s signs presently go beyond this to provide information about programs and activities related to programs and association business, Horn said county has never pressed the issue of removing what has been in existence. Additionally, she said Jennifer Keener, county zoning administrator, indicated that she could not permit new or replacement signs. Advice from Ed Tudor, Director of Development Review and Permitting, is that a text amendment to a county code could allow the OPA to replace its current signs with something new, such as electronic signs, Horn said. The text amendment could limit the change to a community with specific characteristics, such as number of homes, so it would does not affect the entire county. Director Camilla Rogers said the marquee signs are quaint and “almost nostalgic,” but added that she supports continuing the investigation into electronic signs as an alternative. Sometimes changes need to be made more expeditiously, rather

than having staff spend time changing individual letters on each sign, she said. “I would really encourage us to continue to explore this, to look at the cost benefit analysis and to consider the purchase of these signs barring any restrictions by any codes that are imposed on us by Worcester County or our own restrictions or bylaws,” Rogers said. OPA President Doug Parks said he is interested in learning more

County rentals From Page 23 this important issue on a county-wide basis. We ask that all interested parties in Ocean Pines attend the hearing to understand what the county is proposing to address the situation and to share their perspectives on the issue,” Parks added. Tuttle also urged residents to attend the hearing, according to the press release. “Ocean Pines residents have an important opportunity to express their opinions regarding a bill that will be passed by the Worcester County Commissioners,” he said. “The final wording of the bill is not set and now is the time for Ocean Pines to speak up. “Do you rent your home in Ocean

about the potential cost of new signage, and how long it would take the association to recoup that investment against labor hours for changing and maintaining the existing marquee signs. “Where is the break-even point?” Parks said the other consideration is ancillary costs to change from using manually adjusted signs to electronic signs, such as connectivity. “I think it’s very important that we understand the entire cost and the return on that investment. When is it going to payback, and quite frankly, is it worth it?” he said, adding that he’s “not poo-pooing it” but if it takes decades to payback

24 Ocean Pines PROGRESS

Pines during the summer season? Do you own investment property that you rent continually? Do you live next door to a property being rented via an online site where 1015 people and are packed into a three-bedroom home and 6-10 cars park in the drive and on the street? Is the rental even registered as required by law with Worcester County? Please, this is your opportunity to share your views on this very important issue that impacts all of us in live in Ocean Pines. Hope to see you at the Oct. 15 public hearing,” Tuttle added. The commissioners introduced the amendment to Bill 19-3 on Sept. 17 after months of debate. In Subsection ZS 1-103(b), a new definition of “bedroom” would be added to the Zoning and Subdivision Control Article of the county codebook. A new section ZS 1-351 would be added to this article to regulate short term rentals to specify that the definition of a “family or housekeeping unit” in the county zoning Oordinance would not apply in determining the occupancy limitations for licensed short-term rentals. Instead, occupancy limitations in homes used for short-term rentals would be determined based upon the maximum occupancy of bedrooms at a ratio of one occupant per fifty square feet of unobstructed floor area. It would also amend the requirement to provide one additional offstreet parking space for short-term rentals to apply only to structures for which a building permit application is received after the effective date. That provision would seem to grandfather existing homes from having to supply additional offstreet parking.

OCEAN PINES

October 2019 Ocean Pines PROGRESS

Electronic signs From Page 24 the expense it may not be worth the investment. However, he said if it frees up staff to be able to perform other needed duties for the OPA, “then maybe we can look at it.” Director Larry Perrone said he doesn’t think a cost-benefit analysis is appropriate for this particular issue. “This is really something that adds to the quality of life in Ocean Pines. Whether there is a real cost-benefit besides the service provided to the community, I’m not so sure from a financial standpoint if that’s really the issue.” Perrone said the issue was addressed several years ago and the county was intransigent in opposing changes. “I think it’s probably a good thing if we can get the signs but until the codes are changed, we’re just spinning our wheels,” he said. Perrone said he would support having the general manager assemble a group of knowledgeable staff and members to try to influence the county. “I think that’s a good thing,” he said, but added until that happens there is nothing the OPA Board of Directors can do. Director Frank Daly said there is also a safety component to the issue because the electronic signs will allow posting of messages to the community faster than hand-changing all of the old marquees. In that case, he said, the OPA needs three signs, including St. Martin’s Neck Road, which is the

old truck entrance into Ocean Pines off Beauchamp Road, Ocean Pines’ northern boundary. He said that road may be more heavily traveled in the future particularly if a traffic circle is installed at the North Gate. Further, if the county refuses to change the code the OPA will be wasting its time and effort, Daly said. He also raised a concern about funding for the purchase of electronic signs. “I have a pretty good gut-level feel that the replacement reserve for our manual signs is nowhere near $80,000,” he said. Director Tom Janasek said likes the little, quaint signs along the parkway as well. He said the proposed new signs could be used to bring people into the community, particularly the Yacht Club. He said he needs more information about the total cost of the project, size of the signs, and where they would be located. “I would just need to see all of that before I could even think about saying yes or no,” he added. Director Steve Tuttle said it is a significant expenditure and he is concerned about both the cost and the burden on staff for securing a Worcester County code change to allow the signs. He said he isn’t sure it’s worthwhile. Further, Tuttle cited National Transportation Safety Board data showing that distractions like electronic signs can cause accidents. “I don’t want people in our community stopping to read the sign as its scrolling around and changing and

must be raised and propped up by a all that and causing accidents.” The Communications Advisory 2x4 board while the letters are put Committee, in consultation with in place. Horn summed up the board disOPA staff, recommended replacecussion saying there are opinions on ment of the marquee information both sides of the issue but directors signs located along Ocean Parkare not opposed to getting more inway, on Manklin Creek Road near formation to answer some of their the racket sports complex, and on questions and to see how difficult Cathell Road near the Sports Core in may be to get a code change from Pool, with two electronic signs. Worcester County to allow the signs. “The purpose is to promote easi“I agree that we don’t want to put er maintenance of the information an inordinate amount of staff time they provide. Although this action into this but it’s really the GM’s call falls within the responsibility of the as to how he wants to allocate his GM, the purpose of this discussion is resources to do the research that we to present the concept to the Board need to really get all these questions and to the membership, to solicit input on the topic, to assess the value answered,” Horn said. Rogers recommended creating a of doing further research on options task force to investigate the issue for replacement signs, and to deterand bring it back to the board. mine the value of including the cost Janasek suggested using the in the upcoming budget,” Horn said. Communications Committee to do Although the marquee signs are that work. Parks agreed and said presently in good repair, the mainthe issue should be referred back to tenance of the information on the that committee. signs presents challenges to OPA The work probably will involve staff, Horn said. meeting with county officials to Currently, four different associdetermine whether it’s possible to ation departments are responsible ΊΙΙΛΘΟΎ draft a text change the Md sign regPrince GeorgesinCnty for keeping the information current, ΍χϚϋͧ йрͿкй and that take a total of about one ulations. ΎϞϖ ϊχϚϋͧ й staff day per week. Price: 98.500 (00.00) Ί΍и When last-minute changes need to be made, Horn said the person Coupon: 3.25 (00/00/00) responsible for updating the inforWhenDate: should you07/15/2036 start receiving Social Security? (00/00/00) mation on the marquees must gain Maturity access to the necessary materials on Callable Date: (00/00/00 or your N/A) Think carefully about 07/15/2028 when to start receiving benefits. the weekend, which sometimes s difficult. 100 CallYouPrice: (000)your benefits by 39%. could be reducing Finally, she the process of chang/ AAA ing the information poses risk of inRating: Aaa (XXX/XXX) I am here to help make that decision easier for you. jury to the staff member due to the Other: Please contact(Obligor) me at 410-208-1704 for a weight of the glass covering that

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26 Ocean Pines PROGRESS

OPA FINANCIALS

October 2019

OPA favorable to budget by $460,000 through August Treasurer says projected reserve balance will be in ‘good shape’ at year’s end even with $4.3 million in projected capital spending this year

recorded a net operating surplus of $209,740 in August, better than budget by $151,301. For the first four months of the current fiscal year, the OPA is in surplus by $6.022 million, ahead of budget by $459,823. Most OPA departments are ahead of budget for the year so far, and those that aren’t are not off by a lot. Behind budget are August 2019 OPA financials. Source: Director of Finance Steve Phillips public relations (-$10,436), Compli- is Beach Club parking ($327,223), able weather throughout much of ance and Permits (-$5,729), Tennis followed by the Yacht Club food the summer, in contrast to much of (-$1,782), Platform Tennis (-$1,782), and beverage ($297,347), aquatics 2018. Golf recorded $26,056 in net and Aquatics (-$26,169). ($291,406), marinas ($262,347), golf revenues in August, ahead of budAquatics still could be a net win- operations ($252,037), Beach Club get by $33,887. The year-to-date ner for the OPA at year’s end. food and beverage ($165,644), pick- $252,037 surplus compares to a All amenity departments are in leball ($19,891), platform tennis $91,379 surplus through August of the black for the year through Au- ($9,520) and tennis ($5,208). last year, for a $260,658 year-overgust. Golf operations in particular year improvement in four months. The most profitable amenity de- seem to be having an excellent year The Yacht Club continues to outpartment one third into the fiscal year financially, no doubt aided by favorq

By TOM STAUSS Publisher eneral Manager John Viola recapped the August financial results for the Ocean Pines Association during the Oct. 2 regular meeting of the Board of Directors. He reported revenues over budget by more than $105,000 and expenses under budget by more than $45,000, for a total favorable net operating balance of $151,301. For the first four months of the 2019-20 fiscal year, the OPA produced a total net operating balance of about $460,000 ahead of budget. By comparison, the Association was favorable $69,000 at the same point last year. Viola said it was notable that revenues were over budget, but expenses were under budget. “Normally, in the past, when we’ve had revenues over budget our expenses have increased to support those revenues,” he said. “This time, both are favorable.” According to the August financial statement released by Finance Director Steve Phillips, the OPA

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OPA FINANCIALS Surplus From Page 26 perform. budget by a substantial amount. In August, on $123,626 in net revenue, the Yacht Club exceeded budget by $47,919. For the first four months of the year, the Yacht Club is ahead of budget by $142,641. The $297,753 surplus through August compares to $150,840 through August of last year. Year-over-year, the Ortt Companies have almost doubled last year’s net for the first four months of the year. With operations for the year substantially concluded, the Beach Club performed much better than budget. The beachfront amenity’s $165,644 in net revenues through August were ahead of budget by $45,733. With a $113,869 surplus through August of last year, the Beach Club’s year-over-year improvement is $51,775. Work on the fiscal 2020/2021 budget is under way. Phillips said the Budget and Finance Advisory Committee supplied budget guidance to the Board in September, and an internal “bottoms-up” process has already started. Department heads have targets to present first drafts of budget re-

October 2019 Ocean Pines PROGRESS

lion in replacement reserves, $2.7 million in bulkheads and $1.3 million in roads. With several million dollars earmarked toward major projects this fiscal year, the projected reserve balance by April 30, 2020 is $4.8 million, including just over $2.95 million in replacement reserves, $1.24 million in bulkheads and $615,000 in roads, according to Perrone.

quests by the end of October, with revisions occurring through December. Public budget meetings with the Budget and Finance Advisory Committee are scheduled Jan. 6-8, followed by a board review. “Major work has already taken place in finance, including significant interaction with the department heads, as well as the GM, all being actively engaged in the process already,” Phillips said.

He added the finance department considers each budget request and adjusts for depreciation, interest, utilities, reserve balances, benefit costs, and inflation costs or savings. Treasurer Larry Perrone delivered a financial oversight presentation during the meeting, most important of which, he said, was the reserve forecast for the end of the year. Reserves as of Aug. 31 totaled $10.3 million, including $6.3 mil-

He said replacement projects this fiscal year carry a projected total of $4.286 million. Those include NorthStar, the new golf clubhouse, cart bar, and Police Department headquarters expansion/renovation projects. Perrone added there are $2 million in bulkhead and waterways projects and $836,000 in road renovations scheduled this year. The replacement reserve total, by April 30, 2020, projects at about $2.9 million and total reserves project to be just over $4.8 million.

28 Ocean Pines PROGRESS

OPA FINANCIALS

October 2019

Viola to shift OPA funds to FDIC-insured accounts About $11 million to be invested in CDARs

By TOM STAUSS Publisher n response to concerns that about $11 million in Ocean Pines Association investment funds were not deposited in accounts insured by the Federal Deposit Insurance Corporation (FDIC), General Manager John Viola has decided to shift the money into CDARs that are FDIC-insured. In response to a question from former OPA Director Jack Collins at the Oct. 2 meeting of the Board of Directors, Viola and Finance Director Steve Phillips assured Collins that funds in an amount greater than $250,000 deposited with Union Bank have been insured by the bank. But they conceded the insurance was by a private entity not associated with the FDIC or other U.S. government agency. Collins suggested that the best way to make sure OPA investment funds are safe is to invest them in instruments that stay below the FDIC account limit of $250,000 at any given bank. CDARS, short for Certificate of Deposit Account Registry Service, are instruments that allow depositors to spread money around various banks. The purpose of CDARS is to help investors in certificate of deposits (CDs) to stay below the $250,000 FDIC insurance limits at any given bank. Viola told the Progress a few days after the Oct. 2 meeting that while the $11 million in funds invested with Union Bank were not endangered, he decided that to be absolutely certain of safety he would direct Union Bank to reinvest OPA funds into CDARs protected by the FDIC. He acknowledged that there would be a modest reduction in return resulting from the shift, but not enough to be of concern. Viola said that former Director Marty Clarke in addition to Collins had contacted the general manage to express concern that OPA funds were invested in a non-FDIC-insured account.

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When Anna Foultz passed in late September, she still had one annual Star Charities event ready to do, Holiday Gifts For Soldiers. Collection containers will be placed around the area from Oct. 1-31 to collect non-perishable items to be shipped overseas in time for the holidays. Containers will be marked with a list of the most requested items, which include baby powder and foot powder; black and white cotton socks; chewing gum; powdered Crystal light, ice tea and Gatorade; Slim Jims, nuts and other nonperishable snacks; games like checkers, backgammon, chess and dominoes; tooth paste and brushes; feminine products; and small paperbacks. Perishable items, glass, hotel samples (as they do not include a list of ingredients that might cause allergies) or pork products should not be placed in containers.

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October 2019 Ocean Pines PROGRESS

Three directors express support for creating New Capital reserve By ROTA L. KNOTT Contributing Writer

aving tweaked his motion after consulting with the Ocean Pines Association’s guru on the governing documents, Director Larry Perrone re-introduced for first reading a motion to create a New Capital Reserve Fund during an Oct. 2 Board of Directors meeting. The motion, which calls for amending Resolution F-03 Financial Reserve Accounts, received enthusiastic support from some of Perrone’s fellow directors, a lukewarm reception from others who want to see a plan for spending the dollars collected, and a flat-out no from one director. Perrone’s motion calls for creating a New Capital Reserve Fund, for assets with functionality that were never previously owned by OPA, in the existing Resolution F-03. It also proposed adding a section on New Capital Reserve Funding and Controls that specifies funding for this account will come from up to 10 percent of yearly replacement reserve, shall not exceed $1 million after the yearly contribution as of the new fiscal year, and the maximum of $500,000 may be spent in any one fiscal year. Perrone said current funding of the new capital requires the board to budget projects through the operational budget. “The effect is that new capital costs are directly added to the annual assessment,” he said, adding “Controlling the increase in the annual assessment has and can continue to cause this and future boards to attempt to control assessment increases by no making necessary new capital purchases.” He said a reserve account dedicated to new capital expenditures will allow for better financial planning and control without directly impacting the association’s yearly assessment. “It will also eliminate the tendencies to forego necessary new capital purchases and projects because of the direct impact on the annual assessment.” He originally submitted a motion last month to create eh New Capital Reserve independent of Resolution F-03. The Board asked him to revisit the issue and meet with Jim Trum-

mel, OPA bylaws and resolutions experts, to determine the most appropriate way to incorporate it into the governing documents. He said the proposal is properly handled by amending F-03, which established guidelines for the investment strategy of operating and reserve funds in conjunction with the OPA financial management policies and procedures. Director Tom Janasek wasn’t a fan of the proposal. “I don’t like putting together a fund for projects that aren’t on the books for just wish list projects. That’s why we do the budget every year.” Janasek said if the money is simply sitting in a fund for future use on unknown projects it will be too easy for any board to use it. “I don’t want a half a million dollars to a $1 million just sitting there that any four board members can take and do whatever they like with. Put it in the budget if you want it done.” Director Frank Daly said the OPA’s reserve study indicates that the existing reserves are under funded and Perrone’s proposal would divert dollars from there to this New Capital Reserve. He said $200 of current property assessments go into the OPA’s replacement reserves, and draining money

out of that fund for the new account will cause the association to be consistently below its funding target. Perrone responded that based on the reserve study the Budget and Finance Advisory Committee’s projected goals for the replacement reserve was 22 to 28 percent. Currently that fund is at 18 percent. He agreed initiating this process to fund a New Capital Reserve Fund at 10 percent for the upcoming budget year would delay reaching the 22 to 28 percent goal for the replacement reserves,

but said it would only push it back by one year. Instead of reaching 22 percent funding in three years, the replacement reserve would reach that goal in four years. Further, Perrone noted that his motion says the board can divert up to ten percent per year, but it could chose to move a lesser amount instead. The OPA’s average spend on new capital is about $150,000, but has been less the last few years because of budget woes, so the full ten percent many not be needed. “I don’t think that delaying getting to that 22 percent goal of our replacement reserve dollars, I don’t see that as an issue. We’re not talking about a tremendous amount of money.” To Page 36

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COVER STORY

October 2019

Referendum dispute From Page 29 sation for plaintiffs’ legal fees and punitive damages would be part of the litigation. On Aug. 20, Tucker issued an opinion on behalf of the board in which he noted that, in the petition drive conducted by former OPA Director Slobodan Trendic’s START advocacy group, that there were 808 “total validated signatures” of OPA members. That, Bright said in his letter,, satisfied the required 10 percent threshold for advancing a question to a referendum vote. Bright referenced Tucker’s critique of the petitioners’ wording in their petition drive. “You opined in your August 20 letter that by using of the word “should” in the petition question on the circulated petition form ... the petitioners did “not ask specifically whether they vote to approve the amendment, the petition sought no referendum to amend the by-laws and does not request action by the Board of Directors.” Tucker determined for those rea-

sons the petition as submitted did not “meet the requirement for an action appropriate for submission to the members on a referendum, as required by Section 4.08” of the bylaws. Bright noted that as a “caveat” to his opinion, Tucker stated in his letter that he did not know “how petitions have been handled in the past. For example, I do not know if every petition that met the signature requirement was allowed to move to referendum regardless of the content of the petition.” According to Bright, “presumably, based on that caveat, in formulating [his] opinion, [Tucker] did not seek or obtain any information about past practices of OPA, its standard or previously accepted petition forms, etc.” Bright argued that this was “an admission of inadequate due diligence on this matter by [Tucker], and by extension,” the OPA board. The attorney said that it is apparent that the board, based on Tucker’s opinion on the merits of the petition, “refused to recognize the subject referendum petition as valid and has refused to put the question

to a referendum vote.” This past Aug. 21, the day after Tucker issued his opinion, the OPA announced what Bright called “its ill-considered position” that it would not recognize the 808 validated signatures on the petition, would not recognize the petition as requesting any action, and would not move forward on the proposed referendum. Bright’s letter proceeds to outline his objections to the Tucker opinion. Bright noted that Section 4.08 of the OPA by-laws provide that a referendum may be initiated by a petition, and when this occurs, “the petition must contain a specific question, proposal, or action suitable for an affirmative or negative response on a ballot.” He said the petition in question “plainly met” all those requirements. He called Tucker’s use of the word “should” in his analysis “patently unfounded and seems clearly contrived to achieve the board’s desired (but improper) objective, which is to avoid a referendum vote on the question presented. In my view, it not only lacks proper basis, but also lacks good faith.” Bright said it “distorts and misin-

terprets the straightforward content of the petition form, which plainly and simply presented an appropriate proposal to be put to referendum vote.” He also said it ignores the actual and clear text of by-law sections 4.07 and 4.08, “which require only that a referendum petition present a question to be voted upon by the OPA members once it is put to referendum vote (at a public hearing within sixty (60) days after the petition is submitted).” According to Bright, OPA by-laws do not require, as part of a referendum petition drive, “compilation of actual affirmative votes on the proposed question; rather, the by-laws simply require the requisite number of signatures on a petition asking the board to present the specified proposal for a referendum vote (at a timely meeting called for that purpose). “The petition in this instance, supported by 808 Board-validated signatures, did just that. And again, use of the word “should” in the petition form does not have the effect or bearing that you and the OPA q

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COVER STORY Referendum dispute From Page 30 Board disingenuously and self-servingly contend that it has, at all,” Bright wrote. The attorney also argued that Tucker’s opinion “glaringly” ignored Board Resolution B-07 relating to petitions. “Such resolution provides for the board-approved format for petitions and sets forth a sample petition that uses the word ‘should’ in precisely the same manner as it is used in my clients’ petition form,” Bright said. In conclusion, the attorney maintained that the OPA board “is in direct and clear violation of the bylaws.” He wrote that the board failed and refused to “hold a public hearing” on the subject referendum. “The 60-day period for doing so expires on Oct. 9, and in light of the notice and ballot distribution time requirements under Section 4.08(b), it is not possible for the board to achieve compliance with the by-laws on this matter of great importance,” he said. Because “the board’s position on this matter completely lacks any good faith basis,” the board and its board members “have exposure to punitive damages and/or attorney’s fees incurred by my clients in this matter, including in any legal proceeding that my clients may be forced to file,” Bright wrote. He told Tucker and the board that his letter was only a preliminary description of his clients’ position on the issues in dispute and that additional points would be made if the dispute proceeds into a litigation phase. Marty Clarke, a former OPA di-

October 2019 Ocean Pines PROGRESS rector who is assisting Trendic and the START advocacy group, said Bright’s letter only touched the surface of what could have been included. “If we included everything, we’d still be writing the letter,” Clarke said. Trendic previously has gone on record as critical of OPA Secretary Colette Horn for failing to issue a statement acknowledging receipt of the petitions and whether they met the bylaws’ requirements for a referendum. The by-laws require such a statement, Trendic said, contending that Tucker’s opinion issued on behalf of the board was not sufficient to comply with explicit language in the bylaws. Clarke has said that the OPA’s “history of failing to comply with its own by-laws” might prompt a judge to slap on punitive damages in addition to plaintiff’s legal fees in the current dispute as a way of sending a message to the OPA to be more vigilant in complying with its own rules in the future. Bright’s letter in a footnote suggests that the OPA and individual directors might not be protected from incurring legal fees and punitive damages. The business judgment rule in litigation, which ordinarily would protect the OPA and directors from decisions made in the course of conducting its affairs, “does not insulate board members from the kind of decision-making that is at issue in this instance,” Bright wrote. As a way of avoiding that possibility, the board could argue that it has been relying on Tucker’s opinion and guidance throughout the petition process.

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32 Ocean Pines PROGRESS

October 2019

CAPTAIN’S COVE

October 2019 Ocean Pines PROGRESS

Annual meeting set for Nov. 9 in Chincoteague By TOM STAUSS Publisher s a result of a consent agenda item approved by the Board of Directors in September, the community is close to completing all major road installation in undeveloped areas of Captain’s Cove. The directors authorized facilities manager Rob Girard to award a $267,000 contract for the final phase of road construction in Section 13, with grading to take place this fall and over the winter. Then next spring, when asphalt plants reopen, the final component of the project, the construction of tar and chip roads will occur. Girard told the Progress in a telephone interview Oct. 10 that he expects the entire section will be open for traffic by May 1 of next year. Aqua Virginia, the Cove’s water

and wastewater treatment provider, has not yet installed water lines in Section 13, but Girard said he expected that would follow soon after road construction is complete. Once that happens the only remaining area in Captain’s Cove that will need roads is an area of Section 3. Girard said there still needs to be a determination made on the extent to which wetland issues impact where roads can be built in that section. He said there is no timetable for when engineering and road construction can take place in Section 3. “It is on the radar though,” he said. Nov. 9 annual meeting: The annual meeting of the Cove property owners association is scheduled for

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Saturday, Nov. 9, at 10 a.m. at the Chincoteague Center at 6155 Community Drive in Chincoteague. The meeting probably will be a relatively sedate affair, as there are no major controversies occurring in the Cove that might spark some debate. The results of the annual election of directors will be announced at the meeting, with five candidates on the ballot and two seats open. The term of office is three years. Pat Pelino and Joe Costello are running for reelection and are oddson favorites to be in the winner’s circle on Nov. 9. Cove elections since 2012 have been controlled by developer interests, with candidates supported by Captain’s Cove Group Note LLC and related entities polling more votes than those who aren’t.

Votes they cast reflecting the number of building lots they own are much greater than those cast by full-time residents, who controlled the Cove in the years prior to 2012. Amenities outperform: Cove Director and former association President Tim Hearn reports that Cove amenities had an excellent summer, benefiting from the one of the best seasons weather-wise in recent memory. Both the golf course and the pools were well ahead of budget, Hearn said. “Billy Casper is doing a great job for us,” he said. Access to Captain’s Cove three swimming pools, two outdoor and one indoor, are included with the Cove’s $1200 lot assessment, but Aquatics operations still exceed budget expectations, Hear said. “That would be a result of guest fees,” he said. Old Campground: The old campground off Captain’s Corridor that has been essentially unused since it was shut down for camping q

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CAPTAIN’S COVE

October 2019

Campground From Page 33 in the early 2000s may be developed for some sort of recreational use by the Cove association. General Manager Justin Wilder has been soliciting and receiving suggestions for the property, with some sort of pavilion, outdoor barbecues and playground equipment among the leading suggestions by

residents. Not everyone, however, is keen on the idea that the area should be developed. Some residents contend that there already is sufficient playground equipment in the Town Center and that residents generally have barbecues in their back patios or yards. Wilder told a small group of residents at a general manager’s meet-

ing last month that he would be forwarding recommendations from residents to the board of directors. The board will make the final determination on how, if at all, the old campground will be developed. New home construction: In a recent telephone interview, Hearn was upbeat on the pace of new construction in Captain’s Cove. He said there are currently about two dozen homes under construc-

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October 2019 Ocean Pines PROGRESS

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OPINION

October 2019

COMMENTARY

Time to settle and conduct a referendum

he letter by Ocean City attorney Bruce Bright on behalf of more than 800 Ocean Pines property owners to the Ocean Pines Association’s Board of Directors and the OPA attorney provides a useful off-ramp to a festering but unnecessary dispute over a petition drive aimed at limiting the amount of money the board can spend on capital projects without seeking approval of OPA members. The Oct. 6 letter, details of which appear elsewhere in this edition of the Progress, gave the board three days to announce a public hearing on the petition and to proffer a plan to conduct a referendum on a proposed reduction in unfettered board spending authority from the current $1.65 million to $1 million. Even with the apparent courtesy of giving the OPA’s attorney a few extra days to consider options and to advise the board on whether to comply, the board now is in the position of risking all-but-certain litigation that will result from lack of compliance. The Bright letter underscores in excruciating detail the weakness of the OPA’s refusal to honor the 810 “approved” signatures that the OPA attorney, Jeremy Tucker, said, absent other factors, would have been sufficient to force a referendum. The weakness is Tucker’s previous tortured efforts to deny the validity of the petition on the basis that it was improperly worded, employing the word “should” in a way that somehow meant it was not a definitive question that would engender a “yes or no” response in accord with OPA by-laws. His opinion completely ignored the fact that the OPA’s own samples for how to con-

New capital reserve From Page 30 OPA President Doug Parks expressed concern about the financial caps included in Perrone’s proposal, which he said would allow for stockpiling of funds at a different rate than the money is being spent. He wanted to know “Where’s the plan? Do we have a list of things that are upcoming in capital asks? I’ve not seen that,” he asked, adding “I for one have no interest in putting money into an account without a plan on what we’re gonna do to use it.” Parks said he’s not even sure that legally the OPA can move money collected for reserves to a capital fund, and was concerned about the controls for disbursement of the funds. Perrone responded that the planning for new capital is done each year during the budget process, and the board can approve or reject all requests for use of the New capital Reserve funds at that time. Further, he said staff will begin to keep a rolling list of small capital projects and purchases. As for a majority of board members pending all of the collected funds, he said that could happen already. “We can do the same thing with the

struct a petition for a referendum employs the word “should.” If ever the OPA would benefit from another fresh legal mind looking at dueling interpretations of the applicable OPA by-laws, this would be that time. Instead, as this edition of the Progress was approaching press time, directors were awaiting word from Tucker on whether he stands by his previous opinion and recommends settling the issue before the petitioners’ file suit against the OPA to force it to conduct the referendum. The petitioners, in a courteous recognition of Tucker’s request for more time because of a Jewish holiday, extended the deadline for a response from Oct. 9 to perhaps as late as Oct. 15. Whether sanity and a healthy respect for membership assessment contributions will prevail by the revised deadline remains very much in doubt. Recall recent discussions in which General Manager John Viola and members of the Budget and Finance Advisory Committee focused attention on higher-than-budgeted legal expenses, vowing to curb them going forward. A wonderful opportunity exists here for keeping the promise not to spend OPA dollars on unnecessary legal expenses. Tucker is in a classic conflict of interest position here in that he is being asked to render a judgment on his previous work product, which Bright, the petitioners’ attorney, contends was a contrived argument designed to justify a pre-determined outcome. If Tucker stands behind his previous work and recommends that the OPA defend itself in court, if and when it comes to that, then there is at least some prospect of fu-

ture billable hours before the matter is litigated. If he recommends a settlement along the lines of the petitioners’ demands, then the question can be legitimately asked why he advised the board to deny the petitioners’ initial request for a referendum in the first place. Of course, the OPA’s insurance company would no doubt supply its own attorneys should the petitioners file suit. That would offer an opportunity for a fresh perspective and the possibility of an out-of-court settlement that avoids a trial. But it shouldn’t come to that. One OPA director, Steve Tuttle, is on record as contending that Tucker’s opinion is weak -- another way of saying it’s not very persuasive and not likely to prevail. Tuttle also has said that, regardless of directors’ views on the merits of the petitioners’ desire for reduced board spending authority, 800-plus signatures are a significant percentage of the OPA membership that ought to be respected. Moreover, there is little or no prospect in the foreseeable short-, medium- or long-term for any capital project that would fall between the $1 million to $1.65 million at issue. The board literally gives up nothing of consequence by acquiescing to a referendum. And when that referendum is conducted and the votes counted, It’s even possible that property owners will decide that the current threshold is acceptable. What is less acceptable is spending more money to litigate an issue than the cost of a referendum. There’s no principle at stake here that’s worth that kind of investment. -- Tom Stauss

replacement reserve account. So quite honestly, I don’t buy that argument. The board can do that at any time.” He said doesn’t anticipate the fund growing to $1 million or the OPA spending $500,000 a year on new capital right now. But he proposed those caps because the OPA may grow into them in the future. Daly said the OPA’s planning for future projects and purchases seems to ebb and flow. At times the association has had a capital plan and other times it has not. He said he agreed that the OPA needs a new capital fund, but isn’t sure Perrone’s proposal is the best way to create it. He cited The Parke’s plan for securing funds for new capital at the time a property in that section changes hands; the revenue is collected at settlement. He said he would like to see a comparison of Perrone’s proposal and The Parke’s plan because it truly bypasses the annual assessments, he said. Perrone said the Budget and Finance Advisory Committee studied The Parke’s method of securing new capital through real estate transactions but rejected it because the committee didn’t want buyers to have to pay more at settlement.

Director Colette Horn said she was not in favor of using The Parke’s method of generating new capital revenue. “I do not want to add anything to anybody’s closing costs for this kind of a fund,” she said. “I think that the plan that Larry has laid out makes a lot of sense to me. I think it has minimal impact and I think the controls are there.” Director Camilla Rogers agreed with Perrone and Horn. “I think that this is a very sound way to go. I too would hate to see additional costs put on at closing because I think it’s a detriment.” Rogers pointed out that Ocean Pines is an aging community and will need to purchase new and replace existing capital items. “I really think that we need to be cognizant of that and be prepared for that.” Perrone acknowledged that during the last few years the OPA has not spent much money on new capital purchases or projects, but that is because of its financial position. “But that doesn’t mean that there aren’t things out there that should be done that can be done if we properly manage our accounts. Now that things are looking up, the OPA will have the resources to do some of those things it has been putting off,” he said.

October 2019 Ocean Pines PROGRESS 37

OPINION

COMMENTARY

Too little, too late on short-term rentals?

It’s time to resurrect the practice of sending an OPA representative to county commissioner meetings

he Board of Directors is urging property owners with an interest in county regulation of short-term rentals to attend a public hearing Oct. 15 in Snow Hill. That recommendation is perfectly OK, but as exhortations go it sounds kind of hollow and belated. It might carry a little more weight had the board voted to take a definitive position on the issue of short-term rentals. It would not exactly be a profile in courage to state, unequivocally, that the OPA wants controls on the number of people who can occupy a house during a daily rental -- there are roughly 180 of those listed on-line -- and the more numerous weekly rentals that occur during the prime months of the summer. This isn’t rocket science. No one wants a ban on short-term rentals, or at least no one should. But preserving the tranquil residential character of Ocean Pines neighborhoods is a no-brainer. So it’s odd that the board isn’t planning to send a representative to the hearing in support of a desired outcome. It’s not too late to remedy that omission. OPA Director Frank Daly told the Progress recently that he will push for the OPA taking a posi-

tion on the issue of short-term rentals once there is greater clarity on what the commissioners are prepared to vote on. Fair enough, but the time to exert maximum influence is before a “final version” of changes in the law is promulgated. The lesson learned from what appears to be belated engagement by the OPA on this issue could be that it’s time for the board to reestablish the practice of sending a representative to twice monthly county commissioner meetings and to produce reports on issues that have impact on Ocean Pines. Whether it’s a director who serves in that role as an official board liaison, or a member of the OPA staff, or committee member, is immaterial. The OPA and community benefited when the likes of former directors Jack Collins and Ray Unger attended the meetings in Snow Hill and kept their colleagues abreast of relevant matters. This whole issue of short-term rentals was not handled as well as it could have by the board. Four directors, a board majority and a quorum for an official board meeting, met with the two local county commissioners earlier this month to get up to speed on pending county legislation to further regulate short-term rentals. That was

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a tacit admission that the board collectively had not been following the issue in the many months it’s been under consideration. The meeting with the commissioners should have been announced to the OPA membership so members, too, could get up to speed on the problems that legislative tweaks are designed to fix. As it is, only one local media member attended. Joe Reynolds of oceanpinesforum.com was invited by County Commissioner Chip Bertino. Where were the invitations by the OPA to Ocean Pines residents and the local media? Again the invitation should have been community-wide, including all the local papers. In the future, OPA President Doug Parks and his colleagues need to think proactively about this sort of thing. It’s all about effective communication and community involvement. Because four directors were in attendance, it was an official meeting of the board subject to disclosure requirements of the Maryland Homeowner Association Act. That the meeting was “informational” in nature doesn’t obviate the need to comply with open meeting requirements. -- Tom Stauss

38 Ocean Pines PROGRESS

OPINION

October 2019

Permanent fix needed for pool card controversy

n the surface it seems so petty and insignificant, but it’s hardly that. Ask the average Ocean Pines swimming pool member or user, especially those with grandkids or other visiting family members, about their most Ocean Pines vexing irritant. It’s not going to be usual suspects like long lines at the North Gate bridge, increasing annual lot assessments, or dysfunction and bickering among OPA directors (which, it must be said, hasn’t been evident of late). The most pressing concern almost to a person is the seeming inability of OPA policy-makers to declare definitively that holders of unused monetary value on pool debit cards won’t lose any of that value when cards expire (if indeed they will) at the end of the current (2019-20) fiscal year on April 30 next year. There is equal concern over cards that may be issued in the years after that. One might think a definitive statement of intent on this issue would be easy enough to make, but so far it hasn’t happened to the satisfaction of those who have making their appeals at almost every board meeting for the last year or more. There is the occasional comment from certain directors, such as Tom Janasek and Camilla Rogers at the Oct. 2 board meeting, that they are opposed to the OPA “taking” any of the remaining monetary value on debit cards still in use. But that’s countered by less encouraging words from another director, Collette Horn, who thinks that property owners should be able to calibrate their card purchases to anticipated card usage. There has to be a way to do it, Janasek said. Indeed. But he’s leaving it up to staff to come up with the ways and means to accomplish that end. Whatever the solution is, it hasn’t quite made its way into the public domain, where it could ease the concerns and fears of those who can’t bring themselves to believe that their card investments will be made whole by the OPA when the time comes. General Manager John Viola has said more than once that no one will lose any money, and there’s no reason to suspect he isn’t a man of his

LIFE IN THE LIFE INPINES THE PINES

‘Get tough’ enforcement policy pulls its punches An excursion through the curious cul-de-sacs An excursion through theby-ways curious and by-ways and cul-de-sacs

of Worcester County’s County’s most densely community. of Worcester mostpopulated densely populated community.he outlines of tougher enBy TOM STAUSS/ By TOM Publisher STAUSS/Publisher forcement of OPA restrictive word. It’s just that the assurances thus far have been made in reference to cards currently in use. That’s fine as far as it goes, but it’s not enough. OPA officials need not only to guarantee no loss of value from cards currently use. They also need to offer the same guarantees to cards that may be issued in the 2020-21 fiscal year and in the years thereafter. This shouldn’t be difficult if there is a policy decision by the board to deal with this issue in both the short- and longer term. One simple solution in the new year is to issue new cards that never expire. Presumably the new NorthStar amenity management software about to go live at the Sports Core pool, and in outdoor pools next spring or summer, will be able to process cards that never expire. Of course, monetary value from existing cards will need to be transfered to the new cards. Alternatively, remaining dollar amounts on the cards could be refunded in cash, or, as has been suggested, refunded in the form of credits usable at any OPA amenity, not only pools. Viola no doubt will choose one of these options, or possibly more than one, in the weeks and months ahead. But what isn’t clear is what happens to cards issued in 2020-21. Without a perpetual guarantee that these debit cards won’t lose their value on April 30 of 2021, the same concerns and irritations will persist. This is the commitment that holders of these cards are looking for. A one year fix is a start, but it isn’t enough. Whatever Viola comes up with as a solution for handling cards with remaining value on April 30 next year also needs to be in place as a matter of policy on April 30 in all the years that follow. Anything short of that is a temporary palliative and risks continuing to irritate those upon whom the OPA depends for a significant source of Aquatics Department revenue.

By forcing people to estimate their anticipated pool usage and to calibrate their debit card purchases accordingly, the OPA risks a number possible adverse outcomes, all of which are avoidable. One possibility is that pool users simply will stop buying debit cards in a quiet protest, opting to pay cash whenever they or their guests decide to use the pools. This option isn’t that far-fetched. Years ago a former board decided to consider controversial trail fees for the Ocean Pines golf course, only to pull back when the inevitable opposition to change rolled in. Even though trail fees were never implemented, the resentment lingered and membership took a hit. Arguably the downward membership trend of the trail fees year has never been reversed. The point here is: There are consequences for not dealing with this issue constructively. Without a permanent solution such as a card that doesn’t expire, another possible consequence would be that OPA members will purchase cards with monetary value very limited in dollar amount. If card-holders believe that at some point their cards could expire with monetary value remaining, they will lack the incentive to purchase cards that could last them much longer than a year. That kind of thinking will adversely affect the revenue that the OPA will collect. As a result of a policy change last week, the Aquatics Department is credited with the full dollar amount of a debit card sale in the month in which the card is sold. So there is no accounting reason that new cards issued next year can’t be extended indefinitely or be replenished as needed by card members, as occurs now. But trying to impose a time limit on card holders will only accomplish a public relations fiasco for the OPA, the kind that can take years to overcome. Provide a permanent fix and the p.r. benefits will be self-evident on Aquatics’ bottom line.

covenants and the guidelines that accompany them are beginning to take shape. OPA Director Frank Daly, board liaison to the Architectural Review Committee, had a couple of proposals for beefed up enforcement that he offered at the board’s Oct. 2 monthly meeting. When the air cleared after extended debate, Daly’s proposal to change the restrictive covenants applicable in each section of Ocean Pines to allow the possibility of collecting legal fees after successful litigation fell in a 4-3 vote. It was Daly versus Larry Perrone debating the merits of the legal fees proposal, with Perrone ultimately prevailing after a civil and intelligent exchange of views. Daly later pronounced himself okay with that result, primarily because it appears the OPA is on a path to expediting enforcement of problem properties. Instead of taking months for the OPA to find a problem property in continuing violation of the restrictive covenants, it soon may take only a month for meaningful action to occur. Changes to applicable board resolutions are in the works.

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

PUBLISHER/EDITOR Tom Stauss stausstom@gmail.com 443-359-7527

Advertising Sales Frank Bottone 410-430-3660

CONTRIBUTING WRITER Rota Knott InkwellMedia@comcast.net 443-880-3953

October 2019 Ocean Pines PROGRESS 39

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October 2019

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